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Community Association Board Members are Protected by the Business Judgment Rule

January 19, 2015 Community Association Industry Legal Blog

Board members oftentimes hesitate in taking necessary actions as they become frozen by the fear that their decisions may lead to unintended consequences. This results in critical decisions being delayed—the proverbial kicking the can down the road. Yet, depending upon the situation, the failure to act could produce a worse outcome. Board members do have a fiduciary duty and responsibility to their associations, and the fear of breaching this duty is what leads to board members hesitating when it comes to making major and difficult decisions. However, the “business judgment rule” applies to association board members just as it applies to other corporate directors and officers. This Blog post will discuss how community association board members are protected by the business judgment rule.

Ten Things Every Newly Elected Board Member Should Know

January 15, 2015 Community Association Industry Legal Blog

This is the time of year when many community associations hold their annual meetings where elections are held and newly elected members assume their roles within the board of directors for the first time. Being a board member is a major commitment, both in terms of time and responsibility. Because most association bylaws state that board members shall serve without compensation, those who serve truly do so because they love their communities and desire to improve them. Despite those good intentions, many newly elected board members are not familiar enough with association governance to make an immediate and positive impact on their communities. This Blog post is for the newly elected director and lists the ten things every community association board member should know.

Condo Associations Must Ensure That Accepting Partial Payments From Delinquent Unit Owners Won’t be Considered Payment in Full

November 25, 2014 Community Association Industry Legal Blog

Condominium association budgets suffer significantly when unit owners become delinquent in paying assessments. Moreover, the burden for those unpaid assessments falls on the responsible unit owners who must make up the shortfall in the next yearly budget, which often results in higher assessments across the board. For this reason it is important that associations have collections policies in place to pursue unpaid assessments. However, associations must ensure that in their zeal to collect unpaid assessments that accepting partial payments from delinquent unit owners won’t be considered payment in full of the entire debt owed. This blog post will discuss a recent court case which serves as a loud warning to all associations when accepting partial payments from delinquent unit owners.

Avoiding the Selective Enforcement Defense When Enforcing Condominium Association Rules and Regulations

October 29, 2014 Community Association Industry Legal Blog

One of the most challenging aspects of effectively running and operating a condominium association is the constant turnover in board membership and the inconsistency this creates concerning rules enforcement. Most association board seats are up for reelection at least every two years if not every year. When members decide to run for the board, they often do so because they feel the current board is not properly running the association or enforcing its rules. Yet once a newly elected and motivated board attempts to right the ship and enforce the bylaws and rules and regulations, it finds itself having to respond to selective enforcement defenses due to the prior board’s failure to act. This presents quite the conundrum. Board members have a fiduciary duty to enforce the association’s governing documents but cannot do so effectively. There must be a solution. This Blog post will discuss how a board can avoid the selective enforcement defense when enforcing condominium association rules and regulations.

Condo Associations Have Statutory Right to Amend Declaration but can Only Unilaterally Void a Declaration Provision in Certain Circumstances

October 8, 2014 Community Association Industry Legal Blog

The declaration of condominium is the instrument by which a condominium is created. Fla. Stat. § 718.103(15). Florida courts have often referred to a declaration of condominium as the condominium’s “constitution” because it “strictly governs the relationships among the condominium unit owners and the condominium association.” Woodside Vill. Condo. Ass’n, Inc. v. Jahren, 806 So.2d 452, 456 (Fla. 2002). Yet what commonly happens is that, over time, unit owners and/or the board of directors of condo associations grow to dislike certain declaration provisions. Those bound by the declaration cannot simply ignore those unwanted provisions; rather, they must take action to amend and/or otherwise change the declaration. Fortunately, Condo Associations have the statutory right to amend their declarations and may even unilaterally void declaration provisions in certain circumstances. This blog post will discuss this right in more detail.

A Condo Association’s Remedies Against Tenants who Violate the Association’s Declaration, Rules and Regulations

September 24, 2014 Community Association Industry Legal Blog

Every condo association finds itself having to deal with tenants who break the association’s rules and regulations. While the association’s governing documents may allow it to take certain actions against those tenants, the Florida Statutes provide for remedies as well. Specifically, Section 718.303, Florida Statutes, defines the obligations of not only unit owners but also their tenants and explains the remedies available to an association when those tenants violate its rules. This Blog post will discuss in detail a condo association’s statutory remedies against those tenants who violate the association’s declaration, rules and regulations.

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