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NEW LAWS 2017
By
Eric Glazer, Esq.
Published May 8, 2017
What a year it has been for condominium
legislation! Listed below please find a summary of the
condominium laws as now amended:
HB 1237
718.111 ---- CRIMINAL CONDUCT
Forgery of a ballot envelope or voting certificate used in a
condominium association election is a felony, the theft or
embezzlement of funds of a condominium association is punishable
as provided in s. 812.014, and the destruction of or the refusal
to allow inspection or copying of an official record of a
condominium association that is accessible to unit owners within
the time periods required by general law in furtherance of any
crime is punishable as tampering with physical evidence as
provided in s. 918.13 or as obstruction of justice as provided
in chapter 843.
An officer or director charged by information or indictment with
a crime referenced in this paragraph must be removed from
office, and the vacancy shall be filled as provided in s.
718.112(2)(d)2. until the end of the officer's or director's
period of suspension or the end of his or her term of office,
whichever occurs first. If a criminal charge is pending against
the officer or director, he or she may not be appointed or
elected to a position as an officer or a director of any
association and may not have access to the official records of
any association, except pursuant to a court order. However, if
the charges are resolved without a finding of guilt, the officer
or director must be reinstated for the remainder of his or her
term of office, if any.
718.111 --- THE ATTORNEY
An association may not hire an attorney who represents the
management company of the association.
718.111 --- FORECLOSURE OF THE ASSOCIATION’S LIEN
A board member, manager, or management company may not purchase
a unit at a foreclosure sale resulting from the association's
foreclosure of its lien for unpaid assessments or take title by
deed in lieu of foreclosure.
718.111 – RIGHT OF ACCESS TO RECORDS
A renter of a unit has a right to inspect and copy the
association's bylaws and rules.
718.111 --- REQUIREMENT TO PLACE OFFICIAL RECORDS ON A
WEBSITE
By July 1, 2018, an association with 150 or more units which
does not manage timeshare units shall post digital copies of the
documents specified in subparagraph 2. on its website.
The association's website must be: An independent website or web
portal wholly owned and by the association; otherwise obtains
the right to operate a web page, subpage, web portal, or
collection of subpages or web portals dedicated to the
association's activities and on which required notices, records,
and documents may be posted by the association.
The association's website must be accessible through the
Internet and must contain a subpage, web portal, or other
protected electronic location that is inaccessible to the
general public and accessible only to unit owners and employees
of the association.
Upon a unit owner's written request, the association must
provide the unit owner with a username and password and access
to the protected sections of the association's website that
contain any notices, records, or documents that must be
electronically provided.
A current copy of the official records must be posted in digital
format on the association's website: except for those records
that must be kept confidential.
In addition: The notice of any unit owner meeting and the agenda
for the annual meeting must be posted no later than 14 days
before the meeting. The notice must be posted in plain view on
the front page of the website, or on a separate subpage of the
website labeled "Notices" which is conspicuously visible and
linked from the front page. The association must also post on
its website any document to be considered and voted on by the
owners during the meeting or any document listed on the agenda
at least 7 days before the meeting at which the document or the
information within the document will be considered.
Notice of any board meeting, the agenda, and any other document
required for the annual meeting must be posted no later than the
date required for notice pursuant to s. 718.112(2)(c).
The association shall ensure that the information and records
that are required to be kept confidential are not posted.
718.111 – FINANCIAL REPORTING
The following statutory provision has been removed for both
condos and HOAs: An association that operates fewer than 50
units, regardless of the association's annual revenues, shall
prepare a report of cash receipts and expenditures in lieu of
financial statements required by paragraph (a).
718.117 – CONDO TERMINATION
If 5 percent or more of the total voting interests of the
condominium reject a plan of termination, a subsequent plan of
termination pursuant to this subsection may not be considered
for 24 months after the date of the rejection.
718.707 BULK BUYERS – BULK ASSIGNEES
The statute no longer sunsets on July 1st, 2018.
718.71 FINANCIAL REPORTING
An association shall provide an annual report to the department
containing the names of all of the financial institutions with
which it maintains accounts, and a copy of such report may be
obtained from the department upon written request of any
association member.
718.111 DEBIT CARDS
An association and its officers, directors, employees, and
agents may not use a debit card issued in the name of the
association, or billed directly to the association, for the
payment of any association expense.
Use of a debit card issued in the name of the association, or
billed directly to the association, for any expense that is not
a lawful obligation of the association may be prosecuted as
credit card fraud pursuant to s. 817.61.
718.112 – TERM LIMITS
A board member may not serve more than four consecutive 2-year
terms, unless approved by an affirmative vote of two-thirds of
the total voting interests of the association or unless there
are not enough eligible candidates to fill the vacancies on the
board at the time of the vacancy.
718.112 - RECALLS
Recalls --- are now effective immediately. NO DUE PROCESS
PROVIDED. Although language has been left in the statute that
still apparently allows the Board to file for recall
arbitration. Very confusing and needs to be fixed next year.
718.112 - SERVICE PROVIDERS; CONFLICTS OF INTEREST
An association, which is not a timeshare condominium
association, may not employ or contract with any service
provider that is owned or operated by a board member or with any
person who has a financial relationship with a board member or
officer, or a relative within the third degree of consanguinity
by blood or marriage of a board member or officer. This
paragraph does not apply to a service provider in which a board
member or officer, or a relative within the third degree of
consanguinity by blood or marriage of a board member or officer,
owns less than 1 percent of the equity shares.
718.1255 - ARBITRATION
The state may now employ private arbitrators to hear your cases.
The arbitrator must conduct a hearing within thirty days and
then enter an order within 30 days after the hearing.
718.111 – PURCHASE OF UNITS AT FORECLOSURE SALE
A party contracting to provide maintenance or management
services to an association managing a residential condominium
after transfer of control of the association, as provided in s.
718.301, which is not a timeshare condominium association, or an
officer or board member of such party, may not purchase a unit
at a foreclosure sale resulting from the association's
foreclosure of association lien for unpaid assessments or take a
deed in lieu of foreclosure. If 50 percent or more of the units
in the condominium are owned by a party contracting to provide
maintenance or management services to an association managing a
residential condominium after transfer of control of the
association, as provided in s. 718.301, which is not a timeshare
condominium association, or by an officer or board member of
such party, the contract with the party providing maintenance or
management services may be cancelled by a majority vote of the
unit owners other than the contracting party or an officer or
board member of such party.
718.3027 CONFLICTS OF INTEREST
(1) Directors and officers of a board of an association that is
not a timeshare condominium association, and the relatives of
such directors and officers, must disclose to the board any
activity that may reasonably be construed to be a conflict of
interest. A rebuttable presumption of a conflict of interest
exists if any of the following occurs without prior notice, as
required in subsection (4):
(a) A director or an officer, or a relative of a director or an
officer, enters into a contract for goods or services with the
association.
(b) A director or an officer, or a relative of a director or an
officer, holds an interest in a corporation, limited liability
corporation, partnership, limited liability partnership, or
other business entity that conducts business with the
association or proposes to enter into a contract or other
transaction with the association.
(2) If a director or an officer, or a relative of a director or
an officer, proposes to engage in an activity that is a conflict
of interest, as described in subsection (1), the proposed
activity must be listed on, and all contracts and transactional
documents related to the proposed activity must be attached to,
the meeting agenda. If the board votes against the proposed
activity, the director or officer, or the relative of the
director or officer, must notify the board in writing of his or
her intention not to pursue the proposed activity or to withdraw
from office. If the board finds that an officer or a director
has violated this subsection, the officer or director shall be
deemed removed from office. The vacancy shall be filled
according to general law.
(3) A director or an officer, or a relative of a director or an
officer, who is a party to, or has an interest in, an activity
that is a possible conflict of interest, as described in
subsection (1), may attend the meeting at which the activity is
considered by the board and is authorized to make a presentation
to the board regarding the activity. After the presentation, the
director or officer, or the relative of the director or officer,
must leave the meeting during the discussion of, and the vote
on, the activity. A director or an officer who is a party to, or
has an interest in, the activity must recuse himself or herself
from the vote.
(4) A contract entered into between a director or an officer, or
a relative of a director or an officer, and the association,
which is not a timeshare condominium association, that has not
been properly disclosed as a conflict of interest or potential
conflict of interest as required by s. 718.111(12)(g) is
voidable and terminates upon the filing of a written notice
terminating the contract with the board of directors which
contains the consent of at least 20 percent of the voting
interests of the association.
(5) As used in this section, the term "relative" means a
relative within the third degree of consanguinity by blood or
marriage.
HB 653
Section 633.2225, Florida Statutes, is
created to read:
CONDOMINIUM AND COOPERATIVE BUILDINGS WITHOUT SPRINKLER
SYSTEMS; NOTICE REQUIREMENTS; ENFORCEMENT.—
(1) The board of a condominium or cooperative association that
operates a building of three stories or more that has not
installed a sprinkler system in the common areas of the building
shall mark the building with a sign or symbol approved by the
State Fire Marshal in a manner sufficient to warn persons
conducting fire control and other emergency operations of the
lack of a sprinkler system in the common areas.
(2) The State Fire Marshal shall:
(a) Ensure that the dimensions and placement of the sign or
symbol do not diminish the aesthetic value of the building and
(b) Adopt rules necessary to implement the provisions of this
section, including, but not limited to:
1. The dimensions and color of such sign or symbol.
2. The time within which the condominium or cooperative
buildings without sprinkler systems shall be marked as required
by this section.
3. The location on each condominium or cooperative building
without a sprinkler system where such sign or symbol must be
posted.
(3) The State Fire Marshal, and local fire officials in
accordance with s. 633.118, shall enforce this section. An
association that fails to comply with the requirements of this
section is subject to penalties as provided in s. 633.228.
Notice of any meeting in which a regular or special assessment
against unit owners is to be considered must specifically state
that assessments will be considered and provide the estimated
amount and a description of the purposes for such assessments.
718.112 – RETROFITTING
An association, or unit owner is not obligated to retrofit the
common elements, association property, or units of a residential
condominium with a fire sprinkler system or other engineered
lifesafety system in a building that is 75 feet or less in
height. There is no obligation to retrofit for a building
greater than 75 feet in height, calculated from the lowest level
of fire department vehicle access to the floor of the highest
occupiable if the unit owners have voted to forego such
retrofitting by the affirmative vote of two-thirds of
all voting interests in the affected condominium. There is no
requirement that owners in condominiums of 75 feet or less
conduct an opt-out vote and such condominiums are exempt from
fire sprinkler or other engineered lifesafety retrofitting.
The local authority having jurisdiction may not require
completion of retrofitting with a fire sprinkler system or other
engineered lifesafety system before January 1, 2022. By December
31,2018 a residential condominium association that operates a
residential condominium that is not in compliance with the
requirements for a fire sprinkler system or other engineered
lifesafety system and has not voted to forego retrofitting of
such a system must initiate an application for a building permit
for the required installation with the local government having
jurisdiction demonstrating that the association will become
compliant by December 31, 2021.
718.112 – 720.303 – NOTICES OF MEETINGS
Condos and HOAs: In addition to any of the authorized means of
providing notice of a meeting of the board, the association may,
by rule, adopt a procedure for conspicuously posting the meeting
notice and the agenda on a website serving the condominium
association for at least the minimum period of time for which a
notice of a meeting is also required to be physically posted on
the condominium property.
Any rule adopted shall, in addition to other matters, include a
requirement that the association send an electronic notice in
the same manner as required for a notice for a meeting of the
members, which must include a hypertext link to the website
where the notice is posted, to unit owners whose e-mail
addresses are included in the association's official records.
718.113 - MATERIAL ALTERATIONS
If the declaration as originally recorded or as amended under
the procedures provided therein does not specify the procedure
for approval of material alterations or substantial additions,
75 percent of the total voting interests of the association must
approve the alterations or additions before the material
alterations or substantial additions are commenced.
720.306 - HOA ELECTIONS
If an election is not required because there are either an equal
number or fewer qualified candidates than vacancies exist, and
if nominations from the floor are not required pursuant to this
section or the bylaws, write-in nominations are not permitted
and such candidates shall commence service on the board of
directors, regardless of whether a quorum is attained at the
annual meeting.
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About
HOA & Condo Blog
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Eric Glazer graduated from
the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for more than 2
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decades and is the owner of Glazer
and Associates, P.A. a seven attorney law firm with offices in
Fort Lauderdale and Orlando and satellite offices in Naples,
Fort Myers and Tampa.
Since 2009, Eric has been the host
of Condo Craze and HOAs, a weekly one hour radio show that airs
at noon each Sunday on 850 WFTL.
See:
www.condocrazeandhoas.com.
He is the first attorney in the
State of Florida that designed a course that certifies
condominium residents as eligible to serve on a condominium
Board of Directors and has now certified more than 10,000
Floridians all across the state. He is certified as a Circuit
Court Mediator by The Florida Supreme Court and has mediated
dozens of disputes between associations and unit owners. Eric
also devotes significant time to advancing legislation in the
best interest of Florida community association members.
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