Questions on our HOA President duties

Out HOA is under the 723 ruling. The Secretary of the Board just resigned and the President has taken over the role of writing up the monthly minutes and posting. A new director just came back on board after leaving last year but the board only has 4 people on the Board and no Secretary. The President has told membership she shall do the minutes and sign a name of new director(he won't be Secretary). Also can a monthly meeting be held with only 3 board members?
Also the HOA is now going to run Bingo and they have said that they can take out monies from the Treasury to buy equipment to start this game up and then replace said monies back in Treasury. I thought that all monies made on a Bingo night had to go back out to winnings.

Oops failed to answer your question about quorums.

A quorum is typically a majority of the board. Therefore, if 3 out of 5 board members attend a meeting - a quorum is satisfied and business can be voted on.

If less than a quorum is in attendance, the meeting can still happen but anything that needs to be voted on may not take place (if it does, it can risk being considered invalid if challenged in court).

RosemaryR,

It never ceases to amaze me how some grown adults can approach running an HOA as if it's a child's game of let's pretend.

As for Bingo, if no money is involved, you can probably play all you want. However, if people have to pay to play, chances are that it's regulated in your state. It is a form of gambling, after all.

It's possible you may not need a permit if play is restricted solely to your members, but it would still be wise to check. If any guests of your members are present (even if they do not play) you may need a permit to hold the games. Some states will grant such permits only to charitable organizations, which you are not. Furthermore, you would need a determination letter from the IRS to establish your charitable organization status. Chance are, if you need a permit, you will be required to follow certain rules established by your state, such as a certain percentage payout to the winners.

Also, as others have said, any income earned from Bingo is non-exempt function income and you will be required to pay income tax on the proceeds. If the income is high enough, you can even lose your favored HOA status and be required to pay income tax on ALL your income, including your assessments (which is normally exempt from income tax for HOAs).

So, tread carefully. There's a lot that needs to be checked into before you proceed.

Hi Rosemary....

Per the 2012 Florida statutes (chapter 723):
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0723/0723.html

(8) Any mobile home owners’ association or group of residents of a mobile home park as defined in this chapter may conduct bingo games as provided in s. 849.0931.
.....................................................

Per chapter 849 (Gambling) the 2012 statutes:
http://www.flsenate.gov/Laws/Statutes/2012/Chapter849/All

849.0931 Bingo authorized; conditions for conduct; permitted uses of proceeds; limitations.—
(4) The right of a condominium association, a cooperative association, a homeowners’ association as defined in s. 720.301, a mobile home owners’ association, a group of residents of a mobile home park as defined in chapter 723, or a group of residents of a mobile home park or recreational vehicle park as defined in chapter 513 to conduct bingo is conditioned upon the return of the net proceeds from such games to players in the form of prizes after having deducted the actual business expenses for such games for articles designed for and essential to the operation, conduct, and playing of bingo. Any net proceeds remaining after paying prizes may be donated by the association to a charitable, nonprofit, or veterans’ organization which is exempt from federal income tax under the provisions of s. 501(c) of the Internal Revenue Code to be used in such recipient organization’s charitable, civic, community, benevolent, religious, or scholastic works or similar activities or, in the alternative, such remaining proceeds shall be used as specified in subsection (3).

HTH,
Ann

Actually, John, there are Federal gambling laws too!!!.... AND here is a link to your state's gambling laws...
http://www.gambling-law-us.com/State-Laws/South-Carolina/

Google is your friend.... there are hundreds of links to your state laws regarding gambling.

I've noticed on many occasions that you continue to joke (no so artfully though) about Florida and California and I've always wondered "why such venom"??? Actually, that's a rhetorical question and you need not answer.

Ann

I've been puzzled about JohnC46's curmudgeonly attitude towards Cali & Fla. too, Ann. He doesn't seem to own real estate in either. Don't think he's been to CA since maybe 1973 given his reference once to "fern bars" here. So, why should he be soooo, uh, concerned? I have a hunch it's more about the states in general than the HOA legislation in them.

I've owned in a condo & have served on the Board for almost 6 years. Except for recent rental restriction legislation, that was fashioned by the Calif. Assoc. of Realtors (CAR), I very much like the homeowner protections offered by our civil codes.

We live in a Mobile Home Park and rent our land. The HOA is a non-profit Assoc,Inc. and follow the 723 & 849 Florida Satutes.
Ok,I thank all for the replies. But perhaps I didn't make myself all that clear. 1)In February this year we had the HOA annual meeting. there were 4 openings & 4 candidates running. Well the 4 were a fly in. So now the new board of 7 elected their officers. I had been on board and re-ran and was elected Secretary. In April the President,Vice President & director resigned. Two of the resigned had just came aboard in February. Now board was @ 4 members. In May we had three new to the board. One of the new board members that came in May was elected to President and one to Vice President. Now we had 6 board members. In May a director resigned and in June another board resigned. These two had just came aboard in April/May. Now we have President,Vice President,Treasurer & Secretary. I resigned as Secretary/board member in July due to Robert Rules not being followed at meetings or the board knowing anything from President as to what was going on prior to monthly meetings. Also President would re-do the monthly minutes(of which we record at meetings)and then wanting me to sign off on them(of which I wouldn't do)also President would do monthly agenda and send off/post and the rest of board never knew what the monthly meetings would be about until the meeting.The board never voted on anything that was brought up at monthly meetings and President saying the board voted on etc etc(of which we hadn't). Presently the board consist of President,Vice President,Treasurer,Director(who just came aboard after I resigned).At present the President is doing minutes and when the Treasurer was asked who was Secretary(answer was I don't know). The President has stated that she will do minutes and just put new Director's name on and have him sign off on them. Now my question is: can this be done? I thought that a board had to have a Secretary. The by-laws state 5-7 board members...right now there are 4 board members and this month there will only be 3 at the monthly meeting. Question is: Is this a quorum?
As to the Bingo question. The HOA plan on starting up Bingo next month. At a committee meeting(of which I am on)it was stated that the up front monies would came out of the HOA funds & then monies from the Bingo games would be returned back to HOA funds. I thought that all monies brought in from Bingo games had to be given back to winners weekly. Also can the money from the Bingo games buy the equipment/bingo sheets etc etc? I guess I am just confused after reading the 849.0931 Florida Statutes and need help on this matter.

Rosemary,

According to Florida Statute 849.0931 that Ann posted, the expenses for operating the bingo games can be deducted from the income received. At least, that's the way I interpret it. That means the cost of bingo sheets, etc. can be taken from the income. However, also according to that statute, all the remaining money must either be paid out to the players in the form of prizes, or donated to charity. The HOA is not allowed to profit from holding the bingo games.

As far as up front money goes, I don't see anything that prohibits the committee from borrowing the money from the HOA funds and then replacing the borrowed funds from the proceeds.

Again, the HOA can deduct operating expenses (and start-up costs) from the proceeds. The remaining money must be paid back to the players as prizes. The HOA is just not allowed to make a profit from the operation of the games.