On June 14, 2013, the Governor signed into law the proposed legislation identified as House Bill 73, which makes changes to Chapters 718, 719 and 720 of Florida Statutes. Except as otherwise set forth in the Bill, the changes are effective July 1, 2013.
Section 399.02(9) F.S., has been revised, removing the deadline for upgrades to existing elevators per safety code. The revised provision now indicates upgrades are only required when the elevator is replaced or undergoes major modifications.
CONDOMINIUM REVISIONS
Changes to Section 718.111(8) F.S., removed language regarding approval requirements for the association to purchase any land or recreational lease, referring such issues to the provisions of Section 718.114 F.S. (and eliminates possible confusion or conflict with the provisions of that Section).
Section 718.111(11) F.S., regarding Association insurance, makes the effort to clarify that certain obligations of the association apply to damages only when caused by an “insurable event”. Additionally, it further clarifies unit owner responsibility for reconstruction costs, including that such costs are collected as an assessment against the unit through the lien and foreclosure process.
Copying of Official Records by an inspecting owner is addressed in changes to Section 718.111(12)(c) F.S. The new provision allows for a portable device to be used by a member or his or her authorized representative for copies and, in such event, at no charge. Subsection (c)5. has been revised to allow for the creation of a directory containing the name, parcel address and telephone number of each owner, but any owner may request, in writing, to withhold telephone number.
Section 718.111(13) F.S., has been revised to increase threshold gross budget levels relative to the specific financial reporting requirement. Associations with annual revenues between $150,000 and $300,000 minimally are required to prepare a compilation; those with annual revenues between $300,000 and $500,000 must minimally prepare a reviewed financial report; and, those with annual revenues of over $500,000 must minimally prepare an audit. Associations with annual revenues of less than $150,000 must prepare a report of cash receipts and expenditures, as must associations with any level of annual revenues if it operates fewer than 50 units (reduced by the change from fewer than 75 units). The minimum reporting requirements continue to be able to be reduced each year upon a vote of the membership, unless the bylaws mandate a specific level of reporting.
With respect to unit owner meetings and board service, Section 718.112(2)(d)(2) F.S., has been revised to remove the requirement of a vote of owners to affirm 2 year staggered terms when 2 year staggered terms are expressed in the articles or by-laws. This subsection also clarifies when an owner is ineligible be a candidate for the board and listed on the ballot. If the person desiring to be a candidate is delinquent with any monetary obligation, in any amount at the 40 day cut off for ballot eligibility, that person is not eligible to be on the ballot.
Section 718.112(2)(d)(3) F.S., has had a provision added that an association is only required to broadcast notice of meetings if it is the only means of notice.
Section 718.112(2)(d)(4) F.S., clarifies that the prohibition on proxy voting for director elections do not apply to timeshare condominiums. Subsection (b) has been revised to add that director certifications are to be maintained for the greater of the length of term on the Board if uninterrupted or 5 years. A new Subsection (c) has been added to indicate that any challenge to the elections process must be commenced within 60 days after the announcement of the results.
Section 718.112(2)(j) F.S., has been revised regarding certain recall related issues. New subsections (5) and (7) were added, authorizing the unit owner representative for a recall attempt to file a petition for arbitration to challenge the failure of the board to act on the recall, and a recalled board member to file such a petition to challenge the validity of the recall in the instance that the board otherwise does not. A new subsection (8) has been added to provide that no petition will be accepted by the Division if there are 60 or fewer days until the next scheduled election, or when 60 or fewer days have elapsed since the election of the board member sought to be recalled.
Changes to Section 718.113(5) F.S., address the hurricane protection provision and attempt to clarify that doors and other types of code-compliant hurricane protection are included in what can be installed by the association or unit owner. The definition of what is permitted to be installed has been expanded to include impact glass, doors or other types of code-compliant protection.
Section 718.115 F.S., has been revised to incorporate the same clarifications as in Section 718.113 F.S. as to expenses of installation of hurricane protections and also clarifies that for an owner to receive a credit for the costs associated with the installation of hurricane protection by the association, the owner installation must comply with current applicable building codes and be the same type of code-compliant protection being installed by the association.
Section 718.303 F.S., further clarifies areas of the condominium property which cannot be suspended for violations of the governing documents, adding limited common elements, common elements needed to access the unit, utility services, parking spaces, or elevators.
Section 718.403 F.S., has been revised regarding phase condominiums. All phases must be added within seven (7) years of the original recording of the declaration of condominium unless amendment extending time approved by unit owners during the last three (3) years of the seven (7) year period, and may not be greater than ten (10) years from the original recording date. A new Section 718.406 F.S. has been added, addressing condominiums created within condominium parcels.
COOPERATIVES
Section 719.104(2) F.S., has been revised regarding official records, addressing where records are kept and for how long. Association records must be maintained for at least seven (7) years and within forty-five (45) miles of the cooperative property or within the county in which the cooperative property is located; adds prevailing party fee entitlement to a person who prevails in the enforcement action to obtain inspection access from person in control of the records; allows the use of a portable device for copying, at no charge; further defines privileged records that are not open to inspection, expanding what is considered attorney/client communication, adding personnel records, and personal identifying information. It also allows for a directory of owner information to include the name, parcel address and telephone number, but must allow an owner the option to opt out of including telephone number.
Section 719.1055 F.S., addresses amendment of cooperative documents. A new subsection (7) has been added to include a process to address the amendment of documents when mortgagee consent to an amendment is required.
Section 719.106(1)(c) F.S., clarifies that a board or committee meeting to discuss personnel matters may be closed by membership.
Section 719.106(1)(d)(1)(b) F.S., adds a certification requirement for directors, providing the option of filling out a written certification or obtaining an education certificate. The option for Division-approved educational curriculum has also been incorporated into the Statute.
Section 719.106(b)(f) F.S., makes changes to the recall procedures. New subsections (5) and (7) were added, authorizing the unit owner representative for a recall attempt to file a petition for arbitration to challenge the failure of the board to act on recall, and a recalled board member to file such a petition to challenge the validity of the recall in the instance that the board otherwise does not. A new subsection (8) has been added to provide that no petition will be accepted by the Division if there are 60 or fewer days until the next scheduled election, or when 60 or fewer days have elapsed since the election of the board member sought to be recalled.
Section 719.303, further clarifies areas of the cooperative property which cannot be suspended for violations of the governing documents, adding limited common elements, common elements needed to access the unit, utility services, parking spaces, or elevators.
HOMEOWNERS ASSOCIATION
Section 720.303(5) F.S., regarding inspection of official records, now provides that portable devices are permitted to copy official records without charge. In Subsection (c)3, personnel records of the management company employees are also not open to inspection. Subsection (c)5 allows for a directory of owner information to include the name, parcel address and telephone number, but must allow an owner the option to opt out of including telephone number.
Section 720.303(7) F.S., has been revised to increase threshold gross budget levels relative to the specific financial reporting requirement. Associations with annual revenues between $150,000 and $300,000 minimally are required to prepare a compilation; those with annual revenues between $300,000 and $500,000 must minimally prepare a reviewed financial report; and, those with annual revenues of over $500,000 must minimally prepare an audit. Associations with annual revenues of less than $150,000 must prepare a report of cash receipts and expenditures.
Section 720.303(10) F.S., has been revised relative to recall procedures. New subsections (g) and (k) were added, authorizing the unit owner representative for a recall attempt to file a petition for arbitration to challenge the failure of the board to act on recall, and a recalled board member to file such a petition to challenge the validity of the recall in the instance that the board otherwise does not. A new subsection (l) has been added to provide that no petition will be accepted by the Division if there are 60 or fewer days until the next scheduled election, or when 60 or fewer days have elapsed since the election of the board member sought to be recalled.
Section 720.305(2)(a) F.S., clarifies those items or areas that may not be suspended for violation of the governing documents, to include the portion of the common areas used to provide access or utility services to the parcel. It also may not impair the right of an owner or tenant of a parcel to have vehicular and pedestrian ingress to and egress from the parcel, including the right to park.
Section 720.306(1)(d) F.S., addresses amendment of governing documents. A new subsection (d) has been added to include a process to address the amendment of documents when mortgagee consent to an amendment is required.
Section 720.306(6) F.S., has been revised, deleting the requirement that an owner desiring to speak at a membership meeting must submit a written request to speak prior to the meeting.
Section 720.306(9) F.S., has been revised to provide that any election challenge must be commenced within sixty (60) days after election results are announced.