Articles Posted in Meetings and Elections

This is the time of year when many Florida condominium associations conduct their annual meeting and election of directors.  Here are some helpful reminders about the process to ensure that your community’s meeting and election avoid potential glitches and remain in compliance with Florida law.

Board membership should be viewed as being akin to a civic duty for condominium owners.  So long as individuals meet the basic legal requirements, to wit: they are current on all of their financial obligations to the association and are not a convicted felon, they are otherwise eligible to run for a board seat in most associations.

The election notices that are distributed by the association to all of the owners begin with the initial notice that must be sent out at least 60 days prior to the election. This notice should include information on the deadlines for submission of notices to the association for those who intend to run for a board seat. All candidates must provide their association with a written notice of their intent to run for the board of directors at least 40 days prior to the date of the election. meeting-vote-300x300Registered candidates are then able to lobby their fellow owners, and they may submit a resume to the association at least 35 days prior to the election. The resume, which may not exceed one side of a standard piece of office paper, should contain details about a candidate’s professional and educational background as well as any other attributes and qualifications that they would like to include.

A second notice of the election, which must be distributed between 34 and 14 days prior to the election, must include copies of all the resumes submitted by the candidates together with the ballot and the inner and outer envelopes.

Continue reading

One of the changes to the Florida condominium laws from this year’s legislative session that are set to take effect on July 1 is the mandate that the minutes of all condominium association board meetings must now be kept permanently as opposed to seven years, as the law previously held.  This new requirement should not present any difficulties for the state’s condo associations, as recording the meeting minutes and keeping them available for inspection as state law requires are basic functions of association administration.

The minutes of association board meetings must reflect all of the votes or abstentions of the directors in attendance.  They are extremely useful association records for those who wish to gain an understanding for all of their association’s undertakings and decisions over a period of time.

meet-300x166Associations should record their meeting minutes in a well organized and uniform format, and the information should be very brief and to the point.  The minutes should reflect the format and topics from the meeting agenda, and many associations break them down into standard sections for attendees, reports, old business, new business and others.

Continue reading

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

Just as with the “sunshine” laws mandating public access to the decision-making processes within the state government of Florida, community associations have their own sunshine laws to ensure that unit owners are able to monitor and participate in their governance.  These laws, which include the owners’ right to attend and record board of directors’ meetings as well as to speak on agenda items at the meetings, are brought into play in the association context when a quorum of the board of directors meets to discuss association business.  As such, directors must always remain mindful of the fact that they should avoid discussing association business, or making decisions on behalf of an association, outside of properly noticed meetings. Continue reading

The other South Florida community association attorneys at our firm and I are often called upon by our clients with questions regarding how to more efficiently run their board meetings and control the conduct of members during those meetings.  Very often it seems that directors who are simply trying to be polite and respectful of owners by allowing them to express their opinions wind up losing control of the meeting and actually accomplish very little business.  This trend of owners seemingly “hijacking” board meetings is not a new one, but it does seem to be fueled in recent months by the political climate we find ourselves living in now where all people want to be heard.  Fortunately, the HOA and Condominium Acts provide board members with the tools they need to control their meetings while allowing all members to also have their “say.”

Association board meetings are defined as any gathering for the purpose of conducting association business by the members of the board of directors at which a quorum is present.  Unless the association’s by-laws or other governing documents provide for a longer period, notice of board meetings must generally be conspicuously posted within the community 48 hours in advance of the meeting.  However, in certain circumstances (such as the adoption of assessments or some types of rules), written notice must be posted and provided to the members at least 14 days in advance of a board meeting.

In accordance with Florida law, an item of business that is not noticed may only be addressed on an emergency basis, such as situations involving sudden damage to the building, natural disasters and similar events.  Emergency actions must be ratified or approved at the board’s next properly noticed board meeting at which a quorum of directors is attained.

meetThe notice of the board meeting should list specific business items on the agenda.  Boards and managers should make every effort to ensure that all reasonably anticipated topics of discussion are included.  The more specific the agenda, the easier it will be for the board to control the pace and flow of the meeting.  When agendas list broad topics without specific business items, boards leave themselves open to having to address issues brought up by members that would arguably “fit” under broad category headings.  As such, the agenda should be comprised of specific open items from the previous meeting requiring action; specific owner items that may require board action; building maintenance items, as required; project information, updates, requests and actions; and seasonal information, such as annual and budget meeting information as well as hurricane preparation matters.

Continue reading

Nicole-Kurtz-2014-thumb-120x180-87971The firm’s Nicole R. Kurtz authored an article that appeared as a “Board of Contributors” guest column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which was titled “Disputed Condo Election Offers Important Lessons for Association Boards,” focused on a recent appellate ruling that illustrated the importance for boards of directors to act with a clear understanding of their capabilities to alter association election procedures.  Her article reads:

Allegations of questionable or even downright fraudulent tactics by candidates in annual association elections are not entirely uncommon. When suspicious activities begin to call into question the integrity of the election, some boards of directors hit the panic button and take actions that will not stand the test of their governing documents or the Florida Administrative Code.

Such appears to be what took place in a disputed election at the Palm Aire Country Club Condominium in Pompano Beach that culminated in a recent ruling by Florida’s Fourth District Court of Appeal. While the appellate panel’s opinion does not address the reasons for the association board’s actions, noting only that “there is some ambiguity as to what exactly occurred” at the board’s Feb. 29, 2016, meeting, the opinion essentially invalidates the board’s 6-3 vote at the meeting to postpone the annual election that was set for two days later on March 2.

Even though a majority of the board voted to postpone the election, it took place as originally scheduled on March 2, and new directors were elected. The management company for the property, M&M Property Management LLC, subsequently refused to recognize the authority of the prior board of directors and instead began working with the newly elected directors.

dbr-logo-thumb-400x76-51605-300x57In response, the prior board of directors filed suit against M&M seeking a temporary injunction to compel the management company to stop operating in service of the new board of directors. The prior board was granted the temporary injunction, and in turn M&M was ordered to recognize the board as it existed prior to the March 2 election.

Continue reading

With the holiday season approaching, now is the time that many condominium associations in Florida are gearing up for their annual meetings and board member elections.  It is essential for the current board and property management to have a complete understanding of the condominium election process.

At least 60 days prior to date of the meeting and election, the association must mail, deliver or electronically transmit a first notice of the election to each unit owner.  This first notice sets forth the date, time and location of the meeting.  Those members who wish to be considered for board membership must then give written notice of their intent to run for the board to the association at least 40 days prior to the scheduled date of the election.  Although not required, candidates have an additional five days to submit information sheets about themselves.

A second notice of the annual meeting and election together with an agenda for the meeting must then be mailed, delivered or electronically transmitted to all of the members together with a ballot that lists every candidate who submitted their names to run for board membership. meetingvote Any information sheets submitted by the candidates must also be included with the distribution of the ballot – regardless of their content.  Return envelopes that allow for owners to print and sign their names and include their unit numbers should also be included with this mail out.

In order to have a valid election, and be able to open envelopes and count votes, at least 20 percent of the eligible voters must cast a ballot.  Unit owners are not permitted to allow any other person to vote using their ballot, and all of the ballot envelopes must be retained by the association for at least one year.

Continue reading

One of the more notable developments resulting from the 2015 Florida legislative session included a change to community association statutes establishing the opportunity for associations to offer their members the ability to vote electronically.  While many community association stakeholders have had an immediate reaction to jump on the  e-voting bandwagon, we have counseled — and will continue to counsel — our clients to proceed with caution, as with all new innovations presented during the digital age.

We have come to find that electronic voting may benefit some community associations, while it may not address the voting concerns of others.  In light of this, we will continue to encourage community association board members, managers and owners to seek competent legal advice regarding whether electronic voting is a good option for their association.  If the decision is reached to implement e-voting as an option, community association board members and managers should work with their lawyers to evaluate which online voting provider’s system is best suited to meet the needs of their association, while making sure the software complies with the Florida community association online voting requirements.

Additionally, it is advisable that associations use an electronic voting system provider that is independent from its law firm and management company, so as to ensure that the integrity of the association’s voting process is best protected.

VTRIn our efforts to vet online voting systems, we realized that most lacked the basis for proper application in basic community association settings or lacked the flexibility to adapt to unique voting situations.

After multiple months of research, we were successful in identifying a provider well suited for community association use.  VTR, an e-voting software system owned and operated by FOB Software, is one provider we feel community association directors and managers should consider.

Continue reading

Firm partner Roberto C. Blanch, who has written extensively about community association fraud in this blog and recently authored an article on the topic for the op-ed page of the Miami Herald, appeared on Spanish-language television network AméricaTeVé’s popular “A Fondo” live show hosted by Pedro Sevcec yesterday at 8 p.m.  He was joined by one of the two journalists from el Nuevo Herald behind the newspaper’s investigative series exposing possible fraud at several South Florida condominium communities.  The segment specifically focused on board of directors election fraud, and several cases of suspected fraud were discussed.

Our firm congratulates Roberto for sharing his insights into this important issue with the network’s viewers.  Click below to watch the Spanish-language segment.

 

Community association attorneys are often asked about the lack of uniformity in the Florida laws and regulations for condominium associations and those for homeowners associations. There are many differences between the statutes governing condominium associations and those for HOAs, and condominiums are much more heavily regulated.

In fact, all condominium associations in the state must pay an annual fee to fund the Florida Department of Business and Professional Regulation’s Division of Condominiums, which serves to provide regulatory oversight over condominium association elections and disputes stemming from the actions of their members and boards of directors.

Homeowners associations have been excluded from the purview of this state agency since its inception, which, among other things, has created significant discrepancies in the laws governing these different types of community associations involving their elections, meetings, board recalls, vendor contracts, and other areas. However, a bill that was introduced by Rep. John Cortes of Osceola County seeks to change that and bring HOAs under the regulatory oversight of the state agency.

florida_dbpr

HB 653 represents potentially sweeping changes for HOAs in Florida. It seeks to rename the state agency in order to add homeowners associations to its name; authorize the agency to investigate certain complaints involving HOAs, conduct related investigations and adopt penalty guidelines; have HOAs pay an annual fee to fund the agency, provide notices for certain meetings, impose certain fines, and revise annual meeting requirements; and it provides for changes to the provisions relating to the transition of association control, and the requirements for voting by general and limited proxy and for board elections and vacancies.

The bill calls for the state agency to oversee the mediation of HOA disputes and maintain a list of certified mediators who the associations must use for these proceedings. HOA elections, which have historically been left to the protocols and procedures established under their respective declarations, would be required to adhere to the process that has been in place for condominium associations.

The changes involving elections are very significant, as are the measures pertaining to meeting notice procedures. If the bill is passed and these new provisions go into effect on July 1, 2016, HOAs across the state will need to be prepared to make dramatic changes to many of their policies and procedures. This will undoubtedly present some serious difficulties and challenges for many associations that have grown accustomed to their previous protocols over the years and decades, but the introduction of this bill appears to send the message that the time for uniformity in the state’s laws governing condominium and homeowners associations may now be upon us.