An HOA here in South Florida recently fought the State Attorney’s Office tooth and nail when they attempted to obtain copies of the association’s official records. There’s no doubt that as a result of that one HOA, the following law was passed:
HB 1203
Florida Statute 720.303
(i) If an association receives a subpoena for records from a law enforcement agency, the association must provide a copy of such records or otherwise make the records available for inspection and copying to a law enforcement agency within 5 business days after receipt of the subpoena, unless otherwise specified by the law enforcement agency or subpoena. An association must assist a law enforcement agency in its investigation to the extent permissible by law.
A CHANGE TO THE FINANCIAL REPORTING REQUIREMENTS
The budget of an HOA is considerably less that a condominium because HOAs typically do not insure the homes and their roofs against wind damage. Therefore, HOAs typically don’t have a budget that exceeds $500,00.00 annually and therefore, HOAs do not have to prepare a year-end audit.
That changes from now on. The new law states:
- An association with at least 1,000 parcels must prepare audited financial statements, notwithstanding the association’s total annual revenues.
This certainly lets the owners get a better idea as to how their money is being spent.
A SWITCH I DIDN’T SEE COMING…..MANDATORY BOARD MEMBERSHIP
In perhaps the biggest surprise of the legislative session, I never thought that the law would change and now require that every owner, whether in a condo or an HOA, must begin serving on the board for at least a three year period, once they have lived in the condominium or HOA for two years. That’s right, even though you never expected or wanted to serve on the Board of Directors, now you have no choice. The Florida Legislature wants everyone to have a chance and more importantly they want everyone to see just how hard it is to be a board member. You certainly may have to rearrange your schedule to accommodate board meetings and meetings with management and other owners. It may also take some time away from being with your family. Don’t forget to take your blood pressure medicine because there’s no doubt your anxiety is about to go way up. If you would rather not be on the Board because it’s simply too hard, take a deep breath……..April Fools.
Good one ! I think there are enough fools in this HOA the entire month of April !
It should be noted that the legislature in it’s eternal wisdom drastically increased the budgetary threshold for audits a few years ago, so now even with the new law way LESS HOAs have to do audits than a few years ago.
Audits are useful because they force the board to have a professional level book keeping. But even with audits smart BOD members and managers will know how to fill their pockets.
Till the last line i did not realize that it was an fool’s day joke. With the foolishness which comes from Tallahassee year around I consider anything possible.