Our 2021 Webinars Begin This Month!

The February Issue Includes:

So You're on the Board . . .Congratulations & Condolences
Live Condominium/Cooperative Board Certification Webinar
Live Mobile Home Park Board Certification Webinar
March Webinars
CM On Demand Board Certification Classes
Request Affidavit to Opt Out of Certification Class
Add CM as Your Registered Agent - Free Service
C&M Social Media - Follow Us!
About The Green Marble
Presenting our 2021 Valued Business Partners

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When replying with a question or a statement, please include your full name and legal name of your Association, if you are a Board or Committee Member and/or Resident, and if you are a manager, your name, name of the your Management Company or if you are an independent manager, the name of the Association you manage. No acronyms, please unless your legal name is an acronym, This will expedite our reply to you as our database is by Association or Management Company.

So, You’re on the Board...Congratulations & Condolences . . . How to be a Director

By Arlene Ring, Director of Public Relations

Note: This is one of our most requested articles and is being reprinted as this is the most popular time of the year for electing new Board Members.

Congratulations! You have just been elected to the Board of Directors. First, there is the feeling of elation at what you have just accomplished (be honest now . . . everyone privately has a rush). Then it hits you. Oh my goodness, what have I gotten myself into? The answer: More than you have bargained for!

Unfortunately, too many people run for the Board to beef up their resumes and don’t take the job seriously. It is a very serious commitment and should not be taken lightly. There are serious consequences for your actions as well as your inactions. Another all too common scenario is that many owners seek a position on the Board of Directors because they have a secret agenda. The argument has been made that serving as a director is a full time job. Some say serving as director is a very easy job requiring very little time and effort.

Whatever line of thought you may subscribe to, you still have a duty to run the Association as a corporation. Even though the Association is a not-for-profit corporation, it should still be run as a business. Try visualizing yourself as a corporate executive (which is what you are) and how a Board member of a for-profit corporation such as Disney, Exxon, or Microsoft would behave. As a director of your Association, you are a leader. You are expected to take charge and carry out your duties in a professional manner.

Many Directors feel that since they are not getting paid for the job, they can take it easy. Keep in mind, however, that the manner in which you execute your duties will set the tone for the Association. Often Directors choose not to enforce their documents because they don’t want to cause waves. Some Directors fear repercussions if they actively enforce the Association’s Governing Documents. This is not a popularity contest. It is highly unlikely that you will win the Most Popular Person award. As a Director, it is your obligation to make tough decisions. No one said (or at least no one should have said) this job was going to be easy. If they did, they lied! This author has yet to meet the Director who did not have to make at least one difficult decision during their term. In this writer’s opinion, if any Director truly felt that they did not have to make at least one difficult decision, then one should question if this Director was truly serving the community or merely being a figurehead. Unfortunately, it is becoming an ever increasing trend for owners to sue the Board of Directors for failing to fulfill their fiduciary duty to the Association. This same shortcoming is being given as a reason for owners refusing to pay their assessments. Today’s owners want to see what their Board of Directors is doing. They are no longer content to just pay their dues and accept at blind faith that their elected leaders are acting in the owners’ best interests.

While your Association is a corporation and must abide by the Florida Statutes governing corporations, never forget that this is your neighborhood. You have to live there. Unlike an executive with IBM, when you retreat to your castle in the evening, your "shareholders" are right next door and you have to live with them. Don’t become one of the dreaded gestapo. Be reasonable and fair in your decisions and thought processes.

Don’t make decisions by yourself. Keep in mind that you are only one of several directors. Each decision should be a Board decision, not your personal decision. When going through the process of making a decision, remember to act in the best interests of the association. You must try to put on blinders when making decisions that affect the association.

As was discussed earlier, many Directors go on the board to fulfill a secret agenda. Learn to recognize other Directors’ hidden agendas. Knowing this information, better assists you in dealing with such board members and finding ways to better channel their efforts. All Directors have pet projects they would like to see brought to a successful end, but they should be projects that are in the best interests of the Association as a whole, not just a chosen few. You might want to have a Director assigned to each of the committees within the Association, although not necessarily the chairman of the committee.

The most important step you can take in becoming a successful Director is to become educated. Familiarize yourself with your Association’s Governing Documents (Declaration of Covenants & Restrictions or Declaration of Condominium, Articles of Incorporation, Bylaws, and Rules and Regulations). In particular, learn the provisions regarding director duties, meetings, assessments, and covenant enforcement. You may want to place the Governing Documents in a three-ring binder and then use divider pages to mark special sections. Highlight the frequently used sections such as annual meeting and board meeting requirements, document amendment provisions, collection of delinquent assessments provisions, and use restrictions. While it is not necessary to memorize the Association’s documents, you should become familiar enough with them so that you are comfortable.

Make sure your Association has provided you with a recorded set of Documents and all of the recorded Amendments to these Governing Documents. If you are looking at an unrecorded set, you may not be working with the legally binding documents of the Association. How do you know if the documents are recorded? There will be stamped information on each page showing that it was recorded in your county and the OR Book __, Page __ where it can be found in the Public Records of your county. Each page of your documents should have this stamp with successive page numbering. The exception will relate in the case of older homeowner associations as to the Articles of Incorporation and Bylaws for the association. Another exception relates to Association Rules and Regulations, which often are not recorded.

Remember that you were elected to enforce the Association’s documents. It doesn’t mean that you enforce only what you think should be enforceable. A director can’t pick and choose what will be enforced. To do so, opens up the Association and maybe the director to all sorts of liability. Eventually, you could find yourself in a lawsuit where you are on the losing end because you "selectively" chose what document provisions you wanted to enforce.

Not only do you need to become familiar with your Association's documents, you need to keep abreast of the laws and trends affecting community associations. The Florida Legislature makes changes to chapters pertaining to community associations on a yearly basis. New software for keeping the Association’s books and for creating eye-catching newsletters are coming out constantly. How do you find out this information about the ever-changing laws and community association trends? The following are some suggestions on keeping abreast of what goes on in the community association industry:

Some law firms and some other interested trade organizations offer free seminars/webinars on association law. (Note: Clayton & McCulloh offers our popular Community Connect Chats each year.) Some of these seminars also include practical, day to day advice for directors. Not only should you try to attend these educational events, but you should encourage your other board members and owners to attend. In fact, distribute flyers to the community inviting the other owners to attend or post the information where you display your meeting notices. This is a great way for you and others in your community to get some free advice and a chance to talk to directors in other associations about their problems and what successful (or unsuccessful) solutions they implemented.

Set aside a portion of your budget for industry periodicals, such as Florida Community Association Journal, HOA Leader, and the Florida Co-Operator.

Become involved with organizations that cater to Community Associations such as CHAIR, Space Coast Condominiums Association, and Community Associations Institute (CAI). The aforementioned organizations are education oriented and offer informative meetings. In addition, CAI offers outstanding publications such as their Gap Reports which cover such items as collections, contracts, bid specifications, and even information on how to be an officer in your association. Reimburse Board Members for their expenses when attending educational functions. Simply have them present to you a receipt that reflects they attended the event. Don’t forget to budget for these items. (Note: for information on these organizations, please see our Director of Public Relations or our Important Links section on our website).

Hire professionals which practice primarily or specialize in the Community Association industry. For example, there is a difference between hiring a real estate attorney and a Community Association Law attorney. This thought also applies to insurance agents, accountants, and other service providers.

If your Association does not employ professionals such as attorneys, accountants, and insurance agents, begin a search for these professionals. Even if you do not have an immediate need for one of these professionals, hire them now before you have a problem. Some of these professionals have complimentary services that can benefit your Association in the interim before the need arises to utilize their services.

In addition, they will have secured the necessary documents for the occasion when you will have need of their services. For information on selecting legal counsel for your Community Association, review our How to Select Legal Counsel for Your Community Association..

One of the most important things you can do as a Director is getting to know the owners. Upon being elected to the board, consider dividing up the owners’ telephone numbers and have each Director call the owners individually to introduce himself or herself. This could be one of the most important things you do as a Director. Remember, the time will come when you will need your community’s support, and this is one way to start building interest. No one wants to be a "number." By making the first contact when there is not a problem, a foundation of trust is laid. It is the first step toward establishing a positive relationship with the community and earning their trust and support.

If an owner provides you or the board with their proxy for a meeting, consider writing a note afterwards thanking the owner for their vote of confidence in you and expressing your appreciation for their assistance in making their voice heard at a meeting even though they could not attend. Little things like a thank you note will go a long way to better relations with your owners.

Finally, there is a misconception that if you are the president of the Association, you must abstain from voting at Board Meetings unless there is a tie. You should always vote on all issues unless you have a personal stake in the issue at hand. An example of when you should not vote would be if the Board was voting on your request to change the color of your home or if a relative of yours had submitted a proposal to provide services to the Association.

The rewards of serving on the Board can be tremendous. There can be tremendous satisfaction in knowing you’ve taken an active role in shaping your community. By serving on the Board, you are afforded the opportunity to meet your entire community and to make new friends. Conversely, you might make new enemies as well, but the rewards will outweigh the negatives. So, my condolences for the trials and tribulations you will encounter as a director and my heartiest congratulations for undertaking a challenging endeavor. Welcome to the world of Community Associations!

Our February Free Webinars

2021 Live Condominium and Cooperative Class

Thursday, February 23rd

2:00 p.m. - 5:45 p.m.

This is our only live Condominium/Cooperative Board Certification Webinar Class for 2021. If there ever was a Board Member 101 class, this is it. Created specifically for Associations governed by Florida Statutes 718 and 719 only. This class delves into information to prepare you for fulfilling your duties as an Officer/Director on your Board of Associations. Please check your Association’s Governing Documents to ensure that you are governed by one of these Statutes before making a reservation as we would not want you to discover that you took the wrong class.

Plenty of Q&A time including the option of pre-submitted questions. And the big bonus: the ever entertaining Senior & Founding Partner, Neal McCulloh hosts this class. You don't want to miss this one!

Special Note: The end time is approximate. It may end earlier.

2021 Live Mobile Home Park

Board Certification Class

Thursday, February 25th

2:00 p.m. - 5:45 p.m.

This class is for those Associations governed specifically by Florida Statute 723, and will prep you for your role on the Board. Please check your Association’s Governing Documents to ensure that you are governed by Florida Chapter 723 before making a reservation as we would not want you to discover later that you took the wrong class. This is the only live Mobile Home class scheduled for 2021.

Plenty of Q&A time including the option of pre-submitted questions. Our resident Statute 723 expert, Partner Russ Klemm, will host this class.

Special Note: The end time is approximate. It may end earlier.

Upcoming

Free

March

Webinars

The T’s of Telecommunications

Thursday, March 18th

6:00 p.m. - 7:30 p.m.

Please visit our website for more information on this tech savvy, game changer for Community Associations!

2021 Live Homeowners Association

Board Certification Class

Thursday, March 25th

6:00 p.m. - 9:30 p.m.

Please visit our website for more information on this required class for HOA Board Members.

Working with Acts of God

Tuesday, March 30th

6:00 p.m. - 8:15 p. m.

Please visit our website for more information on this brand new class tackling the natural disasters befalling Community Associations.

CM On Demand Classes

We now feature both Board Certificattion Classes and our Vendor Panel discussion, "Oh,What A Night!" on demand.

You can take these classes at 2:00 a.m. on a Saturday or whenever your heart desires. There are deadlines to view the Board Cerrification classes.

Some points to remember:

Please don’t sign up for the class unless you have put aside 2 – 2 ½ hours ro view the Boaed Cerrification Class within twenty-one (21) calendar days of making the reservation. "Oh, What A Night!" has no restrictions.

Do not share any of these links. This is an automated system and if you share it with someone else, they will not receive credit. Each person must complete the reservation form themselves. If you want to take more than one class (e.g., the HOA and the Condo class), complete two separate forms putting the Association’s name that you are signing up to receive certification for).

If we do not receive a survey within four hours of your completion of the class, we regret that we cannot provide your certification.

Upon successful completion of the course, you will receive your Certificate within twenty-one (21) business (not calendar) days.

For the most part, this is an automated system. Please read the website and your Confirmation and Instructions email in depth as it will expedite receiving your Certificate within the 21 business days.

So, pop the popcorn, pour your favorite beverage, grab your pen and pad, settle in your easy chair, and view this class on your computer, smart phone, or tablet!

To find our new CM On Demand classes, click on the button below. Then simply select which class you want to take. Upon completing a short registration form, you will receive an instructional email with the link to the class and instructions to how to receive your Certificate of Attendance.

Another personalized service from Clayton & McCulloh, the firm that Embraces Community. Shouldn't your Association have a law firm that puts you first?

Don't Want to Take the Certification Class?

If you prefer not to take the certification class, please use the button below to request an Affidavit "opting out" of taking the class.

Request Affidavit

Don't Forget to Add CM as

Your Registered Agent!

It's time to start filing your Annual Corporate Report. Please remember that as one of our clients, we will act as your registered agent on a complimentary service. For more information why your law firm is the best entity to be your registered agent rather than a board member or your manager/management company, please see our December issue of the Green Marble which is on our website under publications.

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About the "Green Marble"

The Green Marble is a monthly digital newsletter, a complimentary service for our Association Clients and Managers. CM also features an additional monthly digital newsletter, "CM Update," an annual "Community Chat" (delivered to your home via USPS), and "CM Special Editions." These publications are published by our Public Relations Department. If you have any questions, comments, or suggestions about this newsletter, please contact us at pr@clayton-mcculloh.com.

You are receiving this e-mail as you fall into one of the following categories:

*You are currently a client or client's manager;

* You have requested to be on our mailing list;

*as a former member of BCAM and NECAM you are

provided a complimentary subscription to the CM mailing list;

*By attending one of our seminars, you agreed to be part of our Confidential Mailing list.

If you elect to be removed from this e-mail service, we will no longer be able to send you seminar invitations, information on changes in the law concerning Community Associations, newsletters, or any other information regarding the Community Association industry. We sincerely hope we can continue to assist you with the challenges that face Community Associations today through this service.

When replying with a question or statement please include your name and the legal name of your Association or Management Company (no acronyms, please, unless your legal name on the Article of Incorporation lists an acronym.)

Thank You!

We would like to take a moment to thank our 2021 Valued Business Partners. These companies are experts in the Community Association field. There are special nuances that should be considered before hiring a company to handle your work.

We hope that you will consider securing a bid for their services for your Association or in your personal lives. These Valued Business Partners are leaders in their industries and we are thankful they partnered with us this year,

Please remember that simply by clicking on their logo, it will take you to their website where you can learn more about their services as well as hire them.

As the weeks go by, there will be more Business Partners joining us.