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KrystaT (Florida)
Posts: 58
Posted:
My new Board is having meetings and making finacial decisions without letting the rest of the homeowners know what's going on. They say they are just friends talking, but after reading the 720 and 617 I know this is not suppose to happen.

Is there a specific statute that talks about members meeting "unofficially" but making official decisions?

The reason I know they are meeting is because they are coming up with a special assessment saying it's mandatory, but no meeting has been held and no vote has been taken. The new pres. said we need the money for a lawsuit he wants to start. I thought all budget issues had to be voted on?
TracieS (Colorado)
Posts: 460
Posted:
WHOOOOAAAA....Slow down...

A mandatory special assessment? BOD meeting in secret? President wanting to file a lawsuit (requiring the special assessment).

I need more info... What's going on down there in Florida???
EllenS1 (Florida)
Posts: 1,148
Posted:
Krysta,

It looks like you need a board who follows their docs. Our hoa needs a meeting of owners voted on by a certain percentage to either impose a special assessment or use of reserve funds. Donna could be a big help here.
PeterB1 (Florida)
Posts: 257
Posted:
Krysta,

You commented: "Is there a specific statute that talks about members meeting "unofficially" but making official decisions? "

That statement in itself causes me a problem. An 'official' decision must have been reached by means of a meeting. If so, there should have been a meeting notice (required by FL 720). If a decision was made, minutes should have been produced and made available.

If these things are not happening, you BOD needs some 'guidance.' Someone (maybe you) should remind them of the provisions of 720.If they are willfully ignoring the legal requirements, then you have a whole different problem.

peter
DonnaS (Tennessee)
Posts: 5,671
Posted:

Krysta,

Someone better grab your Board by the throat and slow them down.

The Statutes are very clear on both of these issues. No Board meeting (unofficial?) can be held without it being open to the members. PERIOD!!

720;303 (2) a) A meeting of the board of directors of an association occurs whenever a quorum of the board gathers to conduct association business. All meetings of the board must be open to all members except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege. The provisions of this subsection shall also apply to the meetings of any committee or other similar body when a final decision will be made regarding the expenditure of association funds .

2. An assessment may not be levied at a board meeting unless the notice of the meeting includes a statement that assessments will be considered and the nature of the assessments. Written notice of any meeting at which special assessments will be considered or at which amendments to rules regarding parcel use will be considered must be mailed, delivered, or electronically transmitted to the members and parcel owners and posted conspicuously on the property or broadcast on closed-circuit cable television not less than 14 days before the meeting.

Now to the matter of the reason for the special assessment. The Pres. wants to start a lawsuit. PLEASE explain that better. The violation of an owner has to be followed according to the Statutes as well. What is going on with this? The Pres. cannot start a lawsuit all by himself but needs to go thru the steps outlined by the Statutes on enforcement, if that is the issue.
KrystaT (Florida)
Posts: 58
Posted:
The board is claiming a homeowner is running a business out of his home. The homeowners states he merely has a hobby of fixing up old cars. That's the lawsuit the president would like to start.

Personally, I don't know how they can prove it's a business when I don't see any business activity going on.

My big issue is how they can approve a special assessment without a homeowner vote, for legal fees on a lawsuit that I feel is shaky at best?

Is there something in the 720 that says special assessments must be approved by the majority of homeowners?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Thanks Krysta for the follow up. The business1 Does your Pres. have proof that will stand up in court? What do your documents say about use of the property? Has the guy with the car repair, as the Pres calls it, been sent a warning letter? Has he been fined? Has he ignored any warinings or fines? These all are issues to solve before any lawsuit.

You will need to go to mediation prior to court so the special assessment is very premature. Do you not have a line item for legal in your budget? A special assessment is waaaay down the road before a suit can be started. Your President is not tuned in on how to govern you association according to the laws.

The special assessment should be addressed in your own documents with limitations and purposes so without knowing what they read, we cannot tell if or if not there can be a special assessment and for what purposes there can be one. Most times, it is the Boards responsibility to allow for a special assessment and set the amount. Sorry!
MicheleD (Kentucky)
Posts: 4,491
Posted:
Krysta:

We had a homeowner attempt the same thing here.

He called it a "hobby," we called it operating an automobile repair business out of his home.

We did contact our Zoning Control Officer, who also visited the home and gave the homeowner a fine.

We used that as additional back up in our pursuit to have him stop.

He ultimately ceased the operation but kept it going right up to the point of our getting ready to file the lawsuit.

Our attorney sent him a draft of the complaint we were going to file.

It's not really all that hard to get "proof."

Pictures are, as they say, worth 1000 words.

And, among other things, we were going to subpoena the people for whom he was fixing their cars, as part of his "hobby."

MichaelK11 (Texas)
Posts: 432
Posted:
Quote:
Posted By KrystaT on 10/15/2009 10:03 AM
Personally, I don't know how they can prove it's a business when I don't see any business activity going on.

My big issue is how they can approve a special assessment without a homeowner vote, for legal fees on a lawsuit that I feel is shaky at best?

Is there something in the 720 that says special assessments must be approved by the majority of homeowners?
Krysta,

I don't know about FL statutes (which you or I could probably look up on the internet), but (as Donna asked) what do your Bylaws and Covenants (CCRs?) say about special assessments? Those are probably more important for answering your question. Can the BoD do this for any amount at its discretion, or do they need some sort of vote for consent from the Membership?

If you don't have copies, you should be able to get them from your BoD (Board of Directors) or from neighbors.

Also, what is your relationship (if any) with BoD and with the homeowner they intend to sue, please? How did you learn about the lawsuit? Did the BoD announce it at a regular meeting that you attended?

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