PMM_Nov-Dec 21_LowRes

Because You Asked...
Featuring Betsy Barbieux
CAM, CFCAM, CMCA, PROFESSIONAL DEVELOPMENT COACH,
FLORIDA CAM SCHOOLS, LLC
Betsy,
I have several questions:
1. Does the board have to have a meeting
to approve a budget?
2. Is the board required to have a budget
workshop to receive owners’ input?
3. Does the board have to meet to hire a
new manager or management company?
— Mack
Mack:
Yes, in order to approve a budget, the board is
required by statute to do so at a board meeting
with a 14-day notice and agenda delivered
to the owners along with a copy of the budget
draft. The board or management is required to
prepare an Affidavit of Mailing of the notice,
agenda, and draft which is to be kept with the
minutes of the meeting.
Unless specified in the association documents,
a budget workshop is not required.
Voting to approve any contracts must be
done at a board meeting and noted in the minutes.
The board meeting must have the proper
48-hour posted notice and agenda.
— Betsy
• • • •
Betsy,
The HOA statute says that when a board
fails to allow owners’ access to records
within 10 days the penalties are $50 a day
up to 10 days. Through what process are
the damages claimed and what authority
awards/enforces them?
— Jon
Jon:
In an HOA, the remedy for failure to allow access
to records is pre-suit mediation. I have copied
only part of the statute here –there is a lot more to
read and forms are provided in the statute.
720.311(2)(a)Disputes between an association
and a parcel owner regarding use of or
changes to the parcel or the common areas
and other covenant enforcement disputes,
disputes regarding amendments to the association
documents, disputes regarding
meetings of the board and committees appointed
by the board, membership meetings
not including election meetings, and access
to the official records of the association shall
be the subject of a demand for presuit mediation
served by an aggrieved party before
the dispute is filed in court.
— Betsy
• • • •
Betsy,
Can a board member sign a contract without
a board vote and then change the wording
in the contract without the approval of
the other board members?
— Aaron
Aaron:
Signing contracts without board approval is
improper unless there was some written policy
among board members to allow the president
to do so. Changing the parts of the contract
may be proper if the parties agree and initial
the changes. But this only really works if the
written policy above is in place. However, remember,
I am not an attorney nor am I giving
legal advice; only commenting on procedures.
Check with your attorney!
— Betsy
• • • •
Betsy,
When the HOA developer is in control and
you have a members’ meeting, is it still
required to send a proxy form? This year
members will not be voting on anything.
— Michelle
Michelle:
I would do everything the same way as if the
developer were not there—a 14-day mailed
notice, agenda, affidavit of mailing, election
procedures outlined in the HOA bylaws.
Even if there’s nothing for them to vote on,
a general proxy would be used for obtaining a
quorum unless the developer still has the majority
votes.
Then don’t forget the board organizational
meeting after the adjournment of the membership
annual meeting with the required posted
notice and agenda.
Each of these meetings will have their own
set of minutes, even if they are short.
— Betsy
• • • •
Betsy,
Several questions:
1. If a Board Member can show that a
President has conducted Board votes via
e-mail, what should that Director do?
2. What if the Board member can show
other illegal actions?
— Andrew
Andrew:
If a President is conducting business without a
properly noticed meeting, the other board members
can remove that person as President and give
him/her a plain board seat. That vote to remove
him/her as president would have to happen at
a properly noticed board meeting and the mechanics
at that meeting would have to be thought
out and happen quickly. It won’t be pleasant.
Depending on what you mean by “illegal”
you have the police/sheriff and state attorney
who can proceed against an illegal activity. If
you mean “stupid bad business judgment” decisions,
the power is in the people. Elect new/
different board members. Otherwise, you can
file a complaint with the DBPR, but you’ll need
documentary evidence of a statute violation.
— Betsy
• • • •
HAVE A QUESTION FOR BETSY? SUBMIT YOUR QUESTIONS VIA EMAIL: BETSY@FLORIDACAMSCHOOLS.COM
Betsy Barbieux, CAM, CFCAM, CMCA, is an information leader in Florida community association living. She is an expert in the rights and obligations
of owners as well as the board of directors and association management. If you live in Florida, there is a good chance you are a part of a community
association. Since 1999, Betsy has educated thousands of managers, directors, and service providers. So whether you are an owner, board member, or
CAM, she provides training and coaching for all. Betsy is a member of CAI National, FCAP, former member of the Regulatory Council for Community
Association Managers, featured columnist in industry publications, and host of CAM Matters on YouTube:
www.youtube.com/c/cammatters. Florida CAM Schools, LLC, www.floridacamschools.com, 352-326-8365.