While most of the coverage about the new Florida condominium association laws focused on structural integrity reserve study laws and milestone inspection laws, there were also several changes to how condominium associations must govern.
From virtual meetings to alternate budget requirements, the changes might seem relatively minor, but even small changes can cause major issues for associations.
Plus, there is relatively little time to implement these changes. With the governor's signature, most changes from HB 913 will take effect on July 1, 2025, with a few required by October 1, 2025.
The attorneys at The Orlando Law Group can help associations with any changes that might come, ensuring your association remains in compliance with any new state statutes enacted this year.
New Licensing Requirements for Association Managers
Everyone knows that association management is a regulated industry and requires a license issued by the State of Florida.
This year's law put several new requirements on association managers and their firms.
For instance, if an association manager has his or her license revoked at any time, that manager is out of the industry for a minimum time period of 10 years.
This prohibits the individual from "indirect or direct ownership interest in, or be an employee, a partner, an officer, a director, or a trustee of, a community association management firm."
That individual cannot reapply until the 10-year ban has passed.
In addition, every community association manager and firm must create an online "licensure account" with the state.
In those accounts, which must be updated within 30 days of any change, the manager must list what firms they work for, along with every community they serve as a manager. For management firms, they must show all the employees who manage communities for the firm, along with the communities they manage.
If a manager has their license suspended or revoked, they must notify the community and their firm in writing.
Finally, there is new language that is required in contracts for community management services. There must be a statement that says: The community association manager shall abide by all professional standards and record-keeping requirements imposed pursuant to part VIII of chapter 468, Florida Statutes.
New Public Records Requirements for Florida Condominium Associations
Florida has some of the strictest public record laws in the country. With the passage of HB 913, there are several requirements for condominium associations and their records.
Probably the most detailed of these is a new requirement to have an online account with the state for every association in Florida, specifically requiring associations to list the following:
- Contact information for the association that includes:
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- Name of the association.
- The physical address of the condominium property
- Mailing address and county of the association.
- E-mail address and telephone number for the association.
- Name and board title for each member of the association's board.
- Name and contact information of the association's community association manager or community association management firm, if applicable.
- The hyperlink or website address of the association's 3190 website, if applicable.
- Total number of buildings and for each building in the association:
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- Total number of stories, including both habitable uninhabitable stories.
- Total number of units.
- Age of each building based on the certificate of occupancy.
- Any construction commenced within the common elements within the calendar year.
- The association's assessments, including the:
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- Amount of assessment or special assessment by unit type, including reserves.
- Purpose of the assessment or special assessment.
- Name of the financial institution or institutions with
- which the association maintains accounts.
- A copy of any structural integrity reserve study and any associated materials requested by the department within 5 business days after such request, in a manner prescribed by the department.
While the state has required public records to be available online, some associations were slow to put them on their website. Starting in July, the state is now requiring all public documents to be online within 30 days of creating them.
Association Meetings by Zoom is now an option
One of the residual effects of the COVID pandemic was the ease with which businesses and organizations can now use videoconferencing platforms like Zoom, Microsoft Teams or Google Meets.
The guardrails of such meetings are now placed in statute, including a basic definition of what that means. Some of the specific requirements in the statute are:
- The notice for any meeting that will be conducted by video conference must have a hyperlink and call-in conference telephone number for unit owners to attend the meeting
- There must be a physical location where unit owners can also attend the meeting in person.
- All meetings conducted by video conference must be recorded, and such recording must be maintained as an official record of the association.
- All recordings of meetings that are conducted by video conference must be maintained for at least 1 year after the date the video recording is posted.
- If the annual meeting of the unit owners is conducted via video conference, a quorum of the members of the board of administration must be physically present at the physical location where unit owners can attend the meeting.
- The location must be provided in the association bylaws and, if the bylaws are silent as to the location, the meeting must be held within 15 miles of the condominium property or within the same county as the condominium property.
- A sound transmitting device must be used so that the conversation of such members may be heard by the board or committee members attending in person, as well as any unit owners present at the meeting.
It may seem like a lot of hurdles to overcome for a virtual meeting, but with today's technology, they can be easy to perform.
Other financial requirements in the new condo bill
In addition to the public records and online meeting laws, two other provisions are in the bill that should be watched by Florida condominium associations.
First is a requirement that an alternate budget must be developed and considered to be considered if a proposed budget's assessments grow by 115 percent or more from year to year.
Previously, this was required only if 10 percent of the association's members requested a special meeting to discuss the budget.
Now, it is mandatory.
The rules regarding the meeting have not changed. Associations must still mail or hand-deliver to all members notice of the budget meeting no later than 14 days before the meeting takes place.
Finally, the state gave associations flexibility on where associations put their funds.
Starting July 1, associations can put their funds into "certificates of deposit or in depository accounts at a community bank, savings bank, commercial bank, savings and loan association, or credit union" without the vote of the board.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
