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Insurance Should Be Regular Budget Item

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By RICHARD WHITE

Tribune correspondent

Published: October 12, 2008

I have read in the statutes that reserves are not for regular expenses, but are for special ones like roofs, painting, and paving. Would a reserve fund be valid for insurance?

P.W.

Fort Lauderdale

Because insurance is an annual expense, it should be in the regular expense budget and not in the reserves. Reserves are usually for expenses that will occur in the future but are not anticipated every year.

However, you could include an insurance reserve line item to pay for deductibles that would only be needed in event of a claim or loss in future years.

We live in a 55-and-older community. Two years ago, the homeowners association members voted to purchase an automated external defibrillator. Members were trained and government medical guidelines followed as required. Recently, the board voted to have the AED removed because it felt the unit was a liability.

It is a life-saving measure that has been taken from us. We are wondering what our next move should be?

D.W.
Haines City
Once you have an AED, the removal of it is what could be considered a liability. Under a new state law, SB 564, that became effective July 1, communities are encouraged to procure an AED and training in its use. The law also encourages notifying local emergency medical services of the location of the device, and assuring properly trained people that they may obtain immunity from civil liability if harm results from use of the AED.

I am living in a community governed by a homeowner association. For the past two to three years, some homes have developed eyesore violations. The management company has sent letter after letter, but it has not fined the offenders or solved the problems.

Can the residents do something to make the board and the management company enforce the rules? Can the residents take legal action against the board and management company?

C.R.
Doral
To fine a homeowner for a rule violation, the board must follow strict requirements listed in the statutes, and the association documents must spell out the right to fine. Because of the complexities, I do not recommend residents sue the board or management company, but turn over the matter to the association attorney.

Yes, members can sue, but it's like suing yourself, and you will be responsible for legal costs. In the past, I've recommended writing the board a letter about your concerns, but I recently came up with a different approach. That is to become involved in the solution and volunteer to work with the board. If you are as concerned as your question indicates, maybe it's time for you to work with the association to solve the problems. There comes a time when you need to do something for your community. This is probably that time.

Richard White is a licensed community association manager. He does not offer legal opinions; any other questions and comments concerning association operations can be sent to Richard White, 6039 Cypress Gardens Blvd., No. 201, Winter Haven FL 33884-4115;

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