Become our Member : JOIN SFPMA TODAY   LogIn / Register: LOGIN/REGISTER

SFPMA Industry Articles | news, legal updates, events & education! 

Find Blog Articles for Florida’s Condo, HOA and the Management Industry. 

Give yourself a Gift and become a Florida Community Association Manager CAM!

Give yourself a Gift and become a Florida Community Association Manager CAM!

  • Posted: Dec 05, 2019
  • By:
  • Comments: Comments Off on Give yourself a Gift and become a Florida Community Association Manager CAM!

Are you looking for a career change? Have you ever thought about becoming a Florida Community Association Manager (CAM)? This license is required to manage a Condominium or HOA in the state of Florida – and there is not exactly a shortage of those. Florida CAM Courses has been offering the required CAM Pre-Licensing Course to students for over ten years, and 88% of our students pass their State Exam and become licensed Florida CAMs. Check out our website here www.floridacamcourses.com

 

Florida CAM Courses is a company based in Vero Beach and serving all of Florida, that provides educational services to those in the community association profession or those that would like to enter our profession. We offer courses in whichever format you like to learn in. Whether you prefer in-person, online self-study or correspondence, you are in great hands with Florida CAM Courses. We provide practice materials at no additional charge and downloadable course materials to help you successfully pass the Florida CAM exam. We also offer a blog for updated news and current events in the CAM world.

How to Get a CAM License

Florida CAM Courses has been helping people in Florida prepare for their state exam and become certified Community Association Managers for over a decade. We know the process that works and can help you in every step of the process. Feel free to reach out to us if you need help.

Coursework

Step 1

Register for a Florida CAM pre-license course, and show up for the class.

Pick One:

Prepare for Exam

Step 2

Get your fingerprints taken and register a time for the State Exam.

Prepare Yourself:

State Exam

Step 3

Schedule a Florida State CAM License Exam and pass it.

Take the State exam:

 

Florida CAM Courses

7150 20th St.
Vero Beach, FL
32966

 

 

 

Tags: , , ,
Hire and retain skilled community association staff members

Hire and retain skilled community association staff members

  • Posted: Oct 28, 2019
  • By:
  • Comments: Comments Off on Hire and retain skilled community association staff members

Talent needed: How to hire and retain skilled community association staff members

Recruiting and retaining skilled team members can be challenging for community associations and management companies, especially in a very competitive labor market and with communities limited by tight budgets.

In this reality, it becomes even more important for associations and management companies to highlight their strengths and address organizational shortcomings, says business consultant Bob Begley.

The founder of Golden Sands Management Consultants, LLC, a Florida-based business consulting firm, Begley has been an innovative business thinker for more than 30 years. He has advised hundreds community leaders while serving as the CEO of Golden Sands Community Management, Inc. He’s also authored 27 continuing education courses for CAM’s and board members through his sister company, Florida CAM Courses.

The issue at hand is recruiting in a very different workforce. Begley states, “I noticed that over the past few years, there was a very big disconnect between what the young people that I was hiring wanted from their experience of work and what I needed from them at work, as their employer”. We want to help company leaders understand ways to attract talented workers.

People think that the secret to attracting and retaining talent is little things like, ‘Let’s give them free lunch’ or ‘What perks can we offer?’ or ‘What are our benefits compared to the benefits down the road?’ But at the end of the day, it really comes down to the quality of the organization. Is it successful? Is it high performing? Because good, smart people want to work in those environments.

 

Here are a three best practices for community associations and management companies for recruiting and retaining talent:

  1. Stop thinking about tactics, and start thinking about the performance of the organization. The focus should be on building an organization that is robust and resilient. Great organizations have no trouble attracting and retaining talent.
  2. Build a culture that people want to work in. The perks and benefits can’t be the only lure for bringing in talented workers. I caution you that if the culture doesn’t reflect what was promised to the manager when hired, you’ll find yourself in bigger trouble.
  3. Be courageous. It’s important to brave a tight labor market to find talented people. It’s also about having the courage to build a high-performing team. A team is only as strong as its weakest link, so we need to be capable of managing the performance of the underperformers or, at times, even having the courage to move people on.
  4. Once you find the perfect new hire, treat them as the valuable resource that they certainly should be in your organization. Practice A.R.E. with all team members – Appreciate, Recognize and Encourage. For more on creating Wonder in Your Workplace, visit the Florida CAM Courses website to download Wonder in the Workplace.

 

 

Tags: , ,
THE FLORIDA LEGISLATURE NEEDS TO MANDATE CONDO AND HOA EDUCATION  By Eric Glazer, Esq.

THE FLORIDA LEGISLATURE NEEDS TO MANDATE CONDO AND HOA EDUCATION By Eric Glazer, Esq.

  • Posted: Oct 28, 2019
  • By:
  • Comments: Comments Off on THE FLORIDA LEGISLATURE NEEDS TO MANDATE CONDO AND HOA EDUCATION By Eric Glazer, Esq.

THE FLORIDA LEGISLATURE NEEDS TO MANDATE CONDO AND HOA EDUCATION

By Eric Glazer, Esq.

We all know that condo and HOA board members must get certified within ninety (90) days of getting on to their Board of Directors. Unfortunately however, Florida law allows board members to get certified either by attending an educational course or by signing a ridiculous, silly, self-serving, nonsensical affidavit that says you read your governing documents and promise to enforce them. If you live in a condominium, the affidavit does not require you to say you have read Florida Statute 718. If you live in an HOA, the affidavit does not require you to say you have read Florida Statute 720. In fact, many association documents contain illegal provisions. So leave it to the State of Florida to certify a director who promises to uphold and enforce the illegal provisions contained in their governing documents.

Just a few years ago a Miami Dade County grand jury delivered a blistering report about the state of condominiums in Miami-Dade County. It wasn’t flattering. The grand jury report was on the contrary, a blistering report about just how bad things are in many of our associations. Kickbacks, stealing and conflicts of interest seem to be everywhere. In response to this grand jury finding, The Florida Legislature passed numerous new laws making certain actions a crime. If anyone knows anyone who knows anyone that was arrested under any of these new crimes, let me know because I haven’t heard of anyone. I warned when these laws were passed that the local police departments have murders, rapes and robberies to solve, not election crimes. Sure enough, law enforcement rarely if ever gets involved.

One way that The Florida Legislature could have helped is by mandating that if you want to be a board member you must take an educational class approved by the Department of Business and Professional Regulation. There is no requirement under the law that a Board member be an attorney, accountant, contractor, or have any prior experience in association matters of any kind. Yet, when board members are elected or appointed, they are given the keys to the kingdom and are often times in charge of budgets in the seven or eight figures. They need to immediately know some laws, rules, regulations and have a general understanding of their governing documents. When they don’t, money is misspent. Lawsuits happen. Maintenance suffers and ultimately all the unit owners suffer financially. The lawyers do well however.

I have taught the Board Certification educational course to about 20,000 Floridians all across the state. These people wake up early, take time out of their busy lives and all want to become better board members and keep their association out of harm’s way by attending a 3 hour class. It is embarrassing for me to tell them that they were not required to attend today’s class and instead they could have printed out a stupid form off of the internet, signed it, and have become certified to the same extent as if you took this seminar. It’s insane and it’s insane that The Florida Legislature lets this shenanigans and this farce continue.

After having the honor and privilege of practicing in this area of law for 27 years I am delighted that The Florida Bar now recognizes Condominium and Planned Development Law as an area that is complicated and where attorneys themselves can become “certified.” I am honored to be one of a miniscule percentage of attorneys in the state to be certified in this area. Now it’s time for The Florida Legislature to step up to the plate, realize that education must be mandatory and make sure that board members don’t get certified by signing a dumb form. They have to attend a course for a few measly hours before they get to control millions of dollars in cash and real estate and potentially wreck the lives of their fellow owners. If they can’t find the three hours of time to attend the class how are they going to find the time to attend meetings, pass budgets and solve the association’s problems?

If you agree with me, then make your voice heard today. Not tomorrow. Right Now.

Here is the website to find your local Florida Senator and House members: https://www.flsenate.gov/senators/find

Send them an e-mail today that says:

“I’m writing to demand that The Florida Legislature remove the ability of officers and directors of community associations to become certified by signing an affidavit. All Florida community association directors and officers must be required to attend an educational course approved by the Department of Business and Professional Regulation.”

 

Tags: , , ,
The art of identifying and seizing an opportunity—Communication

The art of identifying and seizing an opportunity—Communication

  • Posted: May 24, 2019
  • By:
  • Comments: Comments Off on The art of identifying and seizing an opportunity—Communication

After months of attending events and expos all over Florida, countless introductions to and from others, I have the time to address the many different things I have been subjected to.  Here are some key ways to review and improve your business communication and make sure you’re making the most of it.

 

What does it take to run a successful business? Some people tell you it’s the art of identifying and seizing an opportunity—the union of preparation and luck. Some say preparation and education best prepare people for the rigours of the business world. Still others claim it’s all about connections. But none of them offer the whole story.

There’s one major element that’s essential: effective communication. Indeed, strong communication, more than any other factor, may be the leading predictor of business success. In some way or another, communication contributes to all those other factors. Communication helps us learn about new opportunities, manage our education, and ultimately maintain and cultivate important connections. But it also helps within a business; with employees, customers, and shareholders; and in virtually every other aspect of business.

 

LEARN TO LISTEN

It’s nothing short of frustrating when people pretend to listen when they really are just waiting for their chance to speak. An unfocused gaze, interruptions, and listening only for the bottom line are all poor listening habits. Here’s some unwelcome news: You probably exhibit poor listening on occasion too—and people notice it.

This ties to nonverbal communication. So much of the information we exchange with other people isn’t verbalized. If you manage to be a good listener, worlds will open up to you. People love being listened to. It’s probably the easiest way to put someone at ease: Just listen to what they have to say, and actually be present for the conversation.

Paradoxically, bosses especially need to master great listening skills. Even though it’s ostensibly the boss’s job to tell people what to do, if the boss wants to be appreciated and valued by his or her subordinates, he or she will genuinely listen to concerns and try to understand. It’s this careful attention that separates good bosses from great.

 

BODY LANGUAGE

Nonverbal communication is best used to supplement your understanding or experience of the interaction, not be a substitute for basic communication (especially when discussing important matters). For this reason, always interpret signals you see as a group. Don’t take your cues from one signal alone, but rather as a whole, and for the general mood of the situation.

By the same token, it’s important to control the nonverbal cues you project to your colleagues. Chances are you’re giving away clues and extra information all the time, even when you’re not aware of it. Slowly and carefully consider how gestures and expressions may be interpreted, both to help you understand people, but also to help people understand you.

 

People are raised in a variety of ways and are comfortable and uncomfortable with different things. Despite our differences, we should all employ good manners.  “There is a reason for manners and courtesy and it is not just to be nice. The purpose of manners is to give us a practical structure to deal with each other… It is the glue of civilization and a utilitarian road map for dealing in everyday business.”

Social graces are necessary in face-to-face interactions and emails. Now they also apply to customer relations on social media, where increased visibility makes it all the more important to respond promptly and politely to customer concerns. Having good manners and social graces make every interaction, business or otherwise, smoother. Go out of your way to be polite.

 

Being in tune with others’ feelings and emotions. It can be as simple as noticing and taking extra care when someone is having a rough week, or as complex as understanding the historical or social issues that may personally affect someone.

At work, high emotional intelligence guides social interactions and helps people work together more effectively. It improves communication and allows teams to tactfully discuss differing opinions. Leaders in a company who actively pay attention to others’ emotions have happier employees because they are more socially aware, are respectful of diversity, and know how to handle conflict. This further translates to more positive interactions with vendors and customers.

 

PAY ATTENTION TO NONVERBAL COMMUNICATIONS

Even though a number of studies place the importance of nonverbal communication equal to or surpassing that of verbal communication, it continues to be misunderstood and underestimated. Businesspeople who have mastered the ability to communicate nonverbally have several distinct advantages in the business sphere, from exuding confidence to reinforcing authority.

Facial expressions, posture, eye contact, voice, and hand gestures all fall into this category. Mastering the art of nonverbal communication for business relations is not easy, but can provide a new dimension in your communications with colleagues, as well as friends.

 

Nonverbal communication is best used to supplement your understanding or experience of the interaction, not be a substitute for basic communication (especially when discussing important matters). For this reason, always interpret signals you see. Don’t take your cues from one signal alone, but rather as a whole, and for the general mood of the situation.

By the same token, it’s important to control the nonverbal cues you project to your colleagues. Chances are you’re giving away clues and extra information all the time, even when you’re not aware of it. Slowly and carefully consider how gestures and expressions may be interpreted, both to help you understand people, but also to help people understand you. The bottom line: It’s best to master nonverbal communication before testing out gestures and expressions that are outside of your comfort zone during an important meeting.

 

 

DRAWING CONCLUSIONS and ASSUMPTIONS

Some assumptions can be downright dangerous to relationships, business transactions, or both, and it’s your job to question them when you see them.

We aren’t mind readers. Rather than make assumptions about why a colleague hasn’t responded to an email, if a client is satisfied with your work, or if an innovative product will be profitable, ask questions. Stick to the facts you do know, and let the other person fill in the rest. There are many examples of businesses missing out on real opportunities because they failed to challenge their assumptions about new products or technologies until it was too late. Subtly and deftly attempt to understand the context of the assumption to gauge its value. When you take the time to challenge assumptions, you may learn more information about the subject and improve your business as a result.

This may seem similar to drawing conclusions and assumptions, but it’s actually different. Somewhat counter-intuitively, when you ask people questions, getting information is actually a secondary goal. The goal is to get them to talk and relax, and give you the opportunity to practice those listening skills. In business, the more information the better—but you need to remember this – if you don’t ask questions or if you assume this can bring up resentments, so follow up with a call or a reminder of your meeting them. Asking the right questions takes effort, but it can have immense rewards. If you know the right questions to ask, you can find out the information you want.  in some cases you need.

 

COMMUNICATIONS SEPERATES GOOD BUSINESS FROM GREAT ONES

When you communicate with people in your organization or new clients more effectively, you’re more aware of potential problems and better able to implement solutions. Focus improving your communication: You’ll be more informed about every aspect of the business and you’ll understand the concerns of your coworkers and clients alike.  If you communicate with your customers well, you can catch potential pitfalls and other issues early on. Appraise the communication system at your business and see how these tips work for you.

This isn’t about telling people what they want to hear, though that’s a part of equation. Really, it’s about knowing how to talk to people. In other words, organize your communication so you reveal the information that’s most important to your audience first.

 

 

AJ Michaels – Operations Manager of SFPMA

We are State of Florida Property Management Association; Dedicated to advocacy and promoting professionalism in the property management, condo and Hoa industries. Through information, educational opportunities, our members are enabled and encouraged to reach their full potential in our industry. Becoming a member can lead to new relationships and increased oppertunities for you and your company.

Tags: , ,
VIOLATIONS! IT’S NOTHING PERSONAL

VIOLATIONS! IT’S NOTHING PERSONAL

  • Posted: Nov 20, 2018
  • By:
  • Comments: Comments Off on VIOLATIONS! IT’S NOTHING PERSONAL

VIOLATIONS! IT’S NOTHING PERSONAL

by Enrolled Agent Steven J. Weil, Ph.D., EA, LCAM, president, Royale Management Services, Inc.

We know that the first thing most owners think when they receive a violation notice is that they are being targeted and that the board or management is out to get them. Nothing could be further from the truth. The board is charged by the governing documents with oversight of association operations along with protecting the property value and enforcing the rules.

Violation notices are not personal or targeted. They are simply the means by which the association lets owners know about rule violations and gives them a chance to correct a problem.  Violation notices can be generated by a manager’s observations, board observations and even from observations by fellow owners. While you may feel as though you are the only one to receive a violation notice, this is generally not the case. The truth is that most of the violation notices can be easily remedied by simply fixing the problem or complying with the rule and letting management know the problem has been resolved.

We are often asked why we sent a violation notice instead of simply knocking on the door or calling. There are several reasons we send written notices.  The first is that while it’s easy to misinterpret what is said, and it can often turn into “he said/ she said,” a written notice clarifies what is being said and assures that there is a written record. The second is that it’s inappropriate and unsafe in this day and age for association employees, managers and/or board members to confront owners in person. The purpose of a violation is to get the problems corrected and maintain community standards while protecting the safety and quiet enjoyment of all unit owners.

The board and management know that rules can sometimes be complex, and it’s easy to make a mistake and violate the rule or misunderstand the governing documents. No one enjoys sending violation notices, and we all know that it’s upsetting to get a violation notice; but in truth correcting the problem and letting management know that you have taken action is all that is required to relegate it to history.

 

Tags: , , , , ,
Now That You’re Elected to the Board, Are You Aware of the Reporting Statute?

Now That You’re Elected to the Board, Are You Aware of the Reporting Statute?

  • Posted: Aug 29, 2018
  • By:
  • Comments: Comments Off on Now That You’re Elected to the Board, Are You Aware of the Reporting Statute?

Now That You’re Elected to the Board, Are You Aware of the Reporting Statute?

Congratulations! You’ve succeeded in being elected as a member to the prestigious world of your Homeowner’s Association Board of Directors! But are you aware of the certification requirements of Fla. Stat. 720.3033 that could suspend or even end your newly “elected official” career before it’s even begun? As a newly elected Homeowner’s Association Board Member you are required to comply with the reporting requirements imposed by the Florida Legislature through the enactment of Florida Statute 720.3033 as amended on July 01, 2013 and that requires all HOA directors to verify that they are prepared and qualified to serve their respective association board in one of two ways.

The first option via §720.3033(1)(a) is that within 90 days after being elected or appointed to the board, each director shall certify in writing to the secretary of the association that he or she has read the association’s declaration of covenants, articles of incorporation, bylaws, and current written rules and policies; that he or she will work to uphold such documents and policies to the best of his or her ability; and that he or she will faithfully discharge his or her fiduciary responsibility to the association’s members.

Board Member Courses can be found on our Calendar of Events

The second option via §720.3033(1)(a) is that within 90 days after being elected or appointed to the board, in lieu of such written certification, the newly elected or appointed director may submit a certificate of having satisfactorily completed the educational curriculum administered by a division-approved education provider within 1 year before or 90 days after the date of election or appointment. Furthermore, according to §720.3033(1)(b), the written certification or educational certificate is valid for the uninterrupted tenure of the director on the board. It would behoove the newly elected or appointed board member to pay heed to this requirement because a director who does not timely file the written certification or educational certificate shall be suspended from the board until he or she complies with the requirement and the board may temporarily fill the vacancy during the period of suspension. However, as a side note, it would be prudent and diligent for the newly elected director to be familiar with and understand both their own associations governing documents and the Florida Statutes applicable to homeowner’s associations.

After you have complied with the reporting requirements of §720.3033, the association shall retain each director’s written certification or educational certificate for inspection by the members for 5 years after the director’s election. However, the failure to have the written certification or educational certificate on file does not affect the validity of any board action as provided in §720.3033(1)(c). It bears noting at this juncture that if for any reason you are removed from or surrender your position as a director prior to the termination of your elected term that you will have to re-certify upon being re-elected or appointed back on the board of directors in the same manner as your initial election or appointment.

Read other Articles for HOA Board Members

 

Tags: , , ,
Pros and Cons of Living in an HOA Community

Pros and Cons of Living in an HOA Community

Pros and Cons of Living in an HOA Community

Pros:

  • The homeowners association pays for common areas like swimming pools, spas, tennis courts, parks, private roads, sidewalks and clubhouses you are able to enjoy a pool without having to maintain or clean it, or enjoy a playground or garden without the hassle of maintenance.
  • Some HOA’s also offer services like lawn maintenance to keep the neighborhood looking good all the time. You don’t have to hire someone yourself and your property always looks pristine.
  • Homes within HOA communities typically maintain their values better than non HOA deed restricted communities. By regulating the appearance of common areas your curb appeal and home price tend to be higher.
  • Often, HOAs promote a strong sense of community. Friends can gather at the clubhouse or common areas, people get to know their neighbors, and there are usually social functions planned year round.
  • Issues with neighbors like unwanted cars parked in front of your house are handled by the association, taking the pressure (and responsibility) off of residents.

 

Cons:

  • The price of your perfectly manicured lawns could be losing the freedom to choose your holiday decorations or the color of your house. There are rules and restrictions and the HOA documents can dictate what you can and cannot do in common areas.
  • A homeowner may encounter restrictions if they want to rent out their property. The association may require potential renters to be screened and approved by the HOA board, how much you charge for rent could also be regulated along with the duration of the rental. Some HOA’s ban rentals altogether.
  • The more amenities that are offered, the more the monthly dues can be. Sometimes the extra expense of monthly dues may more than some homeowners can afford.
  • Some HOAs are poorly managed by board members who don’t have enough time to devote to the community. Others too might be managed by a third party company (property manager) which can feel like giving up control of your neighborhood.

 

Before purchasing a property within an HOA or condo community it is very important that you find out how the association is run, how much the monthly association fees are, what the fees cover and how much money is in the reserve fund to cover any large expenses such as replacing a clubhouse roof. Always get a copy of the rules and regulations before you purchase so that you are completely aware of what you can and cannot do within the community. For example, if you purchase within a condo/townhouse community where there are zero lot lines, more than likely you won’t be able to touch the landscaping outside your home. If you are an avid gardener then this is definitely something you will want to consider before purchasing.

One thing that is a must is:  Education! Managers and Board Members can sign up via their Email Addresses we have Articles written by members that are sent weekly to our industry.

SFPMA and its members provide the industry with information, Events, Services, Forms, Legal for Condo and HOA’s, Our members are the Trusted Service Companies, Businesses and Management Professionals that help Condo & HOA’s all over Florida.

 

Tags: , ,
Keep up to Date with Training & Events in Florida.

Keep up to Date with Training & Events in Florida.

  • Posted: Apr 22, 2018
  • By:
  • Comments: Comments Off on Keep up to Date with Training & Events in Florida.

Keep up to Date with Training & Events in Florida.

View the Calendar, Take advantage of Educational Courses or Start your new Career as a Property Manager …

SFPMA has updated our Calendar of Events.  The three areas that have been updated are, The Calendar of Events, An Education Section and Educational Courses.

These 3 areas are set with other categories that define the additional courses that we get from our members and partners all over the State.  As our members we ask you to send to us any future events, courses and Meetings that you wish us to add to our calendar. With many of HOA and Condo owners wishing to become a Board Member and take part in upcoming Elections, I is important to give them informative and educational courses to help them learn what their roles with running their buildings will be.  Many of these Board Members must educate themselves with the understanding of how budgets, maintenance issues even bid selections for projects in their buildings work to what their role in the management of the buildings will be. Once you learn take the course to become a Board Member and register it with your Condo and or HOA. The Learning does not stop there!

Many Courses are being added for Management Professionals, Board Members and Owners so they can learn how to effectively run and govern in their new roles as directors of the many buildings throughout Florida’s Property Management Industry.

 

Add your Events by filling out this form, One of our Staff will call you…….

 

[the_ad id=”32126″] Tags: , , ,
ROYALE MANAGEMENT SERVICES, FT. LAUDERDALE, HOLDS FREE CONDO AND HOA BOARD MEMBER SEMINARS

ROYALE MANAGEMENT SERVICES, FT. LAUDERDALE, HOLDS FREE CONDO AND HOA BOARD MEMBER SEMINARS

Free educational seminars for Board members of condos, homeowners associations (HOAs) and co-ops take place on Monday evenings.  Sessions are held at the offices of Royale Management Services, 2319 North Andrews Avenue.  These seminars are designed for board members of managed and self-managed associations.

The Property Management Seminars for 2018 take place on the third Monday of the month: 

Date                                   Seminar Title

02/19/18      Conducting Meetings & Getting The Work Done

03/19/18      Reading & Using Association Financial Statements

04/16/18      Condo Elections – Getting It Right

05/21/18      Building a Budget That Works

06/18/18      Conducting Meetings & Getting The Work Done

09/17/18      Reading & Using Association Financial Statements

10/15/18      Building a Budget That Works

11/19/18      Condo Elections – Getting It Right

Open to all who register, the seminars are conducted by Steven J. Weil, Ph.D., EA, LCAM, president of the 31-year old Fort Lauderdale property management firm.  Refreshments and networking begin at 5:30 p.m. The seminars follow promptly at 6:00 p.m. and include a Q&A. Space is limited. Reservations may be made by calling 954-563-1269. We want to help make you the best board member you can be. Seating is limited. Make your reservations early.

Dr. Weil has appeared on Good Morning America and is frequently quoted by major media.  His bylined articles are regularly published on the State of Florida Property Management Association website (sfpma.com).  “The Condo Board Certification Classes are designed to help new board members meet the Florida 718.112 Statute requirements for Condo Association Board Members,” Dr. Weil said. “Our seminar goal is prevention — to help keep Board members of condos, HOAs and Co-ops from frequently having to call their attorney.”

 

Tags: ,
COPING WITH FL H.B. 1237 (2017)

COPING WITH FL H.B. 1237 (2017)

COPING WITH FL H.B. 1237 (2017)

by Steven J. Weil, Ph.D., EA, LCAM, Royale Management Services, Inc.

Whenever the Legislature puts new laws on the books, in order to avoid becoming involved in expensive litigation, managers and board members are obliged to sort out what it all means along with what steps should be taken to address the real meaning, terms and conditions that the courts and judges conclude were the Legislature’s intent.

Florida’s Governor signed Florida House Bill 1237 (2017) into law on June 26, 2017.  The legislation went into effect on July 1, 2017 and added several requirements and prohibitions to the Florida Condominium Act (Chapter 718).

For example, HB 1237, now the law of the land in Florida, states, “Board members may serve 2-year terms if permitted by the bylaws or articles of incorporation. a board member may not serve more than four consecutive 2-year terms, unless approved by an affirmative vote of two-thirds of the total voting interests of the association.” The law also includes an exception if there are not enough eligible candidates to fill all board positions which allows current board members to continue beyond the otherwise prescribed period.

What is yet to be determined is whether this means a board member may serve no more than eight one-year terms, or, if association rules limit terms to one year, the four-term limitation still applies? Other questions still left unanswered include: When do these terms start? Is the law to be enforced retroactively, or are board members prior terms excluded from the new rule?

Another new rule states that a condo board member, despite good intentions, could be subject to penalties for violation of this caveat:  “An association may not employ or contract with any service provider that is owned or operated by a board member or any person who has a financial relationship with a board member.”  Under a strict interpretation of this update to the law, if a board member runs a pool service and is taking care of the association’s pool maintenance for only the cost of chemicals, that board member could end up facing criminal penalties for trying to help out.

Conflicts of interest (such as a board member providing a proposal from a company they are affiliated with) may have long existed, and while board members always should have abstained from any vote where it could be perceived that they had a financial conflict of interest, it could now be a criminal offense.

This is not the only place a condo officer, director or manager could find themselves facing the threat of criminal penalties.  While we all know, or at least should know, kickbacks of any kind are wrong, often accusations made by a unit owner are not grounded in reality and instead are based on little more than spite and mistrust.

However, The updated Florida Statute 718.111 now reads “[A]n officer, director, or manager may not solicit, offer to accept, or accept any thing or service of value or kickback for which consideration has not been provided for his or her own benefit or that of his or her immediate family, from any person providing or proposing to provide goods or services to the association. Any such officer, director, or manager who knowingly so solicits, offers to accept, or accepts any thing or service of value or kickback is subject to a civil penalty pursuant to s. 718.501(1)(d) and, if applicable, a criminal penalty.”

The updated statute goes on to require that an officer or director who is charged with certain crimes (primarily crimes of dishonest character) shall be removed from office and provides requirements for filling the vacancy left by any such removal. The silver lining here is that you have to be charged with a crime before you can be removed, a mere accusation is not enough.

Will these and other provisions that have been added to the law make it even more difficult to find volunteers who are willing to serve as board members? No one really knows yet. What we do know is, it will probably take years for the legislature and the courts to sort this new law out.  We also know that those who serve on our boards of directors are most often well-meaning volunteers who want to do the right thing and serve their fellow owners.  All we can do is hope that none of these changes make it harder to get these good people to serve, and the law works as intended keeping those with a self-serving agenda from throwing their hat in the ring.

We are not attorneys, and anything said here should not be construed as legal advice. This article is purely for educational purposes, with the goal of helping associations better understand current updates to the law. Royale Management Services team members are Licensed Community Association Managers (LCAM) who work with associations to manage, to navigate and to comply with the law.  As you can see, these changes raise several questions, and you can be sure that until these issues are addressed by a court, no one will really know the correct answers. Nevertheless, it is always advisable to seek legal counsel if an issue arises.

Tags: , ,