DonovanS (Florida)
Posts: 1
Posts: 1
Posted:
A Condominium that i run has not turned over from Developer control and the developer is still guaranteeing the budget. My understanding of the Law in regards to Capital Contributions is that they are "Start-Up" funds for the association and that they can only be used so long as the Developer is no longer guaranteeing the budget or unless otherwise specified in the governing documents. The management company spent capital contribution funds, 1. without board approval and 2. during the guarantee period. The funds were spent on FPL (Electricity) deposits and before that were spent on operating deficits.
If the governing documents are silent, i assume that the law would be the guiding point. Did the management company do something that was illegall by spending this money before the guarantee period was up and without Board approval beforehand?
Thank you,
If the governing documents are silent, i assume that the law would be the guiding point. Did the management company do something that was illegall by spending this money before the guarantee period was up and without Board approval beforehand?
Thank you,