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What Contracts Can the Association Approve Without a Vote?

On Behalf of | Nov 22, 2017 | Condo / HOA, Firm News |


Q. I am upset because my homeowners association fired the management company and hired a new company with only a vote of the Board of Directors. This is an expensive contract with a large management company. I believe the members have a right to approve these contracts, or at least have the right to cancel them at the next annual meeting. Am I correct here?

A. There is a provision in the Florida homeowners association statute regarding the members’ right to cancel a contract, but that provision applies only to bulk communications or bulk cable television contracts. The Board of Directors generally has the authority on its own to approve contracts for operation of the HOA, including management contracts. In fact, a contract for a management company does not even need to go out for bid. One exception is when the association is considering a substantial addition or change to the common areas, such as the clubhouse. Unless the HOA documents specifically authorize the Board to spend association funds on a large capital project, the Board will likely need a vote of the membership to proceed.