How to make the most of annual meeting season for HOAs and condo communities

Winter is typically annual meeting season for Florida community associations. With so many snowbird seasonal residents who live elsewhere during the summer and spend winters in Florida, that’s when communities are most likely to be able to meet quorum requirements for owners to be present or vote by proxy to conduct official business, elect board members and pass annual budgets.

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Communities should now start preparing for annual meetings that are taking place during the next several months. For boards of directors, this begins with getting ready to present proposed budgets for the next fiscal year and review annual maintenance outcomes, as well as with preparations for board elections.

Elections for board seats are among the most important responsibilities for associations.

With so many communities experiencing strife over budgetary increases stemming from structural maintenance obligations and rising insurance costs, engaging with directors offers opportunities for owners to share their concerns and perspectives.

Those elected by the unit owners will be entrusted to make decisions affecting finances, maintenance, repairs, contracts, rules, assessments and overall community operations. That is why it is imperative to elect directors who demonstrate integrity, sound judgment, and a willingness to devote the necessary time to protect and advance the community’s interests.

Such responsibilities and characteristics demand careful and transparent elections that are in strict compliance with Florida law and associations’ own governing documents.

The annual meeting and elections process should therefore begin with a careful review of the declaration, articles of incorporation, bylaws, election rules, and applicable Florida statutes. The state’s laws, which feature different requirements for condominiums and homeowners associations, establish detailed elections processes that include the timetables for the distribution of notices and other materials.

Candidates for condominium association boards must submit their notice of intent to run at least 40 days before the election. A second notice, ballot, and candidate information sheets, when applicable, must then be provided within the statutory timeframe.

Unless the governing documents provide otherwise, directors are elected by a plurality of votes cast. An election is not required when the number of qualified candidates does not exceed the number of available seats, and candidates who are delinquent in certain monetary obligations to the association may be ineligible to seek election.

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Effective elections call for accurate membership and voting records, strict compliance with notice requirements, and the preservation of ballots and other election records as required by law. They also require the avoidance of one candidate receiving an improper advantage over the others, so candidate and election communications should be handled under uniform policies and remain strictly factual and professional.

Procedural compliance is only part of a successful election. Those elected to the board will be entrusted with significant authority, so owners should consider candidates’ integrity, reliability, judgment, willingness to listen, and ability to put the association’s interests ahead of personal disputes or agendas.

Candidates need to be prepared to devote sufficient time to reviewing financial information, contracts, maintenance issues, legal matters, budgets, and other association business. Their commitment and disposition to become familiar with governing documents, ask informed questions, and work constructively with other directors are often more important than simply having strong opinions about community issues.

Integrity also hinges on their ability to recognize and properly handle conflicts of interest. Florida law imposes disclosure requirements concerning certain potential conflicts, and directors should disclose relevant financial or personal interests before the board considers any related transactions or decisions.

New directors should also understand their legal and educational responsibilities. The state requires newly elected or appointed condominium directors to complete specified educational requirements, while HOA directors are subject to their own statutory education requirements. Florida’s Department of Business and Professional Regulation provides educational resources and certifies qualified providers.

A properly conducted election helps protect the legitimacy of an association’s decisions and promotes confidence among owners, which is of paramount importance for communities struggling with challenging financial and administrative decisions. By approaching elections as an important governance function and not merely an annual formality, boards and unit owners can help establish a culture of transparency, accountability, integrity, and responsible stewardship.

Gary M. Mars is a shareholder with the South Florida law firm of Siegfried Rivera who is board certified as an expert in community association law by The Florida Bar. He is based at the firm’s Coral Gables office and is a regular contributor to its Newsroom blog at www.SiegfriedRivera.com/blog. The firm also maintains offices in Broward and Palm Beach counties, and its 52 attorneys focus on community association, real estate, construction, and insurance law. www.SiegfriedRivera.com, [email protected], 305-442-3334.

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