On June 1, 2010, several laws affecting community associations were amended and signed into law by Governor Crist. Having an effective date of July 1, 2010, many provisions of the Florida Condominium Act (Chapter 718, F.S.), Homeowners Associations (Chapter 720, F.S.) and Cooperative (Chapter 719, F.S.) laws were amended. To follow is a summary of relevant amendments as stated above:
CONDOMINIUMS
Assignment of Rent –s.718.116(11), F.S.
In the case of a rented unit, if a unit owner is 90 days or more delinquent in the payment of monetary obligations to the association then the association may notice the tenant of the unit owner’s delinquency and require the tenant to pay rents going forward to the association in order to cover the delinquent unit owner’s future monetary obligations. The association is given the power to evict the tenant should the tenant not comply with the association’s demand. The law makes clear that the association may still obtain a receivership but is now also provided an alternative opportunity to intercept the rent directly. Additionally, the Firm continues to recommend the pursuit of lien foreclosures and court appointed receiverships.
Suspension of Use of Common Areas – s.718.303(3) and (4), F.S.
An association is authorized to suspend the right of a unit owner to use common areas, common facilities or association property where the unit owner is delinquent more than 90 days in the payment of monetary obligations to the association. It should be noted that the suspension runs to the unit owner’s occupant, licensee or invitee until the monetary obligation is paid. Note that monetary obligations, in the opinion of the Firm, include such obligations as annual and special assessments, authorized “charge back” items and fines, including interest, late fees, costs and attorneys fees. Suspensions may not though apply to limited common elements intended to be used only by that unit, common elements that must be used to access the unit, utility services provided to the unit, parking spaces, or elevators. The law is not clear whether the term “utility” includes cable, which could potentially be considered a utility in which case cable would not be subject to suspension. Additionally, cable could be tied to the phone line, which we believe, falls within the meaning of the word “utility” so cutting off the cable is not recommended.
Section718.303(4), F.S. provides that notice and hearing requirements are inapplicable where the imposition of suspensions or fines against a unit owner or their occupant, licensee or invitee is for the failure to pay any amounts due the association (unlike a violation of the governing documents). The association need only levy such a fine or impose such a reasonable suspension at a properly noticed board meeting, notifying the unit owner, and if applicable, occupants, licensees, or invitees by mail or hand delivery.
Suspension of Voting Rights – s. 718.303(5), F.S.
An association is authorized to suspend the voting rights of a member if the member is more than 90 days delinquent in the payment of any monetary obligation due the association. The suspension ends upon full payment of all obligations.
Insurance – 718.111(11), F.S.
Numerous changes have been made to the condominium insurance provisions including the specificity of what is to be considered at a board meeting establishing deductibles, requirement of a condominium association being named as an additional insured and loss payee, “forced placed” insurance by a condominium association, and proof of owner insurance coverage, all of which have been eliminated.
Election of Directors – 718.112(2)(d), F.S. The law was changed to allow for the reappointment of an incumbent director only in the event there is an insufficient number of eligible members showing an interest in or demonstrating an intention to run for a vacant position. Previous law provided that incumbents were automatically reappointed. Co-owners in condominiums with more than 10 units or in an association that does not include timeshare units or timeshare interests cannot serve on the board at the same time unless they own more than 1 unit or there are an insufficient number of eligible candidates to fill the vacancies.
Newly elected or appointed directors must certify to the secretary of the association within 90 days after being elected that the newly elected or appointed directors have read and will uphold the governing documents. Without such affirmation, the new directors must take a course with an approved condominium educational provider. Failure to comply with the foregoing results in a temporary suspension from serving on the board.
Official Records – s.718.111(12), F.S.
Certain official records were added to the types of official records that an association may not disclose to unit owners including personnel records of association employees, e-mail addresses, contact information, and any unit owner identifying contact information other than the unit owner’s address for notice. An association is not liable for the use or misuse by a unit owner of information provided by the association, provided, however, that the association not disclose information it is not supposed to disclose.
Additionally, there is now imposed civil liability for failure to maintain required accounting records with the intent to cause harm to the association or one or more of its members. Associations must also now not allow access to Association electronic or computer security data, passwords and software and operating systems.
The Firm recognizes that associations and/or management companies may have unit owner contact information that is not characterized appropriately for purposes of determining whether the type of information in hand is the type that should be excluded from inspection pursuant to s. 718.111(12), F.S. As such, the Firm recommends that associations and/or management companies determine, proactively, the type of information it is safekeeping, both internally and from unit owners. The Firm can assist associations and management companies in that regard.
Delinquent Directors or Officers – s. 718.112(2)(n), F.S.
A director or officer is deemed to have abandoned office if he or she is delinquent more than 90 days in the payment of any monetary obligations due the association, and a disqualification of any unit owner from being elected if the owner is more than 90 days delinquent. Unlike the previous law, delinquency can be for more than regular assessments and includes any monetary obligation. It is the opinion of the Firm that such an individual may be placed on the election ballot but would not be considered elected if such a delinquency existed at that time, which means that the next highest vote getter would be deemed elected. If there is no contest for the election to the Board and the delinquent candidate is deemed automatically elected, then immediately, that delinquent Board member would be deemed to have abandoned office and the Board would then fill the resulting vacancy.
Director or Officer Offenses – s.718.114, F.S.
A director or officer charged with an offense involving the association’s funds or property must be removed from office, creating a vacancy in the office to be filled until the end of the period of the suspension or the end of the director’s term of office, whichever comes first.
Bulk Rate Contract – s.718.115(1)(d)1. and 2., F.S.
If so provided in the declaration, the cost of communication services, information services or internet services obtained pursuant to a bulk contract are a common expense. The terms “master antenna television” and duly franchised cable television service” have been deleted. The cost for services under a bulk rate contract may be allocated on a per unit basis rather than on a percentage basis if the declaration provides for other than an equal sharing of common expenses. Any contract entered into before July 1, 1998, in which the cost of the service is not equally divided among all unit owners, may be changed by vote of a majority of the voting interests present at a regular or special meeting of the association to allocate the cost equally among all units. Any such contracts made by a board on or after July 1, 1998, may be cancelled by a majority of the voting interests present at the next regular or special meeting of the Association.
Lastly, hearing impaired or legally blind unit owners (in either case, not living with a non-hearing impaired or sighted person) or persons receiving SSI or food stamps may discontinue cable or video service without incurring common expenses related to such services. If then fewer than all members share the expenses related to such services then the expense must be shared equally by all participating unit owners. The term “television” has been replaced with the term “video service.”
Retrofitting Fire Sprinkler System – s.718.112, F.S.
An association can vote to forego retrofitting the common elements, association property or units with a fire sprinkler system by the affirmative vote of a majority of all voting interests. Formerly, the voting percentage was two-thirds (2/3) of all voting interests. The local authority having jurisdiction may not require retrofitting compliance for associations not affirmatively voting before the end of 2019. A vote to require retrofitting may be obtained at a special meeting of the unit owners even if a vote to forego retrofitting was previously had, provided, that such a vote may only be called for once every three (3) years.
Elevator Safety – ss.553.09(20), F.S.
Upon the affirmative vote of a majority of the voting interests, an association can opt to forego retrofitting elevators to operate on an alternate power source for emergency purposes.
Turnover – s.718.301, F.S.
This change in the law qualifies turnover of an association in the case of where a receiver is appointed for the developer by allowing the circuit court to determine within 30 days after the receiver’s appointment that turnover would be detrimental to the association or its members.
Foreclosing Lender Liability- s.718.116(b)1, F.S.
A foreclosing lender is now liable for 12 as opposed to 6 months of unpaid common expenses and regular periodic assessments which accrued or came due immediately preceding the “acquisition of title” which is when the certificate of title is recorded or a deed-in-lieu of foreclosure is recorded.
Claim of Lien – s.718. 116(5)(b), F.S.
The period of time that the claim of lien secures post recording runs through the entry of a final judgment, which is a revision to the prior language providing that the period ran through the “entry” of a certificate of title.
Financial Reporting – s.718.111(13), F.S.
The legislature has changed the threshold for the requirement to prepare cash receipts and expenditures in lieu of financial statements for associations operating fewer than 50 units to associations operating fewer than 75 units.
The Division must now also provide rules setting forth uniform association accounting principles and standards, and additional standards for presenting a summary of association reserves including a good faith estimate of the annual amount of reserve funds for each reserve item based on the straight-line accounting method (such disclosure not being applicable to reserves funded via the pooling method).
Amendments to Declaration/Rentals – s.718.110(13), F.S.
Declaration amendments prohibiting unit owners from renting their units or altering the duration of rental terms or specifying the number of permitted rentals during a specified term apply to unit owners who acquire title after the effective date of the respective amendment. Previously the law referred to “any” leasing amendment and the “purchase” versus the “acquisition” of title. The term “acquisition,” such as in the case of a successful bid at foreclosure, likely means the recordation versus the issuance of a certificate of title though the law does not specifically so state.
Amendments to Declaration/Limited Common Elements – s.718.110(14), F.S.
A portion of the common elements serving only one unit or group of units and not intended or designed to be used by all unit owners may be reclassified as a limited common element by declaration amendment. This change is meant to clarify existing law, as a prior arbitration case ruled as such.
Condominium Unit Buyer’s Deposits – s.718.202(11), F.S.
In response to recent negative caselaw, the legislature, intending to clarify existing law, amended provisions of the Condominium Act to provide that deposits held by a developer may be held in one escrow account, provided, the initial ten percent threshold of the sale price received prior to the completion of construction and the over ten percent thresholds are clear from the accounting records for each buyer.
Termination of Condominium – ss. 718.117(2)(a)1 and 718.117(19), F.S.
The termination provision of the Condominium Act has been refined with respect to termination based on economic waste to provide for a basis of economic waste to also include the construction and repair necessary to construct or restore the improvement exceeding the combined fair market value of the units in the condominium after completion of the construction or repairs. The legislature also created the Distressed Condominium Relief Act, the details of which are discussed below:
Legislative Intent – s. 718.702, F.S.; s.718.501(1), F.S.
In order to allow for economic opportunities in light of a massive economic downturn in the condominium market, the legislature created a part VII to Chapter 718, F.S. entitled the “Distressed Condominium Relief Act.” The Distressed Condominium Relief Act provides relief from certain provisions of the Condominium Act for successor purchasers, including foreclosing mortgagees, for a specified time in order to spark purchases of blocks of condominium inventory.
Additionally, the law amends s. 718.501(1), F.S., to include bulk assignees and bulk buyers within the Division’s jurisdiction to investigate complaints and enforce compliance with the Condominium Act. It also includes bulk assignees and bulk buyers within the Division’s authority to investigate complaints regarding improper turnover or failure to turnover control from a bulk buyer or bulk assignee-controlled association to a unit owner-controlled association.
Pertinent Definitions – ss.718.103 (16) and 718.703(1) and (2), F.S.; s.718.704
The definition of “developer” in s. 718.103(16), F.S., was amended to include “bulk assignees” and “bulk buyers.”
Section 718.703, F.S., was created to add the definitions of “bulk assignee” and “bulk buyer.”
A bulk assignee is as a person who acquires more than 7 condominium parcels as provided in s. 718.707, F.S., and receives an assignment of some or all of the rights of the developer as set forth in an exhibit to the deed or as a separate instrument recorded in the public records in the county where the condominium is located. A “bulk buyer” is defined as a person who acquires more than 7 condominium parcels as provided in s.718.707, F.S. but who does not receive an assignment of developer rights other than the right to: (i) Conduct sales, leasing, and marketing activities within the condominium; (ii) Be exempt from the payment of working capital contributions to the association that arise out of, or in connection with, the bulk buyer’s acquisition of a bulk number of units; and (iii) Be exempt from any rights of first refusal which may be held by the association and would otherwise be applicable to subsequent transfers of title from the bulk buyer to any third-party purchaser concerning one or more units. An acquirer of condominium parcels is not a bulk assignee or bulk buyer if the transfer was made before July 1, 2010 (effective date of the Distressed Condominium Relief Act) with the intent to hinder, delay, or defraud any owner, purchaser or the association or if the acquirer was an insider pursuant to s.726.102(7), F.S. Time Limitations for Classifications as Bulk Assignee or Bulk Buyer–s.718.707, F.S.
A person acquiring condominium parcels may not be classified as a bulk assignee or a bulk buyer unless the parcels were acquired before July 1, 2012. The date of acquisition is based upon the date that the deed or other instrument of conveyance is recorded or the date of issuance of a certificate of title in a foreclosure proceeding.
Assignment and Assumption of Developer Rights By Bulk Assignee; Bulk Buyer – s.718.704, F.S.
New s. 718.704, F.S., provides that a bulk assignee assumes and is liable for all of the duties and responsibilities of the developer under the declaration and the Condominium Act, except for the following (unless the bulk assignee expressly assumes some or all of these items):
• Developer warranties under ss. 718.203(1) or 718.618, F.S., except for design, construction, development, or repair work performed by or on behalf of the bulk assignee.
• The obligation to (i) fund converter reserves for a unit not acquired by the bulk assignee or (ii) provide converter warranties on any portion of the condominium property except as provided in a contract for sale between the bulk assignee and a purchaser pertaining to any design, construction, development or repair work performed by or on behalf of bulk assignee.
• The requirement to provide the association with a cumulative audit of the association’s finances from the date of association formation (other than the period that the bulk assignee elects a majority of the board).
• Any liability for or arising out of or in connection with actions taken by the Board or developer-appointed directors before the bulk assignee elects a majority of the Board. • Any liability for or arising out of developer’s failure to fund previous assessments or resolve budget deficits, in relation to a developer’s guarantee unless that guarantee right is assigned to the bulk assignee (in which case the bulk assignee is liable for so long as the guarantee remains in place.) A bulk assignee not receiving such assignment does not assume and is not liable for developer guarantee obligations. A bulk assignee is responsible for delivering documents and materials in accordance with s.718.705(3), F.S. A bulk buyer is liable for the duties and responsibilities of the developer under the declaration and the Condominium Act only to the extent provided in the Distressed Condominium Relief Act in addition to any duties or responsibilities expressly assumed in writing.
Developer rights may be assigned to a bulk assignee by the developer, by a previous bulk assignee, or by a court acting on behalf of the developer or the previous bulk assignee except that: (a) There may be more than one bulk buyer but not more than one bulk assignee within a condominium at any particular time; and (b) If more than one acquirer of condominium parcels receives an assignment of development rights from the same person, the “bulk assignee” is the acquirer who first records the assignment in the public records.
Transfer to Unit-Owner Controlled Board-s.718.705, F.S.
Section 718.705, F.S., provides for the transfer of control of the board to the unit owners other than the developer, if a bulk owner is entitled to elect a majority of the board members. A condominium parcel acquired by the bulk assignee is not deemed to be conveyed to a buyer, or to be owned by anyone other than the developer, until the parcel is conveyed to a buyer who is not the bulk assignee.
If a bulk assignee relinquishes control, the law provides that all items required under s. 718.301(4), F.S., be delivered by the bulk assignee to the board. If the bulk assignee is not in possession of these documents and materials during the period in which the bulk assignee was entitled to elect a majority of the board, the assignee must undertake a good faith effort to obtain and deliver the documents and materials (in conjunction with the initial purchase of the condominium parcels), and must certify in writing to the association, an itemized list of documents and materials that could not be obtained by the bulk assignee. The delivery of the certified list relieves the bulk assignee of responsibility to deliver such documents and materials. In a conflict between the provisions of s. 718.705, F.S., and s. 718.301, F.S., the provisions of s. 718.705, F.S.(hereinabove summarized), prevail.
Offering of Units by a Bulk Assignee or Bulk Buyer – s.718.706, F.S.
Before offering any units for sale or lease for a term exceeding 5 years, a bulk assignee or a bulk buyer must file certain offering documents with the Division and provide the documents to a prospective purchaser or tenant.
A bulk assignee must also provide to the prospective purchaser and file with the Division, a disclosure statement that includes, but is not limited to, a description of any rights of the developer assigned to the bulk assignee or bulk buyer, a statement relating to the seller’s limited liability for warranties of the developer; and if the condominium is a conversion, a statement relating to the seller’s limited obligation to fund converter reserves or to provide converter warranties.
The law prohibits a bulk assignee, while it controls the board, to waive or reduce reserve funding, or use reserve expenditures for other purposes unless approved by a majority of the voting interests not controlled by the developer, the bulk assignee, and the bulk buyer. A bulk assignee or a bulk buyer must comply with the requirements of s. 718.302, F.S., regarding contracts entered into by the association during the period the bulk assignee or bulk buyer maintains control of the board. Additionally, unit owners must be afforded all of the protections contained in s. 718.302, F.S., regarding agreements entered into by the association during the period the bulk assignee, bulk buyer or developer controlled the board.
A bulk buyer must comply with the requirements of the declaration regarding the transfer of any unit by sale, lease, or sublease. A bulk buyer is not entitled to any exemptions afforded a developer regarding the transfer of a unit, including sales, leases or subleases.
Liability of Developers and Others–s.718.708, F.S.
An assignment of developer rights does not release the original developer from any liabilities under the declaration or the Condominium Act. The original developer’s liability is not limited for claims brought by unit owners, bulk assignees, or bulk buyers for violations of the Condominium Act unless specifically excluded. Other than as therein described, the Distressed Condominium Relief Act does not waive, release, compromise or limit liability [of developers and others] established pursuant to the Condominium Act. HOMEOWNERS’ ASSOCIATION
Assignment of Rents – s.720.3085(8), F.S.
Similar to condominium and cooperative associations, homeowners’ associations may demand tenant rent in the same method and manner as it relates to a parcel in the case of delinquent unit owner. (Also, see Assignment of Rents – s.718.116(11), F.S.)
Suspension of Use of Common Areas – s.720.305(2), F.S.
Similar to condominium associations, an association is authorized to suspend the right of a homeowner to use the common areas and facilities where the homeowner is more than 90 days delinquent in paying a monetary obligation due the association. Also similar to condominium law, the suspension of use rights do not apply to the portion of the common areas that must be used to provide access to the parcel or utility services provided to the parcel. If an association imposes a fine or suspension, the association must provide written notice to the owner, the owner’s tenant, licensee or invitee of the owner. Written notice must be provided by mail or hand delivery which arguably means receipt of the notice itself. Additionally, the law has been changed to provide that a fine of less than $1,000.00 may not become a lien against a parcel. This presumably means then that a fine of more than $1,000.00 may become a lien against a parcel. The statute allows the governing documents to raise the ceiling on fines above $1,000.00. The Firm recommends that the governing documents be amended to make the change increasing the ceiling and allowing for liens in excess of $1,000.00. The law was also amended to require notice and a hearing for suspensions and arguably, fining, as well, given the legislature having struck the notice and hearing exemption previously contained in the homeowners’ association law and now appearing as described in s.718.303(4), F.S. (Also, see, Suspension of Use of Common Areas –s.718.303(3) and (4))
Note that the legislature did not amend s.720.305(3), which provides that if the governing documents so provide, an association may suspend the voting rights of a member for non-payment of regular annual assessments that are delinquent in excess of 90 days. As a result, the Firm continues to recommend governing document amendments in order to capture the association’s right to suspend voting rights of a delinquent member. Note that the Firm does also recommend a hearing in connection with such a suspension. Further, note that the delinquency is limited, unlike condominiums, to regular annual assessments.
Budgets – ss.720.303(6)(b), (c)(2) and (g), F.S.
Upon the assumption that statutory reserves have been established pursuant to s.720.303(6)(d), F.S., s.720.303(6)(b) provides that homeowners are permitted to terminate reserve accounts upon the approval of the majority of the voting interests in the homeowners’ association. The notice requirement for financial reports has been revised where no reserve accounts have been established. There is now an additional disclosure for financial reports for reserve accounts established. The notice states that reserve funds are not subject to the restrictions on use of such funds in s.720.303(6), F.S., and are not calculated in accordance with that statute because the owners have not elected to provide for reserve accounts pursuant to the provisions of s.720.303(6), F.S. The accounting requirements for pooled reserve accounts have been amended. An association is now permitted to include, in addition to estimated earnings from investment of principal, accounts receivable minus the allowance for doubtful accounts in the reserve account’s projected annual cash inflows.
Special Assessments – s.720.315,F.S.
A developer is prohibited pre-turnover from imposing a special assessment unless a majority of non-developer parcel owners have approved the special assessment at a duly called special meeting of the membership at which a quorum is present. It is unclear whether the quorum may otherwise include the developer parcel owners for quorum purposes.
Board Compensation – s.720.303(12),F.S.
Other than a developer or its representative, directors, officers and committee members may not receive a salary or compensation from the homeowners association for the performance of their duties and may not benefit in any other way financially from service to the association. The following benefits are not though prohibited: (i) participation in a financial benefit accruing to all or a significant number of members as a result of lawful actions taken by the board including, routine maintenance, repair or replacement community assets, (ii) reimbursement for out-of-pocket expenses subject to approval in accordance with procedures established by the governing documents or approval process established by the Board, (iii) recovery of insurance proceeds from a policy maintained by the association for the benefit of its members; (iv) fees authorized by the governing documents or by advance majority vote of the voting interests, or (v) developer or its representative from serving as director, officer, or committee member of the association and benefiting financially from service to the association. The Firm can assist in developing and drafting the policies and procedures described in (ii) above.
Board Elections & Vacancies – s.720.306(9), F.S.
Members may nominate themselves, if the election process allows voting by absentee ballot, in advance of the balloting. There are also new procedures to fill vacancies on a homeowners’ association board of directors. Unless the bylaws provide otherwise, a vacancy occurring on the board before the expiration of a term may be filled for the unexpired term of the seat by the affirmative vote of the majority of the remaining directors even if those directors constitute less than a quorum. Alternatively, an election may be held to fill the vacancy.
Voting – s.720.306(8), F.S.
If secret ballots are permitted pursuant to the governing documents, an absentee ballot must be placed inside a blank inner envelope and placed inside another envelope with owner and parcel identifying information and signature of the owner on the outer envelope. Once the eligibility of the member to vote is verified and no other ballot has been submitted for that parcel the blank envelope must be removed from the outer envelope, before the ballots are counted and, added to the ballots which were personally cast. The Firm can assist in suggesting appropriate amendments to address the same.
Board or Committee Meetings – s.720.303(2)(b), F.S.
Meetings of the Board held for the purpose of discussing personnel matters are exempt from Section 720.303(2)(b) open meeting requirements. The law implies that the association attorney need not be present in order for the board to avail itself of the exemption.
Official Records – s.720 -303(5)(a) and (c), F.S.
Similar to condominium associations, certain records were added to the types of records that a homeowners’ association may not disclose to homeowners. Additionally, homeowners must now submit requests for records to the association by certified mail, return receipt requested. (Also, see Official Records - s.718.111(12), F.S.)
If the association does not have a photocopy machine available where the records are kept, or if the records requested to be copied exceed 25 pages, the association may have copies made by an outside vendor or association management company personnel. In doing so, the association may charge a member for the actual cost of copying records, to provide that the actual cost of copying records includes reasonable costs involving association management personnel fees and charges at an hourly rate for vendor or employee time to cover the administrative costs to the vendor or association. The law implies that the costs of overseeing the copying may be charged as well.
Flagpoles - s.720.304(2)(b), F.S.
In addition to criteria contained in the governing documents, flagpoles and displays are subject to all building codes, zoning setbacks, and other applicable government regulations including, but not limited to, noise and lighting ordinances in the county or municipality where the flagpole is erected.
Recreational Leaseholds – s. 720.31, F.S.
Homeowners’ associations may enter into agreements to acquire leaseholds, memberships, or other possessory or use interests in lands or facilities such as country clubs, golf courses, marinas, submerged land, parking areas, conservation and other recreational facilities. The land or facility being acquired does not have to be land or facilities contiguous to the lands of the community or whether such lands or facilities are intended to provide enjoyment, recreation, or other use or benefit to the owners. Such interests, if existing or created at the time of the recording of the declaration, must be stated and fully described in the declaration. Acquisition of such interests not entered into by agreement within the 12 months after recording of the declaration may be entered into only if authorized by the declaration as a material alteration or substantial addition to the common areas or association property. The law does not specify what approval or requirement is necessary, if any, if not the agreement is entered into post recording of the declaration but within the 12 months immediately post recordation. COOPERATIVES
Assignment of Rents – s.719.108(10), F.S.
Similar to condominium and homeowners associations, cooperative associations may demand tenant rent in the same method and manner as it relates to a cooperative share in the case of delinquent unit owner. (Also, see Assignment of Rents – s.718.116(11), F.S.)
Filling Board Vacancies - s.719.106(1)(d)6., F.S.
Unless the bylaws provide otherwise, a vacancy occurring on the board before the expiration of a term may be filled for the unexpired term of the seat by the affirmative vote of the majority of the remaining directors even if those directors constitute less than a quorum. Alternatively, an election may be held unless the association has opted out of the statutory election process.
Retrofitting Fire Sprinkler System – s.719.1055(5), F.S.
Similar to condominium associations, cooperatives may vote to forego retrofitting the common elements, association property or units with a fire sprinkler system by the affirmative vote of a majority of all voting interests.
Liens – s.719.108(4), F.S.
Associations can now also lien for authorized administrative late fees and any reasonable costs for collection services for which the association has contracted in connection with collecting unpaid rents and assessments. Liens may not be filed against a cooperative parcel until 30 days after a notice of intent to file a lien is delivered to the unit owner. The statute provides a step by step notice requirement.
A number of other laws have been amended, including:
Elevator Safety – s.399.02, F.S.
An exception to codes requiring modifications for Phase II Firefighters’ Service on existing elevators allows for a phase-in period for compliance of the certificate of occupancy for the condominium, cooperative or multifamily residential building was issued as of (and not after) July 1, 2008 for five (5) years or until the elevator is replaced or requires major modification, whichever comes first. The law does not make clear what a major modification consists of or if the component is of a non-safety character, however, it is fair to determine that if the five (5) year period elapses or the elevator is replaced than the Phase II Firefighters’ Service modifications must be incorporated.
Fire Prevention Code – s.633.0215, F.S.
Condominium, cooperative or multifamily residential buildings less than four (4) stories in height is exempt from being required to install a manual fire alarm system provided the building has a corridor providing an exterior means of egress.
Applicability of Certain Not-for-Profit Corporation Provisions – ss.617.0721, 617.0808 and 617.1606, F.S.
The provisions of the Not-for-Profit corporate law relating to voting by members are no longer applicable to condominium or cooperative associations. The law was already inapplicable to homeowners associations. Additionally, the provisions relating to the removal of directors and access to records are no longer applicable to condominium, cooperative and homeowner associations.
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The information contained in this Newsletter is intended to provide general information and is not regarded as rendering specific advice to your particular Community Association. While we make every attempt to ensure that the information contained herein is accurate and complete, the Jay Steven Levine Law Group is not responsible for any omissions, or for the results obtained from the use of this information. Furthermore, we are not responsible for the applicability of any such information to your particular situation. The information in this Newsletter does not constitute legal advice and is not intended to be a substitute for legal counsel. You are urged to contact your Association’s attorney should you have questions on the applicability of this Newsletter to your Association. Please be aware that the legal principles as referred to in this Newsletter are subject to change from time to time.
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