There are 2 HOAs in our community. Homes that were built in the 1990s (Phase 1) and homes built in the 2000s (Phase2). Obviously, the Phase 1 homes were built first We moved into this community (Phase 2) almost 5 years ago. We were told, by some residents, that Phase 2 wanted to build their own community center, on common property, in another part of the complex. Phase 1 did not like that idea, so they got together with the builder (Lennar) and entered into an agreement to allow Phase 2 to pay Phase 1 for renovations of the existing common area to accommodate the two HOAs (pool, clubhouse, boat docks, pavers, game room, tennis courts, parking lots, pool and clubhouse furniture, bathrooms, etc.) In exchange for this agreement, Phase 2 is basically “renting” the property from Phase 1. We have full use of the property but do not have any say in what needs to be done. We pay our monthly dues, but the property is in need of major repair. We do not have privy to a breakdown of where our monthly fees are being allocated. We pay $62,000.00+ per year to Phase 1 for common area maintenance fees of the clubhouse, pool, game room, parking lots, tennis court and bathrooms. Phase 1 also “supposedly” pays the same amount of fees ($124,000,00+ yearly combined.) My question is: How can we go about getting a breakdown of where our money is being spent. We would like an itemized breakdown of where our money has been going for the past years. We have NEVER seen anything. How can we get Phase 1 to disclose this information to us? Do we have the legal right to see where and how our money is being spent? Thank you for your anticipated cooperation.
According to Section 720.3086 of the Florida Homeowners Association Act, residents are entitled to a financial report from the HOA. The section states:
“In a residential subdivision in which the owners of lots or parcels must pay mandatory maintenance or amenity fees to the subdivision developer or to the owners of the common areas, recreational facilities, and other properties serving the lots or parcels, the developer or owner of such areas, facilities, or properties shall make public, within 60 days following the end of each fiscal year, a complete financial report of the actual, total receipts of mandatory maintenance or amenity fees received by it, and an itemized listing of the expenditures made by it from such fees, for that year. Such report shall be made public by mailing it to each lot or parcel owner in the subdivision, by publishing it in a publication regularly distributed within the subdivision, or by posting it in prominent locations in the subdivision. This section does not apply to amounts paid to homeowner associations pursuant to chapter 617, chapter 718, chapter 719, chapter 721, or chapter 723, or to amounts paid to local governmental entities, including special districts.”
Make sure to show this statute to the HOA board.
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