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Posted By JohnF25 on 02/08/2015 4:55 AM
Tim, et.al.
Our governing docs clearly state that "such special assessment may be levied only if it is approved by a majority of the Members." In that reserve funds were established by the developer for specific areas of funding 720.303(6)(d), F.S. (HB 7119), and that those reserves were misappropriated for other uses, and that the Board wishes to replenish those funds with the special assessment, we feel as though they are attempting to cover their tracks. We also feel that the Board is attempting an end run around our governing docs by switching from assessment to dues increase. The members are willing to pay up the assessment in five yearly installments, but feel that all at once is a bit harsh.
Well, yes based on what you are posting, the Board does appear to be on the edge. However, being on the edge is not the same as being illegal.
The Board knows that there is a need for Reserves (why the need is there isn't important at this moment).
The Board requested a special assessment from the members.
The members said no.
The Board then chose to fill the need with higher assessments.
This appears to be compliant with applicable laws and what you have provided from your governing documents.
Another issue is why does the need exist. You state it's because the funds were misappropriated. Call it what you will, if the funds were used for the Association, then the Board can borrow from the reserves (this is their option unless your governing documents specify otherwise) providing there is a method to pay the reserves back. One could argue that the plan to pay back was the special assessment. When that failed, the only other option was to raise assessments.
As others have said, what do you desire to do about this?
Will you gather support, find other volunteers to serve and recall the current Board based on that decision OR will you simply complain about the issue and do nothing to keep it from happening again?
As I said, based on what you provided in the two threads, it appears that the Board simply made a bad decision. Bad decisions are addressed internally, typically by recalling those who made the decision and putting new people in place who will have to clean up the mess and find a way to replenish the Reserves, either by special assessment or an increase in regular assessments (basically what this current Board is now doing).