Part 1: Proposed 2012 laws for HOAs in Florida

I just got e-mail from CCA talking about the new Bill proposed for 2012. There are many subjects covered and here is one of them. What is the legislature thinking is beyond me. Ha…..good luck.

'Director Certification and Educational Certificates (Condominiums, Cooperatives, and Homeowners’ Associations)

The current law regarding director certification and education applies only to directors serving on the board of condominium associations.

HB 319 will incorporate these provisions into the Cooperative Act and Homeowners’ Association Act. HB 319 will require cooperative and homeowners’ association directors to certify that they have the governing documents and current written policies; that they will work to uphold such documents and policies to the best of their ability; and that they will faithfully discharge their fiduciary responsibility to the association's members. In lieu of the written certification, the newly elected or appointed director may submit a certificate of having satisfactorily completed the educational curriculum administered by an education provider approved by the division within 1 year before or 90 days after the date of election or appointment.'

Petunka,

I wouldn't worry about it just yet. If the Florida legislature operates the way the Connecticut legislature does, many bills are introduced that never make it through. I was told by one of our legislators, who is a friend, that a large majority of the bills that get introduced each year end up going nowhere. A legislator will often introduce a bill to appease a constituent or a group of constituents, even though the legislator knows it will never pass.

Our legislature has an online tracking system whereby I can identify the bills I want to track and I will receive an email whenever there is activity on the bill, such as being sent from one committee to another. What I have noticed is that most bills are sent through several committees, often ending up in some committee that has no interest in the bill at all. It is never introduced in that committee and simply dies there, never even being brought up for a vote.

Interesting process. I think we've had similar bills introduced in CT in the past as well.

I know, spent enough of time in the US Senate to understand a little how these things are negotiated. Unfortunately, this bill is sponsored by George Moraitis who also pushed HB 1195 in 2011 and that bill includes a few sticky laws also. Clearly, they are pushing HOAs in the same directions as condominiums. Will it work? Yes it will for the attorneys and the management companies.

Attorney Donna Berger, wrote a funny article on August 8, 2011, if you care to read it. A little sarcsm does not hurt:

'IS IT THE RIGHT TIME TO REQUIRE MANDATORY BOARD SERVICE?

What are some of the most common complaints we hear about community associations and the manner in which their board members are elected?

● The election process is rigged;
● The HOA board collects proxies and votes itself in year after year;
● No one cares enough to run;
● The ballots and the entire election process is manipulated; and,
● The same folks have been "in power" for years.

Whether or not these complaints are actually true in every case in which the accusations are made is a topic for another blog. In today's blog, let's discuss how the concept of a mandatory association board draft would do away with these issues.

Imagine if elections were no longer necessary because every member of the community would have to serve on the board when his or her "number" was randomly selected for such service? Most of the angst of running for the board would be removed because every association member would eventually receive his or her term. Of course, there would be new angst for those who don't really want to serve but would rather complain. For those folks, I envision a system not dissimilar to our current jury service system where the expectation is that it is your civic duty to serve unless you have a compelling reason (financial, health, personal situation, etc.) not to do so. Moreover, folks who would otherwise be ineligible to serve (due to a delinquency, felony background, etc.) would simply not be put in the pool.

Mandatory board service might result in the following:

● A greater appreciation for the time and energy it takes to run a private residential community on a volunteer basis;
● An assurance that there will be a board in place despite general apathy;
● An inability to argue that mandatory education for directors is not advisable lest there be a chilling impact on folks willing to run for the board; and
● A reduction in the often signifcant costs associated with board elections.

Is it unreasonable to expect otherwise able-bodied folks to contribute to the success of their communities by serving one term on the association board? Most folks grumble when they get that jury summons in the mail and the reason is clear; most people just don't like to serve others. That is why jury service is mandatory and not voluntary lest we wind up with the same jurors time and again. Has the time come to treat association board service in the same manner?'

http://www.condoandhoalawblog.com/2011/08/is-it-right-time-to-require-mandatory.html

It's called receivership. Receivership is sometimes necessary but should be the absolute last option used. This is because:

Receivers answer to the court - not the membership.
Receivers salary is set by the court - not the membership
Receivers salary is paid by the members - not the court (assessments will increase)

As a side note, it's best to start a new thread rather than reactivate an old thread. This is because laws change and advice that was once sound and good, could now be off and bad.