Exorbitant Expenses and No Invoices

Hi there,
Our HOA in FL has a somewhat strange legal agreement from twenty years ago with a condominium next door, that obligates the HOA to pay for the majority of the expenses for the condominium's pool and clubhouse, but give the condominium sole final say on what the expenses should be. The problem is that the condominium will not provide us with any details as to the expenses, invoices etc. for the pool and continues to bill us an obscene amount every month for these expenses. It's sort of a like a mafia-type payment, and it is killing our HOA financially. We have asked for financials, invoices etc., since by law we are entitled to this information, but have been refused. Apparently, the pool is not even being maintained as it has been shut down by the Board of Health. Other than the obvious route of a lawsuit, does anybody have any idea how else we can deal with this? Are there state organizations or authorities we can contact to help us? Is a lawsuit the only viable option.

Thanks.

Thanks for the response. Yes, we have the agreement and yes we can use the pool.

The agreement doesn't specifically state anything as to what the responsibility of the condo is for maintenance or what the costs should be. It just says that we have to pay them for the pool and can consult on the costs, though the condo has the right to the final say of the costs. It is surely a strange agreement that was apparently written by a developer to benefit the condos and himself at a time when our HOA didn't exist, and the developer wanted to construct on the condo property.

I guess in theory the condo can do whatever they please in terms of maintenance since there is nothing in the contract about this, but I find it completely absurd that there is no law which regulates what someone can charge. This is like some stranger mailing you an invoice every month for $10K, with no explanation of services provided and being forced to pay it. I was under the impression that there was a "good faith" presumption in every contract, which prevented abuses due to overcharging etc.

I forgot to add, my Master Gardener Board will not pay any expenses without reciepts (invoices). Not even 2 dollars so thousands of dollars without an invoice? Crazy!

"The lawyers advised us that we must continue to pay these expenses or else the condo will sue us and then the court will look unfavorably on the HOA if we try to go to court to cancel the contract."

Sounds to me like this lawyer works for the condo. It is just plain bad advice. Get a lawyer and have him send a letter to the condo Board, telling them that until invoices are provided, the HOA Board finds the condo in breach of their contract responsibilities and that your Board is demanding an audit of previous years pool expenses. Don't go soft on this.

Oh yeah, then there is "the condo will sue us and then the court will look unfavorably on the HOA if we try to go to court to cancel the contract. WHAT ???? Now it is against the law to cancel a contract??? The worst that can happen, you will lose your privledges to swim in the green pool.

Okay,
Now you have filled in the blanks and I guess that what you need to do is file suit against the condo. Lawyers have it covered from what you have written. So, what is the holdup? It might be much cheaper than to contine paying for an useable pool.

New year's Eve at a very expensive restaurant in Palm Beach. Dinner at 8, dress code followed to be allowed for entrance. At least HALF of the diners were in shorts, jeans and flip flops. Welcome to Florida.

Is the AMOUNT stated in the contract?

Where and how was the amount decided upon.

I can't believe that a contract does not state exactly what your HOA gets in return for the stipend it pays this condo group.

Get the contract out of mothballs and re-write it or cancel it.

PS any old timers around that could shed light on this arrangement?

Get out of the contract by any means available. I see the money hose in their hands and you are the water (free money)

Sam,

Why can't the assn access any money for the lawsuit? IMO, the BOD needs to have this lawsuit started ASAP!!