Condo Operations and Organization
Know the framework of a Condo Association
- The Association:
The condo association has powers and responsibilities that are similar to those of local governments.
An association must:
-Establish a budget that addresses the operating expenses for the current period.
-Set aside funds for future maintenance projects.
– Collect assessments to pay for the common expenses
– Must enforce it’s rules and regulation.
- The Board of Directors:
Directors have a fiduciary relationship with the unit owners, and have the responsibility to act with the highest degree of good faith and to place the interests of the unit owners above the personal interests of the directors.
Each unit owner has the right to be informed and have a voice in the operation of the condominium. For this reason, F.S. 718 requires each condominium association to:
- Hold an annual meeting of its unit owners
- Provide adequate notice of meetings
- Allow unit owners participation at meetings
- Conduct elections
- Permit unit owners inspection of most of the official records of the association
- Prepare and distribute a year-end financial report to the members.
It is the board’s duty and responsibility to determine the association’s needs and provide for the necessary fiscal resources.
If an association chooses to hire a manager to assist the board directors, that person or company will be required under F.S. 468, Part VIII, to be licensed as a Community Association Manager (CAM) or Community Association Firm (CAF) if the association contains more than 10 units, or has an annual budget in excess of $100,000.
The hiring of a manager to administer the day-to-day operational functions of an association does not relieve the board from the responsibility to ensure the association complies with the Condominium Act and the Division’s administrative rules.