Florida Condo Reforms

On May 31, 2024, Florida Governor Ron DeSantis signed into law two new bills, including HB 1021 and 1203, which amends several Florida Statutes concerning condominium, homeowner, and community associations, as well as the obligations of their managers. This new legislation is the latest attempt by the State to curb abuses of community association governance and address common complaints raised by association members throughout Florida. These changes to the laws are significant and will impact Homeowners’ Associations and Condominium Associations throughout the State.

Unless otherwise specifically noted in the new statute, the effective date of these changes will be July 1, 2024. The most notable new rules effectuated by HB 1203 include the following changes below.

As to Homeowners’ Associations governed by § 720, et seq.

• Stat. § 720.303(b)(1) is amended to provide that by 01/01/2025, an association with 100 or more parcels must make a specific list of official records available to its members on its website or through a mobile device application.
  • The list includes standard records such as the articles of incorporation, bylaws, declaration of covenants, current rules, and budget information.
  • While meeting minutes and notices are standard records, the statutory change now also requires that notices of meetings and agendas for the meeting, as required under 720.306, be posted at least 14 days prior to such meeting. The meeting information has to be placed in plain view of the homepage of the website or mobile app, or in a separate tab which is “conspicuously visible and linked from the homepage.”
    • Furthermore, the Association will have to include any documents to be considered on and voted on during the meeting, posted at least 7 days prior to the meeting itself.
  • The webpage or mobile app must include a subpage or other protected area that is inaccessible to the general public, and provide parcel owners with usernames and passwords for the access of to protected sections.
  • Furthermore, the statute sets forth that the Association “shall ensure” that protected records and information that is described within 720.303(5)(g) are not posted on the website or application.
    • If such protected information is published, it must be redacted first.
    • If such protected information is posted anyways in violation of the statute, the Association or its authorized agent are not liable unless the disclosure was made with “a knowing or intentional disregard of the protected or restricted nature of such information.”
  • It appears under 720.303(4)(c) that these online records do not need to be made permanently available, as the Association is allowed to “adopt written rules governing the method or policy by which the official records of the association are to be retained and the time period such records must be retained pursuant to paragraph (a). Such information must be available to the parcel owners through the association’s website or application.”

• Under Fla. Stat. § 720.303(5), the statute now carries criminal penalties for violation records request requirements.
  • It is now a 2^nd degree misdemeanor for any director, member, or manager to knowingly, willfully, and repeatedly violate the record keeping obligations of the association, under 720.303(5)(d).
    • “Repeatedly” is defined as two or more violations within a 12-month period.
  • It is now be a 1^st degree misdemeanor for any person to knowingly and intentionally deface or destroy an association’s accounting records, or knowingly or intentionally failing to create or maintain accounting records required to be created or maintained with the intent of causing harm to the association or one or more of its members. § 720.303(5)(e).
  • It is now a 3^rd degree felony to willfully and knowingly refuse to release or produce association records with the intent to avoid or escape detection, arrest, trial, or punishment for the commission of a crime, or to assist another person with such avoidance or escape. § 720.303(5)(f).

• Stat. § 720.303(13) contains a whole new restriction on debit cards.
  • Associations, including their officers, directors, employees, and agents, must not use debit cards issued in the name of the association for the payment of any association expenses. To violate this provision is considered theft.

• Stat. 720.303(14) contains new obligations on providing an accounting to parcel owners that can affect the Association’s ability to collect overdue fines.
  • If a possible owner makes a written request for a detailed accounting of any amounts allegedly owed to the association, the board must provide such information within 15 business days after the receipt of the written request.
  • A unit owner cannot make more than one request per 90 days.
  • Failure of the Association to respond within 15 business days constitutes a complete waiver of any outstanding fines which are more than 30 days past due, and for which the Association has not given prior written notice of the imposition of the fine.

• Stat. § 720.3033 is amended to provide that newly elected or appointed directors must complete department-approved education within 90 days after being elected or appointed and they must complete continuing education at least every 4-8 years depending on the number of parcels in the community. Additionally, it is now a 3^rd degree felony for an officer, director, or manager to solicit, accept, or offer a kickback.

• Furthermore, Fla. Stat. § 720.3035(1)(b), now limits an Association’s architectural control, even if the restriction is passed through a duly made covenant, rule, or guideline. The Association cannot enforce any covenant, rule, or guideline for either interior changes or HVAC systems that can’t be seen from the parcel’s frontage, a neighboring parcel, common area, or golf course.

• Stat. § 720.3035(4)(a) will also now require association architectural review committees to specifically tell owners the rule or covenant on which they are relying when denying a request or application.

• Stat. § 720.3075 will provide that an association’s Governing Documents may not prohibit a property owner, tenant, or guest from parking his or her personal vehicle in the owner’s driveway or in any other area at which that person has a right to park as governed by state, county, and municipal regulations.

As to Condominium Associations governed by § 718, et seq., the most notable new rules effectuated by HB 1021 include the following changes below.

• Stat. § 718.111(12) was similarly amended to Fla. Stat. § 720.303, and now includes various penalties—including criminal charges—for knowing, willful, and repeated violations of the statute for records requests. It also includes a whole new obligation on an Association to create a checklist while responding to records requests.
  • Within Fla. Stat. 718.111(12)(b), the statutory changes require official records be maintained in an organized manner. If records are lost, destroyed, or otherwise unavailable, the Association now has the obligation to “obtain and recover those records as is reasonably possible.”
  • Within 718.111(12)(c)(1)(a), if the records sought are available on the Association’s website, or are available for download through a mobile app, the association may fulfil its obligations in a records request by instructing the Condo Member to review the website or the mobile app.
  • Furthermore, within 718.111(12)(c)(1)(b), the Association has an affirmative obligation to generate checklists accompanying records requests. These checklists must indicate both (1) the documents/records made available for inspection; and (2) the documents/records that were not made available for inspection.
    • By creating this checklist, the Association then has the benefit of a rebuttable presumption that it complied with its checklist obligations.
    • The Association must then maintain this checklist for seven years.

• Stat. § 718.1224 is now includes a prohibition on an association fining, discriminatorily raising a unit owner’s assessments, discriminatorily decreasing a unit owner’s services, or bringing or threatening to bring a SLAPP suit when:
  • A unit owner, in good faith, complains to a governmental agency of a suspected violation applicable to the condominium;
  • A unit owner organizes, encourages, or participates in the organization;
  • The unit owner submits information or files a complaint alleging criminal violations or violations of this Chapter or the rules of any government agency;
  • The unit owner exercises their rights under the Condominium Act;
  • The unit owner complains to the association or its representatives for the failure to comply with the Condominium Act or Chapter 617; or
  • The unit owner has made public statements critical of the operation or management of the association.

As to Licensed Community Association Managers, usually Property Managers, Fla. Stat. § 468.4334 now provides for the following requirements on CAMs:

• They must attend in person at least one member meeting or board meeting of the association annually;
• They must provide the members of the association with their name, contact information, hours of availability, and a summary of their duties. This information must also be posted on the association’s website. Any changes to this information must be updated to the members within 14 business days.
• They must provide any member with a copy of their management contract upon request. Likewise, a copy of the management contract must be kept with the association’s official records.