Condo Association – Setnor Byer Insurance & Risk

Legislative Update: Florida Considering Multiple Condominium-Related Bills in 2019

Florida’s condominium laws change pretty much every year. They’re likely to change again this year. Multiple condominium-related bills have already been filed since Florida’s 2019 Regular Legislative Session began March 5^th. Below is a summary of various bills currently being considered by the Florida Legislature.

House Bill 721 (Emotional Support Animals)

Amends Florida’s housing accommodation laws regarding Emotional Support Animals (ESAs) to match federal law.
Defines ESAs as animals that provide support alleviating identified symptoms or effects of a disability, despite not being specifically trained.
Allows housing providers to request additional information, including written documentation from specified licensed health care practitioners verifying the need for and benefits of an ESA.
Prohibits the use of doctors hired exclusively to provide such documentation.
Makes it a crime to falsify documentation or misrepresent information regarding ESAs.

Senate Bill 610 (Condominium Associations)

Revises criminal penalties for accepting things or services of value or kickbacks.
Allows associations to use their website to fulfill certain record inspection obligations.
Requires certain associations to post specific documents on their websites by a specified date.
Provides criminal penalties for fraudulent voting activities.

House Bill 1075 (Community Associations)

Prohibits unit owners’ insurance policies from having subrogation rights against the association.
Provides that fines may exceed $1,000 and fines over $1,000 may become liens.
Allows associations to charge buyers or renters the costs associated with unit transfers.
Provides that association liens do not automatically expire after a year.
Requires association insurance policies to cover certain portions of an owner’s unit.
Repeals law prohibiting association contracts with businesses in which a board member has a financial interest.
Prohibits associations from limiting the time owners have to review official records or requiring owners to state a reason for wanting to inspect official records.

House Bill 647 (Community Association Fire and Life Safety Systems)

Allows associations to waive life safety system retrofitting requirements.
Delays start date for allowing local retrofit requirements until 2023.
Requires associations that do not retrofit to post signs on buildings.
Increases voting percentage needed to forego retrofitting and authorizes electronic voting.
Modifies voting requirements for associations that previously voted to forego retrofitting.

The 60-day Regular Legislative Session ends May 3, 2019. Until then, existing bills may be rejected or amended and new bills may be filed. Whether any bills ultimately become law remains to be seen.

Setnor Byer Insurance & Risk offers condominium associations access to various risk management services, such as Setnor Byer’s Risk Management Group, Unit Owners’ Electronic Report Line and Florida Division-Approved New Board Member Education Certification online training.

When Can Condominium Associations Enter Abandoned Units?

Abandoned units can be a big problem for condominium associations. What if an abandoned unit has a water leak, mold or faulty wiring? Fortunately, Florida’s Condominium Act provides associations with a powerful solution. Regardless of any authority provided in the condominium documents (declaration, bylaws, etc.), the association board may, in its sole discretion, enter abandoned units to:

inspect the unit and adjoining common elements;
make necessary repairs to the unit or the common elements;
repair mold or deterioration;
turn on utilities; or
otherwise maintain, preserve or protect the unit and adjoining common elements.

Except in cases of emergency, an association must wait two days after giving the owner written or electronic notice of its intent to enter the unit. Unless the owner provides written notice to the contrary, a unit is presumed to be abandoned if:

the unit is in foreclosure and appears to have been vacant for at least 4 continuous weeks; or
the unit appears to have been vacant for 2 consecutive months and the association is unable to contact or locate the owner after reasonable inquiry.

Any expenses incurred by the association can be charged to the unit owner and collected using the association’s lien authority. Associations can also request a court-appointed receiver to lease abandoned units and use the rental income to offset the costs and expenses of maintaining, preserving and protecting the unit and the adjoining common elements.

The right to enter abandoned units is broad, but not unlimited. Condominium associations should consult with licensed professionals to ensure compliance with Florida’s statutory requirements.

Does Florida’s New Website Requirement Apply to Your Condo Association?

Are you ready for http://www.InsertYourCondoHere.com? Thanks to a recent statutory amendment, if your condominium association has 150 or more units, you need to start getting ready.

By July 1, 2018, condo associations with 150 or more units are required to post digital copies of various documents on websites that are accessible through the Internet. This means that associations that don’t have a website have less than a year to get one.

Under the amended statute, which became effective on July 1, 2017, associations can operate their own independent website or web portal or use one operated by a third-party provider. Associations must use these websites to post current copies of various documents in digital format, including:

The recorded declaration of condominium, recorded bylaws and filed articles of incorporation (including amendments);
The association’s rules;
The annual budget and any proposed budget being considered at the annual meeting;
The required financial report and any proposed financial report being considered at a meeting;
Each director’s statutorily required written certification or Certificate of Completion of a division-approved educational curriculum;
Management agreements, leases or other contracts to which the association is a party or otherwise responsible (bid summaries must stay on the website for 1 year);
Contracts or transactions between the association and any directors or officers (or any entity in which a director or officer has a financial interest); and
Contracts or documents regarding directors with an actual or possible conflict of interest.

Notice of Meetings

Notice of any unit owner meeting and the agenda must be posted on the website at least 14 days before the meeting. Notices must be posted in plain view on the front page of the website, or on a separate subpage labeled “Notices” that is conspicuously visible and linked from the front page.

Notice of any board member meetings, the agenda and any other required documentation must also be posted on the website no later than the date required by law for such notice.

Secure Pages

An association’s website must contain secure or protected pages that are only accessible to unit owners and association employees. Usernames and passwords must be provided upon request. However, confidential information (privileged attorney communications, social security numbers, personnel and medical records, etc.) cannot be posted on the website. Documents containing any protected or restricted information must be redacted accordingly before being posted online.

The likelihood of mistakes goes up substantially whenever associations are adapting to something new. Board members must proceed cautiously when implementing this new statutory requirement to ensure compliance and avoid unintentional violations.

Setnor Byer Insurance & Risk is available to discuss ways to identify, manage and insure the risks facing condominium associations and their board members.

Clients of Setnor Byer’s Condominium Insurance Programs enjoy access to various risk management services, such as Setnor Byer’s Risk Management Group, Unit Owners’ Report Line, and our New Board Member Education Certification training, which has been approved by the Division of Florida Condominiums, Timeshares, and Mobile Homes.

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