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THERE ARE THINGS TO STILL BE THANKFUL FOR  By Eric Glazer, Esq.

THERE ARE THINGS TO STILL BE THANKFUL FOR By Eric Glazer, Esq.

  • Posted: Nov 23, 2020
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THERE ARE THINGS TO STILL BE THANKFUL FOR

By Eric Glazer, Esq.

I wrote this blog last year.  I’m using it again because for many of us, and perhaps almost all of us, we are in the middle of the most difficult year of our lives. Nobody could have predicted the disaster that has been 2020 on a world-wide scale.  So –I’m running the column again, hoping to challenge all of us into thinking about the positives that still remain in our lives and I’m hoping that your words of inspiration help inspire and cheer up all of us.

 

In three days from now we are supposed to sit around the table stuffing turkey down our throats while reflecting on all the things we should be thankful for.  The easy ones are family and good health.  Some might also be thankful for a new job, new car, new spouse or even new body part(s).  How many of you however would be thankful for the community and home you live in?

Week after week, throughout the year, many of you write in complaining that there isn’t much to be thankful for in your community.  While you may be sincere in your belief you’re your community is worse than North Korea and that your association should be named after Alcatraz, I also believe that if given enough time to think about it and come up with an answer, you can come up with at least one thing to be thankful for about the community you live in.

So, in the spirit of the Thanksgiving holiday, I am politely asking you to dig down, way down.  Keep going.  A little more…….and find something to be thankful for in your community.  Perhaps you’re only thankful that someone other than yourself is crazy enough to serve on your Board.  Maybe you’re thankful for a wonderful neighbor you have.  Perhaps you’re thankful about the wonderful amenities your association has to offer, like the clubhouse and the swimming pool.  Maybe, just maybe you’re thankful for the good work your Board is doing.

Today, you must come up with something nice to say.  It’s easy to participate when the topic allows you to attack.  Today, I’m asking you to work harder and say a few nice words about your community, your neighbors or dare I say it…….your Board.

To all of our wonderful blog readers and your families, I wish you a happy and healthy Thanksgiving holiday.  Now….Be nice.

 

Glazer & Sachs, P.A.

Florida Homeowners’ Association and Condominium Law Attorneys

 

Thank you for your interest in Glazer and Sachs, P.A.  Our six attorney firm exclusively practices community association law.  Visit our website located at www.condo-laws.com and be sure to click on our “Legal Beat” newsletter where you can read our association law newsletters that we have been publishing for the past two decades.  While there, you can also learn more about the firm’s attorneys, see some of our TV appearances and read articles from around the country wherein attorneys at this firm have been asked to comment about association legal issues.

 

 

 

 

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Election Webinar: Condominiums, Homeowners’ Associations and Cooperatives by KBRLegal 

Election Webinar: Condominiums, Homeowners’ Associations and Cooperatives by KBRLegal 

  • Posted: Nov 16, 2020
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Elections: Condominiums, Homeowners’ Associations and Cooperatives

by KBRLegal 

Join attorney Allison L. Hertz for a one-hour webinar addressing election law and procedures for condominiums, cooperatives and homeowners associations, including, eligibility requirements and terms of directors, best practices for remote meetings, vacancies between elections, and election disputes.

Course # 9630571 | Provider # 0005095 | 1 CE in OPP or ELE
Instructor: Allison L. Hertz, Esq., B.C.S.

Nov 18, 2020 11:00 AM in Eastern Time (US and Canada)

Register Now

 

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Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: by KBRLegal.com

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: by KBRLegal.com

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: 

by KBRLegal.com

 

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: 

Two New Cases Board Members and Managers Need to Know About


 

CASE No. 1: On June 12, 2020, the Florida’s Fifth District Court of Appeal (“5th DCA”) entered its opinion in Latheresa Williams, On Behalf Of Herself And All Others Similarly Situated v. Salt Springs Resort Association, Inc., and Bosshardt Property Management, LLC., Case No. 5D18-3913 (Fla. 5th DCA 2020), The holding of this case echoes advice I have all too often provided to board members and managers to NOT publish what is commonly referred to as a “deadbeat list.” This type of list is posted in the community and identifies each debtor’s name and sometimes the assessment balance past due, too. No good ever comes from publication of such a list. In fact, the Florida Consumer Collection Practices Act (the “FCCPA”) forbids it if such publication of the deadbeat list is to harass and/or annoy the debtor.

 

More specifically, section 559.72, Florida Statutes, provides in relevant part that “[i]n collecting consumer debts, no person shall… [p]ublish or post, threaten to publish or post, or cause to be published or posted before the general public individual names or any list of names of debtors, commonly known as a deadbeat list, for the purpose of enforcing or attempting to enforce collection of consumer debts.”

 

In this case, the plaintiff was seeking class action status for all others similarly treated. This could lead to tremendous liability should discovery later evidence that the association and/or its management company regularly published deadbeat lists. At trial, the court had granted a motion to dismiss filed by the association based on a prior case, Bryan v. Clayton, also a 5th DCA case dating back to 1977 where the Court held that maintenance assessments were not “debts” for purposes of the FCCPA. In order to re-consider the prior Bryan decision, all of the 5th DCA sitting appellate judges participated in the Williams case, a process legally known as an “En Banc” style of review.

 

The Court in Williams took note that the FCCPA is designed to protect consumers and does not limit unlawful activities only to “debt collectors,” but rather to “all persons” involved in the collection of a debt. By way of contrast, the Federal Fair Debt Collection Practices Act (FFDCPA) applies only to debt collectors, which excludes the association and arguably its management company, and not to “all persons” involved in the collection of a debt, as in the FCCPA.

 

Under the prior Bryan holding, a past due assessment obligation was not even considered a “debt” for purposes of the FCCPA and the FFDCPA. In the recent Williams case, the Court went to great lengths to explain that, in fact, an association assessment obligation “is a debt which arose out of an obligation by a consumer out of a money, property, insurance or services transaction which is primarily for personal, family, or household purposes” and is therefore subject to FCCPA.

 

Thus, the Court remanded the case back to the trial court for further proceedings. While, its unknown how the plaintiff’s attempt for a class action certification will resolve, it is extremely likely that one or more defendants will be found to have violated the FCCPA for having published the “deadbeat list.” The takeaway from the Williams case is to never, ever publish a list of association debtors. This does not at all mean that the board cannot be provided a list of those members delinquent in their assessment obligations. However, it does mean such a list should not be made readily available to the membership by posting or mailing, etc.

 

 

CASE No. 2: On May 20, 2020, Florida’s Third District Court of Appeal entered its opinion in Old Cutler Lakes by the Bay Community Association, Inc. v. SRP SUB, LLC, Case No. 3D19-528 (Fla. 3d DCA 2020) regarding the liability of a third-party purchaser at a mortgage foreclosure sale for assessments that came due prior to the third-party acquiring title to the property. The Court’s holding in this case is in line with its prior holding in the case of Beacon Hill Homeowners Association, Inc. v. Colfin Ah-Florida 7, LLC, 221 So. 3d 710 (Fla. 3d DCA 2017), which based its decision on the landmark case decided by Florida’s Fourth District Court of Appeal in Pudlit 2 Joint Venture, LLP v. Westwood Gardens Homeowners Association, Inc., 169 So.3d 145 (Fla. 4th DCA 2015).

 

In the Old Cutler Lakes case, SRP SUB, LLC (“SRP”) was the successful bidder at a foreclosure sale on a first mortgage held by Wells Fargo. After obtaining title by a certificate of title, SRP filed an action for declaratory relief seeking a determination as to its liability for assessments that accrued prior to the issuance of the certificate of title. In relevant part, the Declaration of Covenant and Restrictions of Old Cutler Lakes by the Bay (“Declaration”) provided the following:

 

The sale or transfer of any Lot pursuant to the foreclosure or any proceeding in lieu thereof of a first mortgage meeting the above qualifications, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer.

 

This language is similar to the language contained in the declarations in the Beacon Hill and Pudlit 2 cases. In these cases, the courts applied a constitutional principal prohibiting the impairment of contracts in deciding that the statutory safe harbor did not control over the provisions of the declarations where the statute did not require such application and the declarations did not contain “Kaufman” language, which has the effect of making amendments to the Florida Statutes automatically applicable to a declaration as they are “amended from time to time.” As the provisions of the declarations expressly created rights for third-party purchasers, the third-party purchasers are “intended third-party beneficiaries” to such provisions which rights cannot be impaired pursuant to the constitutional principal prohibiting the impairment of contracts. In following the holdings of the Beacon Hill and Pudlit 2 cases, SRP was found not liable for any of the past due assessments that accrued prior to the issuance of the certificate of title. Thus, as with many declarations which have not been amended since their creation by the community’s developer, these, as yet to be amended, declarations may provide for a complete wipe out of all assessments that accrued prior to the transfer of title as a result of a mortgage foreclosure action or by deed in lieu of foreclosure.

 

The takeaway from the cases discussed above emphasizes the importance of reviewing and updating the association’s declaration, with the guidance of your association’s legal counsel, to ensure that it provides for necessary and available protections for the association and its members, including the use of “Kaufman” language, if appropriate to collect as much overdue assessment revenue as possible.


Rembaum’s Association Roundup  The community association legal news that you can use!

Kaye Bender Rembaum is a full service commercial law firm devoted to the representation of community associations throughout Florida. Under the direction of attorneys Robert L. Kaye, Esq.Michael S. Bender, Esq., and Jeffrey A. Rembaum, Esq., Kaye Bender Rembaum is dedicated to providing clients with an unparalleled level of personalized and professional service regardless of their size and takes into account their individual needs and financial concerns. We have offices in Broward County (Pompano Beach), Palm Beach County (Palm Beach Gardens), (Hillsborough County) Tampa, and office locations in Miami-Dade County by appointment.

Read More

 

 

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October 7 & 8th @ 1:00 pm AMENDING YOUR GOVERNING DOCUMENTS by Katzman Chandler

October 7 & 8th @ 1:00 pm AMENDING YOUR GOVERNING DOCUMENTS by Katzman Chandler

  • Posted: Oct 06, 2020
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AMENDING YOUR GOVERNING DOCUMENTS by Katzman Chandler

WEBINAR Florida

AMENDING YOUR GOVERNING DOCUMENTS by Katzman Chandler

Provider 0007237 • Course 9628489 • Credits 2 Hours

Manager Continuing Education Human Resource Credits

Date/Time Wednesday, October 7, 2020 1:00 pm

Are your Governing Documents up to date? Find out what needs to be updated or deleted, and how to go about the process of having an amendment written, approved and registered.


Q & A SESSION FOR AMENDING YOUR DOCUMENTS by Katzman Chandler

Q & A SESSION FOR AMENDING YOUR DOCUMENTS by Katzman Chandler

Date: Thursday, October 8, 2020 Time: 1:00 pm – 2:00 pm

Location: Online Event via, Zoom You have questions, we have answers!

Come join our Q & A Session to answer all your questions about Amending your Documents.

 

 

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HOA Board Member Certification & Excellent refresher course for Licensed CAMS by Andrew B. Black, Esq of KBRLegal

HOA Board Member Certification & Excellent refresher course for Licensed CAMS by Andrew B. Black, Esq of KBRLegal

Today @1:00pm

HOA Board Member Certification by Andrew B. Black, Esq of KBRLegal

WEBINAR Florida

HOA Board Member Certification & Excellent refresher course for Licensed CAMS by Andrew B. Black, Esq of KBRLegal

October 6, 2020  @ 1:00PM

Course # 9630140

Instructor: Andrew B. Black, Esq., B.C.S.

This webinar covers the essentials of HOA board membership, and is updated regularly to remain current with legislative amendments. In addition, this webinar satisfies Florida’s requirement for new HOA board members. It also serves as an excellent refresher course. Licensed CAMS will receive two (2) CE credits as IFM or ELE.

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Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: by KBRLegal

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: by KBRLegal

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability:

by KBRLegal

Two New Cases Board Members and Managers Need to Know About

 

CASE No. 1: On June 12, 2020, the Florida’s Fifth District Court of Appeal (“5th DCA”) entered its opinion in Latheresa Williams, On Behalf Of Herself And All Others Similarly Situated v. Salt Springs Resort Association, Inc., and Bosshardt Property Management, LLC., Case No. 5D18-3913 (Fla. 5th DCA 2020), The holding of this case echoes advice I have all too often provided to board members and managers to NOT publish what is commonly referred to as a “deadbeat list.” This type of list is posted in the community and identifies each debtor’s name and sometimes the assessment balance past due, too. No good ever comes from publication of such a list. In fact, the Florida Consumer Collection Practices Act (the “FCCPA”) forbids it if such publication of the deadbeat list is to harass and/or annoy the debtor.

 

More specifically, section 559.72, Florida Statutes, provides in relevant part that “[i]n collecting consumer debts, no person shall… [p]ublish or post, threaten to publish or post, or cause to be published or posted before the general public individual names or any list of names of debtors, commonly known as a deadbeat list, for the purpose of enforcing or attempting to enforce collection of consumer debts.”

 

In this case, the plaintiff was seeking class action status for all others similarly treated. This could lead to tremendous liability should discovery later evidence that the association and/or its management company regularly published deadbeat lists. At trial, the court had granted a motion to dismiss filed by the association based on a prior case, Bryan v. Clayton, also a 5th DCA case dating back to 1977 where the Court held that maintenance assessments were not “debts” for purposes of the FCCPA. In order to re-consider the prior Bryan decision, all of the 5th DCA sitting appellate judges participated in the Williams case, a process legally known as an “En Banc” style of review.

 

The Court in Williams took note that the FCCPA is designed to protect consumers and does not limit unlawful activities only to “debt collectors,” but rather to “all persons” involved in the collection of a debt. By way of contrast, the Federal Fair Debt Collection Practices Act (FFDCPA) applies only to debt collectors, which excludes the association and arguably its management company, and not to “all persons” involved in the collection of a debt, as in the FCCPA.

 

Under the prior Bryan holding, a past due assessment obligation was not even considered a “debt” for purposes of the FCCPA and the FFDCPA. In the recent Williams case, the Court went to great lengths to explain that, in fact, an association assessment obligation “is a debt which arose out of an obligation by a consumer out of a money, property, insurance or services transaction which is primarily for personal, family, or household purposes” and is therefore subject to FCCPA.

 

Thus, the Court remanded the case back to the trial court for further proceedings. While, its unknown how the plaintiff’s attempt for a class action certification will resolve, it is extremely likely that one or more defendants will be found to have violated the FCCPA for having published the “deadbeat list.” The takeaway from the Williams case is to never, ever publish a list of association debtors. This does not at all mean that the board cannot be provided a list of those members delinquent in their assessment obligations. However, it does mean such a list should not be made readily available to the membership by posting or mailing, etc.

 


 

CASE No. 2: On May 20, 2020, Florida’s Third District Court of Appeal entered its opinion in Old Cutler Lakes by the Bay Community Association, Inc. v. SRP SUB, LLC, Case No. 3D19-528 (Fla. 3d DCA 2020) regarding the liability of a third-party purchaser at a mortgage foreclosure sale for assessments that came due prior to the third-party acquiring title to the property. The Court’s holding in this case is in line with its prior holding in the case of Beacon Hill Homeowners Association, Inc. v. Colfin Ah-Florida 7, LLC, 221 So. 3d 710 (Fla. 3d DCA 2017), which based its decision on the landmark case decided by Florida’s Fourth District Court of Appeal in Pudlit 2 Joint Venture, LLP v. Westwood Gardens Homeowners Association, Inc., 169 So.3d 145 (Fla. 4th DCA 2015).

 

In the Old Cutler Lakes case, SRP SUB, LLC (“SRP”) was the successful bidder at a foreclosure sale on a first mortgage held by Wells Fargo. After obtaining title by a certificate of title, SRP filed an action for declaratory relief seeking a determination as to its liability for assessments that accrued prior to the issuance of the certificate of title. In relevant part, the Declaration of Covenant and Restrictions of Old Cutler Lakes by the Bay (“Declaration”) provided the following:

 

The sale or transfer of any Lot pursuant to the foreclosure or any proceeding in lieu thereof of a first mortgage meeting the above qualifications, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer.

 

This language is similar to the language contained in the declarations in the Beacon Hill and Pudlit 2 cases. In these cases, the courts applied a constitutional principal prohibiting the impairment of contracts in deciding that the statutory safe harbor did not control over the provisions of the declarations where the statute did not require such application and the declarations did not contain “Kaufman” language, which has the effect of making amendments to the Florida Statutes automatically applicable to a declaration as they are “amended from time to time.” As the provisions of the declarations expressly created rights for third-party purchasers, the third-party purchasers are “intended third-party beneficiaries” to such provisions which rights cannot be impaired pursuant to the constitutional principal prohibiting the impairment of contracts. In following the holdings of the Beacon Hill and Pudlit 2 cases, SRP was found not liable for any of the past due assessments that accrued prior to the issuance of the certificate of title. Thus, as with many declarations which have not been amended since their creation by the community’s developer, these, as yet to be amended, declarations may provide for a complete wipe out of all assessments that accrued prior to the transfer of title as a result of a mortgage foreclosure action or by deed in lieu of foreclosure.

 

The takeaway from the cases discussed above emphasizes the importance of reviewing and updating the association’s declaration, with the guidance of your association’s legal counsel, to ensure that it provides for necessary and available protections for the association and its members, including the use of “Kaufman” language, if appropriate to collect as much overdue assessment revenue as possible.

 

 

The Kaye Bender Rembaum Team Remains Available To You and Your Community Association

The health and safety of your Community and all residents is very important to us. We also realize that our clients have uncertainty and concerns around the continuing operation of your Community, and our team of attorneys will remain available to all of you during these times.

Be sure to check out our very useful and informative COVID-19 section on our website, which is updated regularly, as we continue to follow developments affecting community associations. You can visit it by clicking HERE.

 

 

 

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IS CAMPAIGNING ALLOWED IN YOUR ASSOCIATION ELECTION?  By Eric Glazer, Esq.

IS CAMPAIGNING ALLOWED IN YOUR ASSOCIATION ELECTION? By Eric Glazer, Esq.

IS CAMPAIGNING ALLOWED IN YOUR ASSOCIATION ELECTION?

By Eric Glazer, Esq.

Election season is approaching in community associations all across the state.  We already learned that if the governing docs say “No signs” you can’t put out Trump or Biden signs on your property.  But what about the people running for the Board in your own community?  Can they at least campaign?

Many associations do a wonderful thing.  They hold a “Meet the Candidates Night.”  Everyone running for the Board gets to speak to the community for a few minutes.  The truth is however, incumbents have it harder on such an evening because the crowd often times interrupts the candidate by yelling about some dumb decisions the candidate previously made while on the board.  The newbies have it easier.  However, if you have a Meet The Candidates Night by Zoom or some other video conference, everyone can be muted while the candidate speaks.  I definitely recommend it and I have hosted several of these previously.

Can the Board send out a letter to the community suggesting how people vote and/or telling everyone why they should vote for the incumbents again?

 

The Florida Administrative Code states: (for condominiums)

The second notice and accompanying documents shall not contain any communication by the board that endorses, disapproves, or otherwise comments on any candidate.

In other words – when the ballots gets sent out – no comments by the Board.

But that’s it.  That’s the only mention about campaigning in the law.  Now obviously, Board members should not be utilizing association resources for their personal elections.  They should not be using association letterhead, envelopes and contacting members by accessing their e-mail addresses that the other candidates don’t have access to.

However, no candidate is prohibited from spending their own resources and creating a letter to send to the unit owners telling them why they are the best man or woman for the Board position.

Good luck to all the candidates!


Learn how to perform your new job on the Board!

Responsibilities of a Board of Directors for a Condo Association

The duties of the condo board encompass every aspect of the condominium’s governance and management. They are the people making all of the major decisions and establishing policies for the condo association. Under Florida law, the board or its committees set assessments for residents, hire personnel, maintain common areas, purchase insurance, obtain accounting and legal services and establish house rules.  Condominium Associations

 

 

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WEBINAR: NAVIGATING THE FEDERAL FAIR HOUSING: ASSISTANCE ANIMAL OR PET by KBR Legal, Pompano Beach

WEBINAR: NAVIGATING THE FEDERAL FAIR HOUSING: ASSISTANCE ANIMAL OR PET by KBR Legal, Pompano Beach

  • Posted: Jul 20, 2020
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WEBINAR: NAVIGATING THE FEDERAL FAIR HOUSING: ASSISTANCE ANIMAL OR PET

WEBINAR Florida Register

WEBINAR: NAVIGATING THE FEDERAL FAIR HOUSING: ASSISTANCE ANIMAL OR PET Date/Time Date(s) – 2020-07-23 1:00 pm – 2:15 pm Location Pompano Beach Office Register HERE A one-hour CE credit course with credit available as IFM or ELE. Provider #: 0005092 | Course #: 9630144 Online bookings are not available for this event.

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MAINTAINING ORDER: A DISCUSSION ON RULES & REGULATIONS, GOVERNING DOCUMENTS AND FINING IN COMMUNITY ASSOCIATIONS /by Katzman Chaldler / July 23rd

MAINTAINING ORDER: A DISCUSSION ON RULES & REGULATIONS, GOVERNING DOCUMENTS AND FINING IN COMMUNITY ASSOCIATIONS /by Katzman Chaldler / July 23rd

  • Posted: Jul 20, 2020
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MAINTAINING ORDER: A DISCUSSION ON RULES & REGULATIONS, GOVERNING DOCUMENTS AND FINING IN COMMUNITY ASSOCIATIONS

WEBINAR Florida Register

MAINTAINING ORDER: A DISCUSSION ON RULES & REGULATIONS, GOVERNING DOCUMENTS AND FINING IN COMMUNITY ASSOCIATIONS by Katzman Chandler Date: Thursday, July 23, 2020 Time: 12:00 pm – 2:00 pm Location: Online Event via, Zoom What are community association covenants and restrictions? What rules and regulations? How are they adopted and enforced? This course provides answers to these questions, as well as a primer on association governing documents, their order of priority and enforceability, and includes a review of fines and fining procedures. REGISTER NOW

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Are Florida’s Board Member Courses….. Enough Education?

Are Florida’s Board Member Courses….. Enough Education?

  • Posted: Jun 22, 2020
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This weekend a Question was given to us, In this was the lengthy details of a Board that was acting like dictators imposing fines even circumventing the Florida Laws.

Now to be fair if Condo or HOA Docs already include Violations and Fining in their Buildings or on their properties then a Board may violate an owner or owners for the violations. Most do not! even with this every Board must abide by what is written in the Laws of Florida. Below and part of this article is an Article our Friends at the Cooperator published and hit the nail on the head with Boards Power and we feel Lack of Education! 

Condo owners often complain that their board doesn’t do enough, or that the board members aren’t involved as much as they would like in the administration and maintenance of their building. While a disinterested or apathetic board is certainly a problem, going to the other extreme can be just as bad…or maybe even worse. Board members who let their power go to their heads can be a liability to their building community on many levels, but of particular concern is a board that oversteps its bounds and intrudes on the privacy and agency of individual residents.

Understanding the boundaries and limitations of your power is something that every board member needs to realize or else trouble—including legal problems—can result.

Another Question came in: This Board ruled that Washers and Dryers are no longer allowed in the units, Even though there are areas in every unit where water hookup and venting has occurred in the past? The owner stated that there was NO owners vote and this was never placed into the Condo Docs….He did find, The Board made a deal with a company to place machines on each floor of a 14 story building and the board wants owners to use these machines to bring in money to help pay for these! So the board took a secreat Vote and approved this spending money of the owners with no vote!  He asked us is that legal?

 

Knowledge is Power

Balancing what is right and what is expected can be tricky for boards — so much so that sometimes, board members and non-board members alike wonder why people bother to serve in the first place.

“I always tell my fellow board members and clients that if you’re going to be on a board, you are basically a sacrificial lamb,” says Luigi Rosabianca, managing partner of the Manhattan-based law firm Rosabianca & Associates PLLC. “You don’t get paid for it, but by doing so you are providing a service to your building. It’s not only a way to protect your investment, but also your quality of life—but [board members] have to learn what being on a board means, and not to overstep their bounds.”

What can a board member really do about an ongoing noise complaint, for example? What sort of majority is needed if a vote in enacted to change something within the condo or co-op? Can a board impose rules regarding security or visitors?

Questions like these can usually be answered by reading the co-op or condo’s official governing documents, says Al Pennisi of the law firm of Pennisi Daniels & Norelli LLP in Rego Park. “The powers are designated in the corporate documents—the certificate of corporation and the bylaws—and some of the additional powers are listed in the offering plan and amended in the offering plan when it’s a co-op conversion. Primarily, it’s the corporate documents and enhanced by case law.”

It’s essential that anyone who is elected to their board read and understand what they can and cannot do as a board member.  “You need to do it with all the knowledge necessary,” Rosabianca says. “The first thing you need to do is read the offering plan or prospectus as well as the bylaws, which very specifically outline what the board’s powers and limitations are.”

In addition to the documents, a new board member can also get advice and instruction from those already involved in the process. “When someone new comes on, they get instruction from owners, management companies and other board members if they aren’t educated about those sort of things,” says David J. Byrne, a shareholder attorney with the law firm of Stark & Stark, with offices in New York and in New Jersey. “In a practical setting, they don’t always read the documents they should.”

Condos and co-ops have different rules, and their boards have very different powers. Even comparing co-op to co-op or condo to condo will find differences, so just because you served on the board of one building doesn’t mean your current board will operate exactly the same way. Your powers and limitations will be most likely be different on any board you serve.

“The power a board has in a co-op is different than that of a condo,” Pennisi says. “Co-op boards do have more power than condo boards because they control the use of the apartments, they control the sales and leases where in a condo, the unit owner can sell at his or her discretion. Condo boards have less power but both boards can make and enforce rules and regulation pursuant to the documents.”

 

 

Barging In

One of the chief complaints among residents who think their board has overstepped its bounds arises when someone—a super, handyman, or other building staff member—enters their home without permission, usually to check out something like a leak or electrical problem.

“With condos and co-ops you have classic communal living—and with communal living there are certain sacrifices that have to be made,” Rosabianca says. “You are conceding that your neighbors have certain rights to access common elements in the building, and that [building staff] may periodically need to access to your unit.”

Let’s say there is a leak in unit 4F that will affect the owner’s quality of life downstairs in 3F in not taken care of. If the owner in 4F can’t be reached to let building staff into the unit, it is reasonable to expect that the super or repair person will access the apartment to deal with the situation—with or without express permission from the owner of 4F. Upsetting as it might be to think of strangers entering one’s home without permission or supervision, that access is considered reasonable if it’s deemed necessary under the circumstances.

“I always use the ‘reasonableness standard,’” says Rosabianca, “which is vague, but most management companies are really well versed and know what to do and what not to do in situations like these. As a rule of thumb, you should ask, ‘Is this in the best interest of the building?’”

According to Pennisi, co-op documents require you to give the board access to your apartment to make repairs—but that’s not usually the case in condos.

“If there’s a leak in the walls [of your condo,] they just can’t go in and break the door down,” he says. “It has to be a bona fide emergency. If water is leaking under your door and the super or manager has tried calling you and they can’t get in touch with you, they have right to break in and make repairs. I always tell my boards to bring a witness and go in with a camera and take pictures of what the apartment looked like. Don’t go by yourself in case something is stolen and it’s your word against theirs.”

 

Feeling Secure

Security in buildings has become a tricky issue in recent years, and since most governing documents were written prior to current concerns about terrorism and other threats, boards sometimes enact security measures that some residents feel may go a bit too far. But does having an especially robust security program in a co-op building ever cross the line from “overzealous” into “invasion of privacy?”

“There could be ‘too much’ security in a practical way or an economical way but not really from a legal point of view,” says Byrne. “The boards probably have a pretty broad discretion to set rules on security, so although it might seem like they are overstepping their power, they aren’t really.”

Some boards feel it’s necessary to have cameras all over their building, a thorough ID check for all visitors, and building access controls that residents may feel are going too far. Some buildings require key code access or card access, and some use cameras to record people coming and going. While it’s fair to say that most residents get a certain peace-of-mind from knowing access to their building is tightly controlled, others find it intrusive, says Pennisi.

“People say, ‘You have no right to take my picture coming and going,’ or they object to having their Social Security number used as an ID” Pennisi continues. “But a number of courts have ruled that [building rules] supercede the individual’s right, because [buildings] have the right to know who’s coming and going. You can’t publish their information or show the videos, however. That would be going too far.”

 

Keeping Things Personal

When it comes to what boards and managers can do with any personal information they collect on building residents, civil rights and privacy laws have the final word. In short, boards and management are prohibited from making any of that information public.

Unfortunately however, “Things happen like that all the time,” says Rosabianca. “People make mistakes …most of the time it’s just errors, rather than fraud. I’m on a couple of boards where they distribute board applications to all board members, and they include a lot of personal details. You’d like to think that your board members are responsible with the information and will shred the information afterwards.”

If materials are being handled properly, Rosabianca continues, one copy of your personal information should be kept under lock and key at the manager’s office—and no one on the board should be distributing that information, or keeping copies for themselves. Some boards are even policing themselves in this respect by blacking out certain information on sensitive documents they see in the course of carrying out their duties to the building.

Though rare, there have been cases where board members have—either through negligence or ignorance—acted improperly with building information or money. Michael Crespo, president of Citadel Property Management Corp. in Manhattan, says he recently dealt with an unscrupulous treasurer.

“We recently had a situation where, in an effort to clear up the books of a building we’d just begun managing, we asked the board’s treasurer if it would be OK to send out two deposit checks that had been collected for [construction] work and move-in fees several years prior,” he says. “The deposits were clearly for a one-time item, and there really was no reason to keep holding on to them—they were just throwing off the balances, and we wanted to clean it up. The board’s treasurer suggested that we do a journal entry and make them ‘disappear.’”

Crespo says that after explaining that these were real deposits that were owed to shareholders, “The treasurer continued to press the issue and explained that he had done this type of thing at his job all the time. In either case, I explained that we know the difference between correcting a journal entry and sweeping someone’s money under the carpet. Needless to say, the shareholders in question (who were also on the board) wanted their money. We ended up cutting them a check.”

 

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Power Hungry

While the vast majority of board members take their position in stride and are solely interested in doing what’s best for their building community, some board members do let authority go their head. Most managers and board attorneys have at least one or two stories about boards imposing ridiculous rules on their residents—regardless of whether they actually have the authority to do so.

“Boards do sometimes abuse their power,” Byrne says. “I’ve encountered boards that don’t actually have published rules, yet think they do. There are boards that set unreasonable restrictions on things, or think they have the power to charge residents fines when they don’t.”

Other examples of boards overstepping their bounds and abusing their position include members trying to get family members elected to the board or overseeing applications for people they know, or giving work contracts to friends or family.

“Those are the type of ‘wink-wink’ things you see,” Rosabianca says. “You really want to avoid these types of conflicts. If you are on a board, you should be above the fold. You shouldn’t be soiling your hand.”

Keeping a board in check and on the right side of propriety and the law could be something as simple as pointing out that more rules are not always better.

“We simply like to remind the boards that we deal with that when they implement excessive amounts of rules that infringe upon their neighbors, these rules will often come back to bite the people who created them,” Crespo says. “We’ve seen it time and again: a board puts practices into effect that are very difficult to enforce, and which the very people who implemented them are the ones who end up violating them the most. This is where we like to be the voice of reason. We ask that boards be realistic and use discretion, and ask if they would like these rules enforced upon them.”

 

An owner cannot be fined without first being given the opportunity to be heard. Before a fine is issued, the following must take place:

Steps for a Violation

  • Association/management identifies the violation.
  • Notice of violation sent to owner/resident via a hand delivery or certified mail.
  • Notice must contain the following:
  • Description of the violation
  • Authority in governing documents to cite the issue as a violation.
  • A picture may also be included in the notice.
  • The required time frame to correct the violation.
  • Disclosure of his/her 14-day right to be heard before the fining/grievance committee.
  • Alert fining committee of the violation sent and schedule a hearing.
  • Attend hearing and be prepared to listen to the owner’s stated defenses and/or explanation.
  • Send notice of final decision to owner/resident.
  • In this situation, it would seem that the association skipped or ignored the legal right of an owner to be heard before a fine is issued. The fine is not a legally imposed fine unless the above steps are taken.

 

We need more Education where Board Members who are controlling the best for each and every owner should have to be Licensed the same way as Building Managers are, or financial money managers! What to you think? 

 

 

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WEBINAR: GUEST RESTRICTIONS AND SCREENING by Kaye Bender Rembaum Today at 1pm Register Now..

WEBINAR: GUEST RESTRICTIONS AND SCREENING by Kaye Bender Rembaum Today at 1pm Register Now..

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WEBINAR: GUEST RESTRICTIONS AND SCREENING by Kaye Bender Rembaum

by KBRLegal.com

Date/Time
Date(s) – 2020-06-16
1:00 pm – 2:00 pm

Location
Pompano Beach Office

Course #: 9630142 | Provider #: 0005092  |  1 CE Credit in HR or ELEOne registrant per form will be accepted.
Limited to the first 100 to register

REGISTER HERE

Online bookings are not available for this event.

 

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