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MAKE SURE YOU’RE COVERED
By
Eric Glazer, Esq.
Published March 13, 2023
Now that condominiums are going to have to pass huge special
assessments in order to make repairs and maintain new accounts
with potentially millions of dollars in the bank, let me tell
you one of the reasons I heard as to why these new laws should
not go into effect. “Because we don’t trust our Board having
access to all of these funds…….no doubt they will steal some of
it.”
I
heard this on the radio show and I heard this at our seminars.
Like I always said……..is it possible for Board members to steal
funds? Of course it is. It’s also possible for doctors to
steal, lawyers to steal and for cops to be on the take. Every
profession, including that of being a board member has its
thieves. However, when you think about the number of
condominiums and the number of times you’ve heard about board
members getting caught stealing, it’s really a very minute
percentage of directors with their hands in the cookie jar.
Now, let’s say you live in one of those condominiums where the
bad guys did take the condominium’s money. According to the
law, you’re covered. Don’t worry about it.
FS718.111(11) (h) The association shall maintain
insurance or fidelity bonding of all persons who control or
disburse funds of the association. The insurance policy or
fidelity bond must cover the maximum funds that will be in the
custody of the association or its management agent at any one
time. As used in this paragraph, the term “persons who control
or disburse funds of the association” includes, but is not
limited to, those individuals authorized to sign checks on
behalf of the association, and the president, secretary, and
treasurer of the association. The association shall bear the
cost of any such bonding.
Now here is where your association needs to get busy. It is
imperative that the Board and the management company contact the
insurance agent for the association and let the agent know about
the dramatic rise in the “maximum funds that will be in the
custody of the association or its management company at any one
time” as special assessments are passed and reserve accounts are
funded.
So technically, no need to worry about some Board member heading
off to Tahiti with the association’s funds, because even if they
did, the association gets it back through their insurance
policy.
Don’t worry members who live in an HOA. There is an
exact same statute that applies to you. 720.303(5).
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About
HOA & Condo Blog
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Eric Glazer graduated
from the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for three decades and is the owner of
Glazer and Sachs, P.A. a five attorney law firm with
offices in Fort Lauderdale and Orlando.
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Eric is Board Certified by The Florida Bar in
Condominium and Planned Development Law.
Since 2009, Eric has been the host of Condo Craze
and HOAs, a weekly one hour radio show that airs at 11:00 a.m.
each Sunday on 850 WFTL.
See:
www.condocrazeandhoas.com.
Eric is the first attorney in the State of
Florida that designed a course that certifies condominium and
HOA residents as eligible to serve on a Board of Directors and
has now certified more than 20,000 Floridians all across the
state. He is certified as a Circuit Court Mediator by The
Florida Supreme Court and has mediated dozens of disputes
between associations and unit owners. Eric also devotes
significant time to advancing legislation in the best interest
of Florida community association members.
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