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State Law Obligates Directors To Respond To Owner's Request

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By RICHARD WHITE, Tribune correspondent

Published: December 15, 2007

Updated: 12/14/2007 06:55 pm

I live in a small town home association. There has not been an annual meeting for more than a year. I searched the state Internet site and found our 2007 not-for-profit corporation annual report was filed with the secretary of state in March.

Our documents say there is to be an annual meeting. A neighbor said he was told by a director that they would not have a meeting this year. I have not heard anything from our directors.

I want to get a complete copy of our financial report, bank account statements and contracts we have for services. I have requested a financial report before and the president refused to give me one; the request was sent by certified mail. I have been waiting for five months, and I believe the Florida statues say it must be within 60 days.

What are the rules, and what can I do?

C.A.
Fort Lauderdale
A serious problem found in a few associations occurs when inexperienced directors try to operate and manage associations. Even more serious is that many owners don't care or do not have any business experience and do not have an understanding of operations or read financial reports.

I direct you to Florida statute 720.303 under records inspection. It says the association (the board of directors) must respond within 10 days. It continues that a member who is denied access is entitled to damages. The minimum damage is $50 per day up to 10 days.

I would send a second certified letter to the board of directors notifying it of the requirements in the statutes and the possible fine. If you do not receive communications back, engage an lawyer.

Our condominium building has been pounded by special assessments for the past couple of years for one reason or another. So far, all the owners have complied without major complaints.

However, this time we had not completed paying one of those assessments when the board announced yet another major one. This time the new project refers to the painting of the building.

Even though the owners agree the building needs painting, a large number of us feel this project can be postponed a year.

A petition has been written, asking the owners whether they would agree on such postponement, and the response has been positive. The board has never consulted with the owners about our position on these issues, which relate to large sums. And although we understand that boards are autonomous entities, how much legal freedom do they have to make these decisions?

M.I.

Aventura

There is one gaping hole in your question, and that would be the information about your association reserves. I must then assume that your association did not have any reserved accounts or had less-than-adequate reserves.

You are correct in that the board has the responsibility to maintain common areas and would be negligent if it faltered on this duty.

I once managed a building where past boards neglected the maintenance and did not collect reserves for several years. When I started as manager, the board took an active program to bring the common areas back to the original condition. It took several special assessments and a much higher budget to bring the building back to standard.

Having expressed this experience, I ask whether you really do not want the building painted and maintained, or is it that you just do not want to pay higher fees?

I cannot answer the question for you. I will say that if past boards neglected maintenance, the present board cannot be blamed for working to restore the building.

Richard White is a licensed community association manager. Write to him at 6039 Cypress Gardens Blvd., No. 201, Winter Haven FL 33884-4115; or e-mail camquestion@cfl.rr.com.

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