Homeowners Association questions answered

Q: I am told that, under Florida law, our homeowner association assessments cannot be raised more than 15 percent a year. True or false? If true, to what agency do I go to stop them from increasing it by multiples of 15 percent? It seems ludicrous to hire a lawyer for this.

C.W., Fort Lauderdale

A: The statute does address large increases in assessments, however. If the expense section of the budget, not including reserves, results in a 115 percent increase in assessments over the previous fiscal year, members can require the board to hold a special owners' meeting to consider a substitute budget.

This is a tricky process, with time limits imposed on the owners for calling for the meeting, serving notice to all owners, etc. If they succeed in that, they must have a quorum at the meeting, and if they come up with a new budget, it must be approved by a majority of voting interests. For homeowners associations there is no state agency to report board violations.

Q: Our Master Association just increased our annual fee for 2011. Can the residents refuse to pay this amount and place it in an escrow account while they try to negotiate a more realistic figure?

Can the Master Association close the only entrance and exit road to our homes if we put the money in an escrow account? What would we do to set up this account if the Master Association does not ban us from reaching our homes?

E.K., Tampa

A: No, the board cannot close the roads but it does have the authority to take even more drastic action. It can lien and foreclose on your home, even if you have the money in an escrow account — if the account was not court ordered. You would be considered delinquent on your fees. Not paying fees because you do not like the increase is not a valid reason to stop payments. You have other options for addressing the board and its decisions.

Richard White is a licensed community association manager. He does not offer legal opinions; any other questions and comments concerning association operations can be sent to Richard White, 6039 Cypress Gardens Blvd., No. 201, Winter Haven FL 33884-4115;