On June 16, 2021, Governor DeSantis signed Florida SB 630, which will become effective on July 1, 2021. The law has been changed to allow the principal office of the Ombudsman to be located outside of Leon County, Florida. Statutes & Constitution :View Statutes : Online Sunshine Some governing documents give the Board of Directors plenary power to adopt, modify or otherwise change use restrictions. Unreasonable restraints on the alienation of property are disfavored by Florida courts. Other grounds that might be argued to be reasonable in connection with the disapproval of an applicant seeking to reside in a community may include the following: (1) the applicant has been convicted by a court of a felony involving violence to persons or property, or a felony demonstrating dishonesty or moral turpitude, and has not had their Maintenance, Repair and Replacement Responsibility Within Your Fines Due Date Section 718.303(b), F.S., (SB 630, Page 53). Transfer Fees/Security Deposits Section 718.112(2)(i), F.S., (SB 630 Page 25), The maximum permissible transfer fee has been increased from $100 to $150. If the Association does have tenant approval power, whatever the reason for rejecting the tenant, the Association must be prepared to explain. Condominiums must apply approval procedures with an even hand. The fee may not be more than $100 per applicant and a husband/wife or parent/dependent child are considered one applicant. Documents provided to NPR show the board approved seeking a $15 million line of credit on April 13, 2021. There will be an exception to the rule of limited application (to successor owners or owners voting for the amendment) as to certain rental prohibitions or regulations for those restrictions that are put in place on or after July 1, 2021. (Section 718.1255(4), F.S. However, condominiums can refuse to approve a transfer when the unit owner is delinquent in amounts due to the association. While associations can apply the screening process to deny buyers and renters, the decision cannot be discriminatory or violate the Fair Housing Act. By January 1, 2019, a Condominium Association in Florida with 150 or more units (not including timeshare units) must have an independent website or web-portal owned and operated solely by the Association or operated by a third party provider on behalf of the Association. First, Florida Statutes section 720.3055 requires the homeowners association to obtain competitive bids for any contract for the provision of services requiring payment that exceeds 10 percent of . Q:Our election is in 20 days and the board claims to have mailed out the package last week. It is important to note that an association or Tampa condo association management company may not require prospective tenants to be "vetted" or approved . It also provides that condominium associations may charge a fee for approval of leases or sales, as long as the fee is provided in the declaration, articles or bylaws. In Barnett and Klein v. The President of Palm Beach, a Condominium, an owner recovered damages for tortious interference with a contractual relationship when the association denied his effort to rent relying on a rule adopted by the board instead of a limitation in the declaration. In Phillips v. Hunter Trails Community Association, the rejected buyer recovered almost $200,000 in damages even though the association exercised a right of first refusal. 4. FCAP Member Advantage eNewsletter A:This is a good question because the Florida Condominium Act does require that the Board keep minutes of every board meeting, and that minutes are official records that must be made available to owners when requesting access to official records. (d) Construction Lien Section 718.121(2), F.S., (SB 630, Page 35). The law defines the term actual costs to include, but is not limited to, expenditures for demolition, site clearing, permit fees, impact fees, and utility reservation fees, as well as architectural, engineering, and surveying fees that directly relate to construction and development of the condominium property. Please contact the firm for more information. The new section (h) added to Section 720.306 of the Florida Statutes will also clarify that a rental prohibition or regulation that does not apply to a current title holder (because that owner did not consent to the amendment) also will not apply to a subsequent title holder following certain ownership changes. A few greedy condos, mostly in the Miami area, charged five and even ten times that amount. 2021 Changes to Florida Condominium and Homeowners Association Law 5. Residents of the Crestview Towers Condominium carry their belongings as they leave their building in North Miami Beach, Florida, on July 2. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. (c) Unit owners must affirmatively acknowledge their understanding that the association has changed its method of delivering the invoices for assessments or statements of account to delivery in writing or by electronic transmission. / SB 630, Pages 4146. Can a Condo Association Evict an Owner or Tenant in Florida? An overwhelming number of board members seem to think that their associations have unfettered rights to interview, screen and either accept or reject prospective owners or tenants who are interested in purchasing or renting units within their community. Insurance Subrogation Section 627.714(4), F.S., (SB 630, Page 5). Under the new Condo Board crime law, any Condo Board member that destroys an official document or record of the Condo Association "in furtherance of a crime" commits a crime. So, it is possible that the rule is valid, but you should first have the Declaration and the rule analyzed by a licensed Florida attorney to determine whether the authority is properly vested in the board. New Florida Law Governing Rental Applications Effective July 1, 2016 If the communitys declaration of covenants or declaration of condominium does not contain a provision authorizing the association to reject potential purchasers or tenants, the board should refrain from disapproving any tenant or purchaser except in the event of exigent circumstances (the applicability of which should first be analyzed and determined by association counsel). Attorney at Law at Dania S. Fernandez and Associates, P.A. Conflicts between Chapter 718, Condominium Act, and Chapter 617, Florida Not for Profit Corporation Act (SB 602, Page 16). Most agree that the financial records for a tenant are almost irrelevant since it is the unit owner who is responsible for paying the association. 11. 3. Can an HOA or Condo Association Deny a Buyer in Florida? An overview of florida condominium association collections of past due maintenance fees. Can HOA use minimum credit score to weed out potential buyers? There is a new statutory form notice of late assessments that must be delivered to the unit owner before the association can require the payment of attorney fees related to past due assessments. Criminal history. may be leased or rented without the approval of the Association. The Association should consult with its legal counsel before utilizing certain powers provided for in the governing documents, as sometimes, the very powers articulated in the those documents may be in violation of applicable laws. Previously, a developer could use such funds for actual construction, but the escrowed funds may now be used for the actual costs incurred by the developer in construction and development of the condominium property. Posted 6 years ago. In that case, the purchaser was African American and established that he was denied approval because of his race. NOTE: Our Client Portal is Currently Undergoing Maintenance. (Section 718.111(12)(g)1, F.S. A vote of the parcel owners is only taken when a declaration is amended. Why Condominium Associations Must Carefully Evaluate Their Long-Standing Tenant Approval Policies. HOA Dog Rules And Policies Every Dog Owner Should Know | HOAM As a result, HOA governing documents or amendments that were recorded prior to July 1, 2021, and which contained prohibitions or regulations as to rental agreements, remain binding as to all owners, regardless of the nature of those prohibitions or regulations. Don't Threaten. What Every Condominium Association Needs to Know About Security The purpose for an Association to require a security deposit from a renter is to protect against damages to the common elements or association property. Additionally, the federal Fair Housing Act1 (more commonly referred to as the FHA) and Floridas Fair Housing Act2 each provide numerous protections from discrimination by housing providers, including condominium associations. In other words, the association must have the express authority to deny transfers of title, and the restrictions on such sales must be reasonable. The due date for a fine was changed from being due 5 days after the committee meeting at which the fine is approved, to being due 5 days after notice of an approved fine is provided to the unit owner and, if applicable, to any tenant, licensee, or invitee of the unit owner. Your California Privacy Rights/Privacy Policy. This new statutory provision will be reflected in a new subsection (h), to be added to Section 720.306 of the Florida Statutes. Client Payment. As a preliminary matter, the Associations governing documents may not even grant the Association the power to approve or deny prospective tenants. (a) Amends Section 718.1265(1), F.S., to extend a condominium associations Board of Directors emergency authority to apply its response to injury and to an anticipated declared state of emergency. Forgery of a ballot envelope or voting certificate used in a condominium association election is punishable as provided in s. 831.01, the theft or embezzlement of funds of a condominium association is punishable as provided in s. 812.014, and the destruction of or the refusal to allow inspection or copying of an official record of a condominium . Your message has failed. The tenant application process to a condominium association can be long, arduous, and sometimes, expensive. Nevertheless, nobody that I know has received the package. Official Records Section 718.111(12)17, F.S., (SB 56, Page 6). The law prohibits the use of the escrow funds for marketing or promotional purposes, loan fees and costs, principal and interest on loans, attorney fees, accounting fees, or insurance costs. Phone: 855-331-5100 | Fax: 1-866-462-1501. Assessments and Statements of Account Section 718.121(4), F.S., (SB 56, Page 11). Fax: (239) 332-2243, 4632 Vincennes Blvd., Suite 101 According to the suit, the associations new leasing restriction, which it apparently adopted via a simple vote of the board the directors, was never approved by all the unit-owner association members via a formal vote. Condominium associations only have the authority to impose this additional security deposit requirement on a tenant if the authority is so given in the Declaration. Senate Bill 630 went into effect on July 1, 2021. The trial court disagreed and explained the investment group bought knowing unit owners could amend the declaration at any time. Rules can be changed by unit owners voting to amend the declaration. We'd love to hear eyewitness - A bank has commenced foreclosure proceedings against a unit Owner but not taken possession of the unit - The Condo association has liened the Owner for past due assessments -The condo Owner has declared bankruptcy -The Condo Owner has a renter in the unit & is collecting rent 2. (1) If a landlord requires a prospective tenant to complete a rental application before residing in a rental unit, the landlord must complete processing of a rental application submitted by a prospective tenant who is a servicemember, as defined in s. 250.01, within 7 days after submission and must, within that 7-day period, notify the On June 16, 2021, Governor DeSantis signed Florida SB 630, which will become effective on July 1, 2021. However, effective July 1, 2021, a declaration or other governing document of a homeowners association that has more than 15 parcel owners, or an amendment to a declaration or other governing document of such a homeowners association, that contains a prohibition or regulation as to rental agreements, applies only to a parcel owner who acquires title to the parcel after the effective date of the governing document or amendment, or to a parcel owner who consents, individually or through a representative, to the governing document or amendment. Florida Community Association Professionals: Why Condominium Associations Must Carefully Evaluate Their Long-Standing Tenant Approval Policies Florida Today: The Fair Housing Act and Criminal . The statute had previously expressly prohibited potential conflicts of interest even if the financial interest was disclosed or approved by the Board or the unit owners, and conflicted with Section 718.3027, F.S. Condominium Act. Fort Myers, FL 33901 Fax: (239) 542-8953, 4524 Gun Club Rd. Firstly, associations need to ensure that they meet the deadlines and procedures set for tenant reviews under their own governing documents. Developer Use of Sales or Reservation Deposits Prior to Closing Section 718.202, F.S., (SB 630, Page 50). The condominium association may establish a maximum number of rental units within the project. They also need to take precautions to keep secure the personal data and records obtained in all tenant applications, and they should be mindful to maintain any application fees consistent with the limit set under Florida law. ), (b) The statute now provides that arbitration is binding on the parties if all parties agree to be bound in writing. That reduced the fees charged by the greedy, but almost every other condominium association quickly increased their estoppel fee to $250. In, Barnett and Klein v. The President of Palm Beach, a Condominium, , an owner recovered damages for tortious interference with a contractual relationship when the association denied his effort to rent relying on a rule adopted by the board instead of a limitation in the declaration. The Condominium Act does not merely address rental limitations. Some of the most common HOA dog restrictions, though, include the following: Limit the number of pets per household. This means a person is no longer ineligible to be a candidate because they are delinquent on fines, fees, or any other monetary obligation other than assessments. the rejected buyer recovered almost $200,000 in damages even though the association exercised a right of first refusal. The law applies to all condos, apartments, and rental homes. We can also develop the exact language that should be used for their implementation and any amendments to the governing documents, and many of us are also familiar with new online tools that help to facilitate votes of the entire membership as required for such amendments. Don't knowingly lie about anyone Copyright 2023, Pavese Law Firm. The statute does not actually provide that minutes concerning a board meeting with counsel are exempt, but I would advise my clients to protect those minutes until the litigation is resolved. The bill modifies certain provisions in the Florida Statutes that impact condominium associations and homeowners' associations. . Can my HOA require me to provide tenant information and a copy - Avvo Competent legal counsel should be consulted if you have questions regarding compliance with the law. The notice must specify the amount owed and allow the unit owner at least 30 days to pay the past due assessments without paying additional attorney fees. The unit owner is responsible for the cost for the supply and storage of the natural gas fuel station.
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