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SaraM4 (Florida)
Posts: 3
Posted:
Can someone please help me out. I purchased a condo in Florida last year. I have been special assessed 3 times since the purchase for major repairs. Upon purchase it was not disclosed the pool was closed for major repairs. We have been special accessed for the pool repairs twice and some repairs have started (we needed a new pump and filter and structure for housing) It's been a year, and the pool is repair is still not completed, so pool remains closed. We have also been special accessed for replacement of cast iron sewer pipes, (thousands per unit x 48 units) also been specials accessed twice. No repairs have-not been started. And I just received a letter from the HOA stating that they are still looking for bids. Can they do a special assessment and collect the money without a real bid? Eash unit has paid over 3,500.00 in Special assessments. Just trying to get some clarity.
Thank you!
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It sounds like no one is paying the special assessments. You can not complete the work if you do not collect the money. So have you not paid any of the assessments? They are all separate projects money is needed for to make things happen.

Former HOA President
SaraM4 (Florida)
Posts: 3
Posted:
All assessment money has been collected. First assessment was for random things. Second assessment was for 1000 for pool and plumbing as was collected in February with 30 days to pay. Last assessment was for 2000 and assessed in August. All monies have been collected per last HOA meeting.
LoriM15 (Florida)
Posts: 1,009
Posted:
You have the right in Florida to examine all bids and contracts for the association. You should also be able to see the finanaces. In my experience, it's very unusual to collect a special assessment before you have a bid.

It also should not take a year to replace a pool pump and pool housing. I would definitely ask (you need to make a formal request) to review that contract. You can't demand a copy, but you can ask to see the contract. They have to reply to your request.

It sounds like there were inadequate reserves and they are special assessing for every project.

The best thing to do is go to every meeting and ask questions, or try and get yourself elected to the board. But definitely ask to review the latest finances, and the bids/contracts for the projects.
TimB4 (Tennessee)
Posts: 21,059
Posted:
OK.

Step 1 - Get Bids.
Step 2 - Impose Special Assessment (as apparently there is not enough in the Reserves - indicating that annual assessments are too low).
Step 3 - Collect Special Assessment
Step 4 - Award Contract
Step 5 - contractor schedules job
Step 6 - Project is done.

Sometimes, step 4 is done prior to steps 2 & 3.

With labor shortages and weather issues, it could take longer then one would expect from awarding contract to when the job is done.

Simply ask the board the following:

1) Has the contract been awarded for xyz?
2) Who won the contract?
3) Has a date been set for the work?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I agree with Tim. After hiring contractors it can take months for things to come in. We had a private pool in our area that pump and pump house blew up due to water pressure. It has been closed this whole year. It is a private swim club that charges a membership fee. Can imagine those fees going up this year when it is repaired.

Former HOA President
LetA (Nevada)
Posts: 2,679
Posted:
Bids take time, depending on the project you need to pull permits, get local inspections pre and post-work.
Perhaps an environmental study. Depending on the scope of the work you might need approval from the zoning board.
This all takes time.
SaraM4 (Florida)
Posts: 3
Posted:
Thanks Tim, Yes, they did receive multiple bids, imposed the first special assessment, but never awarded the contract to anyone. Then later decided they did not collect enough for the first special assessment, So they assessed a second time for the same repairs. Assessments have been paid, still have not awarded a contract. This started last February. We just received a letter from the HOA stating, "They are still gathering information on legit bids to have the work completed". Can they legally assess without bids? How long after an assessment does work have to commence? They did have a decent reserve, until last year when the insurance skyrocketed. There is also a large amount of money missing, that has been questioned (about 40K) however our board decided it was not worth pursuing due to the cost of legal fees. Our Monthly Dues has also skyrocketed. along with the special assessments. I'm very familiar the process of repairs as is comes to construction, My father is a local general contractor, we are in a small area. And are familiar with permitting, building codes, etc. However, we own many properties in the area but only two that are in condo HOA communities (will never do that again). So my question is how can they assess random amounts? Is there a time frame that they must start repairs? Can they assess and hold the money permanently and never repair?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By SaraM4 on 01/24/2024 9:52 AM

We just received a letter from the HOA stating, "They are still gathering information on legit bids to have the work completed". Can they legally assess without bids?

This will depend on any wording within your governing documents.

Personally, I have not seen any requirement for bids for a special assessment.

It makes sense to have bids first, but some individuals may simply do research and say it should cost around $xx,xxx and see if they can adopt a special assessment before obtaining bids.

Quote:
Posted By SaraM4 on 01/24/2024 9:52 AM

How long after an assessment does work have to commence?

If there is no requirement in your governing documents, then (to my knowledge) there is none (as I saw none in applicable statutes)

Quote:
Posted By SaraM4 on 01/24/2024 9:52 AM

They did have a decent reserve, until last year when the insurance skyrocketed.

I take that to mean that the Board "borrowed" from the reserves to pay the insurance.
They may need to create a special assessment to pay back the reserves (in addition to raising assessments to cover future insurance costs).

Quote:
Posted By SaraM4 on 01/24/2024 9:52 AM

There is also a large amount of money missing, that has been questioned (about 40K) however our board decided it was not worth pursuing due to the cost of legal fees.

That tells me that the board knows what happened to the money and isn't sharing OR
The board has no idea what happened and is spinning it to look better.

If it was embezzled, remove the individual, turn the issue over to the DAs office for charges and file an insurance claim (expecting your Association has a bond or crime insurance).

Reasonable attorney fees can be reimbursed if you win (and request it from the court).
Sometimes, the simple filing of legal action can bring a settlement.

Quote:
Posted By SaraM4 on 01/24/2024 9:52 AM

Our Monthly Dues has also skyrocketed. along with the special assessments.

Just based on insurance costs they would skyrocket. Add inflation and it just goes higher.

Quote:
Posted By SaraM4 on 01/24/2024 9:52 AM

So my question is how can they assess random amounts?

Because the governing documents and the membership allow it to happen.

Quote:
Posted By SaraM4 on 01/24/2024 9:52 AM

Is there a time frame that they must start repairs?

asked and answered
Might not be the answer you were hoping for, but answered.

Quote:
Posted By SaraM4 on 01/24/2024 9:52 AM

Can they assess and hold the money permanently and never repair?

Realistically - it's possible.
Depends on how much the membership (collectively) is willing to push the issue.

I would think that if a contract isn't awarded in a reasonable time (I would say reasonable would be 2-3 months) then someone, or a group, can take the association to court over the issue.

Keep in mind, if few want to serve, the membership is stuck with those willing to serve.
The fix to this is gather support, attend board meetings, continue asking questions if the answers don't make sense and, if desired, recall the board or simply don't reelect. However, that requires others to step up.

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