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

Also: A apartment operator life in a 125-unit neighborhood, and was explained to they want a web-site and ought to post sure official records. Have to they? And: An impartial contractor/handyman doesn’t lawfully require workman’s comp insurance plan. Is it okay to use him?

NAPLES, Fla. – Query: My homeowner’s affiliation is thinking about internet hosting a social occasion in which there will be a 50/50 raffle. Fundamentally, all people who comes to the celebration will be questioned to donate a precise sum and a drawing is held for a winner. 50 percent of the collected cash go to the winner and the other fifty percent goes to the association to fund upcoming social gatherings. Is this authorized? – S.R., Delray Seaside

Remedy: Unless your homeowner’s association qualifies as an “organization” beneath the applicable Florida legislation, it is unlawful for your homeowner’s association to perform a 50/50 raffle. The applicable Florida legislation can be uncovered in Portion 849.0935, Florida Statutes.

This regulation will allow specified companies to carry out raffles such as 50/50 raffles. Even so, the phrase “organization” is exclusively outlined as an organization which is exempt from federal cash flow taxation such as a 501(c)(3), (4), (7), (8), (10), and (19) group and which has a existing resolve letter from the IRS.

For organizations that qualify, any brochures, advertisements, notices, tickets or entry blanks made use of in connection with the raffle must conspicuously disclose:

  1. The policies for the drawing
  2. The entire title of the charitable corporation and its principal spot of business
  3. The source of the resources applied to award the money prize
  4. The date, hour, and spot wherever the winner will be picked, and the prize awarded
  5. That no obtain or contribution is essential

Product e. earlier mentioned can be difficult. Whilst you can’t mandate that to enter the raffle you “must” spend an entry rate, you may possibly “suggest” a minimal donation. Even so, lawfully, if someone needed to enter for free or for considerably less than the prompt minimal donation you must allow it.

I do not believe that that your homeowner’s association would qualify beneath the definition of “organization” less than Area 849.0935, Florida Statutes. However, in get to make positive, you really should seek advice from your legal counsel or accounting qualified. If it does not qualify, your homeowner’s association can not lawfully carry out a 50/50 raffle.

Issue: Our homeowner’s affiliation has an Architectural Overview Board, ARB. The ARB’s duties involve reviewing and approving or disapproving proposed architectural improvements in our community. The ARB does not deliver see to the group when they meet and they do not continue to keep any minutes of their conference. Is this proper? – J.K., Hollywood

Remedy: Chapter 720 is the Florida legislation that governs homeowner’s associations. Part 720.303, Florida Statutes needs board of directors’ meetings to be found at minimum 48 hours prior to the meeting, open to all members, other than for restricted conditions, and that minutes must be retained of all the board actions at the conference.

These exact prerequisites utilize to any committee or other similar body vested with the ability to approve or disapprove architectural conclusions with respect to a distinct great deal in a local community. This indicates that your community’s ARB is necessary to discover its meetings, continue to keep it open up to all users of the group and to hold minutes of its conclusions.

Dilemma: Our condominium has 125 models. We are currently being informed that we should have an affiliation web page and are demanded to publish sure official records on it. Is this genuine? – S.S, Plantation

Reply: No that is not correct. Florida Statute 718.111(12)(g) gives that an affiliation managing a condominium with 150 or more models should have a site and publish sure files on it.

Because your condominium is a lot less that 150 models you are not essential by legislation to keep a web page. Note that there is no website requirement for cooperatives of householders associations.

Question: Our affiliation has a handyman that we often use as an independent contractor. It is only him and from time to time a helper. He does not have employees payment insurance policies as he is lawfully exempt from currently being demanded to carry it.

Our administration company is telling us we should really not use this man or woman if he is not insured. Our affiliation has its very own workers payment insurance coverage and general legal responsibility so I am not positive I recognize the difficulty. What is your impression on this subject? – A.C., Fort Lauderdale

Response: Workers’ compensation is a kind of insurance offering wage alternative and healthcare positive aspects to workers wounded in the class of work in trade for necessary relinquishment of the employee’s ideal to sue his or her employer for the tort of negligence. So, personnel compensations guard the employer not the affiliation straight.

If an accident occurs you have general liability insurance to address the affiliation, and if the individual in some way could show he was an personnel of the association, that is what the association’s workers payment is for.

The downside of the employer not having worker’s compensation is that if the worker receives harm and the employer is not properly financed, the injured individual will only have one entity to sue, the association.

If the employer has staff compensation, then some of the legal responsibility can be laid off on the employer and presumably significantly less on the association. But one more serious challenge is that if the handyman triggers damage to the affiliation home or injures someone, he has no standard legal responsibility insurance policies to shell out for it.

For individuals explanations, we do not advise the association use persons without having worker’s comp., even if not legally necessary, and certainly not without the need of typical liability protection.

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© 2021 Journal Media Group. John C. Goede, Esq., is partner of the law organization Goede, Adamczyk, DeBoest & Cross.