Today’s column is the fifth installment of our review of 2024 legislation affecting Florida community associations. The first four pieces dealt with changes to the condominium statutes and rules for community association managers and management companies. Today, we will begin our review of some major changes made to the laws regulating homeowners’ associations.
Mandatory Websites: Current law does not mandate homeowners’ associations to have a website.
The new statute mandates any homeowners’ association operating a community that has 100 or more parcels to establish a website (or make official records available through a mobile app) by January 1, 2026. The statute sets forth a “laundry list” of official records that must be posted on the website, and various procedures that must be implemented in connection with the website.
Director Education: Under previous law, a newly elected or appointed director could either affirm that they have read the governing documents and statute, and will uphold them, or take educational courses. The law now mandates that newly elected or appointed directors take educational courses within 90 days of being appointed or elected. The certificate of completion is valid for up to 4 years. A director must complete education specific to newly elected or appointed directors at least every 4 years. The state-approved educational curriculum specific to newly elected or appointed directors must include training relating to financial literacy and transparency, recordkeeping, levying of fines, and notice and meeting requirements.
A director of an association that has fewer than 2,500 parcels must complete at least 4 hours of continuing education annually. A director of an association that has 2,500 parcels or more must complete at least 8 hours of continuing education annually.
Official Records Inspection: The new statute requires every HOA board to adopt a written records keeping policy.
Of note, the law now also provides that a director who “knowingly, willfully, and repeatedly” violates the records inspection law, “with the intent of causing harm to the association or one or more of its members,” commits a misdemeanor of the second degree. The term “repeatedly” is defined as two or more violations within a 12-month period.
Criminalizing conduct in HOA administration, which is not otherwise related to a crime itself (such as embezzlement), is a first in the 60-year history of Florida housing laws.
Year-End Financial Reports: In general, homeowners’ associations must provide (or provide notice of availability of) year-end financial statements no later than 120 days from the close of the fiscal year. The level of required report is based on revenue. An association with total annual revenues of $150,000 or more, but less than $300,000, must prepare “compiled” financial statements. An association with total annual revenues of at least $300,000, but less than $500,000, must prepare “reviewed” financial statements. An association with total annual revenues of $500,000 or more must prepare “audited” financial statements. An association with total annual revenues of less than $150,000 must prepare a “report of cash receipts and expenditures.” The governing documents may impose stricter requirements and directors generally have the discretion to obtain higher level year-end financial reports than the “floor” set through the default provisions of the statute.
The law allows Owners to take a vote, prior to the end of the fiscal year, to “waive down” to a lower-level financial report. For example, an association that is required to have an audit could vote to “waive down” to a review, a compilation or a cash report.
The new statute provides that an association with at least 1,000 parcels must prepare audited financial statements, notwithstanding the association’s total annual revenues. Though poorly written, the statute also appears to limit the “waive down” vote to once every two years.
Next week, we will continue with our review of changes to the statutes for 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.