New PM tells HO's an UNtrue Statement

Donna and all it's me again. Once more I need help...Everyone knows about the mess my HOA is in well, it isn't getting any better. Yesterday I received the assessment invoice that was due at least 30 days in advance of due date (Jan 1st)...This new Manager has added a untruthful statement under "Disclaimer"...(The Budget of the Association "does not" provide for Reserves)...It is true that the Reserves were NOT funded since April of 07 but it was in our Budget each year since we took over and the developer had started this funding. The developer had started a $902.42 monthly fund, which was paid until our President fired and hired a new MC that charged us double what we were paying. The Reserve Fund money went there.

I have once again pulled out my 2008 FL SS 720-303-BUDGET...I will be using my own words here but from what I read, once the Budget is started is much be maintained UNLESS a majority vote to have it elimated. And also it CANNOT be raised or reduced unless by a majority of HO's voted.

By this PM placing this in our invoice, he is sending the wrong signal to the HO's...because in the Annual meeting Agenda he has placed under new business...

"Should the Association amend the Budget to Fund the Replacement Reserve for the Association?
1)increase dues and fully fund Reserves
2)increase dues to partially Fund Reserves?
3)keep the dues the same?"

He has flat out told a lie and knows very well he would never get any votes for an increase....and I'm sure he also knows that we don't have enough HO's that would bother to "REMOVE" the funding to meet a majority vote....We have 77 units/16 buildings, thats a lot of roofing folks and I feel and have always felt that this finding is very necessary. This trouble maker (me) have been telling the Board this and sending copies for the FL.SS and the Importance/Fairness of the Reserves.

Is there anything I can do...these invoices have been mailed out...We could/can pay this fund if the old Board and this old of town President didn't keep firing and hiring....oh! did I mention, we now have a old of town secretary, she has decided to keep her position, though her unit has sold and she has moved to LA.

Sidney,

Lets sort this out first because there are lots of statements and I need everything in a simple line by line. (aging I guess.)

You are S.S.720 for sure? not a condo (718)?

The P.M has added a statement that the assoc. does not provide for Reserves but you state that they have always been funded except in the 04/07 budget. Is there any statement or just assumed Reserves because of the original setup by the developer?

Reserves funding MAY NOT be suspended unless by a vote of the membership, that it has decided to cease funding.

What he has written on the invoice is for increases which are done strictly thru the budget acceptance and even tho you feel that none of this will ever pass, he has not stated it incorrectly. It may or may not pass the members vote but he has to propose it on the questionaire prior to adding it or not to the budget.
(d) "Upon approval by the membership, the board of directors shall provide for the required reserve accounts for inclusion in the budget in the next fiscal year following the approval and in each year thereafter. Once established as provided in this subsection, the reserve accounts shall be funded or maintained "

In other words, the Budget(including Reserves) is voted on each year by your Board to accept it, not the membership.

If the Reserves are to be REDUCED, then it must go to a vote of the membership .(303-f) Once a reserve account or reserve accounts are established, the membership of the association, upon a majority vote at a meeting at which a quorum is present, may provide for no reserves or less reserves than required by this section. If a meeting of the unit owners has been called to determine whether to waive or reduce the funding of reserves and no such result is achieved or a quorum is not present, the reserves as included in the budget shall go into effect. After the turnover, the developer may vote its voting interest to waive or reduce the funding of reserves. Any vote taken pursuant to this subsection to waive or reduce reserves shall be applicable only to one budget year.

In other words, the Budget is voted on each year by your Board to accept it, not the membership.

Donna, we are SS720...The way I understand it, is that once the Reserve has been established it must remain as a line item in each yearly Budget unless it is voted by the members to do away with (I have read this over and over-720-303-(6)starting w/(a)....Our Reserves has been placed in the Budget each year, althought the Board stoped funding. HO's have never voted to waive or reduce this fund....The way I understand it is that the Reserves MUST remain in the Budget each year until the HO's so vote to waive....In my understanding, the Association can not have a Reserve Account every year from 2002 until now and then w/o notice the Board can make a Budget and eliminate it in this years Budget w/o HO vote."(f)the developer may vote it's voting interest to waive or reduce the funding of Reserves Any votye taken pursuant to this subsection to waive or reduce reserves shall be applicable only to this one year."

BUT what I am saying is that he (PM) has told the members we DO NOT HAVE A RESERVE ACCOUNT and that we must vote to start one...And by saying our dues will increase they for sure will not vote....It appears to me we must vote to waive before we can vote yay or nay....I feel this is a tactic to trick the HO's into voting no.

Like the last MC, they didn't fund the Reserves so they could collect their double the prior cost fee...and this one is making sure that there is enough money to pay his fees which again will be much more than necessary. We have had three MC's so far, he will be our fourth. It has been proven that costing more does not mean you will be getting better service...this last one at double the cost was our worse yet.

I would report your present Management Company to the DPR in Florida. When I was on the board I had a very difficult time finding a new management company and in fact some didn't even return my calls. If you are in North or Central Florida I can recommend an excellent one. If interested email me at [email protected].