2018 Legislative Update –
On July 1, 2018, the amendments to Chapter 718 (Condominium Act) and Chapter 7120 (HOA Act) signed into law by Governor Scott will be effective. Some of the changes are clarifications and modifications to the laws enacted in 2017, such as conflicts of interest, director term limits and website requirements for condominiums, and others are new additions.
Conflicts of Interest [§718.3026(3) and §718.3027]
There were significant additions to Chapter 718 in 2017 regarding director and manager conflict of interests, and associated penalties. The 2018 legislative session further amended the provisions to remove some confusion associated with the conflict provisions being in both 718.3026 (dealing with contracts), and 718.30127 (entitled “Conflicts of Interest”). Now they are contained only in 718.3027, with some further amendment.
Official Records [§718.111]
The association is not to post items not available for inspection by unit owners such as attorney-client privileged documents and communications or payroll records of employees, but the association will not be liable for doing so, unless the disclosure was made with a knowing or intentional disregard of the protected or restricted nature of the information. [§718.111(g)(3)]
The failure of the association to post the documents required under the statute does not, in and of itself, invalidate any action or decision of the board or its committees. [§718.111(g)(4)]
Meeting Notices [§718.112]
Special Assessment meetings: Replaced the prior requirement of stating in the notice the “nature, estimated cost, and description of the purpose of the assessment” with a requirement that the notice state “that assessments will be considered and provide the estimated cost and description of the purposes for such assessments.” 718.112(2)(c)(1)
Website posting of notices: In addition to posting meeting notices on the condominium property, Associations may adopt rules and procedures for noticing owner meetings and agendas on a website, so long as the time requirement for noticing such meetings is met. Any rule adopted must include a requirement that the electronic notice be sent in the same manner as a notice for a meeting of the members, and must include a hyperlink to the website where the notice is posted. This notice must be sent to all owners who have provided their e-mails as an official record. §718.112(2)(c)(1), § 718.112(2)(d)(3).
Board Member Terms [§718.112]
If a recall is determined at the conclusion of that meeting to be “facially valid”, then the recall of the member, or members, is effective immediately upon the conclusion of the board meeting. §718.112(2)(j)
A recalled board member may file a petition under 718.1255 challenging the validity of the recall
If the board determines at the conclusion of that meeting the recall is not facially valid, the recalling unit owner(s) representative may file a petition under 718.1255 challenging the board’s determination. §718.112(2)(j)4.
The arbitrator may award reasonable attorneys’ fees and costs to the respondents if they prevail, if the arbitrator makes a finding that the petitioner’s claim is frivolous. §718.112(2)(j)6.
Material Alterations and Substantial Additions [§718.113]
Fines and Use Right Suspensions [§718.303(3)]
Electric Vehicles [§ 718.113, § 718.121]
A condominium association may not prohibit a unit owner from installing an electric vehicle charging station within the boundaries of the unit owner’s limited common element parking area, however, the installation of an electric vehicle charging station is subject to a number of restrictions enumerated in the statute, such as safety, preservation of the condominium property, and the unit owner’s responsibility for associated costs. 718.113(8)
The installation of an electric vehicle charging station may not be the basis for filing a construction lien under Chapter 713, Florida Statutes, against the association, but a construction lien may be filed against the unit owner. 718.121(2), Fla. Stat.
Governing Document Amendments
Amendments to governing documents must contain the full text of the provision to be amended; proposed language to be added is to be underlined and deleted language must be stricken. §720.306(1)(e)
If the changes are so extensive that underlines and strike throughs would hinder, rather than assist the understanding of the proposed amendment, a notation must be inserted stating “Substantial rewording. See governing documents for current text.”
Amendments to governing documents are effective when recorded in the public records.
Immaterial error or omission in the amendment process doesn’t invalidate the amendment
*Notices for required for amendments must be mailed or delivered to the addresses of the owners on the property appraiser’s website, or electronically if the owner has consented in writing to receive electronic notices.
Fines and Suspensions
-The role of the committee is limited to determining whether to confirm or reject the fine or suspension levied by the board.
Fines are due 5 days after the date of the committee meeting at which the fine is approved.
The following language was added to §720.306(9)(a): “If an election is not required because there are either an equal number or fewer qualified candidates than vacancies exist, and if nominations from the floor are not required pursuant to this section or the bylaws, write-in nominations are not permitted and such qualified candidates shall commence service on the board of directors, regardless of whether a quorum is attained at the annual meeting.”
Application of Payments
This amendment clarifies that regardless of whether a unit owner places a restrictive endorsement on or accompanying their payment to the association, such as “paid in full” or the like, it does not operate as accord and satisfaction as to a greater amount owing, and the association may apply the partial payment in the order of the statute, to interest, then to any late fees, costs and attorneys’ fees and then to assessments, and continue to seek collection of the remaining balance owing. §720.3085(3)(b)