House Bill 73 and House Bill 7119 were signed into law and will become the law of the land on July 1, 2013. Let’s take a look at a few highlights of this legislation.
Official Records. A condominium and homeowners’ association shall allow a member, or his or her authorized representative, to use a portable device, including a smart phone, tablet, portable scanner, or any other technology capable of scanning or taking photographs, to make an electronic copy of the official records in lieu of the association’s providing the member, or his or her authorized representative, with a copy of such records. The association may not charge a member, or his or her authorized representative, for the use of a portable device.
Member Directories. A condominium and homeowners’ association may print and distribute, to parcel owners, a directory containing the name, parcel address, and telephone number of each parcel owner. However, an owner may exclude his or her telephone number from the directory by requesting in writing to the association.
Board Member Certification Requirements. Similar to the already existing condominium board member certification requirements, within 90 days after being elected or appointed to the board, all cooperative and homeowners’ association board members must either 1) submit a certificate of having satisfactorily completed the educational curriculum administered by a division-approved education provider within 1 year before, or 90 days after, the date of election or appointment OR 2) certify in writing to the secretary of the association that he or she has read the association’s declaration of covenants, articles of incorporation, bylaws, and current written rules and policies; that he or she will work to uphold such documents and policies to the best of his or her ability; and that he or she will faithfully discharge his or her fiduciary responsibility to the association’s members. The written certification or educational certificate is valid for the uninterrupted tenure of the director on the board. A director who does not timely file the written certification or educational certificate shall be suspended from the board until he or she complies with the requirement. The board may temporarily fill the vacancy during the period of suspension.
Election Challenges. Any condominium or homeowners’ association election challenge must be filed within 60 days of the date of the election or the challenge is forever time barred. On the other hand, no recall of an existing board member may be conducted during the first 60 days of the board member’s service on the board.
HOA Amendments. Within 30 days after recording an amendment to a homeowners’ association’s governing documents, the association must provide copies of the amendment to the homeowners’ association’s members.
Member’s Right to Speak at HOA Members Meeting. The requirement that a member provide advance written notice to exercise their right to speak on all items on the agenda was deleted. Therefore, notwithstanding any provision to the contrary in the governing documents, or any rules adopted by the board or by the membership, a member and a parcel owner have the right to speak for at least 3 minutes on any item.
HOA Budgets. If reserve accounts are established by the developer, the budget must designate the components for which the reserve accounts may be used.
Financial Reporting for Homeowners’ and Condominium Associations. The threshold dollar values have changed. Total revenue of $100,000 $150,000 or more, but less than $200,000 $300,000, requires the association to prepare compiled financial statements.
Total revenue of $200,000 $300,000 or more, but less than $400,000 $500,000, requires the association to prepare reviewed financial statements.
Total revenue of $400,000 $500,000 or more, requires the association to prepare audited financial statements.
Total revenue of less than $100,000 $150,000, the association shall prepare a report of cash receipts.
An association that operates fewer than 75 50 units, regardless of the association’s annual revenue, shall prepare a report of cash receipts and expenditures in lieu of financial statements (as set out above).
Staggered Terms for Condominium Board Members. Reference to staggered terms and requirements for unit owner approval was deleted from The Condominium Act and replaced with the following, “If a condominium association’s bylaws or articles of incorporation permit terms of no more than two years the association board members may serve two year terms.”
Condominium Association Hurricane Protection. The Condominium Act was amended to include impact glass, code-compliant windows or doors, or other types of code-compliant hurricane protection meaning that a unit owner who has installed other types of code-compliant hurricane protection that comply with the current applicable building code is entitled to receive a credit when the same type of other code-compliant hurricane protection is installed, and the credit shall be equal to the pro-rata portion of the assessed installation cost assigned to each unit.
Manager Liability. A new law was created that provides for disciplinary measures if a manager violates any provision of Chapter 718, Chapter 719, or Chapter 720 during the course of performing community association management services pursuant to a contract with a community association.