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Articles Tagged with community association board service

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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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.

RBlanch-seminar-1-17-11-photo-1-300x225At 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.

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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.

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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.

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