Florida Statute 617 regulates not for profit incorporations, Floridas Statute 718 regulates condo associations and homeowners associations among other things.
The big difference is that under 718 there are regulators who can and do enforce the rules and provide a venue for dissatisfied owners to file complaints. Under 617 there is no such mechanism. Disputes in not for profit organizations have only one recourse to settle complaints; institute legal proceedings.
It's a glaring fault in the system of management of condo associations. Executives knowing that most people are unwilling or unable to commence legal proceedings slip through the cracks and avoid any regulation or scrutiny by the state. When bylaws are broken or expenditures are made that are questionable there is not a lot anyone can do., other than hiring lawyers and filing proceedings. The advantage in this game goes to the executives who employ defense lawyers with money gleaned from the very people who are suing them, and if there is any monetary judgement awarded to the plaintiffs the executives are covered by insurance that pays the penalties on their behalf. It's a perilous situation for owners who can be assessed legal fees for both sides if they lose their lawsuit. The result is that associations like UCO, who are governed by statute 617 have little to fear and are free to do pretty much whatever they like.
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