SB 996

We should support SB 996 bill entitled “Community Associations” and HB 649 companion bill  entitled “Petition for Objection to Assessment”.   These bills provide greater protection for community association owners by allowing condominium associations or cooperative associations to represent its members in petitions for  tax assessment valuation.   The association notice of intent to file a petition will require that the content, delivery and posting of the notice be provided its members, and an “opt out” for the member if they want to individually contest the tax assessment value.    This provision allows members to save their time, efforts and costly legal fees (typically incurred by individual member), having the association to represent their interests.

Analysis of SB 996:  Community Associations (Senator Ileana Garcia):

This bill entitled “Community Association” specifies requirements for the contents, delivery, and posting of certain association notices; provides that certain associations have the right to seek judicial review, appeal decisions, and represent unit or parcel owners in certain proceedings; provides and revises the parties considered as the defendants in a tax suit; provides unit or parcel owners’ options for defending a tax suit; provides that a condominium association may take certain actions relating to a challenge to ad valorem taxes in its own name or on behalf of unit owners.

Amending s. 194.011 (e)(1), F.S.; This provision clarifies that condominium associations have the meaning defined in s. 718.103, F.S, that cooperative associations have the meaning defined in in s.., F.S. 719.103, F.S., (comparable with definitions on homeowners associations under s. 723.075,  F.S.),  so that a single joint petition may be filed to the value adjustment board.     In addition, the provision interprets that association members include “units or” (referring to condominium or cooperative units) and “or parcel” (referring to homeowners) so that an intent to notice the petition of the value adjustment board is consistent, fair and equal for all classes of “association members.”     This provision provides that a notice of petition includes that by “not opting out of the petition”, the unit or parcel owner agrees that the association shall also represent the unit or parcel owner in any related proceedings, without the unit or parcel owners being named or joined as parties.

The notice must be hand delivered or sent by certified mail, return receipt requested, except that such notice may be electronically transmitted to a unit or parcel owner who has expressly consented in writing to receiving such notices by electronic transmission.  In cases involving condominium associations or cooperative associations, the notice must also be posted conspicuously on the condominium or cooperative property in the same manner as notices of board meetings under ss. 718.112(2) and 719.106(1), F.S., and to provide an effective date.  The notice must also provide at least 14 days so that a unit or parcel owner may elect, in writing, not to be included in the petition.

This provision clarifies existing law for cases pending on July 1, 2021 where condominium associations (as defined in s. 718.103) or  cooperative associations (as defined in s. 719.103) filing a single joint petition can continue to represent unit or parcel owners in appealing or seeking judicial review throughout related proceedings. If the property appraiser seeks judicial review or appeals a decision on the single joint petition, the association shall defend the unit or parcel owners throughout related proceedings and property appraisers are not required to name individual unit or parcel owners as defendants in such proceedings.  HB  649 “Petition for Objection to Assessment” contains identical language.

Amending s. 194.181, F.S.:  Parties to a tax suit.   This provision revises parties who are considered as the defendants in a tax suit; specifying requirements for the contents, delivery, and posting of certain association notices; providing unit or parcel owners’ options for defending a tax suit; imposing certain actions on unit or parcel owners who fail to respond to a specified notice; specifying the conditions for releasing a unit or parcel owner from a lis pendens related to certain actions.

This provision states in any case brought by a taxpayer (or a condominium or cooperative association), on behalf of some or all unit or parcel owners, contesting assessment of any property, the county property appraiser shall be party defendant, and in any case brought by the property appraiser pursuant to 194.036(1)(a) or (b), the taxpayer shall be a party defendant.    In cases brought by the property appraiser under s. 194.036(1)(a) or (b) relating to a value adjustment board  decision on a single joint petition filed by a condominium  or cooperative association under s. 194.011(3), the association  is the only party defendant, and individual unit or parcel owners are not required to be named as parties.

In addition, a condominium or cooperative association must provide unit or parcel owners with notice of the property appraiser’s complaint which must be hand delivered or sent by certified mail, return receipt requested, (or such notice may be electronically transmitted to a unit or parcel owner who has expressly consented in writing to receiving such notices through electronic transmission) .

In terms of condominium or cooperative property, if applicable, i the notice must be posted conspicuously in the same manner as notices of board meetings under ss. 718.112(2) and 719.106(1), F.S.

The association must provide at least 14 days for a unit or parcel owner to respond to the notice and  any unit or parcel owner who does not respond to the association’s notice will be represented by the association.   I f requested by a unit or parcel owner, the tax collector shall accept payment of the estimated amount in controversy, as determined by the tax collector, as to that unit or parcel, whereupon the unit or parcel shall be released from any lis pendens and the unit or parcel owner may elect to remain in or be dismissed from the action.   The notice must advise owners that they may elect to retain their own counsel to defend the appeal for their units or parcels; choose not to defend the appeal or be represented by the association.    Moreover, I n any case brought by the property appraiser under   s. 194.036(1)(c), the value adjustment board is a party defendant.

Amending  subsection (3) of s 718.111, F.S.  Power to Manage Condominium Property and to Contract, Sue and be Sued; Conflict of Interest.    This provision is intended to clarify existing law effective July 1, 2021.  This provision permits an Association to protest and defend actions pertaining to  ad valorem taxation of commonly used facilities or units or in eminent domain actions.   The association, in its own name or on behalf of  some or all unit owners, can institute, file, protest, or maintain any administrative challenge, lawsuit, appeal, or other challenge to ad valorem taxes assessed on units, commonly  used facilities, or common elements.     In any subsequent proceeding brought by the property appraiser subject to the single joint petition filed under s.194.011(3), F.S.,  the interests of the unit or parcel owners  will  not  be  deemed  necessary or indispensable parties to such actions.

ORIGINAL FILED VERSION OF SB 996