“Educational Requirements for Boards” – FCAP Managers Report
With this year’s elections of Boards of Directors behind us for many associations, newly elected or appointed directors of residential condominiums, cooperatives, and homeowners’ associations need to be aware of the educational requirements and deadlines for these requirements to start off on the right foot for a successful term as a director.
In years past, newly elected or appointed directors of residential condominiums were required to certify in writing that they had read the association’s declaration, articles of incorporation, bylaws, and current written policies, would work to uphold such documents and policies to the best of their ability, and faithfully discharge their fiduciary responsibilities to the association’s members. In lieu of this certification, a director could submit a certificate of having completed an educational curriculum administered by a division-approved condominium education provider. Effective July 1, 2024, a newly elected or appointed director must both provide the written certification and submit a certificate of having satisfactorily completed the educational curriculum administered by the division or a division-approved condominium education provider. The educational curriculum must be at least four hours long and include instruction on milestone inspections, structural integrity reserve studies, elections, recordkeeping, financial literacy and transparency, levying of fines, and notice and meeting requirements. Both certifications must be submitted to the secretary of the association who will keep these records for seven years after a director’s election or the duration of the director’s uninterrupted tenure, whichever is longer.
These requirements must be completed within 90 days of being elected or appointed to the Board. For a director that was elected or appointed before July 1, 2024, he or she must comply with the written certification and educational certificate requirements by June 30, 2025.
Both the written certification and educational certificate are valid for seven years. A director does not have to resubmit these if the director serves on the board without interruption during these seven years. However, there are continuing educational requirements. One year after the initial submission, and annually thereafter, directors must submit certification of having completed at least one hour of continuing education administered by the division, or a division-approved condominium education provider, relating to any recent changes to the Condominium Act and the related administrative rules during the past year.
For directors elected or appointed to boards of cooperatives, the option remains between the written certification and the educational certificate. Another difference is that record of these certifications must be maintained for five years, rather than seven, after a director’s election or the duration of the director’s uninterrupted tenure, whichever is longer.
For directors elected or appointed to the board of a homeowners’ association, there are also new educational requirements effective July 1, 2024. Newly elected or appointed directors must submit a certificate of having completed the educational curriculum administered by a department-approved education provider. This must be done within 90 days after being elected or appointed. The certificate of completion is valid for up to four years and directors must complete this education specific to newly elected or appointed directors at least every 4 years. The department-approved educational curriculum specific to newly elected or appointed directors must include training relating to financial literacy and transparency, recordkeeping, levying of fines, and notice and meeting requirements. The educational certificate must be maintained five years after the directors election.
In addition to the above educational curriculum, there are different additional requirements for directors depending on whether they are a director of a homeowners’ association with fewer than 2,500 parcels or one that has 2,500 parcels or more. For a director of an association with fewer than 2,500 parcels, he or she must complete at least four hours of continuing education annually. For those in associations of 2,500 parcels or more, at least eight hours of continuing education annually must be completed.
There are consequences for failure to adhere to the above requirements for directors of residential condominium associations, cooperatives, and homeowners’ associations. If a director fails to timely file the required certification(s) as described above, he or she is suspended from their board until they comply. The board may temporarily fill the vacancy during the period of suspension. However, in each type of association, the failure to have the required certifications on file will not affect the validity of any board action. Nevertheless, it is crucial that directors understand the applicable requirements and adhere to the same so that they are not suspended from their seat.
To read the original FCAP article, please click here.
Karyan San Martano is a member of Becker’s Community Association practice and regularly provides legal counseling to the officers and directors, as well as the property manager, on the operation of condominiums, cooperatives, and homeowners associations.
