Chapter 720 and HOAs - the basics...

 

The board must act in the best interests of the association

 

Legal principle:

Board members must:

• act in good faith

• act in the best interests of the association

• avoid conflicts of interest

Otherwise, their actions may be challenged.

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Mandatory access to documents

 

Owners have the right to access:

• budgets

• contracts

• meeting minutes

• financial records

Denying access may be illegal.

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Decisions must be made in meetings

 

The board cannot:

• make important decisions in private

• act alone without a vote

Meetings must be announced.

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Owners can recall directors

 

Owners can organize a recall.

This can:

• remove a president

• remove the entire board

 

Expenses must be justified

 

Major expenses must:

• be authorized

• be documented

• be in accordance with the budget

 

Chapter 720 and homeowners - the basics

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Chapter 720 Protects Members’ Rights (General Principle) - Florida Statutes 720.302

 

This provision states that the law aims to “protect members’ rights.” This means that:

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• homeowners retain their civil rights

• the HOA cannot act as an authority that restricts speech or association

 

Right to Free Speech and Participation - Florida Statutes 720.303

 

Members have:

• the right to attend meetings

• the right to speak at meetings

• the right to comment on topics under discussion

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Homeowner Mobilization

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• Formation of a coalition/website - independent of the Association

• Petition

• Committee meeting

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Access to documents

Allows for exposing:

• mismanagement

• unjustified expenses

 

Board recall

Official procedure.

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Amendment of rules

Owners may amend:

• CC&Rs

• bylaws

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