A Condo Law reader wrote to me the other day and asked the following question:
"Can the board of a homeowners' association in Florida vote to pay themselves?"
The HOA Act (Chapter 720 of the Florida Statutes) does not prohibit (or even mention for that matter)director and officer compensation. Absent any prohibition against such compensation in the HOA's governing documents and depending on what other limitations those documents may put on the board, it could presumably vote to compensate the directors for their service.
Section 718.112 (2) (a) of the Condominium Act provides as follows:
Unless otherwise provided in the bylaws, the members of the board shall serve without compensation.
Thus, if the condominium Bylaws specifically permit the board to be compensated, they may do so.
Many owners find such compensation utterly objectionable. The feeling from this quarter is that directors should selflessly choose to serve on the board and that compensating for such service could lead to (a) abuse and (b) the wrong individuals serving on the board. In other quarters, the feeling might be that if the governing documents properly permit compensation it should be allowed especially given the significant time commitment required for board service.
No matter where your feelings lie in this debate, it is always best from a cost-savings standpoint if otherwise eligible and worthy candidates willing to donate their time to board service are permitted to do so.
For those of you wishing to see specific topics addressed in the Condo Law blog, please send your suggestions to me via email at email@example.com. Your inquiries should be general in nature and not those which would require a review of your community's individual governing documents.