Can an HOA Board Install Bulk Cable and Internet?

Has your board of directors of your homeowners’ association recently consider a bulk contract for cable television and internet service for your community. While the association has not previously provided cable or internet service to the residents, the association signed the contract to force homeowners to pay for the service as part of their assessments. 

Communication Services in Your HOA

Section 720.309(2), the Florida Homeowners’ Association Act, states that if the governing documents authorize the association to incur the cost of communication services, information services, or internet services obtained under a bulk contract, deem such expenses as an operating expense of the association. Even if the governing documents do not provide these bulk services, the law states that the board can contract bulk telecommunication services. The costs of such services shall be an expense of the association. 

Governing Documents & Bulk Service Contracts

However, suppose the governing documents do not address such bulk service contracts. Then, the board must allocate the cost of the bulk service on a per parcel basis rather than on a percentage basis. Even if the allocation of the governing documents contemplates assessments on a percentage basis, they still need to do it on a per-parcel basis.

An Initial Vote is Not Necessary

Without a vote of the membership, the board of directors can enter into a contract for bulk services, even if the association has not historically provided such assistance. This law came into fruition in 2011, so there may be some room to argue about its retroactive application to communities created before that date.

A Majority Vote Could Matter

The statute also provides that a majority vote can cancel any such contact of the voting interests present at the next regular or special meeting of the association members. However, if no one takes action to vote at the next membership meeting, the contract is deemed ratified. Chapter 718 of the Florida Condominium Act contains similar provisions regarding bulk telecommunication service contracts.

Contact Condominium Associates

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