Richard White: Complying with Florida statutes is recommended for associations
Question: I have written to you previously about a potential vote our condominium complex entertained to opt out of the state statute. This vote for opting out was recommended by our management company. Well, the condominium members did vote to opt out. What is your take on this issue? Personally, I favored staying with the Florida statutes, but it is difficult to read and understand. I think most people were confused and just voted along the lines of the management company recommendation. I could be wrong, but I think the statutes are developed to help and protect the condo owners and staying with this statute was the better option. The condominium attorney tried to explain the statute in an unbiased manner. I would like to hear your opinion of this situation. — H.E. / Naples
Answer: Keep in mind that there are only a few things the association can vote not to comply with in the statutes: Reserve budgets, annual meetings, audits and a couple of other operational matters. You cannot just vote not to follow or comply with the statutes, but you can vote on specific items as listed. I am surprised that a manager would advise to opt out of statute requirements. Take the reserves for example. To vote not to fund reserves, it must be done each year. Here is the problem. Say the association voted not to fund reserves over the years. A few years later, the association has no reserves. A disaster hits the association and the board needs a special assessment. It leaves the board and manager open for a lawsuit by an owner. That lawsuit could claim that the board and manager did not properly prepare a budget that included reserves. While the board can claim that the members voted not to collect reserves, it is a defense that could be overruled by a judge. I never recommend that members vote not to comply with the statutes.