Article
Courtesy of the Sun Sentinel
By
Joe Kollin
Posted April 26, 2006
Homeowner
associations that lack reserve funds would have to establish them, if a
majority of residents approve, under legislative bills that appear to be
on their way to becoming law.
Many Broward and Palm Beach county communities last year regretted not
having reserves after Hurricane Wilma. The damage left behind forced
boards to impose huge special assessments for cleaning up debris and
replacing landscaping.
Under current law, homeowner associations do not need reserves unless they are required in their bylaws. In condo associations, reserve funds are required unless owners vote to waive them.
At least three bills [SB 957, HB 839 and HB 391] allow homeowners groups
to establish reserve funds if a majority of owners vote to do so. The
bills also require associations without reserves to notify owners of
their right to request the vote. And they spell out the procedures for
voting and dealing with the money.
Donna Berger, executive director of the Community Association Leadership
Lobby, said she supports the proposals because they allow homeowners to
make their own decisions. Associations with buildings, such as
clubhouses, can opt for reserves while those with no commonly owned
buildings can skip them. "People must ask for it," she said.
"In condos it is passive because you're stuck with a reserve unless
you opt out."
Jan Bergemann, president of the grassroots Cyber Citizens for Justice,
said he would have preferred homeowners to follow the condo model of
waiving reserves. But he likes that for the first time, homeowner
associations would have guidelines for reserves.
"Anything that gives guidelines is good because without them,
anyone can do what they want," he said.
The state Legislature's annual 60-day session ends May 5 and only a few
of the dozens of condo and homeowner association proposals being
considered are likely to be sent to Gov. Jeb Bush.
Among those failing to make headway, for the second consecutive year,
was a proposal [SB 586] to prohibit boards from bringing liens against
condo owners for unpaid assessments of less than $2,500.
Also looking dead for this year is a bill [HB 1227] that would require
the state to investigate complaints of abuse by boards; limit board
members to four-year terms; require buildings be inspected every five
years for safety; and force boards to put items on their meeting agendas
when 20 percent of owners request it.
Berger supports what the Legislature is doing because she doesn't want
any new laws that would discourage residents from volunteering to serve
on boards.
But Bergemann was upset.
"The powers that be in Tallahassee at the moment obviously aren't
interested in protecting condo and homeowner associations owners despite
the problems we've seen," he said.
|