Community Living
What if they held an election and nobody ran?
By RICHARD WHITE
© St. Petersburg Times
published February 15, 2003
Question: We are a small homeowner association in the process of electing a new board. If no one volunteers to serve and no board is established, we understand that the state of Florida takes over the management. Is that correct? How much does the state charge? The current board is concerned that we might be confronted with this situation, but if the residents knew the additional costs involved, they might be more willing to volunteer.
Answer: No state agency takes over homeowner associations. Any owner can petition the court to appoint a receiver to operate the association as directed by the board under the court's guidance. The association is responsible for court costs, for the fee paid to the receiver, and for normal operating expenses. Receivers are highly skilled, with a great deal of association management experience, so their fees are high. This is a very expensive route to take.
You don't want to have a receiver appointed and then discover your fees have multiplied many times over. I recommend you consider hiring a management company to do most of the work. The management company cannot replace the board, but it can help with operations and free board members from daily activities.
A word about proxies
Question: The son of an elderly unit owner in our small condo lives with her, but he is not an owner. At a recent membership meeting, the son had a signed proxy naming him as proxy holder. Can she give her proxy to a non-unit owner? Can she give it to someone who is not a resident of the building?
Answer: A proxy can name anyone as the proxy holder. The proxy does have to be signed by all the unit owners or by the person named on the voter's certificate. That person need not be an owner and would have almost all the rights at the meeting as the owner.
There are two basic proxies: the general proxy and the limited proxy. In condominiums, proxies cannot be used to vote in the annual election of the directors, but they can be used to vote on other matters, and they count for establishing a quorum. Since the proxy is a legal document, an attorney should draft the document.
Follow letter of the law
Question: I'm on the board of my condo association. Two of us out of the five-member board are seasonal residents and have just returned to Florida for the winter. The first board meeting is about a week away. The two of us who have been away would like to meet with the president and be brought up to speed on activities. We would discuss no budget changes and would make no decisions; this is strictly informational. Is there any reason we cannot do this?
Answer: FS 718.112 says that any time a quorum of directors meets to discuss association business, it is considered a board meeting. Notice of this meeting must be posted, minutes must be taken, and it must be open to the members. When three of you sit down together, even just for an informational catch-up session, you represent a quorum of directors meeting to discuss association business.
If only one of you meets with the president or any other director at a given time, there would be no quorum and the meeting requirements do not apply. Therefore, have your meeting with less than a quorum of directors. It may mean the president must have two meetings, but you will not be in conflict with the statute.
- Write to Richard White, c/o Community Living, St. Petersburg Times, P.O. Box 1121, St. Petersburg, FL 33731. Sorry, he can't take phone calls or provide personal replies by mail, but you can e-mail him at CAMquestions@att.net. Please include your name and city. Questions should concern association operations; legal opinions cannot be offered. For specific legal advice, contact an association attorney.
Readers may call the state Division of Condominiums Bureau of Customer Service at toll-free 1-800-226-9101 with questions or requests for materials. Access the Bureau of Condominiums Web site at http://www.state.fl.us/dbpr/lsc/index.shtml; or write to Bureau of Customer Service, 1940 N Monroe St., Northwood Centre, Tallahassee, FL 32399-1032.
Please note that this office provides no information about homeowners' associations. The state has no bureau or department covering those associations.
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