Although parts of the new laws may end up being challenged in the courts, many portions of them went into effect on July 1
By Iris Vitelli, Neighborhood News Correspondent & Gary Nager
A number of the bills Florida Governor Ron DeSantis signed into law on May 31 of this year will have far-reaching effects on homeowners (HOAs) and condominium associations, licensed community association managers (LCAMs) and home and condo owners themselves.
According to PearlAntonacci.com (the website of the Pearl Antonacci Group of Compass Real Estate, based in Boca Raton), the 2024 HOA (Florida House Bill 1203) and condo (HB 1021) laws introduce stringent requirements for structural safety, financial transparency, and board governance:
“Key highlights include:
• Reserve Studies & Funding: Condo associations are now required to conduct comprehensive reserve studies periodically. This ensures that sufficient funds are available for major repairs and replacements, providing a clear financial roadmap for future needs.
• Increased Transparency: Associations must provide detailed financial reports to all members annually, ensuring that every dollar spent is accounted for, fostering trust and clarity within the community.
• Structural Integrity Inspections: In light of past incidents, there is a heightened focus on the physical health of buildings. Regular, mandatory inspections are to be carried out to guarantee the safety and durability of the structures.
• Insurance Adjustments: The laws mandate that condo associations maintain robust insurance policies covering a wide range of potential damages, which might lead to increased premiums but significantly better protection against unforeseen events.
• Enhanced Board Requirements: Board members are subject to stricter eligibility criteria and training requirements, aiming to professionalize HOA management and enhance decision-making processes.
For homeowners, these changes mean more rights and protections from potentially overreaching HOA boards. It’s important for homeowners to be proactive, by attending HOA meetings and staying informed about their rights under the new laws.”
But, while not all of Florida House Bill (HB) 1203 is yet in effect, many of these changes did take effect on July 1. The new law requires homeowners associations, certain community association managers and community association management firms “to post certain documents on their websites or make available such documents through an application by a date certain.” The law also provides that an association or its agent is required to apply and enforce certain standards regarding architectural or construction improvements “reasonably and equitably.”
Key Changes & Requirements
Several new laws address property management companies. While some HOAs and property management companies have adhered to these now-required practices for years, others were rushing to comply by July 1, when most of the requirements kick in. However, the website requirement is extended to January 1, 2025. The law states that HOA documents must be accessible via a website or mobile app, with a password-protected portal for homeowners. Required documents include:
• Declaration of Covenants & Amendments
• Articles of Incorporation & Amendments
• Bylaws & Amendments
• Current Rules
• Contracts & Bids
• Annual Budget
• Financial Reports
• Insurance Policies
• Director Certifications
• Agendas & Minutes
• All Contracts, Notices & Documents related to Conflicts of Interest
• Member Meeting Notices & Agendas
• Board Meeting Notices & Enclosures
Although many documents will be available on the HOA’s website, homeowners can still request to view documents kept by the property management company. Requests must be made by certified mail, and appointments will be arranged. Homeowners may take pictures or request and pay for copies of the records.
Penalties & Compliance
The law now explicitly states that directors or property managers who knowingly solicit, offer, or accept kickbacks are guilty of a third-degree felony.
If a director is removed, the Board must fill the position immediately. When entering into a contract with an HOA, the contract must have a conflict of interest section. The property management company may recommend a vendor they have a stake in but must now disclose that information in the contract.
Fining Committees & Procedures
Not all HOAs already have a fining committee but under the new law, all HOAs are now required to establish such a committee. This committee will be made up of homeowner peers, and can not include any Board members or HOA employees. The committee will hear the homeowner’s explanation for not addressing the violation or contacting the property manager to make arrangements. After hearing the homeowner’s side, the committee will decide whether or not to impose the fine. The only authority the fining committee has is to approve or reject the fine; they cannot make alternate arrangements with the homeowner.
Previously, the fining committee met at a location; the new law states that a homeowner can attend these meetings via phone or other electronic means. This law also prohibits a fine or suspension from being imposed if the violation is cured before the hearing has been held.
The law also prevents associations from levying fines and suspensions for leaving garbage at the curb 24 hours before or after collection time or for leaving holiday decorations or lights on longer than allowed by governing documents, unless they are left for more than a week after the HOA gives written notice of the violation.
Expert Opinions
Attorney Jonathan Ellis, who is Board-certified in condominium and planned development law and a Partner and Community Associations Business Sector Chair at the Tampa office of Shumaker, Loop, and Kendrick, and an expert in HOA law, says, “Unfortunately, year after year, more amendments complicate HOA operations. Associations will need to consult counsel more often.” He adds that, “many changes are beneficial but will require HOAs to spend money to accommodate them.”
For example, he says, “One change that could end up in front of a judge is the new law about commercial vehicles. Homeowners can now park in their driveways. The new law lacks a clear definition of what is considered a commercial vehicle. Is it the definition of the Dept. of Motor Vehicles or the minivan that has a ladder on the top? If someone challenges it, a judge will get involved.”
Ellis also says that the cost to create, update and maintain an HOA website and for HOA directors to complete certification classes will likely be passed on to the homeowners. Previously, property managers would have new Board members sign a form stating they had read the documents and encouraged them to do so. The new law now requires that all new Board members take the Certification Course and mandates 4 additional hours of education each year for properties with 2,500 or fewer units, or 8 hours per year for larger properties.
“Although some changes may be open to interpretation and might end up in court, one thing is clear: Mandating directors to take the certification class and additional education is a positive development,” Ellis says.
He adds, “The new law says HOAs may no longer prevent a homeowner from protecting their home against hurricanes. This may mean changes to the architecture of the property.” He advises HOAs to consult an architect to understand what this means for the HOA’s Architectural Review Committee.
To read the complete bill, you can visit flsenate.gov/Session/Bill/2024/1203.
Freelance writer Iris Vitelli is the president of the Pebble Creek Homeowners Association of Hillsborough County, Inc., in New Tampa.