Q: Can a HOA Board vote to suspend/waive any mandatory assessments as a gesture for COVID-19 relief to its members?
We are a mandatory HOA with properly recorded CC&R, Articles of Incorportation, and Bylaws. There is nothing listed in the Powers of the Board section that allows the Board, at its discretion, to waive the collection of any mandatory assessments. I was just appointed as treasurer and the Board gave back 50% of our treasury in the form of a $200 COVID-19 relief check in April. They also decided to not collect any more assessments for this year and I'm afraid they have overstepped their authority by announcing no further dues will be collected for the remainder of 2020. We are a small 60 home HOA and the cancellation of 2020 assessments plus depleting our treasury by nearly 50% may be a violation of our fiduciary duties as the HOA Board. We were incorporated as an HOA in 1992, I believe under FL Chapter 712, before Chapter 720 existed.
A: If the operating restrictions, bylaws, and articles do not grant the Board such discretion and the HOA members and Board have not established such authority by vote and adoption of said provisions then yes, it is likely that a fiduciary duty to the association is being breached by the members of the Board and litigation for said breach could ensue. Even if the Board had sincere humanitarian intentions.
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