So you joined the Board of Directors, now what?

By Kelly Ann Vickers, LCAM, Business Development Manager, Vendor Relations & Education Coordinator - KW PROPERTY MANAGEMENT AND CONSULTING

For one reason or another you stepped forward to serve in a civic duty capacity, and volunteered to be on the Board of Directors in your condominium or homeowners association. Between the elections, the annual meeting, and the demands of your personal life you may be wondering “what have I gotten myself into, and what am I supposed to be doing exactly”?

The first responsibility you have as a board member is to be intimately familiar with the documents that have been written to govern your association as well as the appropriate statutes for the type of association in which you reside - condominiums (FL Statute 718), a homeowner’s association (FL Statute 720), or a co-operative (FL Statute 719).

If you live in a condominium association, and have been elected to the Board of Directors it is important for you to know that in July of 2010, the Division of Florida Condominiums, Timeshares, and Mobile Homes amended FL Statute 718 to require that all newly elected board members certify in writing to the secretary of the association that they have read the association’s declaration of condominium, articles of incorporation, bylaws, and current written policies; that they will work to uphold such documents and policies to the best of their ability; and that they will faithfully discharge their fiduciary responsibility to the association’s members.

In lieu of this written requirement, the Division of Florida Condominiums, Timeshares, and Mobile Homes allows a newly elected board member to participate in a training course, through a state approved provider, and to submit a certificate of completion for this course. The secretary of the association is responsible for ensuring the maintenance of the affidavits and/or certificates of completion for inspection by the membership for a period of five years.

Under this amendment if any board member fails to provide either the affidavit or the certificate of completion to the secretary within 90 days of being elected to the board that member may be suspended from the Board of Directors until such time that the requirement is met, and the Board may temporarily fill the vacancy during the suspension.

Now that you have read all of the documents pertaining to your association, and familiarized yourself with the applicable Fl statute you may be wondering what else you will need to know before you get to start making decisions. First, understand that the Board of Directors is the governing body of an association, and each member is an important component as decisions are made by the majority – not a single position.

The generally recognized composition of a Board of Directors is the President, Vice President, Treasurer, Secretary, and a Director (or two), but your association documents will clearly define the positions and number of members required.

The position of President is typically recognized as the individual whom calls, runs and closes the meetings of the Board of Directors, prepares the agendas for the meetings, approves the expenses

associated with running the community, and provides oversight of the board’s decisions and actions to ensure legal compliance. The Vice President (if a required position) assists the President of the association with his or her duties, and may lead the meetings in the President’s absence.

The Treasurer is traditionally tasked with the financial aspects of the Board of Director’s government of the association, and is often involved in the reviewing of the association’s moneys including assessments, reserve accounts, and may be called to act as a signature on payments in the absence of the President. The Secretary is responsible for the minutes of all board meetings and the association’s official records. This position is typically responsible for notifying residents of impending meetings and the associated agenda, and may handle all of the correspondence for the Board of Director’s with the exception of those relating to financial transactions or requiring the signature of the board President.

Now that the positions of a Board of Directors have been defined, it is important to understand the purpose of this governing body. In the simplest of terms the Board of Directors is responsible for the oversight and management of the association as a whole. This includes the financial health and well-being of the community collectively, the maintenance and repair of the common elements, and the enforcement of the rules and regulations.

The Board of Directors will typically be supported by a licensed community association manager, attorney, CPA and other professionals whose purpose is to ensure that the Board of Directors is in compliance with not only the governing documents of their association, but also the applicable Florida statute.

The decisions of the Board of Directors are made at properly noticed meetings that allow for the membership to speak on the agenda item, and these decisions may range from the mundane (what color perennials are to be planted) to major items such as renovations or improvements to the association’s commons areas. To ensure that these meetings are efficient and effective many boards rely on resources such as Robert’s Rules of Order or the professional knowledge of a management company.

Although daunting at first, serving on the Board of Directors in your community is often a rewarding and educational opportunity, and one that should not be taken lightly. As you and the other members of the board navigate through governing the association you will be rewarded with the knowledge that you are working together to enhance your community for all of its members.