florida hoa when board ignored covenant violation

Homeowners can recall the entire board, or just a specific member of the board. When that happens, homeowners have options.įor example, homeowners have a right to demand a recall. Problems arise when board members either fail to do their jobs (e.g., they refuse to enforce the governing documents or maintain the common areas), or they act arbitrarily, dishonestly, or capriciously. YOU HAVE OPTIONS WHEN YOUR HOA ACTS IN BAD FAITH Sometimes, board members are dishonest, while others are just jerks who like to seize, and then flaunt, their authority. Unfortunately, and more frequently than many would like to admit, homeowners find themselves dealing with board members who like to tell other homeowners what to do, or who refuse to properly manage the HOA. None of that, however, alters the fact that the decisions are ultimately being made by lay people, most of whom have little experience in running a business.Īnd those problems exist even in cases where board members who are truly working for the betterment of their communities. Obviously, many boards hire management companies, accountants, lawyers, contractors, and other professionals to help them properly manage their HOAs. This is especially true if, for example, your HOA has amenities like swimming pools, tennis courts, club houses, beach-related services, etc. If your HOA is large (i.e., has lots of homes and common elements), then it’s quite possible that it has extremely valuable assets. The problem, however, is that for the most part, HOA board members have little to no experience running a business-especially ones worth millions of dollars. This means that HOA boards are given a lot of leeway and protection from decisions they make-even when such decisions, in hindsight, turn out to be bad ones. This shielding doctrine is known as the business judgment rule (“BJR”), and courts in Florida have held that it applies to boards governing HOAs. Now, under Florida law, a company’s board of directors is shielded from liability for decisions made on their corporations’ behalf as long as: (i) their decisions were made within the course and scope of the board’s authority and (ii) the decisions were not arbitrary, capricious, or made in bad faith (i.e., the decisions were reasonable). And so, like any corporation, your HOA has the power and authority (and in some cases, obligation) to: Your HOA is governed by a board of directors, just like any corporation. The shareholders of HOAs (or “members,” as they’re more commonly referred to) own not only their individual homes/units, but a piece of the common areas through their membership in their HOAs. If you own a single family home, your HOA might be referred to just as an “association,” while if you own a condominium, your HOA might be called a “condominium association.” For purposes of this Guide, however, the term HOA will encompass all such common interest development associations. Homeowners’ associations (“HOAs”) are associations formed, in some cases as non-profit corporations, to own and manage common interest developments. No matter what kind of common interest development you live in, if it’s located in the State of Florida, then your development is governed by one of three separate sets of laws: What all common interest developments have in common, however, is that they are governed by an association of owners who enjoy the use of shared common areas and amenities. More and more Floridians today live in common interest developments made up of a variety of different types of homes, from single family homes (i.e., detached homes) and condominiums, to high-rise apartments and townhomes. Good HOAs help make your home a place of comfort and relaxation.īad HOAs make your life a living hell. A good HOA plays an important role in maintaining your property values and ensuring your quiet enjoyment of your property.Ī bad HOA can decrease the value of your home, force you to needlessly waste thousands of dollars, and turn your life upside down.

Florida hoa when board ignored covenant violation