Article
Courtesy of LEXOLOGY
By
Berger Singerman LLP
Published June 21, 2021
Governor Ron DeSantis signed Senate Bill
56 and Senate Bill 630, into law on June 16, 2021. The
legislation, which is effective July 1, 2021, affects the
operation of homeowners associations and condominium
associations, including collection practices, notices of
meetings, transfer fees, electronic vehicle charging
stations, dispute resolution, emergency powers, official
records, reserves, and leasing. Below are highlights of SB
56 and SB 630 and the legislation changes to the laws
governing homeowners associations and condominium
associations.
Condominiums
If a condominium association’s insurance policy does not
provide a right of subrogation against unit owners, then an
insurance policy issued to a unit owner may not provide
rights of subrogation against the condominium association.
The notice requirement of a lien foreclosure action in condominium increases
from 30 days to 45 days.
Bids received by a condominium association for materials, equipment,
services and work to be performed to be maintained as part of the official
records of the association for at least one (1) year after receipt of the
bid.
Tenants, as opposed to a unit owners who are entitled to inspect the
official records of the association, are only entitled to inspect and copy
the declaration of condominium, by-laws and rules and regulations.
Although a condominium association my adopt rules regarding the frequency,
time, location, and manner of inspection and copying of official records, an
association may not require a unit owner to provide any purpose or reason
for the inspection.
In lieu of the requirement for a condominium association managing a
condominium of 150 or more units having a website meeting the requirements
set for in the Condominium Act, a condominium association may maintain an
application accessible on a mobile device
As with a notice of annual meeting of a condominium association, notice of
all other association meetings must include an agenda and be mailed,
hand-delivered or electronically transmitted to all unit owners and posted
on the condominium property for the time period set forth in the by-laws or,
if no timeframe is provided in the by-laws, at least 14 days.
The limitation on condominium association transfer fees was increased from
$100 to $150, which fee may be adjusted every five (5) years based on the
Consumer Price Index.
The provisions in the Condominium Act relating to electric vehicles and
electric vehicle charging stations have been expanded to include natural gas
fuel vehicles and natural gas fuel stations. In addition to installation
within limited common elements, owners may install electric vehicle charging
stations and natural gas fuel stations within an assigned parking space.
Installation of electric vehicle charging stations and/or natural gas fuel
stations by the association within the common elements or association
property is not a material alteration or substantial addition to the common
elements or association property.
Other than election and recall disputes which are required to be submitted
to arbitration or court action, disputes involving condominiums that
previously were subject to mandatory arbitration before the Division of
Florida Condominiums, Timeshares and Mobile Homes (the “Division”) may now
either submitted to presuit mediation in lieu of arbitration. If all parties
to an arbitration agree in writing, the arbitration decision is binding.
Developers are specifically authorized to use funds in excess of 10% of the
purchase price of a condominium unit for actual costs incurred by the
developer in construction and development of the condominium property
including costs for demolition, site clearing, permit fees, impact fees, and
utility reservation fees as well as architectural, engineering, and
surveying fees that directly relate to construction and development. Such
funds are expressly prohibited to be used for loan fees and costs, principal
and interest on loans, attorneys fees, accounting fees and insurance costs.
Fines imposed on unit owners after hearing are due five (5) days after
notice of the fine is provided to the unit owner as opposed to five (5) days
after the committee meeting at which the fine is approved.
The authority of the Division to investigate complaints is expanded to
include complaints regarding the maintenance of official records in addition
to access to official records.
Homeowners Associations
Homeowners association rules and regulations are no longer included in the
term “governing documents.”
In addition to other methods of providing notice of board and member
meetings, a homeowners association may adopt a rule providing a procedure
for posting of meeting notices and associated agendas on the association’s
website or application that can be downloaded on a mobile device. Such
notice must be for at least the minimum period of time for which notice of a
meeting is also required to be physically posted on the association
property. In addition to such notice, the association must send an
electronic notice to members whose e-mail addresses are included in the
association’s official records.
Ballots, sign-in sheets, voting proxies and all other papers and electronic
records relating to voting by parcel owners are to be maintained as part of
the official records of the association for at least one (1) year after the
date of the election, vote or meeting.
Information obtained in a gated community in connection
with guests’ visits to owners or residents are a new category of records
which are not open for inspection by owners.
A developer may, but is not required, to include reserves in a homeowners
association budget. Partial funding of reserves by the developer is
specifically authorized.
If a developer does establish reserves, the developer has the right to
determine the amount of reserves and the developer is NOT obligated to pay
for (a) contributions to reserve accounts for capital expenditures and
deferred maintenance, (b) reserves that are required to be funded pursuant
to state, municipal, county or other governmental statutes or ordinance, (c)
operating expenses, or (d) assessments relating to the developer’s parcels
during the time that the developer is deficit funding, i.e. paying the
deficit in any fiscal year between the total amount of assessments
receivable from other members plus any other association income and the
lesser of budgeted or actual expenses incurred by the association during the
fiscal year.
Homeowners association election disputes and recalls may be submitted to
arbitration before the Division or filed in court.
Fines imposed on unit owners after hearing are due five (5) days after
notice of the fine is provided to the unit owner as opposed to five (5) days
after the committee meeting at which the fine is approved.
Notice of homeowners association meetings must be mailed to the address
identified as an owner’s mailing address in the official records of the
association as opposed to the mailing address indicated on the property
appraiser’s website.
Other than amendments to governing documents that prohibit or regulate
rentals for a term of less than six (6) months or prohibit rentals of more
than three (3) times in a calendar year which apply to all owners, governing
documents and amendments to governing documents enacted after July 1,
2021which prohibit or regulate rental agreements apply only to owners who
either acquire a parcel after the effective date of the governing document
or amendment or who consent to the governing document or amendment.
Condominium Associations and Homeowners Associations
Invoices and statements of account sent out by a condominium or homeowners
association must be sent by mail or e-mail to the address maintained in the
official records of the association. The association must provide 30 days
written notice to an owner before changing the method of delivery of
invoices and statements of account for assessments, and the owner must
affirmatively acknowledge, either in writing or electronically, the change
in delivery method, which acknowledgment must be maintained as an official
record of the association.
In order for a condominium association or homeowners association to recover
attorneys’ fees relating to past due to assessments, the association is
required to provide a mandatory “courtesy notice” 30 days before any
collection action specifying the amount owed and providing the unit owner an
opportunity to pay the amount owed without the assessment of attorneys’
fees. Such notice must be in the form set forth in the statute. An affidavit
of compliance is required to establish a rebuttable presumption that the
courtesy notice was sent. In the event such notice is not provided, the
association may only recover past due assessments, late fees and interest.
The exercise of emergency powers by condominium and homeowners associations
are expanded to include response to not only damage but also “injury” caused
by or “anticipated” in connection with an emergency as defined in the
Emergency Management Act. In addition to the current emergency powers,
additional authorized emergency powers include conducting board and
committee meetings, elections and member meetings by phone, real-time video
conferencing or similar electronic or video communication. Notice of such
meetings can be provided by electronic transmission.
Decisions to restrict access to common areas and other facilities may be
based not only on the advice of emergency management officials but also
public health officials. In addition, emergency powers specifically include
the authority to sanitize condominium and association property.
Notwithstanding a declared state of emergency, an association may not
prohibit owners, tenants, guests, agents, or invitees from accessing a unit
and common elements for purposes of ingress and egress to and from a unit
when access is necessary for connection with (a) the sale, lease or transfer
of a unit, (b) the habitability of a unit, or (c) the health and safety of a
person.
The full text of SB 56 can be found
HERE.
The full text of SB 630 can be found
HERE.
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