Local court case could change how associations vote

Article Courtesy of The Forum Publishing Group

By CHRIS GUANCHE

Published August 15, 2007 

 

As Broward County's condominium population ages, it could become increasingly difficult to find directors to serve on association boards.

Although many Broward condos have senior populations, some communities are designated as senior-only communities. The problem of finding board directors could be more apparent in those communities, according to Jan Bergemann of Cyber Citizens for Justice, an Internet-based volunteer group that deals with condo issues. One reason for that difficulty, Bergemann said, was the condo market itself.

The 55-and-over communities run into problems because the buildings are old, and new retirees don't want to buy into an old community, Bergemann said. The older communities then become the target of younger buyers with less money.

     

But less interest from recent retirees doesn't translate into an influx of younger owners, as many senior-only communities have age restrictions built in their bylaws. According to Bergemann, excluding younger buyers creates additional problems since fewer residents mean that current owners have to pay higher dues and association fees to make up the difference.

"The elderly [owners] can't keep up with the cost," Bergemann said.

Lower populations in senior communities also affect an association's board if there aren't enough residents to serve as directors and create a quorum for meetings. In some associations, two owners from the same unit sometimes have served on the same board. Restrictions on two owners serving on a board vary by association, and a recent court case could have wider implications for condo associations.

At the Lakewood Village condo community in Coral Springs, two unit owners, Phil and Lauren Rosen Beracha, were elected earlier this year to positions on the association's board. However after the Beracha's announced their intentions to run, the association amended its bylaws to prohibit two unit owners from serving on a board. The issue led to a lawsuit, and although a Broward County judge ruled in favor of the Beracha's in late June, the case now has moved to the 4th District Court of Appeals.

If the decision stands, Bergemann said it will create problems for associations. "One unit has one vote in a membership meeting, but now two people from the same unit get on the board and have two votes, which are much more valuable as a board vote than a membership vote," he said.

Bergemann said his group would lobby the state Legislature in 2008 to address the issue.

But with an active case, it's too early to determine the long-term implications, according to Fort Lauderdale attorney Blane Carneal, who specializes in association law. Carneal said several variables factor into the actions taken by Lakewood's association, including whether the vote to amend the bylaws was properly conducted and recorded in the public record before the election occurred. "Every situation is different," he said.

Another factor is the way an association determines how many votes a unit gets, Carneal said. "If a unit only has one vote, how could spouses constitute two votes on a board?"

CONDO ARTICLES HOME NEWS PAGE