Becker & Poliakoff

VIDEO: New Legislation Changes Collections & Foreclosures Process for Florida Community Associations

VIDEO: New Legislation Changes Collections & Foreclosures Process for Florida Community Associations

Recently, the Florida Legislature enacted significant statutory changes that impact community association collections and foreclosure actions. The updates to Chapter 718, Chapter 719 and Chapter 720 of the Florida Statutes go into effect on July 1, 2021 and include requirements regarding:

  1. Delivering statements or invoices to association members and how that association must notify members prior to changing the method of delivery;
  2. Instituting a 30-day notice of delinquency to members before an account is turned over to an attorney for collections;
  3. Increasing the length of time a delinquent member has to remit payment before collections or foreclosure can proceed.

These changes will likely require your association to make significant adjustments to its collections policies and procedures, especially if the board has a written collection policy in place. The failure to do so could result in serious legal ramifications for the association. Associations should consult their legal counsel to create a plan that properly addresses these changes and ensures compliance prior to July 1, 2021.