PLCA Violates Florida Law Regarding Budget

Did you know that no reviewing person or entity, not even the finance committee, is provided with any information concerning the compensation to individual employees of PLCA and therefore there is no basis to determine whether compensation levels are reasonable? This category represents approximately 1/3 of the Budget, and this information has not been provided despite repeated requested by Association members. Despite assurances from management, there is no opinion of PLCA counsel that the withholding of this information is permitted under Florida law. In fact, the contrary is true. Whether you think the failure to disclose this information is good or bad policy, the withholding of this information is a violation of Florida law. This violation of law is specifically condoned by Shirley Writhington, and Jet Tipton sits on the PLCA Board that violates this Florida law!

Florida law specifically requires HOAs to make the following records accessible to its members: “written employment agreements with an association or management company employee or budgetary or financial records that indicate the compensation paid to an association or management company employee.” (Florida Statutes 720.303 (5))

Since a major portion of the budget has gone without UOC, advisory group or other independent analysis and review, probably for years and perhaps forever, we have no idea whether our compensation levels are reasonable.

Several months ago a local law firm confirmed in a newspaper article that this information must be provided under Florida law.

Sep 21, 2014 Naples Daily News Real Estate Section:

Editor’s note: Attorneys at Goede, Adamczyk & DeBoest, PLLC respond to questions about Florida community association law. With offices in Naples, Fort Myers, Miami, and Palm Beach County, the firm represents community associations throughout Florida and focuses on condominium and homeowner association law, real estate law, litigation, estate planning and business law.

Q: The manager of our master association has refused to reveal the salaries of the eight people employed at the association’s administration office. He said that their attorney says that an association does not have to reveal such information to a resident. Is the attorney correct?

R.M. Fort Myers

A: Your attorney is not correct and is probably referring to the Florida law that prohibits an association from sharing personnel records with the residents. However, Chapter 720 of the Florida Statutes governing HOA’s specifically states that the term “personnel records” does not include “written employment agreements with an association or management company employee or budgetary or financial records that indicate the compensation paid to an association or management company employee.” In a nutshell, the members of your master association are absolutely entitled to know what the association employees are paid. They are not entitled to see disciplinary, health, payroll and insurance records, but they are entitled to see salaries for these eight employees (emphasis added). The Florida Condominium Act (Chapter 718) has a similar law

2 thoughts on “PLCA Violates Florida Law Regarding Budget

  1. The Home Owners Association statue was amended in 2011 that added the following words to the subsection above ““written employment agreements with an association or management company employee or budgetary or financial records that indicate the compensation paid to an association or management company employee” and it seems that the amendment was ignored by he PLCA Board and their attorney. Bad advice and a bad decision not to disclose financial information. All this is on the record from e-mails I sent to the Board regarding this issue 3 years ago. The only course open at that time to the residents was a law suit or change the Board members and their attorney. Gladly, the second choice is now available to the property owners of the Association

  2. If you want to know what is really going on regarding the “turnover” from WCI read this Blog. Can you trust WCI to present the information most favorable to them or us? Could the information WCI relies on and the PLCA Board blindly relies upon really represent facts? People laughed at the recent meeting of candidates when someone suggested a committee of lawyers made up of home owners when that is what we really need to understand what is going on because the residents don’t and the Board probably doesn’t either. The residents need legal help, so go to lawyers, if you need an operation you go to a surgeon not a hospital administrator. “First we kill all the lawyers” is an often quoted verse from Shakespeare but few knew who and why it was said, it was said by those seeking to be kings and rule the people and the only thing that stood in their way were the lawyers who protected the rights of the people.

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