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KarenS11 (Florida)
Posts: 148
Posted:
Can a large HOA pay a resident "business manager" to manage their property?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Karen,
Florida HOA laws and the Real Estate laws state that ALL Property managers must be licensed with a Florida Professional Property Managers license to manage any property with more than 50 units. If this person has one, then there is no other law governing who can manage the property except if this person is on the Board of Directors.

617.0832 Director conflicts of interest.--

(1) No contract or other transaction between a corporation and one or more of its directors or any other corporation, firm, association, or entity in which one or more of its directors are directors or officers or are financially interested shall be either void or voidable because of such relationship or interest, because such director or directors are present at the meeting of the board of directors or a committee thereof which authorizes, approves, or ratifies such contract or transaction, or because his or her or their votes are counted for such purpose, if:

(a) The fact of such relationship or interest is disclosed or known to the board of directors or committee which authorizes, approves, or ratifies the contract or transaction by a vote or consent sufficient for the purpose without counting the votes or consents of such interested directors;

(b) The fact of such relationship or interest is disclosed or known to the members entitled to vote on such contract or transaction, if any, and they authorize, approve, or ratify it by vote or written consent; or

(c) The contract or transaction is fair and reasonable as to the corporation at the time it is authorized by the board, a committee, or the members.

(2) Common or interested directors may be counted in determining the presence of a quorum at a meeting of the board of directors or a committee thereof which authorizes, approves, or ratifies such contract or transaction.

I personally never want a fellow resident doing management work for my association because of the possibility of unequal treatment , especially when it comes down to enforcement issues. There can be too much favortism and good old boy mentality for equal treatment of violations.

KarenS11 (Florida)
Posts: 148
Posted:
Thanks, Donna. I was hoping to get your response. The person is no longer a director, but is now called a business manager. I don't think that passes the smell test. It's not my HOA, but the same person was paid when owning and serving as a director in another HOA. That would have been against the not-for-profit statute, as well.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Karen,
Your gut feeling is usually right when it comes to smelling a rat. Go with that because it looks like this guy is on to something and is trying to do it again. Just being a member of an association and wanting to manage the membership is to be dealt with cautiously.
Donna
SidneyP (Florida)
Posts: 302
Posted:
"Karen,
Florida HOA laws and the Real Estate laws state that ALL Property managers must be licensed with a Florida Professional Property Managers license to manage any property"

Donna, if this is true then how do HOA's do self management?...
DonnaS (Tennessee)
Posts: 5,671
Posted:

Sidney,
I believe they are referring to someone who gets paid for doing the job. And that is only after a 50 numer of units which is in the Statutes.. Self management is a whole other situation and there is no regulations for that other than to follow either 720 , 718, 723 or 617.
PatR (Florida)
Posts: 139
Posted:
Be very very careful in hiring a management co. Do you homework, get references and call them. Call other HOA's Check the BBB and Florida State website. Look for complaints. None are perfect, but some stink. I know.....we got burned....

Pat
KarenS11 (Florida)
Posts: 148
Posted:
Pat-

Wise words you have posted! We are considering filing a complaint against our former property management company-a big one. I think one of the reasons that they get away with so much is that some provide misinformation to citizen B of Ds and then, when the law is broken, they just say that the board directed their actions. I don't even know that the bad info is intentional as much as due to ignorance. But some is intentional, IMO.

It is a slimy biz, but there are some very ethical and professional companies out there. Some of the newer, smaller companies are actually better. I guess because the big boys got in early and learned how to cut costs and suck as much money from their clients as possible. They were the only game in town.
PatR (Florida)
Posts: 139
Posted:
Yep, we went with a smaller co. So far so good....

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