Florida has introduced new legislation affecting condominium associations, with many changes already in effect or starting on July 1, 2024. These laws address various operational aspects, including:
Disclosure of conflicts of interest
Criminal violations for certain actions by board members Mandates on board meetings
Education requirements for board members
Standards for elections and voting
Installation requirements for hurricane protection
This summary aims to help our readers understand the 2024 legal changes made by the Florida legislature to the Condominium Act, Chapter 718 of the Florida Statutes, affecting condominium associations. It is important to distinguish these updates from the laws and regulations governing Homeowners’ Associations (HOAs), which are covered under Chapter 720.
Key Provisions
A. Director Education Requirements
1. Educational Curriculum:
Directors must complete a 4-hour course within 90 days of election, valid for seven years.
2. Continuing Education:
A one-hour annual course is required.
3. Existing Board Directors:
Must complete the course by June 30, 2025.
4. Certification:
Directors must certify they have read the governing documents and will uphold them.
B. Condominium Board Meetings
1. Quarterly Meetings:
Minimum requirement for residential condominiums with more than 10 units.
2. Member Participation:
Agendas must allow members to ask questions and speak on agenda items.
3. Meeting Notices:
Must specify when assessments will be considered, including estimated costs and purposes.
4. Contract Approval:
Copies of contracts must be provided with meeting notices and available for inspection.
C. Voting Rights
1. Electronic Voting:
Boards must honor unit owners' requests for electronic voting unless opted out.
2. Notification of Voting Suspension:
At least 90 days’ notice required if voting rights are to be suspended for nonpayment of a fee or other monetary obligation.
D. Official Records
1. Email Addresses:
Recognized as official records if electronic notice consent is given or if the unit owner authorizes sharing and does not opt-out.
2. Confidentiality:
Associations must ensure email addresses are used solely for business operations and not shared with third parties, with liability only for intentional or knowing breaches.
3. Additional Official Records:
Invoices, receipts, transaction slips, building permits, and board member education certificates.
4. Records Management:
Associations must maintain records orderly for inspection and make a good faith eort to recover lost or destroyed records.
5. Response to Records Requests:
Associations must provide a checklist of records supplied and those not available, maintained for seven years.
6. Electronic Records Access:
Associations can fulfill records requests by directing owners to online platforms.
7. Investigative Access:
The Division may request login access to an association's website to investigate complaints.
E. Director or Officer Offenses
1. Removal from Office:
Mandatory for directors charged with crimes such as ballot forgery, theft, destruction of records, obstruction of justice, and fraudulent voting activities.
2. Criminal Penalties:
Varying degrees of misdemeanors and felonies for actions like destroying accounting records, fraudulent voting, and refusing to produce records.
F. Hurricane Protections
1. Specifications:
Required adoption of hurricane protection specifications for buildings.
2. Responsibility:
Clarification on whether unit owners or associations are responsible for hurricane protection.
3. Approval and Costs:
Uniform procedures for approval and cost assessments for hurricane protection.
G. Structural Integrity
1. Associations must notify unit owners within 45 days of the Structural Integrity Reserve Study (SIRS) completion, with electronic notification allowed if consented to.
2. Notifications must also be sent to the Division of Florida Condominiums within 45 days.
3. By January 1, 2025, the Division will create a database of associations that have completed the SIRS.
4. From December 31, 2024, the division’s annual report will include a list of these associations.
5. Inspections are NOT required for single, two, three, and now four-family dwellings with three or fewer stories.
H. Additional Provisions
1. Debit Card Usage:
Unauthorized use of a debit card in the association’s name is considered theft, leading to removal from office.
2. Protection for Owners:
Prohibits retaliation against owners for complaints or public statements critical of the association.
3. Reserve Funding:
Associations can temporarily pause or reduce reserve funding if a natural emergency renders the building uninhabitable, resuming contributions once habitable.
4. Community Association Management Transition:
CAMs must return all records within 20 business days of service termination or request, with penalties for non-compliance.
Conclusion
The 2024 legislation impacting Florida condominium associations introduces significant changes aimed at enhancing transparency, accountability, and safety. Key provisions include stringent education requirements for board members, stricter regulations on board meetings and voting procedures, enhanced record-keeping and disclosure practices, and mandatory hurricane protection measures. The new laws also impose criminal penalties for misconduct by board members and establish protocols for maintaining structural integrity. These changes, effective from July 1, 2024, are designed to improve the governance and operational standards of condominium associations across Florida.