An Orlando homeowner says he was told to pay more than $13,000 for a new roof he believes his townhome doesn’t need. And when he looked through his homeowners association’s financial records, he found a check for $232,000 that appeared to have been issued before the board voted on the project.
Kenneth Yuret, who has owned his unit in the Vistas at Phillips Commons community for 20 years, is now among a group of homeowners suing the association and its property management company over the roofing project.
The dispute centers on whether the work and the special assessment used to pay for it were properly approved.
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Homeowners doubt when the roofing deal was made
Earlier this year, residents of the 160-unit townhome community in Orlando’s Dr. Phillips area were told they could each face a special assessment of $13,157.73 to help cover the roof replacement. A meeting notice Yuret provided to WKMG News 6 said the total assessment would be approximately $2.1 million.
Yuret told local station News 6 that his roof was in “great condition” and he believed it was still years away from needing any repairs.
At a June 22 meeting attended by around 100 residents, the HOA board discussed the assessment and roofing project and selected a contractor. But after requesting the association’s records, Yuret said he found something that didn’t seem to line up with the timeline.
The records showed a $232,000 deposit check had been issued to the contractor on June 10 — 12 days before the meeting took place.
Yuret and other homeowners allege in a lawsuit filed in Florida’s Orange County that the meeting was effectively a “sham,” arguing the contract had already been signed and association money paid out before members had a proper opportunity to weigh in.
“This [deposit check] is the smoking gun,” Yuret told News 6. “It was shocking.”
The lawsuit names the HOA and Beacon Community Management Inc., alleging they violated Florida law by entering into the roofing contract and disbursing funds without a properly noticed, open board meeting and lawful vote. The allegations have not been proven in court.
Florida law generally requires HOA board meetings to be open to members and sets out notice requirements for meetings where special assessments will be considered.
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What homeowners can do if they question an HOA assessment
A special assessment can mean a bill for thousands of dollars on top of regular HOA fees, so homeowners have a reason to ask questions about what they’re paying for and how the board arrived at the amount.
If a charge doesn’t seem right, look back at the notice sent to residents and the minutes from the meeting where it was discussed. Your HOA’s governing documents can also spell out how decisions like these are supposed to be made. Depending on state law, homeowners may be able to request financial records and vendor contracts to see when the work was approved and when payments were made.
That’s what Yuret said he did when he went through the association’s records and found the deposit check.
The rules aren’t the same everywhere, however. In Florida, Statute 720.303 covers open board meetings, access to records, and notice requirements. If you’re still concerned after reviewing the paperwork, a lawyer who handles HOA disputes can help explain your options.
Orlando police have confirmed they’re investigating the matter, but haven’t released further details. The lawsuit also alleges, per News 6, that the HOA board and Beacon Community Management are under investigation in a separate case involving suspected financial irregularities and fraud.
The HOA board president referred News 6’s questions to the association’s attorney, who had not responded to multiple requests for comment. Beacon Community Management also did not respond to Moneywise’s requests for comment.
Yuret says he’s not giving up his fight against the assessment and roofing project. He told News 6 he moved into an HOA community because he liked the sense of security it offered when things were being run properly, and wanted the rules enforced.
“It’s a sense of security when everything is in order, but when it falls in the wrong hands, that is when we can have a problem and we do,” he told the outlet.
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Laura Grande is a freelance contributor with nearly 15 years of industry experience. Throughout her career she's written about and edited a range of topics, from personal finance and politics to health and pop culture.
