Published April 2023
Florida Community Association Professionals’ (FCAP) training is offered on two levels. Level one consists of courses meeting Florida’s continuing education requirements for CAMs, and level two is the Florida Advanced CAM Studies (FACS) course. For further information about the more than 38 online continuing education classes available or to pursue the Certified Florida Community Association Manager (CFCAM) designation, please visit www.fcapgroup.com/membership/education-training/.
The condominium association we are working with had some hurricane damage and voted to approve a special assessment to fix the beach walkway. Once they collected the assessments, the invoice for the work that was completed ended up being less than they had proposed. This means we have a surplus of funds from that special assessment. What should we do with those funds? Do we need to refund them to each unit owner, or can we move that balance to another account?
Additionally, with the regular and special assessments added up, we are looking at over $388,000 in the budget this year. Does this amount require us to have an audit completed?
Monies left over after the special assessment project are considered common surplus and may be used as determined by the board of directors.
An association with revenues between $300,00 and $500,000 must prepare a review at year end unless the reporting requirement is reduced by a majority vote of the membership present at a meeting at which a quorum is attained. The review is performed by a CPA.
Tomorrow is our annual meeting and organizational meeting for the election of officers. Because of all the discord, harassment, and malicious acts of the shareholders toward the current president (who is actually the second one, as the first resigned midway through the year), there is concern that no director will accept the president’s position. Any suggestions if that should happen?
To confirm what we discussed by telephone, the actual problem is a boundary problem. But it goes back to the basics of community associations.
If you don’t understand the purpose of the community association, the role of the board, and the relationship the board has to the shareholders; and the shareholders don’t understand their role; then the president is not going to understand his or her role, and everything’s going to deteriorate and go down from there.
So, it becomes a boundary issue of the president and knowing when to say “no” or “stop” or call the police.
If you think I can help the board understand these things and get back to the basics, I would suggest that you convene an organizational meeting and then make a motion to postpone it to a certain date. I will come and talk you through these things to see if you can settle on a person for the president’s position.
Can a condominium board of directors approve hiring a property management company/CAM, or do you have to have an owners’ vote?
Decisions/voting on operations, maintenance, and management is for the board of directors to do and not the owners. Owners do not vote at board meetings and may only make comments to specific agenda items. There is no open discussion or question and answer.
At a condominium or cooperative annual membership meeting (or a special membership meeting), owners really only vote on four major things: (1) amendments to the documents, (2) raising or lowering the year-end financial reporting requirements, (3) until January 2025, waiving or lowering the reserve funding, and (4) material alterations and substantial additions. They will also vote to approve the previous annual (or special) meeting minutes, and they will vote to adjourn.
I was just elected to the board of directors, and this is my first term in office. I received my board certification in October 2019. Is it still valid?
No, you can only take the class up to a year before your election or appointment. So, you’ll need to certify again. Then if there is a break of service, you’ll need to recertify.
Editor’s Note: This is part three in a multi-part series. Part I (February 2023 issue) explained how service providers/vendors are to submit an RFP. Part II (March 2023 issue) explored the information a community association needs to obtain from a potential security vendor, from insurance and workers’ compensation to company information and staffing. Part III continues to look at information that needs to be obtained from a potential security vendor.
Editor’s Note: In the next issue, the RFP Template with a variety of questions will be provided.