Condo House Bill 1021 Becomes Law
House Bill 1021 approved by the Florida Legislature and signed by the Governor of Florida on 6/14/24, is a mixed bag of laws affecting Condominium Associations that will become effective on 7 /1 /24.
House Bill 1021 is an extensive bill covering numerous topics concerning the governance and operation of Condominium Associations (not HOA’s- they got House Bill 1203 which will be reviewed at a later date). This review is not to go over every change made by the Bill but rather to highlight the changes in no particular order that can be of more importance to most Condominium Associations. Well it look like the East Coast of Florida strikes again with a few disgruntled owners selling to their Legislatures some overwhelming and burdensome new rules and regulations that are now forced on all Condominium Associations in the State to suffer apparently just because of a few large Condominiums who may have had some bad apple Managers, Directors or Officers over there. Sounds like one bad apple is spoiling the whole bunch.
HURRICANE PROTECTION:
Rather than just having to have hurricane shutter specifications on file, a Condominium Association must now have “hurricane protection” specifications which can include hurricane shutters, impact glass, code compliant windows or doors or other type of code compliant hurricane protection. The Board may adopt color, style, and other factors deemed relevant by the Board which may include adhering to the existing unified external appearance of the building scheme.
In addition to allowing the Association to install hurricane protection within unit boundaries with the approval of a majority of the owners, the law now allows the Association to require unit owners to make the installations with the same majority vote of the owners or if such requirement is contained in the Declaration. Those who already have the same type of hurricane protection previously installed by the owner and are current code compliant are not required to install new until the useful life of their existing protection has been reached or their protection could damage the common elements or units.
If hurricane protection needs to be removed so the Association can maintain, repair or replace other condominium property for which the Association is responsible for, the Association can decide if the removal and replacement work is to be done by the Association or the unit owner with costs reimbursed by the Association.
OFFICER, DIRECTOR MANAGER CRIMINAL PENAL TIES:
Any Office, Director or Manager who solicits, offers to accept or accepts anything or service of value from any persons providing or proposing to provide goods or services to the Association, without paying consideration for it, except in connection with a trade fair or education program, or a kickback, commits a third-degree felony and shall be deemed to be removed from office.
Any Office, Director or Manager who knowingly, wilfully and repeatedly violates any of the statutory requirements to provide access to inspect and obtain copies of Association records to a unit owner or an owner’s authorized representative, with an intent to cause harm to an owner, commits a second-degree misdemeanor and shall be deemed removed from office. Repeatedly is defined as 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 defaces or destroys accounting records that are required to be maintained during the period 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 first-degree misdemeanor and shall be deemed removed from office.
Any person who will fully 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 and shall be deemed removed from office.
Use of an Association debit card for an expense that has not been properly pre-approved by the Board and reflected in the written minutes or the written budget, even if otherwise a valid Association expense is the commission of theft under Florida Statutes.
Numerous acts involving Association elections are each a first-degree misdemeanor. Including making a wilfully false affidavit; fraudulently seeking to change a ballot, ballot enveloper, vote or voting certificate; using force or violence or any “tactic of coercion or intimidation: or bribery, menace, threat, or “any other corruption” to try to influence a group of unit owner’s vote; seeking to corruptly influence a vote by giving or promising “anything of value” to someone, other than a wearable campaigning advertisement of nominal value or food at an election rally or aiding an election fraud offender to avoid consequences.
In addition to the present actions providing grounds for an Officer or Director being deemed removed from office (including being charged or indicted for felony theft or embezzlement of Association funds or property), the removal grounds include the above new crimes listed above, as well as forgery of a ballot envelope or voting certificate used in an election and failure to timely provide a unit owner with access to an Association record to inspect or obtain a copy, or the destruction of an Association record which is accessible to unit owners. Repeat violations are not required for not providing the records access.
While a criminal charge is pending, the person is prohibited from serving as a Director or Officer, or having access to official records of any Condominium Association except by a court order.
MANAGEMENT RECORDS TRANSFER:
When a management contract is terminated, the manager must turn over all Association records to a new management company within 20 days. Penalty for noncompliance is the manager subject to a CAM license suspension and a civil penalty of $1,000 a day up to ten business days.
MANAGEMENT CONFLICTS OF INTEREST:
Management Companies, Manager, or any Directors, Officers or other Person with a financial interest in the Management Companies or a defined relative thereof, must disclose in writing any conflict of interest, including a contract or business with the Association for other than management services.
In such instances, if the bid for goods or services exceeds $2,500 (other than Association management services), the Association must solicit multiple competitive bids from other providers. Disclosure of the conflict must be listed on all contracts and transactional documents related to the proposed activity and disclosed in agenda text and attachments and meeting minutes. Board approval of a contract or transaction with a conflict requires approval of 2/3rds of the Directors present, and disclosure at the next members meeting unless the contract is disclosed in the management services contract. A violation allows the Association to cancel the contract for management services without penalty and subjects the manager or the management company to license discipline.
ASSOCIATION RECORDS:
Added to the list of official Association records accessible to unit owners include all invoices, transaction receipts, or deposit slips that substantiate any receipt or expenditure of funds by the Association, copy of all building permits and copy of all satisfactorily completed board member educational certificates.
The official records must be maintained in a manner that facilitates inspection of the records by a unit owner. In the event that the records are lost, destroyed, otherwise unavailable, the obligation to maintain official records includes a good faith obligation to recover those records as may be reasonably possible.
The Association may fulfill its obligation to provide access to Association records if the requested records are posted on the Association’s website, or are available for download through an application on a mobile device, and the Association directs that the records be accessed in that manner.
In response to a written request to inspect records, the Association must simultaneously provide a checklist to the requestor of all records made available for inspection and copying. The checklist must also identify any of Association’s official records that were not made available to the requestor. The checklist must be maintained for 7 years.
An Association which operates a condominium with 25 units or more must post on its website or through a mobile device an extremely long list of Association records and notices which must be constantly updated.
ANNUAL FINANCIAL REPORTING:
Unit owners may only vote to reduce the level of annual financial reporting every other year now.
BOARD MEETINGS:
If the Association operates a condominium with more than 10 units, the Board must meet at least quarterly and must include on the agenda an opportunity for Association members to ask questions with respect to reports on the status of construction or repair projects, status of revenues and expenditures during the current fiscal year, and other issues affecting the condominium. There is no requirements that anyone answer the questions. This is in addition to the right of members to comment on agenda items at any Board meeting.
If a board meeting agenda item relates to the approval of a contract for goods or services, a copy of the contract must be provided with the notice, made available for inspection and copying upon a written request from a unit owner, or made available on the association’s website or through an application that can downloaded on a mobile device.
MANDATORY DIRECTOR EDUCATION:
Previously, a new Director could choose between attending a Director Education class or sign a certificate that the Director has read the condominium documents. Now both are required for new and existing Directors by June 30, 2025. New Directors will have 90 days from the election or appointment. The education requirement is valid for 7 years from the date of the certificate and must be repeated for any Board service after that. The education course must last at least 4 hours.
