doubling of HOA dues without notification

A small contingent of my HOA for our condos in FL met 2 weeks ago and agreed/voted on a new budget that requires a doubling of every owner's HOA dues come January 2008. There was only a sign posted out in the front of the development notifying the residents of the meeting. I never saw it. The letters were mailed regarding the new increase 3 weeks prior to the due date. Although December is the month in which these changes are to be made and budgets approved, is there any requirement on the part of the HOA to notify the owners of a dramatic increase earlier than 3 weeks? Thanks in advance

There apparently was a budget proposed and voted on by the board. We are in transition of moving from the developer management to the homeowners having more reprensentation as we are now almost fully in control of the board since most of the units are privately owned now.

I was told by the property management company that this new budget resulted in the dues increase. I am sorry but I don't know all the particulars of how this was achieved because I was not aware of this meeting. The dues are based upon the budget which is reviewed annually in Dec. My question reallly is just basically how much notification should be given to the homeowners before an increase of this magnitude becomes effective. It just appears to me that 3 weeks is rather short notice and leaves little time to budget for this increase.

Thanks Robert. There were some owners present at the meeting along with the board of directors and our one homeowner "member" of the board that we elected last summer (who has now resigned due to the stress). However I wasn't given much information when asked about who was there and what all transpired except that they were well within their rights to do what they did. They did admit that the notice was indeed very short.

There is another HOA meeting on Dec. 20th for which we received letters of notification and I was told all my questions would be answered. Sorry I without much data but this is all I know. Thanks again.

StephanieH1: From your posts, it appears your association is in transition from Developer control to Resident control. The prior meeting you speak of may have been under the Developer control and it was unfortunate you could not attend to learn firsthand of the financial situation which will take place.

It is usual for assessments to be raised once transition occurs, since the developer normally 'lowballs' the assessment fee to prospective buyers. The new resident board then reviews the operating costs to learn if an increase must be levied to make it all 'come out in the black'.

Another fact is the management company. It would appear your association has retained the same management company the developer used, and they may have increased their fees now that they will be managing a 'resident controlled' association. All this adds up in dollars and cents, and it is best for you to review the two budgets--the one the developer used and the new one which shows the increase in fees. Compare each line item to learn where the increases have occurred.

Review your official documents for whether the residents approve a 'Proposed Budget' or whether the Board has sole authority to approve.

Re your concern over the notice given for the new increase, your documents should state how much notice is to be given for the annual meeting at which time the budget (proposed or Board-passed) is presented and any elections held.

Transition time is difficult for all. It is a time when one if faced with actually what and where they bought into, when one is learning about living in a self-governed 'neighborhood'. It can all work out, just give it time, and
get involved!

StephanieH1 - Forgive me if I'm overlooking something in your posts. First, look to your governing documents for the amount the Board can increase maintenance without an owner vote. Second, ask for an itemized budget for 2006/2007 and 2007/2008 to see and compare where your money was and will now be allocated. The increase may be necessary and your review of the budget will tell you a great deal. Sounds like the BOD needs to do a little better informing the owners but that can be improved upon over time.

Hi Stephanie,
From your description of how your Board handled the notification of the proposed budget, it sounds like they did everythibg according to Statutes---barely. They could have posted the notice either larger or in more locations, but they are not required to do more than they did.

You said that they mailed out the letter reguarding the increase. Was the Budget included on that? That is a requirement. Below are the paragraphs from the Statute. They are required to give a 14 day notice, which they did. Nothing perks up association membership faster that any dues and budget increases but associations have bills that increase so it is a fact of life, that we will pay more.

6) BUDGETS.--

(a) The association shall prepare an annual budget that sets out the annual operating expenses. The budget must reflect the estimated revenues and expenses for that year and the estimated surplus or deficit as of the end of the current year. The budget must set out separately all fees or charges paid for by the association for recreational amenities, whether owned by the association, the developer, or another person. The association shall provide each member with a copy of the annual budget or a written notice that a copy of the budget is available upon request at no charge to the member. The copy must be provided to the member within the time limits set forth in subsection (5).

NOTICE OF MEETINGS.--The bylaws shall provide for giving notice to members of all member meetings, and if they do not do so shall be deemed to provide the following: The association shall give all parcel owners and members actual notice of all membership meetings, which shall be mailed, delivered, or electronically transmitted to the members not less than 14 days prior to the meeting. Evidence of compliance with this 14-day notice shall be made by an affidavit executed by the person providing the notice and filed upon execution among the official records of the association. In addition to mailing, delivering, or electronically transmitting the notice of any meeting, the association may, by reasonable rule, adopt a procedure for conspicuously posting and repeatedly broadcasting the notice and the agenda on a closed-circuit cable television system serving the association.

Thanks Joe. My friend/neighbor who is on the board did tell me that the budget is very good and appropriate but she too is upset over the lack of notice. I think the Dec. 20th meeting should prove to be quite interesting. I do have a copy of the budget now and will review closely.

Hey Donna, thanks for your information-I really appreciate it. The notice regarding the budget meeting was only posted on the property. No mailing or emailing occurred. We did receive the budget in the mail afterwards and the letter regarding the increase the following day. I keep going back to the fact that 3 weeks notice for a doubling of the dues is too short regardless of how appropriate or necessary the new budget is.

Just a question to all,
I supposed I missed something but I thought this action was going to take place Jan 08. If that is the date of the turnover and the board is still the selected Board of the developer with maybe a couple members, then how is all this going to be a Board approved anything? The HOA Board doesn't exist until the transfer. The property management team may or may not convey to the owners, and in no event can they set the Budget? Their dealing, if any, about maybe the figures of the Budget, is all the interest they have, accept to advise the Board.

Suppose on Jan 1, a newly elected board voted in by the owners denied the budget with the increase and want to set their own budget as determined by the elected board. What would stop them? In fact, they could accept any budget they wanted and the next day submit A new budget.

Donna,
You mentioned in your last post that the association will now have the expense of liability insurnace for new Board members that the Developer didn't have.
I have to question this because all the appointed (selected HOA)members of the Developer Board have no vote and serve in an advisory position. Since they have no vote they need no libility insurance, I suspect. Er go, since they have not vote on the interim Board how can they vote on a budget. Another question has to be how many Board member will be seated.
I think it was mentioned only one HOA member was on the interim board and he resigned because of too much stress. Neither can a non owner vote in a HOA meeting, so that looks like there was no HOA members.
Later we hear a certain few Board members got together and voted on a budget. Who elected them? and did they have a HOA Board member meeting and was a Quorum present? If no record is kept, it is no meeting. For some board member to say to this poster that the budget figures look ok and not offer the budget for scrunity or a detailed explanation opens a lot of doors. I bet you are just like me Donna, if a Board member says the budget is ok, the first thing that comes to mind is, "Can I have a copy, I need one>"

Stephanie: There is your answer from DonnaS. The Board has the authority to approve the budget in your state of Florida.

It's important to attend any and all meetings to stay current on what is going on. If there was any discussion on the increased budget at that meeting, it would have been the appropriate time to voice your concern and questions.
But, you will have the opportunity on 12/20 so have your questions ready!!!
Good Luck!

Damn,
I hate to be one the outside looking in about all of this.
I really don't think that the posting up a sign is adequate for all HOAS.
With e-mail as common as it is it is much more likely that a owner would read an e-mail than they would a sign. I understand that maybe it is written that a sign is required, but I believe if my association did not make a reasonable effort to notify all owners personally by e-mail or letter, I would be on the "Let's change that express." It is not against the law to do things better.

Our POA Island Directors publish the dates of the meetings of the next year each annual meeting, follow that with changes and also personal e-mails with agendas, prior to meeting. This is all regular meetings and annual meetings are e-mailed, posted on Web sites. Special projects like modifing CC&R's are even more detailed as to why and wherefore. Our Condo association don't even provide for regular board meetings to be open.......go figure.

It sure does matter if the people giving the notice of the meeting have no authority to call a meeting. If the turn=over has not occurred, there is no Board and there is no Property Management under control of a Board that don't exist. If no one has a record of anyone voting this group of Owners to the Board, as you suggest in your first para last post, at least you are not clear, doesn't that cast a shadow on the entire postings?

I don't know, help me out here.

Susan,
I appreciate your comments, and agree up to a point, but I'm in the dark here. In Florida, apparnetky there is no motion made to approve the budget because the Budget is approved by the Board. I am sure SonnaS is probably right on her position. If the Board approves the budget, which they do in Florida, then is the Budget on the agenda for the annual meeting.
In my documents (SC) it states the budget will de discussed at the annual meeting by the members. I believe, at least in our case, the budget is not approved until the close of the annual meeting. If the required discussion is held by the members, then there has to be agreement between the Board and the members, if no agreement is reached it has to be carried over as old business. I suppose in Florida's case, the board does not have to open a discussion about the budget, in fact, they don't even have to bring the subject up, because the Board has already approved the budget......done deal. So the president gets up and says, here is the Budget, your bills are in the mail
Does your association work that way?

I think this thread needs a lot more information.

Donna,
Not my intent to question or critize how anyone operates, but in the process of our discussion here, it is becoming clear there is something that we are not considering. You run a large HOA and our HOA here is large and they both have a lot of checks and balances to keep things straight. It is obvious there are lots of people involved, and it wouldn't work at all if the budget was thrown out to the masses to pick apart.

But Donna, consider for a moment those thousands of small HOA that don't have the pool of talent the large ones have. They MAY need all the input they can get, especially in the budget areas and a lot of other ways also.
In my condo (65) units and with 85% absentee owners, I would not like to find that the budget is made up by the manager, rubber stamped by the Board in a teleconference meeting and laid on the members at the annual meeting. I can see, after this discussion a problem emerging that could lead to problems.

Give me your thoughts on that my friend.

Robert, you said

"and it wouldn't work at all if the budget was thrown out to the masses to pick apart."

That's the best sentence I've seen in a long time. It is NOT goverance by the masses and at some point, the membership has to accept - and ensure - that the best and brightest are governing the organization. (If not, there are ways to change that)

Every board (IMHO) should have a Finance Committee, comprised of Board and non Board people who ARE going thru each line item and picking things apart. Then making a recommendation to whomever approves the budget.

Budgets CAN be amended and, of course, emergencies and hurricanes are good reason for that.

Susan,
I don't know about the best and brightest governing the organization, but on the other hand you may be spot on. Maybe that is why HOA's have so much trouble, maybe we need to balance this out a little and add a representative or two from the dumbest and dullest. That would open the field for me.
Seriously, it is a hell of a job, and developing the mind set needed to live comfortable with the CC&R's is no snap either. It is just a shame that the rule of the best and brighest serving on the Board has totally or partially passed my association more than once. They only thing I am sure about is, "I'm okay," but I got my doubts about all the rest of you.

Hey Robert,
In an ideal world, everyone who has to pay these dues would be interested in sitting down for an explaination of their Budget. HA! What world is that?
We give our residents THREE (3) opportunities to be part of the process. The daytime show of members is usually 1 or 2. The nighttime show of members, usually 2 or 3 for the workshops.

Don't forget, in Florida, the membership is required by State Statutes to have a copy of the budget, 14 days prior to the meeting where it will be passed or rejected. 14 days!!!! Before that, they have had 6 weeks of workshops. 6 weeks!!!.
Now, what other means should or could we take to let them be part of the process? I guess hogtie and guns might do the trick but I hear that is against the law.
Because I am a budget person, I get really mean and ugly when anyone of us gets questioned about stupid stuff like "How come the dues went up" ARRRGGGGG!!!