Home Business Informer

Is it legal for a Home Owner’s Association to pass an assessment onto the membership to buy a business?

My HOA wants to buy the golf course which it’s located, but we’re told we can never get our mony back or receive any profits since we’re non-profit.

In order to buy a business or neighboring property- in the state of FL – would require a membership meeting (such as an annual meeting) where 2/3 membership vote to approve the purchase- then yes a special assessment can be passed to all members- whether or not they approved of the purchase and it is an assessment that can procure a lien if not paid.

HOA are mostly not for profit organizations. This means that they run on a zero based budget- all monies collected are used to maintain the association. And no you wouldn’t get any money back after the purchase and your Assessment may increase to care for the maintenance of the golf course (which can be expensive). Or the course can be sold to someone other business and become a public course- for which the Association as no input – and they can (the new buyer) can charge whatever fees they want to or if zones to build- remove the course and build a business or complex that may hinder your property values.

However- the HOA can make this a public course and charge moderate fees for membership to cover the new expenses associated with the course and a lesser membership fee to those in the HOA- This would increase property values

JavaFit Coffee Gives Back Program for Non Profit Organizations / Fund Raisers