30 12, 2019

Can Your Community’s Developer Use HOA Capital Contributions Collected at Closings to Offset the Developer’s Deficit Funding Obligation?

Capital Contributions, Community Association, Deficit Funding, Governing Documents, Homeowners Association, Legislation|

Many communities impose a capital contribution (sometimes called an initiation fee) on new owners. This is a one-time, nonrefundable fee paid by the buyer at closing. These fees usually go into a special account used to fund capital improvements and repairs in the community. Both Fla. Stat. §720.308(6) and §720.308(4)(b), prohibit a developer from using