Condo Q & A

Judith Zeng

Richard DeBoest, Esq.

Attorney Richard D. DeBoest is a shareholder at the law firm of Goede, Adamczyk, DeBoest & Cross.

Q: Are there distinctions concerning Chapter 720 and 718 legislation as to what HOAs vs Condominium Associations can do with unspent monies still left about from assessments for specified projects? Are they expected to return those monies to their homeowners, can they put it in the common fund, use it on a different challenge or some other use? Thank you.

A: When you say assessments for specified initiatives, I believe you imply unique assessments adopted by the Board outside the house of the typical finances for a distinct non-recurring venture.  In these kinds of circumstances Area 718.116(10) for Condominiums a Area 719.108(9) for Cooperatives both present that “the funds collected pursuant to a specific assessment shall be made use of only for the unique goal or needs set forth in these see. Having said that, on completion of these types of unique objective or reasons, any excessive cash will be considered typical surplus, and might, at the discretion of the board, both be returned to the unit owners or utilized as a credit history towards upcoming assessments.”  Chapter 720 for Home-owner Associations does not consist of this provision so you ought to check your governing documents to determine if they dictate what should be performed with the surplus.  If the documents are silent then it would be a Board decision to both return the surplus to the proprietors, spot it in the functioning or reserve accounts or use it for some other proper objective.

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