“Board Meeting Frequency and Handling Excess Special Assessment Funds” – News-Press
Q: At a recent board of directors meeting the board of my homeowners’ association stated that the next board meeting would not be until later this fall. I was under the impression that the board had to meet at least monthly. What is the rule for frequency of board meetings? (T.Y., via e-mail)
A: For a homeowners’ association governed by Chapter 720, Florida Statutes, the Homeowners’ Association Act, there is no legal requirement concerning the frequency of board meetings. However, the governing documents, specifically the bylaws, for your homeowners’ association may specify how frequently the board is required to hold its meetings. Otherwise, the board of a homeowners’ association can determine how frequently, or infrequently, to hold board meetings. However, any board meeting that is held must be properly noticed, generally requiring at least forty-eight hours’ posted notice at a conspicuous location in the community.
Your question may arise from some confusion with respect to the requirements of the board of directors of a condominium association. Condominium associations governed by Chapter 718, Florida Statutes, the Florida Condominium Act, do have specific frequency requirements for board meetings. Section 718.112(2)(c) provides that every residential condominium association with more than ten (10) units must hold board meetings at least once each quarter.
However, how frequently to hold board meetings is generally a practical issue based on the association’s need to conduct its business. Decisions by the board must be made at board meetings and typically the board would need to meet with some regularity in order to conduct the business of the association. Although, it is not uncommon for some associations, particularly associations that have a significant population of seasonal residents to not hold meetings as frequently during the off-season, such as the summer months.
Therefore, how frequently to hold a board meeting for a homeowners’ association is completely dependent on the board of directors’ business needs as well as any particular requirements of the governing documents. For a condominium association, the meetings would have to be held at least quarterly pursuant to the Condominium Act.
Q: My condominium association recently completed a major construction project that was funded through a special assessment. Fortunately, the project came in under budget and there is money left over from the special assessment. Questions have come up as to what must be done with the remaining special assessment funds. Can the association keep this money or does it have to be returned to the unit owners? (V.R., via e-mail)
A: For a condominium association, Section 718.116(10) of the Florida Condominium Act specifically addresses what the association must do when the specific purpose of a special assessment has been completed and there are excess funds. The statute provides that at the discretion of the board, the funds may either be returned to the unit owners or applied as a credit toward future assessments.
Therefore, the board has the discretion to decide what option to choose, but the owners must get the benefit of the surplus, either through a refund or a credit against their future assessment obligations.
Joe Adams is an attorney with Becker & Poliakoff, P.A., Fort Myers. Send questions to Joe Adams by e-mail to jadams@beckerlawyers.com. Past editions may be viewed at floridacondohoalawblog.com.
