“Understanding Electronic Voting and Association Credit Card Rules” – News-Press
Q: At a recent meeting of the board of directors for my condominium association, the board voted to authorize the use of electronic voting. I understand this will be for both the election of directors and other matters that the members are asked to vote on. I am concerned because there are a number of older owners in our condominium that are not comfortable with computers, and I believe that moving toward electronic voting will disenfranchise these owners. What protections are available for owners who do not want to vote electronically? (L.D., via e-mail)
A: While Florida law allows condominium, cooperative, and homeowners’ associations to utilize electronic voting for conducting both the election of directors and other owner votes, it is not mandatory, even when allowed.
For condominium associations governed by Chapter 718, the Florida Condominium Act, Section 718.128 of the Act discusses electronic voting. The Act specifies the necessary requirements for the electronic voting platform and the process for the board to implement electronic voting for use by the members. However, while members may opt in to utilizing the electronic voting platform offered by the association, the association cannot mandate that members use electronic voting as the sole means of participation. While electronic voting can be offered as an option, the traditional options of either voting in person at the meeting by paper ballot for the election of directors, or by limited proxy for other matters, are still allowed. Therefore, while electronic voting offers an additional option that many associations find beneficial, it is not something that can be made mandatory.
Q: At the recent board meeting for my homeowners’ association, the treasurer was going through the financial report and there was a statement made about charges made on an association credit card for a number of items related to landscaping within the community. I recalled that Florida law did not allow community associations to use credit cards and that doing so was a violation of the statute. When this was raised at the meeting, it was stated that the association was permitted to use the credit card issued in its name, and the board moved on. Is this permitted? (N.V., via e-mail)
A: I believe you are referring to amendments that were made to Chapter 720, the Florida Homeowners’ Association Act, concerning the prohibition on the use of debit cards by the association. A few years ago, the Homeowners’ Association Act was amended to provide in Section 720.303(13) of the Act that the use of debit cards issued in the name of the association, or billed directly to the association for any expense, was not a lawful obligation of the association and further provides that the association, its officers, directors, employees, and agents may not use a debit card issued in the name of the association or billed directly to the association for the payment of any association expense. As such, the use of debit cards issued in the name of the association is prohibited by the Homeowners’ Association Act.
However, while there is no prohibition on the use of credit cards by the association, the board of directors should have appropriate controls in place regarding who may use any credit card issued to the association and how it may be used.
For condominium associations governed by Chapter 718, the Florida Condominium Act, there is a similar provision contained in Section 718.111(15) of the Condominium Act prohibiting the use of debit cards by a condominium association, its officers, directors, employees, or agents.
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.
