REF; Assessment

IM on the board in Floirda and the manager is suggesting to do an assessment of $200.00....due to the pool that will need to be updated of the state codings....and the cabana's roof will need to be replace....also didnt get any quotes he stated that will see if its get approved stating we are in need of $17,000.

Told him why dont we get the three proposals and compare with them and then give an exact figure of what we may need to do all this repair work.

He stated that he will give all homeowners a year to pay it off this way we will have the money...I then mention that since we dont have any money in the reserves....kinda scares me and that they may have to dip into that money.....he stated that the money will go into another account and not touch at all only for the pool and the cabanna roof.

I really dont feel safe about this at all...told him that I would only approve on this ...only if this money would be used for the pool and the roof of the cabanna only.

My opinon we should have some money in the reserves......cannot beleive we have not funds in the reservesw....we do have a few homeowners that have not been paying.

Any suggestions???

It doesn't sound like you really know whats going on in your own HOA, and your a board member. You need to educate yourself about all of the HOA's financials before making any decision.

Basic things like........
How much money is coming in?
What is it being spent on?
How much is going toward reserves?
Why do we need reserves? Which items is it for? Reserve study?

Once you look at everything, the numbers will tell you what you need to do.

The point is, every board member needs to educate themselves about the finances and grasp what is going on. If you truly have no money and are spending every dime you have, the pool is the least of your worries. If anything breaks or goes wrong, you will have to issue a special assessment for any little thing that goes wrong.

Dont make a decision until you figure out what the heck is going on.

Of course. Its how they make money.

Ahhh, insults and personal attacks. I have no response.

Thanks PetnukM: I do agree with you......there shold be some proposals for the cabana roof and pool, before we send a letter to vote for the assessment, I had mention atthe meeting to why we dont have any proposal and he stated that this will have to be done within a year or so...and it would be best to send letter to homeowners to vote and if aspproves you can make qurtely payment to complete the $200.00 assessment.

IM still not plseased....I strongly feel we should have proposals so we have an exact figure....also we dont have any money in the reserves....IM a bit concern of that as well., Thanks

Steve,

the Board should vote if ‘quotes’ should be obtained first. These could be preliminary quotes, good enough for now.
Looky, nothing prevents you to call a couple of certified roofing contractors and pool companies in the area and ask for quotes. I would do that and compare it to the $17K. There is no law you have to depend on the MC to get such quotes. Obviously, they do not want to do that and that troubles me a lot.

Not having ANY money in reserves is not a good thing. Has the Management Company depleted your reserve accounts or is this going on for a while? It is none of my business but how large is your community? I ask, because you seem to struggle financially and perhaps reviewing the contract with the MC to determine if you can save money by cutting down on their services could be one option to build up the reserves?

SteveC4,

You are required to get competative bids per the Statutes on expenditures over 10% of the annual budget. The Board needs to know this.

"720.3055 Contracts for products and services; in writing; bids; exceptions.

(1) All contracts as further described in this section or any contract that is not to be fully performed within 1 year after the making thereof for the purchase, lease, or renting of materials or equipment to be used by the association in accomplishing its purposes under this chapter or the governing documents, and all contracts for the provision of services, shall be in writing. If a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services, requires payment by the association that exceeds 10 percent of the total annual budget of the association, including reserves, the association must obtain competitive bids for the materials, equipment, or services. Nothing contained in this section shall be construed to require the association to accept the lowest bid.

(2)(a)1. Notwithstanding the foregoing, contracts with employees of the association, and contracts for attorney, accountant, architect, community association manager, engineering, and landscape architect services are not subject to the provisions of this section.

2. A contract executed before October 1, 2004, and any renewal thereof, is not subject to the competitive bid requirements of this section. If a contract was awarded under the competitive bid procedures of this section, any renewal of that contract is not subject to such competitive bid requirements if the contract contains a provision that allows the board to cancel the contract on 30 days' notice. Materials, equipment, or services provided to an association under a local government franchise agreement by a franchise holder are not subject to the competitive bid requirements of this section. A contract with a manager, if made by a competitive bid, may be made for up to 3 years. An association whose declaration or bylaws provide for competitive bidding for services may operate under the provisions of that declaration or bylaws in lieu of this section if those provisions are not less stringent than the requirements of this section.

(b) Nothing contained in this section is intended to limit the ability of an association to obtain needed products and services in an emergency.

(c) This section does not apply if the business entity with which the association desires to enter into a contract is the only source of supply within the county serving the association.

Yes our by-laws does require a vote on this...IM hoping it dont get approved due to the fact we didnt have any proposal on the pool and the cabana.....would have rather had exact figures then send letter to homeowners to vote on the assessment .