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AlanE5 (Florida)
Posts: 2
Posted:
In accordance with our HOA documents the HOA provides for a bulk cable agreement. The cost is paid by the homeowners within the quarterly assessment. In February of 2019 the 10 year bulk cable contract with the provider expired and the BOD did not renew or renegotiate with the current vendor. Rather the BOD signed a contract with another vendor. The new vendor has not as of yet (12/16/19) been able to bring the service to the homeowners.

The BOD adjusted/reduced the quarterly for 2019 accordingly and told the homeowners would need to purchase their cable service on their own and pay the going retail rate until the new vendor was able to provide the service.

The 2020 budget has been adopted, and there is a line item for Bulk Cable reflecting that the homeowners quarterly assessment now includes the cost of bulk cable. In short , commencing 2020 the homeowners will be assessed and expected/required to pay for bulk cable and the service will NOT be provided by the HOA.

How can we convince the HOA BOD that this is not acceptable to the homeowners?
GenoS (Florida)
Posts: 4,276
Posted:
Vote them out and put people on the board who will address the situation to your liking.

FS 720.309(2) addresses the cost of providing communications services for the community, such as bulk cable and internet. Subparagraph (a) says:

"Any contract entered into by the board may be canceled by a majority of the voting interests present at the next regular or special meeting of the association, whichever occurs first. Any member may make a motion to cancel such contract, but if no motion is made or if such motion fails to obtain the required vote, the contract shall be deemed ratified for the term expressed therein."

You could do that if enough people (at least a majority of all voting interests) are dissatisfied with the current contract. That would force the board to find another service provider, hopefully one that would expedite installation.

Do your governing documents say the board MAY or MUST obtain bulk services?

I think you're probably stuck and you're just going to have to wait for a new bulk service provider to connect you, or do as the board suggests and arrange for your own service in the meantime and pay for it yourself.
SheliaH (Indiana)
Posts: 6,964
Posted:
You go to the meetings and say so. But first, did you ask the board for details on why the decision was made? Perhaps the previous vendor was getting too expensive for the association? And if you didn’t ask, why not? Is there a date as to when the new vendor will start providing services? With the holidays approaching, it’s possible they won’t be able to set things up until after the first of the year and considering the changes in technology, there could be more involved that just flipping a switch. By the way, YOU might not be happy about this, but there may be plenty of other homeowners who are.

That said, I personally think it’s a great idea for people to get their own service, although I can see it being necessary if you’re in an area where it’s not easy to get satellite TV or another alternative. If I’d been on the board, I might have presented the options, with the pros and cons to the homeowners and gotten their viewpoint before making a decision and then told people when one service would end and another begin. If people would prefer to opt out and pay their own cable, I would have offered that option too.

Anyway, if enough of you are angry and the board won’t change the decision, you can always vote them out during the next annual meeting and put in people who will reverse the decision. Or recall them (check your documents to see how that’s done) and vote for people who will do what you want. You’ll have to have homeowners willing and able to step and serve (including you), so if that’s what you’re willing to do, get to work.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Maybe I missed something ...

It sounds like the Board already reduced the assessment for 2019 because the service company was unable to establish service.

This sounds like it was done thoughtfully by the Board ... Based on this, I am assuming the Board would do likewise for 2020?
MarkW18
Posts: 1,290
Posted:
Quote:
Posted By GeorgeS21 on 12/16/2019 12:17 PM
Maybe I missed something ...

It sounds like the Board already reduced the assessment for 2019 because the service company was unable to establish service.

This sounds like it was done thoughtfully by the Board ... Based on this, I am assuming the Board would do likewise for 2020?

Probably should re-read their post.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By GeorgeS21 on 12/16/2019 12:17 PM
Maybe I missed something ...

It sounds like the Board already reduced the assessment for 2019 because the service company was unable to establish service.

This sounds like it was done thoughtfully by the Board ... Based on this, I am assuming the Board would do likewise for 2020?

I agree with that interpretation. I think Alan is upset that the new bulk cable service isn't installed yet after months and months of waiting. Some homeowners want the new service up and running ASAP. The point isn't the cost or the assessment reduction (which again I think you've read that right), the point is WE WANT OUR TV and don't want to have to sign up individually for cable because the HOA is supposed to handle that for us.
MarkW18
Posts: 1,290
Posted:
If you read the third paragraph, homeowners are paying for something the board says they need to pay on their own.
GenoS (Florida)
Posts: 4,276
Posted:
Yeah, it seems wonky. Maybe the board has an ETA from the company and they've taken the pro-rated cost for the months in 2020 that the service will be live, and spread it out over 12 months. That wouldn't be ideal. One alternative is to not charge for it at the start of the year, and then after the service goes live (in February, or March or... whenever) there's no money in the budget at all to pay for it. Only the board knows for sure when the vendor is planning to begin providing the service. Still, charging for it immediately when it's not actually available doesn't pass the smell test. Leaving the question, how should a board budget a big-ticket monthly cost that's only available for part of the year.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Hmmm ...

"The 2020 budget has been adopted, and there is a line item for Bulk Cable reflecting that the homeowners quarterly assessment now includes the cost of bulk cable. In short , commencing 2020 the homeowners will be assessed and expected/required to pay for bulk cable and the service will NOT be provided by the HOA. "

There, of course, needs to be a line item for the Bulk Cable cost in the 2020 budget.

It sounds like the OP is saying there is some expectation the cable service will not be delivered starting in 2020 ... so, the assessment should not cover this?

So, sounds like the Board did the right (and only) thing appropriate in 2019 - eliminating the cost of the not yet delivered bulk, and the cost that may have been computed from the previous bulk provider, for that period neither service was available.

So, since this is a quarterly assessment, and the end of the year/quarter, IF the Board is expecting the service to be delivered, then the full assessment should be bill - if, however, and like the 2019 situation, given it wasn't delivered, then the assessment should be lowered by an appropriate amount.

Can any of this last part be done in advance?

Begs the question when the bulk service is supposed to begin.

BTW - the last part of the excerpted quote, above, doesn't make sense - so, likely there is more to the story.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Sorry - a bit more.

It sounds like the Board has acted in good faith by reducing the assessment to account for the lack of service being delivered - by either the old or the new bulk service provider.

This is a good sign ... so, perhaps there is simply a misunderstanding at this point between what the OP is saying and what the Board is planning on doing. Given the time between meetings, and this being the end of the year, and obviously a crunch time wrt the service that is supposed to be delivered - perhaps this is simply a bit confused and will work out in the next 3-4 weeks.
AlanE5 (Florida)
Posts: 2
Posted:
George
Thanks for you comment.
NO, you did not miss anything.
The assessment was reduced for 2019 because the service was not being provided.
Yes, they increased the assessment for 2020 even though the vendor has not provided a target date for providing the service.
Yes, the BOD has been asking the vendor for a live date, but they never give one.
NO, I am not angry that the vendor has not provided service.
BUT I do not think the BOD is showing fiduciary responsibility because they are requiring the owners to pay for a service that is not being provided.
Do you have any suggestions as to what State entity I can contact to lodge an official complaint?
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Well, to be clear, the only thing the HOA has done thus far is put together the 2020 budget, which should include the bulk service - the question is whether or not they are billing for that full amount?

The Board should put together an assessment that includes the bulk service fee - they might even do this in advance with the expectation it will be provided - then, at some point if it is to provided, then it can be removed from the assessment. Was this discussed at the Board meetings - i.e. was there a strategy they agreed to?
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By AlanE5 on 12/18/2019 11:32 AM
George
Thanks for you comment.
NO, you did not miss anything.
The assessment was reduced for 2019 because the service was not being provided.
Yes, they increased the assessment for 2020 even though the vendor has not provided a target date for providing the service.
Yes, the BOD has been asking the vendor for a live date, but they never give one.
NO, I am not angry that the vendor has not provided service.
BUT I do not think the BOD is showing fiduciary responsibility because they are requiring the owners to pay for a service that is not being provided.
Do you have any suggestions as to what State entity I can contact to lodge an official complaint?

There is no State entity, department, office, or agency that will do anything for you.

FS 720.309(2)(a) gives homeowners the power to cancel the contract at the "next regular or special meeting" following the signing of the contract. If you haven't had a members meeting since the contract was signed (either annual or special), then that's what you need to do. You'll need a majority of all homeowners to vote in favor of the cancellation.

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