Legislative Update: New Laws Affecting Florida Community Associations

When a bill passes the Florida Legislature and is sent to the Governor for consideration, the Governor has 15 days from which to sign the bill into law, veto it, or do neither (in which case the bill will automatically become law if unsigned within such 15 days). Senate Bill 398 and House Bill 377 have been signed by Governor Rick Scott. The following are summaries of the bills, which will take effect on July 1, 2017:

Senate Bill 398 amends the provisions of Florida Statutes 718.116, 719.108, and 720.3085 to establish new requirements for condominium, co-operative, and homeowners’ associations regarding the issuance of estoppel certificates.

• Reduces the time for associations to respond to written or electronic requests for estoppel certificates from fifteen (15) days to ten (10) business days.
• Requires each association to provide on its website the identity of a person or entity (and their street or e-mail address) to which requests for estoppel certificates may be sent.
• Provides that estoppel certificates must be submitted by hand delivery, regular mail, or e-mail to the requestor on date of issuance of estoppel certificate.
• Changes authorized association signatories for estoppel certificates from officer or agent of association to any board member, authorized agent, or authorized representative of the association, including authorized employees of the association’s management company.
• Establishes the information to be contained in, and the substantial form of, an estoppel certificate. The following information must now be included in the estoppel certificate: the date of issuance, name of unit owner pursuant to association records,  unit designation and address, parking space or garage number pursuant to association records, name and contact information for association counsel if the account is delinquent, fee for the preparation and delivery of the estoppel certificate, the name of the requestor, and assessment and other information, including whether the board of directors has the authority to approve of unit transfers and if there is a right of first refusal.
• Establishes a 30-day effective period for estoppel certificates sent via e-mail or hand delivery, and a 35-day effective period if delivered by regular mail. Requires issuance of an amended certificate at no charge if the association learns of new information or a mistake made in the certificate prior to the sale or refinance of the unit.
• Caps the fees which may be charged for preparation of an estoppel certificate at $250.00, unless such certificate is requested on an expedited basis, in which case an additional $100 may be charged; if there are delinquent amounts due to the association from the applicable parcel, the association may charge an additional fee not to exceed $150.00.
• Provides that no fee may be charged if the estoppel isn’t provided within the 10 business-day deadline; and establishes an aggregate fee limit for requests for multiple units owned by the same owner if there are no past due monetary obligations owed by such owner.
• Provides that the association waives the right to collect any amounts not included in the estoppel certificate from any person who relies on the information in good faith and his or her successors.
• Requires that the board of directors pass a resolution to establish the authority to charge a fee for the preparation and delivery of estoppel certificates.
• Provides that reimbursement for estoppel certificate fees for sales that did not occur may not be waived by agreement if the estoppel certificate fee was paid by someone other than the unit owner. Also provides for prevailing-party attorney fees related to actions for such reimbursements.
• Provides that the statutory fees authorized shall be adjusted every 5 years in keeping with the Consumer Price Index, and the adjusted amounts shall be published on the DBPR’s web site.

House Bill 377 amends Florida Statutes 95.11(3)(c), Florida Statutes. The bill was ostensibly passed in response to the case of Cypress Fairway Condominium v. Bergeron Construction Co., to clarify when “completion of the contract” occurs for purposes of the statute of limitations:

• Completion of the Contract, as referenced in Florida Statutes 95.11(3)(c), Florida Statutes, is now defines as the later of the date of final performance of all the contracted services or the date that final payment for such services becomes due without regard to the date final payment is made.

For a complete reading of the adopted legislation, please refer to the text of the bills available on the websites for the Florida Senate (www.flsenate.gov) and Florida House of Representatives (www.myfloridahouse.gov). Additionally, please contact our offices should you or your community require a more detailed legal analysis opining upon the impacts that the legislative changes described above can have on your community.

Also, please note that we are still monitoring the following bills which have already passed the Florida Legislature but are still waiting on action from the Governor:

• SB 1520: The “Termination of Condominiums” bill
• HB 653: The “Retrofitting with Fire Sprinklers” bill
• HB 6027: The “Financial Reporting” bill
• HB 1237: The “Condominiums” bill

 We will continue keeping you updated as the status of these bills change.