Investor · Jacksonville Beach, FL | NYC | Tamarindo Costa Rica · Member since 2014 · 182 posts · 130 votes
My husband and I own a rental unit in a condo building in Jacksonville, FL. It is currently rented, and we are bullish on the building and plan to keep the unit in our portfolio.
The problem is the Board. Owners were charged an assessment (several thousand dollars) in 2023 to put into reserves, as per the new rules after the Surfside collapse. Board collected those funds and put them in Operating instead of Reserves. This allows the Board to spend the funds on anything, and if they do, the owners would need to restock the reserves!
The Board already spends funds on things owners disagree on, such as expensive vendor contracts where a Board member gets a referral fee or is part of the contract.
So far, Board hasn’t spent the funds from 2023, but they also didn’t move funds back to Reserves after it was pointed out at the annual meeting that the funds are in the wrong place.
The building's Property Manager is sympathetic to the owners at large, but says they can’t do anything until instructed by the Board, and they indicated the building’s lawyers would only respond to Board members.
Is there an ombudsman or some central HOA agency that can help non-Board owners? Any other ideas on how to ensure our funds are protected?
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
1y
Here you go:
"In Florida, you can file a complaint against an HOA with the Division of Florida Condominiums. How to file a complaint:
Fill out a Condominium/Cooperative Complaint Form. You can request a hardcopy by calling (800) 226-9101 or (850) 488-1122.
Include all allegations and supporting evidence, such as photos and timelines.
Mail the form to:
Department of Business and Professional Regulation
Division of Florida Condominiums, Timeshares and Mobile Homes
2601 Blair Stone Road
Tallahassee, Florida 32399
You can also fax the form to (850) 488-7149.
What happens next?
The Division will contact you within 30 days to report on their review.
The Division will let you know if they have the authority to investigate and if they need more information.
Before filing a complaint
You can try communicating directly with the HOA board or manager.
You can review your HOA's governing documents, also known as the CC&Rs, to understand the proper procedures.
You can consider mediation or arbitration if you can't come to an agreement with the HOA." (End)
Unfortunately, HOAs are often ran by individuals who are not the most knowledgeable on regulations, accounting practices, and more - and property managers do not want to intervene for fear of losing the contract. A Board cannot assess 'reserves' and then not account for it as such.