Board’s use of reserve funds results in fine for the owners
Q: Our board willfully used funds from the reserve account without unit owner approval for other purposes. The state imposed a fine on the association and not the board. Who is responsible for such action?
R.E., Miami
A: The fine will be paid from general funds of the association or by special assessment. This means that each member will pay their share. It is said that the board is responsible for the operations and maintenance of the association. This is true, but each member is responsible to elect trustworthy and knowledgeable members to the board. In addition, each member has a responsibility to monitor the actions of the board and this means reviewing the financial reports and attending meetings. If the members are complacent and the board fails to comply with the statutes or the documents, then the members must pay for the errors of the board and any fine imposed on the association.