Florida's recent changes to condominium laws have significantly altered the landscape for condo board members. While these laws aim to improve governance and accountability, they also introduce new risks for board members who may not engage in deliberate misconduct but could still face liability. The Division of Florida Condominiums, Timeshares & Mobile Homes’ expanded jurisdiction to investigate complaints means increased scrutiny of board activities and the ability to refer such matters to local law enforcement. Be prepared for potential investigations, and maintain thorough records of all board decisions and actions.
Here’s what you need to know to protect yourself.
Expanded Liability for Board Members
Under Florida’s new condo laws, board members face increased scrutiny and potential liability. While the law primarily targets deliberate misconduct, it emphasizes the importance of oversight and diligence. Board members have a fiduciary duty to act in the association’s best interests, which includes exercising proper oversight on financial management, maintenance issues, and regulatory compliance. This means that even unintentional oversights could result in liability for failure to comply with regulations.
Staying informed about the new laws and your association’s governing documents, as well as keeping up with educational requirements, is essential to protecting yourself as a board member. Being proactive is key—don't ignore red flags. If you suspect misconduct or non-compliance, speak up and document your concerns.
Implementing compliance software can be valuable to help ensure your association meets regulatory requirements and maintains accurate records. When in doubt, consult with legal counsel or professionals specializing in condo association management; they can offer invaluable guidance in navigating complex situations and ensuring regulatory compliance.
Insurance Considerations
Lastly, ensure that you and other board members carefully review your Directors and Officers (D&O) insurance policy to understand its limitations, especially regarding the new regulatory environment.
Conclusion
While the new Florida condo laws present challenges for board members, staying informed, proactive, and diligent can significantly mitigate risks. By implementing compliance measures, maintaining open communication, and seeking professional guidance when necessary, well-intentioned board members can navigate these new waters successfully. Serving on a condo board is a serious responsibility, but by taking these precautions, you not only protect yourself but also contribute to the overall health and safety of your association.
Disclaimer: This blog post is intended to provide general information and does not constitute legal advice. It is recommended to consult with an attorney for advice regarding specific situations.