HOA board resigns after $60K Special Assessment Dispute

A Community Association Manager’s Perspective on Recent
Villas of Carillon HOA Developments in Florida

As a licensed Community Association Manager in Florida, I’ve been closely monitoring recent issues affecting homeowners associations (HOAs) in our state. The situation at Villas of Carillon highlighted the need for transparency regarding reserve funding requirements under Chapter 720 of Florida Statutes.

The board at Villas of Carillon resigned after proposing a $60K special assessment due to confusion over reserve funding laws, which only apply to condominium associations of 3+ stories per Chapter 718. However, Chapter 720 does not contain the same requirements for HOAs. As managers, we must clearly explain the distinction between associations governed by Chapter 718 versus 720.

Certified Reserve Specialist Patricia Staebler also clarified that per Chapter 720, associations only need to fully fund their annual reserve budget, not achieve 100% funding of total estimated replacement costs over 30 years. Fully explaining these nuances can prevent future conflicts like those seen at Villas of Carillon.

Additionally, skyrocketing insurance rates pose challenges for HOAs and condo associations alike per Chapter 627 of Florida Statutes. Steep premium increases disproportionately impact fixed-income residents. As CAMs, advocating for competitive quotes and exploring alternatives is prudent to maintain affordable costs for homeowners as required by Chapter 720.

Overall, these situations highlight the importance of CAMs staying informed on Florida property and insurance laws, namely Chapters 617, 627, 718 and 720. We must clearly educate boards and residents on statutory requirements to facilitate transparent governance, fiscal responsibility and avoid future disconnects through professional property management.

If you were a board member would you have resigned?

 

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