Rembaum's Association Roundup Archives

January 7, 2025January 11, 2025

The Consequences of Failing to Maintain the Official Records

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

The following scenario happens all too often. A member makes a written records request to inspect the official records of the association and proceeds to provide a laundry list of documents that the member wants to inspect. In response, the association may arrange to have the member come to the property management office to inspect the records or, if the laundry list is not extensive, provide the requested records to the member by making copies or providing them electronically. Sometimes, however, associations do not always maintain official records in accordance with the requirements of Chapters 718 and 720, Fla. Stat., and an association may argue that it gave the member what it could, so that is all that really matters, right? Wrong! If your association operates this way, you are in for a surprise.

In the case of William Pecchia and Kathleen Porter v. Wayside Estates Home Owners Association, Inc., 388 So. 2d 1136 (Fla. 5th DCA 2024), litigation initially arose between the homeowners (Pecchia and Porter) and the association due to the belief by Pecchia that the association was failing to maintain the common area and that the association was not enforcing violations. Pecchia observed that over the years the association lowered annual assessments and seemed to spend less money on maintenance despite observable deteriorating conditions to the property. [Read the Rest]

December 26, 2024January 7, 2025

Corporate Transparency Act Strikes Back!

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

In the never ending saga regarding the applicability of the Corporate Transparency Act, there is yet another twist in that the judge in the Texas litigation, which we wrote about to you on December 14 and who issued the nationwide injunction, reversed course on December 23, when he lifted the court’s previously enacted injunction making the Corporate Transparency Act’s registration requirements applicable once again. However, FinCen, in light of the short notice, has extended the deadline in which to register to January 13, 2025 absent other deadline extensions.

As reported in our prior article, a recent update from the United States Department of Treasury, Financial Crimes Enforcement Network (FinCen) provides an extension of time to comply with the requirements of the Corporate Transparency Act for the initial reporting deadlines, but there are strict requirements regarding the applicability of the extension as discussed below.

FinCen, on October 29, 2024, extended the initial reporting deadlines to June 30, 2025, for associations in counties affected by Hurricane Milton where:

(1) Federal Emergency Management Agency (FEMA) assistance is available for individual or public assistance; and

(2) IRS tax filing deadlines have been extended.

Associations in the following counties appear to be subject to the extension:

Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putman, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, and Volusia.

Of course, to be absolutely certain, please check with your association’s attorney.

[Read the Rest]

December 13, 2024January 7, 2025

Disability Discrimination Under the Fair Housing Act

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

Guest Columnist: Danielle M. Brennan, Esq. B.C.S. [Kaye Bender Rembaum]

As directors and managers of community associations, it is likely that you are very familiar with disability-related requests for reasonable accommodations under the Fair Housing Act, particularly requests for accommodation to pet restrictions so that a disabled person may have an assistance animal within the community. However, the failure to grant reasonable accommodations is not the only form of disability discrimination under the Fair Housing Act.

The Fair Housing Act also makes it unlawful for a housing provider to refuse to permit, at the expense of the disabled person, reasonable modifications of existing premises occupied or to be occupied by such person if such modifications may be necessary to afford such person full enjoyment of the premises. For example, reasonable modifications may include widening doorways to make rooms more accessible for persons in wheelchairs, installing grab bars in bathrooms, [Read the full article]

December 11, 2024January 7, 2025

CORPORATE TRANSPARENCY ACT – Mandatory Registration Temporarily Stayed

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

Below is an update direct from the Federal Government’s Financial Crimes Enforcement Network (FinCen)

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

The Corporate Transparency Act (CTA) plays a vital role in protecting the U.S. and international financial systems, as well as people across the country, from illicit finance threats like terrorist financing, drug trafficking, and money laundering. The CTA levels the playing field for tens of millions of law-abiding small businesses across the United States and makes it harder for bad actors to exploit loopholes in order to gain an unfair advantage.

On December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), a federal district court in the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction that: (1) enjoins the CTA, including enforcement of that statute and regulations implementing its beneficial ownership information reporting requirements, and, specifically, (2) stays all deadlines to comply with the CTA’s reporting requirements. The Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024.

Texas Top Cop Shop is only one of several cases in which plaintiffs have challenged the CTA that are pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional.

While this litigation is ongoing, FinCEN will comply with the order issued by the U.S. District Court for the Eastern District of Texas for as long as it remains in effect. Therefore, reporting companies are not currently required to file their beneficial ownership information with FinCEN and will not be subject to liability if they fail to do so while the preliminary injunction remains in effect. Nevertheless, reporting companies may continue to voluntarily submit beneficial ownership information reports.

November 16, 2024November 16, 2024

Corporate Transparency Act – An Update

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

A recent update from the United States Department of Treasury, Financial Crimes Enforcement Network (FinCen) provides an extension of time to comply with the requirements of the Corporate Transparency Act for the initial reporting deadlines but there are strict requirements regarding the applicability of the extension as discussed below.

FinCen, on October 29, 2024, extended the initial reporting deadlines to July 1, 2025, for associations in counties affected by Hurricane Milton where

1. 1. Federal Emergency Management Agency (FEMA) assistance is available; and
  2. IRS tax filing deadlines have been extended.

Associations in the following counties are subject to the extension:

Please click on the button link below to read the FinCen bulletin.

November 12, 2024November 13, 2024

MySafe Florida Condominium Pilot Program Launching

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

The information below is a copy of the email from the State’s program. Not with a Condominium Association? Please feel free to share with colleagues who are!

The Department of Financial Services is thrilled to announce the upcoming launch of the My Safe Florida Condominium Pilot Program on November 14, 2024! This new initiative aims to enhance the safety and resilience of condominiums across Florida, and we are excited to invite potential applicants like you to take part in this important program.

The My Safe Florida Condominium Pilot Program is designed to help condominium associations strengthen their properties against the impacts of natural disasters, such as hurricanes, by offering access to critical resources, safety improvements, and financial assistance. Whether you’re looking to improve your condominium’s wind resistance or apply for funding to offset improvements, this program is here to support you.

Key Program Details:

- Launch Date: November 14, 2024.
- Who can apply: Condominium Associations in the state of Florida located within the Program’s Service Area.
- What’s offered to Eligible Condominium Associations: 1. A no-cost wind mitigation inspection and report, which includes recommendations for improvements and potential insurance premium savings. 2. A Grant Award to reimburse condominium associations following the completion of authorized improvements.

We encourage you to stay tuned for more updates as we get closer to the official launch date. In the meantime, be sure to check our website https://mysafeflcondo.com/ for more information on eligibility requirements, program benefits, and how to get ready to apply.

This is a wonderful opportunity to improve your condominium’s safety while contributing to a stronger, more resilient Florida. We look forward to welcoming you to the program!

November 8, 2024November 13, 2024

A Differing Tale of Two Terminating Condominiums

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

An extremely similar fact pattern leads to diametrically opposed results between Florida’s Fourth District Court of Appeal and Florida’s Third District Court of Appeal.

In the case before the Fourth District Court of Appeal, Fellman v. Mission Viejo Condominium Association, Inc., Case No. 4D22-1260, (Fla. 4th DCA April 6, 2023), 175 of the 176 condominium units were acquired over time by a bulk owner, and the bulk owner sought termination of the condominium. However, Fellman as the single holdout objected to the plan of termination. At trial, the trial court entered a summary judgment in favor of terminating the condominium, which Fellman then appealed to the Fourth District Court of Appeal.

The Mission Viejo Declaration of Condominium was recorded in 1980 and required 100 percent consent of all unit owners as necessary to terminate the condominium form of ownership. Forty-one years later, on February 5, 2021, the bulk owner amended the required vote to terminate the condominium from…Read the full article on Rembaum’s Association Roundup

October 22, 2024October 22, 2024

Corporate Transparency Act Compliance and How to File Your Association’s Report

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

The Corporate Transparency Act (“CTA”) was enacted in 2021. The CTA requires that on or before January 1, 2025, all cooperatives, condominiums and homeowner’s associations (collectively, “Associations”) are required to file certain information with the US Treasury department, Financial Crimes Enforcement Network (“FinCEN”). This law requires businesses that are registered with their state’s division of corporations, which includes Community Associations, to provide information on its ‘Beneficial Owners’ which are the decision makers, meaning board members, and officers (and possibly managers, too). Your Association will need to comply with the registration requirements of the CTA or face significant penalties. In addition, any changes to the board members or officers must be reported by updating the information on FinCEN within 30 days of the change.

1) What is the CTA? The CTA aims to combat illicit activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s market. Under the new legislation… Read the Full Article

July 23, 2024July 23, 2024

2024 Legal Update | Interim Clarifications and Corrections for HOA and Condominium Board Members and Managers

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

Download our latest 2024 Legal Update today (Dated 7.22.24) – Click HERE to download

The purpose of this interim short article is to clarify:

i) homeowners’ association versus condominium association board member certification and continuing education requirements;

ii) provide greater clarity regarding condominium association hurricane protection requirements;

iii) clarify homeowners’ association website posting requirements, and remind homeowners’ association board members of three mandates from the 2024 legislation.

Board Member Certification Requirements and Continuing Education Requirements.

Condominium association board members must take a 4-hour board member certification course with certain subjects mandated within 90-days after being elected or appointed to the board.

Condominium association board members must take one-hour of continuing education per year.

Homeowners’ association board members must take a board certification course within 90-days after being elected or appointed to the board (no minimum time required, typically two hours).

Homeowners’ association board members with fewer than 2,500 parcels in the association must take 4-hours of continuing education per year and if 2,500 parcels or more in the association, then 8-hours of continuing education per year.

At the present time, no clarification has been provided whether the board certification courses will count towards the continuing education requirements.

With regard to condominium association hurricane protection requirements, in our last version of the 2024 Legal Update, there was a typo on page 32 where the word “irrelevant” was erroneously used instead of “relevant”.

Condominium Hurricane Protection Specifications. Each board of a residential condominium or mixed used condominium must adopt hurricane protection specifications for each building within the condominium operated by the association which may include color, style, and other factors deemed relevant by the board (please note that this provision used to apply to hurricane shutters but now applies to hurricane protection).

The following two homeowners’ association meeting notice requirements are applicable only to postings on the HOA website (or App), and not the physical posting at a conspicuous place in the community:

HOA: New Website Posting Requirement for Members’ Meetings.
Notice of any scheduled meeting of the members and the agenda for the meeting, as required by Section 720.306, Florida Statutes, at least fourteen (14) days before such meeting. The notice must be posted in plain view on the homepage of the website or app, or on a separate subpage of the website or application labeled “Notices” which is conspicuously visible and linked from the homepage. The Association shall also post on its website or application, any document to be considered and voted on by the members during the meeting, or any document listed on the meeting agenda, at least seven (7) days before the meeting at which such document or information within the document will be considered.

HOA: New Website Posting Requirement for Board Meetings.
Notice of any board meeting, the agenda, and any other document required for such meeting must be posted on the website or app no later than the date required for such notice.

Remember, every homeowners’ association board must:

1. Adopt hurricane protection standards/rules.
2. Provide copies of the rules and covenants to every association member before October 1, 2024 or, post same on the association’s website and send notice to each member at their address used for official notices as to where they can find it, etc.
3. Adopt rules governing official record retention.

May 2, 2024May 2, 2024

Why Is This Special Assessment Different from All Others and the Need for a Legislative Fix

Rembaum’s Association Roundup | Jeffrey A. Rembaum, Esq., BCS | Visit HERE

Not too long ago a condominium association foreclosed its assessment lien against a deceased unit owner and the sole heir. With the statutory prerequisites completed, including the recordation of the lien, the association commenced its foreclosure lawsuit. Ultimately, due to the failure of the defendants to respond, a final summary judgment in favor of the association was ordered, This judgment also included two special assessments that were properly levied by the association and remained unpaid. Here is where things begin to get interesting.

The special assessments were levied by the association after the lien was recorded and after the association commenced its foreclosure lawsuit. Therefore, the special assessments were not specifically referenced in the lien or in the foreclosure complaint because they were adopted after the lien was recorded and after the foreclosure action commenced. It is important to note that Section 718.116 (5)(b), Fla. Stat., provides the following, in pertinent part:

Read the rest at Rembaum’s Association Roundup…Click Here