Changes in Condo Laws - OVERVIEW

House Bill 995 became law with the following items requiring your immediate attention.

There are penalties for breach or failure to perform Board duties both monetary damages and criminal law violation.

Anyone defacing or destroying accounting records shall be subject to civil penalties.

Association records may be made available online of in CD format.

Associations yearly financial reporting must now include disclosure of ALL under funded reserve accounts and the amount of under funding. THE LEGISLATURE ENCOURAGES FULLY FUNDING RESERVES!

If 20 percent of voting interest petition the Board to place an item on the agenda, the Board shall at its next meeting place the item on the agenda ( no longer than 60 day after the request ).

Special assessments now must include in the notice a description of and cost of the purpose of the assessment.

Units with two persons on the deed will no longer be permitted to serve on the Board at the same time.
This change becomes effective with the next annual meeting of Associations. Persons in arrears may not be eligible for the Board.

Not less than 60 days prior to the Associations election the Association shall deliver a certification for provided by the division attesting that owners have read and understand governing documents of the Association the provisions of this chapter and any applicable rules.

No Association of more than 10 units may “opt out” of the first and second notice balloting process.
Elections must therefore be conducted pursuit to chapter 718.

Proxy questions related to waiving OR reducing the funding of reserves (or use for other than the original purpose intended) SHALL contain the following in the face of the proxy: WAIVING OF RESERVES IN WHOLE OR IN PART OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.

Officers and directors who fail to pay their assessments are automatically off the Board!

Directors and officers charged with a felony theft of embezzlement involving Associations funds shall be removed from office. While such charges are pending she/he may NOT be appointed of elected as a director of officer.

Condominiums over three stories SHALL have the Condominium inspected to provide a report under the seal of an architect or engineer attesting to the required maintenance, useful life, and replacement costs of the common elements. (there is a provision that if approved by a majority of the voting interests present a properly called meeting, the Association may waive this requirement.)

NO Liens may be filed by an Association against an Owner until 30 days after the date on which a notice of intent to file a lien has been delivered, by certified mail, return receipt requested. The Association itself needs to send the letter, as they may not recover the costs associated with the attorney sending this letter.

Association emergency powers:
This section gives BROAD Board Powers to respond to a hurricane emergency. The Board will need to meet by telephone or in person in order to exercise these powers

This is intended to review some of the highlight the numerous changes being implemented by the enactment of the HR 995 2008, becoming effective 10-1-2008. The full handout is available at the UCO office. Please do not substitute this for Mr. Tennyson's views contained in the handout.

Please make certain that your Board is aware of these important changes. You may print and hand this to your Board member or pick-up the handout from UCO

Please also stay tuned, as there is another bill 601 that may be signed within the next few weeks with major changes on Insurance becoming effective almost immediately

Ed Black