Question:
Is there a law in Florida that Board Directors shall establish a $2,500 threshold for putting potential purchases to a vote?
I was the President of our HOA Board a few years ago and believed the Board should put everything to a homeowner vote (115 homes) before obligating funds in the spirit of transparency and sound communications. Our current Board Directors do not believe this is important. Instead, the current Board may or may not be operating with a thoughtfully considered threshold before obligating HOA funds.
Thank you.
– Martin
Answer:
Hi Martin,
In Florida, the HOA board generally does not need to put all purchases to a vote. However, it depends on your governing documents, so make sure to check your CC&Rs and bylaws. If the HOA board were to put every expense or disbursement to a membership vote, it would significantly slow down the process. Typically, the decision is only put to a board vote.
However, for large expenditures, such as capital improvements or renovation projects, the board would be wise to put it to a membership vote, since it would need a significant budget.
If you are concerned about transparency, the HOA board is obligated to share the financial reports and statements of the HOA. This includes a report on revenues and expenses.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
