Today’s column is the fourth installment of our review of 2024 legislation affecting Florida community associations. The first three pieces dealt with changes to the condominium statutes. Today we will wrap up the discussion on changes to the condominium statutes and cover some major changes made to the laws regulating community association managers and management companies.
Hurricane Protection: Since Hurricane Andrew in the early 1990’s, the Legislature has tinkered with the statute to promote the hardening of buildings. Of note, the 2024 changes state that the section of the statute on hurricane protection is intended to apply to all existing associations.
The statute now allows the association to vote to require that owners install hurricane protection, such as impact glass, even when windows and sliding glass doors are the maintenance responsibility of the owner. Under the previous law, this vote would only enable the work to be done by the association. A vote is not required when the windows or sliders are the maintenance responsibility of the association under the declaration of condominium.
The statute also purports to deal with the allocation of costs of removal of hurricane shutters during association maintenance projects. One part of the statute states that the unit owner cannot be held responsible for these costs, while another section explains how the association can collect the money when the owner is responsible. This part of the statute clearly conflicts with itself and is likely to cause much confusion and potential litigation.
Managers and Management Companies: Two different Bills, HB 1021 and HB 1203 brought significant changes for managers. Among the more significant changes:
- After termination of a management contract, the manager or management company has 20 business days to turn over the association’s official records. The failure to do so can result fines of up to ten thousand dollars, and licensure suspension.
- The new statute adds heightened conflict of interest disclosure requirements, including dealings with management company related providers of ancillary services.
- Any contract with a management company related provider that exceeds $2,500 is subject to competitive bidding.
- A new and complicated (I would say convoluted) procedure has been added regarding disclosures in notices of board meetings and board meeting minutes regarding contracts that present management company conflicts of interest issues.
- Failure to comply with the new disclosure requirements permits associations to cancel management contracts without penalty.
- Ancillary contracts that do not comply with the disclosure requirements are voidable if certain procedures are followed.
- A manager’s failure to disclose conflicts of interest is now a stated statutory basis for license suspension or revocation.
- Managers are now required to personally attend at least one board or member meeting per year.
- Management companies must provide to the members of the association the name of the manager assigned to the account, that person’s contact information, a summary of their duties, and their hours of availability.
- Continuing education requirements for licensed community association managers, or “CAM’s” as they are often called, have been changed, including the requirement that managers must take classes on the operation of homeowners’ associations, and at least 3 hours of classes on the keeping of official records.
Next week we will begin reviewing the significant changes to the statutes applicable to homeowners’ associations.
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.