In the dynamic realm of Homeowner’s Associations (HOAs), where communities endeavor to preserve harmony and property values, recent events have underscored the vital significance of clear guidelines and transparent governance. With Florida hosting the second-largest number of associations in the nation, trailing only behind California, the need for Board oversight shouldn't come as a surprise.
Lessons and Challenges
Allow me to delve into a few situations that unfolded within Homeowners Associations (HOA), unveiling the complexities and ramifications of governance within such organizations.
In the first situation, an AD HOC committee, responsible for gathering information for a community project, operated without the confines of written predefined rules or bylaws. Instead, they receive a directive from the board president: the committee is solely tasked with information gathering and is not authorized to make decisions.
Unfortunately, contrary to the verbal directive, the committee proceeded to make decisions without board approval, highlighting the absence of fallback bylaws or written framework to regulate the committee's operations. This lack of structure and transparency resulted in significant turmoil, particularly for the board president, who unjustly faced scrutiny fueled by misinformation.
And another, in November 2022, the apprehension of board members for orchestrating a massive fraud at the Hammocks homeowners association in West Kendall, FL marked the culmination of residents’ years-long battle against allegedly corrupt leadership.
Prosecutors asserted that three past and present board members of the West Kendall’s Hammocks Community Association, one of the largest HOAs in Florida, were involved in a complex scheme spanning several years. This scheme, inclusive of the establishment of multiple "shell companies," led to the accumulation of over $1.4 million between 2017 and 2022.
Finally, in another situation, an association year-after-year appointed an Architectural Review Committee (ARC) chairperson capable of managing architectural decisions for the community. However, the association operated without the necessary operational framework for the committee, including the selection process for its chair and members.
Although an association may be granted the right to select an ARC through its bylaws, it is essential to also include a charter to govern. The absence of such hinders the ability of boards to depend on clear directives, emphasizing the crucial need to include these provisions to maintain consistent governance.
Clarity and Accountability: The Role of Committee Guidelines
The breach of trust in community associations emphasizes the need for oversight and accountability in HOA boards. It also underscores the necessity of clear guidelines in their bylaws, especially for its' committees.
When volunteer homeowners dedicate their time and expertise, they merit operating within a framework that precisely lines their responsibilities and authority. Whether a permanent committee ingrained in the association's bylaws or an ad hoc group assembled for a specific purpose, clarity stands as paramount. Without it, committee leaders and members may deviate from their intended path, as aforementioned, making decisions that should be subject to board approval, thus fostering discord among members and leadership.
The Florida statutes that regulate community associations, outlined in
Chapter 718 for Condominiums and
Chapter 720 for HOAs, explicitly outline the roles of two essential committees: the Architectural Review Committee (ARC) and the Grievance Committee. Of these, the ARC holds particular importance in maintaining the aesthetic standards of the community. In this post, I will delve into the role of the ARC, reserving the discussion of the
Grievance Committee for a subsequent blog post.
The ARC must evaluate any proposed alterations and ensures the preservation of the community's architectural integrity. This responsibility is outlined in the bylaws and underscores the importance of association members voting and the board reaching a consensus on any architectural changes, including aspects like paint color, which contribute to a community's distinct identity.
What exactly does membership entail? It's a blend of expertise, passion, and commitment to the community's well-being. Members may be appointed by the association board or the board chairperson based on their professional background or volunteer driven by their love for design. In some instances, professionals such as architects or landscapers lend their specialized knowledge to enrich the decision-making process.
In the intricate dance of selecting a chairperson for the Architectural Review Board (ARC), various factors come into play, shaping the process in unique ways for each homeowner’s association (HOA). The chairperson holds a pivotal role in steering the committee towards fulfilling its mandate of upholding architectural integrity within the community.
How is the ARC Chairperson Chosen?
First, the process for selecting a chairperson typically follows the association's governing documents and established procedures outlined in the charter. These documents serve as the compass, guiding the HOA through the labyrinth of decision-making. They may outline specific provisions dictating the process for appointing the ARC chair or offer a framework for the members to elect their leader from among themselves.
In some instances, the authority to appoint the ARC chairperson rests squarely within the hands of the HOA's board of directors. Drawing upon their wisdom and insight, the board might assess candidates based on a myriad of criteria, including experience, expertise, and leadership qualities. The aim here is to entrust the helm of the ARC to an individual who not only possesses a deep understanding of architectural principles but also demonstrates the ability to navigate complex issues with finesse.
Conversely, the mantle of leadership may be bestowed upon an individual through a consensus reached among ARC members themselves. This democratic approach fosters a sense of ownership and camaraderie within the committee, ensuring that the chosen chair is someone respected and trusted by their peers. Through collective deliberation and mutual respect, the ARC can chart a course that reflects the collective wisdom of its members.
Furthermore, the selection process may be influenced by the unique dynamics and culture within each HOA. While some associations may prioritize a hierarchical approach, where authority flows from the top down, others may place greater emphasis on inclusivity and grassroots participation. In such instances, the input of ARC members and even broader community involvement may play a pivotal role in determining the chairperson.
Ultimately, the journey towards selecting an ARC chairperson is as diverse and nuanced as the communities they serve. Whether appointed by the board, elected by fellow members, or chosen through consensus, the chairperson embodies the spirit of stewardship and dedication essential for preserving the architectural legacy of the neighborhood.
By embracing transparency, fostering collaboration, and adhering to established procedures, HOAs can ensure that its' committees remains a beacon of integrity and excellence within the realm of community governance.
About the Author: Liz Kenneally is a seasoned real estate agent in Miami with extensive experience in the city's dynamic market. She is also licensed in community association management. Liz specializes in coveted neighborhoods of Coral Gables, Dadeland, Continental Park, East Kendall, Palmetto Bay, Pinecrest, South Miami, and The Falls, Liz ensures smooth transactions for her diverse clientele. Fluent in both English and Spanish, she can be contacted at 786-423-3348 or through the EMAIL AGENT form provided alongside this blog.