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Should funds generated by only a segment of a community be used for costs throughout the rest of the community?

Started by ChrisS292 replies • 63 views

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ChrisS29 (Florida)
Posts: 48
Posted:
This is a condo in Florida where there are multiple phases, one phase uses communal laundry facilities while the others have laundry in their units. The Association maintains a separate laundry account dating back to when it maintained the facilities completely and sold the tokens for the machines. Now a vendor is licensed to maintain it and the money generated through cards recharged at a kiosk is reimbursed (minus their fees) back to the account.

Some argue that the unused money after expenses that accumulates in the account should be used for improvements and towards assessments that impact that phase considering it's money generated solely by that phase. Some argue that the account be eliminated and all money go into the operational account for use by the entire community. I see the points of both sides, but I'm wondering is there a legal precedent that money generated by one phase being used for that phase. The association is one entity, there are no sub-associations for the phases.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
My opinion is laundry revenue should offset costs of operating laundry facilities to maximum extent possible. The HOA should then provide operational funds in the event maintenance exceeds the laundry's ability to provide 100% ROI. It's transparent. Having the HOA maintain its traditional budgeting method certainly works, too, just less transparent. That said, unless there's an indication that the HOA board is investing luxuriously in laundry facilities, I don't think I'd fight the matter much beyond checking on how the regular cash flow compares the the cost of the service.
DeanJ
Posts: 1,786
Posted:
If I own a unit not serviced by the laundry common area and there is a plumbing issue that causes damage to the common area, are part my of my assessments going to be used to repair the damage or are the laundry area units going to get a special assessment?

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