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2009 Florida Legislation Impacting Community Associations

SB 714 Most Significant Change for Community Associations.   Community Association Leadership Lobby (CALL) summarizes changes resulting from SB 714.

While there were a number of bills filed and debated this legislative session, not many of them passed.  SB 714, filed by Senator Jones, modifies the insurance provisions of the Condominium Act, extends the deadline for high-rise fire safety retrofits, clarifies board eligibility issues and repeals a law requiring an alternate power source for elevators under certain circumstances.   As of the date of this post the bill has not been signed into law.  Some of the changes include:

Insurance:

  • Condominium Unit insurance policies (“HO-6”) issued or renewed after July 1, 2009 will include at least $2,000.00 loss assessment coverage.
  • F.S. 718.111(11) now refers  to “property” insurance instead of  “hazard” insurance.
  • Removes some of the detail required in the notice of the board meeting to set the insurance deductible for the master policy.
  • Removes the requirement for each condominium unit owner to purchase contents (HO-6) coverage
  • Removes the requirement to name the Association as a loss payee and an additional insured on HO-6 policies issued to condominium unit owners.

Board Elections:

  • F.S. 718.112(2)(d)1 will allow co-owners to serve on the same board of directors if they own more than one unit and are not co-occupants of a unit.
  • Directors will be disqualified from serving on the board by F.S. 718.112(2)(d)1 to include special assessments and fines within financial delinquencies that can disqualify a director.
  • Pre-election candidate certification forms are no longer required. However, within 90 days of election, each newly elected Director shall certify that they have read the Condominium Documents, that they will work to uphold such documents and policies to the best of their ability, and that they will faithfully discharge their fiduciary duty.  In lieu of this certification, the newly elected Director may submit a certificate of satisfactory completion of educational curriculum administered by a Division-approved education provider.   Failure to comply will result in disqualification, but does not affect the validity of any appropriate action taken by the board.

Fire Sprinklers:

  • F.S. 718.112(2)(l) will be modified to push the deadline for sprinkler retrofitting from 2014 to 2025.

Fire Alarm Systems:

  • F.S. 633.0215 would provide that a condominium that is one or two stories in height and has an exterior means of egress corridor is exempt from installing a manual fire alarm system as required in s. 9.6 of the most recent edition of the Life Safety Code adopted in the Florida Fire Prevention Code.

Timeshare Condominiums:

  • Timeshare condominiums would not be subject to the requirement that the terms of all members of the board expire at the annual meeting unless otherwise permitted by the bylaws.
  • Co-owners could serve on the board of a timeshare assocaition at the same time.

Generators for Elevators:

  • Section 553.509(2), Florida Statutes would be repealed meaning multifamily dwellings of at least 75 feet in height will not need at least one public elevator capable of operating on an alternate power source for emergency purposes and to have a written emergency operations plan.

Community Association’s Institute’s Florida Legislative Alliance also announced its review of the 2009 Florida Legislative Session.  It’s Chairman, William D. White, announced that the 2009 Regular Session was extended by a week to enable the Legislature to complete its work on the 2009/10 Appropriations Act.  CAI continued to work on the submerged land lease issue which greatly impacted DEP’s (Department of Environmental Protection) budget.   SB 1012, originally slated to increase fees payable by community associations for submerged land leases, died in Conference Committee.

CAI-Florida Legislative Alliance (CAI-FLA) and it Lobbyist, Travis Moore, spent many, many hours working on community association legislation right through the final weeks of the session. This included significant work on SB 880/HB 831, SB 714/HB 419, SB 2302/HB 1397, HB 27, SB 998, etc. Mr. Moore met numerous times with Senator Nancy Detert working on “right of first refusal” language for mobile home associations which passed the Senate but failed to pass the House before the session ended. Additionally, there were numerous meetings with various interest groups, committee staff, and scores of legislators including Senators Fasano, Deutch, Ring, and other Senators, as well as Representatives Frishe, Robaina, Sachs, Jenne, Holder, Ambler, Grady and Domino.

The CAI-FLA-sponsored bill, SB 880, was passed out of the Senate Regulated Industries, Senate Community Affairs’ Committee and the Senate Judiciary Committee. It made it to the Floor of the Senate.  However, ultimately the legislation died.

Bills of Industry Interest Passed by the Legislature

HB 1495, ending the Citizens’ rate freeze;
SB 2430 addressing the payment of dock stamps on foreclosed properties;
SB 2064 changing the construction lien laws; and
HB 821 changing the CDD statutes

CAI-FLA also announced that it will be working with the leaders of the Community Association Leadership Lobby (CALL) and other organizations to draft legislation addressing financial burdens on associations from the existing lender caps.  In addition to the collection statute, CAI-FLA will continue to work on language for a “Distressed Condominium-Bulk Buyer” program to better define the role of foreclosing institutions when taking control of failed communities with defaulted developer loans.

 

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9 Comments
  • Avatar
    Florida Condo & HOA Legal Blog
    May 29, 2009

    Insider’s Analysis of the 2009 Legislative Session Webinar

    Close to 200 Community Leaders and Professional Property Managers participated in the first of a series of webinars presented by Becker & Poliakoff, P.A. On Wednesday, May 28, 2009, CALL presented a webinar explaining legislative activities during …

  • Avatar
    Florida Condo & HOA Legal Blog
    May 29, 2009

    Insider’s Analysis of the 2009 Legislative Session Webinar

    Close to 200 Community Leaders and Professional Property Managers participated in the first of a series of webinars presented by Becker & Poliakoff, P.A. On Wednesday, May 28, 2009, CALL presented a webinar explaining legislative activities during …

  • Avatar
    Julia Donhoe
    June 7, 2009

    In preparation of next years election of board members, where or how do I find a division approved education provider. How will the new member become aware of the educational curriculum to obtain a certificate of satisfactory completion.
    Thank you

  • Avatar
    Richard Lovell, LCAM
    June 24, 2009

    I have read through many sections of the statutues and I need some guidance. I am an LCAM on a large condominium conversion that is only 50% sold and still in developer control. The developer has been foreclosed on by the lender and the lender has appointed a Receiver for the property. Both the lender and the Receiver want to replace the Developer Board members (2 of 3). What steps need to be taken for this to happen? 505 0f the 1,000 units have previously sold, leaving 495 units taken over by the lender. The developer had also been fully funding the association budget for the monthly assessments on the unsold 495. The lender has also been funding the developers’ share since the default. I don’t know how to proceed or advise. Would the developer President and Vice president, at the request of the lender, need to call a Board meeting, describe for the records what has occurred, and announce their resignations and the installation of the receivers as Board members? I would appreciate any recommendations you could provide.
    Thanks,

  • Avatar
    Holly dye
    August 31, 2009

    My Secretary has called an emergency meeting in two days. I will not be able to attend. I am the HOA President. She knew this in advance. She called a meeting in the street at night. Is it legal of her to do this?

  • Avatar
    Becky Noble
    September 16, 2009

    If a board member’s home has gone into foreclosure, can that board member remain on the board, or does he/she need to resign from the board?

  • Avatar
    David Tenny
    September 21, 2009

    What are the limits of someone serving on the board for 2 year term after term Can the Vice President run for the seat of the President?

  • Avatar
    Bob Barnett
    December 17, 2010

    I just attended the B-P Webinar on long term maintenance.
    I thought I heard that SB1196 had a provision where a Condo could opt-out of common area sprinklers. Is there such a provision?
    RESPONSE: Yes. Read the lead article in the Firm’s November issue of Community Update for detailed information. There is a link to the Community Update on the right hand side of the blog in the ‘links’ section.

  • Avatar
    karen solomon
    February 3, 2011

    If an owner/Board Member, living in another State, wants access to all records (Association financial files on line amanger’s software and is taking over the financial running if the Association. 165 unit Condo with 24 of them Time Share Units and 4 commercial units. Someone said SB 530 does not allow that?
    RESPONSE: Changes have been made to the official records portion of the condominium act in 2010. Please review posts by searching “official records” in the space provided on the right hand side of this site.