Who Decides ?

Started by DanN3 • 6 replies • 1008 views

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DanN3 (Florida)
Posts: 91

Posted:

For Florida 718 and 720 entities. If security, a brand new service, is being considered that would add considerable cost to the common charge, who decides if this expense is a good idea ? Note: Security, as an expense, has never existed before. This 718 condominium is also governed by a 720 Association. If the decision can be made at the board level is that true for both the 718 and 720 entities? Some say that the membership should decide with the argument that that service has never been provided before and it should be up to the membership to see if they want the security feature and expense. Some say the board has a right to add any services it desires as long as the board majority votes to agree to obtain such service.

Perhaps, too, the greater question is when is it up to a board or when is up to the membership to decide to add new continual services that increase the monetary obligations of owners ?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Dan,

I believe you explained both sides of the argument well.
In my opinion, both sides have valid points.

To my understanding, the Board has ultimate control over common areas.
Therefore, if security on the common area is an issue, the Board would likely have the authority to enter into a contract for such.

Now, how the funds would be acquired to pay for such a service may require membership authority. Depends on how much of an increase would be required an if membership approval is required above a certain amount.

FredS7 (Arizona)
Posts: 927

Posted:

The board should decide after seeking owner input.

PitA
Posts: 1,416

Posted:

What is the functions of Directors if not to direct ?

The ability to assess, however, is 'spelled out' in YOUR Covenants and Restrictions.

After you read and understand them you will actually become knowledgeable about YOUR association.

SheliaH (Indiana)
Posts: 6,964

Posted:

I'm with Fred and Pita, although Tim brought up some excellent points about the pros and cons of adding any type of service.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

DouglasK1 (Florida)
Posts: 2,046

Posted:

I agree generally with Tim, in that the board has broad authority to manage the affairs of the association. They have to act within the bounds of law and the governing documents. I'm not aware that Florida statute would limit the board's ability to contract for a new service, but I don't have time to read through it right now looking for any limits in that regard. The next possible limit would be in your documents. Read them to see what it says the board's authority is and what limits might exist. As Tim mentioned, there might also be limits to how much annual assessments can rise without membership approval. Finally, there should be some general verbiage about the purpose of the assessments, or the association in general, such as:

2. PURPOSE OF ASSESSMENTS. The annual and special assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of the residents, and in particular for the improvement and maintenance of common area and any easement in favor of the Association, including, but not limited to, the cost of taxes, insurance, labor, equipment, materials, management, maintenance and supervision thereof, as well as for such other purposes as are permissible activities of, and undertaken by, the Association.

In this case it would appear the board is not overstepping the bounds of using assessments if they hired security, but see what yours say.

Fred's comment about what the association should do seems more like what he thinks they should do vs. any legal obligation.

Escaped former treasurer and director of a self managed association.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By DanN3 on 08/14/2017 6:54 AM
If security, a brand new service, is being considered that would add considerable cost to the common charge, who decides if this expense is a good idea ?

The Board of Directors, most likely. It's fairly common that owners think they get to vote on everything that might cost money. That's only true where specifically called for in the governing documents.

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