Tuesday, October 19, 2010
New Roof
Our building is planning to replace our roof in the near future. The expenditure will run between 80,000-100,000. We have the money in our reserve so that is not an issue. I would like to know does the board have the authority to vote to replace our roof or does it have to go to the entire association for a vote due to the amount of the expenditure involved.
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Hi all,
ReplyDeleteThe following extract from Florida Statute FS 718 may prove helpful:
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REF: FS 718.111(3)
(3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT, SUE, AND BE SUED.--The association may contract, sue, or be sued with respect to the exercise or nonexercise of its powers. For these purposes, the powers of the association include, but are not limited to, the maintenance, management, and operation of the condominium property. After control of the association is obtained by unit owners other than the developer, the association may institute, maintain, settle, or appeal actions or hearings in its name on behalf of all unit owners concerning matters of common interest to most or all unit owners, including, but not limited to, the common elements; the roof and structural components of a building or other improvements; mechanical, electrical, and plumbing elements serving an improvement or a building; representations of the developer pertaining to any existing or proposed commonly used facilities; and protesting ad valorem taxes on commonly used facilities and on units; and may defend actions in eminent domain or bring inverse condemnation actions. If the association has the authority to maintain a class action, the association may be joined in an action as representative of that class with reference to litigation and disputes involving the matters for which the association could bring a class action. Nothing herein limits any statutory or common-law right of any individual unit owner or class of unit owners to bring any action without participation by the association which may otherwise be available.
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It seems clear, that if the Budgets and Reserve lines were lawfully established and collected, that the Board may spend these monies for the designated purposes.
Of course, common sense suggests that the unit owners should be involved, but it is not necessary, by law.
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This is my opinion only, and it is NOT to be construed as legal advice.
Dave Israel
The association is responsible for the maintenance, repair, replacement, protection and preservation of the structure and other common elements. The association is administered through the efforts of the Board of Administration. Competing bids (of such amount) are required under law, yet, the lowest bid need not be taken.
ReplyDeleteYou may do well to hire a roofing engineer. Toward the end of the remaining useful life cycle of a reserve item of such proportions, you may find that the remaining useful life may be a few years off.
ReplyDeleteDave states that "It's common sense for the unit owners to get involved". That is the purpose of statutorily required open meetings, so unit owners can attend and contribute. As stated, professional guidance may be very helpful in demonstrating due diligence in the administration of such affairs of the association.
Section 718.111(1)(b) relating to "The Business Judgment Rule", states in part, "As required by s. 617.0830, an officer, director, or agent shall discharge his or her duties in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances, and in a manner he or she reasonably believes to be in the interests of the association. ...."
I've experienced associations who permit a vote of the unit owners to determine a budget. This is a very bad precedence to set, especially when the condo documents place such responsibilities clearly in the hands of the Board. So yes,
the unit owners should always be "involved" but never place decisions which are legally required to be made by the board, in the hands of the unit owners.
Finally, it is important to keep in mind that the unit owners do not have a fiduciary responsibility to act in their own best interests, whereas, the Board legally does.