Pavers funded by landscaping capital contributions

Started by SteveM40 • 7 replies • 343 views

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SteveM40 (Florida)
Posts: 8

Posted:

We are about to install additional pavers around the clubhouse and event lawn area. Since it was not budgeted. The funding source is planned from landscape capital contributions rather than capital contributions.

Our declaration states:

The Resale Landscaping Capital Contribution shall be specifically utilized to provide for landscaping replacement and improvements (e.g., annuals, plants, trees
and the supporting infrastructure) to the Common Property.

Based on this, would pavers qualify as "supporting infrastructure" and be an allowed usage of these funds or should it be from capital contributions?

Thanks,
Steve

ElleN (Idaho)
Posts: 4,420

Posted:

SteveM40, your post speaks of a "Resale Landscaping Capital Contribution." Is this a fee charged to buyers upon completion of the sale or a home or unit? If so, then do you think it's fair to say that the HOA (through the board) aims to replace annuals, plants, trees and the supporting infrastructure only as money becomes available from resales?

I am asking about this because of concerns about budgeting for both the operations side of the budget and the reserve side of the budget. For one thing, Florida statutes "encourage" (so to speak) HOAs and condo associations not taking money from reserves for xyz unless the most recent reserve study has included xyz. This is because of concerns that, when money for xyz is spent from the reserve account and xyz is not even listed in the reserve study, owners are being lied to and denied their chance to object.

I am wondering whether annuals, plants, trees and supporting infrastructure are budgeted at all? Or does this board just rely on this "Resale Landscaping Capital Contribution" fund to replace this stuff as money becomes available?

If this a condo subject to FS 718; a HOA subject to FS 720; or something else?

SteveM40 (Florida)
Posts: 8

Posted:

I just pulled the part of the declaration for resale contributions, makes no difference if initial or resale. I am just questioning if pavers should be part of this funding.

We are a HOA subject to 720, but it's the detailed description of landscape capital that I'm trying to interpret. The capital accounts are used for those projects not budgeted under regular landscaping budget GL numbers. Both capital contribution accounts are well-funded, just need to draw from the correct capital account. Nothing is coming from reserves.

ElleN (Idaho)
Posts: 4,420

Posted:

I think we are talking past each other. You have the whole Declaration in front of you. I do not.

If I were on the board, based on what you posted, I would be fine voting to pay for the pavers from the Resale Landscaping Capital Contribution fund. This is because I think the pavers are supporting infrastructure for the annuals, trees et cetera.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By SteveM40 on 06/18/2023 8:07 AM
We are about to install additional pavers around the clubhouse and event lawn area. Since it was not budgeted. The funding source is planned from landscape capital contributions rather than capital contributions.

Our declaration states:

The Resale Landscaping Capital Contribution shall be specifically utilized to provide for landscaping replacement and improvements (e.g., annuals, plants, trees
and the supporting infrastructure) to the Common Property.

Based on this, would pavers qualify as "supporting infrastructure" and be an allowed usage of these funds or should it be from capital contributions?

Thanks,
Steve

I say yes to using those funds.

LoriM15 (Florida)
Posts: 1,009

Posted:

Our board would have no issues using the capital contribution fund as your documents define the usage to pay for pavers. They are part of the landscaping. Just make sure you then add them to the reserve study next time. Because as we know in Florida they will require maintenance and that should come out of reserves.

KerryL1 (California)
Posts: 14,550

Posted:

In our HOA pavers are "hardscape," and though they abut raised planters, their function is for residents to walk or drive on. They basically are a circular driveway and sidewalk areas. They aren't supporting infrastructure for the landscaping. They have two reserve study entries, "repair" and "replace."

So, to me, it depends on where your pavers are and the extent to which the addition is somehow infrastructure related to spur landscaping.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

I think you can use capital replacement funds or our landscaping maintenance budget IF this is a small addition to your collection of pavers.

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