NEW LAWS FOR HOMEOWNERS’ ASSOCIATIONS – 2013 LEGISLATIVE SESSION

The Florida Legislature has recently enacted laws imposing new procedures that homeowners’ associations must comply with.  While it would be impossible to summarize all the new laws and statutory changes in this short article, a synopsis of some of the laws is provided.  For a detailed description of all the new changes, you should visit the Division of Florida Condominiums, Timeshares, and Mobile Homes Website at <http://www.myfloridalicense.com/dbpr/lsc>.

Some of the most notable changes are found in Chapters 2013-188 and 2013-218, Laws of Florida (2013).  These laws impose various reporting requirements, and provide changes regarding the provision of official records to HOA members.  The changes took effect on July 1, 2013.  The following is a synopsis of the statutory changes/additions, and a partial summary of sections 720.303 and 718.111, Florida Statutes (2013):

• Chapter 2013-188 amended or created the following Florida Statutes: 399.02; 718.111; 718.112; 718.113; 718.115; 718.303; 718.403; 718.406; 718.5011; 719.104; 719.1055; 719.106; 719.303; 719.501; 720.303; 720.305; and 720.306.  See the following website to read all statutory changes in their entirety: <http://www.myfloridalicense.com/dbpr/lsc/documents/Ch_2013_188.pdf>

 

• Chapter 2013-218 amended or created the following Florida Statutes: 486.436; 720.303; 720.3033; 720.306; 720.307; 720.3075; and 720.3085.  See the following website to read all statutory changes in their entirety: <http://www.myfloridalicense.com/dbpr/lsc/documents/Ch_2013_218.pdf>

 

• § 720.303(13), Fla. Stat. (2013) – Reporting Requirements
  • Homeowners’ associations must register with the Division of Florida Condominiums, Timeshares, and Mobile Homes by November 22, 2013.
    • The Division is currently developing a web portal which will allow associations to register online.  The web portal is to be developed by October 1, 2013.
    • Every homeowner’s association shall report the following information to the division:
      • the association’s legal name;
      • the association’s federal employer identification number;
      • the association’s mailing and physical addresses;
      • the association’s total number of parcels; and
      • the association’s total amount of revenues and expenses from the association’s annual budget.

 

• § 718.111(12), Fla. Stat. (2013) – Official Records
  • Must be maintained for 7 years and made available for photocopying within 45 miles of the community or within the county in which the association is located.
  • Owners may be charged no more than 25 cents per page (down from 50 cents per page) for copies.
  • The association’s right to pass on personnel costs has been restricted.  The association may not prohibit unit owners from using portable devices (such as smart phones, tablets, or portable scanners) to copy documents, and the association may not charge a fee for use of such a portable device.

 

• § 718.111(13), Fla. Stat. (2013) – Year-End Financial Reporting Requirements
  • Associations with total annual revenues of less than $150,000 (previously $100,000) must prepare a report of cash receipts and expenditures.
  • Compiled financial statements are required for associations with annual revenues between $150,000 and $300,000 (previously $100,000 to $200,000).
  • Reviewed financial statements are required for associations with annual revenues of $300,000 to $500,000 (previously $200,000 to $400,000).
  • Audited financial statements are required for associations with annual revenues of $500,000 or more (previously $400,000+).

So, what will be the impact of these new laws on homeowners’ associations?  In addition to providing some much-needed structure, the laws will make regulation easier, and also cut down on arbitrary and capricious practices that afflict some homeowners’ associations.  Board members may think twice before taking actions that are not well-founded when they realize the members now have a physical office with the Department of Business and Professional Regulation where they may express their concerns.  While I am not typically a proponent of increased government regulation in any sector, I welcome these new laws, and expect to see a reduced number of conflicts between associations and their members in the future.