Question:
I have only been in my home 15 months, and dues have gone up way more than expected, with a greater increase coming in 2024. The best explanation I’ve gotten is that previous boards overspent and used money from the Reserves which must be replenished – by US. My question is whether HOA boards – which have a fiduciary responsibility – are overseen by some kind of auditor or whether the only thing holding them back is the community? Hope you can help!
– Barbara
Answer:
Hi Barbara,
HOAs in Florida are governed by the Florida Homeowners’ Association Act, which also includes provisions regarding financial audits. According to Section 720.303(7)(a), homeowners associations with a total annual revenue of $500,000 must prepare audited financial statements every year for the preceding fiscal year. They must furnish a copy to each member or provide them notice that these reports are available upon request.
If the HOA’s total annual revenue is less than $500,000, the HOA may still be required to prepare audited financial statements according to Section 720.303(7)(c). For this to happen, 20% of the homeowners must petition the board and, at a meeting of the members, there must be approval of a majority of the total voting interests of the parcel owners.
However, there are no regular government checks or audits, so it is often up to the community members to keep HOAs in check when they’re in violation. For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
