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Contact Board For Look At Big Picture On Finances

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By RICHARD WHITE, Tribune correspondent

Published: January 12, 2008

Our management company has never issued a financial statement of its expenses for our condominium association. How do we request one?

Another problem is that the management company took out a loan to pay the increased cost of insurance. Normally if you pay off a loan early, the interest is credited back. We asked the management company for a refund of the interest for our early payment. Is this legal?

B.L.
Palm Harbor
The management company is not responsible for the financial report, but it may have the duty to produce them. Your board of directors is responsible. Send a letter to the board and ask for copies of the financial report. It must supply the copies but can charge a copy cost. Do not talk or call; write a letter, preferably a certified letter.

No management company can borrow funds for the association. Again, your board of directors would be responsible.

As to refunds, the statutes require that all owners are responsible for their share and the board of directors does not have the power to discount or refund a unit's share.

A couple of months ago, our directors terminated our manager. They are supposed to be looking for a new management company but are dragging their feet. In the meantime, the board decided it should pay the president for managing the property and the vice president for doing the accounting. Is this legal? Neither one has a CAM license.

R.A.

Hollywood

If your association is more than 50 units in size or has a budget of more than $100,000, it is in violation of FS 468. Any person who performs management services and receives compensation must be licensed.

If the association or the unlicensed manager is reported to the state, they can both be fined.

I would suggest that you send a letter to the board and ask it to contact the association's attorney about the violation. In addition, it should check FS 468.432 to enforce the problem.

I have a four-page article I wrote on management that is available if you send a stamped (one stamp), self-addressed envelope to Richard White, 6039 Cypress Gardens Blvd., No. 201, Winter Haven FL 33884-4115. Mark on the outer envelope "Management."

Our condominium has more than 170 units. Does the law require that we have a licensed property manager, or can anyone manage the property?

R.N.

Naples

Anyone can manage the condominium as long as he or she is not paid or compensated.

FS 468 says that a person who performs management services for compensation must be licensed.

There are two exceptions, and they are an association of 50 units or less and/or which does not have a budget more than $100,000.

Also, the Administrative Code 61B-55.002 says: A person shall not manage or hold himself out to the public as being able to manage a community association in this state unless he is licensed by the department in accordance with the provisions of this part. Should a person be hired to perform management services and not be licensed, both the association and the unlicensed manager can be fined.

Some boards have tried to engage people to do management tasks and called them by another title, such as secretary or supervisor. Just changing a name will not exempt or protect from laws.

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