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Richard White: Boards cannot guarantee fees will not increase
Q. We live in a resident-owned mobile home park. For two years we have been fighting high rent increases. Our new cooperative board refuses to lower the rent because past cooperative boards did not turn over the past records. The past board guaranteed the shareholders that there would not be a rent increase for 10 years. What can be done to force this board to lower the rent? — A.P., Largo
A. Boards have little control on the economy that can force increases each year in budgets and operational expenses. It is physically and fiscally impossible for a board to guarantee that fees, you call rent, will not increase. If you believe a candidate with a campaign promise that he/she will not increase the fees, you are being unrealistic. Inflation is a fact of life with today’s world and federal fiscal policies. Your board has a fiduciary duty to maintain the common areas and the community. As components break and property depreciates, it forces higher repairs and replacement costs. As for past records, your current board should send certified letters to the past directors demanding that the records be turned over immediately. Warn them that the records are the property of the cooperative and that their removal of the records could be considered a criminal discharge of duty.
Q. Our board has put a lien on a unit, and the foreclosed settlement date is within three weeks. The unit owner, who has failed to pay assessments and maintenance charges, has a reverse mortgage and if debt is not settled eviction procedures must be carried out. The resident is an 85-year-old woman whose relatives received the mortgage proceeds but have not fulfilled the obligations of the unit. What is the association’s duty and what are the legal ramifications? — R.K., Aventura
A. The association’s attorney should be able to provide the answer to your question since he/she is providing the legal advice. One thing is certain — the board is taking the right action to foreclose on the delinquent account. The reverse mortgage company should be notified of the foreclosure action. I also hope that the relatives are aware of the pending eviction. It really brings up a question why the mortgage company is sending funds to the relatives and not the lady? This is a sad situation when the lady is going to lose everything and be on the street for neglect and greed of the relatives.
Q. We have a maintenance issue. We reside in an adult community with almost 300 units. We have a management company to look after our maintenance and financial issues. We provide an office, and the management company provided the computer, fax, copier and other office equipment. The problem that we have, however, is that every time there is a malfunction of this equipment we get billed for the repair job. I have read over our contract many times and all it stipulates is that they will supply the computer equipment. There is nothing in the contract that deals with maintenance. In your opinion, should we be liable for repair costs, or should it be the responsibility of our management company? Breakdowns are numerous. As the president, I would appreciate any comments you may have to offer in this regard. — L.P., Clearwater
A. As the president, you need to challenge the management company why they are billing the association when their contract does not reflect such charges. While these charges may be proper, they need to first be justified since they are not listed in the contract. I would suggest that you send a letter to the management company disputing the charges and ask that they justify the costs. You can suggest that they meet with you to talk concerning these charges.
Q. Our association has a president who has attempted to hijack our community. Our property manager suggested to the board, and a motion was made and passed that stated that owners not be allowed to speak until after the meeting is over, and their comments and questions be limited to three minutes total. Our president uses a chess timer to ensure compliance. At the last meeting, the meeting was over and the owners had waited for three hours to have their concerns addressed and were ready to speak. The property manager and a board member stood up and attempted to leave, claiming their back was hurting them. Can the board restrict owners speech until after all agenda items have been discussed and voted on, limit the time allotted for the owners to speak, and not remain present when the time comes to address owner concerns? — M.O., Miami
A. The following section is copied out of the HOA act but the condominium act, FS 718.112(1)c), has similar wording: The HOA Act, FS 720.303(2) (b) says “Members have the right to attend all meetings of the board and to speak on any matter placed on the agenda by petition of the voting interests for at least 3 minutes. The association (board) may adopt written reasonable rules expanding the right of members to speak and governing the frequency, duration and other manner of member statements, which rules must be consistent with this paragraph and may include a sign-up sheet for members wishing to speak.” This means that the board’s policy to allow owners to address at the end of the meeting is unreasonable and not consistent with the statutes. The manager is wrong if he/she is advising the board not to allow members to talk on agenda items at the time the agenda item is discussed by the board. The board needs to address this problem and establish reasonable meeting policies.
Richard White is a licensed community association manager in Florida. Questions should be mailed to him at 6039 Cypress Gardens Blvd. # 201, Winter Haven, Fl. 33884-4415; e-mail CAMquestion@cfl.rr.com. To be considered, questions and comments should include the author’s name and city. Questions should be about association operations, not legal matters.







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