'Shocking': Florida homeowners say their HOA cut them out of a $2.1M project — is your board following the rules?

​As WKMG News 6 reported, this issue began a few months prior when residents received a notice claiming they’d have to pay over $13,000 each in a special assessment for roof replacements. With 160 units, the project was expected to cost about $2.1 million.

​Longtime homeowner Kenneth Yuret complained that getting a new roof wasn’t really necessary, telling News 6 that his roof was “in great condition.”

​But the issue wasn’t so much the need — or lack thereof — for the multimillion-dollar project. The problem is what the HOA and the management company, Beacon Community Management, allegedly did behind the scenes.

​Although the HOA held an open meeting on June 22 to vote on the special assessment, Yuret found a document dated June 10 showing a $232,000 deposit to a roofing contractor. In their lawsuit, homeowners allege the June 22 meeting was a “sham.”

“This is the smoking gun,” Yuret told News 6, referring to the check. “It was shocking.”

Homeowners also allege the HOA board and Beacon Community Management are under criminal investigation for financial irregularities and fraud in a separate case.

Orlando police confirmed to News 6 that there is an active criminal investigation but did not provide details.

​Ironically, the “sense of security” from HOAs was a major reason Yuret moved to The Vistas nearly 20 years ago. He said, however, that “when it falls in the wrong hands, that is when we can have a problem and we do.”

​Moneywise reached out to Beacon Community Management for further comment, but we didn’t hear back by the time of publication.

​What do Florida’s statutes say about HOAs?

​Since there isn’t one comprehensive set of federal HOA laws, proving bad behavior comes down to reviewing a state’s HOA statutes and the association’s governing documents.

​In this case, homeowners allege violations of Florida law. In the state, Florida Statute 720.303 lists the proper protocols for an HOA.

​Regarding special assessments, this statute states, “An assessment may not be levied at a board meeting unless the notice of the meeting includes a statement that assessments will be considered and the nature of the assessments.” Florida law also requires these notices to go out no less than 14 days before the open meeting.

​The statute also outlines the decision-making process, stating that “m[a]eetings of the board must be open to all members” except for a few circumstances involving the board and its attorney. The legal code goes on to say that these provisions “apply to the meetings of any committee or other similar body when a final decision will be made regarding the expenditure of association funds.”

​Another potentially relevant point that might help prove the homeowners’ case is that HOA leaders, such as “officers and directors[b],” have a “fiduciary relationship” with their communities. In other words, the HOA has to constantly act in the association’s best financial interests.

​Whether the court agrees that The Vistas’ management shirked Florida’s statutes remains to be seen. However, news of this alleged $232,000 deposit raises unsettling questions for anyone living with an HOA.