Transitioning board members each year is more than a formality—it’s a chance to reinforce strong governance, keep community finances healthy, and set board members up for success.

First and foremost, it’s crucial to comply with Florida’s statutes governing community associations and board turnover. HOAs should refer to Chapter 720 for election notice windows, open-meeting requirements, and record-keeping rules, while Condo Associations should look to Chapter 718 for similar mandates.

That means serving election notices within the prescribed timeframes, maintaining detailed minutes, and filing updated officer information with the Department of State promptly. Adhering to these legal guardrails not only keeps your process above reproach but also prevents challenges or delays that could derail your carefully planned timeline.

Whether you’re a seasoned property manager or a first-time board member, these simple steps will help you pull off a seamless board transition. Let’s walk through how to make sure nothing falls through the cracks.

Planning Ahead and Staying on Track

Starting your turnover prep two months ahead may sound like overkill—until you encounter a snag. In Florida, adhering to notice requirements, election rules, and financial close-outs require ample lead time.

• Create a Timeline: block critical dates on a shared calendar such as election notice deadlines, annual meeting invites, financial closeouts, and bank signer updates.

• Assign Clear Roles: to accomplish necessary tasks such as draft and mail election notices, gather financials, and coordinate with the management company.

• Build in a Buffer: include extra days to accommodate any hiccups such as late mailings or last-minute budget questions. Missteps like a late notice window can delay your entire schedule.

Mapping out these deadlines early means you’ll bypass any last-minute stress and discord.

Assemble Transition Records

Keeping a transition plan file is an effective way to communicate with board members. Whether it lives on a shared drive or in a three-ring binder, it lets incoming members pick up exactly where you left off. Be sure to include:

• Governing documents: articles of incorporation, bylaws, declaration of covenants, rules and regulations, and the latest amendments.
• Vendor contracts: such as landscaping, pool service, roofing inspections, and lake maintenance. Know when each expires and review periodically to ensure value and quality service.
• Other Documents: such as meeting minutes, insurance policies, management company, board member, and vendor contact lists, and emergency procedures.

When you hand this information off during orientation, new board members feel informed with less chance of becoming overwhelmed.

Banking Updates

If there’s one thing that can delay a new board member from acting in their new role, it’s failing to update banking information in a timely manner. Avoid that pitfall with a transparent, step-by-step process.

• Update account signers early: draft your board resolution, execute new signature cards, and submit them to the bank before the handoff. Make sure to update every account including all reserve savings accounts which are often farmed out to multiple banks.
• Joint Reconciliation: outgoing and incoming treasurers should sit down together to clear out petty cash, confirm all checks have cleared, and review bank statements line by line.
• Online Credentials: retire old admin logins, set up new profiles with appropriate permissions, and store credentials in a secure password manager.
• Annual Banking Review: review fees, interest rates on deposits and loans, FDIC insurance coverage, evaluate online capabilities, and ensure your association has all the services you need. Utilize resources such as BauerFinancial bank ratings to confirm the association’s banks are financially sound. At Cogent Bank , we are proud of our current Bauer rating of “4” or “Excellent”.

Cogent is happy to help review your current services and share ways to streamline and improve your association’s banking experience. This includes recommendations which would ensure 100% of your association’s funds are FDIC insured. Insured Cash Sweep (ICS) Sweep Accounts offer access to interest-bearing accounts with multi-million-dollar FDIC insurance coverage through one banking relationship. An intermediary company places funds with multiple approved financial institutions, providing one monthly bank statement listing all accounts.

Completing the banking transition well before the board turnover time gives everyone confidence to step into the new year.

New Board Member Orientation

An orientation doesn’t have to be stiff- strive to make it interactive and even throw in a little fun.

• Explain Roles and Responsibilities: cover fiduciary duties, open-meeting rules, and record-keeping obligations under Florida law.
• Budget Highlights: last year’s actual versus budget projections, spotlight variances, and brainstorm solutions.
• Live Q&A: invite your management company, CPA, or association attorney for a live Q&A to encourage real-world questions and answers.

Set the tone of the meeting with introductions and a fun icebreaker. Get creative with a short activity such as light-hearted trivia focused on your community. Keep in mind that people are more engaged and learn better when they are enjoying the meeting.

Keeping Homeowners in the Loop

Transparency is a key ingredient in building trust. Keep your community informed before, during, and after turnover.

•             Introduce each new director and share a top priority for the year.

•             List upcoming meeting dates and how residents can join.

•             Remind everyone where to find archived minutes, financial reports, and policy updates.

When residents see you’re organized and communicative, they’re more likely to back your decisions, and volunteer in the future.

Let’s Recap – Do’s and Don’ts

Do

• Start planning at least 60 days before the annual meeting / election day.
• Conduct joint bank reconciliations with old and new treasurers.
• Package orientation materials into bite-sized, clear handouts.
• Keep homeowners updated with regular communications.
• Review vendor contracts and insurance policies annually.

Don’t

• Wait until the week before board turnover to make banking changes.
• Let financial statements go unreconciled and unaudited.
• Dump every document on new members at one time- pace the information.
• Skip the formal handoff meeting between outgoing and incoming boards.
• Assume homeowners know what’s changing- it is better to overcommunicate.

Turning over a new board doesn’t have to feel overwhelming. Think of it as a chance to strengthen relationships and combine the wisdom of current board members with the fresh ideas of new board members- all to create a sense of continuity critical in creating a strong board.

Cogent Bank – Moving Your HOA Forward

At Cogent, we are proud to partner with you as your Association Banking experts. We help simplify board turnover by using digital signature cards, empowering current signers to update online users and authorities, and automating account reconciliation. No more tracking down every board member to sign one form. We’ve got you covered!

Reach out today to see how Cogent’s Association Banking specialists located throughout the State can assist your board with turnover- as well as all your banking needs in the coming year.

Disclaimer: The information contained herein is for informational/educational purposes only. The views and opinions expressed in this document may be those of the individuals and may not necessarily reflect those of Cogent Bancorp and its subsidiaries and affiliates, or the entities they may represent. Content contained herein may be used in connection with the advertising and/or marketing of products offered by Cogent Bank or Cogent Private Wealth. The material is not intended to provide or substitute for legal, tax, or financial advice or to indicate the availability or suitability of any Cogent Bank product or service. You should consult with a legal, financial, tax, or other appropriate professional(s) for your specific needs and/or objectives before making any decisions.