Florida Condo & HOA Legal Blog : Florida Condo Lawyer & Attorney : Becker & Poliakoff Law Firm : Condominium & HOA Law Blog

Have doubts about the 2010 laws?  Can you cut off cable or not?  Does a tenant have to turn over the entire rent check?  Can you still publish a directory?  There are several bills impacting associations filed for consideration by the 2011 legislature - some clearing up unresolved ambiguities.  Here is a preview of the issues raised in bills tracked by the Community Association Leadership Lobby (CALL). 

SB 530/HB 1035:  This is the bill partially drafted by the CALL team.  If it becomes law it will:

• Enable owners to review employment agreements and see financial records that show compensation paid to employees.
• Clarify that owners may allow the association to publish a directory or other document with their phone numbers, email addresses and other contact information. 
• Allow condo boards to hold closed meetings to discuss personnel matters, without an attorney being present, just like homeowners’ association boards. 
• Enable condos and HOAs to pass management collection fees on to the delinquent owner.
• Make it perfectly clear that all rent shall be paid to the association until a unit owner's delinquency is paid in full.
• Clarify the procedure to suspend use and voting rights (when an owner is delinquent for more than 90 days), as well as some other issues.

SB 328/HB 59:  Specifically permitting process servers in to common areas of condominiums, gated communities, or any secured residential areas without notice when serving a summons or other process.

SB 332/HB 173:  Equalizing treatment of multi-family (i.e. condominiums) and single family residences with respect to submerged land leases. Currently, multi-family residences are treated like commercial, profit-making entities.

SB 476/HB 883:  Addressing public lodging establishments. Chapter 509 creates two classes:1) transient (allows rentals more than three times per year for periods of a month or less); and 2) non transient (rentals for a month or more). This bill raises the transient/non transient threshold from one month to six months.

SB 646:  Requiring a mobile home park owner to notify the officers of the homeowners’ association created by ss. 723.075-723.079 of a bona fide offer for purchase.

SB 650/HB 423:  Allowing local governments to enforce violations of certain mobile home statutes and requiring notice before a park owner can evict a mobile home owner because of a change in land use.

SB 712:  Making is perfectly clear that condo boards can suspend use of recreational facilities, meeting rooms, gyms, pools, cable television, internet service and valet service when an owner is more than 90 days delinquent.

SB 832/HB 583:  Requiring the Division to notify a mobile home homeowners’ association before approving changes to the prospectus or offering circular.  Prospective tenants will receive a “mobile home expense disclosure document.”  The bill also defines the “market area or competitive area” for comparable mobile home parks.

SB 1112:  Requiring condo and coop boards to provide the local property appraiser with a list of units rented during the previous year, so the property appraiser can investigate possible violations of homestead laws.

SB 1132:  Prohibiting immediate family members in the same unit from serving on the board of a cooperative association together.

SB1288/HB 799:  Adopting a non-judicial foreclosure process for commercial property, including commercial condos.

SB 1516/HB 1195:  For both condos and HOAs, this bill would:

• Require insurance companies to notify all owners (by certified and regular mail) if the board cancels or does not renew its required insurance coverage (50 units or less) and enable a majority of the voting interests to direct the board to obtain substitute coverage.
• Provides that associations may install impact glass or other code-compliant windows in certain circumstances. 
• Specify that rent paid to the association by tenants will apply to outstanding and future monetary obligations. 
• Relieve the association from joint and several liability when it takes title to a property by foreclosure or deed in lieu thereof.
• Give HOA owners the right to speak at board meetings on any agenda item (for at least 3 minutes) without a special petition.
• Require “condo-style” elections for homeowners’ associations (60-day notice, written self-nominations, second notice, two-envelopes, secret ballots, etc.).
• Prohibit co-owners in an HOA from serving as board members together unless they own more than one parcel or unless there are not enough eligible candidates to fill the vacancies on the board.
• Specify that anyone more than 90 days delinquent is not eligible for board membership.
• Prohibits convicted felons from serving on the HOA board unless their civil rights have been restored for at least 5 years as of the date on which such person seeks election to the board.

 Stay tuned for updates and progress on these and other bills during the session.  Look out for Capitol Conversation posts on this site as well.

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The Community Association Leadership Lobby (CALL) Announced Last Week it is Working on a 'Glich' Bill to Clarify Several Community Association Rights and Remedies.

The purpose of the CALL bill is to make proposed changes to Chapters 718, 719 and 720, Florida Statutes to address certain “glitches” resulting from SB 1196.  Co-Executive Directors Yeline Goin and David Muller explained that any large piece of legislation is likely to have unintended consequences and need further clarification.
 

So far, the CALL bill proposes many important legislative items, such as:

• Allowing condo boards to meet in private to discuss personnel matters just like HOA boards;
• Allowing condos and HOAs to collect management company collection charges from delinquent owners and clarify the parameters of action on the part of management;
• Ensuring that rent collected from a tenant is applied to the oldest balance on the unit owner's account; and
• Ending any argument that cable or television programming is a “utility service” - authorizing immediate suspension when a unit owner is more than 90 days delinquent. 

The CALL team always entertains comment from its members.  If you are a member or would like more information, please visit www.callbp.com or email call@becker-poliakoff.com.
 

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Thank you everyone for the thoughtful questions and comments regarding SB 1196.  I have literally received hundreds of questions and comments over the past week - either through this site or by email.  Since many of the questions relate to the same issues, I'd like to share some of the responses. 

QUESTION:  Rumor has it that the Governor has a bill before him that would raise the voting approval to 75% for apparently new Condo and/or HOA amenities. True or false?

RESPONSE: You may be referring to the new section 720.31, Florida Statutes. It says that HOAs can acquire leased property, memberships and other interests in lands or facilities (including country clubs, marinas, golf courses, etc.) more than a year after recording the Declaration if the governing documents contain that authority or if 75% of the members agree.

QUESTION:  Are cable TV services considered a utility? Our HOA pays approx. $50 per month per unit for basic services. Comcast has refused to cut the services for those people who have stopped paying their maintenance fees, even if we pay the monthly dues and pay for the service to shut off the service. Without cable TVs service, it might give those people who have refused to pay their maintenance fees, an incentive to do so.

RESPONSE: You hit the $64,000 question. Maybe Comcast will change its policy as a result of the new law. I understand Comcast (and perhaps some other providers) believed that suspending service to individuals constituted a violation of the telecommunications act and federal regulations. Check back in a few weeks - we will be sure to post something related to suspending cable/television programming and are planning a webinar devoted to telecommunication issues in light of SB 1196. 

(P.S.  If your community is paying $50 per month for basic bulk services it should attempt to renegotiate that deal.)

QUESTION: Please inform me if there is a new requirement for board members to take a class or an exam to run for the board otherwise the association will be null and void.
Is this something new? please let me know

RESPONSE: The new law (effective July 1) requires board members to provide the association with a certification or evidence of completion of an approved course within 90 days of being elected or appointed.

QUESTION: Does SB1196 say anything about the requirement of installing hard wired smoke detectors in condominium buildings that are less than 3 stories in height? Is it still a requirement in these buildings?

RESPONSE: SB 1196 contains a provision that allows buildings of less than 4 stories with outside access (catwalks) to avoid installing manual fire alarms.

QUESTION: The new law stipulates that upon foreclosure the lender must now pay up to 12 months of back hoa dues or 1% of loan balance vs 6 months. Is that effect immediately once the bill goes into effect regardless of when the loan was placed on the property?

RESPONSE: While it is hard to predict how the lenders will interpret the bill, many community association attorneys believe that the new law will apply to acquisitions of title by lenders that take place July 1, 2010 forward, if the original mortgage was recorded after April 1992 (the effective date of the "safe harbor").

Remember, this information doesn't constitute legal advice & these responses are general in nature. Please consult with counsel to determine how the new laws will impact your operations.

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