FACILITIES AT STONECREST CENTER HOUSEHOLDERS ASSOCIATION, INC.:
Services - Tennis:
Services - Golf:
Convenience - Private:
Amenities - Pool:
DESCRIPTION OF THE COMMUNITY
THIS COMMUNITY IS LOCATED IN BROWARD COUNTY, FLORIDA
HOA Offices of the Board of Directors and their functions:
The members of the Board of Directors are usually the President, Vice President, Secretary, Treasurer and General Members.
- President:The Chairman of the Board of Directors chairs all meetings of the Board of Directors. The President has ultimate responsibility for the execution of the orders and decisions of the Board of Directors. The President generally signs all contracts and other written documents and co-signs all checks and promissory notes.
- Vice President:The Vice-President deputizes for the President in his/her absence and carries out the other duties assigned to him/her by the Executive Board.
- Secretary:The secretary records votes and keeps minutes of all board meetings and work. The Secretary also signs contracts and other instruments made in the name or on behalf of the Association. The secretary is the custodian of the association's corporate seal and affixes it to all documents requiring the seal. secretary also serves or causes to serve; announces council and membership meetings; maintain adequate and up-to-date records identifying the members of the association and their addresses; and performs other duties required by the Board of Directors.
- Treasurer:The Treasurer shall receive and deposit all monies of the Association in appropriate bank accounts and disburse such monies as determined by resolution of the Board. The Treasurer signs all Association checks; he is the keeper of the ledgers; has an annual audit of the association's books by an auditor after each financial year; and prepares an annual budget and statement of income and expenditure, which is presented to members in accordance with the Civil Code, and provides each member with a copy.
- general member:The full member is the fifth member of the Board of Directors and is a voting member of the Board of Directors. The ordinary member fulfills the tasks assigned by the President or the Board of Directors.
Being a volunteer member of an HOA board comes with duties and responsibilities. The CC and R (Agreements, Conditions and Limitations) of the Associations and the Articles of Incorporation set out the general powers and duties of the Board and the specific limitations on the powers of the Board. The board of directors of a HOA generally has the power to make and publish "rules and regulations" to protect the interests of the owners. Each Board position comes with specific duties and responsibilities.
Fiduciary Duties of HOA Directors
The day after dayThe shops of most developments, such as Operations such as money management and community maintenance are normally managed by the Home Owners Association (HOA) Board (also known as the “Board”). If you live in a PUD or common interest development, serving on the board can help sustain the well-being of your community. However, to act responsibly and avoid potential legal liability, you must be aware of your fiduciary duties as a member of the HOA Board of Directors. You breach these fiduciary duties and may be held personally liable for your actions or failures.
State corporate law establishes the fiduciary duties of Florida HOA directors. Most Florida HOAs are not-for-profit corporations formed by registering articles of incorporation in the state of Florida. Recognizing that members of a company's board of directors serve in positions of trust, state company law imposes a fiduciary duty on the company's board of directors and requires them to act in their best interests.
Subject to certain limitations, this fiduciary duty applies to HOAs, although they are generally non-profit organizations and HOA board members are often volunteers.
The fiduciary duties of a director have three main components:
- Duty of Care
- duty of loyalty u
- The duty to act within its competence.
Duty of Care of HOA Board Members:In order to do due diligence, an HOA director must make informed decisions, which may require some research before acting or voting on an HOA matter. For example, before an owner is fined for breaking a rule, board members should familiarize themselves with the association's CC&Rs and the details of the situation.
HOA's directors must also act reasonably and prudently, use good business judgment and avoid arbitrariness or volatility. For example, board members cannot penalize a homeowner for painting a house red just because they don't like that color if it is not a violation of HOA house paint color rules.
Duty of Loyalty of HOA Board Members:The duty of loyalty requires HOA officers to be loyal to HOA and to act fairly and fairly, in good faith, in the interest and benefit of HOA as a whole, rather than making decisions based on their personal interests or for their personal benefit .
HOA directors should also avoid acting on conflicts of interest. For example, board members who choose landscapers for shared properties should not give those landscaping contracts to family members or friends. For example, a board member who owns a purple house should not participate in a board vote on whether or not to allow pink and purple houses in the development as this is a conflict of interest.
HOA board members must maintain member confidentiality and not disclose confidential information. Suppose a homeowner informs a board member about the upcoming foreclosure of their home in order to arrange a payment schedule for HOA fees. In this case, the counselor should not disclose the information to a friend or neighbor.
The duty of HOA board members to act within their authority:This duty requires the HOA Board to carry out the duties incumbent upon it, but prohibits it from making decisions or acting on matters without appropriate authority. A HOA's powers derive from its obligations under state law and the powers conferred on it in documents governing development.
In order to ensure that the board fulfills its duties, all board members must know what duties are required. Review the state of Florida laws and documents governing the HOA, particularly the articles of incorporation and bylaws, and the CC&Rs from their development to determine the duties of the HOA and the extent of its authority.For example, if Florida state statutes or government documents do not give the HOA board the authority to make new rules and regulations, any restrictions it makes on house paint, for example, are likely invalid.
Protecting HOA Board Members from Personal Liability:HOA's board members are understandably concerned about their liability and the possibility of a lawsuit being filed against them. Owners who are upset with the HOA can sue individual board members and the HOA for a variety of reasons, such as: B. because the HOA does not properly maintain a common area or discriminates in enforcing a rule.
The best protection against liability is for all board members to take their jobs seriously. Board members can avoid a breach of fiduciary duty by being fully informed before decisions are made, ensuring they have the authority to act, and always acting in the best interests of the HOA.
In addition, some forms of personal liability protection are available under your state law, the documents governing your development, and your HOA's D&O insurance.
About the HOA insurance that protects board members:Your HOA insurance can also provide significant liability protection for board members. However, general liability insurance is not enough. Liability insurance protects HOA against claims for personal injury or damage to property. Therefore, your HOA should have adequate D&O insurance to protect directors from breaches of fiduciary duties.
Why a HOA Property Manager is important
Managing an HOA, especially a large association, can be challenging. Although a HOA board is responsible for this endeavor, the board members face some difficulties. They are volunteers with personal and professional lives, so time is often limited. Board members also often lack the skills required for the job because they are volunteers..
This is where a HOA property manager comes in. A HOA property manager, also known as a community association manager or condominium association manager, essentially handles most of the board responsibility. But instead of acting autonomously, the HOA manager works with the board to manage the community. Notably, the HOA manager is not a member of the board.
The Duties and Responsibilities of a HOA Property Manager:An HOA property manager performs many tasks that keep the community running smoothly. These duties include common area maintenance, billing and collections, financial management, owner and board communications, rule enforcement, vendor management, reporting, board training and support, risk management and administrative duties.
Maintenance of the common areas:HOA property managers must ensure that all public areas and facilities remain clean and in good condition. That means conducting on-site inspections, submitting maintenance requests, and contracting with vendors when needed. Safety is also a priority as much can happen to residents using the common areas. For example, any breach occurring on the website may make the club liable; the association can be sued for ultimate responsibility.
In addition, preventive maintenance is a top priority and is always more important than corrective maintenance. By adhering to a preventative maintenance schedule, managers can keep structures and equipment running longer. It also prevents breakdowns that can cost the club much more money to repair. When special projects are underway, the manager is responsible for executing the contracts and ensuring that the project stays on schedule and the HOA stays on budget.
Billing and billing:Homeowners' associations collect periodic fees from homeowners and use those fees to pay for expenses. The HOA Property Manager is responsible for billing landlords upfront and billing for efforts. This includes all collections created online and offline. The manager must also track and manage outages to maintain the good reputation of the association and its members. This can mean charging interest on arrears, offering payment plans, pledging and initiating foreclosure proceedings.
Communication between owner and board:Communication plays an important role in the success of a HOA community. The HOA manager is responsible for maintaining an open line of communication, whether with residents or the HOA board members. This includes sending communications in a timely manner, streamlining the creation and distribution of newsletters, and ensuring residents have easy access to relevant information. It also means answering phones and emails for any homeowner concerns.
Apply the rules:All HOA property managers must understand the Association's Articles of Association and CC&R, which will enable them to apply the rules consistently, fully and accurately. For example, part of the job description is to carry out frequent checks for violations, to report violations and to organize disciplinary proceedings. The executor does not have the final say in these matters. House managers lead the board of directors. You must abide by the decision of the Board of Directors and implement it accordingly.
Additionally, an HOA property manager must have more than just knowledge of state laws. This doesn't mean they have to be attorneys, but a thorough understanding of the federal and state laws that apply to HOAs is crucial to ensure the association does not face any legal issues. Some examples of federal laws that apply to HOAs are the Fair Housing Act and the Freedom to Display the American Flag Act.
Supplier management:Owners' associations don't work alone. It is often necessary to resort to external help to perform various functions. For example, an HOA would need to hire a contractor or landscaper for repairs. In addition, the property manager would be responsible for preparing RFPs, helping board members select a vendor, coordinating existing vendors and ensuring vendors are doing a good job.
Financial reporting and administration:For many homeowners associations, financial management is the most challenging aspect of HOA management. A HOA property manager can take on this task. The manager would be responsible for all bookkeeping and bookkeeping. They would also prepare monthly financial statements for board review. Managers can also help the board plan and stay on budget.
However, finding reservations is often beyond the expertise of an HOA property manager. For example, the manager would need to hire a professional, but he can understand the study. A HOA property manager can also prepare taxes for filing.
Formation and support of the board:Board members often lack the skills and knowledge required for successful community management. Fortunately, an HOA property manager can ensure the board understands and implements best practices. They can also help evaluate current community policies and recommend changes. Finally, some boards create policies on a whim without checking that they comply with state law and the documents governing the association. In addition, some management companies also offer education and training programs for board members.
Risk Management Directory:Owners' associations take a high risk. The job of the property manager is to mitigate these risks through careful assessment, planning and awareness-raising. For example, a property manager can help the board prepare for the worst-case scenario by identifying potential risks. This also means making sure the association has the right insurance policies in place.
Administrative duties:In addition to those listed above, property managers must perform a number of other tasks that are more administrative in nature. This includes scheduling and attending board meetings, reviewing contracts, responding to owners' questions and concerns, providing after-hours emergency services, organizing events, and maintaining the community website and newsletter.