Category: Important Posts

There are only two mandatory meetings the associations are required to hold. The annual members meeting and a budget meeting of the board of directors. The Annual is a meeting for the members while the budget meeting is a board meeting intended to validate a fiscal budget.

Annual meetings are held for the purpose of any business that comes before the members and for the election of directors, if necessary. If there were a lack of interest to run for the board, there would be no election at the annual meeting. The remaining officers at the time of the annual meeting will automatically return or shift to directors and would appoint  volunteers to fill board vacancies. If there were no interest to fill board vacancies to constitute a quorum, beware. See, “The Consequences of not having a Board Sufficient to Constitute a Quorum”.

If not provided for in the governing bylaws, the minimun Florida Statute quorum requirement of members at an annual meeting is 30% of the voting interest. Many homeowner documents require a 33% to constitute a quorum. A lower number of quorum requirement in the community documents, supersedes the Florida Statute, see 720.306 on the next page.

A quorum of an annual meeting can be in person or by proxy. Decisions requiring a members vote, such as a roll over or a waiver of financial reporting are carried by a majority vote of members present. Unless otherwise stated in the governing articles of incorporation’s or bylaws, amendment of governing documents requires a 2/3% vote of the total voting interest.

Unless otherwise provided for in the governing documents, changes of the total voting interest due to appurtenances or addition of property, requires a 100% members vote. For more fun facts see, “Sale and Lease Transfer Fee’s for Condominium and Homeowner Associations”. To review supporting documents, click here. (more…)

In October 2004, a new Florida statute had passed through the legislation that requires associations to seek competitive bids for services rendered if over 10% of the total budget. Also, if not fully performed in one year, all contracts should be in writing. Competitive bids are not required if a renewal of a contract has a thirty day cause.

Like most laws, there are special provisions and exceptions. For example, if there is only one vendor in the local county who performs unique services, such as elevator pit cleaning, foam roof installation and even chickee hut replacement, would not be subject to this law. Competitive bids are not required in emergency situations. Pipe break/s, sewer overflow, roof leak/s, irrigation pump repair (which may cause massive plant lost), and ever after a hurricane where services and materials are limited, are all examples of emergencies.

Services that do not required competitive bids:

• Employees
• Attorneys
• Accountants
• Architects
• Engineers
• Property managers
• Landscape architects

As in most cases, if standards are not less stringent than those in these statutes, then communities may operate under provisions provided for in their governing document.  For more fun facts see, “What to know about Association Late Charges“. To review supporting documents, click here. (more…)

In every new planned development it never fails, a homeowner without any notification to the board will take it upon themselves to renovate their property. They will add fountains, paved walkways, decorative driveways, sprinkler additions, electrical lighting, benches, statues, lawn ornaments and ever appurtenances to their property. In one instant, we even witnessed an Arabia tent installed replacing a lanai. All improvements made to property are subject to approval either by the Architectural Control Committee (ACC) or the Architectural Review Committee (ARC). 

As soon as a new improvement are made within a community, for some reason residents will duplicate improvements without realizing they are now in violation of the governing documents. We recommend upon signing a title deed that the new homeowner or owners read and sign a release stating the repercussions of any improvements made without board approval. In this way there would be less of a chance of document violation or violations. Also, may prevent the homeowner from making a costly mistake of adding enhancements and have the burden of paying for restoration.

For more fun facts see, “Displaying an American Flag in a Planned Development, Condominium or Homeowner”. To review supporting documents, click here. (more…)

It seems for every one out of ten associations, there is one director who had been sitting on the board for decades. Community lack-of-interest by the members is usually the cause of this natural phenomenon. Like wearing an old pair of shoes, the same director year-after-year is familiar and members are comfortable with him calling the shots.

Ideally, director membership should be rotated among members. Each member of a community should volunteer their time to serve on the board for one term, even if they know nothing about directorship. By equal participation, the members can pay their contribution while learning how their community is run.  

Any or all directors can be recalled or impeached with or without cause. The best way to impeach a director or directors is by petition. Attached with the petition should be a ballot of the new member willing to serve on the board. A majority of the voting membership interest will automatically remove a director or directors subject to the provisions of statute 720.307.

Within five days of certified written recall by the majority voting interest, the association shall call a board meeting to honor the impeachment. The meeting minutes should show the date and time, decision of the board and the vote count taken on each board member subject to the recall. After majority of vote by the board, the member who had been recalled shall immediately step down and return all association property and records. If the board so elects not to certify the recall, within five days can file for binding arbitration.

Recall of a board member is enforceable in a circuit court in the same county of the association. For more fun facts see, “The Consequences of not having a Board Sufficient to Constitute a Quorum”. To review supporting document, click here. (more…)

Agents, property managers and board of directors all have an ethical duty to withhold sensitive information regarding residents. If a mortgager or prospective buyer inquires information regarding a sale, the community documents, (should be passed on by the seller), rules and regulations, updated common question and answer sheet and sales application should be made available. All other official records are made available after written request signed by the seller or unit owner. Administrate and office fees are customary, but not to exceed $150 plus reasonable photocopy costs. Also, attorney fees may be applied in connection with special inquiries. Subdivision records such as maps are obtainable in the local County office and not required by the association.

The following is privilege information by the board of directors and should not be made accessible to members or parcel owners:

Records protected by client-lawyer confidential laws.

Lease/sales applications and any attachments that are in conjunction with board approval.

Employee records such as employment application, disciplinary actions made by the association, health/medical, insurance and personnel records.

Medical records of parcel owners or community residents.

For more fun facts see, “Directors & Officers is a Thankless Job”. To review supporting information, click here. (more…)

Within ten days of a written request, unit owners can inspect and photo copy community records during normal business hours. If the association has available a photocopier, then the member can have up to twenty-five copies made during the same inspection. However, the association may adopt reason rules and regulations governing the frequency, time, location and notice of records to be inspected. To compensate for administrative and office fees, the association can charge up to 50 cents per photocopy.

If the association fails to comply with this subsection (720.303), after the eleventh day, a minimum of $50 dollars per day charge up to ten days can be awarded to the member. The circuit courts recognize this statute as “rebuttable presumption”, failure to provide access to official records.

The official records should include the following:

Complete set of current community documents with the Rules & Regulations. Also, an adequate number of updated documents must be made available to members or new members, which includes Declaration of Covenants, Articles of Incorporation and Bylaws. Common questions & answers should also be attached.

Minutes are kept for seven years.

Copies of any site maps, plans, specifications, permits, and warranties related to improvements constructed on the common areas or other property that the association is obligated to maintain, repair, or replace.

All contracts with warrantees and competitive bids must be kept for a period of one year.

Insurance policies and all financial reporting are kept for seven years, including annual corporate reporting and tax returns.

A good rule of thumb might be; written records, which are related to the daily operation of association business, must be kept for a period of seven years.

For more fun facts see, “Commingling of Association Funds”. To review supporting documents, click here. (more…)

Except for attorney-client privilege, each board meeting should be open to all members for every class of community association. With respect to possible litigating matters and due to discussion or content, board meetings are held private, which are govern by attorney-client privilege and confidential laws.

Homeowner corporations are a little more stringent with regards to condominium. Within a homeowner’s community, a member wishing to speak on a matter placed on the agenda requires a formal request or a sign-up sheet. This formality is not required for condominium.

For every community, the board has a right to adopt reasonable rules and regulations governing the frequency, duration and the manner of member statements. Three minutes to speak on-subject is the standard minimum for these requirements.  The board may also propose a written request in advance of the meeting in order to speak.

Although corporate attorneys may not recommend video and tape recordings, any unit owner may do so.  However, the board reserves the right to adopt reasonable rules and regulations governing the frequency, duration and the manner of member tape and video recordings. Also, written notices in advance may be necessary to arrange for video setup.

For more fun facts see, “Condominium & Homeowner Association have different Rulings for Delinquencies”. To review supporting documents for both condominium and homeowner corporations, click here. (more…)