spending HOA funds

Started by NormaB1 • 7 replies • 823 views

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NormaB1 (Florida)
Posts: 8

Posted:

We are a Florida not for profit HOA. One of our board members has suggested we put a line item in our budget to pay for entertainment (parties). Our covenants state the usual regarding the use of funds collected as far as maintaining our common areas, clubhouse, pool and any other amenities we provide. It also states that this list is not exhaustive.

Can HOA monies collected be used for this purpose. We are not doing this for charity or advertisement but solely for the entertainment of the residents and guests.

What if most of our residents don't even attend such parties. Is it fair to use HOA money for these events?

If so, does it then become the responsibility of our Treasurer to handle all of the monies going in and out or can someone outside the board handle the monies and report to the Treasurer?

Also would this require a vote of the sitting board members to approve such a line item in the budget?

Thank you for your anticipated answer.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

You can if that is what the majority of members want and agree to. Yes, it's not "fair" for everyone to pay for this expense if they do not participate. That is one of the main reasons most will vote this down. Our HOA we wouldn't pay for parties or gift cards etc... We would for Halloween have the clubhouse open for a neighborhood gathering. I for one don't believe the HOA should fund any parties or awards. It doesn't mean it can't be done. Just most people have to agree to it.

Former HOA President

GeorgeS21 (Florida)
Posts: 3,808

Posted:

I’ve been on the BoD of two neighborhoods where we spent money on social events.

No issues - ever.

KerryL1 (California)
Posts: 14,550

Posted:

Melissa is wrong; this is not something Owners all vote on. It's a Board decision. Yes, directors would vote on it.

Since your CC&Rs say the list is "not exhaustive," if your board feels social events will help the community come together, which is GOOD for all kinds of reason, go for it.

This topic has been brought up here many, many times.

JenniferG12 (Texas)
Posts: 103

Posted:

Quote:

Posted By KerryL1 on 10/05/2018 8:15 PM
Melissa is wrong; this is not something Owners all vote on. It's a Board decision. Yes, directors would vote on it.

Since your CC&Rs say the list is "not exhaustive," if your board feels social events will help the community come together, which is GOOD for all kinds of reason, go for it.

This topic has been brought up here many, many times.

I agree. Members do not have to be consulted. As a side note, I like that there are Christmas or maybe they call them 'holiday' parties and money is spent on National Night out, food and drink and raffle prizes.

I don't go to either, but I think they are GOOD for the community. And 'renters' are also invited.

We had a social club attempt that didn't generate interest but that is ok with me too. Again even though I don't want to go, more power to the ones that might have. The few they did, it ended up being a bit of a waste of refreshment money, but no biggy in the big scheme of things.

It was a nice thought and effort, imo.

NormaB1 (Florida)
Posts: 8

Posted:

thank you for your imput

NormaB1 (Florida)
Posts: 8

Posted:

thanks for your imput

NormaB1 (Florida)
Posts: 8

Posted:

thank you for your imput

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