2024 LEGISLATIVE UPDATE SUMMARY

By:
Steven R. Braten, Shareholder
Paula S. Marra, Shareholder
Stephanie C. Galloway, Associate

Florida has recently enacted new legislation and implemented changes to various regulations that significantly impact community associations. Many of these changes have either already taken effect or will take effect starting July 1, 2024. To ensure our clients are well-informed about these recent developments in Florida state law pertaining to community associations, we have compiled the following summary of the new laws resulting from the latest session of the Florida State Legislature.

CONDOMINIUM LAWS

House Bill 1029 – My Safe Florida Condominium Pilot Program

Creates the “My Safe Florida Condominium Pilot Program” within the Florida Department of Financial Services (DFS), to provide hurricane inspections and hurricane mitigation grants to eligible Condominium Associations.
Participation Requirements

Must be an association for a condominium located within 15 miles of the coastline. The Pilot Program is not available to individual unit owners.
To apply for an inspection, the condominium association must receive approval by majority vote of the board of directors or a majority vote of the total voting interests of the association.
To apply for a grant, an association must receive both of the following:

Approval by a majority vote of the Board of Directors or a majority vote of the total voting interests of the association to participate in a mitigation inspection.
A unanimous vote of all unit owners within the building that is the subject of the mitigation grant.

The votes required may take place at the annual budget meeting or at a unit owner meeting called for the purpose of taking such vote.
Before a vote may be taken, the association must provide the unit owners a clear disclosure of the Program on a form created by the Department of Financial Services. See https://msflh.com/condos/
The President and Treasurer of the Board of Directors must sign the disclosure form indicating that a copy of the form was provided to each unit owner of the association. The signed disclosure form and the minutes from the meeting at which the unit owners voted to participate in the Program must be maintained as part of the Official Records.
Within 14 days after an affirmative vote to participate in the Pilot Program, the association must provide written notice in the same manner as required under s. 718.112(2)(d), Florida Statutes, to all unit owners of the decision to participate in said Program.

Hurricane Mitigation Inspections

Licensed inspectors selected by DFS are to provide inspections of the property to determine the mitigation measures that are needed, the insurance premium discounts that may be available to the association, and the improvements to existing properties of the association that are needed to reduce a property’s vulnerability to hurricane damage.
At a minimum, inspections must include the following:

An inspection of the property, and a report that summarizes the results and identifies recommended improvements the association may take to mitigate hurricane damage;
A range of cost estimates regarding the recommended mitigation improvements; and
Information regarding estimated insurance premium discounts, correlated to the current mitigation features and the recommended mitigation improvements identified by the inspection.

An application for an inspection must include a signed or electronically verified statement made under penalty of perjury by the association’s President. This statement must confirm that the association has submitted only a single application for each property that it operates.
An association may apply for and receive an inspection without also applying for a grant.

Mitigation Grants

An application for a mitigation grant must: 1) contain a signed or electronically verified statement made under penalty of perjury by the association’s President that the association has submitted only a single application for each property that the association operates; 2) include a notarized statement from the association’s President containing the name and license number of the contractor the association intends to use for the mitigation project; and 3) include a notarized statement from the association’s President which commits to DFS that the association will complete the mitigation improvements.
If awarded, grants may be used for opening protection, exterior doors, including garage doors, reinforcing roof-to-wall connections, improving the strength of roof-deck attachments and secondary water resistance for roof. The maximum total grant award may not exceed $175,000 per association.
Construction must be completed, and the association must submit a request for final inspection to DFS within 1 year after receiving grant approval. If the association fails to comply, the application is deemed abandoned, and the grant money reverts back to DFS.

If an application for an inspection or grant is deficient, DFS may request additional information from the applicant. The application will be deemed withdrawn if DFS does not receive a response to this request within 60 days. It is anticipated that Program applications will not be publicly available for use until the Fall of 2024 but see the above link for more information.
These laws take effect July 1, 2024.

House Bill 1021 – Community Associations

Community Association Managers

Community association managers (CAMs) and community association management firms (CAM Firms) must return all community association records in their possession within 20 business days of termination of a services agreement or a written request whichever occurs first. However, CAMs or CAM Firms may retain, for up to 20 business days those records necessary to complete an ending financial statement or report.
Any CAM or CAM Firm that fails to timely return community association records is subject to suspension of its license under s. 468.436, and a civil penalty of $1,000 per day for up to 10 business days, assessed beginning on the 21st business day after termination of a contractual agreement to provide community association management services to the community association or receipt of a written request from the association for return of the records, whichever occurs first.
CAMs and CAM Firms must disclose to the Board of Directors any potential conflict of interest, including:

A CAM, CAM Firm, or their directors, officers, or financially interested persons, or their relatives, entering into a contract for goods or services with the association.
A CAM, CAM Firm, or their directors, officers, or financially interested persons, or their relatives, holding an interest in or receiving compensation from a business entity that does business with or proposes a contract with the association.

If the association considers a bid over $2,500 for goods or services (excluding community association management services) from a CAM, CAM Firm, their directors, officers, financially interested persons, or their relatives, it must also solicit multiple bids from other third-party providers.
If a CAM or CAM Firm, including directors, officers, financially interested persons, or their relatives, proposes to engage an activity that is a conflict of interest:

The proposed activity must be listed on the agenda of the next Board meeting and all contracts and other documents related to the proposed activity must be attached to the agenda.
The possible conflict of interest must be entered into the written minutes of the meeting.
Approval of the contract or transaction requires a two-thirds vote of all Directors present.
At the next member meeting, the conflict and contract must be disclosed to the members.

If a conflict of interest in an existing management contract was previously disclosed, it does not need to be noticed and voted on again during the contract term, but must be noticed and voted on upon renewal.
The association may cancel its community association management contract with the CAM or the CAM Firm, if the Board finds that a CAM or a CAM Firm, including directors, officers, and persons with a financial interest in a CAM firm, or a relative of such persons have a conflict of interest. If such contract is canceled, the association is only liable for the reasonable value of the goods and services provided up to the time of cancellation.

Milestone Inspections

Currently, single-family, two-family, and three-family dwellings are exempt from the milestone inspection requirements. Four-family dwellings with three or fewer habitable stories above ground are now exempt as well.

Official Records of the Condominium Association

If records are lost or destroyed, there is a good faith obligation to obtain and recover the records as is reasonably possible.
Email addresses and facsimile numbers are accessible to unit owners only if consent is given to receive notices via electronic transmission, or the unit owner has expressly allowed sharing such personal information with other unit owners, and the unit owner has not opted out of this sharing with other unit owners. Sharing such personal information with third parties is prohibited.
Effective January 1, 2026, a condominium association with 25 or more units is required to post digital copies of specified documents on its website or mobile device application. The threshold was previously 150 or more units.
Official records now include building permits and completed Board member education certificates. Also, accounting records that must be maintained as official records now include all invoices, transaction receipts or deposit slips that substantiate any receipt or expenditure of association funds.
Official records must be provided to a unit owner at no charge if the Division of Condominium, Timeshares, and Mobile Homes (division) within the Department of Business and Professional Regulation (DBPR) subpoenas records an association has failed to timely provide in response to a unit owner’s written request.
In response to a written request to inspect records, the association must provide a checklist of the available official records for copying and inspecting and the records that are not available. This checklist must be maintained for 7 years. An association delivering a checklist and affidavit creates a rebuttable presumption that the association has complied.

Criminal Violations

There are criminal penalties for refusing to release or destroying official records:

Any member of the Board or association or CAM to knowingly, willfully, and repeatedly (at least twice within 12 months) violate any specified requirements relating to inspection and copying of official records of an association commits a second-degree misdemeanor.
A person who: (1) knowingly or intentionally defaces or destroys accounting records that were required to be maintained for a certain period of time, or (2) knowingly or intentionally fails to create or maintain accounting records with the intent of causing harm to the association or one or more of its members commits a first-degree misdemeanor and is subject to civil penalty.
A person who willfully and knowingly refusing 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 third-degree felony.
Accepting kickbacks is subject to criminal penalty:
An officer, director, or manager of a condominium association to knowingly solicit, offer to accept, or accept a kickback commits a third degree felony.
Also, the following actions relating to condominium association elections is a fraudulent voting activity and constitutes a first-degree misdemeanor:

Willfully and falsely swearing to or affirming an oath or affirmation, or willfully procuring another person to falsely swear to or affirm an oath or affirmation, in connection with or arising out of voting activities.
Perpetrating or attempting to perpetrate, or aiding in the perpetration of, fraud in connection with a vote cast, to be cast, or attempted to be cast.
Preventing a member from voting, or preventing a member from voting as he or she intended, by fraudulently changing or attempting to change a ballot, ballot envelope, vote, or voting certificate of the member.
Menacing, threatening, or using bribery or any other corruption to attempt, directly or indirectly, to influence, deceive, or deter a member when voting.
Giving or promising, directly or indirectly, anything of value to another member with the intent to buy the vote of that member or another member or to corruptly influence that member or another member in casting his or her vote. This provision does not apply to any food served which is to be consumed at an election rally or a meeting or to any item of nominal value which is used as an election advertisement, including a campaign message designed to be worn by a member.
Using or threatening to use, either directly or indirectly, force, violence, or intimidation or any tactic of coercion or intimidation to induce or compel a member to vote or refrain from voting in an election or on any particular ballot measure.
Knowingly aiding, abetting, or advising a person in the commission of a fraudulent voting activity related to association elections.
Agreeing, conspiring, combining, or confederating with at least one other person to commit a fraudulent voting activity related to association elections.
Having knowledge of a fraudulent voting activity related to association elections and giving any aid to the offender with intent that the offender avoid or escape detection, arrest, trial, or punishment (not applicable to attorneys).
Officers and directors charged with a criminal violation under Chapter 718, Florida Statutes, are deemed removed from office and a vacancy declared

Budgets, Financial Reporting, and Reserves – Condominiums and Cooperatives

Associations are required within 45 days after the receipt of a Structural Integrity Reserve Study (SIRS) to either distribute a copy of the SIRS to each unit owner; or deliver to each unit owner a notice that the completed study is available for inspection and copying upon a written request. The notice may be provided electronically.

Associations are prohibited from reducing the required type of financial statement (compiled, reviewed, or audited financial statements) for consecutive years.
Associations are allowed to temporarily pause the funding of reserves or a reduce reserve funding if the entire condominium building is uninhabitable due to a natural emergency, as determined by the local enforcement agency, upon majority approval of the members.
Condominium and cooperative associations must notify the division within 45 days after the SIRS is completed. By January 1, 2025, the division must create a database of associations that have completed the SIRS. After December 31, 2024, the division must include in its annual report a list of all associations that have completed the SIRS.

Meetings of Condominium Associations

Associations of 10 or more units must meet quarterly and 4 times each year the agenda must allow members to ask questions concerning the status of construction or repair projects, revenues and expenditures, and other condominium issues; and
The notice for meetings on assessments must include the cost and purpose of assessments and a copy of any proposed contract.

Director Education

An existing director and a newly elected or an appointed director is required to submit to the secretary of the association both the writing certification and a certificate of completing the educational curriculum.
Directors must complete 4 hours of training for initial education and renewal of the education certificate which includes instruction on milestone inspections, SIRS, elections, recordkeeping, financial literacy and transparency, levying of fines, and meeting requirements.
Directors must annually complete at least one hour of continuing education about recent changes to the condominium laws and rules during the past year; and
A director of a residential condominium that was elected or appointed before July 1, 2024 must comply with the written certification and educational certificate requirement by June 2025.
The written certification and educational certificate are valid for 7 years after the date of issuance and does not have to be resubmitted as long as the director serves on the board without interruption during a 7-year period.
After the certificates are submitted, directors are required to annually submit to the secretary of the association a certificate of having satisfactorily completed a one-hour of continuing education administered by the Division, or Division-approved condominium education provider, relating to any recent changes.
The association is required to retain the educational certificates of the directors for 7 years, instead of 5 years.
On the certification form provided by the Division, the directors of the association must certify that each director of the association has completed the written certification and educational certificate requirements. This certification requirement does not apply to the directors of an association governing a timeshare condominium.

Voting in Condominium and Cooperative Associations

Associations must notify a unit owner or member that his or her voting rights may be suspended due to nonpayment of a fee or other monetary obligation at least 90 days before an election.
Owners may consent to electronic voting in elections by using an electronic means of consent.
If the Board authorizes online voting, the Board must honor a unit owner’s request to vote electronically at all subsequent elections, unless the unit owner opts out.

Hurricane Protections

Section 718.113, Florida Statutes, has been amended to ensure uniformity in hurricane protection throughout the state regardless of when condominiums were created.
Each Board of Directors of a residential condominium or mixed-use condominium must adopt hurricane protection specifications for each building within each condominium operated by the association which may include color, style, and other factors deemed relevant by the Board.
The installation, maintenance, repair, replacement, and operation of hurricane protection in accordance with the hurricane protection requirements is not considered a material alteration or substantial addition to the common elements or association property.
A unit owner is not responsible for the cost of any removal or reinstallation of hurricane protection if:

The unit owner installed the hurricane protection and
Its removal is necessary for the maintenance, repair, or replacement of the condominium property or association property for which the association is responsible.

If such removal or installation is completed by the association, the association may not charge that cost to the unit owner. If such installation of removal is completed by the unit owner, the association must reimburse the unit owner for the cost or apply the cost as a credit toward future assessments.
If hurricane protection must be removed for reasons other than during the Association’s performance of maintenance, repair, or replacement of condominium or association property for which the Association is responsible, the Board must determine if the responsibility for the removal or reinstallation, including associated costs, falls on the unit owner. If the Association undertakes the removal or reinstallation, the incurred costs may be charged to the unit owner. These charges are enforceable as an assessment and may be collected accordingly.
If hurricane protection that complies with or exceeds the current applicable building code has been previously installed, the Board may not install the same type of hurricane protection or require that unit owners install the same type of hurricane protection unless the installed hurricane protection has reached the end of its useful life or it is necessary to prevent damage to the common elements or the unit.

SLAPP and Defamation Suits

A condominium association cannot engage in “strategic lawsuits against public participation” or “SLAPP suits,” which occur when association members are sued by individuals, business entities, or governmental entities for matters arising out of a unit owner’s appearance and presentation before a governmental entity on matters related to the condominium association.
Condominium associations are prohibited from taking the following actions against unit owners who report complaints to government agencies, law enforcement, or publicly criticize the association’s operation or management:

Retaliating by increasing assessments, or threatening to initiate actions for possession or other civil actions.
Using association funds to support defamation, libel, or tortious interference lawsuits against a unit owner.

Condominium Officers and Directors

Attendance of an officer or director at a Board meeting is sufficient to constitute a quorum for the meeting and for any vote taken in his or her absence when the director is required to leave the room during the discussion and the taking of a vote on a contract in which the director, or his relative, has an interest.

Division of Condominium, Timeshares, and Mobile Homes

The powers of the Division of Condominium, Timeshares and Mobile Homes have been expanded to now oversee the following:

Procedures and records related to financial issues, including annual financial reporting, assessments for common expenses, fines, and commingling funds;
Elections, including election and voting requirements, and recall of board members;
The maintenance of and unit owner access to association records;
The procedural aspects of meetings, such as unit owner meetings, quorums, voting requirements, proxies, board of administration meetings, and budget meetings;
Disclosure of conflicts of interest;
Removal of a Board director or officer under Chapter 718, Florida Statutes;
The procedural completion of structural integrity reserve studies; and
Any written inquiries by unit owners to the association.

Additionally, the division must refer to local law enforcement authorities any person it believes has engaged in any criminal activity.
The division and the office of the condominium ombudsman may attend and observe any meeting of the board or any unit owner meeting, for the purpose of performing the duties of the division or the office of the ombudsman.
The division must submit findings by January 1, 2025, to the Governor, the President of the Senate, and the Speaker of the House of Representatives, of its review and recommendations of the website or application requirements for official records.

Pre-Sale Disclosures and Requirements

Effective October 1, 2024, nondeveloper sellers of condominium units must provide prospective purchasers with the condominium association’s annual financial statement and annual budget.
The form in which the prospective purchaser of a condominium unit acknowledges receipt of specified documents is revised to include a copy of the most recent annual financial statement and annual budget of the condominium association.

Florida Building Commission – Water Intrusion Study

The Florida Building Commission must submit a report by December 1, 2024, to the Governor, the President of the Senate, the Speaker of the House of Representatives, and the chairs of the legislative appropriations committees and appropriate substantive committees with jurisdiction over Chapter 718, Florida Statutes, of its review of the standards to prevent water intrusion through the tracks of sliding glass doors.
These laws take effect July 1, 2024

HOMEOWNERS ASSOCIATION LAWS

House Bill 293 – Hurricane Protection for Homeowners’ Associations

Homeowners’ associations (HOAs) or any architectural review committee (committee) must adopt hurricane protection specifications, which may include the color and style of hurricane protection products and any other factors deemed relevant by the Board. All specifications adopted by the HOA must comply with the applicable building code.
The HOA or committee may require homeowners to adhere to an existing unified building scheme regarding the external appearance of homes and other structures within the community.
Regardless of any other provision in association governing documents, the HOA and committees may not deny a homeowner’s application for the installation, enhancement, or replacement of hurricane protection that conforms to the specifications adopted by the HOA or committee.
These laws apply to all homeowners’ associations in the state, regardless of when the community was created.
These laws took effect May 28, 2024.

House Bill 59 – Provision of Homeowners’ Association Rules and Covenants

HOAs must provide, before October 1, 2024, a physical or digital copy of the association’s rules and covenants to every HOA member, including new members.

HOAs may satisfy the requirement by posting a complete copy of the association’s rules and covenants, or a direct link thereto, on the homepage of the association’s website, if the website is accessible to the members of the association and the association sends notice to each member of the association of its intent to utilize the website for this purpose. The notice of the association’s intent to use a website may be delivered electronically or by mail.
Also, HOAs must give every member an updated copy of the rule or covenants if the rules or covenants are amended. HOAs may adopt rules establishing standards for the manner of distribution and timeframe for providing copies of updated rules or covenants.
These laws take effect July 1, 2024.

House Bill 1203 – Homeowners Associations

Community Association Managers

Community association managers (CAMs) and CAM firms rendering management services to HOAs must perform the following:

Annually attend at least one member meeting or Board meeting of the association;
Provide to association members certain information, including the contact person, contact information, and the hours of availability;
Provide the community’s members upon request a copy of the contract between the association and the CAM or CAM firm;
Complete at least 10 hours of continuing education each year; and
Biennially complete at least 5 hours of continuing education that pertains to HOAs, 3 hours of which must relate to recordkeeping.

Official Records

Effective January 1, 2026, HOAs with 100 or more parcels must maintain a digital copy of specified official records for download on the association’s website or through an application on a mobile device.
HOAs must provide a copy of records or otherwise make the records available that are subpoenaed by a law enforcement agency within five days of receiving a subpoena.
HOAs must maintain Official Records for at least 7 years, unless the governing documents of the association require a longer period of time.

Criminal Violations

There are criminal penalties associated with the production, retention, inspection, or tampering of official records:

Any director or member of the Board or association to knowingly, willfully, and repeatedly violate (two or more violations within a 12-month period) any specified requirements relating to inspection and copying of Official Records of an association with the intent of causing harm to the HOA or one or more of its members commits a second-degree misdemeanor;
Any person to knowingly and intentionally defacing or destroying required accounting records, or knowingly and intentionally failing to create or maintain required accounting records, with the intent of causing harm to the HOA or one or more of its members commits a first-degree misdemeanor.
Any person to willfully and knowingly refuse 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 third-degree felony.
Accepting kickbacks is subject to criminal penalty:
An officer, director, or manager of a condominium association to knowingly solicit, offer to accept, or accept a kickback commits a third-degree felony.
Also, the following actions relating to homeowners association elections is a fraudulent voting activity and constitutes a first-degree misdemeanor:

Knowingly aiding, abetting, or advising a person in the commission of a fraudulent voting activity related to association elections.
Agreeing, conspiring, combining, or confederating with at least one other person to commit a fraudulent voting activity related to association elections.
Having knowledge of a fraudulent voting activity related to association elections and giving any aid to the offender with intent that the offender avoid or escape detection, arrest, trial, or punishment.
Any officer or director charged with a criminal violation under Ch. 720, Florida Statutes, must be removed from office and a vacancy declared.

Assisting Law Enforcement

HOAs must, if subpoenaed, provide a copy of the requested records within five business days of receiving the subpoena and must assist law enforcement in any investigation to the extent permissible by law.

Financial Reporting

HOAs with 1,000 or more parcels are required to have audited financial statements; and
HOAs are prohibited from reducing the required type of financial statement (compiled, reviewed, or audited financial statements) for consecutive years.

Accounting

Allows homeowners to make a written request for a detailed accounting of any amounts owed to the HOA. If the HOA fails to provide the accounting within 15 business days of a written request, any outstanding fines of the requester are waived if the fine is more than 30 days past due and the HOA did not give prior written notice of the fines. It also prohibits parcel owners from requesting another detailed accounting within 90 days of such a request.

Education – Officers and Directors

HOA Board of Directors are subject to the following education requirements:

A newly elected or appointed Director must, within 90 days after being elected or appointment, submit a certificate of having completed the educational curriculum.
The educational curriculum includes training relating to financial literacy and transparency, recordkeeping, levying of fines, and notice and meeting requirements.
A Director of an HOA that has fewer than 2,500 parcels must complete at least 4 hours of continuing education annually and a Director of an HOA with 2,500 or more parcels must complete at least 8 hours of continuing education annually.

Enforcement of Covenants and Rules

An HOA or architectural review committee must:

Provide written notice to the homeowner of the rule or covenant relied upon when denying the request for the construction of a structure or other improvement;
Not place limits on the interior of a structure or require review of HVAC, refrigeration, heating, or ventilating system not visible from a parcel’s frontage, an adjacent parcel, common area, or community golf course, if a substantially similar system has been previously approved; and
Not prevent a homeowner from installing or displaying vegetable gardens and clotheslines in areas not visible from the frontage or an adjacent parcel, an adjacent common area, or a community golf course.

Fines, Suspensions, and Liens

HOAs must hold a hearing before a committee to review a fine or suspension issued by the Board, subject to the following requirements:

A 14-day written notice of the owner’s right to a hearing must be provided.
The hearing must be held within 90 days of the Notice of Hearing.
The committee may hold the hearing by telephone or other electronic means.
Written findings related to the violation must be provided within seven (7) days of the hearing.
The date by which the fine must be paid or the suspension fulfilled must be at least 30 days after delivery of the written notice of the committee’s decision.
Attorney fees and costs based on actions taken by the Board before the date set for the fine to be paid are prohibited.
If the violation and the proposed fine or suspension are not cured or the fine is not paid, reasonable attorney fees and costs may be awarded to the HOA, but these may not begin to accrue until after the payment date of the fine or the appeal time has expired.
HOAs are prohibited from issuing a fine or suspension for:

Leaving garbage receptacles at the curb or end of the driveway less than 24 hours before or after the designated garbage collection day or time.
Leaving holiday decorations or lights up longer than indicated in the governing documents, unless such decorations or lights are left up for longer than 1 week after the HOA provides written notice of the violation to the homeowner.
HOAs may not prohibit a homeowner or others from parking:

A personal vehicle, including a pickup truck, in the property owner’s driveway or in any other area where they have a right to park.
A work vehicle, which is not a commercial motor vehicle, in the homeowner’s driveway.
Their assigned first responder vehicle on public roads or rights-of-way within the HOA.
In addition, the governing documents may not prohibit a homeowner from:

Inviting, hiring, or allowing entry to a contractor or worker on the owner’s parcel solely because the contractor or worker is not on a preferred vendor list of the HOA or does not have a professional or occupational license.
Operating a vehicle in conformance with state traffic laws, on public roads or rights-of-way or the property owner’s parcel, unless the vehicle is a commercial motor vehicle.

Electronic Voting

HOA members may consent to electronic voting by using an electronic means of consent (currently the law requires written consent to vote electronically).

Assessments

Only simple interest, not compound interest, is permitted to accrue on assessments and installments on assessments that are not paid when due.
These laws take effect July 1, 2024.

CONCLUSION

These laws represent significant shifts that will greatly impact operations for our community association clients. It is crucial for board members and managers to familiarize themselves thoroughly with these amendments and ensure full compliance with the new requirements. Please do not hesitate to contact our office with any questions on how these legislative changes may impact you.