HOA Reserves Florida

I'm a board member in a Florida HOA.

Last year, 2008, our members voted to remove Reserves and apply them to the 2009 quarterly maintainance payments. This way each quarterly maintainance payments would be reduced. At the time of the vote, (ballot) it was shown what the maintainance payments would be with and without a "Yes" vote in favor of using the Reserves.

Rather than removing the money, the Tresaurer deducted a pro rated amount, each month from what was suppossed to be put into the 2009 Reserves. In other words, he defunded the 2009 Reserves by what was authorized by the membership on a prorata basis. This was done each month in 2009.

We are now in September 2009 and all the quarterly maintainance payments have been collected. I was just informed yesterday that he unilaterally removed an additional sum of money from the Reserves to pay outstanding bills without a membership or board vote. His claim is that the money was never really taken out of the Reserves and that this will be a "Bridge Loan" until we collect more of the 2009 4th quarter installments to pay ourselves back. My contention is that in fact it was unauthorized removal of Reserve funds as each month the 2009 Reserves were defunded.

My questions; 1) Do you think that I as a board member have an obligation to reprot this to the DBPR in Florida?

2) If not what is my obligation, if any?

3) What if any remedy exists that we can seek to resolve this matter?

4) Can I get in trouble for this if I do not report it?

Thanks,

Mike

Peter,

Thanks for your reply. I have read it and know exactly which section discusses the requirement of a membership vote to access Reserves for other purposes. I've advised the board and included a copy of the section. It's being ignored!

Mike

Mile,

Every time I hear the word "unilateral" I cringe. No board member should act alone though many try. I would advise the board that messing with reserve funds is a serious business and if they don't follow the law they will most certainly be reported. Florida has strict laws regarding reserve funds for hoas over a certain number of owners. We all know most owners pay little attention to hoa matters until if affects their pocketbook and it is up to you to represent them.

Reserve funds are exactly that, for capital improvements, etc and not for day to day operating expenses and cannot be used for anything else without a vote of all members.

In addition I would notify all owners by fliers or whatever and let them know what "their" treasurer is doing.

How can you get in trouble by doing what is right?