09/02/26 Operation Sundown
A Reminder That Good Governance Matters
A recent Miami-Dade investigation known as “Operation Sundown” should
serve as an important reminder to every condominium and homeowners
association board about the responsibility that comes with managing an
association and its finances.
Following a two year investigation, the Miami-Dade Sheriff’s Office
announced arrests in connection with an alleged scheme involving the
misappropriation of at least $5.8 million from condominium and
homeowners associations. Investigators allege that association
funds including assessments, insurance proceeds, loan proceeds and
money intended for community projects were diverted through a network
involving property-management companies and affiliated vendors.
Authorities have also alleged the use of false invoices, undisclosed
relationships and other methods to gain access to or control
association funds.
It is important to emphasize that these are allegations in an ongoing
criminal case, and those charged are presumed innocent unless proven
guilty.
But regardless of the eventual outcome, Operation Sundown highlights
something every volunteer board member should understand:
Managing an association is managing a business.
Board members are often volunteers. They may be successful
professionals, business owners or retirees, but they are suddenly
responsible for budgets that can reach millions of dollars, vendor
contracts, insurance, reserves, collections, maintenance, legal
compliance, capital projects and the protection of community assets.
They should not be expected to know everything.
That is where having access to qualified, licensed professionals
becomes extremely important.
A knowledgeable licensed community association manager can help a
board establish processes designed to create accountability and
transparency: obtaining competitive proposals, documenting approvals,
reviewing invoices, monitoring contracts, maintaining financial
records, identifying potential conflicts, coordinating with attorneys
and accountants, and ensuring major decisions are properly presented
to the board.
But professional management should never replace Board oversight.
The strongest model is a knowledgeable Board working alongside
qualified professionals, with checks and balances between them.
No single person should have unchecked control over an association's
money, vendors, contracts and financial information. Boards should
understand what they are approving, ask questions when something
doesn't make sense, review financial reports regularly, understand who
their vendors are, and insist upon documentation.
Professional managers should welcome that oversight.
Good governance is not about creating unnecessary bureaucracy. It is
about creating a system in which every dollar can be accounted for,
every significant decision can be explained, and no individual has
enough unchecked authority to place the Association at unnecessary
risk.
Operation Sundown is an extreme example, but the lesson applies to
every association:
Trust is important. Controls are essential.
A strong association isn't built simply by hiring the right people. It
is built by establishing systems that help good people make good
decisions and make it difficult for bad decisions or misconduct to go
unnoticed.
For volunteer board members entrusted with their neighbors' money and
their community's future, having experienced professional guidance
isn't simply convenient.
It is an important layer of protection for the Board, the Association,
and every homeowner they represent.
09/03/2026 Before the Board Votes
Make Sure You Gave the Right Notice
Association boards regularly adopt rules and resolutions intended to address changing needs within their communities. But having the authority to adopt a rule is only part of the process.
How the Board adopts it matters too.
Before considering a new rule or resolution, a Florida HOA board should first ask an important question:
Does the Association's governing documents and Florida law give the Board the authority to adopt this rule?
The declaration, articles, bylaws and existing rules should be reviewed to determine the scope of the Board's authority. A Board resolution cannot simply create authority that the governing documents do not provide.
But there is another step that can easily be overlooked: meeting notice requirements.
Under Florida Statute 720.303(2)(c)2, when a homeowners association board will consider an amendment to rules regarding parcel use, written notice of the meeting must be mailed, delivered, or electronically transmitted to the members and parcel owners, and the required notice must also be conspicuously posted on the property or otherwise provided as permitted by statute, at least 14 days before the meeting.
That is significantly different from the general rule for HOA board meetings, which ordinarily requires notice identifying the agenda items to be conspicuously posted at least 48 hours in advance, absent an emergency.
Why This Matters
Imagine a Board is considering a resolution changing how residents may use a community amenity—perhaps rules involving a clubhouse, recreational facility, parking, common areas, or another aspect of property use.
The Board may have the underlying authority to regulate that activity.
The proposed rule may be completely reasonable.
The Association's attorney may even agree with the substance of the rule.
But the Board still needs to make sure it follows the correct procedure for adopting it.
If the proposed action constitutes an amendment to rules regarding parcel use, simply placing it on an agenda posted 48 hours before the meeting may not satisfy the statutory notice requirement.
That's why the question shouldn't only be:
“Can the Board adopt this rule?”
It should also be:
“What process must the Board follow to properly adopt this rule?”
Authority + Substance + Procedure
Good governance requires all three.
Authority: Do the governing documents and applicable law give the Board the power to regulate the issue?
Substance: Is the proposed rule reasonable, enforceable, consistent with the governing documents, and compliant with applicable law?
Procedure: Has the Association followed the proper meeting, notice and adoption requirements?
Missing that third step can create unnecessary problems even when the Board's intentions are good.
A knowledgeable community association manager working alongside qualified association counsel can help the Board identify these procedural requirements before the vote takes place—not after someone challenges the decision.
For volunteer board members, that's an important distinction.
A good decision isn't just about what the Board decides. It's also about making sure the Board has the authority to make it—and follows the proper process when it does.
09/09/2026 WHEN BAD GOVERNANCE BECOMES CRIMINAL
Florida community association governance isn’t just about following the bylaws. Certain intentional misconduct can carry serious criminal consequences.
Florida law includes criminal penalties that may apply to conduct involving kickbacks, fraudulent records, falsification or destruction of association records, and other intentional acts committed in bad faith. Depending on the conduct and applicable statute, violations can potentially rise to the level of felony offenses.
For Board Members and Community Association Managers (CAMs), the takeaway is simple:
Never accept kickbacks. Never falsify records. Never manipulate association documents. Never use your position for improper personal benefit.
Association funds belong to the association not individual board members, managers, or vendors.
Good governance requires transparency, documentation, proper financial controls, and accountability.
Protect the association. Protect the residents. Protect yourself.
