Q: We have been advised that two owners in our condo association have not paid their assessments. Their names and addresses were listed in the notice sent to all owners. We were advised the board has spent over $8,000 in legal fees for this year. Outstanding delinquent accounts that are not paid by the said delinquent owners, including legal fees, will be assessed to all owners by their percentage of ownership as set forth in the condominium documents. The total amount will be reflected in the 2010 monthly maintenance fees for all owners. Many owners are concerned and upset about this. I didn't think the names of the delinquent people could be shown as I thought you had mentioned this in your column some time ago. Is it legal to post names and assess the other members?

K.E., Largo

A: While the condominium statute does not address the posting of delinquent owners' names and addresses, it may be a violation of the Federal Credit Laws. My objection is that it can cause neighbor problems. What good does it to post the names and address of the nonpayers? They are your neighbors. You cannot stand in front of their homes and throw stones and you should not yell negative remarks.

A better way is to say ``we have six units delinquent.'' If another owner wants to know who the owners are, they can submit a letter to the board to inspect the records. This way, the board can control the information and avoid conflicts.

Q: Would you please clarify the legality of compensation for a board of directors of a condominium association? Our association bylaws stipulate the board of directors consist of five annually elected members. Currently we have four. The subject of paying directors for performing services above and beyond normal responsibilities and assuming the role as a general manager has been proposed. Can you tell me if this is appropriate and is approval required of the membership or can the board vote on this proposal at the annual meeting or at the business meeting that is scheduled to follow?

C.S., Broward

A: In my opinion, the association would be better off to engage a manager or management company to help reduce the workload. When you pay directors, if not done correctly it could be a violation of the Community Association Managers Act. FS 718.112, which says, ``Unless otherwise provided in the bylaws, the officers shall serve without compensation and at the pleasure of the board of administration. Unless otherwise provided in the bylaws, the members of the board shall serve without compensation.'' FS 617 has similar wording.

If your documents do not specifically allow payment, then you must modify your documents. I would suggest that you have the association attorney draft the proper amendment and supervise the members' voting. This brings up a matter of owner apathy. Everything must be done to encourage the members to share in the responsibility of serving on the board. The strongest point to sell the owners on volunteering is the increased cost they would pay.

Q: Our board is having a meeting to approve the budget, which includes funding the reserves at 100 percent by raising the maintenance fee. The board is also voting on a special assessment at the same meeting. In the past, we have been able to vote to fund the reserves at specified amounts or not to fund them at all. There is no ballot this time and only a statement that the state of Florida requires 100 percent funding. I have read the statute, but am somewhat confused as to its meaning. What is the proper action the board should be taking? E.D., Hudson

A: Budgets are approved by the directors, not members, at a board meeting. It is the responsibility of the board to prepare a proper expense budget for expected expenses for the next year. That budget should include a reserve budget that fully funds (100 percent) the projected reserves. It is not the responsibility of the board to call a members' meeting, which would be for members to make a motion to reduce or eliminate the reserves. If members want to reduce the reserves, then they must take the initiative to call the meeting, make the motion and vote to reduce or eliminate the reserves. More information can be found in FS 718.112(e).

The only time members can change the expense budget, not the reserves, is if the expense budget reflects a 115 percent increase. Then the members, not the board, must call a members' meeting, present a substitute budget and vote to approve the substitute budget.

Write to Condo Line, Home, 1 Herald Plaza, Miami, FL 33132, or e-mail CAMquestion@cfl.rr.com. Include name and city.