Condo Q&A: Is It Legal for HOAs to Have 50/50 Raffles?

Also: A apartment owner life in a 125-device neighborhood, and was advised they have to have a web-site and will have to post specified formal documents. Ought to they? And: An unbiased contractor/handyman doesn’t legally need workman’s comp insurance. Is it okay to use him?

NAPLES, Fla. – Concern: My homeowner’s affiliation is contemplating web hosting a social party the place there will be a 50/50 raffle. Essentially, every person who comes to the event will be asked to donate a certain amount of money and a drawing is held for a winner. 50 % of the gathered money go to the winner and the other fifty percent goes to the affiliation to fund potential social activities. Is this lawful? – S.R., Delray Seaside

Respond to: Unless of course your homeowner’s affiliation qualifies as an “organization” below the relevant Florida legislation, it is illegal for your homeowner’s association to conduct a 50/50 raffle. The relevant Florida law can be discovered in Segment 849.0935, Florida Statutes.

This regulation will allow selected companies to conduct raffles this sort of as 50/50 raffles. Even so, the phrase “organization” is especially defined as an business which is exempt from federal profits taxation this kind of as a 501(c)(3), (4), (7), (8), (10), and (19) group and which has a latest dedication letter from the IRS.

For businesses that qualify, any brochures, advertisements, notices, tickets or entry blanks made use of in relationship with the raffle will have to conspicuously disclose:

  1. The principles for the drawing
  2. The total name of the charitable corporation and its principal put of business enterprise
  3. The resource of the resources utilised to award the money prize
  4. The date, hour, and put where the winner will be chosen, and the prize awarded
  5. That no obtain or contribution is essential

Product e. earlier mentioned can be tough. Whilst you are not able to mandate that to enter the raffle you “must” pay back an entry charge, you may possibly “suggest” a minimal donation. Nevertheless, legally, if someone desired to enter for free or for much less than the prompt minimum amount donation you ought to enable it.

I do not believe that that your homeowner’s association would qualify below the definition of “organization” beneath Area 849.0935, Florida Statutes. Having said that, in order to make absolutely sure, you should seek advice from your legal counsel or accounting specialist. If it does not qualify, your homeowner’s affiliation are not able to lawfully perform a 50/50 raffle.

Problem: Our homeowner’s affiliation has an Architectural Evaluate Board, ARB. The ARB’s tasks include things like examining and approving or disapproving proposed architectural adjustments in just our group. The ARB does not give notice to the community when they meet up with and they do not continue to keep any minutes of their conference. Is this good? – J.K., Hollywood

Remedy: Chapter 720 is the Florida regulation that governs homeowner’s associations. Area 720.303, Florida Statutes requires board of directors’ meetings to be observed at least 48 several hours prior to the conference, open to all customers, besides for limited instances, and that minutes will have to be retained of all the board actions at the conference.

These very same needs utilize to any committee or other very similar entire body vested with the electricity to approve or disapprove architectural choices with regard to a unique ton in a group. This signifies that your community’s ARB is needed to detect its conferences, retain it open up to all customers of the neighborhood and to retain minutes of its choices.

Concern: Our condominium has 125 models. We are currently being told that we need to have an affiliation web site and are necessary to publish sure formal data on it. Is this genuine? – S.S, Plantation

Solution: No that is not real. Florida Statute 718.111(12)(g) supplies that an affiliation managing a condominium with 150 or extra units will have to have a web site and publish specific files on it.

Given that your condominium is fewer that 150 models you are not expected by legislation to keep a site. Be aware that there is no web-site prerequisite for cooperatives of householders associations.

Concern: Our association has a handyman that we often use as an impartial contractor. It is only him and sometimes a helper. He does not have personnel payment insurance as he is legally exempt from getting expected to carry it.

Our administration company is telling us we need to not use this particular person if he is not insured. Our association has its individual employees payment insurance plan and typical legal responsibility so I am not certain I realize the issue. What is your opinion on this subject? – A.C., Fort Lauderdale

Solution: Workers’ payment is a form of coverage offering wage alternative and healthcare rewards to employees wounded in the program of work in trade for obligatory relinquishment of the employee’s ideal to sue his or her employer for the tort of carelessness. So, workers compensations secure the employer not the association immediately.

If an accident occurs you have basic legal responsibility insurance plan to include the affiliation, and if the particular person in some way could confirm he was an personnel of the affiliation, that is what the association’s personnel payment is for.

The downside of the employer not acquiring worker’s compensation is that if the employee receives damage and the employer is not effectively financed, the hurt person will only have a person entity to sue, the association.

If the employer has workers payment, then some of the liability can be laid off on the employer and presumably fewer on the affiliation. But a further serious problem is that if the handyman will cause problems to the association property or injures another person, he has no common liability insurance plan to spend for it.

For those causes, we do not propose the association employ the service of persons devoid of worker’s comp., even if not legally demanded, and undoubtedly not without typical liability protection.

The information and facts provided herein is for informational applications only and should really not be construed as lawful advice. The publication of this short article does not develop an legal professional-customer marriage between the reader and Goede, Adamczyk, DeBoest & Cross, or any of our attorneys. Readers must not act or chorus from acting based upon the info contained in this short article without initially speaking to an attorney, if you have thoughts about any of the difficulties raised herein. The selecting of an legal professional is a choice that need to not be based entirely on commercials or this column.

© 2021 Journal Media Team. John C. Goede, Esq., is companion of the regulation organization Goede, Adamczyk, DeBoest & Cross.

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