1. May 16, 2013
Presented by
Yeline Goin, Esq.
With Special Guest Rep. George R. Moraitis, Jr.
Moderated by Lisa A. Magill, Esq.
The 2013 Florida Legislative Session
Analysis of the Impacts on Community Associations

2. Today’s Presenters
Yeline Goin, Esq.
Executive Director
Community Association
Leadership Lobby
Hon. George R. Moraitis, Jr.
Florida House of Representatives
Lisa A. Magill, Esq.
Moderator

3. HB 73: ELEVATORS

4. Elevator Upgrades – Condominiums and
Cooperatives (HB 73)
 Existing elevators will not need to comply with
mandatory Phase II Firefighters upgrades until the
elevator is replaced or requires major modification.
 Previous, elevator upgrades were required to be
made by July 1, 2015.

5. HB 73: INSURANCE

6. Insurable Events – Condominiums (HB 73)
 Clarifies that the association is responsible for
damage that is
– insured by the association and
– that is damaged by “an insurable event”.

7. HB 73: OFFICIAL RECORDS

8. Portable Devices – Condominiums,
Cooperatives & HOAs (HB 73)
 Portable device may be used to copy official records.
 No charge for copies when a portable device is used.

9. Directories – Condominiums,
Cooperatives & HOAs (HB 73)
 Association may print and distribute directory.
 Owner may request exclusion of phone number in
writing.

10. New Record Requirements – Cooperatives (HB 73)
 Records to be maintained for 7 years/within 45 miles.
 Records may be made available electronically.
 Failure to permit inspection has penalties, including
attorney fees and costs.
 Destruction/failure to maintain document has civil
penalties.
 Copies of year-end financial statement must be made
available to owners and prospective buyers.

11. Protected Records – Cooperatives (HB 73)
 Attorney/client or work product privilege.
 Personnel records.
 Certain personal information of owners.
 Security data (passwords).
 Software or Operating System used by association.

12. Personnel Records – HOAs (HB 73)
 Personnel records of association or management
company employees are not to be inspected by
owners.
 This protection is new for management company
employees.

13. Official Records – HOAs (HB 7119)
 Records to be maintained for 7 years/within 45
miles.
 Records may be made available electronically.
 Personnel costs for copies/retrieval.
 Copies reduced from .50 to .25/page.
 Actual outside vendor cost if more than 25 pages.

14. HB 73: FINANCIAL REPORTING

15. Financial Reporting – Condos & HOAs (HB 73)
 Compiled financial statements required for annual revenues
$150,000-$300,000.
 Reviewed financial statements required for
$300,000-$500,000.
 Audited financial statements for
>$500,000.
 Report of cash receipts and expenditures for
<$150,000, and all associations of less than 50 units,
regardless of annual revenues.

16. HB 73: BOARDS OF DIRECTORS

17. Board Member Terms & Qualifications-
Condominiums (HB 73)
 Governing documents can provide for two year
terms, which negates the need for owner vote.

18. Director Certification/Educational
Certificates – Condominiums (HB 73)
 Association secretary must retain certification for 5
years after election or the duration of the director’s
term, whichever is longer.

19. New Board Certification Requirement –
Cooperatives (HB 73) & HOAs (HB 7119)
 Written certification within 90 days of election that
board member has read and will uphold governing
documents.
 Or participate in a board member education course.
 Board member is suspended until he/she complies.
 Certificate to be maintained for 5 years after
election, or duration of tenure.
 Board action not affected by failure to get
certification.

20. Elections- Timeshares (HB 73 & HB 7025)
 Timeshares do not have to follow the “two-notice”
system that applies to condominiums.

21. Elections – Condominiums, Cooperatives & HOAs (HB 73)
 Any challenge to the election process must take
place within 60 days after the results are
announced.

22. Elections – HOAs (HB 7119)
 Nominations from the floor are not required if
nominations are submitted in advance of the
meeting.
 Election is not required unless more candidates are
nominated than vacancies exist.

23. Recalls – Condominiums, Cooperatives
& HOAs (HB 73)
 If board doesn’t act on a recall petition, owner
representative can challenge the failure.
 Petition must be filed within 60 days after board fails
to act.
 Recalled board member may file a petition for
arbitration to challenge the validity of recall within 60
days after recall certified.
 No recall petitions accepted by Division if 60 days or
fewer until next election or if 60 days or fewer have
not elapsed since election.

24. Hurricane Protection – Condominiums
(HB 73)
 Board can now install code-compliant doors or other
protection also.
 Vote of owners not required if doors are the
association responsibility.
 Credit to owner for installed hurricane protection.

25. Suspension of Use Rights – Condominiums,
Cooperatives & HOAs (HB 73)
 Suspension of use rights for failure to comply with
governing documents does not apply to
– Limited common elements used only by that unit
– Common elements needed to access unit
– Utility services provided to unit
– Parking spaces
– Elevators

26. Mortgagee Consent for Amendments –
Cooperatives & HOAs (HB 73)
 Incorporates the mortgagee consent provisions
already in the Condo Act.

27. Reporting to DBPR – HOAs (HB 7119)
 Every CAM/HOA must report identifying information
to Division by 11/22/13.
 DBPR will have online registration system by
10/1/13.
 DBPR will submit HOA report to Governor by
12/1/13.
 One time requirement.
 Sunsets on 7/1/16.

28. Contracts with Board Members – HOAs
(HB 7119)
 Contracts with Board Members
– Must comply with F.S. 617.0832.
– Enter disclosures into written minutes of meeting.
– 2/3 vote of directors’ affirmative vote required.
– Next meeting of members, contract maybe canceled
by majority vote.

29. Goods or Services of Value to Board
Members – HOAs (HB 7119)
 No kickbacks.
 Cause for removal of officer or director.
 May accept food to be consumed at a business
meeting with a value of less than $25 or goods and
services at trade fairs or education programs.

30. Criminal Charges Against Board
Member- HOAs (HB 7119)
 Director or Officer who is charged by information or
indictment with embezzlement/theft is removed from
office.
 If resolved without a finding of guilt, the
director/office shall be reinstated.
 Member who has such criminal charges pending is
ineligible for position.

31. Insurance and Fidelity Bond for Board
Members – HOAs (HB 7119)
 Insurance or fidelity bond required to cover
maximum funds in association’s custody.
 Covers all persons who control or disburse funds of
the association.
 May be waived annually by vote of the owners.

32. Amendments – HOAs (HB 7119)
 Copies of amendments must be provided to
members within 30 days after recording.

33. Developer Turnover Affecting Board
Makeup – HOAs (HB 7119)
 Members entitled to elect majority of board when
– Developer abandons responsibility for amenities or
infrastructure.
– Developer goes into Chapter 7 bankruptcy.
– Developer loses title through foreclosure.
– Receiver is appointed for developer.
 At least one non-developer member when 50% of
units have been sold.

34. Developer Amendments – HOAs (HB 7119)
 Prior to turnover, developer’s amendments to
governing documents must be reasonable.

35. Association Liability for Unpaid
Assessments – HOAs (HB 7119)
 An association that acquires title through foreclosure
is not liable for unpaid assessments.
 Intent is to allow association to demand past due
assessments from next owner.

36. Mortgage Foreclosures – Condominiums,
Cooperatives & HOAs (HB 87)
 Banks will have one year to enforce a deficiency
judgment.
 Limits on deficiency judgment.
 Requires certain documents from bank when filing a
foreclosure action.
 Foreclosure judgment is final.
 Association’s order to show cause shall be reviewed
immediately by judge.

37. Questions & Answers
Yeline Goin
ygoin@becker-poliakoff.com
Rep. George MoraitisLisa Magill
lmagill@becker-poliakoff.com

38. www.callbp.com
www.floridacondohoalawblog.com
www.becker-poliakoff.com