1. Florida’s building code is shaped by hurricanes and requires certain high wind zones near the coastline to have different structural requirements.
2. Condominium associations in Florida are required to act quickly to complete emergency repairs after a storm.
3. Chapter 718 of the Florida Condominium Act provides for emergency powers for condominium associations, and association’s declaration may also list additional emergency powers.
4. Only two sections of the emergency powers statute refer to association funds. 1. Condominium associations in Florida have the power to levy special assessments without a vote of the owners, as stated in Section 718.1265(1)(l) of the Florida Condominium Act.
2. They also have the power to borrow money and pledge association assets as collateral to fund emergency repairs without the approval of unit owners, as stated in Section 718.1265(1)(m).
3. They have the option to fund emergency repairs using special assessments, borrowing money, utilizing existing cash, or utilizing insurance proceeds.
4. Florida law prohibits the use of reserve funds to make up for operating account deficiencies without majority approval from the owners.
5. The emergency powers section of the Florida Condominium Act does not change the requirement for using reserve funds.
6. The board of directors can borrow money from a bank to make up for operating account deficiencies and then levy a special assessment to pay back the loan.
7. It is recommended for associations to establish a relationship with a financial institution and set up a line of credit before an emergency happens.
8. There is no emergency provision that allows associations to use reserve funds for non-reserve assets in an emergency without prior member approval by a majority vote.
https://www.jimersonfirm.com/blog/2017/11/paying-emergency-repairs-florida-condominiums/
Leave a Reply