There are so many ways a developer can build a community:
1.
The developer can build separate buildings but record only one
declaration of condominium that all units are governed by. In
that case, there would be only one condominium and only one
condominium association.
2.
The developer can build multiple buildings, make each one a
separate condominium, and create a separate condominium
association for each building.
3.
The developer can build multiple buildings, make each one a
separate condominium, but have all the buildings governed by
only one board of directors and one condominium association.
This is called a multi-condominium. It simply means one
condominium association being responsible for more than one
condominium.
There are far more multi-condominiums than there should be.
They are difficult to manage and often times misunderstood.
Some basics:
a.
There is only one board of directors because there is typically
one association. However, there may be an additional master
association.
b.
Each specific condominium must have its own annual budget. The
budget gets passed by the board. However, only the people who
own in that specific condominium get to vote on waiving reserves
in the budget. Furthermore, included in each condominium’s
budget is a line item for the expenses that all of the
condominiums share for any shared facilities.
c.
Each condominium has its own declaration of condominium. This
means that one building may make amendments to their declaration
that have no effect in neighboring buildings.
d.
The finances of each condominium must be separately accounted
for. This becomes very problematic when all the monies are
comingled in one bank account. In fact, , it is possible for
one condominium to underfund what their owners must pay, causing
other owners in other condominiums to pay their bills. This is
why, in a multi condominium, I recommend separate bank accounts
for each condominium.
e.
The expenses of that particular condominium are to be paid
solely by the owners in that condominium. For example, should
the roof blow off, only the people in that condominium pay to
replace it.
It is often times a confusing process to manage a
multi-condominium. I have seen the most experienced managers
and attorneys struggle with this often confusing concept.
If you are on a Board and hate the multi-condominium concept,
there may be hope. Florida Statute 718.110 (6) states:
Notwithstanding any provision of this chapter, an association
may operate two or more residential condominiums in which the
initial condominium declaration was recorded prior to January 1,
1977, and may continue to so operate such condominiums as a
single condominium for purposes of financial matters, including
budgets, assessments, accounting, recordkeeping, and similar
matters, if provision is made for such consolidated operation in
the applicable declarations of each such condominium or in the
bylaws. An association for such condominiums may also provide
for consolidated financial operation as described in this
section either by amending its declaration pursuant to s.
718.110(1)(a) or by amending its bylaws and having the amendment
approved by not less than two-thirds of the total voting
interests.
If your multi-condo was created after 1977, it is next to
impossible to operate as a single condominium. You would have
to merge the condominiums and besides obtaining a super-majority
vote of the owners, you would need the consent of all lien
holders.
Developers would do us all a favor by abandoning the
multi-condominium concept.