REF: Association Assessment

OK: Went to a board meeting a few weeks ago.....IM located in Florida and the manager is asking to send leeter to homeowners for an assessment of an estimate cost of $17,000 for resuring/relining the pool.....I ask why isnt there any proposals??? I suggested that I would like 3 proposal, he stated that we can have the home owners pay in quartly of $50.00 starting Jan 2012...by the end of 2012 should have all payments.

Mind you when I ask about getting 3 proposals the other board members just look at me...they all are over 70 and they listen to what ever the manager suggest they all agree.

Manager stated that the State of Health Code is going to request the pool to be relined/resurfaced.....I was curious as too why he never brought a inspection report??? but no one was interested in getting any proposals.

Manager sent letter to all homeowners....stating that there is an estimate of $17,000 for the pool to be relined/resurface....I was very disappointed that he didnt listen too me about getting 3 proposals...before sending this letter....so what I did was called the health department coing and spoke with an inspector and got the inspection report and on the report doesnt state that the pool needs to be resurface/relined.

So I called a pool company and will get a proposal on what needs to be done for the pool. we have another meeting next month will bring the proposal to the meeting and the inspection.

Are you an HOA or Condo?

Florida HOA statutes (Chapter 720) DO NOT require any number of quotes/bids nor is the assoc. compelled to choose the lowest quote/bid.

However, there are Fl. Ch. 720 requirements before an assessment can be levied in addition to what MAY be contained in your HOA docs.

If you are a CONDO, Co-Op, or other corp., then the laws are likely different and I cannot comment on those.

PetnunkaM: the end of this week will get a proposal from a pool service company and will get an idea of what they think needs to be done!!!

Have you asked to see the latest reserve study? Funds should have been set aside each year to accumulate enough to cover this repair/replacement without the need for a special assessment.

DavidW5: yes at the meeting he showed the proposed budget for 2012.....and what we collect in total is what goes out to the bills each year.....he blames that due to some that are in the rearage we are short in reserves....same old same.

PeteDe ;IM on the board as well!!! special assessments are voted by the homeowners...not just the board,....and besides dont think the board should make all the votes...after all the money is all the homeowners as well not just for board members of hoa.

HOA

No the manager mention it at the HOA meeting about the $200.00 assessment for an estimate cost of $17,000 for pool resurfing/relining.....and I was against it due to there was no proposals....and the fact he stated an estimate cost of $17,000. So he sent letter out to all the homeowners aksing all to consider this assessment ,

Hi Steve,

If you would like to validate your need for multiple bids to your president and board, please check out the Florida statutes (chapter 720) which states..............

720.3055
Contracts for products and services; in writing; bids; exceptions.
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(1)
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.
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Based on a previous post of yours, (98.38 x 28 units x 12 months) your annual budget should be around $33,000 and I'm assuming your reserve funding is included in your monthly assessment. If so, the $17,000 needed far exceeds 10% of your annual budget..... thus, multiple bidding is necessary.

HTH,

Ann

PS... The requirement to obtain competitive bids is waived in emergency situations and in situations where the association’s selected contractor is the only source of supply within the county serving the association.

There is an old saying regarding savings -"pay yourself first". In the case of an association, this could be stated as "pay reserves first". Your board is not fulfilling their fiduciary duty to the members of the HOA. The budget process should start with allocating an appropriate (based on a reserve study) amount to replacement reserves. Then and only then should additional funds be allocated to ongoing operations. If there are not enough funds left, after funding reserves, to cover essential services, then the monthly dues need to go up. Any other method of budgeting just kids the problem down the road and you end up with a large special assessment.