Bonded?

Laverne,

Your Board should have a D.7O. insurance liability policy (Directors and Officers) which will protect you from a lawsuit in the event of a fraud lawsuit.

Your 55+ is under Federal Govt. laws. Below is just a small part of what is required but you can go to the Fed Govt website under "FAIR HOUSING ACT"

Senior Housing Exemption

Although the FHAct was amended in 1988 to prohibit discrimination on the basis of disability and familial status, Congress intended to preserve housing specifically designed to meet the needs of senior citizens. Housing that meets the FHAct definition of "housing for older persons" is exempt from the law's familial status requirements, provided that:

HUD has determined that the dwelling is specifically designed for and occupied by elderly persons under a Federal, State or local government program or
It is occupied solely by persons who are 62 or older or
It houses at least one person who is 55 or older in at least 80 percent of the occupied units, and adheres to a policy that demonstrates intent to house persons who are 55 or older.
Therefore, housing that satisfies the legal definition of senior housing or housing for older persons described above, can legally exclude families with children.

The Housing for Older Persons Act of 1995 (HOPA) OMB Approval Number: 2529-0046 (Expiration Date 6/30/2006)

Anyone with access to the money should be bonded, unfortunately there are people who take advantage of others trust. Because you wouldn't steal you assume your neighbor wouldn't either or that great guy/gal from the management company is completely trustworthy. And not all of them are thieves some are just people who get in trouble and look for a way out fully intending to make restitution. Our By-Laws require:

Section 2.10. Fidelity Bonds. The Board shall obtain fidelity bond coverage with respect to any person who either handles or is responsible for funds held or administered by the Association, in an amount no less than the maximum funds that will be in the custody of the Association or its management agent at any, time while the bond is in force. Provided, however, the fidelity bond coverage must at least equal the sum of three months’ assessments on all living units in the project, plus the Association’s reserve funds. A management agent handling funds for the Association shall also be covered by its own fidelity bond, at the sole cost of said agent, naming the Association as an additional obligee. All bonds shall provide for ten (10) days’written notice to the Association before the same may be canceled or substantially modified for any reason.