The contentious presidential election and political divisiveness of the months leading up to it – that is now continuing beyond the election – caused the Community Associations Institute, the leading organization which represents the interests of communities with associations, to issue an important reminder. In its blogs and emails, CAI recently appealed to communities to promote civility and unity by adopting the organization’s Community Association Civility Pledge, which is a commitment to the following principles: Each individual must be accountable for his or her own actions and words. All interactions in the community should be civil despite any differences of opinion on a particular issue. A vow to respect all points of view and strive to provide a reasonable opportunity for all to express their views openly. Residents are engaged and informed. Residents review CAI’s Rights and Responsibilities for Better Communities. This commitment to civility, as well as a commitment

In this time of growing financial crises, associations are increasingly considering loans/lines of credit in order to have sufficient cashflow in the event of budget shortfalls caused by increasing delinquencies or in order to pay for projects that cannot be funded through the operating budget alone but cannot be postponed. In considering loan/line of credit terms as well as structuring repayment options for owners, associations must be aware of documentary limitations on borrowing and owner assessments as well as legal limitations on borrowing and owner assessments. Loan/Line of Credit Terms Associations must be aware of typical loan terms that can run afoul of common provisions in association documents if not handled properly. Such typical terms include the pledging of reserves, real property, personal property, and insurance payments. In many instances, the inclusion of such terms requires membership approval rather than board approval alone by statute. For instance, the pledging of

In terminating a third-party vendor, a board of directors must be careful in disseminating information concerning the basis for its decision – especially if the decision was due to poor performance or contractual violations by the vendor. In Florida, a cause of action for defamation can be brought against a corporation, including specifically, a community association. “Defamation” is defined as the unprivileged publication of false statements which naturally and proximately result in injury to another.” The elements of a claim for defamation are as follows: “(1) publication; (2) falsity; (3) actor must act with knowledge or reckless disregard as to the falsity on a matter concerning a public official, or at least negligently on a matter concerning a private person; (4) actual damages; and (5) statement must be defamatory.” In order for a defamatory statement to be actionable it must be published. Publication requires communication to one other than the

The board of directors of community associations are responsible for making important decisions affecting the community and its members. As a result, disputes sometimes arise between the association and its members. In the event the dispute evolves into a lawsuit, the business judgment rule will protect directors from personal liability so long as they did not breach their fiduciary duty. Fiduciary Duty of Directors Community associations, such as HOAs and condominium associations, are governed by an elected board of directors. The duties of directors are codified in section 607.0830(1), Florida Statutes, which states that each member of a board of directors must act: In good faith; and In a manner he or she reasonably believes to be in the best interests of the corporation. The directors of community associations owe this fiduciary duty to the members of the association. Generally, the decisions of directors will not be questioned unless there

The Fair Housing Act, also known as Title VII of the Civil Rights Act is a federal law which prohibits discrimination in housing and housing-related services due to race, color, religion, sex, national origin, disability, and familial status. Because the FHA applies to entities that set terms and conditions for housing and provide services and facilities in connection with housing, it applies to HOAs and condo Community Associations. How much responsibility does your board and it’s members have with regards to ending housing discrimination and how can you ensure that your community complies with the laws? The Fair Housing Act, also known as Title VII of the Civil Rights Act is a federal law which prohibits discrimination in housing and housing-related services due to race, color, religion, sex, national origin, disability, and familial status. Because the FHA applies to entities that set terms and conditions for housing and provide services