F.F. from Manatee County, Florida writes:
Dear Mister Condo,
Our non-profit Florida condo association, 120 units, may have excess funds at the end of the year. This question is included in a proxy vote. Why is it necessary to have an owners’ majority vote? Could the board just roll over the excess funds into the next year budget and inform the owners?
Mister Condo replies:
F.F., while I would need to review your condo’s governance documents to be certain, my guess is that your condo association requires that excess funds are either returned to the unit owners in a lump sum or applied evenly to upcoming common fees until exhausted. The latter is more common. However, your governing documents may stipulate that a vote of the unit owners is required for the Board to allocate the funds. There is state law stating that the excess funds are owned by the unit owners. However, since the Board manages the assets of the association, they are the custodians of these funds until they are dispersed properly. In your case, it looks a like a vote of the unit owners is required for the Board to move the funds where they feel it will best benefit the homeowners. Glad you are operating in the black! All the best!