ANALYSIS HB 913 (ER) -- CONDO 3.0

CHAPTER I

CAM Regulation:  Line 579 – 793

 

The bill adds new requirements for  Community Association Managers (“CAM”) and community association management companies to provide greater protection for community association members by imposing enforcement and accountability of professional practice standards.

Section 1. Paragraph (h) is added to subsection (2) of section 468.432, Florida Statutes (Licensure of community association managers and community association management firms; exceptions), and subsection (3) is added to that section.

Paragraph (h) requires that:

·       A person who has had his or her CAM revoked may not have an indirect or direct ownership interest in, or be an employee, a partner, an officer, a director, or a trustee of a CAM  management firm during the 10-year period after the effective date of the revocation and is ineligible to reapply for certification or registration under this part for a period of 10 years after the effective date of a revocation.

·       A CAM must create and maintain an online  licensure account with the department on which the CAM  provides management services and identify each community association for which the CAM is the designated onsite CAM.

 

New subsection (3) requires that:

• An onsite  CAM is now required to update DBPR their licensure profile within 30 days of any change of required information.

• A community association firm must disclose all employed CAMs.

Section 2. Subsections (1) and (3) of section 468.4334, Florida Statutes,

(Professional practice standards; liability; community association manager requirements; return of records after termination of contract.) are amended:

 

Subsection (1)is amended to reflect:

• Under subsection (1)(a), it is no longer permissible for a CAM or a community association management firm to knowingly perform any act directed by the community association if such an act violates any state or federal law;

• Under subsection 1(b) If a CAM or a community association management firm has a contract with a community association that is subject to the milestone inspection requirements ins. 553.899,  F.S., or the structural integrity reserve study requirements in s. 718.112(2)(g) and s. 719.106(1)(k), F.S. must comply with those sections  as directed by the board.

Compliance statements in contracts between CAM managers or community association management firms and associations have been optional or inconsistent.   To resolve this issue, a new subsection 1(c) has been added to require such contracts to include a 12-point font legal compliance statement.   Improved enforcement power is given to an association since contracts without the 12-point font legal compliance statement are voidable by the association.  In addition, the bill provides that members of mandatory community associations now have the statutory protection that contracts cannot waive off professional CAM standards language.

Subsection 3 is amended to reflect:

• The bill is amended to provide greater inclusion and clarity by deleting the term “homeowners association” to “community association” to reflect all mandatory community associations.

• A CAM or the community association management must attend at least one meeting a year annually.

Amends s. 720.303(4)(b), Florida Statutes, providing that if an association is required to maintain official records on a website, it must also include a “mobile” application.

Section 3. Section 468.4335, Florida Statutes, (Conflicts of Interests) is amended to reflect:

• Under subparagraph (1)(a), CAMs or affiliated individuals must disclose any business dealings and compensation with associations.

• Under subparagraph (1)(b), compensation is defined as “any referral fee or other monetary benefit derived from a person (as defined ins. 1.01(3) which provides products or services to the association, and any ownership interests or profit-sharing arrangements with product or service providers recommended to or used by the association.”

• Under subparagraph (2), if an association receives and considers a bid that exceeds $2,500 to provide a good or service ( other than a CAM  or a community association management firm, including directors, officers, and persons with a financial interest in a community association must solicit multiple bids from other third-party providers of such goods or services.  However, this subsection does not apply to any activities or the provision of goods or services that are disclosed in the management services contract as a conflict of interest within the meaning of subsection (1).  Under subsection (3), notice for a  meeting at which the proposed activity will be considered by the board must include a description of the proposed activity, disclose the possible conflict of interest, and include a copy of all contracts and transactional documents related to the proposed activity.

• The disclosure of a possible conflict of interest must be entered into the written minutes of the meeting of approval of the contract, including a management contract between the community association and the community.

• Under subsection (4), the term “cancel”is deleted and substituted with the word “terminate.”

• In addition, a violation of s. 468.4335, Florida Statutes renders a contract voidable by the association.

• The association is liable only for services rendered until that time, and not for any termination fees.  However, the association must deliver a written notice terminating the contract.

Subsection  (5) is deleted in its entirety since the provisions have been amended in subsections (1)-(4)

LEGISLATIVE SESSION

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