Assessment Increase Notice

Started by SabrinaF1 • 33 replies • 1227 views

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SabrinaF1 (Florida)
Posts: 14

Posted:

Can anyone who lives in the State of FL Tell me whats the law on increasing assessment fees.

DO we have to give 48 hours
DO we have to give 14 days

If someone here is an Atty in Fl this will be great.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

FS720 provides guidance.

TimB4 (Tennessee)
Posts: 21,061

Posted:

You will need to look at your governing documents to see what they say regarding notice requirements.

If you live in a condominium development, then this statute would be applicable:

CHAPTER 718 - CONDOMINIUMS

If you live in a single family home development, then this statute would be applicable:

CHAPTER 720 - HOMEOWNERS’ ASSOCIATIONS

From what I'm quickly reading, regardless of what type of association you are in, a 48 hour notice of a board meeting is required.
A 14 day notice of the board meeting that will determine a special assessment is required.

So, 48 hours for the board meeting about annual assessments and 14 days for a board meeting about special assessments.

Note: this is only the notice about the board meeting to consider assessments.
Actual notice to the members of the annual assessment increase (decision made at the meeting) was not mentioned in the statutes (that I could find). Hence, the need to review your governing documents.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Didn't you ask this same question just a couple of weeks ago?

Subject: Increase in Assessment Fees dated 12/5/2020

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Sabrina

For clarification purposes are you looking to increase Yearly Assessments (Yearly Dues) or a one time Special Assessment. They are not the same thing. Do you understand that?

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Tim,

Just looked - yeah, sounds same.

SabrinaF1 (Florida)
Posts: 14

Posted:

Yes. I’m asking because I need to know the answer.
That’s why I said from an attorney.

Some homeowners challenged the board and said we cannot increase the HOA fees in 48 hours.

So put out a notice that at the next board meeting we will be meeting and voting to increase the fees.

We are receiving much push back.

So before we made the call to do it.I wanted the correct answer as so many people reading it differently.

We are trying to raise HOA Assessment fees. From 1000 to 1200.

Members are pushing back saying we can’t do that in 2 days.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

At least 48 hours notice for Board meetings.

The notice must include a statement that assessments will be considered (in most cases this is for annual assessments and is done by it being an agenda item).

The 14 day notice is required for "special" assessments.

(c) The bylaws shall provide the following for giving notice to parcel owners and members of all board meetings and, if they do not do so, shall be deemed to include the following:
1. Notices of all board meetings must be posted in a conspicuous place in the community at least 48 hours in advance of a meeting, except in an emergency. In the alternative, if notice is not posted in a conspicuous place in the community, notice of each board meeting must be mailed or delivered to each member at least 7 days before the meeting, except in an emergency. Notwithstanding this general notice requirement, for communities with more than 100 members, the association bylaws may provide for a reasonable alternative to posting or mailing of notice for each board meeting, including publication of notice, provision of a schedule of board meetings, or the conspicuous posting and repeated broadcasting of the notice on a closed-circuit cable television system serving the homeowners’ association. However, if broadcast notice is used in lieu of a notice posted physically in the community, the notice must be broadcast at least four times every broadcast hour of each day that a posted notice is otherwise required. When broadcast notice is provided, the notice and agenda must be broadcast in a manner and for a sufficient continuous length of time so as to allow an average reader to observe the notice and read and comprehend the entire content of the notice and the agenda. The association may provide notice by electronic transmission in a manner authorized by law for meetings of the board of directors, committee meetings requiring notice under this section, and annual and special meetings of the members to any member who has provided a facsimile number or e-mail address to the association to be used for such purposes; however, a member must consent in writing to receiving notice by electronic transmission.

2. An assessment may not be levied at a board meeting unless the notice of the meeting includes a statement that assessments will be considered and the nature of the assessments. Written notice of any meeting at which special assessments will be considered or at which amendments to rules regarding parcel use will be considered must be mailed, delivered, or electronically transmitted to the members and parcel owners and posted conspicuously on the property or broadcast on closed-circuit cable television not less than 14 days before the meeting.

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By SabrinaF1 on 12/16/2020 11:16 AM

That’s why I said from an attorney.

There's one fella who used to post here and insisted he was an attorney, but much evidence suggested otherwise. Else I know of no one here in the last several years who has said she/he is an attorney. From what I am reading here, and based on observing a number of real-life HOA attorneys, several here are better or as qualified than many attorneys, including HOA-specialized attorneys.

Anyone posting in response to your query, claiming she or he is an attorney, will not be able to prove it to you except maybe by revealing his or her identity in a private communication subsequently.

Quote:

Some homeowners challenged the board and said we cannot increase the HOA fees in 48 hours.

So put out a notice that at the next board meeting we will be meeting and voting to increase the fees.

We are receiving much push back.

For a more experienced director, I think the push back should come as no surprise.

Quote:

So before we made the call to do it.I wanted the correct answer as so many people reading it differently.

We are trying to raise HOA Assessment fees. From 1000 to 1200.

Members are pushing back saying we can’t do that in 2 days.

As asked in the other thread, but with you failing to respond in any way shape or other form, is the intent to announce at a board meeting, with the required two days notice, that there will be an assessment increase, to take place on ____? Or is the intent to send out billing statements the next month after this board meeting, reflecting the new assessment?

Either is legal in my opinion. But also in my opinion, ramming a sudden, though lawful, assessment increase down the throats of the membership is the path to a director losing re-election at the next annual membership meeting.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Sorry - COA or HOA? (this has been asked, but not answered)

COA FS718 excerpted

Special assessment -
"Written notice of a meeting at which a nonemergency special assessment or an amendment to rules regarding unit use will be considered must be mailed, delivered, or electronically transmitted to the unit owners and posted conspicuously on the condominium property at least 14 days before the meeting."

Normal assessment - while not perfectly clear, since special assessments are called out with 14 days notice, this seems to cover normal agenda items - of which annual assessments are - 48 hours
"1. Adequate notice of all board meetings, which must specifically identify all agenda items, must be posted conspicuously on the condominium property at least 48 continuous hours before the meeting except in an emergency."

EXCEPT, 718 goes on to discuss a Budget meeting - where the budget is discussed - requiring 14 days. Hmmm - so, not sure an assessment increase can occur without 14 days notice of the board meeting for a budget meeting.

(e) Budget meeting.
"1. Any meeting at which a proposed annual budget of an association will be considered by the board or unit owners shall be open to all unit owners. At least 14 days prior to such a meeting, the board shall hand deliver to each unit owner, mail to each unit owner at the address last furnished to the association by the unit owner, or electronically transmit to the location furnished by the unit owner for that purpose a notice of such meeting and a copy of the proposed annual budget. An officer or manager of the association, or other person providing notice of such meeting, shall execute an affidavit evidencing compliance with such notice requirement, and such affidavit shall be filed among the official records of the association."

I'm not a condo guy, so ... others will be better equipped to discuss - I'm just reading through 718 ...

JohnC77 (California)
Posts: 562

Posted:

I would hope that the question being asked is how much notice is required AFTER the Board has approved the increase before the owner has to pay the new amount.

SheliaH (Indiana)
Posts: 6,964

Posted:

You don't say if you're on the board and if you are, why haven't you read your documents. That's usually where you find these answers,especially if you asked the same question weeks ago).if nothings there or what you're reading doesn't make sense, you can consult a private attorney. Most of us aren't attorneys and not all of us live in Florida

That said, it sounds odd that the board would say they're increasing the assessment within 48 hours - usually homeowners get a 30 day advance notice. If the assessment needs to be increased, you need to explain why and provide a copy of the budget. Be prepared to ask other questions about the budget as well

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:

Shelia,

It sounds like the question is whether or not the board is required to provide 14 days notice of meeting to decide vs 2 days ... I may have read this wrong?

JohnC77 (California)
Posts: 562

Posted:

Quote:

Posted By GeorgeS21 on 12/16/2020 12:06 PM
Shelia,

It sounds like the question is whether or not the board is required to provide 14 days notice of meeting to decide vs 2 days ... I may have read this wrong?

So, when do you give the owners the bad news if the board passes the increase. In California, it is clearly spelled out, 30 days before the increase is implemented.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

John,

Granted the notice of the increase following the meeting is a longer period, usually 30 in most states, and certainly re our bylaws in my community in Florida.

I think the question is how much notice must be given before the Board meeting to consider an increase in assessments.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By SabrinaF1 on 12/16/2020 11:16 AM
Yes. I’m asking because I need to know the answer.
That’s why I said from an attorney.

You can definitely do it with 48 hours notice.

More importantly, if you need the advice of an attorney then you should hire one. Even if there was one here at HOATlk, he or she won't give legal advice over the internet to anonymous posters.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

In our case, the BOD alone can raise the Annual Assessment (Annual Dues) once a year as much as they desire to raise them. Notice of the increase must be sent to each owner on or before 12/01 in the form of the UpComing Year's Budget to Become Effective on 01/01.

Prior to 01/01 owners can call for a Special Meeting and 51% OF ALL OWNERS can vote not to accept the new budget. I did say 51% of all owners. If they do vote not to accept, there is an automatic COL increase.

In the case of a Special Assessment, the BOD must ask for such and 2/3rds OF ALL OWNERS must approve such. I did say 2/3rds of all owners must approve.

There are two types of assessments (Annual and Special), and most people confuse them as I think Sabrina does or did.

MichaelS56 (Minnesota)
Posts: 859

Posted:

After you have received your answer about the timing of the Special Assessment and you as a Board have approved it, the last step in the process is to find out why this Special Assessment is needed. Was there not enough money placed in the Replacement Reserve, are the monthly assessments too low?

SabrinaF1 (Florida)
Posts: 14

Posted:

ITS HOA not CONDO. We follow under 720 but you must admit 720 is unclear on that.

Also, as I stated before it regular increase NOT a SPECIAL ASSESSMENT.

YOu can read from All the different comments that it's a difficult subject. A lot of different opinions. So I don't feel bad. It's not cut and dry.

The board wants to have a meeting within 48 hours vote at the meeting to increase the assessment fees.

I'm the president of the board. I said to the board since we are getting so much push back, let's just give homeowners 14 days to come to the board meeting see us vote on this issue, let them voice their concerns. etc.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By SabrinaF1 on 12/16/2020 2:45 PM
ITS HOA not CONDO. We follow under 720 but you must admit 720 is unclear on that.

Also, as I stated before it regular increase NOT a SPECIAL ASSESSMENT.

YOu can read from All the different comments that it's a difficult subject. A lot of different opinions. So I don't feel bad. It's not cut and dry.

The board wants to have a meeting within 48 hours vote at the meeting to increase the assessment fees.

I'm the president of the board. I said to the board since we are getting so much push back, let's just give homeowners 14 days to come to the board meeting see us vote on this issue, let them voice their concerns. etc.

If you can, it would be wise to listen to owners even if you do not follow their suggestions at least you listened. It could be a chance to explain why the increase and maybe get, though you do not need, their acceptance.

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By SabrinaF1 on 12/16/2020 2:45 PM
ITS HOA not CONDO. We follow under 720 but you must admit 720 is unclear on that.

FS 720's not having a sentence that makes sense to you does not translate to FS 720 being unclear.

Quote:

You can read from All the different comments that it's a difficult subject.A lot of different opinions.

Exactly four members here opined on what FS 720 says with regard to your question. All four said the same thing. See the posts above by GenoS, GeorgeS21, TimB4, and AugustinD.

What is it you do not understand about these four people's responses?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By AugustinD on 12/16/2020 3:00 PM

Posted By SabrinaF1 on 12/16/2020 2:45 PM
ITS HOA not CONDO. We follow under 720 but you must admit 720 is unclear on that.

FS 720's not having a sentence that makes sense to you does not translate to FS 720 being unclear.

Quote:

You can read from All the different comments that it's a difficult subject.A lot of different opinions.

It appears Sabrina does not like the answer and is shopping for one she does like. That happens out here quite a bit.

SabrinaF1 (Florida)
Posts: 14

Posted:

john... I promise you I'm not shopping for what ever answer. If you read the comments I said people who live in HOA in FL. some of the comments were from other states.

Thanks to everyone.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Since FS720, it is clear.

48 hours notice of the board meeting with mention in the agenda of assessment.

This does not need an attorney opinion, IMO.

SabrinaF1 (Florida)
Posts: 14

Posted:

thanks

TimB4 (Tennessee)
Posts: 21,061

Posted:

Quote:

Posted By SabrinaF1 on 12/16/2020 11:16 AM

Yes. I’m asking because I need to know the answer.
That’s why I said from an attorney.

In that case, you should contact an attorney versed in property or contract law.

If there is an attorney on this site, I doubt they would identify themselves as such.
An attorney, in order to provide a more informed legal opinion, would need to review your governing documents as well as applicable statutes.

JohnC77 (California)
Posts: 562

Posted:

As an owner I would be more concerned about receiving notice in a timely matter that an assessment increase has happened. People have ACH, or online banking that has to be adjusted A number of HOA's have coupon books that owners use that have been printed and maybe already mailed out.

But, it appears Florida doesn't have anything in place, but that seems like par for the course down there.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Quote:

Posted By JohnC77 on 12/16/2020 8:28 PM
As an owner I would be more concerned about receiving notice in a timely matter that an assessment increase has happened.

Agree.

Don't tell me at the end of December that Assessments will increase starting Jan 1.

There is really no reason why the next years budget can't be made and voted on in Oct (in my opinion).

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

It's not difficult if you simply follow the statute and perhaps the Florida Administrative Code. The FAC is a bit more complicated because it's written mainly with condos in mind, not HOAs, and the complications come about when it's not clear which provisions apply to HOAs and which do not. Or, maybe your Bylaws have something to say on the issue and that could conceivably make things more difficult. Otherwise, it's not complicated.

Nevertheless, as you've observed in FS 720, if it's not a Special Assessment then all that is required is the regular 48-hour notice of a board meeting that includes a statement that assessments will be considered at the meeting. That's it. If there are a lot of different opinions about that then I would suggest most of them are wrong.

The job of the board is not to make everyone happy. But if the board wants to give the owners a heads-up 14 days ahead of the meeting then you can do that. I'd do it as an informational note and not "the" meeting notice, which still only requires 48 hours in advance.

SabrinaF1 (Florida)
Posts: 14

Posted:

thank everyone again
We had a meeting tonight. Had some push back. some want to be lawyers in the group. We told them 48 hours' notice was all required. Then they said but didn't just discuss it, you voted blah blah. Its over. we announced, we voted, and that's it.

It goes into effect on Jan 1.

SheliaH (Indiana)
Posts: 6,964

Posted:

Then learn from this. AS a practical matter, homeowners should have a lot more lead time as far as assessments go, whether they increase or not. Your documents may say you can announce this with 48 hours' notice, but sometimes, you have to use your common sense (and who's to say the developer had any when this was placed in the documents?)

My magazine subscriptions give me more notice of the rate increases than you did, so I don't blame the homeowners for the pushback. Especially this year, with the economy in the sewer (we're beyond toilet bowl at this point) - now people will have to adjust their household budgets quickly, and you know some are savvier at that than others.

I'm sure this was discussed in a few meetings before a decision was made, so perhaps you should have a policy saying notices of the upcoming year's budget and assessment should be sent at least 30 days in advance. Make it a board resolution and homeowners will know what's up a lot sooner than 48 hours. Some of them still won't like assessment increases, but if they've read board meeting minutes that should discuss upcoming projects, they'd have some idea of what was up. And if not, you can explain it in the annual budget letter.

You also need to write out your questions - this three or four-word thing you're doing on some of your posts is way too cryptic. If you have a question, ask it (we can't guess what you want to know)

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 12/21/2020 7:09 PM
so perhaps you should have a policy saying notices of the upcoming year's budget and assessment should be sent at least 30 days in advance. Make it a board resolution and homeowners will know what's up a lot sooner than 48 hours.

I know that SheliaH and others' posts about how giving at least a month's, and preferably, six months' in my opinion, advance notice of an assessment reflects years of experience volunteering in HOAs and wisdom. However, for the archives, I want to discourage creating "resolutions" and "policies" that have no legal force due to their having no basis in the governing documents.

The suggested resolution and/or policy does not legally bind future boards to give 30 days notice. If a Board wants to vote on such a resolution, in my opinion it should have a disclaimer in it that it is not legally binding upon either the current or future boards. It is merely a suggested practice.

Why am I being particular about this? Because I think too many new Board Presidents arrive here at HOAtalk, a little puffed up perhaps (who wouldn't be?), and not knowing the difference between an officer and director and a rule and a Covenant, thinking that anything he or she, or the board, wants to do is lawful. Not so.

I encourage only HOA board and HOA president conduct that has a clear basis in the covenants.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By AugustinD on 12/21/2020 7:53 PM

How true.

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