The Legislative Session for 2011 has produced a few significant changes to the Co-operative Act (Chapter 719 F.S.). The following is a summary of these changes and an identification of the particular affected sections. Please note that this summary is not intended to be an exhaustive explanation of the intricate detail of the changes nor is it to be considered complete legal advice on the subject. It is recommended that if there are any questions regarding any of these changes, you contact this office for further discussion.
Among the most important revisions, House Bill (HB) 1195 incorporates clarification on life safety code requirements; options for pursuing rent from tenants of delinquent owners; and, expansion and clarification of suspension of use and voting rights options.
As a clarification from confusion created in 2010 when 2 different bills were approved and adopted, changes were made to Sections 633.0215(14) to clearly provide that the particular life safety code issue applies to condominiums, cooperatives or multifamily residential structures of less than four (4) stories.
Section 719.108(10), regarding seeking rent from the tenant of a delinquent owner, has been divided into additional subparts, which expands the Section to “(a) – (f)”. Subsection (a) has been clarified regarding the obligation of a tenant to pay rent to include all monetary obligations due to the association by the owner. A form has been added for the written demand on a tenant for the payment of the rent.
Section 719.303(3), (4), (5) and (6), regarding fining, suspending use rights and voting rights, have been revised and/or added. A new Subsection (3)(a) has been added to provide that an association may suspend use rights for document violations. Suspensions for covenant violations and fines require advance notice and a hearing before a committee to approve the fine or suspension.
Subsection (4) has been added and clearly provides for the suspension of use rights for individuals delinquent for more than ninety (90) days on a monetary obligation due to the association without the need for a hearing before a committee.
Subsection (5) has been added to provide for the suspension of voting rights due to nonpayment of a monetary obligation more than 90 days delinquent. It also provides that a suspended voting interest will not be included toward the total number of votes necessary for a quorum, the number of votes required to conduct an election or the number needed to approve action by the association under the governing documents.
A new Subsection (6) has been included to clearly provide that suspensions under (4) and (5) for delinquent owners, including the suspension of voting rights, do not require a hearing before a committee, but rather at a properly noticed board meeting. Upon approval, written notice of the action is required to all affected parties.
House Bill 59 was also adopted, which amends Section 48.031, involving access to gated or otherwise secured communities by licensed process servers. The new provisions state that a gated residential community, including a condominium or cooperative, shall grant unannounced entry, including to common areas and common elements, to a person attempting to serve process on a defendant or a witness who resides in or is known to be within the community.
We understand that there are several significant changes made for 2011 and that the synopsis set forth herein is to provide an overview of the changes that most appreciably affect association operations. If you have further questions regarding any of the new provisions, please contact this office.