Florida lawmakers revised Chapter 718, Florida’s Condominium Act, once again following the 2024 Legislative Session through House Bill 1021, which was signed by Governor DeSantis and became effective July 1, 2024. One of the most surprising revisions to some, was the addition of criminal penalties for certain conduct in violation of Chapter 718.
Specifically, Section 718.111(1)(a), Florida Statutes, was amended to preclude an officer, director, or manager from knowingly soliciting, offering to accept, or accepting a “kickback” as defined by Section 718.103(20), Florida Statutes, as “any thing or service of value, for which consideration has not been provided, for any officer’s, a director’s, or a manager’s own benefit or that of his or her immediate family, from any person proposing to provide goods or services to the association.”
Any officer, director, or manager who does so commits a felony of the third degree, which carries a term of imprisonment not to exceed 5 years and a fine not to exceed $5,000. Such conduct is also subject to civil penalty through the Division of Florida Condominiums, Timeshares, and Mobile Homes and removal from office, which has left many Board members and Managers alike wondering if they should continue to accept the various coffee mugs, donuts, cookies, and other tchotchkes that are often dropped off by vendors looking to do business with their respective associations.
The statute does carve out certain small exceptions. Chapter 720, Florida Statutes, for Homeowners Associations (only), provides that the following limitation is imposed, “. . . an officer, a director, or a manager may accept food to be consumed at a business meeting with a value of less than $25 per individual or a service or good received in connection with trade fairs or education programs.” When this issue arises, speak with you community association attorney to avoid any pitfalls.