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Homeowners at risk when board overides association bylaws

  
  
  
  
  
I live in a Florida community that has three separate governing bodies. Club, Property Owners and Home Owners Associations. Presently the bylaws of the Club state that one becomes a member at such time when all initiation and memberships fees have been paid by the New member. Our Board of Directors has decided to allow new members to take up to three years to pay their initiation and membership contributions with the result being the outgoing member will receive his return of equity contribution over a three year period. The outgoing member, not the Club, will be on the hook for this should something happen to the new member and or his contributions. When the President of the Board was asked how the Board could vote in such a change without going to the membership for approval in changing the bylaws, it was stated that Florida Statute allows for boards to override bylaws if in their discretion the move makes good business sense. With 700 members in good standing, there is no financial hardship at this time within the community. This seems a rather broad interpretation of a Florida Homeowners Association Statute that appears to put all aspects of the bylaws into question and subject to change at the discretion of 10 or so board members that are not nominated by the membership at large but rather a nominating committee appointed and chaired by the current Board of Directors. What recourse, if any does a group of members have to challenge this move by the Board? Thank you.
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Comments

There are some different laws in Florida for Condo assocition and Homeowners association regarding voting and other matters , too..You could start by being sure which of these associations has the jurisdiction on this matter in your situation; or if it is 'the club'.Of course I don't know what the 'Club' rules you refer to would be. However, everyone has to be treated equally. 
 
The "good business case" guidance does exist but as I understand that, the case has to be obvious to any normal person for it to be applied.  
 
I presume you have read all of your documents re the questions you raise, not only the bylaws.
Posted @ Sunday, March 13, 2011 9:17 AM by John C.
We'd like to hear from someone who has expert knowledge in Florida on this question. Manipulating or changing by-laws and rules & Regulations is an important question.
Posted @ Sunday, March 13, 2011 9:39 AM by Charlie & Boris
I would ask the person who told you that to quote the exact FL statute that says that. The BOD may have been told that by a mgr who doesn't know the law or they may have just made it up! I am somewhat familiar with FL statutes but I've never heard of that particular one. So what can the members do? First check out the statute, then proceed with a recall IAW FL720.303(10) because I doubt you'll be given a statute that says this!
Posted @ Sunday, March 13, 2011 11:18 AM by mary
I have read the Florida Statues over and over again and never have read about this issue either.  
 
 
 
May I suggest you call the Department of Business and Professional Regulation; Division of Florida Condominiums, Timeshares, and Mobile Homes (the ones who publish the Florida Statutes): @ 1-(800) 226-9101. 
 
 
 
They don't charge for advice. . . ask to speak to one of their attorneys. . .  
 
 
 
 
 
Posted @ Sunday, March 13, 2011 1:47 PM by KELLI2L
Brd can change by laws with a 2/3 of ownership vote to agree but I do not think they can selectively apply as you describe. One thing for sure they cannot override the FS718 laws.
Posted @ Sunday, March 13, 2011 4:55 PM by Yvette Roddy
i have served on the board at my condo association 
 
an intent to be a candidate goes out to all the homeowners  
 
if there are more nominations than seats on the board, then there is an election by the homeowners 
 
i do not think it is legal to have a committee select board members 
 
there is no florida statute that allows the board to over ride any florida statute 
 
i am a witness that some board members take advantage of their power and want the homeowners to believe they have more power than they really do 
 
florida has an onbudsum-attorney that any person can call to get advise at the number you have been given 
 
however, be ready to answer questions about your documents, by-laws 
 
please ask them about the committee that places board members as i think this is a big problem for your community 
 
maybe it is time to use your power as homeowner and initiate a recall
Posted @ Sunday, March 13, 2011 7:21 PM by grace
First let me say that you are dealing with different Florida statutes regarding HOA's and Condos. 
I can only speak to my understanding of Condo statue F.S. 718. 
F.S.718.112 will clearly show you what must be done to change your By-Laws. It is not just a silly piece of paper. The Declaration of Condominium, Articles of Incorporation and your By-Laws are all legal recorded documents made in order to establish the legal entity that is your "Not-for-Profit" business commonly known as your "Condominium". No one can change these documents without a vote of the Owners. A majority or greater will be required in order to change these documents, then it must be done by an attorney and submitted to be recorded. Only then, once recorded, can the change be considered official. 
 
Florida Law, Articles of Incorporation, By-Laws, "House or Club" rules. These are the order of importance regarding precedence and order of importance. 
 
Any Board member of a Florida condominium association is elected to the Board by the Homeowners, the Board elects it's officers. The Board can fill any vacancy with any person of their choosing, but only for the term of office remaining. Terms of office for ALL board members in Florida is one year.
Posted @ Monday, March 14, 2011 12:34 PM by cebo
Last year, condo owners in our association, found out our roof reserve ($40,000) was lost because the treasurer put the money into a Promissory Note with a Mortgage company that went bankrupt. At the time this was brought before us for a vote, we ( mostly widows and seniors), were told we would get more interest with the mortgage company than the banks, so, because we thought they were looking out for our interest, we voted for it. Little did we know the money was not insured. We lost all of the money! In August of 2010, we were told our roofs needed to be replaced and we would have to pay for replacement out of pocket. They gave us one year to get them done. Most of us have, but those that can't afford it at this time will have to pay for any leakage problems, and they, the board, insist they all be done by Sept. 2011. All of them have been replaced as of the first of this year. 
 
 
 
We were then informed, we may get some of the money back from the Mortgage company. At our last general meeting we were told any money received before Oct 1 of this year will be divided among owners, any money received after Oct 1, will be put back into the roof reserve for the next time the roofs have to be replaced So far we've gotten $2000 back from the Mortgage company. We also continue to put money from our monthly fees into the reserve.  
 
I have lived in this condo for over 10 years. I have paid my monthly fees, which includes money for the roof, plus almost $4000 each from myself and my "roof partner" for the replacement. (I live in a duplex type condo, ) I am 75 years old, do you think I'll be around in 25 years when our roofs need to be replaced? 
 
Do you think this is the right way to handle this?  
 
This is the second time I've posted this. I tried some of the suggestions, abut they didn't work.  
 
Is there anything we can do to get our out of pocket money we used to get our roof replaced. We're in Illinois
Posted @ Wednesday, March 16, 2011 1:46 PM by nan
The comment about all Condominium Board members in Florida being one year is incorrect. The Florida legislature did enact legislation that over rode condo docs to limit Board member terms to one year with a major caveot (sp). The membership to vote to allow two year staggered terms.
Posted @ Tuesday, May 03, 2011 6:22 PM by Jan Browning
After reading what I just posted I realize I should never do so without a grammer checker. The comment should read: The comment about all Condominium Board member terms being one year is incorrect. The Florida legislature did enact legislation that over rode condo docs to limit Board member terms to one year with a major caveot (sp). The member ship could vote to allow two year staggered terms.
Posted @ Tuesday, May 03, 2011 6:27 PM by Jan Browning
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