Golf Carts, in addition to the obvious use on the golf course, are increasingly being used for short-distance trips in communities as an alternative to the family car, for example, carrying children and pets from home to the club house or recreation center. Golf Carts share an Association’s common element roads with other motor vehicles, bicycles, pedestrians and animals, creating the potential for liability for an Association. Whether or not to allow Golf Carts and how best to regulate them is a decision faced by Associations with increasing frequency. Consequently, Associations are faced with questions such as whether Golf Carts can be operated on private roads in Associations, what laws govern Golf Cart use, and how an Association should regulate and create policy to control the use of Golf Carts in the community. Florida law allows Golf Carts to be operated on private roads, subject to the Association’s restrictions and

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 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: publication; falsity; 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; actual damages; and 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 person defamed.” However, “[o]ne who

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

All board members know that associations need to have insurance. In the case of condominium buildings, where your insurance covers the exterior structure and part of the interior, whilst the owners’ insurance covers the interior of their unit. However, a lot of condo boards do not know that they need to have insurance for replacement cost, not what the building might have been worth a few years ago. Although some states do allow associations to insure for actual cash value, others do not. Actual Cash Value vs Replacement Cost The key difference between actual cash value and replacement cost is fairly simple: Actual cash value takes into account depreciation. That is, the building is insured for what it would cost to rebuild it minus depreciation. Replacement cost means that the building is insured for the entire cost to replace the building using like materials. A few states require an even