CharlesZ (Florida)
Posts: 16
Posts: 16
Posted:
Do homeowners have any rights when it comes to a POA budget or does the Board control all budget related decisions.
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DouglasK1 (Florida)
Posts: 2,047
Posts: 2,047
Posted:
The primary authority for that info would be the governing documents for your association. Generally the CCRs and possibly bylaws will spell out the duties and responsibilities of the board. In most cases the board is given broad power to manage the association's affairs, and the member's main role is to elect directors that they feel will best carry out those duties. Depending on the governing documents, the members may have to approve one or more of: the annual budget, the annual assessment (dues), increases to the annual assessment over a certain percentage threshold, improvements (not just maintenance/repair/replacement), and special assessments. State law might also have some requirements but I don't recall anything offhand from FS718 or FS720 that would affect this.
Here is snippet from my last association's CCRs about board duties/responsibilities:
The Board of Directors of the Association shall approve annual budgets in advance for each fiscal year and the budget shall project anticipated income and estimated expenses in sufficient detail to show separate estimates for operating expenses, maintenance expenses, repairs, replacement reserve and reasonable operating reserve for the common property, in addition to reasonable reserves for the continued maintenance and operation of any other items deemed necessary for the protection of all property owners. There shall be a reserve for periodic major maintenance to the streets and drainage system, including ponds,
with minimum level of reserves to be maintained in perpetuity and replenished from time to time, as necessary, by assessment, and such minimum level of reserves shall be in an amount approved by the County. These funds shall be held in a separate account apart from all other Association funds. These funds shall be reported to the County by submission of an annual audit or County-approved financial report. Each owner shall be liable for the payment to the Association of its share of the common expenses as determined in said budget.
Escaped former treasurer and director of a self managed association.
BryonW (Massachusetts)
Posts: 76
Posts: 76
Posted:
Hey CharlesZ, it is always possible that your POA has weird bylaws, so do be sure to check your specific bylaws, rather than just following what is "typical". That disclaimer out of the way...
Yes, what DouglasK1 described is the most common arrangement. Owners elect board members, then, board members set the budget.
Tell us more - what is your board trying to do right now, and why do you disagree?
MichaelS56 (Minnesota)
Posts: 885
Posts: 885
Posted:
I did not see in the Florida law 720.303 the Board needs to have an owner vote on the annual budget. It appears to me that the annual budget is handed out at the annual meeting that is already approved by the board.
CharlesZ (Florida)
Posts: 16
Posts: 16
Posted:
Thanks to all for the replies. Allow me to explain further what is happening. Our community turf conditions have been abysmal since last summer. The Board had no intention to do anything. I initiated a 65-homeowner petition to request a sod meeting last March and the Board has used very excuse not to hold the meeting. The sod reserve has $941 and the unrestricted reserve fund has $129,000. I initiated a second petition to request a reserve fund and budget meeting to vote re-allocation of some of that unrestricted reserve in August. That unrestricted reserve is non-statutory and not earmarked for anything. We have separate painting, roof-cleaning, irrigation, and sod reserve funds. We have no responsibility for street repair.
In addition to using blast email via our member funded website to intimidate and discourage the petition, the board sought a legal opinion that stated we could not do what we expected at the meeting. In the Board's response letter to our petition the board did recognize our right (FS 720.3030 to influence reserve funds with a majority vote. I have secured 58 signed limited proxy statements (since we typically have 24 or less homeowners attend meetings) which represents a majority that voted to re-allocate $85,000 to the sod reserve along with some other specific budget items. Florida Statute recognizes the close relationship between reserve funds and the budget so it only seems logical that the majority should have some say in the budget.
The board even went so far as to use the blast email to discourage homeowners from signing a proxy by telling them they are giving their proxy the opportunity to vote however he/she wanted. The board used that medium to defame our small group by stating we were spreading misinformation and that we were not authorized to officially speak for the POA. They encouraged homeowners not to sign the proxy but to attend the meeting in person. The board knows that the likelihood of 58 homeowners attending is remote. The Board even prayed on homeowner fears by saying it was a waste of money to hold a meeting where the homeowners could do nothing. In my response, I calculated that the only cost was for the legal opinion the board already sought - a sunk cost.
Over the last 6 months have established an email friend's group of nearly 70 homeowners (out of 114) that I share routine updates with. Every action I or my small group has taken is shared with that friend's group. I am finally seeing results as homeowners are getting off the couch and getting involved. There is a realization that we are no longer the silent majority and hence the 58 signed proxy statements. The chatter in response to the Board's blast emails is encouraging.
While our By-laws do say the Board develops and approves the budget, given all said, I still feel the majority should be able to influence the budget. Given our Board's arrogance I know recall is an option. I am not looking for anyone's head. I just want the board to exercise its fiduciary duty and work for the betterment of the community. Thanks.
Chuck
DouglasK1 (Florida)
Posts: 2,047
Posts: 2,047
Posted:
Quote:
Posted By MichaelS56 on 10/07/2026, 7:23 AM
I did not see in the Florida law 720.303 the Board needs to have an owner vote on the annual budget. It appears to me that the annual budget is handed out at the annual meeting that is already approved by the board.
I did not see in the Florida law 720.303 the Board needs to have an owner vote on the annual budget. It appears to me that the annual budget is handed out at the annual meeting that is already approved by the board.
I'm not aware of anything in 720 that requires it either, but some CCRs can. In my last association the CCRs said owners needed to approve at the next annual meeting, but they didn't get into what would happen if the owners didn't approve the budget/assessment.
Escaped former treasurer and director of a self managed association.
BryonW (Massachusetts)
Posts: 76
Posts: 76
Posted:
Hey CharlesZ - wow, good work getting a group of people organized! You have already gotten farther than many other people in similar situations...
I am not in FL, so I will not speak to specific legal actions that you can take (hopefully others on this forum can chime in with that). I'm sure it is some combination of calling meetings, sending letters, etc.
But I would recommend keeping a two-prong approach. Start taking the appropriate legal steps, and also, keep trying to talk with the board. Hopefully you can help them "see the light" - eg that your group represents a majority, and that the board is only alienating the owners by continuing to resist. And remind them that, while you are taking legal steps to enforce the will of the majority of owners, you would certainly prefer a friendly solution, and if the board can work with you to make a plan to fix the sod, then, you would drop your legal actions. Carrot and stick.
CharlesZ (Florida)
Posts: 16
Posts: 16
Posted:
Thank you DouglasK1 and BryonW. Appreciate the insight.
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