Voting for movement of funds

Fl 720 states that the HOA now has to vote to move any funds from the reserve accounts to the operating. As Treasurer at the time, I put together a budget with the funds in the operating and without to show the homeowners what the maintenance fees would be for 2009. The quorum was met and our attorney at the meeting called the vote legal. The vote and the budget were not voted on at the budget meeting, it was adjourned to another day.
In the interm, 2 board members and myself resigned. The new Treasurer has prepared a new budget which is much higher and does not address all the issues in the budget and the vote is not honored.
We are going to file a Civil Rights violation for an injunction against the budget with my original budget to stand in place until the case is heard. The injunction will turn into a class action from all the voters. Before everyone gets up in arms, a civil rights violation for not honoring votes is not covered under D&O insurance. The board as individuals will have to pay for the suit. They are knowingly violating our basic rights as homeowners. They are operating under vindictivness. I gave them warning of the suit but the Treasurer seems to be telling the others on the board not to worry. They should worry.
I and my attorney are looking for any violations of a similar nature. We have reviewed most case law suits and have not found anything but voting in elections violations. Have you heard of any similar suits? Or know of a HOA that has had a similar problem?

I presented a budget at a special meeting. It was not voted on at this meeting because of time constraints. I resigned the next day. The board then appointed a new Treasurer. He came up with a new budget. There were no oppositions to my budget at the meeting (2/3 represented), but for the new Treasurer, he said he could do it better and for lower fees. 3 weeks later and he cannot. He backed himself into a corner. The new budget is in the mail to be voted on in 2 weeks. There are 2 out of 7 on the board who do not agree with the new budget and want the vote used. 5 are calling that the budget be sent out to the HOA without the vote.

The lawsuit does fit the civil rights bill. We have a HOA governed by documents that give us the right to vote, the vote is not being honored. D&O insurance does not cover the board in a blantant violation of homeowners rights. So it will not cost the HOA a penny, the board members will have to defend themselves.

Under job description for board members, it should say WHO is responsible for developing the budget for approval. Then there is the issue of WHO approved the budget. The budget should have been hammered out at a board meeting before being presented to the Members. If that was not done, then the motion to approve could be withdrawn at the meeting and sent back to the board to get their final approval. (You aren't stating the procedures, but I am guessing these are the steps)The board can always call a special meeting to approve the budget.

Sorry, but to prove that the board is preventing the Members from voting is not seen in your situation. The board will argue that it is acting responsbily in not presenting the budget for approval.

ARe there written deadlines for approval of the budget?

Mary, The vote was only for reducing the budget using reserve funds not the budget itself. After I go input from the other board members and the budget was set it was placed on the agenda. The explination and questions took a lot of time (2 hours). People were walking out because it was almost 10:30 pm. We are facing many financial problems as are most HOA's. There were 246 members who attended the meeting. A lot of votes cast and counted. The count was not announced because we had not finished the questions and answers when we posponed the meeting to a later date. The attorney has the votes. I had already made the discission to resign the week before the budget meeting. The board was ready to vote on my budget at the meeting. Before he was appointed the new Treasurer stood up at the budget meeting. He got board members ears and they decided to let him redo the budget. The new budget does not include the vote and it does not address the cash flow when we have homeowners who are not paying. 2 current board members disagree with this budget. The other board members are friendly with the Treasurer and do not care what he does even if it is illegal.

Nancy,

I'm really trying to understand everything that happened. I don't understand why votes were cast b/4 all discussion had ended. What do you mean in saying: "The new budget does not include the vote. . ."? Am I correct in thinking the new budget cannot be adopted w/o a vote of the members? If this is the case, then I don't see what the problem is. All the board has to do is have a meeting to vote on the budget. If the members don't like it, they don't need to approve it.

Nancy,
Could you please quote the section from your Docs which shows that the membership votes to adopt the budget?
Members have to vote to transfer or change Reserve accounts but most documents state that the Board adopts regular budgets so I am interested in how that is worded.

Nancy,
Again I ask, do your Documents state that the membership votes on your budget. Most documents do not state that and the Board is responsible for adopting a budget. Why do you state that "They are proposing a budget without" any vote" and you said--"The members do not vote on the budget the board does". I am confused.

Nancy,
The vote to transfer the Reserve Funds passed the membership by a vote. Where did the Reserve funds go? Why were they transfered? Reserves are like "sacred money" and to move them, I hope that it was worth all of this hassle that you all are going thru and the purpose of the move was something spectacular.

Donna we were overfunded in these accounts. We needed to reduce the heavy increases in the budget to make it palitable for the homeowners. Homeowners were up in arms about having to pay for someone else who is getting the same services that the paying are. We looked for a way that the paying could live with and hopefully the new budget would not put more people over the edge and not pay. It was meet with great approval by the HOA as evidenced with the vote. 1/3 of our quarterly fees have not come in. We have taken the proper steps, liens, but foreclosure is out of the question. Most homeowners are upside down in their mortgages.

Nancy,

You wrote:

"the vote stated "we will transfer funds from the reserve to reduce the quarterly but we need a vote from the community".

Okay. That, under the FL law mentioned, and if passed, would seem to binding on the BOD.

However, if the BOD controls the budget, and if no amount or % was stated, then the BOD could reduce Q fees by $1 and be in compliance, yes?

Nancy,

OK, now I understand. The vote was to approve a transfer of funds not to approve the budget. The fact that the transfer doesn't show up on the budget does not mean the money wasn't transferred. The budget of my assn doesn't show transfers from the reserve fund, it only shows what is being transferred TO the reserves because that money comes from assessments collected. The proposed reserve spending for the new year is shown at the bottom, but is not a line item on the budget. The reserve accounting is separate from the accounting for the operating fund. The budget reflects income and expenses relating to the operating fund.

I wouldn't be concerned that the transfer is not shown on the budget; I'd only be concerned if the transfer doesn't show up in the operating fund bank account!

Nancy,

You know a budget is only an estimate of income and expenses and can be amended at any time. Since you say the funds cannot be transferred until 1/1/09, aren't you jumping the gun on this lawsuit? The board can change their mind, amend the budget and transfer the funds.

BillG6,

The BOD called for a vote by the membership as required in FLS 720.303 6 (d). The HOA attorney told the BOD yesterday that they have to continue the meeting with the original budget and the vote. The BOD at a meeting last night told the HOA this. At the end of the meeting when they were questioned on the process of the meeting the President then stated that it would not be a budget meeting as it was adjourned from and to. She then stated that the voters who did not vote will now have a chance to vote at this next meeting. They are looking into some convoluted way to look at who voted and who did nor and give the voters who did not a chance to vote. The vote was counted at the last meeting. It was called legal at this meeting by the attorney who atteded.

They are now calling it a Reserve meeting. They also have not sent out a supposed new budget as required by FLS 720. 14 days before the meeting.

Nancy I am a treasurer and exactly where does it say in 720 or since the patients have taken over the snatorium in 719 does it state that members have to vote on transferring money from 1 account to the other.
We have done this so many times its no longer worth working up a sweat over.

First of all the smart Florida way would have been to have a Budget Workshop meeting for the Budget alone nothing else can be discussed period/ Cities do it every year and thats what a hoa is in florida a minature city we both know that
second if funds had to be moved move them with a motion and a second at a reguar meeting under the treasurers portion of the agenda. Using your and your atty ideas a certain percentage of the community must show up and vote for or against. In 21 years I have only met the state and ccr requirement once for quorum numbers are you trying to tell me we cannot do what we have done for the past 21 years when we have n emergency such as you got it a hurricane.

Budget workshops allow everyone on planet earth to argue about it with there facts not suppositions TOPS reins supreme. Then at the following meeting you the treas make a motion to approve or disapprove the Budget that was a product of the Budget Workshop with changes requested by the members. The folks vote end of problem period.

Please dont hide behind the atty we dont we govern not all attys are right every time thats why you guys get the big bucks I would not have resigned I would stick to my guns you got to develop a thick skin to serve on a BOD for sure.....................seen a lot of good people quit because they were spoken bad of thats life...............