There are several significant changes occurring at both the state and county levels that we want to ensure you are aware of, particularly regarding Community Association Law. Keeping abreast of these developments is crucial for staying compliant and informed when managing a condominium or homeowners’ association. Among these changes are:
1) NEW: MIAMI-DADE COUNTY FEBRUARY 1ST ANNUAL CONDO & HOA REGISTRATION
Chapter 17D of the Miami-Dade County Code (the “Ordinance”), requires condominium and homeowners’ associations to submit a written registration to the Department of Regulatory and Economic Resources. There is an annual obligation to register by February 1 of each year, starting from February 1, 2023. Miami-Dade County will maintain a searchable database containing the registration information and attachments of each condominium and homeowners’ association registered with the County, granting the public access to view registration details. The Ordinance aims to bolster transparency for Miami-Dade County residents interested in understanding more about the operations, financial, and structural status of their condominium or homeowners’ associations. By February 1 of each year, all community associations governing real property within the County must file online a registration.
The following criteria is required of Miami-Dade County condominiums and homeowners’ associations during the registration process by February 1st of each year:
- The name of the community association, which shall include the name registered with the Florida Division of Corporations in addition to any fictitious names that the community association utilizes.
- The business address and the legal description of each residence owned, operated, or governed by the community association.
- The name and contact information of the property manager or other designated agent for the community association.
- The name and contact information for an emergency contact for the community association (cannot be the same individual identified in subsection (A)(3) above).
- A list of all officers and directors of the community association with contact information.
- A link to the community association’s website, if any.
- An impression of the corporate seal of the community association, if any.
- A legible copy of the community association’s governing documents and any amendments thereto, including the declaration, articles of incorporation, bylaws, rules, regulations, and resolutions.
- A list of the community association’s planned capital projects, if any, from the date of registration through Feb. 1 of the following year.
- NOTE: For capital projects for which a special assessment has been levied, you must provide a project schedule with projected and actual commencement and completion dates, the cost of such improvement and the source of funding. Complete this form.
- A copy of the community association’s most recent set of compiled, reviewed, or audited financial statements, as applicable. Any monthly association fees, and any applicable current or approved special assessments, must be specifically outlined.
- A copy of the community association’s most recently adopted annual budget.
- The location where all building permits for work in common areas shall be posted during construction.
- All reports issued within the last 10 years on the structural status of each of the properties within the County owned, operated, or governed by the community association, including any required recertification reports, if applicable.
- A Certificate of Insurance listing all of the community association’s current insurance policies, issuing companies, policy numbers, coverage limits, and effective dates.
- IMPORTANT:
- Do not upload any document containing visible:
- Financial account numbers
- Social security numbers
- Driver license numbers
- Any other information deemed confidential or exempt as defined by Chapter 119, Florida Statutes
- Do not upload any document containing visible:
- ALSO IMPORTANT: A community association that does not have one or more of the required items listed above may file a form attesting to this along with the association’s registration application.
NOTE#1: After a community association files its initial registration, the community association must file a renewal registration every 12 months thereafter reflecting any changes to the information and attachments required above.
NOTE #2: Please note a community association may designate a property manager or other agent (for example, an accountant or legal counsel) to fulfill the community association’s obligations under this ordinance.
REGISTER YOUR CONDOMINIUM OR HOMEOWNERS’ ASSOCIATION ONLINE HERE.
2) AMENDED: MIAMI-DADE COUNTY “40 YR RECERTIFICATION” GUIDELINES
There are new county-wide requirements for milestone inspections of condominiums that are three stories and taller.
New 40 Year Recertification Requirements:
- All buildings built on or before 1982 that have already had an initial recertification inspection through Miami-Dade’s 40-Year program will continue to follow the established schedule.
- Coastal condominium buildings three stories or taller built between 1983 and 1997 and located within three miles of the coastline must have a recertification inspection by December 31, 2024, and every 10 years thereafter. These buildings are being identified through a GIS mapping project. All other buildings built between 1983 and 1992 must have a recertification inspection by December 31, 2024, and every 10 years thereafter.
- All condominium buildings that are three stories or taller located within three miles of the coastline built on or after 1998 must have a building recertification inspection when the building age reaches 25 years, and every 10 years thereafter. All other buildings built on or after 1993 must have a recertification inspection when the building age reaches 30 years, and every 10 years thereafter.
3) NEW: ADDITIONAL PROTECTED CLASSES OF FAIR HOUSING BY COUNTY
Under the Fair Housing Act (FHA) in the United States, protected classes are groups of people shielded from discrimination in housing-related activities. While the FHA establishes a predefined list of these categories, local governments have the authority to broaden the scope of protected classes. Recently, several counties have augmented their lists. The effect of which can impact the rule-making power of condominium and homeowners’ associations.
Counties often take the lead in defining and expanding the range of protected classes to mitigate discriminatory practices in housing. These protected classes then become a significant consideration for community associations. Accordingly, it becomes crucial to comprehend which classes are protected in the county where your condominium or homeowners’ association is located. Below is a list of South Florida Counties and their respective protected classes:
Miami-Dade County
The protected classes are as follows: race, color, religion, ancestry, national origin, sex, pregnancy, age, disability, marital status, familial status, gender identity, gender expression, sexual orientation, actual or perceived status as a victim of domestic violence, dating violence or stalking, and/or source of income.
Broward County
The protected classes are as follows: age, color disability, familial status, gender, identity or expression, lawful source of income, marital status, national origin, political affiliation, pregnancy, race, religion, retaliation, sex, sexual orientation, veteran or service member status, victim of dating violence, domestic violence, and stalking or human trafficking.
Palm Beach County
The protected classes are as follows: race, sex, color, religion, national origin, disability, familial status, sexual orientation, age, marital status, and gender identity or expression.
Monroe County
The protected classes are as follows: race, color, sex, religion, disability, national origin, ancestry, sexual orientation, gender identity or expression, familial status, and age.
Collier County
The protected classes are as follows: race, color, national origin, religion, sex, familial status, and disability.
Lee County
The protected classes are as follows: race, color, religion, sex, familial status, national origin, disability ancestry, pregnancy, age, place of birth, and marital status.
Hendry County
The protected classes are as follows: race, color, national origin, religion, sex, familial status or handicap.
Martin County
The protected classes are as follows: race, color, religion, sex, national origin, age, disability, or familial status.
4) NEW: CONDO 3.0 BILL (HB 1021) ON CAM RESPONSIBILITIES & LIABILITIES
Condo 3.0 or “HB 1021” deals with many topics concerning Florida Condominium Law–among them, the responsibility of Community Association Managers (“CAMs”). This bill has yet to be signed into law by Florida’s Governor. Once signed into law, HB1021 is set to become effective on July 1, 2024.
House Bill 1021 carries significant implications that Community Association Managers (CAMs) and Condominium Boards need to be mindful of. Concerning management practices, the proposed legislation seeks to rectify access to management-maintained records, proactively address management conflicts of interest, and tackle issues like kickbacks, crimes, and potential penalties faced by CAMs and management firms. While the bill may not pass in its current form, it’s expected that certain provisions within it will eventually be enacted into law.
- TURN OVER OF RECORDS
- A CAM or community association management firm shall return all condominium official records within their possession to the condominium within 20 business days after termination of a contractual agreement to provide management services or receipt of a written request for return of the official records, whichever occurs first.
- A notice of termination of a contractual agreement to provide community association management services must be sent by certified mail, return receipt requested, or in the manner required under such contractual agreement.
- The CAM or community association management firm may retain, for up to 20 business days, those records necessary to complete an ending financial statement or report.
- If an association fails to provide access to or retention of the accounting records to prepare an ending financial statement or report, the CAM or community association management firm is relieved from any further responsibility or liability relating to the preparation of such ending financial statement or report.
- Failure of a CAM or a community association management firm to timely return all of the official records within its possession to the community association creates a rebuttable presumption that the CAM or community association management firm willfully failed to comply with Fla. Stat. 468.4334(1)(3).
- A CAM or a community association management firm that fails to timely return community association records is subject to suspension of its license under Fla. Stat. 468.436 and a civil penalty of $1,000 per day for up to 10 business days, assessed beginning on the 21st business day after termination of a contractual agreement or receipt of written request to turn over record, whichever occurs first.
- CONFLICTS OF INTEREST
- A CAM or a community association management firm must disclose to the board of a community association any activity that may reasonably be construed to be a conflict of interest.
- A rebuttable presumption of a conflict of interest exists if any of the following occurs without prior notice: (a) A CAM or a community association management firm enters into a contract for goods or services with the association. (b) A CAM or a community association management firm holds an interest in or receives compensation or anything of value from a corporation, limited liability corporation, partnership, limited liability partnership, or other business entity that conducts business with the association or proposes to enter into a contract or other transaction with the association.
- If the association receives and considers a bid that exceeds $2,500 to provide a good or service, other than community association management services, from a CAM or a community association management firm, the association must solicit multiple bids from other third-party providers of such goods or services.
- If a CAM or a community association management firm proposes to engage in an activity that is a conflict of interest as described in Fla. Stat. 468.4335, the proposed activity must be listed on, and all contracts and transactional documents related to the proposed activity must be attached to, the meeting agenda of the next board of administration meeting. The disclosures of a possible conflict of interest must be entered into the written minutes of the meeting. Approval of the contract, including a management contract between the community association and the CAM or community association management firm, or other transaction requires an affirmative vote of two-thirds of all directors present. At the next regular or special meeting of the members, the existence of the conflict of interest and the contract or other transaction must be disclosed to the members.
- If a CAM or community association management firm has previously disclosed a conflict of interest in an existing management contract entered into between the board of directors and the CAM or community association management firm, the conflict of interest does not need to be additionally noticed and voted on during the term of such management contract, but, upon renewal, must be noticed and voted on in accordance with Fla. Stat. 468.4335.
- If the board finds that a CAM or a community association management firm has violated this section, the association may cancel its community association management contract with the CAM or the community association management firm. If the contract is canceled, the association is liable only for the reasonable value of the management services provided up to the time of cancellation and is not liable for any termination fees, liquidated damages, or other form of penalty for such cancellation.
- If an association enters into a contract with a CAM or a community association management firm and such activity has not been properly disclosed as a conflict of interest or potential conflict of interest as required by Fla. Stat. 468.335, the contract is voidable and terminates upon the association filing a written notice terminating the contract with its board of directors which contains the consent of at least 20 percent of the voting interests of the association.
- KICKBACKS & CONDOMINIUM CAM CRIMES
- “Kickback” means anything or service of value, for which consideration has not been provided, for an officer’s, director’s, or manager’s own benefit or that of his or her immediate family, from any person providing or proposing to provide goods or services to the association.
- Any . . . manager who knowingly so solicits, offers to accept, or accepts a anything or service of value or kickback commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, is subject to a civil penalty pursuant to s. 718.501(1)(e), and must be removed from office and a vacancy declared.
- A CAM who knowingly, willfully, and repeatedly violates subparagraph 1 of 718.111(12)(c)(1) commits a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083, and must be removed from office and a vacancy declared. For purposes of this subparagraph, the term “repeatedly” means two or more violations within a 12-month period.
- Any person who knowingly or intentionally defaces or destroys accounting records that are required by this chapter to be maintained during the period for which such records are required to be maintained, or who knowingly or intentionally fails to create or maintain accounting records that are required to be created or maintained, with the intent of causing harm to the association or one or more of its members, commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083, is personally subject to a civil penalty pursuant to s. 718.501(1)(d), and must be removed from office and a vacancy declared.
- A person who willfully and knowingly refuses to release or otherwise produce association records with the intent to avoid or escape detection, arrest, trial, or punishment for the commission of a crime, or to assist another person with such avoidance or escape, commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, and must be removed from office and a vacancy declared.