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Our HOA suffered from foundation problems. A company was…

Customer Question
Our HOA suffered from...

Our HOA suffered from foundation problems. A company was hired to repair and stop the foundation from future failure. We were assessed 50K each for these repairs, plus money to hire an attorney. In the process of repairs, all of the furniture, carpet, and tile was removed from the lower level of each unit Holes were created and piers were installed to stop future settlement. We wer also assessed an additional 47K for repairs that were in our budget, i.e. landscaping, exterior paint, exterior lighting, etc. WE do not receive a monthly financial report, or an update regarding how much money is in our account to handle these normal expenses. The needs for these items has increased but we do not have any report regarding what has been there to begin with. The president has also taken over the remodeling of units that are being rented by out of area owners. Not sure if associations funds are being used for these remodels. can association funds be used to repair the interiors of owners units?

Lawyer's Assistant: What steps have you taken so far? Have you prepared or filed any paperwork?

I have asked for estimates on company letterhead, receipts, proof that the quick books account and bank account have been reconciled, receipts and invoices. I have not received any information requested. I was only told that we would be audited this year. I was told there is a "drop box" with financilal information. The information is so small, it is illegible.

Lawyer's Assistant: Where is the property located?

Is it permissable for a board member to access HOA funds to repair the interiors of absentee unit owners ? The property is in Florida and only has 7 units all of the same size.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

There is no transparency evident in my dealings with the president. We are self-managed.

Submitted: 3 months ago.Category: Real Estate Law
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Answered in 6 minutes by:
3/29/2018
Real Estate Lawyer: Law Educator, Esq., Lawyer replied 3 months ago
Law Educator, Esq.
Category: Real Estate Law
Satisfied Customers: 125,855
Experience: Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
Verified

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Under the public records law, an owner must be given access to inspect all financial records of the HOA, if they are refusing to provide legible records for you to review, then this is grounds to file suit against the HOA for not following the law.

Unless the bylaw state that the HOA can use its funds to upgrade the vacant units, they cannot do so and would have to charge the owners of those units.

Again, as an owner, if there was a contract to perform work on the units by the HOA and an assessment charged, the owners have a right to see how that assessment was charged and have a right to inspect those documents.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

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Customer reply replied 3 months ago
Thank you but, what would allow the president to access HOA funds for these repairs?
Real Estate Lawyer: Law Educator, Esq., Lawyer replied 3 months ago

Thank you for your reply.

The President as chief operating officer has inherent power to manage the association and daily affairs. If the construction crews are present and rather than incur larger expenses, the president can access the funds appropriated to make the repairs and then it is the HOA duty to pursue any owners who have not made proper payments to the HOA.

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