The builder controls the board of directors and said there was not enough money to pay the insurance. In your opinion, is this criminal negligence on the part of the board?
Not having enough money to pay for insurance is not a valid answer. When boards are short on funds to pay for required items, they are then obligated to increase the budget or pass a special assessment.
I believe the major reason the developer did not have the funds was strictly his economic position in this slow market. He feared that increasing the budget or approving a special assessment would hurt his sales.
As the statutes and I’m sure your documents require liability insurance, he was clearly in violation of these requirements. Since there were alternative methods to raise the funds to pay for necessary insurance, he made a poor business decision.
Can you tell me whether you are allowed to remove one of the original amenities and if so, what kind of vote needs to take place?
Most documents would define how the removal of a common area would be conducted. The major reason that I recommend legal guidance is because I have seen one owner sue the association when it removed a common element.
Say one owner purchased in the community primarily because he had use of the tennis court. If you remove the tennis courts and he did not vote for the removal, you may find that he sues the association because you took away the one amenity that was very important to him.
An attorney would research documents as to the correct procedures, draft a legal motion, and assist with the required votes.
If an owner does not submit a request in writing to discuss an agenda item before the meeting is called to order, the owner can be denied the right to talk. Using such a policy will limit discussion from the floor but allow an owner to present their information or concerns.
Write to Condo Line, Richard White, 6039 Cypress Gardens Blvd., #201, Winter Haven, FL 33884-4115, or e-mail CAMquestion@cfl.rr.com. Include name and city.