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Remove Officer, And Remove The Problem

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By RICHARD WHITE, Tribune correspondent

Published: February 9, 2008

I am a director in an association where there is a disagreement between directors. We have a security problem with teenage boys after school. Our board has voted to hire an off-duty policeman to enforce rules and regulations. One director, one of the officers, overrides any vote he does not like and orders the property manager not to implement the directions of the board.

The property manager tells me the treasurer has the money and refuses to pay the bills and threatens the manager's position. The manager is confused and does not comply with the board's directions. Is he doing something illegal by obeying the treasurer and not following a directive from the board of directors?

R.S.

Miami

The manager can have only one supervisor. Usually the manager is responsible to respond to the directions of the board, and the board would elect one person to act as the supervisor or contact person. Because one of the directors/officers is issuing conflicting orders, the directors must correct the problem, not the manager.

I would suggest the directors appoint a new officer to fill the position of the director causing the problem. You can do this at a properly called board meeting. The directors cannot remove the person as a director, but they can remove him as an officer. The other directors must take control of the situation.

Can a homeowners association make money other than maintenance fees as income? Some of our board members feel we can make a substantial amount of money by recycling newspapers. They claim that we could get $10,000 annually in revenues from this source and while lowering our maintenance fees. Can this be done?

M.K.
Bayonet Point
Associations are usually formed as a not-for-profit corporation under Florida statute 617. A not-for-profit corporation is not a nonprofit corporation and can make income as profit under this statute.

Yes, the association can have income generated from almost any legal source of commerce. The board must make sure that the income is properly accounted and that it is reported on the annual Internal Revenue Service tax report. I think it is great that the board is taking this green action to serve the members by generating extra income and helping the Earth.

I can offer this suggestion: Collect drink cans, and sell them as well. Any income generated will reduce the members' payments.

Write to Richard White, 6039 Cypress Gardens Blvd., No. 201, Winter Haven FL 33884-4115; or camquestion @cfl.rr.com.

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