HOA's (housing owner associations) are non-profit entities that collect dues and spend on behalf of the best interest of the members (housing owners). Associations are pretty much subject to the same rules as all nonprofits. Their distinction is that they exist to specifically benefit their members rather than the general public. The HOA board has a fiduciary duty to ensure the well being of the members and pursuit of mission. The board must act with due diligence and be compliant with local, county, state and/or federal laws. They must be fully informed. Again, they are liable for activities that negatively affect the members.
It appears that the HOA board in Florida, having the best advice in hand, chose not to look out for the safety of the members and now, not even the financial interests of the members. The board was not prudent - it did not look outside itself to act with a strategic eye to protect the members and their assets. This board failed. It will likely cost them assuming they bought enough insurance and weren't overly frugal.
Why doe this matter? Perhaps at minimum the Florida failing will be a wake-up call on HOA boards in particular and all nonprofit boards. Fiduciary duty means compliance but it also means being strategic. It means being prudent. This board was not.