Small Changes Can Have Big Repercussions

Throughout HB 1203, which goes into effect on July 1, several very small changes could have large implications on how any association governs itself and its community.

Of course, most association management companies and law firms should be able to guide board members on these small changes – like the attorneys at The Orlando Law Group can.

Still, it is important associations and their volunteer members understand these small changes, which include things like kickbacks, compound interest, handling subpoenas and more.

The attorneys at The Orlando Law Group represent more than 100 communities in Central Florida. If you live in Orlando, Winter Garden, Altamonte Springs, Kissimmee or anywhere throughout Central Florida, The Orlando Law Group is ready to help you.

Kickbacks Now Have Criminal Implications

In most cases, directors and managers of associations would never consider taking a kickback, defined as taking a good or service that benefits the director or manager, or their families, that is not listed in a contract.

In the past, the association could remove a director who took at kickback. But doing so now is now a third-degree felony, punishable with up to five years in prison and/or a $5,000 fine. Plus, convicted felons cannot vote, cannot own a gun, and cannot serve on the HOA board anymore.

It sounds simple, but what happens when your landscape company invites a director to join them at a concert or a Magic game? Many people would not consider that a kickback, but the law would.

The only exception to this rule is “food to be consumed at a business meeting with a value of less than $25 per individual or a service or a good received in connection with trade fairs or education programs.”

The best advice: Don’t take anything from a vendor!

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