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N Cal Attorney
N Cal Attorney, Lawyer
Category: Real Estate Law
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Experience:  Since 1983
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Here is my inquiry. We live in a gated 55+ community with

Customer Question

Here is my inquiry. We live in a gated 55+ community with approximately 725 homes. We believe 75% are single family structures and the remaining 25% are town homes with 2 homes per structure. The community is still under the control of the original buider and developer - Benderson Development Co.
Shortly after we moved here in April, 2015 we found out the HOA has ZERO Reserve Fund. Living in SW Florida where hurricanes have been known to visit from time to time, a reserve fund is pretty critical.
The community tried to get a reserve fund established and we were told that to get anything changed in the original HOA agreement there must be 100% of all OWNERS must vote. Not 100% of all voters but 100% of all owners. Considering this is a large snow bird community, my guess is 25%-40% of the owners are absentee owners strictly renting out their home to snow birds. Those owners probably don't care about a reserve fund as they will just increase the rent they charge to cover shortfalls.
I've been told that most states have HOA statutes and I am trying to find out what the Florida statutes say for percentage of owners voting to change original agreements.
I hope this isn't too confusing. If so please ask any question and I'll do my best to provide an answer.
Submitted: 1 month ago.
Category: Real Estate Law
Expert:  N Cal Attorney replied 1 month ago.

Thank you for your question.

I do not know what your bylaws say, but the statute says:

720.315 Passage of special assessments.—Before turnover, the board of directors controlled by the developer may not levy a special assessment unless a majority of the parcel owners other than the developer has approved the special assessment by a majority vote at a duly called special meeting of the membership at which a quorum is present.

from

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html

You can get a free consultation from some of the HOA attorneys listed by location here.

Please follow up on this with a local attorney.

I hope this information is helpful.

Expert:  N Cal Attorney replied 1 month ago.

720.303:

///

(6) ///

(c)1. If the budget of the association does not provide for reserve accounts pursuant to paragraph (d) and the association is responsible for the repair and maintenance of capital improvements that may result in a special assessment if reserves are not provided, each financial report for the preceding fiscal year required by subsection (7) must contain the following statement in conspicuous type:

THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6), FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.

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