The law has been amended to provide that written notice of a meeting other than an annual meeting must include an agenda; be mailed, hand delivered, or electronically transmitted to each unit owner; and be posted in a conspicuous place on the condominium property or association property within the timeframe specified in the Bylaws. / SB 630, Pages 4146. Construction Defect & Scheduling Litigation, Non-Compete / Restrictive Covenant Litigation, Trade Secrets & Unfair Competition Litigation, Commercial & Residential Real Estate Disputes, Mediation / Alternative Dispute Resolution, Tax Disputes (IRS Controversy & Litigation). Commissioners of Broward County, Fla., passed an ordinance in September requiring HOAs to provide written notice to rejected applicants detailing the reason for the rejection. Your Florida Condominium Association Hurricane Preparedness Plan ; Your Florida Condominium Board Member Electronic Voting and Communication Policy ; Florida Condominium Association Board Election Procedures: Florida Statute 718.112(2)(d) and Florida Administrative Code (F.A.C.) 5. You have permission to edit this article. Board Recalls Section 718.112(2)(j(4), F.S., (SB 630, Page 28). The annual budget for condominium associations must be proposed to unit owners and adopted at least 14 days before the beginning of the fiscal year. This requires a legal opinion and is very fact specific based on the actual governing documents in your case. It is important for Board Members, Property Managers, and Unit Owners to be familiar with this statute when it comes to imposing Fines and Suspensions on Unit Owners. Talk to a Lawyer (b) Before changing the method of delivery for any invoice for assessments or a statement of account, the association must deliver a written notice of such change to the unit owners at least 30 days before it sends the invoice for assessments or the statement of account by the new delivery method. Only approve select dog breeds. Official Records Section 718.111(12)17, F.S., (SB 56, Page 6). Associations often require that prospective tenants submit pages and pages of paperwork, undergo background and credit checks, and pay application fees. The period of time a unit owner has to pay a monetary obligation is increased from 30 days to 45 days after receiving an associations notice of intent to record a claim of lien. 2507 (2015). Notice of Intent to Lien Section 718.121(6), F.S., (SB 56, Page 13). 718.116(4) of the Condominium Act states: " If the association is authorized by the declaration or bylaws to approve or disapprove a proposed lease of a unit, the grounds for disapproval may include, but are not limited to, a unit owner being delinquent in the payment of an assessment at the time approval is sought." The evaluation would occur at the time the application is filed. There will be an exception to the rule of limited application (to successor owners or owners voting for the amendment) as to certain rental prohibitions or regulations for those restrictions that are put in place on or after July 1, 2021. The failure to adopt the annual budget a second time is a minor violation and the prior years budget will continue in effect until new a budget is adopted. 1. The affirmative acknowledgments of unit owners related to any change in the method of delivery for assessments must be maintained by the association as an official record, but such record is not accessible to other unit owners as an official record. Q:Our election is in 20 days and the board claims to have mailed out the package last week. (b) Exclusively Designated Parking Spaces Section 718.113(8)(a), F.S., (SB 630, Page 30), The locations where the association may not prohibit an electric vehicle charging station and a natural gas fuel station was expanded from the limited common elements to also include an exclusively designated parking area., (c) Association Charging Stations Section 718.113(9), F.S., (SB 630, Page 33). The new section (h) added to Section 720.306 of the Florida Statutes will also clarify that a rental prohibition or regulation that does not apply to a current title holder (because that owner did not consent to the amendment) also will not apply to a subsequent title holder following certain ownership changes. That means the declaration of a condominium must be read to see if association approval is required, and if so, limitations on the associations power. Alternative Fuel Charging Stations, (a) Natural Gas Charging Stations Section 718.113(8), F.S., (SB 630, Page 30). In determining the validity of a condominium association's leasing restrictions, the court in Seagate Condo. Both approvals are required to lease a condo in Miami. Quorum and Amendments Section 617.0725, F.S., (SB 602, Page 16). The Condominium Act does not merely address rental limitations. A:This is a good question because the Florida Condominium Act does require that the Board keep minutes of every board meeting, and that minutes are official records that must be made available to owners when requesting access to official records. Forgery of a ballot envelope or voting certificate used in a condominium association election is punishable as provided in s. 831.01, the theft or embezzlement of funds of a condominium association is punishable as provided in s. 812.014, and the destruction of or the refusal to allow inspection or copying of an official record of a condominium . The 2021 Florida legislative session produced several bills that made numerous changes to condominium law (Chapter 718, Florida Statutes; the Condominium Act) that will affect the operation of condominium associations across the State. However, an associations board is not necessarily free to approve or disapprove prospective purchasers and tenants merely because the authority to do so appears in the associations governing documents. Nevertheless, nobody that I know has received the package. An overwhelming number of board members seem to think that their associations have unfettered rights to interview, screen and either accept or reject prospective owners or tenants who are interested in purchasing or renting units within their community. The fee may not be more than $100 per applicant and a husband/wife or parent/dependent child are considered one applicant. Often times, these directors are disappointed to learn that Florida law and their associations governing documents are not as restrictive as they would like. His practice includes litigation and divorce, business law, estate planning, associations and real estate. and Urban Dev., 56 F.3d 1243 (10th Cir. The law clarifies that only service on the Board of a condominium association that occurs on or after July 1, 2018, may be used when calculating a Board members term limit of 8 consecutive years. / SB 630, Page 9), (c) The association may not require a unit owner to demonstrate any purpose or state any reason for inspecting the official records of the association. j. There seems to be a common misunderstanding by the directors of many community associations in Florida as to their rights to approve and screen individuals seeking to purchase or rent homes within their communities. Addressing any flaws in the Associations tenant application process now may help to prevent or reduce litigation down the road. The due date for a fine was changed from being due 5 days after the committee meeting at which the fine is approved, to being due 5 days after notice of an approved fine is provided to the unit owner and, if applicable, to any tenant, licensee, or invitee of the unit owner. (Section 718.111(12)(g)1, F.S. The prospective owner in the latter case went to court and the judge ruled insisting on tax returns was overreaching and unenforceable. A condominium associations right to approve sales or leases is almost mythical. You may mail the co mplaint forms to the following addre ss: Division of Florida Condominiums, Timeshares and Mobile Homes 2601 Blair Stone Road, Tallahassee, Florida 32399-1030. Illegal Discriminatory Restrictions Section 718.112(1)(c), F.S., (SB 630, Page 16). The publication of this article does not create an attorney-client relationship between the reader and Goede, Adamczyk, DeBoest & Cross, or any of our attorneys. This new statutory provision will be reflected in a new subsection (h), to be added to Section 720.306 of the Florida Statutes. Specifically, the Florida Condominium Act and Homeowners Association Act provide that an association's official records must include a statement of the account for each owner designating the due date and amount of each assessment, the amount paid on the account, and the balance due. Fines Due Date Section 718.303(b), F.S., (SB 630, Page 53). 13. That case started when an investment group bought a condominium and the owners in the condominium later amended the declaration to limit rentals. FCAP Member Advantage eNewsletter Please contact the firm for more information. HOA/Condo laws in Florida allow HOAs considerable discretion in approving or denying potential buyers and renters. Mr. Pope is 1 of only 2 attorneys in Florida that is Florida Bar Board Certified in both Construction Law and Condominium and Planned Development Law. A:Yes, the statutes only require that the notice of the meeting along with the election materials be sent at least fourteen (14) days before the meeting and election. The board has a fiduciary obligation to those in their condominium community to protect the community. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. By doing so under close consultation with highly qualified legal counsel, associations can move confidently to develop and implement the policies and protocols that make the most sense for their community. Some declarations and bylaws for Florida communities provide associations with a right of first refusal, enabling them to accept the same terms and conditions for any good-faith lease offer that a unit-owner receives and is willing to accept. The contact form sends information by non-encrypted email, which is not secure. Be Proactive. No racism, sexism or any sort of -ism If the Declaration does not authorize the. In other words, the association must have the express authority to deny transfers of title, and the restrictions on such sales must be reasonable. NOTE: Our Client Portal is Currently Undergoing Maintenance. The law was amended to clarify and expand a developers right to use sales and reservation deposits placed in escrow. Miami Herald Real Estate Column by Christyne Santisteban: Growing Condo Association Budgets Require Deft Touch by Directors, Property Managers, Community Associations Institutes Condo Safety Initiatives Recognized with Prestigious Public Affairs Council Award, Herald Column by Gary Mars: National Media Focuses on Impact of Floridas New Condo Safety Law on Association Budgets. If the Declaration provides, for example, only that all leases must be approved by the board, this may be sufficient authority for the board to adopt a rule or resolution setting forth good cause for denial. Condominiums must apply approval procedures with an even hand. Additionally, the federal Fair Housing Act1 (more commonly referred to as the FHA) and Floridas Fair Housing Act2 each provide numerous protections from discrimination by housing providers, including condominium associations. 2. Many associations use a blanket term prohibiting "aggressive" dog breeds. It's one of many South Florida condo associations ripping off consumers. 1. West Palm Beach, FL 33415 A person buying a condominium unit buys with actual or constructive knowledge of provisions of the declaration and is bound by them. The case ended up at the Florida Supreme Court and the Justices agreed with the trial court, leaving the investment group with a condominium unit they could no longer rent as intended. . It also provides that condominium associations may charge a fee for approval of leases or sales, as long as the fee is provided in the declaration, articles or bylaws. The reason for disapproval must also meet the requirements of statutes. Share with Us. The information you obtain at this site is not, nor is it intended to be, legal advice. Florida Statute 718.303 In Florida, Condominium Associations have the ability to access Fines and issue Suspensions upon Unit Owners pursuant to Florida Statutes, 718.303. In Aquarian Foundation v. Sholom House, 448 So.2d 1166 (Fla. 3d DCA 1984), Florida's Third District Court of Appeal considered the validity of a condominium association's transfer restrictions . Condominium Act. I am not so sure that is law in Florida, since there could be very good reasons to disapprove a buyer that should not trigger for purchase by the association. Insurance Subrogation Section 627.714(4), F.S., (SB 630, Page 5). Among the changes made was one that restricts the right of a homeowner's association to implement rental . 819 (D. Nev. 1994). However, that authority cannot be exercised unreasonably. Most people believe associations have an inherent right to approve sales or leases, but that is not the case. Impose an HOA pet weight limit for each dog. Client Payment. Once every decade, the Florida courts issue an opinion that profoundly changes the face of condominium law. Section 627.714(4), F.S., has been amended to provide that a condominium unit owners insurance policy may not provide subrogation rights against the association operating the condominium in which the property is located, if the associations insurance policy does not provide a subrogation right against the unit owners. Tenant Approval Procedures Some HOA's are placing themselves in a position to actually screen the tenants that a non-occupant owner selects to rent. The building, about 6 miles from Surfside, was deemed. It also provides that condominium associations may charge a fee for approval of leases or sales, as long as the fee is provided in the declaration, articles or bylaws. If the allegations in the lawsuit hold up in court, the association could be forced to pay the plaintiff unit-owners lost rental income and legal bills. A recent lawsuit filed by a tenant against a Miami condominium association is claiming excessive application fees were charged, violating the Florida law. 14. 5. These new laws clarify how residents of Florida can properly qualify for an emotional support animal and affirm the special rights ESA owners have. In, Phillips v. Hunter Trails Community Association. We offer legal assistance in all matters of condominium association law, homeowners and community association law, real estate litigations and transactions, residential and commercial closings, and insurance law. in accordance with Florida Law, that upon receipt of notice from Sawgrass Villas Condominium Association . Many associations make a credit report part of the approval process, and one local association went so far as to require tax returns be submitted. Becker & Poliakoff is one of Florida's preeminent law firms, and the firm that pioneered Condominium and Homeowners Association law in Florida. Notice of Intent to Foreclose Section 718.116(6)(b), F.S., (SB 56, Page 9). Fax: (561) 471-0522. Again, the restrictions will not apply to rental restrictions that are in place prior to July 1, 2021. There is a new statutory form notice of late assessments that must be delivered to the unit owner before the association can require the payment of attorney fees related to past due assessments. Specifically, the Department of Housing and Urban Development has warned housing providers of potential FHA liability for denying tenant applications based on requests by individuals with disabilities to reside with assistance animals.5 Associations must be careful to ensure that their tenant application policy and reasons for denying tenant applications do not have a disparate impact on any particular race, sex, or people of any particular national origin or familial status, or for that matter, on people with disabilities. A: Florida law supports the right of a condominium association or homeowners' association to review and approve prospective leases and tenants. The rule was held beyond the boards authority. may be leased or rented without the approval of the Association. (e) Authorizes condominium associations to consult with public health officials when determining whether any portions of the condominium property are unavailable for entry or occupancy. In addition, it is imperative for associations to base their decisions on legitimate factors as provided within the policies set forth in their governing documents, including but not limited to matters such as credit worthiness, evictions, criminal records, interviews with past landlords, and others. Section 718.104 (5) Florida Statutes provides that a declaration of condominium, as originally recorded or as amended, may include restrictions concerning use, occupancy and transfer of units. Assessments and Statements of Account Section 718.121(4), F.S., (SB 56, Page 11). 6 Texas Dept. All Rights Reserved. David T. Podein is a senior associate at Haber Slade. (Section 718.111(12)(a)11d, F.S. . The Department of Business & Professional Regulation (DBPR) must periodically calculate the fees, rounded to the nearest dollar, and publish the adjusted amounts on its website. seq., is similar to the Homeowners' Association Act (HAA), except that it applies to condominium associations rather than homeowners' associations.. or anything. 10. Suite 203 The deposit must not exceed the equivalent of one month's rent and be placed into an escrow account which the Association is responsible for maintaining. If the Bylaws do not specify a timeframe for written notice of a meeting other than an annual meeting, notice must be provided at least 14 continuous days before the meeting. Other grounds that might be argued to be reasonable in connection with the disapproval of an applicant seeking to reside in a community may include the following: (1) the applicant has been convicted by a court of a felony involving violence to persons or property, or a felony demonstrating dishonesty or moral turpitude, and has not had their civil rights restored; (2) the application for approval, on its face, or the conduct of the applicant, indicates an intent to act in a manner inconsistent with the associations governing documents; (3) the applicant has a history of disruptive behavior or disregard for the rights and property of others as evidenced by his conduct in other residences, social organizations or associations; and (4) the applicant has failed to provide the information required to process the application in a timely manner, or has materially misrepresented any fact or information provided in the application or screening process. 7 Mountain Side Mobile Estates Partnership v. Secretary of Hous. On June 16, 2021, Governor DeSantis signed Florida SB 630, which will become effective on July 1, 2021. (Sections 718.1255 (4) and (5), F.S. A: No. One measure that the courts have determined to be reasonable when disapproving a potential sale of a home or unit is the right of first refusal, which would require an association or its designated representative to step in and consummate the sale or lease of the potential purchaser or tenant who is disapproved. Documents provided to NPR show the board approved seeking a $15 million line of credit on April 13, 2021. A few greedy condos, mostly in the Miami area, charged five and even ten times that amount. The investment group appealed and was successful, with the appellate court ruling that the change was a deprivation of property rights. Phone: (239) 334-2195 A:Florida law supports the right of a condominium association or homeowners association to review and approve prospective leases and tenants. This article provides a basic overview of the limitations affecting associations with regard to the ability to approve or disapprove individuals seeking to purchase or lease within the community. Still, the Condo Association has control over the condominium and can exercise power over the tenant just as it can with residents (or prospective residents). 4. 2d 452 (Fla. 2002). The Act now provides that an amendment limiting an owners right to rent a unit applies only to unit owners who consent to the amendment and unit owners who acquire title after the effective date of the amendment. Providing access to settlement parameters would severely hinder the Associations negotiating position and attorney client privilege is sacred and should not be waived during the pendency of litigation absent a clear intention to do so. This is different from approvals and rejections of prospective tenants, which should always be conducted under the careful guidance of qualified professionals to help avoid any potential legal and financial liabilities. Previously, a developer could use such funds for actual construction, but the escrowed funds may now be used for the actual costs incurred by the developer in construction and development of the condominium property. What happens when an association wrongfully refuses to approve a transfer? Readers should not act or refrain from acting based upon the information contained in this article without first contacting an attorney, if you have questions about any of the issues raised herein. The statute was amended to permit a unit owner to install a natural gas fuel station, subject to the same requirements as a unit owner installing an electric vehicle charging station. A landlord typically has a lease that allows the landlord to give the tenant a certain amount of time to correct a problem, move out, or face eviction. William G. Morris is the principal of William G. Morris, P.A. (1) If a landlord requires a prospective tenant to complete a rental application before residing in a rental unit, the landlord must complete processing of a rental application submitted by a prospective tenant who is a servicemember, as defined in s. 250.01, within 7 days after submission and must, within that 7-day period, notify the Posted 6 years ago. Emergency Powers Section 718.1265, F.S., (SB 630, Page 46). He concentrates his practice areas on business litigation, condominium and community association law, construction law, and real estate litigation. Those restrictions, once adopted into an associations governing documents, will apply to all owners in the association regardless of when or how the owners title was acquired and regardless of how that owner voted as to an amendment adopting said restrictions. However, some association boards of directors are under the misconception that they can easily develop and implement new leasing restrictions via a board vote, and that they have the authority to approve or reject prospective tenants as they please without facing any scrutiny of their decisions. Notifications from this discussion will be disabled. 17. Serious problems may lead the landlord to seek an eviction without giving the tenant an . The fee may not be more than $100 per applicant and a husband/wife or parent/dependent child are considered one applicant. I would also recommend reviewing the associations bylaws as this document sometimes contains notice requirements which are more restrictive than the statutory requirements. When a condominium association unreasonably denies approval of a lease or sale, the association can be subjected to a claim for damages and board members might even be personally liable, notwithstanding substantial protection for condominium board members found in Floridas Condominium Act and Not-For-Profit Corporations Act. NOTE: Our Client Portal is Currently Undergoing Maintenance. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. The structural repairs had not yet begun when the condo collapsed two months later. A careful analysis and potential corresponding adjustment of the Associations tenant acceptance policy could protect the Association should a disgruntled applicant bring a FHA claim against the Association. Managers Report eNewsletter. An overview of florida condominium association collections of past due maintenance fees. Fort Myers, FL 33901 In, Barnett and Klein v. The President of Palm Beach, a Condominium, , an owner recovered damages for tortious interference with a contractual relationship when the association denied his effort to rent relying on a rule adopted by the board instead of a limitation in the declaration. (Section 718.111(12)(c)1, F.S. Copyright 2023, Pavese Law Firm. HOAs sometimes limit what types of equipment can be stored outside your home. For guidance as to how to prepare a proposed amendment to your HOA declaration that complies with the new HOA rental restrictions or for guidance on additional changes resulting from Florida SB 630, you can reach out to our association law team. Alternative Dispute Resolution Section 718.1255, F.S., (SB 630, Pages 40 46), (a) In lieu of initiating non-binding arbitration, a party may submit a dispute to the pre-suit mediation process in accordance with Section 720.311, F.S., and then file in a court of law, which is the same procedure currently used by homeowners associations. HOA docs basically state that I can't rent rooms (only the entire house), lease forms must be approved by HOA, my lease must require tenants to follow HOA docs, my lease must give HOA power to terminate lease for failure to observe HOA docs, and that written permission by HOA is required to lease lots (which approval shall not be unreasonably . Q:Our community has a very strict tenant screening process and my neighbor has had multiple tenants denied due to poor background checks. Keep it Clean. Here we explain the ordinance and discuss whether other states allow associations to approve or reject potential HOA purchasers and renters, and the pros and cons. The law defines the term actual costs to include, but is not limited to, expenditures for demolition, site clearing, permit fees, impact fees, and utility reservation fees, as well as architectural, engineering, and surveying fees that directly relate to construction and development of the condominium property. The Board of Directors of many condominium associations takes their approval responsibility seriously, and they should. Why Condominium Associations Must Carefully Evaluate Their Long-Standing Tenant Approval Policies.