“The Times They Are A Changing….Again” – FCAP Managers Report
Last year I wrote in this column about changes in the law with a profound effect on community associations in Florida. Well, the Times They Are a Changing, again.
As in almost every year the last 3 to 4 years, the Florida Legislature attempted to pass legislation to correct the prior years’ poorly written changes in the law. As in previous years, the legislature’s work, while certainly well intentioned, leaves more questions than answers, and provides for some significant changes in how community associations must operate in Florida.
On June 23, 2025, the Governor signed HB 913, which has significant changes to community association law in Florida. This article is not a comprehensive review of the new laws; it is meant just to point out a few of the significant changes that go into effect July 1, 2025. Yes, July 1, 2025.
Condominium Budgets
Under the new law, if a board proposes an annual budget which exceeds 115% of the prior year’s budget, the board must simultaneously propose a substitute budget that does not include any “discretionary expenditures that are not required to be in the budget”. Previously, if a proposed budget exceeded 115% of the prior year’s budget, unit owners had to petition the board to present the unit owners’ substitute budget for approval, which rarely happened.
Under the new law, boards must proactively provide a substitute budget, at the same time as the budget that is typically proposed and adopted by the board.
There are two key factors boards must consider here:
1. Does the board’s proposed budget exceed 115% of the prior year’s budget?
Certain expenses, such as insurance premiums, mandatory reserves, and anticipated repair costs for specific building components which are not expected to be incurred on an annual basis, are now excluded from this calculation. These expenses will need to be carefully reviewed to determine if they can be excluded from the computation.
2. Which expenditures qualify as “discretionary”?
Florida’s Condominium Act does not define required versus “discretionary” expenditures. The Act does mandate that certain expense categories be included in the budget, and many condominium governing documents outline required services and authorized expenditures.
If a board determines that its proposed budget exceeds 115% of the prior year’s budget, both the board’s proposed budget and the “substitute budget” without the “discretionary expenditures” must be sent to unit owners at least 14 days in advance. A unit owner meeting must be held to vote on the substitute budget before the board convenes to adopt its proposed budget.
In other words, if the Owners vote to approve the “substitute budget”, that is the adopted budget. If the members reject the substitute budget, then the board meets to approve its proposed budget. The substitute budget requires approval by a majority of voting interests, or any greater percentage specified in the bylaws.
Given that this legislation will change how condominium associations budget, the Association should begin preparing for its implications now.
Video Conferencing
Ever since the COVID epidemic, video conferencing meetings have skyrocketed. They allow for more owner participation, are more convenient, and board members and owners can attend from literally anywhere in the world.
HB 913 explicitly allows condominium associations to hold membership meetings, board meetings and committee meetings by video conference. The term “video conference” is defined in the statute as “any real time audio or video meeting between two or more people via audio or video enabled devices. A meeting held by video conference must include a physical location for those owners who choose to attend in person.”
Any notice of meeting for a video conference meeting must state that the meeting is to be held via video conference and include a hyperlink to the video conference, a conference telephone number for unit owners to attend the meeting by phone, and provide the physical location of the meeting for in person attendance. All meetings conducted by video conference must be recorded, and such recording must be maintained as an official record of the association for one year.
If the association is obligated to maintain a website, then video recordings for all meetings conducted by video conference or hyperlinks to all recordings of meetings conducted by video conference must be posted on the association website. Associations operating a condominium with 150 or more units are currently required to have a website. As of January 1, 2026, this requirement will apply to associations operating a condominium with 25 or more units.
If the annual membership meeting is conducted by video conference, a quorum of the board must be present at the physical location of the annual meeting. The new law does not explain what the consequences may be if the association does not have a quorum of its board physically in attendance for the annual meeting, but it instructs the Division to adopt rules clarifying requirements for meetings by video conference. If a meeting of the membership is conducted by video conference, the unit owner attendees may vote electronically in the same manner provided in the electronic voting statute.
The new law states that a Board resolution to authorize “electronic voting” (voting by logging onto a third-party website and casting votes for the election of directors or other unit owner voting items) no longer requires 14-day written notice. “Regular” notice given for Board meetings (48 hours posting and agenda identification) is sufficient under the statute.
Due to changes made to the statutes in 2024, any association that has authorized electronic voting must offer it for any election, though apparently not for other votes. There are reasons why an association may choose not to offer electronic voting in an election (cost issues, meeting notice errors, lack of interest by owners, etc.), but that is what the law now says.
A condominium association that has not adopted electronic voting will now be required to accept ballots cast for the election of directors by email, if an owner chooses to vote in that manner. An association must designate an email address for submission of election ballots, and a unit owner may submit their completed ballot to the email address designated by the association no later than the scheduled date and time of the meeting.
All electronically transmitted election ballots must include spaces for the unit owner to fill in their unit number, as well as their first and last name, which also functions as the signature of the unit owner for purposes of signing the ballot. All ballots must include a statutory disclaimer statement explaining to the unit owner their right to waive the secrecy of their election ballot.
As you can see, just the above examples of the changes that go into effect July 1, 2025, have significant impact on Association operations. There are numerous other significant changes in HB913. As always, you should consult with your association attorney regarding all these new laws and requirements.
To read the original FCAP article, please click here.
Howard J. Perl is a member of Becker’s Community Association practice and has been involved in all aspects of community association law, including transactional, collections, mediation, arbitration, construction defects and litigation. He is Florida Bar Board Certified in Condominium & Planned Development Law and is certified by the State of Florida as a facilitator for continuing education credit courses for Community Association Managers.
