Skip to content
Dan Tiernan, COOAug 30, 20172 min read

KICKBACKS: Don’t get accused of taking them

Despite all the great work done by volunteer condo and HOA board members, the actions of a few bad apples have resulted in law changes that could label a casual lunch meeting an illegal kickback!

NET_lunchmeeting_orig20120816-17262-14wk1no

Board Members (and Managers) cannot accept anything of value from someone providing or proposing to provide services to their association without paying for it. So, don’t assume your Vendor or Manager will pick up the tab when you meet for lunch to review a proposal or discuss service improvements if you are a board member in a condo. Managers and Vendors can still spend up to $25 per board member for food at a business meeting for HOA Board Members.

You can still have a free donut and coffee at the seminar, or take a pen and brochure from a trade show or educational event – regardless of whether you are a Board Member in a Condo or HOA.

Here are the laws:

Condominium Law

718.111 (1) (a)

An officer, director, or manager may not solicit, offer to accept, or accept any thing or service of value for which consideration has not been provided for his or her own benefit or that of his or her immediate family, from any person providing or proposing to provide goods or services to the association. Any such officer, director, or manager who knowingly so solicits, offers to accept, or accepts any thing or service of value is subject to a civil penalty pursuant to s. 718.501(1)(d). However, this paragraph does not prohibit an officer, director, or manager from accepting services or items received in connection with trade fairs or education programs.

HOA Law

720.3033

(3) An officer, director, or manager may not solicit, offer to accept, or accept any good or service of value for which consideration has not been provided for his or her benefit or for the benefit of a member of his or her immediate family from any person providing or proposing to provide goods or services to the association. If the board finds that an officer or director has violated this subsection, the board shall immediately remove the officer or director from office. The vacancy shall be filled according to law until the end of the director’s term of office. However, an officer, director, or manager may accept food to be consumed at a business meeting with a value of less than $25 per individual or a service or good received in connection with trade fairs or education programs.

RELATED ARTICLES