Horizon's Orlando HAO vote question

[cigarboo]

I just got the HOA ballot and I'm not totally sure what "To Waive Fully Funding of Reserves" mean. Would that be good or bad? It states the BOD recommends a vote FOR this issue. I just want to make sure I understand because I don't get why the BOD would want to use the reserves for other things. Shouldn't the reserve be kept for unanticipated special assessments and refurbishment? Isn't it misleading and sneaky to write what the BOD recommends right on the ballot? Maybe I'm not reading it right... Can someone explain the benefit and drawback?

 

[dioxide45]

I just got the HOA ballot and I'm not totally sure what "To Waive Fully Funding of Reserves" mean. Would that be good or bad? It states the BOD recommends a vote FOR this issue. I just want to make sure I understand because I don't get why the BOD would want to use the reserves for other things. Shouldn't the reserve be kept for unanticipated special assessments and refurbishment? Isn't it misleading and sneaky to write what the BOD recommends right on the ballot? Maybe I'm not reading it right... Can someone explain the benefit and drawback?

We have the same item on the MGV ballot. I think the state of FL requires reserves to be collected to maintain repairs based on a certain timetable. Perhaps the law is quite stringent saying capital upgrades are done say every 5 years, but the HOA knows that they only have to do these referbishments every 8-10 years, so they don't need to fully fund the reserve to meet the shorter timeframe requirement.
This is just my guess, perhaps someone who knows more about it can answer.

I also found this on TUG http://www.tug2.net/advice/budget.htm

 

[thinze3]

I received on today for Legends Edge as well.

The explanation of the proxy states, "Waiving of reserves, in whole or in part, or allow alternative uses of existing reserves may result in unit owner liability for payment of unanticipated special assessment regarding those items."

The way I take this is that the resorts want a vote FOR an annual waiver, as required by Florida law, giving the BOD the right to charge less annual fees now, but also warning you that this could result in a special assesment when the time comes to make major upgrades.


Terry

 

[cigarboo]

So it seems, the BOD would like to skimp on the upkeep of the place and surprise everyone with giant special assessments in the future.
That's a good way to run a nice resort to the ground. Seems a mute point as I just looked at last years vote and it was 1028.5 votes FOR and only 51 votes AGAINST. Oh well. I hope I'm just misunderstanding all this and that MHZ will have a nice reserve, so it can keep the resort nice.