Navigating the New Landscape: Legislative Changes to Florida’s Community Association Management
Community associations play a crucial role in Florida’s residential landscape, providing essential governance and support for diverse living environments. With a significant percentage of Floridians living in these communities, associations such as homeowners' associations (HOAs), condominiums, and cooperatives aim to help maintain property values, enhance community cohesion, and ensure a high quality of life.
HOAs typically manage single-family homes, overseeing common areas and enforcing community rules. Condominiums focus on shared living spaces, often involving more extensive shared amenities and facilities. Cooperatives, on the other hand, operate as member-owned entities where residents own shares rather than individual units, fostering a unique sense of community ownership. Together, these associations create structured environments that promote neighborly relations and maintain the appeal of Florida’s vibrant neighborhoods.
Overview of Recent Legislative Changes
Recent legislative changes in Florida have introduced significant updates to community association management, directly impacting both residents and board members. Here are some of the key changes:
1. Enhanced Financial Transparency
New laws require community associations to provide clearer financial disclosures, including detailed budgets and regular financial statements. This change empowers residents by allowing them to better understand how their assessments are being utilized, fostering trust and accountability within the community.
2. Mandatory Board Member Training
Legislation now mandates that board members undergo specific training programs to understand their duties and legal responsibilities. This is aimed at improving governance and ensuring that board members are well-equipped to make informed decisions that benefit the community.
3. Open Meeting Requirements
The new regulations emphasize the importance of open meetings, allowing residents to attend and participate in board meetings. This promotes transparency and encourages active involvement from residents, giving them a voice in decisions that affect their living environment.
4. Streamlined Dispute Resolution
Changes to dispute resolution processes aim to provide clearer and more efficient pathways for residents to address grievances. This is intended to reduce conflicts and create a more harmonious community atmosphere, as residents feel their concerns can be heard and resolved effectively.
5. Clarification of Maintenance Responsibilities
Recent updates clarify the maintenance obligations of both the association and individual homeowners. By clearly defining these responsibilities, the legislation seeks to minimize misunderstandings and conflicts over property upkeep, ensuring a well-maintained community.
Key Legislative Changes in the Past Two Years
- 2022 -
Real Property Rights (Senate Bill: 1380): Authorizes private property owners to establish rules, rates, and fines governing parking and requires that these be posted and clearly visible to people parking motor vehicles on the property. Counties and municipalities are prohibited from passing ordinances or regulations that would restrict the rights of property owners from adopting such rules, rates, and fines.
United States Space Force (Senate Bill: 438): This bill revised the term “uniformed service” to include the United States Space Force. It allows owners to respectfully display one portable, removable official flag of the US Space Force.
Property Rights to Prune, Trim, and Remove Trees (Senate Bill: 518): Local government may not require a notice, application, approval, permit, fee, or mitigation (replanting) for the pruning, trimming, or removal of a tree on residential property. The bill defines residential property as a single-family, detached building located on a lot actively used for single-family residential purposes.
Golf Course Management Best Practices (Senate Bill: 1556): This bill exempts a person certified by the turfgrass science program at the University of Florida Institute of Food and Agricultural Sciences program from ordinances related to water and fertilizer use restrictions unless a state of emergency has been declared.
Picketing and Protesting Near a Dwelling (House Bill: 1571): Prohibits individuals from picketing or protesting near a dwelling with the intent to harass or disturb people inside their homes. This behavior is a second-degree misdemeanor.
Building Safety: Milestone Inspections (Senate Bill: 4-D): Requires Community Associations that existed on or before July 1, 2022, to complete a Structural Integrity Reserve Study (“SIRS”) for each building three stories or taller. The initial study must be completed by December 31, 2024, and repeated every 10 years. Only a licensed engineer or architect can conduct this inspection. The inspection phases, called milestones, include (1) a visual inspection to check for deterioration, and if necessary, (2) a more thorough and in-depth inspection that may be destructive to parts of the building. Waiving reserve funds for repairing and maintaining structures three stories or taller is prohibited.
Two-Way Radio Enhancement (Senate Bill: 1190): Two-way radio communication enhancement systems may be used to ensure consistent fire and rescue communication capabilities and comply with a local authority’s minimum radio signal strength requirements. They are not required by local fire authorities in apartment buildings that are 75 feet in height or less or constructed using wood framing; have less than 150 dwelling units; and all dwelling units discharge to the exterior or to a corridor leading directly to an exit.
Construction Liens (Senate Bill: 352): Applies to single or multi-family dwellings up to four units. The requirement to file a notice of commencement for the repair or replacement of an existing HVAC system was revised, and the bill raises the cost threshold from $7,500 to $15,000 for such contracts where a notice of commencement is not required.
Swimming Pool Specialty Contracting Services (Senate Bill: 222): Creates an exemption from local and state licensing requirements for persons under the supervision of a certified or registered pool contractor for the construction, remodeling, or repair of swimming pools, interactive water features, hot tubs, and spas.
Property Insurance (Senate Bill: 2-D): Affects property insurance throughout the state of Florida by enacting an Assist Policyholders Program that reimburses 90 percent of each insurer’s covered losses and 10 percent of their loss adjustment expenses up to each individual insurer’s limit of coverage for the two hurricanes causing the largest losses for that insurer during the contract year. Additionally, $150 million was appropriated from the General Revenue Fund to the Department of Financial Services’ My Safe Florida Home Program to provide hurricane mitigation inspections and matching grants for the performance of hurricane retrofitting on homestead single family homes with a value of $500,000 or less located in the wind-borne debris region.
- 2023 -
Building Safety (Senate Bill: 154): Updated the 2022's inspection requirements for condos and co-ops three stories or taller. Key points include:
Inspections apply to residential condos, co-ops, and mixed-ownership buildings.
Mixed-ownership building owners must comply and share inspection costs.
Buildings 30 years old before 2024 need inspection by end of 2024.
25-year coastal building inspection requirement removed; local agencies can set their own based on environmental factors.
Local agencies can extend deadlines if owners show they're contracting professionals for inspection.
Inspections before July 1, 2022, may count if they meet requirements.
Inspection teams led by an architect or engineer.
Condo/co-op associations bear inspection costs related to their building parts.
Associations must notify unit owners of inspection deadlines.
Inspectors to submit a progress report within 180 days of the initial report.
Property Owners' Right to Install, Display, and Store Items (House Bill: 437): Expands SB 438, passed in 2022. Any condominium unit owner may display one portable, removable United States flag not larger than 4-1/2 feet by 6 feet that represents the US Army, Navy, Air Force, Marine Corps, Space Force or Coast Guard in a respectful way on Armed Forces Day, Memorial Day, Flag Day, Independence Day, Patriot Day, and Veterans’ Day, regardless of any declaration, bylaws, rules or regulations of the condominium.
Causes of Action Based on Improvements to Real Property (Senate Bill: 360): Shortens the timeframes from 10 years to 7 years within which a property owner may bring a cause of action against a builder for alleged construction defects. It also narrows the scope of certain statutory civil actions against builders.
Community Association Pools (House Bill: 837): Under the bill’s provisions, Community Associations are exempt from liability if a third party commits a crime on their property. Associations must implement the crime prevention measures listed and be certified by CPTED in order to be exempt.
Windstorm and Flood Property Insurance (House Bill: 799): Requires residential property insurers to allow appropriate discounts to policyholders who have taken windstorm mitigation measures and exempts condominium unit owner policies from the Citizens Property Insurance Corporation (CPIC) requirement to maintain flood insurance.
Homeowners’ Association Bill of Rights (House Bill: 919): Revised HOA governance and regulations. Key points include:
HOA board meeting notices must be posted conspicuously or communicated via mail, email, fax, or community broadcasting systems, including meeting agendas.
Funds collected as deposits must not be mixed with other HOA funds and must be refunded if unused.
Officers, directors, or managers involved in kickbacks face monetary damages.
Officers or directors charged with specific crimes related to HOA elections or fund management must be removed from office.
Disclosure of potential conflicts of interest by directors and officers is mandatory.
Developer appointments don’t imply a conflict of interest.
Assessment details must be included in meeting notices.
HOAs must maintain updated member rosters, mailing addresses, email addresses, and fax numbers.
Fines for rule violations are capped at $100 per violation, not exceeding $1,000, and cannot become a lien if less than $1,000.
Suspension of use rights to common areas for non-compliance with HOA rules is allowed.
At least 14 days' notice is required before imposing fines or suspensions.
A hearing before a neutral committee is required for fines, with specific procedures outlined.
Crimes related to fraudulent voting are considered first-degree misdemeanors.
Legislative Changes on the Horizon
In the most recent Florida legislative session, several key changes were made that impact community associations, particularly homeowners’ associations (HOAs) and condominium associations. Notable updates include:
Fining Procedures for HOAs: House Bill 1203, effective July 1, 2024, introduces significant changes to HOA fining processes. Associations must now provide more detailed written notice regarding fines, including a description of the violation, the actions needed to cure it, and hearing details. If a violation is corrected before the hearing or in line with the notice, no fine or suspension will be imposed. Additionally, certain violations, such as leaving trash receptacles out or keeping holiday decorations up for extended periods, are exempt from fines (FLCA Legal).
Education and Structural Requirements for Condo Boards: By July 1, 2025, all condominium board members must complete a four-hour educational course covering critical topics like structural integrity, financial transparency, and meeting protocols. This course requirement aims to enhance board accountability and decision-making (FLCA Legal).
Mandatory Document Access: By 2026, condominium associations managing properties with 25 or more units must provide digital access to essential documents, including bylaws, contracts, and financial records, on their websites or mobile apps. This aims to increase transparency for unit owners (CAN - Community Associations Network).
Hurricane Protection and Architectural Guidelines: Condominium associations are also required to adopt hurricane protection standards for buildings. Associations need to review and potentially adjust their architectural guidelines to align with these new laws (FLCA Legal).
These updates reflect a broader push towards increased transparency, accountability, and disaster preparedness for community associations in Florida.
Impact on Residents and Board Members
For Residents
For residents, these legislative changes enhance their rights, increase their involvement in governance, and improve overall community transparency. For board members, the new training requirements and open meeting policies can lead to more effective leadership and better decision-making. Together, these changes aim to create a more collaborative, engaged, and well-managed community environment in Florida.
For Board Members
These legislative updates aim to enhance board members' accountability, promote transparency in governance, and ensure more effective management of community associations. Key areas of impact include mandatory education for board members, increased transparency requirements, conflict of interest disclosures, and updated fining procedures.
Challenges Ahead
Implementation Issues
Implementing Florida's new HOA legislation may pose several challenges for community associations. Some of the key issues include:
Increased Administrative Burden: The new requirements, such as maintaining detailed records online and ensuring transparency, will add an administrative burden to associations, particularly smaller ones with limited resources. Setting up secure, compliant websites or mobile applications to store and share documents like financial reports, bylaws, and meeting notices can be costly and time-consuming (CAN - Community Associations Network).
Compliance with Education Mandates: Board members are now required to complete a four-hour education course by July 2025. Ensuring compliance with this mandate may be difficult, especially for associations with high turnover rates on their boards. Furthermore, there could be logistical challenges in making sure the course content is accessible and that all board members complete it within the required timeframes (FLCA Legal).
Technology and Accessibility Barriers: Many associations, particularly older or less tech-savvy ones, may struggle to implement the new digital transparency requirements. Setting up and maintaining websites or mobile apps could be beyond their technical expertise, and hiring professionals to assist may impose additional financial burdens (CAN - Community Associations Network).
Legal Complexity of New Fining Procedures: The revised fining process, including the requirement to provide detailed notices and allow for cure periods before fines are imposed, adds complexity to the enforcement of rules. Associations may face challenges in ensuring that their policies are fully compliant, and errors in the process could expose them to legal challenges from homeowners (Florida Condo & HOA Law Blog) (FLCA Legal).
Enforcing Conflict of Interest Disclosures: Ensuring that all board members accurately disclose potential conflicts of interest could be difficult, especially in smaller communities where personal relationships often intersect with business dealings. Failure to comply with these requirements may expose associations to legal disputes (FLCA Legal).
These challenges underscore the need for careful planning, legal guidance, and potential investments in technology and training to comply with the new Florida HOA legislation effectively.
Future Considerations
Ongoing legislative monitoring is crucial for Florida's HOAs to ensure compliance with new laws and stay updated on potential changes that may affect their operations. Associations should consider the following methods for staying informed:
Engage Legal Counsel: Retaining a specialized attorney or legal service that focuses on community association law is key. Attorneys can provide up-to-date guidance on legislative changes and help interpret complex laws, ensuring associations are always in compliance with new regulations.
Subscribe to Industry Publications and Blogs: Various organizations, such as the Florida Community Association Journal or the Community Associations Institute (CAI), regularly publish articles, newsletters, and updates on state legislation affecting community associations.
Attend Educational Workshops and Webinars: Many law firms and community association management organizations host workshops or webinars focused on legislative updates. These are particularly useful around key legislative periods, such as the end of the Florida legislative session, to ensure boards understand how the new laws impact their governance.
Monitor State Legislative Websites: The Florida Senate and Florida House of Representatives websites publish bills, committee reports, and legislative updates. Community associations can use these resources to track bills that may affect their governance or day-to-day operations.
Work with a Lobbying Group or Advocacy Organization: Organizations such as the Community Association Leadership Lobby (CALL) actively advocate for community associations in Florida. They provide legislative tracking and updates to their members, along with guidance on pending bills and enacted laws(CAN - Community Associations Network) (FLCA Legal).
By adopting these strategies, community associations can ensure they remain compliant with Florida's evolving legislative landscape and address implementation challenges proactively.
Conclusion
The recent legislative changes in Florida have introduced a new era of governance for homeowners' associations (HOAs), focusing on increased transparency, stricter compliance requirements, and enhanced board accountability. The new laws mandate online accessibility for association documents, educational requirements for board members, and refined processes for levying fines, all aimed at promoting fairness and efficiency in HOA operations. While these updates are intended to protect homeowners and improve association governance, they also present implementation challenges, particularly for smaller associations dealing with limited resources, technology gaps, and the need for legal guidance. As these changes take effect, it will be essential for HOAs to monitor ongoing legislative developments, adapt their policies, and invest in education and technology to maintain compliance and avoid potential legal issues.
