Bill Summary By
CCFJ Director for Legislative Affairs
Milena Macias, Esq.
 

ANALYSIS OF BILL SB 426

LEGISLATIVE SESSION 2024

SB 426 (SUMMARY):

GENERAL BILL by Senator Ileana Garcia

Community Associations; Creating the Condominium Fraud Investigation Pilot Program within the Department of Legal Affairs in the Office of the Attorney General; authorizing the department to contract with a private entity to achieve the program’s purpose; requiring that the pilot program be funded from the Division of Florida Condominiums, Timeshares, and Mobile Homes Trust Fund; creating the Office of the Homeowners’ Association Ombudsman within the Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation, etc.

Effective Date: 7/1/2024

We need to support this bill. It is vital and is a step forward to protect the interests of owners in mandatory community associations.

 Highlights include:

FLORIDA STATUTE 718 (CONDOMINIUM)

·       New section s. 16.0151 F.S. to take certain measures to detect and combat fraud, by creating the Condominium Fraud Investigation Pilot Program within the Department in the Office of the Attorney General (“Department”), to allow the Department to contract with a private entities to achieve the program’s purpose; as well as specified personnel;

·       To allows complaints relating to fraud or corruption to be submitted to the Office of the Condominium Ombudsman, and to have the Ombudsman to review such complaint forward to the Department for further investigation;

·       Funding for the pilot program will come from the Division of Florida Condominiums, Timeshares and Mobile Homes Trust Fund, as well as to amend 2.15.22 F.S. to exempt Division of Florida Condominiums, Timeshares and Mobile Homes Trust Fund from contributing the General Revenue Fund;

·       Amending s. 718.111, F.S. to require the division to monitor condominium associations’ compliance with insurance or fidelity requirements on maintenance of insurance or fidelity bonding of certain persons and to issue and allow the division to impose fines and penalties on such compliance issues;

·       Creates s. 718.13, F.S. to require the Division to establish a searchable cloud-based database by July 1, 2026, which contains specified information including:

(a)        The names and email addresses of board members, whether an association is self-managed or not, and including Part VIII of chapter 468 for the responsibility of management of the association.

(b)        Association must provide (i)  governing documents, to members (and new purchasers), copies of an association’s annual budget; studies regarding reserve funds studies;

(c)        Require that associations must notify the Division of changes within 30 days of changes, and that part of the funding comes from  each condominium; and

(d)        includes a sunset provisions on October 2, 2029 of repeal of the pilot program unless it is reviewed saved by the Legislature.

·       Amends 718.5012, F.S.to allow the Ombudsman to power to appoint an election monitor at the request of 15% or six owners (whichever is greater) rather than DBPR, as well as the ability to void if a violation of the chapter has occurred as a result of the election

·       To petition the court to appoint a receiver if it is in the best interest of the association or owners;

·       To issue subpoenas and conduct audits to assist with the purposes of the Condominium Fraud Pilot Program.

FLORIDA STATUTE 720 (HOMEOWNERS)

·        New section  s. 720.319, F.S. creating the Office of the Homeowners Association Ombudsman within the Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation;

·      providing for funding of the office; directing the Governor to appoint the ombudsman; requiring that the ombudsman be an attorney admitted to practice;

·        prohibiting the ombudsman, officers, or full-time employees of the office from holding certain positions, engaging in certain activities;

·        authorizing  the ombudsman to establish branch offices upon the concurrence of the Governor, which will spell out the duties of the Ombudsman.

EFFECTIVE JULY 1, 2024

ORIGINALLY  FILED VERSION OF SB 426