Florida Condo Boards Under Fire for Allegedly Violating State Laws and Compromising Residents’ Rights
Several Florida condo boards are facing accusations of violating state laws in order to cut costs, potentially putting the rights and safety of residents at risk. Concerns have been raised about actions taken by these boards, including manipulating insurance deductibles and extending the lifespan of crucial components like roofs without proper justification.
One member of a condominium board revealed their frustration, stating that other board members were more focused on keeping quarterly expenses as low as possible, even if it meant bypassing state laws. They claimed that insurance deductibles were increased without informing the members, and the lifespan of the roof was extended to avoid funding its replacement, solely for budgetary reasons.
In response to this particular issue, attorneys from Goede, DeBoest & Cross explained that while the decision to set insurance deductibles falls under the purview of the board, it must be made during a properly noticed board meeting where owners have the opportunity to attend and voice their concerns. The deductibles must also align with industry standards and prevailing practices for similar communities in the vicinity.
Regarding the extension of the roof’s estimated lifespan, the attorneys stressed that such a decision can only be made with the support of professional opinions from experts such as engineers, licensed roofers, architects, or reserve specialists. Without this substantiating information, the board members would be deemed to breach their fiduciary duty to the association.
Another issue arose concerning the imposition of additional duties on newly elected board members. One individual stated that they were mandated to work in the office one day a week and were subsequently told they must serve as Block Captains. Seeking clarification, they questioned if the board was within its rights to force board members to undertake tasks beyond attending meetings and voting.
The legal experts confirmed that the board cannot require directors to work in the office or fulfill additional capacities as part of their board duties. While directors may typically choose to participate in committees or take on other roles voluntarily, they cannot be compelled to do so.
Furthermore, concerns were raised by a condo owner about potential insurance policy increases if the ratio of owner-occupied to tenant-occupied units exceeds a certain threshold. They were informed by professionals in the insurance and mortgage banking industries that insurance rates and mortgage lending rates can be affected when the proportion of rental units surpasses 20%. Some associations address this issue by adopting amendments that cap the maximum number of rented units allowed at any given time.
It is important to note that allegations made against condo boards should be investigated thoroughly to ensure compliance with state laws and to safeguard the rights and well-being of residents. The actions taken by these boards should prioritize the best interests of the community rather than solely focusing on cost-cutting measures.
As these accusations come to light, it is crucial for residents to stay informed about their rights and actively engage with their condo boards. Seeking legal advice and attending board meetings can help ensure transparency and accountability within these associations.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. The publication of this article does not create an attorney-client relationship between the reader and Goede, DeBoest & Cross, or any of their attorneys. It is advisable to consult with an attorney for specific legal concerns and questions.
