Q: My condominium association board voted to substitute the roofs on the condominium structures, which are 20 a long time old. I am not aware of any big difficulty with the roofs. Our condominium paperwork say that any capital enhancement have to be accepted by a majority of the unit house owners. Can the board do this? (M.N., through e-mail)
A: The affiliation, via the board of directors, is responsible to maintain, maintenance, and substitute the common factors of the condominium. Thus, assuming that roofs of the condominium structures are popular elements, which is most frequently the circumstance, the board is liable to make sure that the roofs are adequately preserved, fixed and when required, changed.
Florida legislation recognizes the “business judgment rule,” which grants discretion to a corporate board, including the board of a condominium association, to make choices in the furtherance of its fiduciary responsibility. The board is entitled to depend on the information of proper experts in discharging this responsibility. In the scenario of the need to replace your roofs, that would be an engineer. The preference built by the board does not have to be the only alternative for it to be legitimate if it is reasonable.
Most declarations of condominium do not limit a board’s authority to make “capital improvements” (which an accounting expression), but somewhat “material alterations” or “substantial additions.” Less than well-founded situation law, a product alteration or sizeable addition is a person which “palpably or perceptively varies or modifications the variety, condition, elements or specifications of frequent factors from its unique layout or prepare, or present problem, in these kinds of a fashion as to appreciably impact or influence its operate, use, or visual appearance.”
For illustration, shifting the coloration schemes of constructing roofs would be a “material alteration.” Though the language of your declaration will dictate the proper reply, most condominium documents would empower the board, with out a unit operator vote, to change roofs.
Q: I am the principal of a Restricted Liability Corporation (“LLC”) and the LLC owns a lot in a homeowners’ affiliation. Can I run for the board of administrators? An additional Proprietor instructed me I was not eligible simply because a company entity is not a “member” of the affiliation, and its staff members are not suitable to serve on the Board. (J.R., by using e-mail)
A: As an initial matter, Florida regulation utilizes the expression “managers” and “members” to refer to brokers for an LLC, not “principals.” Usually, a supervisor is vested with the authority to act for the LLC.
Section 720.306(9) of the Florida Homeowners’ Association Act states that all associates of the affiliation are eligible to serve on the board. There are exceptions when there are selected economical delinquencies and for persons convicted of sure felonies. As a whole lot operator, the LLC is a member of the Association and entitled to have a agent run for the board.
Artificial entities supply exceptional troubles in association governance. In addition to LLC’s, property is often owned by corporations or partnerships. Trust ownership is also pretty frequent. I suggest that the bylaws of every single association have a clear assertion as to who is approved to exercise the legal rights of ownership when a device or parcel is owned by an entity. This incorporates not only the correct to operate for the board, but also the ideal to vote and attend affiliation meetings.
Quite a few files need entity owned homes to designate a “Primary Occupant,” who is then the person vested with the rights of membership. In the absence of direction in your bylaws, there is normally grounds for confusion. This is especially accurate given that lots of entities are created in different states (and subject matter to the legal guidelines of that condition) and the paperwork relating to the administration of the entity are rarely recorded in the general public information.
Joe Adams is an legal professional with Becker & Poliakoff, P.A., Fort Myers. Send out thoughts to Joe Adams by e-mail to [email protected]. Earlier editions may possibly be viewed at floridacondohoalawblog.com
This article originally appeared on Fort Myers News-Press: Can board decide on new roofs?