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    sumami3246's Avatar
    sumami3246 Posts: 1, Reputation: 1
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    #1

    Nov 23, 2009, 05:23 PM
    Working capital contribution in hoa
    The board of directors of our homeowners association (FL) have decided to take a vote on amending our covenants and restrictions to include a working capital contribution. This will be a 300.00 fee paid by the buyer whenever a home sells. Our financial situation is good; surplus at the end of every year and 25,000.00 in reserves for maintenance/replacement of common areas. Rumor has it that the funds collected will go towards adding a fountain to our pond. Can they do something like this? Thank you.
    LisaB4657's Avatar
    LisaB4657 Posts: 3,662, Reputation: 534
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    #2

    Nov 23, 2009, 05:30 PM
    You have to read the by-laws of your HOA very carefully. If they give the board the right to make this type of amendment then yes, they can do it. I have the feeling that the by-laws will require that at least 2/3 of the homeowners have to ratify it but you have to check the by-laws to make sure.
    fairytalesrcute's Avatar
    fairytalesrcute Posts: 3, Reputation: 1
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    #3

    Dec 1, 2009, 11:09 AM

    I would double check your governing documents. That "fee" as you call it may result in additional taxes, depending on your states tax laws. I would advise the Board contact an accountant. Since it is a "fee" there might be limitiations during the transfer of the property according to your state laws. Hopefully the required number of votes is provided to amend the CC&R's otherwise they cannot amend them. If you and the other members do not agree on this then simply vote against it.
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