Question: Can you tell me where to find the rules for an HOA regarding investments, such as (mutual funds or any type of investing that may put any of the principal balance at risk?
– K.M., Boca Raton
Answer: First step: Check your documents. As for the statutes, they are silent as to how an association may invest association funds. The corporate law places a fiduciary duty on the board, which is generally described as a legal or ethical relationship of trust between two or more parties. In most instances, the fiduciary takes care of money belonging to someone else, or an entity, and the fiduciary must use the utmost prudent care when handling money or assets belonging to another. The fiduciary duty requires the board to place the monies in a safe investment. The general guidelines of good business practice also dictate that the monies be readily available and not tied up in non-liquid investments.
I hope this helps. Thanks for asking.
Fred
Related Newsletter
The Importance of Modernizing Common Areas in Florida Condominium Buildings Guest contributor, Jeff Solomon In Florida’s competitive real estate landscape, the aesthetic and functional appeal of common areas in condominium buildings plays a critical role in attracting residents and maintaining property values. Common areas, such as lobbies, hallways, clubhouses, pools,...
At Gray Systems, we believe that learning shouldn’t end once you step out of the classroom. This blog allows Fred to share his expertise in the Community Association Management (CAM) and Contractor (CILB & ECLB) industries. It’s a place to discuss industry related trends, code changes, insight, and know-how.
We’re so excited to have you here! This is the start of something amazing, and we can’t wait for you to explore everything Let’s make your journey unforgettable!
Be the first to get exclusive offers and the latest news
Gray Systems, Inc.
138 E Central Ave
Howey-In-The-Hills, FL 34737
Monday to Thursday : 9 am - 5 pm EST Friday: 9 am - 3 pm EST
🎉 Woohoo! You’ve made the first step toward a stunning, custom-built website. We’re thrilled to craft a Florida-compliant site that’s uniquely yours.
Let’s create something extraordinary together!
🎉 Congratulations! Your journey toward a compliant and upgraded website begins now. With our Compliant Portal, we’re ready to take your existing site to the next level. Let’s do this!