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Fl Chapter 720 especial assessment question

Started by IslamM • 9 replies • 758 views

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IslamM (Florida)
Posts: 67
Posted:

I hope we have a Fl Chapter 720 expert?

We have 30 units and the owners believe that if 9 owners oppose is enough for the Board to reconsider? Any one out there knows? Our documents are silent on the matter.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By IslamM on 05/08/2020 9:53 AM
We have 30 units and the owners believe that if 9 owners oppose is enough for the Board to reconsider? Any one out there knows? Our documents are silent on the matter.
-- Is your HOA developer controlled at this time? If so, then 720.315 requires a majority approval of the special assessment at a special meeting of the owners called with a quorum present.

-- Unless developer controlled, FS 720 does not even require a vote of the owners for a special assessment.

-- If the HOA is not developer controlled, I do not see anything in 720 that says that owners may reject a special assessment.

-- Ask these owners saying otherwise to cite their justification.

-- Your HOA's governing documents may require a membership vote.

-- Proper notice of the board vote on the Special Assessment must be given, per 720.303 (2) (c) 2.

-- In an emergency, regardless of what your HOA's governing documents say, FS 720 allows the board to impose a special assessment. See FS 720.316 (1) (j).

FS 720 appears at
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html
JohnC46 (South Carolina)
Posts: 14,265
Posted:
9 of 30 is 30%. The question is what % of all owners do your Covenants call for to approve a Special Assessment.
SheliaH (Indiana)
Posts: 6,964
Posted:
That seems odd that 9 out of 30 homeowners would be enough to oppose a special assessment. Are you sure there's nothing in your Bylaws or CCRs about this? You may want to check again - perhaps it's buried somewhere under the section on assessments or you're looking in the wrong spot. Generally, Bylaws dictate how the association is run whereas the CCRs state how the common areas are to be used

Most documents require a significant number of homeowners to approve a special assessment, say, 75%. In your community's case, that would be 22 homeowners, and if that number voted in favor, you may be out of luck.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By SheliaH on 05/08/2020 10:15 AM
Most documents require a significant number of homeowners to approve a special assessment, say, 75%.
I would be surprised if nationwide a majority of HOAs/condos had governing docs requiring membership approval of every special assessment. I think the general rule is that HOA/condo Boards may pass an assessment without a membership vote, though sometimes with a cap on how much the assessment may be.
MarkW18
Posts: 1,290
Posted:
Sadly, nether 718 or 720 allow vote of a special assessment to go before owners.

Heaven help you!
JohnC46 (South Carolina)
Posts: 14,265
Posted:
In our SC HOA any Special Assessment must be approved by 75% of all owners. There is procedure that allows the BOD to increase the annual dues/assessment as much as they want one time a year (effective 01/01). There is also a procedure for 51% of all owners to cancel the increase.
SheliaH (Indiana)
Posts: 6,964
Posted:
Well, mine does. It also requires homeowner approval if next year's assessment exceeds 5%, which is the maximum the board can increase them without homeowner approval.

I think it is appropriate to ask for homeowner approval of a special assessment. If the board is doing its job (and homeowners are paying attention like they're supposed to), the regular assessment should be keeping up with inflation and fund reserves according to the reserve study recommendations. It's not that a special assessment won't be avoided entirely, but they should be rare and homeowners should be encouraged to weigh in on the issue and understand the consequences of paying it or not. That way, they can make an informed decision.

It's just like your home budget - sometimes you do run across something extraordinary that may require a loan because your savings and whatever's in your checkbook isn't enough.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
GenoS (Florida)
Posts: 4,276
Posted:
IslamM, first you should look at your governing documents, especially the CC&Rs ("Declaration") and see what, if anything, they say about Special Assessments. With that in mind, Florida is under a declared state of emergency and "Section 720.316 Association Emergency Powers" of the Florida Statutes is currently in effect. In particular,

FS 720.316(1) says,
"To the extent allowed by law, unless specifically prohibited by the declaration or other recorded governing documents, and consistent with s. 617.0830, the board of directors ... may exercise the following powers:"

Then FS 720.316(1)(j) says,

"Notwithstanding a provision to the contrary, and regardless of whether such authority does not specifically appear in the declaration or other recorded governing documents, levy special assessments without a vote of the owners."

So depending on the exact wording of your governing documents, it's possible that your board may levy a special assessment without any approval at all from the homeowners. I'm not an attorney, but my interpretation is that the language that says, "... unless specifically prohibited by the declaration or other recorded governing documents," is countermanded by the language that says, "Notwithstanding a provision to the contrary..." means that it doesn't matter whether your CC&Rs require a vote of owners to approve a Special Assessment or not. The Board may levy a Special Assessment regardless.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By SheliaH on 05/08/2020 10:15 AM
That seems odd that 9 out of 30 homeowners would be enough to oppose a special assessment

What Islam's post said is 30% enough to ask the board to "reconsider", what ever that means.
Escaped former treasurer and director of a self managed association.

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