Article
Courtesy of Miami Today News
By
Marilyn Bowden
Posted Thursday, August 26, 2004
Changes
to state laws governing condominium and homeowners associations will give
homeowners more say in how their associations are run, experts say, and
provide assistance for the settlement of disputes between owners and boards.
The
new laws, signed by Gov. Bush in June, will take effect Oct. 1, said Monte
Kane of accounting firm Kane & Co., which works with condo communities in
Brickell, Aventura and Boca Raton.
The
most significant change in the law, he said, is the creation of a condo
ombudsman in the Division of Florida Land Sales, Condominiums & Mobile
Homes.
"The
ombudsman, who will be appointed by the governor, must be an attorney admitted
to practice in Florida," Mr. Kane said, "who will act as liaison
between the division, unit owners, boards of directors, managers and others
and assist them in understanding their rights and responsibilities."
The
ombudsman will mediate disputes, monitor and review election procedures and
make recommendations for changes to the rules, he said.
The
statute also creates a seven-member Advisory Council on Condominiums to serve
as a receptor for public feedback and an advisor to the division, said Nancy
Campiglia, an attorney who specializes in condo law.
It
also reinstates a requirement that owners who sell their units must provide
buyers with the same Frequently Asked Questions form the division requires of
developers, she said.
"The
questions addressed here are basic but important," Ms. Campiglia said,
"such as the amount of the monthly or quarterly maintenance fee."
Investors
who purchase units intending to rent them out are protected from retroactive
amendments to condo documents restricting renting, she said. "This
provision adds certainty to the purchaser or owner who purchases relying on
the ability to rent the unit in the future."
A
greater number of changes were made to the statute governing homeowners
associations, said Tony Kalliche, executive vice president at Continental
Group, a firm managing about 425 Florida condo and homeowners associations.
"Condo
law has been in existence for a much longer period of time," he said,
"but the Homeowner Legislation Statute is in its infancy. The changes
there incorporate many protections that already exist in condo law."
A
task force created by the Department of Business and Professional Regulation
at the request of Gov. Bush held public hearings across the state before
recommending changes to the law, said Ms. Campiglia, who was then the
department's general counsel.
"We
were surprised at some of the very strong stories coming out of these meetings
about how some board members were treating owners," said Continental
President Richard Strunin. When a community is professionally managed, he
said, "it's looked upon differently in terms of compliance."
Disclosure
requirements at time of resale mirror those reinstated on the condo side, Ms.
Campiglia said.
Mr.
Kane said the area of financial reporting is one example of homeowner laws
catching up to condo law.
"The
statutes now require that associations of more than 50 homes with annual
revenues of $100,000 to $200,000 must have statements compiled by a CPA,"
he said, "Those with $200,000 to $400,000 in revenues have to be reviewed
by a CPA annually, and those with revenues over $400,000 must be
audited."
If
20% of the owners request it, Mr. Kane said, the level of financial recording
can be higher than that required by law.
"This
is another cost associations will have to anticipate in their budgets,"
he said. "The only difficulty is that it has to be done within 60 days
after year's end. That's next to impossible. Condos permit 90 days. They will
probably need to make a change next year to be consistent."
Ms.
Campiglia said the changes provide protection to parcel owners from Strategic
Lawsuits Against Public Participation by prohibiting suits against parcel
owners who address matters concerning their homeowners' associations before
governmental entities.
An
important addition for homeowners, she said, is a series of provisions
empowering them to rein in unresponsive directors.
"A
lot of the changes were prompted by a certain sense of frustration," Mr.
Kalliche said. "Boards weren't responsive."
Notice
of board meetings must now be sent not less than 14 days prior to the meeting
date, Mr. Kane said, and a new clause protects the right of all residents to
attend meetings and to speak for at least three minutes on any item on the
agenda.
Conditions
and procedures have been created, Ms. Campiglia said, for the recall of
abusive directors.
"The
changes to both statutes," she said, "appear to provide more rights
to the unit and parcel owners and to purchasers than have existed in the
past."
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