Can an HOA President Spend Money Without Board Approval in Florida?

The president of a Florida HOA has no more inherent authority to spend the association's money than any other board member. This surprises people. The president runs meetings, signs documents the board has already approved, and serves as the face of the community — but there is nothing in Florida's Not For Profit Corporation Act or Chapter 720 that gives a board president any specific or inherent financial powers. If a power has not been conferred by the bylaws or a board resolution, it does not exist.

This matters because unauthorized spending is one of the most common sources of HOA fraud in Florida. A president who writes checks without board approval, redirects reserve funds, or hires contractors unilaterally is not just overstepping — they may be committing a crime. This guide covers the legal limits on presidential authority, what spending requires a vote, emergency exceptions, and the financial controls every Florida board should have in place.

The president has no inherent spending authority

Under Florida Statute 617.0841, each officer of a not-for-profit corporation has "the authority and shall perform the duties set forth in the bylaws or, to the extent consistent with the bylaws, the duties prescribed by the board of directors." That is the complete scope of the president's power — what the bylaws say, plus what the board explicitly delegates. Nothing more.

The Florida Condo & HOA Law Blog puts it plainly: "In the absence of the governing documents providing any designation of additional authority to a single director or officer such as the president, the default provisions of the law grant no additional authority to an individual board president to have unilateral powers over the affairs of the association."

This means:

• The president cannot sign checks unless the bylaws or a board resolution authorize it
• The president cannot hire or fire vendors without a board vote
• The president cannot approve invoices beyond what the board has specifically delegated
• The president cannot use association funds for any purpose not authorized by the budget or the board

What spending requires a board vote

The board of directors is the decision-making body of the association. Under Section 720.303(1), officers and directors have a fiduciary relationship to the members and are subject to the general standards in Section 617.0830 — meaning they must act in good faith, with ordinary prudence, and in the association's best interest.

In practice, the following spending decisions require a board vote at a properly noticed meeting:

The key principle: routine spending within an approved budget can be delegated, but anything outside the budget or above a defined threshold should come back to the full board.

What spending requires a member vote

Certain financial decisions are significant enough that even the board cannot act alone. Florida law requires a vote of the membership for:

Reserve fund reallocation

Section 720.303(6) is explicit: "Reserve funds and any interest accruing thereon shall remain in the reserve account or accounts and shall be used only for authorized reserve expenditures unless their use for other purposes is approved in advance by a majority vote at a meeting at which a quorum is present."

A president who redirects reserve funds to cover an operating shortfall — without a member vote — is violating Florida law. This is not a gray area.

Litigation exceeding $100,000

Under Section 720.303(1), litigation that the association reasonably expects to exceed $100,000 requires "the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained."

Special assessments

While special assessments are levied by the board, Section 720.306 requires 14 days' written notice to all members before any meeting at which assessments will be considered. A 30% quorum is required (unless bylaws set a lower threshold). No board member may vote by proxy or secret ballot on expenditure decisions.

Florida HOA spending authority operates on three tiers. Reserve fund reallocation and major litigation always require a member vote. Click to zoom.

Emergency spending: the one exception

Florida law does provide expanded financial authority during emergencies — but the threshold is specific and the authority belongs to the board, not the president individually.

Governor-declared emergencies (720.316)

Section 720.316 grants emergency powers only when the Governor declares a state of emergency under Section 252.36 covering the association's area. During a declared emergency, the board can:

• Levy special assessments without a member vote
• Borrow money and pledge association assets as collateral to fund emergency repairs
• Contract for services normally the owner's responsibility (debris removal, boarding windows, sanitizing)
• Implement disaster plans including shutting down utilities

This authority is "limited to that time reasonably necessary to protect the health, safety, and welfare of the association" and to mitigate further damage. It expires when the emergency is over.

Non-emergency "urgent" repairs

Florida statutes do not define a general emergency repair spending authority outside of Governor-declared emergencies. In practice, many bylaws grant the president or property manager authority to authorize urgent repairs (burst pipe, electrical hazard, safety threat) up to a dollar cap — commonly $2,500 to $10,000. This delegation should include:

• A specific dollar limit per incident
• A requirement to document the emergency with photos and invoices
• A written report to the board at the next meeting
• A limitation to repairs that prevent imminent harm or further damage

Competitive bidding requirements

Section 720.3055 requires competitive bidding for any contract that exceeds 10% of the association's total annual budget, including reserves. For a community with a $500,000 annual budget, that means any contract over $50,000 must be competitively bid.

Exemptions include:

• Employee contracts
• Professional services: attorneys, accountants, architects, community association managers, engineers, and landscape architects
• Emergency situations

The association is not required to accept the lowest bid — but it must solicit competitive proposals. A president who awards a $60,000 contract to a preferred vendor without soliciting bids has violated Florida law, regardless of whether the board approved the expenditure.

All bids must be retained as official records for at least one year under Section 720.303(4)(a)(9).

Six financial controls that every Florida HOA board should implement. The fidelity bond is required by statute — the rest are best practices that prevent fraud. Click to zoom.

Financial controls every board should implement

1. Dual signature requirements

Require two authorized signatures on every check or electronic transfer above a defined threshold — commonly $1,000 to $5,000. This single control would have prevented most of the fraud cases discussed below. The signers should include the treasurer plus one other officer, and the person who approves invoices should not be the same person who signs checks.

2. Tiered spending authority

Pass a board resolution that defines explicit spending tiers:

3. Fidelity bond (required by statute)

Section 720.3033(5) requires the association to maintain insurance or a fidelity bond for all persons who control or disburse funds. The coverage must equal the maximum funds in custody at any one time. This can only be waived by a majority vote of the entire membership — which boards should never allow.

4. Monthly financial review

At least two board members should independently review bank statements, credit card statements, and financial reports every month. This is separate from the annual audit. Catching unauthorized spending 30 days after it happens is far better than discovering it 18 months later — which is the average time before HOA fraud is detected.

5. No debit cards — credit cards with limits

Debit cards are now illegal for HOA transactions under HB 1203. Credit cards should have defined per-transaction and monthly limits, be issued only to specifically authorized individuals, and be reviewed by the board monthly. Every charge should map to an approved budget line item.

6. Annual financial reporting

Florida requires tiered financial reporting based on association revenue:

• Under $150,000: Cash receipts and expenditures report
• $150,000-$299,999: Compiled financial statements (CPA)
• $300,000-$499,999: Reviewed financial statements
• $500,000+ (or 1,000+ parcels): Audited financial statements

Reports must be completed within 90 days of fiscal year-end. Never waive the audit requirement — even though the law allows it by member vote.

When it goes wrong: real Florida cases

Every case below involves a president or officer who spent association money without proper authorization. The common thread: insufficient financial controls.

Gregori Arzumanov — Turnberry on the Green, Aventura ($1.5 million)

The president of this luxury condo association was charged with stealing over $1.5 million. Prosecutors allege he created a fictional security company and routed payments to bank accounts held in his deceased mother's name. Charges include racketeering, organized fraud, money laundering, grand theft, and credit card fraud. Bond: $350,000. The scheme ran for approximately four years before a forensic investigation uncovered it.

Montalvo Roberto Jr. — Miami-Dade ($15,000+)

An HOA president who had a plumbing contractor perform $3,150 in work on his sister's unit using association funds, then had the same contractor cash $12,500 in HOA checks for personal use. The sheriff's statement: "Mr. Montalvo used the power entrusted to him by the members of the association to embezzle their hard-earned funds." Charged with grand theft.

Tara Howie — Stonebridge Place, Orlando ($743,000 attempted)

This HOA president attempted to cash a $743,000 cashier's check drawn on the association's reserve account. The bank flagged the transaction and opened a fraud investigation. She had also been using HOA accounts to pay personal Amazon, Macy's, and phone bills. The reserve account was depleted from approximately $770,000 to under $670,000. She had prior New Jersey convictions for stealing $800,000 from guardianship wards.

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Property Exemption Team

Written and fact-checked using Florida Statutes Chapters 617, 718, and 720, Florida court records, and verified legal commentary. All legislative references verified against the 2024-2026 Florida Statutes. About Mosaic