“2024 Legislative Review Continues” – News-Press

07.21.2024
Joseph E. Adams

Today’s column is the third installment of our review of 2024 legislation affecting Florida community associations. The first two pieces dealt with changes to the condominium statutes, as will today’s review.

Electronic Voting: In a seemingly minor but potentially substantial change, the law now provides that if the board authorizes online voting, the board must honor a unit owner’s request to vote electronically at all subsequent elections, unless such unit owner opts out of online voting. Although e-voting got off to a slow start after first being authorized in 2015, it has clearly become a mainstay of the condominium association voting landscape.

The problem with the new law is that once the board authorizes electronic voting, it is obligated to make an e-voting platform available in every election. There may be reasons why an association might choose not to use e-voting in a particular election, for example an error in the notice forms that did not accurately disclose the required materials.

“Kickbacks”: The condominium statute now defines a “kickback” as any thing or service of value, for which consideration has not been provided, for an officer’s, a director’s, or a manager’s own benefit or that of his or her immediate family from any person providing or proposing to provide goods or services to a condominium association. Any officer, director or manager who knowingly solicits, offers to accept, or accepts a kickback can be prosecuted for a felony of the third degree.

Owner E-Mail Privacy: Consistent with previous law, a unit owner’s e-mail address is not part of the official records unless it is used for the receipt of official notices or the owner has consented to their e-mail address being shared. The new law requires that owner e-mail addresses may only be used “for the business operation of the association” and further provides that this information may not be sold to or shared with outside third parties.

“Fraudulent Voting Activities”: The new law establishes a list, similar to that added to the homeowners’ association statute last year, establishing “fraudulent voting activities relating to association elections” and the establishment of criminal penalties for same. So-called “fraudulent voting activities” include bribery or corruption in soliciting votes and threatening “coercion or intimidation” to influence votes.

Official Records: The law adds several new items that must be kept by an association as part of the official records of the association including all invoices, transaction receipts, or deposit slips that substantiate any receipt of expenditure of funds by the association, a copy of all building permits, and a copy of all satisfactorily completed board member educational certificates. The law also imposes the new requirement to keep official records in an “organized fashion” and make a good faith effort to retrieve/recreate records that have been lost or destroyed.

“Retaliatory Conduct”: HB 1021 now makes it unlawful for a condominium association to “retaliate” against owners for protected conduct. To raise this claim, which arguably may only be raised as a legal defense (and then apparently limited to actions for “possession”), the owner must have acted “in good faith” and not for any improper purpose such as to “harass” or for “frivolous purposes.”

Suspension of Voting Rights: The law now requires that at least 90 days before an election, a condominium association must notify a unit owner or member that his or her voting right “may be suspended” due to non-payment of a fee or other non-monetary obligation. The law already contains strict notice requirements, and this new provision seems to create conflict in the statute. Remember, for most condominiums, suspension of voting rights is not permissible unless authorized in the condominium documents.

Next week we will wrap up the changes to the condo laws with a look at some major changes on hurricane protection, including impact glass, and then move to discussion of new laws effecting homeowners’ associations, managers, and management companies.

Joe Adams is an attorney with Becker & Poliakoff, P.A., Fort Myers. Send questions to Joe Adams by e-mail to jadams@beckerlawyers.com. Past editions may be viewed at floridacondohoalawblog.com.

Areas of Focus: Condo, Co-Op & HOA, Florida Community Association