LEGISLATIVE SESSION 2025

ANALYSIS OF BILL SB 368

SB 368 (SUMMARY)

Condominium And Homeowners’ Association Economic Crime, Fraud, And Corruption Investigation Pilot Program

GENERAL BILL by Senator Ileana Garcia

Last Action:   01/07/2025 filed in Senate

We need to support this bill. Though we have a long way to go on ensuring fairness for owners in mandatory associations, we are seeing progress, and this bill is a step in the right direction. Passage of this bill will benefit Members living in community mandatory associations.

The bill creates §16.0151, Florida Statutes, a pilot program entitled “Homeowners’ Association on Economic Crime, Fraud, and Corruption Investigation Pilot Program” within the Department of Legal Affairs. The pilot program is funded by the Division of Florida Condominiums, Timeshares, and Mobile Homes Trust Fund. The legal department is authorized to contract private entities to employ retired law enforcement officers with requisite expertise in financial fraud, to investigate condominium and homeowners’ association-related complaints.

The bill indicates that if a complaint submitted to the pilot program does not contain an allegation of economic crime, fraud, or corruption, the pilot program investigators must forward the complaint to the Division of Florida Condominiums, Timeshares, and Mobile Homes, which shall investigate such complaint pursuant to § 718.501, F.S. In addition, if the division receives complaints alleging economic crime, fraud or corruption, they must forward it to the Office of the Condominium and Homeowners’ Ombudsman.
 

In the event the department does not contract with a private entity, the department must hire a suitable number of retired law enforcement financial investigators, investigators with previous law enforcement experience, and clerical employees to staff the pilot program.

The bill defines “corruption” as “the act of an official or a fiduciary person who unlawfully and wrongfully uses his or her position to procure a benefit for himself or herself or for another person contrary to the duty and rights of others.”

The bill amends. § 718.501, F.S. The Office of the Condominium and Homeowners’ Ombudsman is responsible for association-related complaints by Members. The bill requires that the pilot program’s primary office be in Miami-Dade County.

The bill amends § 718.111, F.S. and requires the division to monitor condominium associations’ compliance with requirements on maintenance of certain insurance authorizing the division to levy fines and penalties for noncompliance or fidelity bonding of certain persons.

The bill proposes that a parcel owner has the right at any time to make a written request for a detailed accounting of all amounts due and payable from the parcel owner to the association, and the association has ten calendar days to reply after receiving such written request. Failure of the association to respond constitutes a waiver of any pending, violation, fine, or penalty.

The bill creates §718.13 F.S, requiring the division to establish a searchable, cloud-based database, effective as of July 1, 2027. The database will contain information on each Florida condominium association, with the division establishing rules and procedures the way an association is to provide such information. The database provides a user with the ability to search for the name by which condominium property is identified. Information on the base will include (a) names, e-mail addresses, and other contact information of officers and directors of the association; (b) whether or not the association is self-managed, or, if not self-managed, the contact information for LCAM who is responsible for management of the association; (c) the association’s governing documents, including, but not limited to, declarations, bylaws, and rules and any amendments thereto; (d) the association’s adopted annual budget, which includes (i) the amount and purpose of monthly assessments and (ii) the current or proposed special assessments in file format that must be compatible with the database; and (e) reserve studies on the funds in reserve accounts held by the association or any reports regarding the physical inspection of properties maintained by the association, including any structural integrity reserve studies conducted under § 718.112(2)(g).

The bill provides that within 30 days of any association changes, the association must notify the division of any change on matters related to the association.

The bill provides that expenses associated with the creation and administration of the database must be funded, in part, from the annual fee paid by associations pursuant to §.286.

The bill amends §718.5012, F.S. entitled “Ombudsman; powers and duties” and changing the title of “Office of the Condominium Ombudsman” to the “Office of the Condominium and Homeowners’ Ombudsman,” This allows members in a homeowners’ association governed by Chapter 720, F.S. to be on par with associations governed by Chapter 718, F.S.

 
The Ombudsman can (i) petition the court to appoint a receiver if the appointment of a receiver is in the best interests of the association or owners, (ii) issue subpoenas and conduct audits; and (iii) can void an election based on election

EFFECTIVE JULY 1, 2025