“Director Compensation Questioned” – News-Press

Q: Can directors of a homeowners’ association get paid for their services? As a board member, I do all the administrative tasks for free and think I should be paid for it. (S.H., via e-mail)

A: Section 720.303(12) of the Florida Homeowners’ Association Act prohibits the compensation of officers or directors, except under limited circumstances. One of these circumstances is if the governing documents permit compensation. Similarly, Section 718.112(2)(a)1., of the Florida Condominium Act prohibits the compensation of officers unless otherwise provided in the bylaws.

This has been a topic of some debate in industry circles over the past few years. Some advocate that community associations would be better served by moving away from the all-volunteer model to something more akin to stock corporations, where outside persons with expertise are brought in to serve an oversight role. Given the financial strains on associations in today’s environment, I doubt that idea will get any traction soon.

I have seen a number of associations, especially those without a manager or management company, where certain community-minded individuals are pressed into nearly full-time work. While notions or fairness may dictate that compensation is appropriate, being both the employee and the boss at the same time is not a desirable arrangement.

I have also seen communities where residents provide services to the association that do not require licensure, such as administrative assistance or custodial services. It is most legally appropriate for these people not to sit on the board or serve as an officer. The association should also ensure that all local, state and federal employment laws are followed, including tax deductions and reporting. The association should also verify with its insurance agent that exposures affiliated with being an employer are properly insured.

I also question whether an officer or director who receives compensation for their services subjects themselves to a higher degree of liability, as most of Florida’s liability limitation statutes for association officers and directors are predicated on the encouragement of volunteerism.

Q: We are seeking information on how to effectively manage and comply with regulations concerning the swimming pool in our condominium association. What resources are available to assist us in this endeavor? (J.D., via e-mail)

A: The association should review local ordinances or regulations governing these facilities. They should be available on or accessible from your county’s website.

The Florida Department of Health is the supervising state agency. Both Chapter 514 of the Florida Statutes and Rule 64E-9 of the Florida Administrative Code provide relevant information. These resources are easily accessible online.

According to Rule 64E-9.001 of the Florida Administrative Code, state regulation of swimming pools aims to prevent disease, sanitary nuisances, and accidents that may threaten or impair an individual’s health or safety. Section 514.0115 of the Florida Statutes exempts pools serving 32 or fewer condominium units, not operating as public lodging establishments, from supervision under the statute, except for water quality standards.

There is also an exception for pools serving condominium associations with more than 32 units, where the recorded documents prohibit rentals or subleases of less than 60 days. However, the association must file applications, obtain construction plan approval, and get an initial operating permit.

Additionally, pools serving homeowners’ associations or other property associations with 32 or fewer units or parcels, and not operating as public lodging establishments, are exempt from supervision under the statute, except for ensuring water quality and compliance with Chapter 514 of the Florida Statutes.

The federal Virgina Graeme Baker Pool and Safety Act is another source of regulation. This law sets standards for public pools and spas, including swimming pools open exclusively to residents of real estate development or other multi-family residential areas. This statute relates to water drainage and circulation installations and the prevention of drownings affiliated with getting caught in that equipment.

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.