June 15, 2024


Living – be prepared

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

5 min read

Also: A rental operator lives in a 125-device community, and was explained to they require a web-site and must post certain official information. Must they? And: An impartial contractor/handyman doesn’t legally need to have workman’s comp coverage. Is it ok to use him?

NAPLES, Fla. – Query: My homeowner’s association is thinking of web hosting a social function where by there will be a 50/50 raffle. Mainly, every person who comes to the celebration will be requested to donate a unique volume and a drawing is held for a winner. 50 % of the gathered money go to the winner and the other 50 percent goes to the affiliation to fund long term social activities. Is this authorized? – S.R., Delray Beach

Reply: Except if your homeowner’s association qualifies as an “organization” less than the applicable Florida regulation, it is unlawful for your homeowner’s affiliation to carry out a 50/50 raffle. The relevant Florida legislation can be found in Portion 849.0935, Florida Statutes.

This law enables selected organizations to conduct raffles these as 50/50 raffles. Having said that, the phrase “organization” is specially described as an firm which is exempt from federal revenue taxation these as a 501(c)(3), (4), (7), (8), (10), and (19) corporation and which has a present determination letter from the IRS.

For businesses that qualify, any brochures, ads, notices, tickets or entry blanks utilised in connection with the raffle need to conspicuously disclose:

  1. The policies for the drawing
  2. The entire name of the charitable group and its principal place of business
  3. The source of the cash made use of to award the dollars prize
  4. The date, hour, and spot in which the winner will be decided on, and the prize awarded
  5. That no invest in or contribution is vital

Item e. over can be tough. Though you are not able to mandate that to enter the raffle you “must” pay out an entry fee, you may perhaps “suggest” a minimal donation. Having said that, lawfully, if a person needed to enter for free of charge or for fewer than the advised least donation you will have to permit it.

I do not imagine that your homeowner’s affiliation would qualify less than the definition of “organization” underneath Part 849.0935, Florida Statutes. Nonetheless, in purchase to make sure, you should really consult your legal counsel or accounting experienced. If it does not qualify, your homeowner’s association cannot legally conduct a 50/50 raffle.

Question: Our homeowner’s association has an Architectural Assessment Board, ARB. The ARB’s tasks contain examining and approving or disapproving proposed architectural adjustments within our group. The ARB does not give detect to the community when they satisfy and they do not retain any minutes of their meeting. Is this correct? – J.K., Hollywood

Respond to: Chapter 720 is the Florida regulation that governs homeowner’s associations. Area 720.303, Florida Statutes demands board of directors’ meetings to be observed at least 48 hours prior to the conference, open to all customers, apart from for restricted circumstances, and that minutes ought to be retained of all the board steps at the meeting.

These same demands implement to any committee or other similar human body vested with the electric power to approve or disapprove architectural decisions with respect to a specific good deal in a neighborhood. This implies that your community’s ARB is required to discover its meetings, maintain it open up to all associates of the neighborhood and to hold minutes of its selections.

Question: Our condominium has 125 units. We are staying advised that we need to have an affiliation site and are required to put up particular official data on it. Is this correct? – S.S, Plantation

Answer: No that is not legitimate. Florida Statute 718.111(12)(g) provides that an association taking care of a condominium with 150 or additional models should have a internet site and write-up specific files on it.

Given that your condominium is a lot less that 150 models you are not needed by law to retain a website. Note that there is no web site need for cooperatives of owners associations.

Issue: Our association has a handyman that we consistently use as an independent contractor. It is only him and occasionally a helper. He does not have personnel payment insurance plan as he is legally exempt from currently being essential to carry it.

Our management firm is telling us we must not use this person if he is not insured. Our affiliation has its personal personnel payment insurance policy and standard liability so I am not positive I understand the trouble. What is your viewpoint on this matter? – A.C., Fort Lauderdale

Respond to: Workers’ compensation is a form of insurance policies delivering wage substitution and professional medical positive aspects to workforce injured in the course of work in trade for required relinquishment of the employee’s proper to sue his or her employer for the tort of negligence. So, staff compensations safeguard the employer not the association instantly.

If an incident happens you have general legal responsibility insurance policies to go over the association, and if the individual somehow could prove he was an personnel of the association, that is what the association’s workers compensation is for.

The downside of the employer not acquiring worker’s compensation is that if the staff receives harm and the employer is not well financed, the wounded human being 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 considerably less on the association. But an additional true challenge is that if the handyman triggers injury to the association property or injures an individual, he has no typical liability insurance coverage to spend for it.

For those explanations, we do not advise the affiliation use individuals devoid of worker’s comp., even if not lawfully necessary, and absolutely not with out basic liability coverage.

The information offered herein is for informational purposes only and should really not be construed as authorized guidance. The publication of this short article does not produce an legal professional-consumer relationship involving the reader and Goede, Adamczyk, DeBoest & Cross, or any of our lawyers. Viewers ought to not act or refrain from acting centered on the info contained in this report without the need of to start with contacting an lawyer, if you have questions about any of the challenges lifted herein. The employing of an attorney is a selection that should really not be dependent solely on ads or this column.

© 2021 Journal Media Group. John C. Goede, Esq., is husband or wife of the regulation organization Goede, Adamczyk, DeBoest & Cross.

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