Question:
Can someone please answer a question for me? I have attempted to research it, however, cannot find a definitive answer.
Question-Can a Property Manager co-mingle Homeowner Association Maintenance fees with Assessment fees?
Property Managers and Homeowner Associations are required to handle association funds with care and transparency. Co-mingling funds, which involves combining different types of funds ( such as maintenance fees and assessment fees) into a single account, can be considered improper. Mixing different types of funds could make it challenging to track and ensure that funds are used for their designated purposes.
Would like to know if I have any rights under the updated FS 720 law as the Property Manager has a disgracefully poor financial history as per Broward County and Palm Beach County Public records and I am very concerned as there is nothing defining this issue in our Documents, By-Laws, or Rules & Regulations.
Attempted to discuss with the Board Treasurer, however, he has refused to address the issue. Believe this may be a violation of his Fiduciary Duty and implies obstruction of the law under 2023 Florida Statute 720 updates.
Thank You
– Carol
Answer:
Hi Carol,
The Florida Homeowners’ Association Act Section 720.303(8)(d) states that: “if an association collects a deposit from a member for any reason, including to pay for expenses that may be incurred as a result of construction on a member’s parcel, such funds must be maintained separately and may not be commingled with any other association funds.”
This may or may not apply to commingling maintenance and assessment fees. If it applies, the association may have a duty to work with the management company to separate the funds. You may raise these concerns with the HOA board by contacting them and exhausting all forms of communication. You may also bring it up at a board meeting or speak with the association’s attorney. For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
