HOA Q&A: Is lengthy advance notice needed for budget board meeting?
Editor’s note: Attorneys at Goede, DeBoest & Cross respond to questions about Florida community association law. With offices in Naples, Fort Myers, Coral Gables and Boca Raton, the firm represents community associations throughout Florida and focuses on condominium and homeowner association law, real estate law, litigation, estate planning and business law.
Q: My homeowners’ association just posted a notice that the Board meeting to approve the 2024 budget will be held at our clubhouse in five days. I thought that the homeowners’ association was required to post and mail the notice of a budget Board meeting and the proposed budget to all owners at least 14 days prior to the Board meeting. Is what they did correct? --J.R., Hollywood
A: What the homeowners’ association did could be correct depending on whether there are other provisions in your community’s governing documents on additional requirements of the association when it comes to the budget Board meeting. Chapter 720, F.S., the HOA Act, does not require mailing and posting of the budget Board meeting notice and the proposed budget at least 14 days prior to the Board meeting. In fact, the only requirement is that the notice of the Board meeting be posted in a conspicuous place within the association at least 48 hours prior to the Board meeting and the meeting notice must state that assessments will be considered at the meeting. Additionally, after the budget is approved, the Association is required to provide each owner with a copy of the annual budget or a written notice that a copy of the budget is available upon request at no charge to the owner.
The time period and process of mailing and posting that you’ve stated in your question is required of Florida condominium associations. Many homeowners’ associations have also voluntarily begun to comply with this process. However, unless an association’s governing documents explicitly requires it to comply with the longer notice requirement and the requirement to mail the notice and proposed budget, a homeowner’s association is only required to post a notice at a conspicuous place within the association at least 48 hours prior to the budget Board meeting.
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Q: My homeowner’s association just had a board member resign, in writing, effective immediately. The annual meeting for the Association is not until March 2024. To further complicate matters, this board member had a two-year term so his term would not be up until March 2025. Is the board allowed to appoint a replacement? Can the new director be appointed for the length of the resigning director’s term? --K.T., Boca Raton
A: The provisions regarding director appointments and length of terms for replacements directors will be found in the association bylaws. Section 720.306(9)(c), Florida Statutes, provides that unless otherwise provided in the bylaws, the board of directors is authorized to appoint someone to an open seat on the board and that person would fill the term of the open seat. However, it all depends on whether there are differing provisions in the bylaws. I have seen some bylaws require a new homeowner vote for the open board seat. I have also seen bylaws that have stated that the director filling the open board seat may only serve until the next annual election, regardless of whether there is another year on that board member’s term. That being said, the more common provisions are consistent with the statute in that the replacement director shall be appointed by the board of directors and shall serve for the length of the term of the director he/she replaced. As such, I encourage you to review your bylaws to see if there are differing provisions. If you have any questions, please contact your association’s legal counsel
Q: There was a sale that just occurred in our condominium association. There were delinquent amounts owed to the association. Unfortunately, these amounts were not listed on the estoppel document issued by the Association in conjunction with the sale. Can we pursue these amounts against the new owner? --C.M., Coral Gables
A: No, unfortunately, you will not be able to pursue these amounts against the new owner. The estoppel certificate is a legal document that provides the buyer with information regarding the association and the unit he/she is purchasing. If the association omits unpaid assessment information, it will be unable to collect those amounts from the new owner. This is specifically stated in Section 718.116(8)(c), Florida Statutes.
S. Kyla Thomson, Esq., is a Partner of the Law Firm Goede, DeBoest & Cross. Visit www.gadclaw.com to ask questions about your issues for future columns or send your inquiry to: question@gadclaw.com. The information provided herein is for informational purposes only and should not be construed as legal advice. The publication of this article does not create an attorney-client relationship between the reader and Goede, DeBoest & Cross, or any of our attorneys. Readers should not act or refrain from acting based upon the information contained in this article without first contacting an attorney, if you have questions about any of the issues raised herein. The hiring of an attorney is a decision that should not be based solely on advertisements or this column.
This article originally appeared on Treasure Coast Newspapers: HOA Q&A: Is lengthy advance notice needed for budget board meeting?
