HOA/CDD Boards

Our HOA board is up for re-election. The current board just decided that anyone serving on the CDD Board or their family members can not run for the HOA board seats. Our covenants do not state this. Just says you must be a homeowner in good standing. Can they do this? We’re in Florida.

What is a CCD board and what is its relationship to the HOA board? It may be the board is concerned about conflicts of interest, and that could be legitimate if hubby is on this CCD board and the wife is on the HOA board.

I would expect any board member to refrain or participating in a discussion and vote about an issue where he/she has an actual or perceived conflict of interest. The board member should disclose that conflicts if it can't be resolved, leave the room and let the others debate and vote (if he/she remains that could cause an intentional influence on the vote of even who says what).

Read your documents to see who does what. The board just can't decide on its own and can't serve on the board - they would probably need to have homeowners approve an amendment to this effect

In Florida we have CDDs (community development districts). They are a way to get the homeowners to pay for the community infrastructure after purchase so the developer doesn't have to foot the bill when they build. So for example in the condo association where we own, the CDD is responsible for the gate and gate access, the water, lakes, common property, etc. The condo and single family associations and the master associations have their own boards and the CDD board is almost like a city council and they are the ones who deal with the city water department, the streets department (city streets) and other government services.

We pay our condo fee and master fee quarterly, but the CDD gets paid through our yearly property taxes. Clear as mud?

Bottom line - the developer makes a deal with the city or county not to pay for the development rights and fees up front but the homeowner pays their share each year instead.

CDDs are almost always separate boards. I agree that the OPs board appears to have overstepped since they most likely have no say in who serves on the CDD board. That said, I can see why they would not want to have relatives of condo/SFH boards on the CDD board because it could cause a conflict of interest or the appearance of one.

It does sound like the board overstepped if there is nothing in the bylaws about this.

That said, I see where the board is coming from since there is an issue with possible conflicts of interest. Board members are obligated to make decisions that are in the best interest of the entity whose board they're serving on - and it can be difficult or impossible to do this if the two entities have different goals. Same with spouse: some communities prohibit spouses from serving on the board at the same time.

Your insurer may also have something to say since your Directors & Officers insurance may exclude coverage in cases of malfeasance or other bad behavior.

So if the board is concerned about possible ethics violations, the correct move is to amend the bylaws. In some communities in some states, the board has the authority to do this without a homeowner vote - in others the amendment must be approved by a majority of homeowners.

(Doesn't FL require some sort of code of conduct for board members, or is that just for condos? I know this has come up in the past here, but I don't remember the details.)