This is the post-session report on residential housing law changes from the 2014 Legislative Session. The Governor has taken final action on the measures, and the appropriate Session Law number follows the summary on each bill. The full texts of each enrolled bill, as well as applicable legislative staff reports, are available on the legislative web sites (www.flsenate.gov; www.myfloridahouse.com; and www.leg.state.fl.us.). The full text of the following changes are found in HB 7037, HB 807 and SB 440.
(HB = House Bill; SB = Senate Bill). All changes are effective as of July 1, 2014.
CONDOMINIUMS - RESIDENTIAL (Chapter 718)
Abandoned Units - 718.111 - Authorizes condominium associations to inspect and repair abandoned condominium units. An abandoned unit is defined as one that is subject to a foreclosure action and no one has occupied the unit for at least four (4) weeks, or the unit is not subject to foreclosure but has been unoccupied for two (2) months and the owner cannot be located after reasonable search. This amendment also allows the condominium association to recover costs associated with maintaining an abandoned unit
and secure them with a lien on the unit.
Board Meetings - 718.112 - Provides that a board or committee member may participate in a meeting via real time video conferencing, internet enabled video conferencing, or similar electronic or video communication and such participation counts towards the quorum and allows for voting as if physically present. Expressly provides that board members may not vote by email.
Collections (Condominium Owned Units) - 718.116 - Defines the term “previous owner” to exclude a condominium association that owns a unit which allows it to recover past due assessments accrued prior to its ownership from a new owner. This aligns the condominium act with the homeowners association act that was amended last year.
Collections (Liens) - 718.116(5)(D) - Creates a form for a release or satisfaction of an assessment lien. This allows a community association manager to prepare the form without being subject to an allegation of the unlicensed practice of law.
Collections (Demand Letters) - 718.116(6)(b) - Creates a form letter to be used in informing an owner that the association has filed a claim of lien against the unit owner’s unit and that the lien will be foreclosed in thirty (30) days if not paid in full. As with the change to 718.116(5)(D) above, this allows a manager and management firm to prepare this letter without being subject to an allegation of the unlicensed practice of law.
Distressed Condominiums (Sunset Date) - 718.707 - The sunset provision for the bulk assignee bulk buyer legislation has been extended from July 1, 2015 to July 1, 2016.
Insurance - 718.111(11) - Further clarifies that the association is only responsible to repair damaged items if the damage was caused by an insurable event.
Official Records - 718.111(13) - Provides that an owner may consent in writing to the disclosure of certain contact information beyond name, address, and telephone number. Requires an outgoing condominium association board or committee member to relinquish all official records and property of the association within a specified time period and provides that there may be a civil financial penalty for failing to relinquish such records or property.
Termination - 718.117 - If a plan of termination for a condominium association fails to receive the necessary voting approval, the plan cannot be reintroduced for at least six (6) months.
HOMEOWNERS ASSOCIATIONS (Chapter 720)
Amendments – 720.306 - Removes the requirement that a copy of an amendment to an HOA declaration be sent to all owners within thirty (30) days of it being recorded, and instead allows for a notice of such
amendment to be sent within that same time period.
Board Meetings - 720.303 - Requires a board meeting to be held in a location accessible to a person who is physically handicapped upon the request of that person.
Board Meetings - 720.306 - Requires that a membership meeting be held at a location accessible to a person who is physically handicapped upon the request of that person.
Collections - 720.3085 - Creates a form for a release or satisfaction of an assessment lien. This allows a community association manager to prepare the form without being subject to an allegation of the unlicensed practice of law.
Emergency Powers - 720.316 - Incorporates the emergency powers provisions of the condominium act into the homeowners association act.
Official Records - 720.303 - It also provides that an owner may consent in writing to the disclosure of certain contact information beyond name, address, and phone number.
PROPERTY MANAGEMENT
Definition of Community Association Management - 468.431 - Revises the term “community association management” to include the following activities: determining the number of days required for notices, determining amounts due to the association, collecting amounts due to the association before filing of a lawsuit, calculating votes required for a quorum or to approve an amendment, completing forms related to the management of the community association that have been created by statute, drafting meeting notices and agendas, calculating and preparing certificates of assessments and estoppel certificates, responding to requests for certificates of assessments and estoppel certificates, negotiating monetary or performance terms of a contract subject to approval by the association, drafting pre- arbitration demands, coordinating or performing maintenance for real or personal property and other related routine services involved in the operation of the community association, and complying with the association’s governing documents and requirements of law as necessary to perform such practices.
Management / Agent Duty - 468.4334 - This is a new section which clarifies that a community association manager is an agent of the community association. Requires the manager to discharge his or her duties loyally, skillfully and diligently and deal honestly and fairly and in good faith with the community.
Management Agreements – 468.4334 - Provides that the manager cannot charge “unreasonable or excessive fees.” Provides that a management contract may provide that the association indemnifies the manager and management firm for ordinary negligence resulting from the manager’s or management firm’s act or omission that is the result of instruction or direction of the community association. The indemnification, however may not cover any act or omission that violates a criminal law, derives an improper personal benefit, either directly or indirectly is grossly negligent or reckless or in bad faith with a malicious purpose or in a manner exhibiting wanton and willful disregard of human rights, safety and
property.