Q. Our newly-elected board recently hired a new management company —a move the new board initiated with no input from the homeowners and no discussion. I have specifically requested information concerning our budget, and whether this new company is being paid more than our previous one. It’s been nearly a month, and no one will respond directly to my questions. I and several other owners suspect that if there was no change in our management fee, there would have been a quick response. It’s a clear and concise question, and this stonewalling by the board is very disconcerting. What recourse do we have to get a truthful answer?
—Why So Secretive?
A. “Condominiums and homeowners associations are governed by different statutes. Since I cannot ascertain if the owner resides in a condominium or homeowners association, I will answer the question in generality,” says Russell M. Robbins, partner at Basulto Robbins & Associates, LLP in Pompano Beach. “While a board is generally obligated to obtain competitive bids for contracts, exceptions exist in both statutes that permit a board to engage a management company (or attorney, accountant, architect, timeshare management firm, engineering, and landscape architect services) without obtaining competitive bids (718.3026(2)(a) and 720.3055(2)(a)(1), Florida Statutes).
“Both statutes permit an owner to make a records inspection request for a copy of this agreement (and a copy of the previous management agreement), if the association is a condominium, the aggrieved unit owner can file a complaint with the Florida Department of Business & Professional Regulation’s Bureau of Compliance to ensure access to the official records. Owners in either type of community can also demand arbitration over the refusal to grant access, and may recover up to $500 in statutory damages plus their reasonable attorneys fees and costs.”
Leave a Comment