Wayside is a small, ten-home, self-managed homeowners’
association located in Seminole County. Pecchia and Porter
both respectively own homes within Wayside. As members of
the association, Pecchia and Porter were concerned that
Wayside was failing to adequately maintain the association's
common elements, and that it also was not enforcing
violations of the CCRs against homeowners. As a result, they
requested the official association records from Wayside
pursuant to section 720.303(5), including insurance policies
for the prior two years, and records reflecting maintenance
expenditures and upkeep of individual lots and common areas.
In November of 2019, through counsel, Pecchia and Porter
submitted a formal records request via certified mail to
Wayside pursuant to section 720.303(5), requesting that
Wayside make the official association records which it was
required to maintain in accordance with section 720.303(4)
available for inspection within ten days. Wayside signed for
the certified letter on November 4, 2019, which meant the
deadline for inspection under section 720.303(5) was
November 19, 2019. Pecchia and Porter did not receive a
response by the statutory deadline, and their counsel again
reached out to Wayside on November 22, 2019. Pecchia's and
Porter's counsel then exchanged some emails with Wayside's
secretary regarding the manner and date of the inspection.
On December 13, 2019, Wayside responded by providing
photocopies of some of the requested documents to Pecchia's
and Porter's counsel; however, numerous requested documents
required to be kept under section 720.303(4) were still
missing. Pecchia and Porter submitted a renewed request for
the documents on January 13, 2020.
The parties attempted to negotiate the issue over the
documents for the next couple of months with no resolution.
Ultimately, Pecchia and Porter filed a verified complaint
for injunctive relief against Wayside. At the conclusion of
the trial, the court denied Pecchia's and Porter's request
for injunctive relief as to the requested records and
documents. In doing so, the court found that Wayside had
“provided sufficient documents in response to the
plaintiffs’ request” and that the issue was now moot. The
court ruled that bank statements and cancelled checks are
not included in the records required to be maintained. Thus,
the court found that Wayside had sufficiently complied with
the statutory requirements of sections 720.303(4) and (5).
Finally, the court ruled that although the requested
documents had not been provided within the ten-day statutory
time limit, Wayside was not in violation of the deadline
because “sufficient” documents were ultimately provided.
On Appeal
The appeals court held that the trial court erred in its
interpretation of section 720.303 when it ruled that Wayside
had sufficiently complied with the requirements of sections
720.303(4) and (5). The court held that the repeated usage
of the word “shall” in sections 720.303(4) and (5) signifies
that there is no statutory flexibility in an association's
obligations to maintain the records provided under section
720.303(4) and to permit inspection in conformity with
section 720.303(5). Thus, the use of word “shall” in the
statute means that an association is not afforded discretion
in determining which documents to maintain for the
inspection of its members or to provide to its members, nor
is the ten-day period discretionary. These obligations are
clearly mandatory under the statute.
The Insurance Policies
The Appeals Court held that Section 720.303(4)(h) expressly
provides that the association “shall maintain” as its
official records “all of the association's insurance
policies or a copy thereof, which policies must be retained
for at least 7 years.” As such, under section 720.303(5),
they should have been made available or provided to Pecchia
and Porter. Since these policies were not provided or made
available, the trial court erred and this matter was not
moot. Thus, the trial court should have entered an
injunction requiring Wayside to provide the requested
insurance policies.
The Bank Statements
Pecchia and Porter argue on appeal that they were entitled
under sections 720.303(4) and 720.303(5) to any canceled
checks and bank statements showing Wayside's payments for
repairs and maintenance on the association common property.
The Appels Court held that Section 720.303(4)(j) requires
the association to maintain “financial and accounting
records.” The financial and accounting records must include:
1. Accurate, itemized, and detailed records of all receipts
and expenditures.
...
3. All tax returns, financial statements, and financial
reports of the association.
4. Any other records that identify, measure, record, or
communicate financial information.
§ 720.303(4)(j) 1., 3., & 4., Fla. Stat. (2019).
The Appeals Court held that under this section, bank
statements would be included in the financial and accounting
records which a homeowners’ association is required to
maintain. Bank statements could be included in the
definition of “[a]ccurate, itemized, and detailed records of
all receipts and expenditures” under section 720.303(4)(j)
1. Specifically, though, under 720.303(4)(j)3., bank
statements fall within the ambit of “financial statement[s],”
and per 720.303(4)(j)4., they clearly constitute “records
that identify, measure, record, or communicate financial
information.” Thus, the financial and accounting records
required to be kept under section 720.303(4) must include
the association's bank statements. Because section
720.303(5) provides for the homeowner's right to inspect all
records required to be maintained under section 720.303(4),
Pecchia and Porter were entitled to request and inspect
Wayside's bank statements.
Pecchia v. Wayside Estates Home Owners Association, Inc.,
388 So.3d 1136 (Fla.App. 5 Dist., 2024)
