INCREASED POWERS FOR THE DBPR: A DOUBLE-EDGED SWORD
By
Rafael Aquino
Published July 24, 2024
The recent expansion of powers granted to the
Department of Business and Professional Regulation (DBPR) marks a
significant shift in the landscape of condominium governance in
Florida. While the new authority bestowed upon the DBPR aims to
address longstanding issues condominium owners face, it is crucial
to temper expectations with a dose of reality.
Historically, condominium owners who approached
the DBPR with complaints often received responses indicating that
the department lacked jurisdiction over their concerns. This
limitation was highlighted in legislative hearings where lawmakers
expressed shock at the DBPR's inability to assist condo owners
effectively. In response, the Florida Legislature passed a new law,
effective July 1st, which broadens the DBPR's jurisdiction
considerably.
The new law, encapsulated in Section 718.501 of
the Florida Statutes, grants the DBPR authority to investigate a
wide array of issues, including procedural aspects and records
related to financial matters, elections, procedural aspects of
meetings, disclosure of conflicts of interest, and the removal of
board directors or officers. This comprehensive power aims to ensure
that condominium associations operate transparently and in the best
interests of their members.
However, with great power comes great
responsibility. The real challenge lies in how the DBPR will manage
the influx of requests and complaints likely to follow this
expansion of authority. Simply having the power to address more
issues does not automatically translate into efficient and effective
handling. The increased expectations from condominium owners may
lead to a deluge of complaints, overwhelming the DBPR and leading to
dissatisfaction if the department cannot process and resolve issues
promptly.
It's essential to understand that while the new
law mandates the DBPR to refer cases involving fraud, theft,
embezzlement, or other criminal activities to local law enforcement,
this does not guarantee immediate or satisfactory resolutions for
all complaints. The effectiveness of these measures will depend
significantly on the DBPR's capacity to manage and prioritize cases,
as well as the efficiency of local law enforcement in handling
referred cases.
To illustrate the potential challenges, consider
the calls from potential accounts that want to work with Affinity
Management and board members alleging that the previous board stole
money. Often, after digging deeper into the issue, we find that it
is more a case of mismanagement or a lack of proper guidance rather
than actual theft. This is a significant difference from outright
allegations of theft. While it is crucial to report genuine issues,
it is also important to recognize that misinformation and incomplete
facts often fuel many complaints. How will the DBPR and law
enforcement manage these nuances?
It is imperative that the department operate with
a business-like approach to mitigate potential disappointments and
enhance the DBPR's efficiency. This includes focusing on frequently
arising issues and developing robust online solutions where
residents can upload relevant documents such as financials, notices,
and requests. By leveraging technology, the DBPR can streamline the
review process, ensuring that complaints are addressed
systematically and effectively.
While the expansion of the DBPR's powers is a
positive step towards accountable governance of condominium
associations, it is crucial to manage expectations realistically.
The actual test will be on the DBPR's ability to handle the
increased complaints without compromising service quality.
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