Question 1

What annual reports must Florida HOA boards file?

Accepted Answer

FL HOA reporting (Chapter 720): annual report (Section 720.303(7): the board must prepare: an annual budget and provide it to all members at least 14 days before the budget meeting), financial reports (Section 720.303(7): the association must prepare: annual financial statements; the type depends on total annual revenues: under $150,000: a report of cash receipts and expenditures; $150,000-$300,000: compiled financial statements; $300,000-$500,000: reviewed financial statements; over $500,000: audited financial statements), and Department of State filing (the HOA must file: an annual report with the FL Department of State to maintain its corporate status; the filing fee is approximately $61.25).

Question 2

What financial records must Florida HOAs maintain?

Accepted Answer

FL records (Section 720.303(4)): the association must maintain: meeting minutes (board and member meetings), financial records (all invoices, receipts, bank statements, and canceled checks), contracts (all contracts entered into by the association), insurance policies (all current policies), member records (names, addresses, and voting rights of all members), and correspondence (official correspondence related to association business). The records: must be maintained within the state or be available within: 5 business days. Member access: all members have the right to: inspect and copy the official records during normal business hours (Section 720.303(5)); the association may charge: a reasonable fee for copies.

Question 3

What are the consequences of failing to comply with Florida HOA reporting requirements?

Accepted Answer

Consequences: member lawsuits (members can: sue the board for failure to comply with reporting requirements; the prevailing party is: entitled to attorney fees under Section 720.305(1)), DBPR enforcement (the FL Division of Condominiums, Timeshares, and Mobile Homes: can investigate complaints and issue: fines and penalties for reporting violations), director liability (directors who fail to: maintain proper records or file required reports may: be personally liable for losses caused by their failure), loss of corporate status (failure to file: the annual report with the Department of State can result in: dissolution of the corporate entity; this can: expose directors to personal liability), and operational disruption (poor recordkeeping: leads to budget problems, member disputes, and potential mismanagement claims).

Yearly Reporting Requirements HOA Board

FL HOA Annual Reporting Requirements

Annual Reports

Records

Non-Compliance

Related Terms

Barnes Walker HOA Law

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