A community association is the cornerstone of a planned community. When it is run properly, common areas are maintained, architectural standards are kept, property values are protected, and a sense of community is supported. Each association is responsible for its assets and operations under state law and its own governing documents.
A Strong Board of Directors
An association is governed by its board of directors. The board's authority comes from the Florida Statutes (Chapter 718 for condominiums and Chapter 720 for homeowners associations) and from the declaration, articles of incorporation, and bylaws. An effective board is made up of directors who understand their volunteer positions, apply the rules evenly and fairly, and know the association's history, finances, and needs.
Fiduciary Duty
A fiduciary duty is owed by the board to the association and its members. Directors are required to act in good faith, with reasonable care, in the best interests of the community as a whole, and within the scope of their authority.
Lack of experience is not accepted as an excuse for improper action. When a seat on the board is accepted, the duties that come with it should be learned. In Florida, newly elected or appointed directors of condominium and homeowners associations are required to complete a certification or education requirement shortly after taking office. The current requirement should be confirmed with the association's manager or attorney.
More detail can be found in our post
Fiduciary Duty Explained.
What the Board Is Responsible For
- Adopting the annual budget and setting assessments
- Maintaining, repairing, and insuring the common property
- Enforcing the governing documents evenly
- Hiring and overseeing the manager, attorney, CPA, and vendors
- Holding properly noticed meetings and keeping official records
- Planning for long-term repairs through reserves
Running an association carries many of the same duties as running any other business. Board service is also a rewarding way to serve neighbors while the community is protected and improved.
Officer Roles
Officers are usually elected by the board from among the directors, and their duties are set out in the bylaws. The overview below can be used when newly elected, first-time board members are brought on.
President
Board and membership meetings are presided over by the president, who also serves as the board's main point of contact with the manager and the association's spokesperson on most matters. Contracts and other documents that have been approved by the board are signed by the president. Documents should be signed in the president's official capacity, on behalf of the association, so that personal liability is avoided. The president does not act alone: decisions are made by a vote of the board.
Vice President
The president's duties are carried out by the vice president when the president is absent or unable to act. Other duties may be assigned by the board, such as chairing a committee.
Secretary
Meeting minutes and the association's official records are the secretary's responsibility. When a management company is in place, minutes are often drafted and records are kept by the manager, with oversight by the secretary. The secretary also sees that meeting notices are given as required and that records are made available to owners as the law provides.
Treasurer
The association's funds and financial records are overseen by the treasurer. When day-to-day accounting is handled by a management company, the treasurer's role is to review the monthly financial reports, lead the preparation of the proposed annual budget, monitor reserves, and see that the annual financial report is prepared and delivered to the owners.
Help for New and Experienced Boards
Board members in communities managed by Condominium Associates are supported with meeting preparation, financial reporting, and guidance on best practices. To learn more,
contact us.
