Understanding HOA Quorum Requirements

Living in a homeowner’s association has its advantages and disadvantages, and as long as the association is following proper bylaws, there are certain requirements in place that protect everyone involved. There is one requirement that can throw an entire meeting into turmoil if not met, this is called a “quorum.” By understanding common HOA quorum requirements, business owners in need of capital can apply those rules to making good financial decisions.

Quorum is a legal term that defines what the minimum number of people is necessary to conduct business, found in the definition of “quorum.” In simple terms, it is the smallest amount of people (if you’re talking about an HOA meeting, this would be board members or homeowners) that must be there to make decisions. Quorum is important because if not met, every decision made during that meeting is void and the group is unable to conduct any business.

While the Florida Statutes don’t stipulate specific numbers that are to be used for quorum, HOA boards often have strict rules in place. Your HOA documents should clearly define what your association requires. For example, a common rule for HOAs is that 40% of the members must be present, or at the very least, a percentage that is equal to twice the number of people on the board plus one.

Most HOAs find that having too many people at a meeting makes it difficult to conduct business. Some members simply won’t participate in discussion with such a large group, noting “it’s easier to get things done without too many people present.” That said, if members want to be protected from bad decision or money wasting measures, it’s essential they have a guarantee that certain numbers of people will be present to weigh in on matters that will inevitably affect their wallets.

When members of an HOA understand quorum, they have the upper hand over those who don’t because they know exactly how many people must be present in order to take action, and they have the ability to shut down proceedings if rules are not observed. They can essentially protect their finances and the investment they’ve made in their properties, which will boost the property value of everyone else in the association. If your HOA is contemplating taking money from the pockets of its members in order to make decisions that will affect wallets, it’s critical that they have a foundational understanding of quorum in order to make good choices.

It’s almost funny to think about, as you start to see the parallels of day-to-day life where your HOA’s quorum requirement comes into play, because in business, you face similar challenges of structure and order. If you’re in need of a loan to fund business programs or investments that require a quick turn around, you can trust GoKapital Loans to give you the capital you need to make sound choices that will push your business in the right direction. With some types of credit products, we can even have your funds in your account within the same week.

You must be willing to take risks if you want to attain success. This means weighing pros and cons in the moment and striking while the iron is hot. We provide flexible loan options that give you the freedom you need to make smart business choices without the hassle and do it within a short amount of time so you don’t miss out on opportunities.