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Articles Tagged with Florida community association legislation

This year’s legislative session proved to be a busy one, with a number of bills passed by the Florida Legislature that will impact community associations throughout the state. We recently covered the passing of Senate Bill 72 in our blog, also known as the Civil Liability for Damages Relating to COVID-19, which you can access by clicking here. The following are summaries of additional bills that have passed the Legislature and are pending action by the Governor:

Senate Bill 630: Community Associations

Senate Bill 630 represents sweeping changes for Florida communities. These changes include allowing condominium associations to use the demand for pre-suit mediation process; increases the amount that can be charged for a transfer fee from $100 to $150; addresses insurance subrogation by clarifying that if a condominium insurance policy does not provide rights for subrogation against the unit owners in the association, an insurance policy issued to an individual unit owner in the association may not provide rights of subrogation against the association; and clarifies that associations’ emergency powers extend to health emergencies and includes holding virtual meetings and implementing plans based on advice from health officials. The legislation also prohibits associations from requiring certain actions relating to the inspection of records; revises requirements relating to the posting of digital copies of certain documents by certain condominium associations; authorizes condominium associations and cooperatives to extinguish discriminatory restrictions; revises the calculation used in determining a board member’s term limit; and deletes a prohibition against employing or contracting with certain service providers. The bill also makes important limitations to homeowners’ association rental restrictions adopted after July 1, 2021 and provides that any governing document or amendment to a governing document enacted after July 1, 2021, in connection with certain rental restrictions will apply only to parcel owners who acquire the property after the effective date of the governing document or amendment, or to parcel owners who consent to the governing documents or amendment. The bill also brought changes to condominium association websites, allowing them to make their official records available on mobile apps and now allowing both condominiums and homeowners associations to adopt rules for posting notices on websites and mobile apps, provided that electronic notices are still emailed to members who have consented to receive electronic notices. The bill also requires that notices of intent to record a claim of lien specify certain dates. It authorizes parties to initiate pre-suit mediation under certain circumstances; specifies the circumstances under which arbitration is binding; revises requirements for certain fines; revises provisions relating to a quorum and voting rights for board members remotely participating in meetings; revises the procedure to challenge a board member recall; revises the documents that constitute the official records of an association; revises the types of records that are not accessible to members or parcel owners; revises the circumstances under which an association is deemed to have provided for reserve accounts; and authorizes certain developers to include reserves in the budget. This act shall take effect July 1, 2021.

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While the 2020 Florida Legislative session was positioned to be a very active one, the COVID-19 pandemic seems to have affected the number of bills passed by the legislature. Below we have provided brief summaries of the bills passed by the Florida Legislature which impact Florida community associations.  It is important to note that at this time only a couple of the adopted bills have been signed by the Governor.

ADOPTED BILLS

SB 476: Law Enforcement Vehicles.  The approved bill includes provisions which preclude a condominium, cooperative, and homeowners’ associations, respectively, from prohibiting a law enforcement officer from parking his or her assigned law enforcement vehicle in certain areas.  The effective date of this bill is 2/21/2020.

SB 140: Fireworks.  The approved bill relates to the use of fireworks and defines the term “designated holiday”.  The bill provides for an exemption for the use of fireworks solely and exclusively during a designated holiday and prohibits homeowners’ associations from promulgating certain rules or regulations restricting same.  The effective date of this bill is 4/8/2020.

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HB 153 – Landlords and Tenants – § 83.51, Fla. Stat.:

  • Requiring landlords to provide their tenants with a physical copy of any restrictive covenants governing the premises and occupancy of the premises at the time the landlord and tenants execute a rental agreement.
  • Requiring landlords to provide their tenants with written notice by certified mail of any changes to the covenants or the enforcement of the covenants within 10 business days.
  • If passed, this law would become effective July 1, 2019.

HB 155 – Homeowners’ Association Recalls – § 720.303, Fla. Stat.:

  • Adding a qualification for recalls, whereby directors may be recalled and removed from office by a majority of the total voting interests who physically reside in the community. Previously, the requirement to physically reside in the community was not in place.
  • If an association’s declaration, articles of incorporation or bylaws specifically provide that members may also recall and remove directors by a vote taken at a meeting, such special meeting of the members may be called by 10 percent (10%) of the voting interests who physically reside in the community. Previously, the requirement to physically reside in the community was not in place.
  • If passed, this law would become effective July 1, 2019.

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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.

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