AVOIDING CHAOS AT
YOUR HOA ELECTION
By
Eric Glazer, Esq.
Published November 21, 2016
While the condo statute outlines a very
specific and rigid procedure on how HOAs should conduct the
election, the HOA Statute doesn’t say much at all:
Elections of directors must be conducted in
accordance with the procedures set forth in the governing
documents of the association. Except as provided in paragraph
(b), all members of the association are eligible to serve on the
board of directors, and a member may nominate himself or herself
as a candidate for the board at a meeting where the election is
to be held; provided, however, that if the election process
allows candidates to be nominated in advance of the meeting, the
association is not required to allow nominations at the meeting.
The statute also requires the election to
take place at the annual meeting. In order to have an annual
meeting you need a quorum present in person or by proxy. The
quorum is typically 30% of all members. Voting by proxy is
allowed in an HOA, unlike in a condominium. Nominations are also
allowed from the floor, unless candidates are allowed to be
nominated in advance of the meeting.
Our firm won an interesting HOA election case
last year in arbitration before the DBPR. I think the case makes
for some good precedent here in Florida and deals with an issue
that has been plaguing HOAs for all eternity.
As we know, each and every year, we get
complaints from people that live in HOAs who say “I want to get
involved in the affairs of my community. I want to run for the
Board. But every year, we can’t get a quorum at the annual
meeting, so there is no election and the same Board has now
rolled over for a decade.”
Well the case that we won is called
Turner v. Butler Farms and it somewhat put a
stop to that nonsense. Here’s what happened. At Butler Farms HOA
the governing documents allowed people who want to run for the
Board to submit their names to be candidates in advance of the
annual meeting. The Board sent out a notice that there are 3
Board seats up for election this year. Four other board spots
are not up for election as those directors are serving for a two
year term. Our client, Mrs. Turner was the only person in the
HOA to submit her name in writing as a candidate for the Board.
Of course, on the night of the election, the
HOA is unable to obtain a quorum at their annual meeting.
Therefore, the Board took the position that there is no election
and the same 3 Board members roll over for another 2 year term.
Now, Mrs. Turner was furious, because she was saying I’m the
only person who submitted my name for three available seats
-- and the statute is clear --
if there are less candidates than available seats --
NO ELECTION IS NECESSARY. WHO CARES THAT THERE WASN’T
A QUORUM AT THE ANNUAL MEETING? I WANT MY SEAT ON THE BOARD!
The Arbitrator held that even though this is
in an HOA:
Since the association allowed names to be
submitted in advance of the annual meeting, and
since Mrs. Turner was the only
person who timely submitted her name to be a candidate and
since there were less candidates than
available positions,
no election was necessary ---- and it was
irrelevant that there wasn’t a quorum at the annual meeting.
Mrs. Turner is now on the Board.
But here is where it really gets interesting.
As to those 4 Board members who thought they would automatically
remain for another year, the arbitrator removed them from the
Board as well. It turned out that those four were rollover
directors, meaning they were on the board solely because there
was no quorum at the last election. Rollover directors must run
for re-election every single year. Sine none of those 4
directors submitted their name to be a candidate, they were
removed from the board as well.
This is the first time I am aware of a case
in an HOA where there was no quorum for the annual meeting, but
someone who wanted to get on the board actually got on the
board. And if nothing else, it’s the right decision because it
allows more people to participate in the affairs of the
community. Here’s someone who was the only person to step up and
volunteer. Why in the world shouldn’t she be allowed to serve?
So, the bottom line for HOAs about to conduct
your election, if your governing documents allow people to
submit their names in advance of the annual meeting, and
there are less names submitted than available seats, it is
irrelevant if you have a quorum at the annual meeting --- no
election is necessary --- and the people who submitted their
names are your new Board members.
Good luck with your HOA election this year.
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About
HOA & Condo Blog
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Eric Glazer graduated from
the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for more than 2
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decades and is the owner of Glazer
and Associates, P.A. a seven attorney law firm with offices in
Fort Lauderdale and Orlando and satellite offices in Naples,
Fort Myers and Tampa.
Since 2009, Eric has been the host
of Condo Craze and HOAs, a weekly one hour radio show that airs
at noon each Sunday on 850 WFTL.
See:
www.condocrazeandhoas.com.
He is the first attorney in the
State of Florida that designed a course that certifies
condominium residents as eligible to serve on a condominium
Board of Directors and has now certified more than 10,000
Floridians all across the state. He is certified as a Circuit
Court Mediator by The Florida Supreme Court and has mediated
dozens of disputes between associations and unit owners. Eric
also devotes significant time to advancing legislation in the
best interest of Florida community association members.
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