Live in a home governed by a condominium, co-op or homeowner’s association? Have questions about what they can and cannot do? Ryan Poliakoff, an attorney and author based in Boca Raton, has answers.
Question: In a recent column you noted that “a board can’t borrow from budgeted reserve categories to make improvements — at least, not without a membership vote.”
Does this mean a board cannot borrow from reserve dollars to pay a large bill, like insurance, that is paid early in the fiscal cycle, with the intent of paying back to reserves the “borrowed funds” as the normal assessment dues are paid in over the fiscal year? That is without an ownership vote. It seems to be a prudent way to manage funds without incurring finance charges if the insurance bill is paid over time during the year as the insurance funds come in from owners…