Q. I know the Florida laws provide that if a Director is more than 90 days delinquent in the payment of any monetary amount owed to the Association, the Director is no longer eligible to serve on the Board. What if the unit or home is owned by a corporation, partnership or trust and one of the corporate officers, partners or trust beneficiary is serving on the Board? The delinquency is not owed personally by the individual on the Board, so is he or she still eligible?
A. The laws you are referring to are fairly new, so there is not a lot of case law or arbitration decisions interpreting them. However, in my opinion a corporate officer, partner or beneficiary of an entity owner that is delinquent more than 90 days would not be eligible to serve on the Board. To hold otherwise would in my opinion defeat the whole purpose of the Statutes, which was to prevent persons who owe money to the Association from serving on the Board. If this issue was litigated in court, it is not likely that a judge would allow a board member to allow his corporation or trust to become delinquent and at the same time argue that he is eligible for the board because he is technically not the record owner of the unit. This is the recommended approach for this situation until a Florida court decides otherwise which is not likely.