There are there main factors that contribute to the prevalence of HOA corruption in South Florida:
1. Lack of Transparency and Accountability: HOAs often operate with limited transparency, making it difficult for Members to monitor how their dues are being spent. This lack of oversight can create opportunities for corruption.
In the last five years, Garden Patio Villas became 100% transparent by having meeting minutes and financial reports available on our website. The Board works online to save all paperwork, invoice and receipts. Any request for transparency and accountability is easily met within 24 hours or shortly there after.
2. Weak Regulations: While Florida has enacted some new Condo and HOA regulations, they may not be sufficient to prevent corruption. Some argue that these regulations are not enforced strictly enough, allowing for loopholes and abuse.
Garden Patio Villas follows our Governing Documents, Rules & Regulations and Florida Statutes 720. Board of Directors are required to work together as a team. “Two eyes are better than one!”
The phrase “two eyes are better than one” is a common proverb that means having a second opinion or perspective to be beneficial. It’s often used in situations where multiple viewpoints can lead to a better understanding or solution. Here are some of the ways the Board at Garden Patio Villas applies this idea:
3. Financial Incentives: HOAs often handle significant amounts of money, which can be tempting for those in positions of power. This financial incentive can lead to corruption, especially if there are weak checks and balances in place.
Garden Patio Villas has strong checks and balances to our finances. In 2021, the Board began using software that integrates with our bank account for all HOA maintenance fees and miscellaneous income and payments. The software can also create reports for the Board and for all Members of the Association. Our Treasurer follows it closely and must work every week to make sure our finances are being created and updated correctly.
Unfortunately, the factors listed above contribute to a climate where corruption can flourish and soon after, you hear about it in the news. The good news is that not all HOAs in South Florida are corrupt!
Members should protect themselves by staying informed, attending HOA meetings or reading meeting minutes, and looking at financial reports to see how your HOA dues are spent. You can also encourage the Board of Directors of Garden Patio Villas to continue showing transparency and being a part of our HOA governance.