6408 Call Leg Guide 2013 Hoa

8/9/2019 6408 Call Leg Guide 2013 Hoa

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2013 Legislative Guide forHomeowners Associations

The Florida Legislatures 2013 Amendments to Laws Affecting Homeowners Associations

House Bill 73, Relating to Residential PropertiesHouse Bill 7119, Relating to Homeowners Associations

House Bill 87, Relating to Mortgage ForeclosuresSenate Bill 286, Relating to Design Professionals

And Other Bills of Note


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CALL 2013 Legislative Guide for Homeowners Associations

PAR IHOMEOWNERS ASSOCIA ION OPERA IONS AND PROCEDURESHB 73 (Representative Moraitis), Relating to Residential Properties

Chapter 2013-188, Laws o Floridaand

HB 7119 (Representative LaRosa), Relating to Homeowners AssociationsChapter 2013-218, Laws o Florida

Effective Date: July 1, 2013Official Records 2Budgets 3

Financial Reporting 3Recalls 4Reporting o Department O Business And Pro essional Regulation (DBPR) 5Board Member Certication And Education 6Contracts With Board Members 7Goods or Services o Value to Board Members/HOA Anti Kick-Back Provision 7Criminal Charges Against A Board Member 8Insurance And Fidelity Bonding 8Suspension O Use Rights 9Amendments o Governing Documents 9

Election O Directors 10Developer urnover rigger Date 10Developer Amendments O Governing Documents 11Association Liability For Unpaid Assessments 11Community Association Managers 11

PAR IIMOR GAGE FORECLOSURESHB 87 (Representative Passidomo), Relating to Mortgage Foreclosures

Chapter 2013-137, Laws o FloridaEffective Date: June 7, 2013

12

Order o Show Cause 12

PAR IIILIMI A ION OF LIABILI Y IN ENGINEERING & ARCHI EC & O HERDESIGN PROFESSIONAL CON RAC S

SB 286 (Sen. Negron), Relating to Design Pro essionalsChapter 2013-028, Laws o Florida

Effective Date: July 1, 2013

13

PAR IVMISCELLANEOUS BILLS OF IN ERES 14

2013 Becker & Poliakoff


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PAR IHOMEOWNERS ASSOCIA ION OPERA IONS AND PROCEDURESHB 73 (Representative Moraitis), Relating to Residential Properties

Chapter 2013-188, Laws of Floridaand

HB 7119 (Representative LaRosa), Relating to Homeowners AssociationsChapter 2013-218, Laws of Florida


OFFICIAL RECORDS720.303(5), F.S. (HB 7119)

Te official records shall be maintained or at least 7 years and be made available or inspection orphotocopying within 45 miles o the community or within the county in which the association is located.

At the option o the association, the official records may be made available to a parcel owner electronically via the Internet or by allowing the records to be viewed in electronic ormat on a computer screen andprinted upon request.

Te association may charge a member or the costs required or personnel to retrieve and copy the recordsi : (1) the time spent retrieving and copying the records exceeds one-hal hour; (2) the personnel costsdo not exceed $20 per hour; and (3) the copies made exceed 25 pages. (Note: Te previous law allowedreasonable costs or personnel ees).

Owners may be charged no more than $.25 per page (down rom $.50 per page) or copies o officiarecords made on the associations copier.

I the association does not have a photocopy machine available where the records are kept, or i the recordsrequested to be copied exceed 25 pages in length, the association may have the copies made by an outsideduplicating service and may charge the actual cost o copying, as supported by the vendor invoice.

720.303(5), F.S. (HB 73)

Personnel records o association or management company employees are not accessible or inspection bymembers or parcel owners. Te previous statute did not mention management company employees.

An association may print and distribute to parcel owners a directory containing the name, parcel addressand telephone number o each parcel owner. However, an owner may exclude his or her telephone number

rom the directory by so requesting in writing to the association.

720.303(5), F.S. (HB 73 and HB 7119)

Te association shall allow a member or his or her authorized representative to use a portable device, suchas a smartphone, tablet, portable scanner, or other technology capable o scanning or taking pictures, tomake an electronic copy o the official records in lieu o providing the member or his or her representativewith a copy o such records. Te association may not charge a ee or such use o a portable device.

2013 Legislative Guide for Homeowners Associations 2
http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49264http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=50854http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=50854http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49264


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PRAC ICAL POIN ER: Te associations records inspection procedures and policies will need to be revised inlight o changes to Section 720.303(5), Florida Statutes.

PRAC ICAL POIN ER: Te association may now publish a directory that includes the owners names, parceladdresses and telephone numbers. Tose owners who do not want their telephone number published must noti ythe association in writing. Be ore the association publishes a member directory, it should make sure that it complieswith the new law. I the association wishes to publish a directory, it should take affirmative action to noti y allmembers o its intention to do so, so that members who do not wish to have their telephone numbers published

know that they need to act in advance o the publication date.

BUDGE S

720.303(6)(d), F.S. (HB 7119)

Reserves that are established by the developer must designate the components or which the reserveaccounts may be used.

NO E: Reserves established by the developer or by a vote o the owners are ofen re erred to as statutory reserves.Once established as provided in Section 720.303(6)(d), statutory reserves must be ully unded unless waived by

a vote o the owners. Te previous version o the statute stated that i statutory reserves are established by a vote o the owners, the reserve accounts must designate the components or which the reserve accounts are tobe established. However, the statute did not specically state that statutory reserve accounts established by thedeveloper must likewise designate the components or which the reserve accounts may be used. Tis changeclaries that whether the statutory reserve accounts are established by the developer or by a vote o the owners, thereserve schedules must designate the components or which the reserve accounts may be used.

FINANCIAL REPOR ING

720.303(7), F.S. (HB 73)

Changes the thresholds or the nancial reporting requirements as ollows: Compiled nancial statements are required or associations with annual revenues o $150,000 or more, but

less than $300,000 (previously $100,000 or more but less than $200,000).

Reviewed nancial statements are required or associations with annual revenues o at least $300,000, butless than $500,000 (previously $200,000 or more but less than $400,000).

Audited nancial statements are required or associations with annual revenues o $500,000 or more(previously $400,000).

Associations with total annual revenues o less than $150,000 shall prepare a report o cash receipts andexpenditures (previously $100,000).

PRAC ICAL POIN ER: Te associations reporting requirement may be reduced in light o the increases in thedollar amount revenue thresholds. However, the association should check to make sure that the bylaws do nottrack the language in the previous version o the statute.



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RECALLS

720.303(10), F.S. (HB 73)

I the board o directors ails to duly notice and hold the required board meeting afer being served with arecall petition, or ails to le a petition or arbitration challenging the recall, the unit owner representativemay le a petition or arbitration pursuant to Section 718.1255 challenging the boards ailure to act. Tepetition must be led within sixty (60) days afer the expiration o the applicable 5 ull business day period.

Te arbitrators review o such a petition or arbitration is limited to the sufficiency o service on the boardand the acial validity o the written agreement or ballots led.

A board member who has been recalled may le a petition or arbitration pursuant to Sections 718.112(2)(j) and 718.1255 challenging the validity o the recall. Te petition or arbitration must be led within sixty(60) days afer the recall is deemed certied.

Te Division o Condominiums, imeshares and Mobile Homes (Division) may not accept a petition orrecall arbitration regardless o whether the recall was certied, when there are sixty (60) or ewer days untilthe scheduled reelection o the board members sought to be recalled or when sixty (60) or ewer days haveelapsed since the election o the board members sought to be recalled.

NO E: Te statute still provides that i the board does not certi y a recall, it shall le a petition or recall arbitrationwith the Division. However, the statute has now been amended to prohibit the Division rom accepting a petition

or recall arbitration when there are sixty (60) or ewer days until the scheduled reelection o the board memberssought to be recalled. I the board does not le a petition or arbitration, the unit owner representative may le apetition or arbitration challenging the boards ailure to act. However, the Division is prohibited rom accepting jurisdiction o the unit owner representatives petition when there are sixty (60) days or ewer until the scheduledreelection o the board members sought to be recalled. Tus, the statute now sets up a procedure whereby theboards decision on whether to certi y the recall may not be effectively challenged i there are sixty (60) days or

ewer until the scheduled reelection o the board members sought to be recalled.

PRAC ICAL POIN ER: I there is an attempted recall o a board member, the board should discuss with counselwhether it would be appropriate to certi y the recall and le a petition or recall arbitration.



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REPOR ING O DEPAR MEN OF BUSINESS AND PROFESSIONAL REGULA ION(DBPR)

720.303(13), F.S. (HB 7119)

Every CAM, or the association when there is no CAM, shall report to the Division by November 22, 2013,the name o the association, the FEIN number, the mailing and physical address, the number o parcels,and the total amount o revenues and expenses rom the annual budget o the association.

I the association is still under the control o the developer, the in ormation provided to the Division shallalso include the name and address o the developer and the number o parcels owned by the developer.

Te reporting requirement shall be a continuing obligation on each association until the requiredin ormation is reported to the Division.

Te Department o Business and Pro essional Regulation (DBPR) shall establish and implement, by nolater than October 1, 2013, a registration system through an Internet website that will allow the reportingto take place through the website.

DBPR shall, by no later than December 1, 2013, submit a report o the data reported to the Governor, thePresident o the Senate, and the Speaker o the House o Representatives.

DBPR shall adopt administrative rules to implement these requirements.

Te reporting requirement will expire on July 1, 2016, unless reenacted by the Legislature.

Te statute is silent regarding the penalty or non-compliance.

NO E: Te reporting requirement in Section 720.303(13), Florida Statutes, is or homeowners associations

that meet the denition o homeowners associations in Section 720.301(9), Florida Statutes. Tere ore, theassociations that must report to the Division are associations that meet the ollowing criteria:

(1) the voting membership is made up o parcel owners or their agents, or a combination thereo , and(2) membership is a mandatory condition o parcel ownership, and(3) the association is authorized to impose assessments that, i unpaid, may become a lien on the parcel.

Note that the term homeowners association does not include a community development district or other similarspecial taxing district created pursuant to the statute.

PRAC ICAL POIN ER: Associations that meet the denition o homeowners association in Section

720.301(9), Florida Statutes, must report to the Division by November 22, 2013 the ollowing in ormation:a. Legal name;

b. Federal employer identication number (FEIN);



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c. Mailing and physical address;

d. otal number o parcels; and

e. otal amount o revenues and expenses rom the associations budget.

Te Division is required to have a website available or such reporting by October 1, 2013. Tere ore, homeownersassociations may wish to wait until October 1, 2013 to submit the required in ormation so that such in ormation

can be provided through the Divisions website.Provided that the association registers by November 22, 2013, the association will have no urther obligation tothe Division.

BOARD MEMBER CER IFICA ION AND EDUCA ION

720.3033(1), F.S. (HB 7119)

Within 90 days afer being elected or appointed to the board, each director shall certi y in writing to thesecretary o the association that he or she has read the associations declaration o covenants, articles o

incorporation, bylaws and current written rules and policies; that he or she will work to uphold suchdocuments and policies to the best o his or her ability; and that he or she will aith ully discharge his orher duciary responsibility to the associations members.

In lieu o the written certication, the newly elected or appointed director may submit a certicate ohaving satis actorily completed the educational curriculum administered by a Division-approved educationprovider within 1 year be ore or 90 days afer the date o election or appointment.

Te written certication or educational certicate is valid or the uninterrupted tenure o the director onthe board.

A director is suspended rom the board until he or she complies with the requirement and the board maytemporarily ll the vacancy during the period o suspension

Te association shall retain each directors written certication or educational certicate or 5 years aferthe directors election, however, the ailure to retain the certicate does not affect the validity o any boardaction.

NO E: As soon as the law is implemented, Becker & Poliakoff, P.A. will be registering with the Division as aneducation provider or homeowners association board member education. We will also provide certication

orms, ree o charge or our annual retainer clients with client annual meeting packages, or upon request o aclient.

PRAC ICAL POIN ER: Any board member elected or appointed afer July 1, 2013 must either (1) sign acertication orm OR (2) take an education class approved by the Division within 90 days afer the date o electionor appointment. Tis requirement does not apply to current directors, but will become an important considerationwhen the next election or appointment to the Board occurs, even i current Board members are elected or anadditional term.



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CON RAC S WI H BOARD MEMBERS

720.3033(2), F.S. (HB 7119)

I the association enters into a contract or other transaction with any o its directors or a corporation,rm, association that is not an affiliated homeowners association, or other entity in which an associationdirector is also a director or officer or is nancially interested, the board must:

(1) comply with the requirements o s. 617.0832.(2) enter the disclosures required by s. 617.0832 into the written minutes o the meeting.(3) Approve the contract or other transaction by the affirmative vote o 2/3rds o the directors present.(4) At the next regular or special meeting o the members, disclose the existence o the contract or

other transaction to the members. Upon motion o any member, the contract or transaction shallbe brought up or a vote and may be canceled by a majority vote o the members present. I themembers cancel the contract, the association is only liable or the reasonable value o goods andservices provided up to the time o cancellation and is not liable or any termination ee, liquidateddamages or other penalty or such cancellation.

NO E: A similar provision is also in Chapter 718, the Condominium Act. Te disclosures required by Section617.0832, Florida Statutes, involve the disclosure o the relationship or interest that the board member has with theentity with which the association is considering contracting.

PRAC ICAL POIN ER: I your association decides to enter into a contract in which a board member has aninterest as discussed above, make sure to address disclosing the contract at the next membership meeting.

GOODS OR SERVICES OF VALUE O BOARD MEMBERS/HOA AN I KICK-BACK PROVISION

720.3033(3), F.S. (HB 7119)

An officer, director or manager may not solicit, offer to accept, or accept any good or service o value orwhich consideration has not been provided or his or her benet or or the benet o a member o his or herimmediate amily rom any person providing or proposing to provide goods or services to the association.

I the board nds that an officer or director has violated this provision, the board shall immediately removethe officer or director rom office.

Te vacancy shall be lled according to law until the end o the directors term o office.

However, an officer, director, or manager may accept ood to be consumed at a business meeting with a value oless than $25 per individual or a service or good received in connection with trade airs or education programs.

NO E: A similar provision is also ound in Chapter 718, the Condominium Act, except that the CondominiumAct does not include the $25 exception or ood to be consumed at a business meeting. Te Condominium Actalso does not require the immediate removal o the officer or director rom office. Rather, in a condominiumassociation, the director or manager is subject to a civil penalty rom the Division.



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CRIMINAL CHARGES AGAINS A BOARD MEMBER

720.3033(4), F.S. (HB 7119)

A director or officer charged by in ormation or indictment with a elony thef or embezzlement offenseinvolving the associations unds or property is removed rom office.

Te board shall ll the vacancy according to general law until the end o the period o the suspension orthe end o the directors term o office, whichever occurs rst.

I the charges are resolved without a nding o guilt or without acceptance o a plea o guilty or nolcontendere, the director or officer shall be reinstated or any remainder o his or her term o office.

An association member who has such criminal charges pending may not be appointed or elected to aposition as a director or officer.

NO E: A similar provision is also in the Condominium Act.

INSURANCE AND FIDELI Y BONDING720.3033(5), F.S. (HB 7119)

All associations are required to maintain insurance or a delity bond or all persons who control or disburseunds o the association in an amount to cover the maximum unds that will be in the custody o the

association or its management agent at any one time.

Te term persons who control or disburse unds o the association includes, but is not limited to, personsauthorized to sign checks on behal o the association, and the president, secretary, and treasurer o theassociation.

Te association will be responsible or the cost o such insurance or delity bonding as a common expense.

Te requirement or such insurance or delity bonding may be waived annually by a majority o the votinginterests present at a properly called meeting o the association.

NO E: Te Condominium Act also requires delity bonding, but does not allow the owners to waive therequirement or delity bonding.

PRAC ICAL POIN ER: Te association must obtain the insurance or delity bond required by Section720.3033(5), Florida Statutes, or must annually obtain the approval o the owners at a meeting to waive suchrequirement.



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SUSPENSION OF USE RIGH S

720.305(2)(a), F.S. (HB 73)

When an association suspends the right o an owner, or an owners tenant, guest or invitee to use thecommon areas or ailure to comply with any provision o the governing documents, such suspensiondoes not apply to that portion o the common areas used to provide access or utility services to the parcel.Further, a suspension may not impair the right o an owner or tenant to have vehicular and pedestrian

ingress or egress rom the parcel, including, but not limited to, the right to park.

NO E: Te previous statute contained a glitch as it provided that these types o use rights may not be suspendedor ailure to pay a monetary obligation, but was silent on bad behavior suspensions. Tis change makes it clear

that when the suspension o use rights is or the ailure to comply with the governing documents (i.e., or badbehavior), parking, vehicular and pedestrian ingress or egress rom the parcel, utility services, and common areasused to provide access, may not be suspended. Notably, the statute is still silent on the authority o the associationto suspend cable television.

AMENDMEN S O GOVERNING DOCUMEN S

720.306(1)(b), F.S. (HB 7119) Within 30 days afer recording an amendment to the governing documents, the association shall provide

copies o the amendment to the members.

720.306(1)(d), F.S. (HB 73)

Incorporates the mortgagee consent provisions previously adopted in the Condominium Act and providesor a streamlined method o obtaining mortgagee consent.

I the mortgage was recorded on or afer July 1, 2013, any provision in the governing documents thatrequires the consent or joinder o mortgagees is en orceable only as to amendments that adversely affectthe priority o the mortgagees lien or the mortgagees rights to oreclose its lien or that otherwise materiallyaffect the rights and interests o the mortgagees.I the mortgage was recorded be ore July 1, 2013, anyexisting provisions in the governing documents requiring mortgagee consent are en orceable.

In securing the consent or joinder, the association may rely on the public records to identi y the holderso outstanding mortgages. Te association must also request in writing rom each owner whose unit isencumbered by a mortgage any in ormation that the owner has regarding the name and address o theperson to whom mortgage payments are currently being made.

Te associations notice must be sent to all available addresses provided to the association and must be sentby a method that establishes proo o delivery. Any mortgagee who ails to respond within 60 days afer thedate o mailing is deemed to have consented to the amendment.

Any amendment adopted without the required consent o a mortgagee is voidable only by a mortgagee whowas entitled to notice and an opportunity to consent. An action to void an amendment is subject to thestatute o limitations beginning ve (5) years afer the date o discovery as to amendments that adverselyaffect the priority o the mortgagees lien or the mortgagees rights to oreclose its lien or that otherwise



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materially affect the rights and interests o the mortgagees. As to all other amendments, the statute olimitations is ve (5) years afer the date o recordation o the certicate o amendment.

PRAC ICAL POIN ER: I mortgagee consent provisions have prevented the association rom amending thegoverning documents, the association should consider whether the new law will allow the association to nowamend the governing documents.

ELEC ION OF DIREC ORS

720.306(9), F.S. (HB 7119)

Nominations rom the oor are not required i the election process allows candidates to be nominated inadvance o the meeting.

An election is not required unless more candidates are nominated than vacancies exist.

720.306(9), F.S. (HB 73)

Any challenge to the election process must be commenced within sixty (60) days a ter the election results are announced.

PRAC ICAL POIN ER: Te Association should review its election procedures to determine whether it willneed to allow nominations rom the oor at the annual meeting. Some associations may be able to do away withthat requirement, depending on the election procedures in the governing documents.

DEVELOPER URNOVER RIGGER DA E

720.307, F.S. (HB 7119)

Members other than the developer are now also entitled to elect at least a majority o the board o thehomeowners association i any o the ollowing events occur:

1. upon the developer abandoning or deserting its responsibility to maintain and complete theamenities or in rastructure as disclosed in the governing documents.

2. upon the developer ling a petition or bankruptcy under Chapter 7 o the Bankruptcy Code.3. upon the developer losing title to the property through oreclosure or the trans er o a deed in

lieu o oreclosure, unless the successor owner has accepted an assignment o developer rights andresponsibilities rst arising afer the date o such assignment.

4. upon a receiver or the developer being appointed and not being discharged within 30 days afersuch appointment, unless the court determines within 30 days afer such appointment that trans ero control would be detrimental to the association or its members.

Members other than the developer are now are entitled to elect at least one member o the board i 50% othe parcels in all phases o the community which will ultimately be operated by the association have beenconveyed to the members.

NO E: Te transition triggers described above are in addition to the two triggers in Section 720.307(1)(a) and(b), Florida Statutes, and are similar to those ound in the Condominium Act.



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DEVELOPER AMENDMEN S OF GOVERNING DOCUMEN S

720.3075(5), F.S. (HB 7119)

Prior to turnover, the right o the developers to amend the governing documents is subject to a test oreasonableness. Tis prohibits the developer rom unilaterally making amendments to the governingdocuments that: are arbitrary, capricious, or in bad aith; destroy the general plan o development;prejudice the rights o existing nondeveloper members to use and enjoy the benets o common property;or materially shif economic burdens rom the developer to the existing nondeveloper members.

ASSOCIA ION LIABILI Y FOR UNPAID ASSESSMEN S

720.3085(2)(b), F.S. (HB 7119)

Te term previous owner shall not include an association that acquires title to a delinquent propertythrough oreclosure or by deed in lieu o oreclosure.

Te present parcel owners liability or unpaid assessments is limited to any unpaid assessments thataccrued be ore the association acquired title to the delinquent property through oreclosure or by deed inlieu o oreclosure.

Tis is intended to address the Aventura Management, LLC v. Spiaggia Ocean Condominium Associationcase and when the association takes title to a delinquent parcel through oreclosure or by deed in lieu o

oreclosure. Te intent is to allow the association to demand past due assessments rom the owner thattakes title to the property afer the association.

NO E: Un ortunately, this provision was not added to Chapter 718, the Condominium Act, or Chapter 719, theCooperative Act.

COMMUNI Y ASSOCIA ION MANAGERS

468.436(2)(b)7., F.S. (HB 7119)

Community association managers (CAMs) can be disciplined or violating any provision o chapters 718,719 and 720 during the course o per orming CAM services.



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PAR IIMOR GAGE FORECLOSURESHB 87 (Representative Passidomo), Relating to Mortgage Foreclosures

Chapter 2013-137, Laws of FloridaEffective Date: June 7, 2013

ORDER O SHOW CAUSE702.10(1), F.S.

Te changes to Section 702.10(1), Florida Statutes, include an important provision or associationsthat will allow associations in some cases to move stalled mortgage oreclosure cases by ling or anexpedited order to show cause procedure.

Specically, the changes provide that i a junior lienholder (including a condominium, cooperativeor homeowners association) requests an order to show cause be entered, the judge shall immediatelyreview the request and the court le in chambers and without a hearing and, i the le meets therequirements o the statute, the judge shall promptly issue an order directed at the other parties to showcause why a nal judgment o oreclosure should not be entered.

Te order to show cause procedure in Section 702.10(1), Florida Statutes, applies even i the residenceis owner-occupied.

NO E: Te law already allows a bank to le such a request or an order to show cause. Te bill extends thisright to other lienholders, including homeowners associations.

NO E: HB 87 also includes a number o other changes to the mortgage oreclosure process including: (1)mortgagees will have only one year to en orce a deciency judgment; (2) the deciency judgment (in the caseo an owner-occupied residential property) may not exceed the difference between the judgment amount or, inthe case o a short sale, the outstanding debt, and the air market value o the property on the date o the sale;

(3) requires the initial disclosure o a mortgagees right to oreclose the mortgage note and the acts supportingthat status, thereby ensuring the availability o documents necessary to the prosecution o the case; (4) provides

or the nality o a mortgage oreclosure judgment by limiting claims to set aside or challenge a nal judgmento oreclosure to monetary damages only, i , among other things, the property has been acquired or value bya person not affiliated with the oreclosing lender or the oreclosed owner; (5) provides that a mortgagee maynot request that the owner in oreclosure make payments during the pendency o the oreclosure proceedingsor vacate the premises i the home is owner-occupied; and (6) provides various means o adequate protection

or the en orcement o lost, destroyed, or stolen instruments in oreclosure.

http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49274http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49274


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PAR IIILIMI A ION OF LIABILI Y IN ENGINEERING & ARCHI EC &O HER DESIGN PROFESSIONAL CON RAC S

SB 286 (Sen. Negron), Relating to Design ProfessionalsChapter 2013-028, Laws of Florida


558.0035, F.S.

Design pro essionals are no longer personally liable or negligence occurring within the course and scopeo a pro essional services contract with an entity with which the design pro essional is affiliated i certaiconditions are met including:

o Te contract is between the business entity and a claimant or with another entity or the provisiono pro essional services to the claimant;

o Te contract does not name the individual employee or agent who will per orm the services as aparty to the contract;

o Te contract includes a statement in uppercase ont at least 5 point sizes larger than the rest o thetext that the individual may not be held individually liable or negligence;

o Te business entity maintains any pro essional liability insurance required under the contract;o Any damages are solely economic in nature and the damages do not extend to personal injuries or

property not subject to the contract.

Design pro essionals are architects, engineers, interior designers, landscape architects, surveyors, andgeologists.

PRAC ICAL POIN ER: Associations should have all contracts with a design pro essional reviewed by theirattorney to protect the association. I the contract includes the prominent statement described above, the

association may only have recourse against a shell company and a very expensive problem on its hands.

http://www.flsenate.gov/Session/Bill/2013/0286http://www.flsenate.gov/Session/Bill/2013/0286


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PAR IVMISCELLANEOUS BILLS OF IN ERES

HB 77 (Rep. Porter), Relating to Landlords and enants (Chapter 2013-136, Effective Date: July 1,2013). HB 77 amends Part II o Chapter 83, Florida Statutes, the Florida Residential Landlord and enantAct. Among other things, the bill includes a provision stating that landlords may not retaliate against atenant i the tenant has paid rent to a condominium, cooperative, or homeowners association afer demandis made by the association in order to pay the landlords obligation to the association.

HB 77 also amends a number o provisions which are intended to make it easier or landlords to evict tenants.For example, i the eviction is or noncompliance with the terms o the lease, and such noncompliancerequires the landlord to give the tenant an opportunity to cure the violation, the landlord may begineviction proceedings i the violation re-occurs within 12 months, without having to give the tenant anotherwarning and opportunity to cure. HB 77 also provides that i the landlord accepts partial payments, thelandlord may still seek to terminate the rental agreement or bring a civil action or noncompliance.

NO E: I the association is a landlord, or encounters disputes where the landlord/tenant law may applypursuant to the associations governing documents, the association should consult with counsel to makesure that its rental agreement con orms to the new law and that proper procedures are ollowed under thenew law when necessary to remove a tenant.

HB 277 (Rep. Rehwinkel Vasilinda), Relating to Assessment of Residential and Nonhomestead RealProperty (Chapter 2013-077, Laws of Florida, Effective Date July 1, 2013). HB 277 creates Section193.624, Florida Statutes to provide that when determining the assessed value o real property used orresidential purposes, a property appraiser may not consider an increase in the just value o the propertyattributable to the installation o renewable energy source device.

NO E: HB 277 does not amend Section 163.04, Florida Statutes, which is the section that deals withthe authority o owners to install solar collectors, clothelines or other energy devices based on renewableenergy. Section 163.04 still provides that an association may not deny permission to install solar collectorsor other energy devices with respect to residential dwellings and within the boundaries o a condominiumunit. However, the association may determine the specic location where solar collectors may be installedon the roo within an orientation to the south or within 45 east or west o due south i such determinationdoes not impair the effective operation o the solar collectors.

SB 342 (Sen. Trasher), Relating to Rental of Homestead Property (Chapter 2013-064, Laws of Florida,

Effective Date: July 1, 2013). SB 342 amends Section 196.061, Florida Statutes, to provide that the rentalo a dwelling previously claimed to be a homestead or tax purposes shall be considered abandoned untilthe dwelling is physically occupied by the owner. However, the abandonment o the homestead aferJanuary 1 o any year does not affect the homestead exemption or that particular year, unless the propertyis rented or more than 30 days per calendar year or 2 consecutive years.

NO E: Te rental o homestead property or up to 30 days per calendar year is permitted without the

property being considered abandoned or affecting the homestead status o the property. I the homesteadis terminated, any Save Our Homes assessment limitation is or eited.

HB 573 (Rep. Hooper), Relating to Manufactured and Mobile Homes (Chapter 2013-158, Laws ofFlorida, Effective Date: June 12, 2013). HB 573 amends Section 627.351, Florida Statutes, to providethat Citizens Property Insurance Corporation must offer coverage or mobile homes or manu actured

http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49266http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49496http://www.flsenate.gov/Session/Bill/2013/0342http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49733http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49733http://www.flsenate.gov/Session/Bill/2013/0342http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49496http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=49266


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homes or a minimum insured value o at least $3,000. It also amends Section 723.06115, Florida Statutesto provide a procedure or requesting and obtaining unds rom the Florida Mobile Home Relocation

rust Fund to pay or the operational costs o the Florida Mobile Home Relocation Corporation and therelocation costs o mobile home owners.

HB 903 (Rep. Davis and Rep. Waldman), Relating to Adverse Possession (Effective Date: July 1,2013). 1 HB 903 amends Section 95.18, Florida Statutes . Te intent o the bill is to address the problemo individuals squatting illegally on property, while preserving legitimate adverse possession actions.

Te new law requires that the adverse possessor possess the real property or 7 years. Te previous lawre erred to occupying the real property or 7 years. In order to adversely possess property, the personmust meet certain criteria, including but not limited to, paying all outstanding taxes and governmentalliens within 1 year afer entering into possession. A person who attempts to adversely possess propertywithout complying with the statute commits a trespass. I a person who attempts to adversely possessproperty without complying with the statute tries to lease the property to another person, he commits athef.

HB 999 (Rep. Patronis), Relating to Environmental Protection (Submerged Land Leases) (Chapter2013-092, Laws of Florida, Effective Date: July 1, 2013). HB 999 is primarily an environmentalregulation bill. HB 999 includes language impacting associations that have boat docks and submerged landleases. Specically, the bill creates Section 253.0347(2)(e), Florida Statutes, to exempt private residential single-

amily docks designed to moor up to our boats rom paying submerged land lease ees or an area equal to or lethan 10 times the riparian shoreline along sovereignty submerged land on the affected waterbody or the square

ootage authorized or a private residential single- amily dock under rules adopted by the Board o rustees othe Internal Improvement rust Fund or the management o sovereignty submerged lands, whichever is greater.

SB 1770 (Sen. Simmons), Relating to Property Insurance (Chapter 2013-060, Laws of Florida, EffectiveDate: July 1, 2013). Originally, the overriding purpose o SB 1770 was to reduce the overall risk to Citizens,which would have resulted in rate increases. However, the nal version o the bill passed without any rateincreases. Te bill makes a number o changes to the Florida Hurricane Catastrophe Fund, Citizens PropertyInsurance Corporation (Citizens), and Public Adjusters. Some o the more signicant changes to Citizensinclude: (1) requires Citizens to set up a clearinghouse program by January 1, 2014 to shop prospectivecustomers in the private market; (2) effective January 1, 2014, reduces the maximum amount o coverageavailable rom Citizens rom $2 million to $1 million, and urther reduces the $1 million to $700,000 overthree years. It urther provides or an exemption in certain counties i the Office o Insurance Regulation(OIR) determines that the county does not have a reasonable degree o competition; (3) prohibits Citizenscoverage or new buildings on or afer July 1, 2014 seaward o the coastal construction control line; (4)provides that i a private companys offer is within 15 percent o Citizens rate or a new policy and no greatethan the current rate or a renewal, the policyholders property is ineligible or coverage with Citizens; (5)requires Citizens to develop appropriate procedures or acilitating the diversion o ineligible applicantsand existing policyholders or commercial residential coverage into the private insurance market and shallreport such procedures to the President o the Senate and the Speaker o the House o Representatives byJanuary 1, 2014.

1 As o press time, HB 903 is awaiting gubernatorial action. In the unlikely event that it is vetoed, a supplemental LegislativeGuide will be issued.

http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=50146http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=50269http://www.flsenate.gov/Session/Bill/2013/1770http://www.flsenate.gov/Session/Bill/2013/1770http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=50269http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=50146


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BECKER & POLIAKOFF AND CALL

THE VOICE OF COMMUNITY ASSOCIATIONS IN TALLAHASSEE

The Community Association Leadership Lobby (CALL) provides outreach, education and advocacy for communityassociations in Florida. This powerful lobbying organization includes 4,000 member communities with inuentialand politically active leaders motivated to participate in the legislative process. CALL was created by Florida-based international law rm Becker & Poliakoff, P.A. and is a noted authority on legal issues relating to all areas ofcommon ownership housing communities. Annual retainer clients of Becker & Poliakoff are automatically entitledto membership in this powerful lobbying organization.

CALL helps community leaders engage with legislators to work collaboratively on legislation impacting sharedownership housing properties. CALLs goals are accomplished through our full time lawyer and lobbyist inTallahassee, Yeline Goin, who monitors legislation and works closely with legislators and staff to ensure CALLslegislative priorities are being met.

Above all, CALL relies on its thousands of members from legislative districts throughout the state who communicateyear-round with local legislators and actively engage on issues during the session. CALL members are connectedthrough social media and monitor the CALL website (including blog, news feeds and legislative alerts) to stay up todate on legislation, committee hearings, and the latest legislative changes impacting communities.

CALL also provides educational workshops (in person and on line) for enhanced civic engagement. CALL held alive Legislative Webinar entitled The 2013 Florida Legislative Session: Analysis of the Impacts on Community

Associations with Special Guest Representative George Moraitis, the sponsor of HB 73. The webinar focusedprimarily on HB 73, Relating to Residential Properties (impacting condominiums, cooperatives, and homeownersassociations) as well as HB 7119, Relating to Homeowners Associations and HB 87, Relating to MortgageForeclosures. The Webinar is available online. If you were unable to attend, or would like to view it again, theRecorded Webinar is available online, as well as the powerpoint presentation Slides.

Please visit the CALL website atwww.callbp.com to learn more about new legislation, educational workshops andways to contact your legislator through our Legislator Connect program. If you have not received a password orhave forgotten the password to access the CALL website for your community, please contact CALL at 954-364-6012 or email us at [email protected]. Please contact your Association attorney to learn more about whatbeing a part of CALL can do for your community. To become a member of CALL, you must be an annual retainerclient of Becker and Poliakoff. To learn more, please contact your local Becker & Poliakoff ofce.

Florida Ofces: Fort Lauderdale, Fort Myers, Fort Walton Beach, Miramar, Miami, Naples, Orlando,Sarasota, Stuart, Tallahassee, Tampa Bay, West Palm Beach

Visit The Florida Condo & HOA Law Blog for up to date information on issues affectingCondominiums and HOAs in Florida. www.oridacondohoalawblog.com
http://w.on24.com/r.htm?e=620150&s=1&k=A3D6806388B8269AF980775C7885CB39http://www.slideshare.net/LisaWalters2/webinar-the-2013-florida-legislative-session-analysis-of-the-impacts-on-community-associationshttp://www.callbp.com/mailto:[email protected]:[email protected]://www.callbp.com/http://www.slideshare.net/LisaWalters2/webinar-the-2013-florida-legislative-session-analysis-of-the-impacts-on-community-associationshttp://w.on24.com/r.htm?e=620150&s=1&k=A3D6806388B8269AF980775C7885CB39


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Community Association LawBecker & Poliakoff is well-known for its pioneering role in the creation of the law pertaining to theoperation of common ownership housing in Florida. Many of the leading cases in the eld bear theFirms name. Our attorneys are recognized as leaders in the eld through published articles, works,public service, legislative activities and industry group leadership positions.

Resources

Ofce Locations

Firm WebsiteBecker & Poliakoffs website includes podcasts, webinars, informative articlesand information that can assist you and your association.Visit www.becker-poliakoff.com

CALL OnlineThe Community Association Leadership Lobby (CALL) was created to provideclients with the tools and training they need to stay informed on key issues andinuence new legislation in Floridas Capitol. Visit www.callbp.com

The Florida Construction Law Authority TheFlorida Construction Law Authority blog helps readers stay informed about

legislative changes and cases impacting construction projects.Visit www.oridaconstructionlawauthority.com

PostedonJune1, 2010

SB 1196 BecomesLaw:New Condominium& HOARegulationsSB 1196 containssigni cant changesforcommunity associations

GovernorCrist haduntilJune1, 2010toact onSB1196. WhileI haveincluded bullet point explanationsof someof thechanges, overthenext fewweekspleasecheck formoreindepthinformation about howthesenewprovisions willimpact yourassociationsoperations.

Community associations across thestatearebreathingasighof relief -many of themwillnot berequiredtoretro t thebuildings with resprinklers orinstall

realarms, bothexpensivepropositions inlight of therecordnumberofforeclosures andbudget shortfalls. Inmost cases elevatorupgrades canbeput off for ve(5)years -hopefully theresidentialmarket willgainstabilityinthat time, makingthecosts associatedwiththe elevatorimprovementseasiertofund.

Attention: If youare anon-paying, non-resident unit ownerandleaseyour unit, theassociationmay demandfuturepayments of rent fromthetenant tosatisfy your nancialobligations, without lingalawsuit rst.

Legislators alloverthestate heardcomplaints about therepair, upkeepandstaf ngrequirements associatedwithrecreationalfacilities. Payingunitowners weredemonstrably upset (justi ably so)that non-payingownerscouldenjoy theuseof therecreationalfacilities, insomecases precludingpayingowners fromuseduetoover-crowding. Underthis newlaw,associations cansuspendtheuseof recreationalfacilities if assessmentsaremorethanninety (90)days past due. Of course, associations cannotsuspendany utility services, parkingspaces ormeans of access totheunit.Theeffectiveness of suspendinguserights remains tobeseen, but theprovisionitself shouldmakeowners think twicebeforedefaulting.

This billalsoincludes theDistressedCondominiumRelief Act. Whiletheact doesnt protect buyers that acquiretitleafterJuly 1, 2012, it willimpactcondominiumassociations foranumberof years withrespect towarranty,construction, accountingclaims andthelike.

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