Bill Summary By
CCFJ Director for Legislative Affairs
Milena Macias, Esq.
 

ANALYSIS OF BILL SB 394

LEGISLATIVE SESSION 2022

SB 394 (SUMMARY): Residential Associations

(Senator Ana Maria Rodriguez)   

ANALYSIS:

The proposed bill, SB 394, filed by Senator Ana Maria Rodriguez on October 1, 2021, needs our full support.

The proposed bill, entitled “Residential Associations,” revises the certification and mandatory educational requirements for board directors under (1) Section 718.112(d)(2), F.S. relating to residential condominium associations; (2) Section 719.106, F.S. relating to cooperative associations, and (3) Section 720.3033, F.S. relating to homeowner associations, with an effective of July 1, 2022.

This bill provides that owners who are governed under mandatory associations (i.e., condominium, co-operative or home owners) are dealt with in the same fashion, ensuring fairness.
 

This bill will also help alleviate the “I KNOW IT ALL ... BECAUSE I AM ON THE BOARD . . . “ presently posted by some arrogant or ignorant board members.

Removing the current “written certification” of a newly elected or appointed director (consisting of a director simply signing a piece of paper), by replacement of a mandatory affidavit (including educational requirements) will help ensure that the mandatory fiduciary responsibilities by a board member to the association is fulfilled.

Condominium Ownership: Section 718.112, Florida Statutes:

Section 1. Paragraph (d) of subsection (2) of section 12 718.112, Florida Statutes removes the verbiage of the “written certification” of a newly elected or appointed director.

In its place, the newly elected or appointed director must submit an “affidavit” which reads, in part, as follows: 1) an elected or appointed director shall certify by affidavit to the secretary of the association, that they have read the association’s declaration of condominium, by-laws and current written policies and will uphold such documents them to the best of his or her ability and that he or she will faithfully discharge his or he fiduciary responsibility to the association’s members, including the educational curriculum (certificate) administered by a division approved condominium.

If a director of an association of a residential condominium fails to timely complete the affidavit and educational certificate, they are suspended from service on the board until he or she and have complied with.

In addition, while the board may temporarily fill the vacancy during the period of such director’s suspension, is the secretary of the association required to retain such affidavits and educational certificates for 5 years after a director’s election or the duration of the director’s uninterrupted tenure, whichever is longer. Failure of affidavit and educational certificate on file does not affect the validity of any board action.
Co-operative Ownership: Section 719.106, Florida Statutes.

Section 2. Paragraph (d) of subsection (1) of section 719.106, Florida Statutes, is amended to conform to the similar provisions in Section 718.112 and Section 720.3032, Florida Statutes, and removes the verbiage of the “written certification” of a newly elected or director.

In its place, the newly elected or appointed director must submit an “affidavit” which reads, in part, as follows: 1) an elected or appointed director shall certify by affidavit to the secretary of the association, that they have read the association’s declaration of condominium, by-laws and current written policies and will uphold such documents them to the best of his or her ability and that he or she will faithfully discharge his or he fiduciary responsibility to the association’s members, including the educational curriculum (certificate) administered by a division approved condominium.

If a director of an association of a residential co-operative fails to timely complete the affidavit and educational certificate, they are suspended from service on the board until he or she and have complied with.

In addition, while the board may temporarily fill the vacancy during the period of such director’s suspension, is the secretary of the association required to retain such affidavits and educational certificates for 5 years after a director’s election or the duration of the director’s uninterrupted tenure, whichever is longer. Failure of affidavit and educational certficate on file does not affect the validity of any board action.

Homeowners Association; Section 720.3033, Florida Statutes.

Section 3. Subsection (1) of section 720.3033, Florida Statutes, is amended to conform to similar provisions in Section 718.112 and Section 719.106, Florida Statutes.

In part, section 720.3033, Florida Statues, expands to read:

Section 3. Subsection (1) of section 720.3033, Florida Statutes, is amended to read:

720.3033 Officers and directors.—

(1)(a) Within 90 days after being elected or appointed to the board of a homeowners’ association with at least 10 units, each director shall do both of the following:

1. Certify by affidavit in writing to the secretary of the association, as well as provide the educational certificate (which is valid for the uninterrupted tenure of the director on the board.) A director who does not timely file the affidavit and written certification or educational certificate is shall be suspended from the board until he or she complies with the requirement. The board may temporarily fill the vacancy during the period of suspension.

(c) The association shall retain each director’s affidavit and written certification or educational certificate for inspection by the members for 5 years after the director’s election. However, the failure to have the affidavit and written certification or educational certificate on file does not affect the validity of any board action.

Section 4. This act shall take effect July 1, 2022.

EFFECTIVE JULY 1, 2021

CONDO/HOA REFORM WISHLIST 2022