Question:
Is the income generated by HOA property (storage area, laundry room etc) belong to the HOA or the Developer. Our HOA is still under the Developer, although the Developer guarantee has expired years ago. The HOA pays for all maintenance, upkeep and cost for the laundry rooms, including water, electric and sewer. The property and buildings have been turned over to the Non-profit 501C3 HOA. Income from all these area’s are taken from the HOA and given to the Developer, since 2018. Prior to that (apprx 2011) the income was listed on the HOA income/revenue statement. No record of a Board meeting transferring the income to the Developer has been found.
– Lance
Answer:
Hi Lance,
Generally speaking, these funds belong to the HOA itself unless there are provisions in the governing documents or contractual agreements stating otherwise. Moreover, the Florida Homeowners’ Association Act Section 720.303(8) states that the developer cannot combine its funds and the funds of the HOA. They must maintain HOA funds separately. You may raise these with the developer. For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
