Article Courtesy of The Naples
Daily News
By Ilene Stackel
Published July 8, 2008
Though Gov. Charlie Crist vetoed legislation that
would have enabled homeowner associations to cut back on pool inspections,
he did approve a number of bills that amend laws governing condo,
homeowner and community associations.
In short, association bullies can no longer
terrorize a member.
Katzman Garfinkel law partner Donna Berger, who also
heads the Community Advocacy Network, a lobbying arm for the law firm’s
community association clients, explained changes that became law on July
1:
-- Amendments to laws governed by the Division of
Florida Condominiums, Timeshares and Mobile Homes (“division”) became
law last week, starting with a name change for hired, outside community
managers. Now, such a company will be called a Community Association
Management Firm. The division will also create and administer Regulatory
Council of Community Association Managers.
That group would recommend changes to community
association law and offer educational programs by the division.
-- Now a firm serving as a community association
management company must be properly licensed if it manages more than 10
units or has an association budget greater than $100,000. The firm must
designate one person from the management company to respond to all
division inquiries. Management companies will be subject to discipline if
they do not disclose financial interests in outside businesses that get
work from — or sell products to — the association.
-- The Condo Act requires association officers and
directors — who usually own units — to financially and legally act in
the best interest of the entire association. Directors are limited to
one-year terms unless the bylaws provide for staggered terms not to exceed
two years; and only if the majority of owners approve the staggered terms.
-- If the condominium consists of more than 10
units, co-owners may not serve as members of the board at the same time;
any unit owners desiring to run for the board must submit a signed form
provided by the division which certifies that he or she has read and
understands to the best of their ability the governing documents of the
association, condominium act and administrative rules.
This form must be sent out with the 60-day first
notice of the annual meeting and election and must be returned by the
candidates not less than 35 days prior to the election.
-- Any board member delinquent for more than 90 days
in assessments is ineligible for board membership and is automatically
removed from office; any convicted felon who has not had his or her civil
rights restored for at least five years before the date of the board
election is ineligible for board candidacy; any director or officer
charged with felony theft or embezzlement of association funds is
automatically removed from office and shall be reinstated for the
remainder of the term only if that person is found not guilty.
-- The following emergency powers kick in only if
the governor declares a state of emergency: The ability to conduct
meetings without satisfying the notice requirements; cancel and reschedule
meetings; name assistant directors or officers; relocate the principal
office of the association; mitigate further damages; use reserve funds
without a membership vote; declare building and/or units uninhabitable and
order a mandatory evacuation (and would not be held liable if owners or
occupants choose to stay;) contract on behalf of unit owners; levy special
assessments without a vote of the membership; borrow money to fund
emergency repairs.
-- Any officer or director who has a financial
interest in any company doing business with the association must disclose
that relationship — noting in the minutes of association’s records. A
board member with a disclosed financial interests may be counted for
quorum purposes but may not vote on the contract ratification.
-- Accounting records cannot be intentionally
defaced or destroyed, and if so, the offender faces recall or removal as
an officer or director, and could be subject to civil penalties.
-- A developer turnover inspection report is now an
official association record. Such records must be retained for at least
seven years, and must be located within 45 miles of the condominium, or in
the county where the condominium is located.
-- Unit owners’ social security numbers, driver
license numbers or credit card numbers are exempt from inspection
requests.
-- Developers must prepare a Turnover Inspection
Report that is sealed by an architect or engineer, including analysis for
roof, structure, electrical systems, plumbing, and other specific items
that can be paid for out of association financial reserves.
-- A majority of the unit owners may authorize the
board to implement a “Mandatory Hurricane Shutter Program” that would
enable the association to install shutters or other hurricane protection
that comply with the applicable building code. Those costs shall be
considered a common expense of the condominium. Previously installed
shutters would not be removed by the association if those protections are
compliant with existing building codes. However, any unit owner that has
already installed hurricane shutters will receive credit for the assessed
costs of the association’s common expenses.
-- Financial reporting requirements now must include
specific disclosure regarding reserves and whether such funds are
sufficient to prevent a special assessment; cash receipts and expenditures
reports may be used instead of an annual audited financial report if a
majority of the membership approves at a properly noticed meeting.
-- Any unit owned by the association has no voting
rights; all member meetings must be held within 45 miles of the
condominium; unit owners may display on the mantle or frame of the
unit’s door a religious object not to exceed 3 inches wide, 6 inches
high, and 1.5 Inches deep.
-- Now prohibited: lawsuit where members are sued by
individuals, business entities, or government as a result of that
owner’s appearance and presentation before a governmental body on
matters related to the association. That means that if you own a condo,
don’t like what the association or a contractor is doing and complain,
they cannot turn around and sue you.
Any member sued in such a manner may move to
dismiss, and if successful, the court may award actual damages, and may
award triple damages along with attorney’s fees. In addition,
association funds may not be used to prosecute that kind of lawsuit
against an owner.
-- All parcel or unit owners may display one
portable, removable official U.S. or Florida flag; and one portable,
removal official Army, Navy, Air Force, Marine Corps, Coast Guard or
Prisoner of War-Missing in Action flag. A freestanding flagpole can not be
taller than 20 feet.
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