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Articles Posted in Board Service

Marc-Smiley-SRHL-law-200x300The firm’s latest Miami Herald “Real Estate Counselor” column was authored by partner Marc A. Smiley and appears in today’s edition of the newspaper.  The article, which is titled “Harassment Reports, Video Voyeurism by Association Presidents Highlight Need for Vigilance,” focuses on the takeaways for community associations and their owner members from two recent cases of horrific behaviors by association and co-op presidents.  Marc’s column reads:

. . . The first report by South Florida’s Local 10 News focused on the president of a co-op building who was caught on camera verbally abusing a resident. Larry Reinfeld, the president of Building V in Ro-Len Lake Gardens in Hallandale Beach, has since been hit with a restraining order barring him from having any contact with a resident or coming within 5 feet of her apartment.

Two videos of Reinfeld’s behavior were shared with the station’s reporter. In one, he is seen calling a resident a profane name as she walks by him, asking her if he is blocking the walkway. MSmiley-3-12-23-clip-for-blog-102x300Dispatch records show she called police after Reinfeld allegedly asked her as she walked to her car: “Are you paranoid enough?”

Residents told the reporter that such behavior is not unusual for Reinfeld. One says she brought it to the attention of the building’s vice president, who told her she should just keep her door shut and her blinds closed.

“I even put it in writing to the association, and they did nothing,” she states.

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Serving as a member of your community association’s board of directors can be a thankless job. Preserving and maintaining an enclave’s property values requires making difficult decisions occasionally and consistent rules enforcement, which can lead to some disputes from time to time.

However, in my 22 years of experience working closely with association directors, I have found that most feel a strong sense of fulfillment and pride from the important work that they are doing for their communities. By answering the call of board service, they are taking on the vital functions of community administration and working to effectively maintain, repair and improve the governed property while preserving harmony within the community, with the aim of maximizing the property values of all owners within the community.

meet-300x166The requirements for being a board member in Florida are such that most home and condominium owners qualify. The minimum standards for board service include: being 18 years of age or older; not having been convicted of a felony without voting rights having been restored; not being delinquent in payment of assessments due to the association (candidates for board positions cannot be delinquent on assessment payment obligations, and sitting directors become ineligible to retain office if more than 90 days delinquent in payment of assessments to association); and taking a state-mandated certification course or signing a certification document within 90 days of taking office. In addition, some communities may have their own eligibility criteria, such as having to be an owner of a home or unit within the community.

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A well-functioning community association board requires dedicated directors who are all doing their part to help make their enclave the best it could possibly be. Each of a board’s members and officers, which generally include the president, vice president, treasurer and secretary, play vital roles and make essential contributions to the administrative and financial wellbeing of their association.

With that in mind, the office which is often perceived to be most important is that of the association president. While the individual serving in such capacity may not cast a vote having a greater weight than other directors or officers, the president may set the tone for a well operated community or for one that leaves room for improvement.

Firstly, the president is generally required to sign many legal documents and official association records such as new amendments and contracts. As such, they should be very involved in the work that goes into the development of all the important documents and records, so they know exactly what they are signing – and so as to possess individual knowledge as to the purpose and consequence of each in order to be able to respond to any potential member inquiries about them.

Board-pres-300x150Additionally, while the oversight of association budgetary and financial matters primarily goes to the treasurer, the president is usually very much involved in all major financial matters and often plays a lead role in vetting and approving any emergency expenses that may arise. That is one of the reasons why successful community association presidents should be versatile, possess a broad knowledge of association concerns, and be able to dedicate the time necessary to focus on such tasks.

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Florida community associations are required to keep certain records and make them available to all their members, so the position of secretary as the official record keeper of an association is of vital importance.

The most effective association secretaries are typically detail oriented, highly organized, efficient, and responsive.  They must be able to coordinate records and communications with property management and the other members of the board, executive committee, and other association committees.

Strong writers and communicators often do well in the position.  Secretaries are responsible for keeping the “meeting minutes” for all official association board meetings, so they must be able to listen closely to detailed discussions and distill them into clear and concise summaries.  The best ones understand that these minutes must be accurate yet concise.  They are not meant to document everything that everyone said at the meetings, but rather to list the topics and reports that were discussed, and all the actions taken.

Community association secretaries should understand that the focus of the meeting minutes must be on recording all votes and decisions.  They need only include a summary of the discussions, with a complete and accurate listing of the motions made and the resulting votes.

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Michael-Hyman-srhl-lawThe firm’s latest Miami Herald “Real Estate Counselor” column authored by Michael L. Hyman appears in today’s Neighbors section and is titled “What Are Some Common Traits of Excellent Community Association Boards of Directors.”  The article discusses how Michael realized from the start of his work with associations more than 50 years ago that the decisions of these boards, which are of momentous significance for the administrative and financial well-being of their communities, are sometimes influenced by the petty whims and infighting of some of their directors. His article reads:

. . . Boards of directors often fall into one of three categories:

The Autocrat: These associations are ruled by a president who has typically served in the position for many years. Everything the president wants, they get; everything they are against has no shot. The other board members are happy to follow along and not rock the boat.

Herald-clip-for-blog-5-8-22-103x300The Fence Sitters: These boards’ votes are almost always split decisions with a swing-vote in the middle, and they typically deliberate for a very long time before making any decisions. Sometimes for issues involving pressing matters, they may even kick the can down the road rather than making a difficult decision.

The Varsity Team: These boards of directors are typically comprised of experienced board members who, for the most part, see eye to eye on many important issues and decisions. They listen to experts, discuss and weigh their options together with all the interested unit owners at the board meetings, and always make decisions that are in the best interests of their communities.

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Without a doubt, the tragic disaster of the collapse in Surfside, Fla., has impacted condominium association boards of directors across the country. In addition to board members’ grief for the 98 victims who lost their lives and their loved ones, many condominium directors have also grown concerned over the news of numerous lawsuits against the association for the Champlain Towers South. They are wondering whether the association’s directors or their estates may now face legal consequences and liabilities, and if perhaps the lawsuits are an indicator that they themselves are potentially taking on serious liabilities with their voluntary board service.

In response to the misconceptions that are now circulating amongst board members and those who may be considering serving on associations’ boards, they should be aware that there are several reasons why they should not be so concerned about potential legal liabilities. On the contrary, the collapse of the tower should serve as a call to action for unit owners to become more involved and take on the responsibilities of becoming a director.

meet-300x166Board members are shielded from liability under a community’s Directors and Officers insurance, which defends and protects them from lawsuits, in addition to the indemnification provisions of the articles of incorporation of their association and the Florida laws governing not-for-profit corporations.

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Amendments to the Florida Condominium Act enacted in 2018 provide that association board members may not serve more than eight consecutive years, unless they are elected by more than two-thirds of the voting membership or there are not enough eligible candidates to fill the board vacancies at the time of the election.

The initial guidance from the Florida Division of Condominiums, Timeshares and Mobile Homes under the Department of Business and Professional Regulation was unclear, but last summer it concluded that years of board service prior to the date that the law went into effect in July of 2018 did not count towards the eight years of consecutive service precluded by the new law.

dbprlogo-300x170Essentially, this means that only condo association board members who serve eight consecutive years starting in or after July 2018 will be disqualified from additional service unless the specific exemptions are met.  This clarification by the Division of Condominiums has helped to allay concerns by association boards with long-term members from prior to 2018, as those directors will have at least five more years of eligible service.

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Michael-Hyman-srhl-lawAn article authored by the firm’s Michael L. Hyman was featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Injunction Petition Against Ornery Condo Resident Sends Important Message,” focuses on a recent petition for an injunction stemming from pre-pandemic confrontations between a current and a former community association board member.  Michael writes that the case illustrates how associations and their directors should proactively address bellicose residents.  His article reads:

. . . The initial incident that led to the petition for the injunction, which was granted by the circuit court but eventually overturned on appeal, took place at a Broward County condominium in December 2018. That was when Patrick Gagnon, a member of the community’s board of directors, was accosted by prior board member Joseph Cash. A second incident later in the same month involved Cash allegedly yelling at Gagnon, calling him a liar and cursing at him.

dbr-logo-300x57Two months later in February 2019, Gagnon alleged that Cash confronted him two times, 45 minutes apart, yelling and cursing about new trees installed by the association that blocked the view from his condominium.

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The contentious presidential election and political divisiveness of the months leading up to it caused the Community Associations Institute, the leading organization which represents the interests of communities with associations, to issue an important reminder. In its blogs and emails, CAI recently appealed to communities to promote civility and unity by adopting the organization’s Community Association Civility Pledge, which is a commitment to the following principles:

  • Each individual must be accountable for his or her own actions and words.
  • All interactions in the community should be civil despite any differences of opinion on a particular issue.
  • A vow to respect all points of view and strive to provide a reasonable opportunity for all to express their views openly.
  • Residents are engaged and informed.
  • Residents review CAI’s Rights and Responsibilities for Better Communities.

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The new post-pandemic normal includes many changes that affect how communities operate, and a recent national survey conducted by the Foundation for Community Association Research serves as a timely reminder that Americans are overwhelmingly satisfied with their HOAs and condominium associations.  The biennial nationwide survey conducted by Zogby Analytics is aimed at providing a better understanding of the experience of homeowners who live in communities with associations.

The 2020 homeowner satisfaction survey reveals that nearly 90 percent of those who live in communities with associations rate their overall experience as either very good (40 percent), good (30 percent) or neutral (19 percent).  Nearly three-quarters of the respondents have attended board meetings, 71 percent believe their community’s rules help to protect and enhance property values, and 62 percent say they are paying the correct amount in assessments.

CAI-research-300x169The respondents noted such association benefits as cleanliness and attractiveness, maintenance-free living, neighborhood safety, and maintaining property values as being among their most important advantages.  The results for 2020 even saw an increase in satisfaction and appreciation of community association rules (four percent) and the role of the board of directors (five percent) over those of the 2018 survey.

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