Social Committees

Started by RobertB64 • 5 replies • 953 views

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RobertB64 (Florida)
Posts: 2

Posted:

Does the law require Social Committees to be under the Board of Directors. I was told that they could set up their own account and operate as a separate entity if they do not have a budget for the committee. They could offer a monthly statement to the Board, but totally control their own finances.???

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By RobertB64 on 06/09/2020 9:44 AM
Does the law require Social Committees to be under the Board of Directors. I was told that they could set up their own account and operate as a separate entity if they do not have a budget for the committee. They could offer a monthly statement to the Board, but totally control their own finances.???

As far as I know, neither FS 718 or 720 speak specifically regarding social committees. If the committee receives association funds or represents itself as an official part of the association, they should be under board control. That said, there is nothing to stop a group of people from forming whatever standalone committee, club, or group that they want as long as they don't represent themselves as being an official part of the association.

Escaped former treasurer and director of a self managed association.

GenoS (Florida)
Posts: 4,276

Posted:

RobertB64, are you a Condominium, HOA, or mobile home park?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By DouglasK1 on 06/09/2020 10:48 AM

Upon my first read, I agree as long as it is independent from the BOD.

RobertB64 (Florida)
Posts: 2

Posted:

WE ARE A HOA. WE HAD A WELL WORKING SOCIAL COMMITTEE FOR FOUR YEARS WITH OUR OWN CHECKING ACCOUNT AND PETTY CASH. WE GAVE THE
BOARD A MONTHLY STATEMENT EVEN THO THEY DID NOT ASK FOR IT, BUT WANTED TO BE SURE NO RESIDENT WOULD QUESTION THE USE OF OUR FUNDS.
WE HAD NO BUDGET AND THAT WAS FINE WITH THE BOARD. THE BOARD HAD NO SAY-SO AS TO THE CHAIRMEN OR COMMITTEE MEMBERS OF THE COMMITTEE. THEN SOME PROPOSED LEGAL EAGLE MOVED IN AND SAID THAT IT WAS AGAINST THE RULES OF A HOA TO HAVE A SET ALONE SOCIAL COMMITTEE AND THEY PANICKED. THE HOA IS A NOT-FOR-PROFIT ORGANIZATION, AND THE SOCIAL COMMITTEE PAID ANY SALES TAXES ON GOODS THEY
PURCHASED AND PURCHASED STUFF FOR THE COMMUNITY AT THE END OF EACH YEAR TO KEEP ANY PROFIT FROM CREATING A PROBLEM. I WOULD JUST LIKE TO KNOW IF THIS TYPE OF COMMITTEE IS LEGAL.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Legal in what terms? It's basically a money issue and where it gets it's money. A committee is usually a sub-set of the HOA board. It's funded from the same resource. The owners. The HOA board would have to budget in the budget of it's committees. So the committee would be funded at the whim of the board.

Now if you were to form let's say a "Neighborhood watch" then this should be separate from the HOA. It can be made up of not only members/owners but renters/tenants. It would be funded by it's members. Since it operates within the HOA boundaries it may not be unreasonable for the HOA to limit some of the things that committee does on their property. It's a separate funded entity but operates in the confines of the HOA.

Former HOA President

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