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

Kennith Bogan

Also: A apartment owner lives in a 125-unit local community, and was advised they require a site and should post specific official information. Have to they? And: An independent contractor/handyman does not lawfully want workman’s comp insurance policies. Is it okay to use him?

NAPLES, Fla. – Query: My homeowner’s affiliation is thinking about hosting a social party wherever there will be a 50/50 raffle. In essence, everyone who comes to the party will be questioned to donate a precise sum and a drawing is held for a winner. Half of the gathered funds go to the winner and the other 50 % goes to the affiliation to fund potential social functions. Is this lawful? – S.R., Delray Beach front

Response: Until your homeowner’s association qualifies as an “organization” beneath the applicable Florida regulation, it is illegal for your homeowner’s affiliation to conduct a 50/50 raffle. The applicable Florida legislation can be discovered in Portion 849.0935, Florida Statutes.

This law permits particular corporations to perform raffles this sort of as 50/50 raffles. Even so, the phrase “organization” is especially described as an group which is exempt from federal revenue taxation these kinds of as a 501(c)(3), (4), (7), (8), (10), and (19) group and which has a recent resolve letter from the IRS.

For organizations that qualify, any brochures, ads, notices, tickets or entry blanks employed in relationship with the raffle will have to conspicuously disclose:

  1. The regulations for the drawing
  2. The full title of the charitable business and its principal position of business
  3. The resource of the money utilized to award the dollars prize
  4. The day, hour, and spot in which the winner will be decided on, and the prize awarded
  5. That no order or contribution is necessary

Product e. previously mentioned can be tough. Although you cannot mandate that to enter the raffle you “must” fork out an entry rate, you may possibly “suggest” a minimal donation. Nonetheless, lawfully, if anyone wanted to enter for totally free or for fewer than the proposed bare minimum donation you ought to enable it.

I do not believe that your homeowner’s association would qualify under the definition of “organization” under Section 849.0935, Florida Statutes. Nonetheless, in get to make guaranteed, you should really consult with your legal counsel or accounting experienced. If it does not qualify, your homeowner’s association cannot legally carry out a 50/50 raffle.

Concern: Our homeowner’s association has an Architectural Assessment Board, ARB. The ARB’s responsibilities contain examining and approving or disapproving proposed architectural improvements inside our neighborhood. The ARB does not deliver notice to the group when they fulfill and they do not retain any minutes of their conference. Is this appropriate? – J.K., Hollywood

Reply: Chapter 720 is the Florida legislation that governs homeowner’s associations. Portion 720.303, Florida Statutes requires board of directors’ conferences to be observed at the very least 48 hrs prior to the meeting, open to all associates, apart from for minimal situation, and that minutes must be stored of all the board steps at the meeting.

These similar necessities implement to any committee or other equivalent human body vested with the ability to approve or disapprove architectural choices with regard to a specific good deal in a group. This suggests that your community’s ARB is required to detect its meetings, keep it open up to all customers of the neighborhood and to continue to keep minutes of its selections.

Query: Our condominium has 125 units. We are being instructed that we have to have an affiliation web-site and are needed to publish specific formal information on it. Is this real? – S.S, Plantation

Remedy: No that is not correct. Florida Statute 718.111(12)(g) gives that an association handling a condominium with 150 or far more units ought to have a website and article specific documents on it.

Considering that your condominium is significantly less that 150 models you are not essential by legislation to manage a web-site. Note that there is no internet site prerequisite for cooperatives of owners associations.

Question: Our association has a handyman that we often use as an unbiased contractor. It is only him and at times a helper. He does not have personnel payment insurance policies as he is lawfully exempt from remaining essential to have it.

Our management firm is telling us we should really not use this particular person if he is not insured. Our affiliation has its very own employees compensation insurance coverage and general legal responsibility so I am not positive I fully grasp the issue. What is your view on this topic? – A.C., Fort Lauderdale

Reply: Workers’ payment is a variety of insurance plan delivering wage substitute and healthcare benefits to employees wounded in the program of work in trade for mandatory relinquishment of the employee’s appropriate to sue his or her employer for the tort of negligence. So, staff compensations secure the employer not the affiliation specifically.

If an accident takes place you have common liability insurance to deal with the association, and if the person by some means could prove 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 worker will get damage and the employer is not nicely financed, the injured individual will only have 1 entity to sue, the affiliation.

If the employer has personnel payment, then some of the liability can be laid off on the employer and presumably much less on the affiliation. But an additional true trouble is that if the handyman leads to destruction to the association assets or injures a person, he has no common legal responsibility insurance policies to shell out for it.

For these motives, we do not advocate the association employ folks devoid of worker’s comp., even if not legally demanded, and undoubtedly not with out general legal responsibility protection.

The facts provided herein is for informational purposes only and need to not be construed as legal suggestions. The publication of this article does not produce an legal professional-shopper relationship among the reader and Goede, Adamczyk, DeBoest & Cross, or any of our lawyers. Readers should really not act or refrain from performing based upon the facts contained in this write-up with out very first calling an lawyer, if you have queries about any of the problems elevated herein. The employing of an attorney is a conclusion that should not be dependent only on adverts or this column.

© 2021 Journal Media Group. John C. Goede, Esq., is associate of the regulation company Goede, Adamczyk, DeBoest & Cross.

Next Post

Is 'Striketober' the moment construction unions have been waiting for?

Charles Krugel, a administration-facet labor attorney in Chicago, has been paying out a lot additional time currently resolving conflicts concerning his contractor clients and the labor unions that depict their staff. “In the previous, union get the job done was 10% or 15% of my exercise,” Krugel explained to Construction […]