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Entry Door Compliance Hinges On Association's Documents

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By RICHARD WHITE, Tribune correspondent

Published: February 16, 2008

Our condominium has uniform steel entry doors into each unit. The association has assumed the responsibility (by amendment) of maintaining and painting the exterior of these doors.

Recently, one of our residents has replaced this steel door with a nonuniform wooden door. He did not seek association approval. We would like to maintain the uniformity of our doors and feel his replacement door alters the appearance of the common property.

What is your advice on how to proceed?

C.R.

Clearwater

Your first step is to read your documents to see who is required to maintain the doors. Not all associations have the same responsibility when it comes to windows and doors.

Then determine whether the amendment was legal. Was it a policy change or a properly approved rule change, and was it recorded? You also need to find out from your documents whether owners are required to submit exterior changes before making any alterations.

You need to send a first letter to the owner with the facts and ask him to restore the steel door. Give him a week or 10 days to answer or comply with the documents.

After the time period, if he has not changed the door or answered, send a second letter warning him that the association will seek legal assistance to force compliance. Give him a week or 10 days to answer.

If he does not comply, send a third and final certified letter and then turn the matter over to an attorney to force compliance.

I am a new board member of a small homeowners association. I do not know what limits a board has. When do we need a vote of the homeowners? We are considering installing a gate. Is this a board vote or a members' vote?

M.K.
Jensen Beach
You must read your documents and the statutes to find the duties. Here is a brief guide.
Boards of directors are elected by the members and have a fiduciary duty to the members. They have the duty to maintain the common areas as developed and the responsibility to make repairs.

The responsibility and duty end at the point they make a capital improvement; this means if you make a change or addition to the original common areas. If you are adding a gate where there was no gate, that is a capital improvement and will require the vote of the members. If you are replacing a damaged gate, that is a repair and only needs the board's vote.

The members elected you and the other directors to operate and manage the association. That means that regardless of the cost to restore a component part of the common areas, the board must assume the responsibility to repair or replace the part and assess the members. Most times, the cost of the repairs will be part of the budget but in some cases, a nonbudget component will require a special assessment the board would vote on to approve.

With the project of adding a gate, the vote of the members would more than likely require a special assessment.

At a recent budget meeting in our condominium, we were informed there would be a shortfall in our insurance fund that would require a special assessment.

One of the board members brought up replacing the sign in front of our building. The manager said that we should just increase the special assessment to include the cost of the sign.

It became very apparent that the issue was discussed among board members prior to the meeting. I objected to including this item since it could easily be brought to the attention of all owners in a regular meeting and voted on, but I was overruled.

A notice was sent out stating we would need a special assessment for insurance with the amounts. There was a side note that any overage would be used for a new sign.

My question is, is it within the board's rights to sneak something like this in a special assessment without giving the cost and voting? Can members of the board meet prior to the official meeting and railroad issues through? What are the remedies owners have for this kind of behavior by the board?

C.H.

St. Petersburg

Boards should have awareness of information to be discussed before the meeting. I do not mean a workshop with a quorum of directors but a nonquorum meeting or written communications with other directors to discuss upcoming agenda items. It makes for better operations and decisions if directors are better informed.

Because the sign was a replacement sign, the board is responsible to make the repairs. To include the cost with the special assessment could be a correct thing to do. However, it should have been better communicated to the members.

Could you please explain what the criteria is for filing federal income tax by a condominium?

P.E.

Seminole

Many owners and directors think the condominium and homeowners associations are nonprofit and tax-free associations. Not true. They are usually formed under the not-for-profit statute that allows the association to make a profit but not to pay dividends to the members.

They must file a tax report (IRS Form 1120) and be taxed the same as a corporation for profit on earnings. An alternate tax form for associations is 1120H.

To determine the best form, consult a certified public accountant who understands common-interest properties' tax reports. You can go to irs.gov and search for "1120H" to find the form.

In brief, associations must file an IRS tax report each year, either 1120 or 1120H.

Can a homeowners association board stipulate that anyone younger than 55 cannot purchase a property in its jurisdiction?

Wouldn't the Federal Fair Housing Act overrule all other regulations?

G.D.

Clearwater

The adult community, also known as 55+, is a restriction on residency, not ownership. Your board cannot restrict ownership because of age, but it can restrict residency.

If your association is restricting ownership because of age, it would be in violation of discrimination laws. Discrimination based on race, color, national origin, religion, sex, family status or disability is illegal by federal law.

A person trying to buy a home in a community who is denied approval because of age can file a fair housing complaint against the association.

An adult community can require that one person live in the home who is 55 and no children younger than 18.

There are lots of examples of young people purchasing a home in an adult community for their parents to live in.

The final answer should come from your association's attorney because some associations have special age restrictions.

Our board does not have good financial skills. Can the members demand that a financial committee be formed to help the board?

M.A.

Largo

Most directors should recognize that they lack skills and engage outside help. Rather than creating a committee, the board should engage a CPA, accountant, bookkeeper, manager or management company.

Have you talked to other members? Why not send a letter to the board that you will volunteer and know other members who will help with the financials.

Sometimes a gentle hint will arouse thoughts and they will welcome help.

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