Now that condominiums are going to have to pass huge special assessments in order to make repairs and maintain new accounts with potentially millions of dollars in the bank, let me tell you one of the reasons I heard as to why these new laws should not go into effect. “Because we don’t trust our Board having access to all of these funds…….no doubt they will steal some of it.”
I heard this on the radio show and I heard this at our seminars. Like I always said……..is it possible for Board members to steal funds? Of course it is. It’s also possible for doctors to steal, lawyers to steal and for cops to be on the take. Every profession, including that of being a board member has its thieves. However, when you think about the number of condominiums and the number of times you’ve heard about board members getting caught stealing, it’s really a very minute percentage of directors with their hands in the cookie jar.
Now, let’s say you live in one of those condominiums where the bad guys did take the condominium’s money. According to the law, you’re covered. Don’t worry about it.
FS718.111(11) (h) The association shall maintain insurance or fidelity bonding of all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. As used in this paragraph, the term “persons who control or disburse funds of the association” includes, but is not limited to, those individuals authorized to sign checks on behalf of the association, and the president, secretary, and treasurer of the association. The association shall bear the cost of any such bonding.
Now here is where your association needs to get busy. It is imperative that the Board and the management company contact the insurance agent for the association and let the agent know about the dramatic rise in the “maximum funds that will be in the custody of the association or its management company at any one time” as special assessments are passed and reserve accounts are funded.
So technically, no need to worry about some Board member heading off to Tahiti with the association’s funds, because even if they did, the association gets it back through their insurance policy.
Don’t worry members who live in an HOA. There is an exact same statute that applies to you. 720.303(5).