Board Member Behind in Fines for Late Payments

Started by SusanB26 • 10 replies • 2480 views

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SusanB26 (Florida)
Posts: 12

Posted:

One of our board members is more than 90 days late in paying fines related to late HOA payments. The Florida statutes are clear that someone 90 days in arrears is prohibited from serving on a board. How do we gently bring this up at our next meeting, and what do we do if he/she says the spouse is responsible?

GlenL (Ohio)
Posts: 5,491

Posted:

I wouldn't bring it up at the next meeting, I would print out the relevant section of the code and give it to them and give them to the meeting to get current or be replaced. Of course all they have to do is pay enough so they are only 60 days in arrears and they can serve.

Studies show that 5 out of 4 people have problems with fractions

MelissaP1 (Alabama)
Posts: 13,836

Posted:

90 days in arrears of paying dues? Fines are a different kettle of fish. So are these late fees? Late fees are not necessarily fall into the fines catagory. If they are a board member or even just a member, how do they not already know this information? They should have access.

What do you mean blame it on the spouse? They would both be owners and have to pay. You fine the HOA property adress not the individuals. There are many questions in your situation. Plus fines typically can not be used for the basis of liens or foreclosure. However, they may be used in cases of good standings. Which seems the direction your going in. Florida HOA laws are pretty unique so someone from Florida may have better feed back.

Former HOA President

GlenL (Ohio)
Posts: 5,491

Posted:

Quote:

Posted By MelissaP1 on 05/31/2014 7:15 PM
90 days in arrears of paying dues? Fines are a different kettle of fish. So are these late fees? Late fees are not necessarily fall into the fines catagory. If they are a board member or even just a member, how do they not already know this information? They should have access.

Dear Emily Litella aka Melissa, I know you don't like facts to get in the way but:

720.306 (9)(b) A person who is delinquent in the payment of any fee, fine, or other monetary obligation to the association for more than 90 days is not eligible for board membership. A person who has been convicted of any felony in this state or in a United States District or Territorial Court, or has been convicted of any offense in another jurisdiction which would be considered a felony if committed in this state, is not eligible for board membership unless such felon’s civil rights have been restored for at least 5 years as of the date on which such person seeks election to the board. The validity of any action by the board is not affected if it is later determined that a member of the board is ineligible for board membership.

Studies show that 5 out of 4 people have problems with fractions

RichardP13 (California)
Posts: 1,767

Posted:

Glen

I looked up the statue and it appears in 2011, but can't find it 2014. Anyone know if it has been changed, moved or even eliminated?

SusanB26 (Florida)
Posts: 12

Posted:

I appreciate all the advice I've been given so far.

The current Florida HOA Statute (720) reads:

"A person who is delinquent in the payment of any fee, fine, or other monetary obligation to the association for more than 90 days is not eligible for board membership."

RichardP13 (California)
Posts: 1,767

Posted:

I found it.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By SusanB26 on 05/31/2014 5:44 PM
How do we gently bring this up at our next meeting, and what do we do if he/she says the spouse is responsible?

You don't.

You gently bring it up to them directly first (they may be unaware of this statute) and give them the opportunity to pay up or step down. If this doesn't work, then you bring it up at the meeting (and there is no gentle way to bring it up). Make sure that the meeting is in executive session as it does discuss a members assessment payment.

Quote:

Posted By SusanB26 on 05/31/2014 5:44 PM
One of our board members is more than 90 days late in paying fines related to late HOA payments

I would recommend, if you can do this under FL statutes, that you adopt a policy that all payments received will be applied first to charges and then toward any assessment (just like any other creditor).

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By TimB4 on 05/31/2014 10:33 PM

You gently bring it up to them directly first (they may be unaware of this statute) and give them the opportunity to pay up or step down.

Good idea.

The first time I ran for my board I was informed that I was delinquent in my payments. In fact, more than half the candidates were told the same thing. All of us had, in fact, paid but the management company had credited our payments to the wrong accounts. After the elections we voted to hire another management company.

Quote:

Posted By TimB4 on 05/31/2014 10:33 PM
If this doesn't work, then you bring it up at the meeting (and there is no gentle way to bring it up). Make sure that the meeting is in executive session as it does discuss a members assessment payment.

The issue is not a payment plan. The issue is whether the board member is eligible to serve on the board. That is something so fundamental to the operation of an association that I cannot imagine any circumstance that would justify discussing this in an executive session. The fact that he may be embarrassed by the discussion is not sufficient cause to withhold this from the members in attendance, especially if he is given an opportunity to correct the problem prior to the meeting.

PhilN1
Posts: 9

Posted:

One of my concerns would be the legal validity of any votes cast by the disqualified director. If he/she voted on a close vote (e.g., a 3-2 vote to pass something) then I'd have to wonder if a smart lawyer could draw into question anything that was passed with that director casting a deciding vote. I'm not an attorney, but that would be my first concern that the Association is placing itself in potential legal jeopardy.

In our Association, our CC&R's are clear that a director must be in good standing and not delinquent (for any amount, for any length of time) in order to be eligible to serve on the Board. So that Florida law is lax compared to some places!

Phil
Board President (2010-current)
Board Treasurer (2005-2010)

GlenL (Ohio)
Posts: 5,491

Posted:

Phil IMHO the last line of the section addresses your concern (The validity of any action by the board is not affected if it is later determined that a member of the board is ineligible for board membership.) I would say that any action taken before the Board became aware of the problem would not be a problem. Now that the Board is aware of the problem and the Director is clearly ineligible it would.

Studies show that 5 out of 4 people have problems with fractions

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