Florida Homeowners Association’s Entire Board Resigns After Dispute Over $60K Special Assessment – What Happened?

Florida Homeowners Association’s Entire Board Resigns After Dispute Over $60K Special Assessment – What Happened?

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

Homeowners received a notice of assessment in early June, which detailed how the homeowners association’s reserves had never been fully funded in its 20-year history, presenting the community with a “significant financial challenge moving forward.”

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

“There will be a lot of people who will lose their homes, either have to sell them or can’t make those payments. Their homes will be foreclosed on, they will be foreclosed on,” He said “I’m concerned about the community as a whole,” said Tammy Roddifer, WTSP’s owner at the time.

However, at a special meeting, the club’s owners arrived in large numbers to persuade the board to postpone the decision.

“We have to work together, this problem is not going to go away,” said resident Robert Regan. “The condos have to have 100 percent reserves.”

Then, in an email after the vote on June 21, the entire board announced its resignation — effective immediately.

In the wake of the 2021 Surfside collapse — which killed 98 people in Miami due to construction defects — regulations now require more frequent inspections of condo buildings, while many condo associations Raise fees To build a larger reserve for repairs.

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Florida’s reforms now require studies of preserves and significant sites and impose annual contributions to preserves, but they only apply to residential units that are three stories or higher. Villas’ townhouses are not condos—they are no taller than two stories.

The property owners association said insurance companies won’t insure the complex in a few years if it doesn’t have the reserves to pay for new roofs.

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But Patricia Staebler, a Sarasota-based certified reserve specialist, points out that the time-equivalent cost of the project should already be deposited in the bank before renewal if the association wants to avoid any special assessments.

These reserve studies will help the board plan for the next fiscal year and subsequent years, building annual increases over a 30-year period, says Staebler. While reserves do not have to be “fully funded”—it is important that these annual assessments are met with appropriate full funding.

“There is a difference between 100% funding and 100% funding of the reserve requirements for the next fiscal year,” she said. He says“I’ve been doing this for 15 years. In my entire career as a reserve professional, I’ve never seen an association that was 100% funded.”

Meanwhile, homeowners in the community are hoping that delaying the vote will give them more time to gain some insight into why special assessment fees are so high.

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“So we can get additional documentation, review all the financials, and figure out how they arrived at these numbers,” Roddifer said.

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

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