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An entire Florida homeowners association board quits after $60K special assessment dispute — what happened

Florida Homeowners Association Board Resigns After Dispute Over $60,000 Special Assessment - What Happened

Florida Homeowners Association Board Resigns After Dispute Over $60,000 Special Assessment – What Happened

Homeowners at the Villas of Carillon townhome community in Feather Sound, Florida, are trying to understand a request from their homeowners association board for a $60,000 special assessment.

Homeowners received an assessment notice in early June that detailed how the HOA’s reserves had never been fully funded in its 20-year history, presenting the community with a “significant financial challenge going forward.”

Each household was expected to pay about $60,000, and a vote was scheduled for June 20 to determine the exact payment plan.

“A lot of people will lose their homes, either they’ll have to sell their homes or they won’t be able to make those payments. Their homes will be put under a lien, a foreclosure,” Tammy Rodeffer, the homeowner, told WTSP. “I’m concerned about the community as a whole.”

However, at a special meeting, the owners arrived en masse to convince the board to postpone making a decision.

“We need to get involved, this problem is not going to go away,” said resident Robert Regan. “And condo owners need to have 100 percent reserves.”

And then, in an email sent after the June 21 vote, the entire board announced its resignations — effective immediately.

Following the 2021 Surfside collapse that killed 98 people in Miami due to construction defects, regulations now require more frequent inspections of condominiums, while many condo associations are raising fees to build a larger reserve for repairs.

Now, Florida state reforms require reserve studies and milestone studies and impose annual reserve contributions, but they only apply to units three stories or more. The Villas townhouses are not condos — and they are only two stories.

The HOA board said insurance companies would no longer insure the complex in a few years if it did not have the reserves to pay for new roofs.

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But Patricia Staebler, a certified reserves specialist based in Sarasota, notes that the time-equivalent cost of a project should already be accounted for before the renovation if the association wanted to avoid any special assessment.

According to Staebler, these reserve studies should help the board plan for the next fiscal year and beyond, with an annual increase anticipated over a 30-year period. And while it is not necessary for reserves to be “fully funded,” it is crucial that these annual assessments be conducted with the appropriate full funding.

“There’s a difference between being 100% funded and 100% funding your reserve requirements for the upcoming fiscal year,” she says. “I’ve been doing this for 15 years. In my entire career as a reserves specialist, I’ve never seen an association that’s 100% funded.”

In the meantime, townhouse owners in the community are hoping the postponement of the vote will give them more time to figure out why the special assessment fees are so high.

“So we can get additional documentation, look at all the financials and see how they arrived at those numbers,” Rodeffer said.

This article is provided for informational purposes only and should not be construed as advice. It is provided without warranty of any kind.

News Source : finance.yahoo.com
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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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