Board Service

August 26, 2019

Community Association Board Transitions Can Present Added Challenges During Difficult Times

by Laura Manning-Hudson

Laura Manning-Hudson

Changes and shakeups on community association boards of directors are common in Florida, and since the legislature has imposed term limits for association directors, communities are likely to see an even greater level of transitions to new board members in the years to come.

While it is still common to see the same directors serve year after year on association boards – mainly due to lack of participation – this practice does not present an ideal scenario for change. In a perfect world, board transitions should take place incrementally over time, enabling new board members to get up to speed on all the matters that are currently pending before the association with the help and guidance of experienced incumbent directors.

meet-300x166 Wholesale changes to replace entire boards with new directors are never the best approach, yet unfortunately such total transitions do occur from time to time. Whether it is a board recall after a questionable election or a total overhaul election following some tempestuous controversy implicating the prior board, the new norm is entirely new boards comprised of completely novice board members taking over control from one day to the next.

June 27, 2019

Educational, Professional Resources Enable Owners to Answer Call of Community Association Board Service

by Marc A. Smiley

Marc A. Smiley

Those who reside in communities with associations should view board membership in the same vein as a civic duty. An effective board is essential for the financial and administrative wellbeing of associations, so all eligible unit owners should consider running for the board of directors as their contribution back to their community.

In no way are the responsibilities of serving as a director too complex and demanding for the capabilities and skillsets of most association unit owners. What it requires is their time and dedication, but not to the point where it becomes too daunting for the average owner.

To be a successful board member, it is essential to make effective use of the professional and educational resources that are available. This begins with relying on highly qualified and experienced professionals such as attorneys, property managers, accountants, insurance brokers, etc.

At the start of one’s board service, Florida law requires that new board members become certified within 90 days of taking office. The best way to do so is by attending an educational course that has been certified by the Florida Department of Business & Professional Regulation, such as the board member certification seminars offered by our firm on a regular basis. These seminars enable board members to gain a keen understanding for everything that the position entails. They cover all the basics of community association governance and the laws which are involved, and they also touch on some of the most common problem areas that boards regularly encounter.

February 12, 2019

Establishing, Utilizing and Setting the Ground Rules for Community Association Committees

by Laura Manning-Hudson

Laura Manning-Hudson

Not enough community association boards make effective use of committees. Committees can be very useful when it comes to providing recommendations to the board and assisting the board with carrying out its duties and responsibilities. However, many associations do not take the time to establish committees or set parameters for their work so that committees may assist in the operation of the association.

Setting up committees is the responsibility of an association’s board of directors. The board must appoint the members of each committee at a properly noticed board meeting, during which the directors should provide instructions and set parameters for the scope of the committees’ responsibilities.

One of the best approaches is for boards of directors to use their annual meetings to establish various committees, appoint committee members and establish areas of purview for each. Each committee should have at least three members.

meet With the exception of the rules enforcement committee, board members may also serve as members on committees. Many associations choose to have a board member on each committee along with two non-director volunteers, as this enables the board member to keep their fellow directors abreast of the committee’s work and progress.

January 28, 2019

Community Association Directors, Officers Are Protected from Frivolous Lawsuits

by Roberto C. Blanch

Roberto C. Blanch

There are many objections to board service that are often cited by unit owners who are reluctant to serve on their community association’s board of directors. While the time commitment is a prevalent concern, some believe that the post also brings with it an unreasonable level of liability and exposure to lawsuits by disgruntled unit owners.

To quell those concerns, such individuals should recognize that condo associations and HOAs typically carry Directors and Officers Liability Insurance (aka D&O insurance), which serves to defend and protect directors from lawsuits to which they may be exposed. Additionally, directors are also protected by indemnification provisions of the Florida laws governing not-for-profit corporations as well as the articles of incorporation of their association.

May 23, 2018

Size Matters: Should Your Condo Super-Size Its Board of Directors?

by Nicole R. Kurtz

Nicole R. Kurtz

For many condominium associations in Florida, the amount of board members serving on a board of directors is usually dictated by the association’s governing documents or bylaws. There are associations, however, whose documents are silent on the number of directors that can be elected. In the absence of such a provision, condominium associations would have to refer to Chapter 718, Florida Statutes, which provides that a board of administration of a condominium shall be composed of five members. For those bylaws that do include language with specifications regarding a board’s size, the average number of board members serving typically ranges from three to five board members. But is there an ideal size?

While there is no “right” size for a board of directors, community associations that are considering decreasing or increasing their existing board’s size should always evaluate the pros and cons of doing so. It is possible for a board to be either too big or too small. Continue reading

November 14, 2017

New Legal Remedies Against Director Conflicts of Interest for Associations

by Siegfried Rivera

Siegfried Rivera

In the pursuit of association fraud and embezzlement, one of the most important aspects of the major legislation that was adopted earlier this year is the law’s effort to curb conflicts of interest by association board members and officers.

The new law provides that presumptions of conflicts of interest exist in the following circumstances:

A director, officer or one of their relatives enters into a contract for goods or services with the association.
A director or officer . . . holds an interest in a corporation, LLC, LLP or other business entity that conducts business with the association or proposes to enter into a contract or other transaction with the association.

October 3, 2017

New Board Member Term Limits Law has Significant Impact for Florida Condo Associations

by Siegfried Rivera

Siegfried Rivera

Among the major changes to Florida’s condominium laws in 2017 is a new provision mandating term limits for board members. The new legislation marks a significant departure from the past policies for most associations pertaining to the tenures of their board members, and it only applies to condo associations and not HOAs.

The newly codified law allows for board members to serve two-year terms, if that is what is called for in their association’s bylaws. However, a board member may not serve more than four consecutive two-year terms. The only exemptions to this cap would be granted to candidates who achieve a 2/3 super majority of the total voting interests and to associations that do not have enough eligible candidates to fill the board vacancies.

April 21, 2017

Community Association Boards Should Spread the Load by Relying on Committees

by Roberto C. Blanch

Roberto C. Blanch

Community association board members are asked to do a great deal for the communities they serve. They give up a great deal of their time and lend their varying expertise to help their communities run as smoothly and effectively as possible. Given that so much is asked of the directors, it is important that they take appropriate steps to delegate responsibilities to committees comprised of association members.

For most community associations, the benefits of involving committees are extremely worthwhile. Not only do they create a forum for the implementation and enforcement of vital policies and decisions, they also serve as ideal incubators for prospective future board members.

By their very nature, committees comprised of volunteer owners and residents should have a good understanding of the best policies and practices for their community. They may be ideally suited to oversee matters that involve the collection of information from the owners as well as the subsequent assessing of the data in order to make strong recommendations for suggested solutions.

Association boards should take the time to closely consider the use of different types of committees and their intended roles and responsibilities. Most association governing documents will include provisions governing the establishment of volunteer committees and how their decisions will be enacted.

Some of the most popular types of committees are:

November 22, 2016

Shortening the Board Member Learning Curve

by Roberto C. Blanch

Roberto C. Blanch

For those who live in community associations, board membership should be viewed in the same vein as a civic duty. An effective board of directors is essential for the financial and administrative wherewithal and stability of every community association, so all unit owners who are able should volunteer to serve at least one term to contribute to their community’s overall success.

Some association members have the mistaken perception that the responsibilities of serving as a director are too complex and demanding for their capabilities and skill sets. While it is a serious commitment in terms of time and attention, board membership should not be viewed as being too daunting of an undertaking for the average unit owner.

The key to success for practically every board member lies in their use of the most effective professional and educational resources that are available. Of course, this should begin with relying on only the most experienced professionals such as attorneys, property managers, accountants, insurers, etc., but that is just the start.