Can anyone tell me.....?

Our association (Sheffield N) currently allows renters and allows the same person to own more than one unit. Can anyone tell me this (hopefully authoritatively): If we go through the correct process of notifying all owners of a business meeting with this on the agenda, including providing a proxy, is it legal to change the bylaws making it so that one person can own only one unit? If so, would you recommend having an attorney draw up the revised wording to the affected parts of the bylaws, or is this something we could do ourselves?

If it would be legal to make the change, I suppose a husband could still own one unit and the wife a second? We are not looking to change our bylaws to ban all renting; only to limiting ownership to one condo unit. A few of our unit owners wanted to know about this.

Thanks.

Gary Poliakoff's column PBP 6/28/09

Dealing with a subject very close to our hearts, a worthy read..to be concise,
the "US Fed. District Court, for the Northern District of Florida" recently DENIED
the RIGHT of UNIT OWNER, to KEEP a PET, in a PET FREE builing" for COMPANIONSHIP
only! It also went on to state that "Congress has recognized the right of older
persons, to live in a children free community" and I believe has applied the same
principles to the above. This community was never intended to be "Pet friendly"
( for if so, accomodations would have been instituted )
It is a CONDOMINIUM, where collective decisions are made,not individual ones.
As one who has enjoyed many years' of companionship,devotion and love from both
Dogs & Cats,all in the confines of our private home & property,we would not
subject our neighbours,(who perhaps have allergies/or fear of animals ) to live
with our personal decision.

under-55-on-deed

Could someone clarify the visiting rights of under 55 condo owners who are on the deed but do not live here in CV. Assuming the bylaws say ‘visitors may stay up to 30 days while the owner is in residence’ .
What if the over 55 resident is now in nursing home and condo is unsold, how may under-55-on-deed use it?
What if the over 55 resident is now up north for summer and cannot afford cost of trips back here to be in residence for under-55-on-deed visitor?
I would have thought the Board could give permissions on request but associations differ.

Association Officers

If nobody residing at an Association refuses to take the Office of
President what is the outcome. We were told that Seacrest will take
over at a cost of $400.00 per unit per month. Can an Unit Owner
who is a snowbird and only at CV for 2 months take the position
of President? Any commets would be appreciated.

NO BOARD MEANS EXPENSIVE CONSEQUENCES

Hi All,

Failure to volunteer for your Association Board may have very expensive consequences.
Please read the following carefully:
----------------------
In a Comment stream;

Grace said...
Does this mean if we are already on the board we have to sign the form? Why would anyone want to be on the condo (Board)?
I would dearly like to get off but we will be left with just a president who has wanted to resign for 3 years and other board members who are here for about three months a year and that is really useless.
We are a small association of 24 units and most of the units are empty for most of the year. Between this form and the insurance responsibilities it is becoming very difficult to want to volunteer
----------------
Hi grace;

If you run again for the Board you must indeed sign the Certificate.
Your recalcitrant and absent Board may find the following extract from Florida Statutes elucidating:

Dave Israel

Start extract:
-------------------

718.1124

Failure to fill vacancies on board of administration sufficient to constitute a quorum; appointment of receiver upon petition of unit owner.--

(1) If an association fails to fill vacancies on the board of administration sufficient to constitute a quorum in accordance with the bylaws, any unit owner may give notice of his or her intent to apply to the circuit court within whose jurisdiction the condominium lies for the appointment of a receiver to manage the affairs of the association. The form of the notice shall be as follows:

NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP

YOU ARE HEREBY NOTIFIED that the undersigned owner of a condominium unit in (name of condominium) intends to file a petition in the circuit court for appointment of a receiver to manage the affairs of the association on the grounds that the association has failed to fill vacancies on the board of administration sufficient to constitute a quorum. This petition will not be filed if the vacancies are filled within 30 days after the date on which this notice was sent or posted, whichever is later. If a receiver is appointed, the receiver shall have all of the powers of the board and shall be entitled to receive a salary and reimbursement of all costs and attorney's fees payable from association funds.

(name and address of petitioning unit owner)

(2) The notice required by subsection (1) must be provided by the unit owner to the association by certified mail or personal delivery, must be posted in a conspicuous place on the condominium property, and must be provided by the unit owner to every other unit owner of the association by certified mail or personal delivery.

The notice must be posted and mailed or delivered at least 30 days prior to the filing of a petition seeking receivership. Notice by mail to a unit owner shall be sent to the address used by the county property appraiser for notice to the unit owner, except that where a unit owner's address is not publicly available the notice shall be mailed to the unit.

(3) If the association fails to fill the vacancies within 30 days after the notice required by subsection (1) is posted and mailed or delivered, the unit owner may proceed with the petition.

(4) If a receiver is appointed, all unit owners shall be given written notice of such appointment as provided in s. 718.127.

(5) The association shall be responsible for the salary of the receiver, court costs, and attorney's fees. The receiver shall have all powers and duties of a duly constituted board of administration and shall serve until the association fills vacancies on the board sufficient to constitute a quorum and the court relieves the receiver of the appointment.
---------------------
End extract

Condo Assoc. Candidate Certification Form

A question was raised at the Delegate Assembly of October 3, 2008.
about signing the "Condominium Association Candidate Certification Form", handed out at the meeting, and what if any liability arose from signing this form

The Legislature adopted many changes that impact on the Boards actions in the administration of the Business of the Associations. HB 995 clearly states “there are penalties for breach or failure to perform Board duties both monetary damages and criminal law violations”. This means that whenever anyone, including the Division of Florida Condominiums, evaluates the actions of any Board, your signature on that form wherein you certify the “I have read and understand to the best of my ability, the governing document of (Your associations name goes here) and the provisions of this chapter and any applicable rules” will be available for review via subpoena should evidence be required that you failed to adhere to either your documents or Chapter 718.
I believe that we are required to sign this form to further enforce your actions to become more compliant to governing documents and Chapter 718. Liability has increased, and the old adage that "ignorance of the law is no excuse” does apply here.
Consequences? Could be, especially if we, the Boards, fail to follow either Chapter 718 or our Condo Documents.
Ed Black

BANKS FORECLOSE - NOT PAYING CONDO FEES

Hi all,
With the number of forclosures rising, many banks are refusing to pay Condo Fees; please read the following alert:


Dave Israel
-----------------------------------------------------------------------
CALL Alert for October 2, 2008—

Town Hall Meeting in Miami Beach; Resolution Regarding Proposed Legislation to Address Mortgagee Liability for Assessments

Dear David Israel of Greenbrier C Condominium Association, Inc.,

Jerry Libbin, a Miami Beach City Commissioner, will hold a town hall meeting on October 15, 2008 to discuss reforms needed to protect Florida's homeowners from banks that are not paying their fair share of assessments on foreclosed units. We encourage our members to send a representative from their board to this meeting.

WHEN: 6:30-8:00 p.m., Wednesday, Oct. 15, 2008.

WHERE: Loews Miami Beach Hotel. 1601 Collins Ave., Miami Beach, Fla., 33139 (NOTE: Public parking is available in nearby city-owned garages).

CONTACTS: Jerry Libbin: 305-389-0710 Keith Donner: 305-804-7686

As you may recall, CALL conducted an online statewide Mortgage Foreclosure Survey from March 26 to April 8, 2008 which showed a direct correlation between rising mortgage foreclosures and corresponding decline in revenues from maintenance fees and other assessments in the state's condominium and homeowner (HOA) communities.

More than 60% of the nearly 500 survey respondents said that banks and mortgage lenders now holding title to the foreclosed units or homes are not meeting their legal obligation to pay regular fees or other assessments to the association.

Fully 66% of respondents said their association's Board of Directors intends to increase maintenance fees and/or pass special assessments to compensate for anticipated shortfall in revenues due to declining maintenance fee and assessment collections resulting from mortgage foreclosures.

We believe that these problems are even worse today. In order to deal with this crisis, we believe that legislation is necessary.

Section 718.116, Florida Statutes currently states that the liability of a first mortgagee who acquires title to a unit by foreclosure for unpaid assessments shall be the lesser of the unit’s unpaid common expenses and regular periodic assessments which accrued or came due during the six months immediately preceding the acquisition of title or one percent of the original mortgage debt.

This limit is commonly referred to as the “Statutory Cap”. There are similar statutory caps in the Cooperative Act and the Homeowners’ Association Act.

The Statutory Cap is having a negative impact on associations’ financial stability and it is being exacerbated by the excessively slow pace by which the foreclosure lawsuits filed by the first mortgagees are proceeding to judgment and foreclosure sale.

We believe that changes should be made to deal with the inequities present in the Statutory Cap by providing the foreclosing first mortgagee with no liability for delinquent assessments accrued during the six months immediately preceding acquisition of title, but will provide for joint and several liability for all other delinquent assessments for foreclosing first mortgagees.

This would protect banks that act quickly and increase the ultimate cost to those who do not.
Attached is a proposed Resolution that addresses this issue by asking the Florida Legislature to adopt needed reforms. We are asking that all of our member condominium association boards consider adopting this Resolution at its next board meeting and mailing it to the association’s respective State Senator, State Representative, and Governor Crist.

Very truly yours,

Yeline Goin and David Muller, Co-Executive Directors
Community Association Leadership Lobby (CALL)

CANDIDATE CERTIFICATION FORM

Hi all,
Here is an interesting new wrinkle for those running for the Board of your Associations the following is self explanatory:

Dave
--------------------------------------------------------------
CALL Alert for October 1, 2008 - Division’s Position Regarding New Candidate Certification Form for Condominium Associations

Dear David Israel of Greenbrier C Condominium Association, Inc.,

As we have reported previously, one of the new laws adopted during the 2008 Legislative Session requires condominium associations to send out with the first notice of the election, a certification form provided by the Division of Condominiums, Timeshares and Mobile Homes (“Division”) attesting that he or she has read and understands, to the best of his or her ability, the governing documents of the association and the provisions of the Condominium Act and any applicable rules.

This new law does not apply to cooperative associations or homeowners’ association, only condominium associations. The new law is effective today, October 1, 2008. The new form is available on the Division’s website at:

http://www.myflorida.com/dbpr/lsc/documents/candidate_certification_form.pdf

We have recently learned that the Division is taking the position that in order to be eligible to be a candidate for the board, a candidate must sign and turn in the form to the association and that only those candidates who have submitted the certification form can be listed on the election ballot.
The association is required to send any timely submitted certification forms to the unit owners along with the second notice of the election.

The Division has further advised that it will take enforcement action against an association that includes candidates on the ballots that have not turned in this certification form.

The Division’s position is certain to be controversial because the literal language of the law does not require the candidates to send them back to the association in order to qualify to run for the Board. In any event, we wanted to inform you about the Division’s position. If you have any questions about how this new law will affect your election, please contact your community association attorney.

Also, remember that all of the laws adopted in HB 995 (sponsored by Representative Robaina) are effective today, October 1, 2008.

Very truly yours,

Sincerely,
Yeline Goin and David Muller, Co-Executive DirectorsCommunity Association Leadership Lobby (CALL)

Re: New Candidate Certification Form

CALL Alert for September 11, 2008—DBPR Publishes New Candidate Certification Form for Condominium Associations.

As you are aware from our previous CALL Alerts, one of the new laws adopted during the 2008 Legislative Session requires condominium associations to send out with the first notice of the election, a certification form provided by the Division of Condominiums, Timeshares and Mobile Homes (“Division”) attesting that he or she has read and understands, to the best of his or her ability, the governing documents of the association and the provisions of the Condominium Act and any applicable rules. This new law does not apply to cooperative associations or homeowners’ association, only condominium associations.

The Division has just published the form. We have attached the form to this CALL Alert. You can also find it at the Division’s website at:
http://www.myflorida.com/dbpr/lsc/documents/candidate_certification_form.pdf

The form must be sent with the first notice of the election, if the first notice is mailed on or after October 1, 2008 (the effective date of the new law). Please note the new statutory language literally only requires the Association to send the Division’s certification form to the unit owners, but does not require the candidates to send them back to the Association in order to qualify to run for the Board. This may change, if the Division promulgates a rule to the contrary.

Also, if a candidate chooses to sign the certification form, it must be provided to the Association thirty-five (35) days before the election. The Association is required to send any timely submitted certification forms to the unit owners along with the second notice of the election. (The thirty-five (35) day deadline may change if the Division promulgates a rule to the contrary).

Becker & Poliakoff Call Report

Hi All!

The following is the latest edition of the report on Emergency Powers, not effective until 10-1-08!

Ed

CALL Alert for September 5, 2008 – New Emergency Powers Law to Take Effect on October 1, 2008~
Dear Edward Black of Chatham B Condominium Association, Inc.,
With hurricane season in full swing, we wanted to remind you about a new emergency powers law adopted during the 2008 Legislative Session. As a result of Florida’s hurricane experiences in 2004 and 2005, the Florida Advisory Council on Condominiums recommended that the Legislature consider granting extraordinary powers to boards of directors in the aftermath of hurricanes. As a result of those recommendations, the Legislature drafted a new section of the Florida Condominium Act, Section 718.1265, which is entitled “Association Emergency Powers”. This new law goes into effect on October 1, 2008. Therefore, it will not necessarily apply to emergencies that occur prior to that date.

The new law permits a condominium association board of directors, unless prohibited by the condominium documents, to take the following actions in response to damage caused by an event for which a state of emergency has been declared by the Governor: ·

Meeting Notices:
The new law permits the conduct of board and membership meetings without following the customary notice requirements of the Condominium Act. Notice may be given “as is practicable.” Public service announcements and radio broadcasts are mentioned among the types of notices that may be used. ·

Cancelling Meetings:
The association can cancel and reschedule any association meeting that had previously been scheduled, and which may not be practicable to hold due to the emergency. ·

Special Assistant Officers:
The association may name assistant officers who are not directors, who shall have the same authority as the Association’s executive officers, as may be helpful during a state of emergency to accommodate the incapacity or unavailability of any association officer. ·

Office Location:
The association may relocate its principal office or designate an alternative principal office. ·

Government Cleanup:
The association is authorized to enter into agreements with local counties and municipalities to assist counties and municipalities with debris removement. ·

Disaster Plans:
The association is empowered to implement a disaster plan before or immediately following the event for which a state emergency is declared. The Association’s emergency plan may include shutting down or shutting off elevators, electricity, water, sewer, security systems, or air conditioners. ·

Declare Condominium Property Off-Limits:
Based upon the advice of emergency management officials or a licensed professional (such as an engineer), the Board may determine any portion of the condominium property unavailable for entry or occupancy by unit owners and other persons. ·

Evacuation:
The new law permits the association to require the evacuation of the condominium property in the event of a mandatory evacuation order in the locale in which the condominium is located. The law goes on to provide that if any unit owner or other occupant fails or refuses to evacuate the condominium property where the board has so ordered, the association is immune from liability arising from injuries to such persons. ·

Re-Opening Condominium Property:
The board of directors, based upon advice of emergency management officials or a licensed professional, may determine when the condominium can be safely inhabited or occupied after a disaster. ·

Mitigation of Damage:
In one of the more significant clauses of the new law, the association is empowered to mitigate further damage, including contracting for the removal of debris, and the prevention or mitigation of the spread of mold. The association is empowered to remove and dispose of wet drywall, insulation, carpet, cabinetry, or other fixtures on or within the condominium property, even if the unit owner is obligated by the declaration or law to insure or replace those items. The association is also empowered to remove personal property from a unit. ·

Dry-Out:
The new law empowers the association to contract, on behalf of any unit owner or unit owners, for services necessary to prevent further damage. Such services include the drying of units, the boarding of broken windows or doors, and the replacement of damaged air conditioning systems so as to provide climate control. Unit owners are responsible to reimburse the association. · Special Assessments: The board is empowered to levy special assessments in response to catastrophes, without regard to any provision in the condominium documents which may require unit owner approval of special assessments. ·

Borrow Money:
The association is empowered, without unit owner approval, to borrow money and pledge association assets as collateral.

The new law states that the special powers authorized under the law are limited to that time reasonably necessary to protect the health, safety, and welfare of the association and condominium occupants. Further, these powers are limited to those cases where the board’s action is reasonably necessary to mitigate further damage and make emergency repairs.

We hope that none of these measures will be required in the near future and that you are not adversely affected by this hurricane season. However, it is best to be prepared and to understand your rights before a disaster strikes.

Sincerely,Yeline Goin and David Muller, Co-Executive Directors
Community Association Leadership Lobby (CALL)

Where in 718 ?

Page two...UCO Reporter...September 2008...." No person shall be permitted to occupy a unit without a certificate of approval per Florida statute 718 "

Anyone, please tell me where in Florida Statutes 718 I can find this statement.

Thanks in advance.

Updated Condo Assoc Documents

How important is it to have updated Condo documents? Are the basic UCO Model CV Documents available on a disc. And I mean actual text , (no OCR and fuss). Was Tennysons’ offer to package our documents replaced by any other when he terminated that. I have 1990 docs + approx 10 amendments from up to 2002.

PURCHASER ACCESS TO RECORDS

Hi All,

I received the following query by Email; the source is redacted for privacy reasons. The information may be important to many:
--------------------------------------------------------------

"I wish to purchase a CV condo, I will be snowbirding from Toronto Canada.

I have found a condo I want but the listing agent is making me feel like I am unreasonable.

Before I put in my offer I want to know the amount of the condo's reserve fund, plus would like to see the condo's rules and regulations.

He tells me that in all the years of selling no-one has ever asked to see the rules and regulations before putting in an offer, and I find that really hard to believe.

I tried to get the names of the condo association's president from UCO investigations but they said their list was out of date and all the numbers they gave me were disconnected and I have been told that it because they are snowbirds.

So my questions to you are: is a condo's reserve fund public knowledge, and if yes, where can I find out about it and secondly how does one get a copy of a condo's rules and regulations i.e. does it have to go on file anywhere?

---------------------------------------------------------
BLOGMEISTER responds:

The Realtor is "full of prunes"!

The law is unambiguous on these issues:

Following is an extract from Florida Statutes: FS 718, the Condominium act.

REF:

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=Ch0718/ch0718.htm


"The association shall maintain an adequate number of copies of the declaration, articles of incorporation, bylaws, and rules, and all amendments to each of the foregoing, as well as the question and answer sheet provided for in s. 718.504 and year-end financial information required in this section on the condominium property to ensure their availability to unit owners and prospective purchasers, and may charge its actual costs for preparing and furnishing these documents to those requesting the same. Notwithstanding the provisions of this paragraph, the following records shall not be accessible to unit owners:……"

If you wish to read the entire section; simply click on the Reference above and plug in the search term “prospective purchaser”

Furthermore, the Declaration of Condominium, the Articles of Incorporation, the Bylaws, and all legal Amendments thereto are a matter of public record, to be found as follows;

http://www.pbcountyclerk.com/oris/records_home.html

If you have a problem navigating this site let me know; simply give me the Name of the Association and I will point you directly to the records. I will also find out the name of the President of said Association, which is also a matter of public record; if you are adept at Site navigation you may find same as follows:

http://www.sunbiz.org/search.html

Click on “inquire by name” near the top of the left panel and plug in the name of the Association; each Association must file this form every year; so the information on Officers should be current.

Again please advise if you have navigation problems.

I hope this is helpful

Dave Israel

INSPECTION REQUIREMENT

Hi All,
I received the following query by Email:
----------------------------------------
Would you comment on your blog on the new 5 yr inspection requirements, good, bad, opt out, penalties, board liabilities, etc.????

Am I right in interpreting that the inspection is only a guide for associations to budget their reserves?

What are 3 & 4 story buildings in CV doing? Rumors of UCO coordinated inspections????
----------------------------------------
Following is a brief response and a bit of my opinion.


On May 1, 2008, Florida Governor Crist signed House Bill 995.



House Bill 995, which takes effect on October 1, 2008, amends various provisions of Chapter 718 of the Florida Statutes, the Florida Condominium Act.



The following is a brief summary of amendments, relevant to your query, included in House Bill 995:


REF:
http://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=_h0995er.xml&DocumentType=Bill&BillNumber=0995&Session=2008


The 4 digit numbers are line numbers in the referenced document.

(6) As to any condominium building greater than three
1563 stories in height, at least every 5 years, and within 5 years if

1564 not available for inspection on October 1, 2008, the board shall

1565 have the condominium building inspected to provide a report

1566 under seal of an architect or engineer authorized to practice in

1567 this state attesting to required maintenance, useful life, and

1568 replacement costs of the common elements. However, if approved

1569 by a majority of the voting interests present at a properly

1570 called meeting of the association, an association may waive this

1571 requirement. Such meeting and approval must occur prior to the

1572 end of the 5-year period and is effective only for that 5-year
1573 period.
----------------------------------------------


718.113 (Maintenance; limitation upon improvement; display of flag; hurricane shutters):


New Subsection (6): Requires an inspection of condominium buildings greater than 3 stories in height every 5 years by an engineer or architect unless waived by a majority of the voting interests present at a duly noticed meeting. The engineer or architect must provide a report attesting to required maintenance, useful life and replacement costs of the common elements. The report must be maintained as an official record of the association under amended 718.111(12).
-------------------------------------
OK! Now as to your questions:


Good? To the extent that hard information is “good” of course this is a good piece of legislation?
------------------------
Bad? The only thing that could be considered “bad” is the expense; of course, consider the expense of not knowing what hidden problems may exist in your 30 year old + building.
------------------------
opt out? Sure, the law gives you an out:

“by a majority of the voting interests present at a properly
called meeting of the association, an association may waive this requirement”.
------------------------
Penalties? Not directly; but please read the next bullet.
------------------------
board liabilities? If you fail to conduct this inspection; and an event occurs of great damage or loss of life; what possible liabilities may ensue as regards failure of Insurance coverage to be granted or direct legal liability to the Association for failure to follow the law.


If you do conduct this Inspection and the resulting record of insufficiencies is ignored and not repaired; the liabilities are rather obvious.
------------------------
Clearly, this is merely my opinion and competent Legal Counsel should be sought.
------------------------
While this Law only requires the Inspection for buildings over three stories high; I would recommend it for any building in CV, due to the age of our infrastructure.
------------------------
Ask yourselves, what is the condition of the REBAR embedded in your Catwalks, Patios and rails? Ask, what is the condition of the Aluminum wiring in your Units and the cast iron sewer pipes; in my building, every backup revealed roots in the sewer pipes? Then after due consideration; you decide.
-----------------------
Finally it should be noted that this Inspection can be used as a primary driver for the establishment of your Reserves for the requisite 5 year cycle of the Inspection law.

Think smart; not cheap!!!

Dave Israel

New Condo Laws

This info was buried under VP count, better as separate post, herewith:
Article Courtesy of The Sun Sentinel By Joe Kollin Published June 6, 2008

Homeowners who flew their American flags on the Fourth of July won't have to wait until Veterans Day to fly them again. A new state law says they can fly their flags every day of the year — even if their association rules say they can't.

Another new law says condo owners no longer have the right to put solar panels on the roofs of their low-rise buildings. Associations feared that without regulation, owners could damage the roof over everyone's head. Now, they can only put up a solar panel if it is solely "within the boundaries of a condominium unit.

"Five condo and homeowner association bills approved during the two-month legislative session that ended in May have been signed by Gov. Charlie Crist and became effective on Tuesday. Some are considered so confusing, however, that they may be changed next year.
Crist on May 1 signed a major condo reform bill that is effective Oct. 1.
It does several things, from letting owners display small religious objects, such as Jewish mezuzahs, on their doorposts despite association bans, to preventing owners who owe money to the association from running for the board.

Last week, Crist vetoed a homeowner association bill because it included a provision he said would have weakened state regulation of association swimming pools.

One of the five bills that Crist signed into law is considered especially confusing. It involves the rewrite of condo insurance law, and includes everything from the responsibility of unit owners after a hurricane to how a board must rebuild a building. The law appears to contradict itself and other laws.
Although they are on opposite sides of nearly every issue, attorney Gary Poliakoff and Cyber Citizens for Justice President Jan Bergemann agree about the confusion."I doubt that those who drafted the amendment, and those who voted for it, can explain the consequences of their actions," said Poliakoff, whose law firm represents 4,300 associations. Said Bergemann, whose organization seeks to protect owners from associations: "In this case I agree with [Poliakoff]. "The insurance law may accomplish something, however, said Yeline Goin, Fort Myers-based executive director of the Community Association Leadership Lobby, which represents boards in Florida. She said that after recent hurricanes, disputes arose between associations and owners over responsibility for payment. The new law, she said, establishes a "fairly easy-to-follow rule, which is: if you insure it, you are responsible for repairing it after a casualty, and also for any shortfalls that arise because of a deductible. "The law makes several other changes, such as giving a new name to the state agency that enforces condo law: the Division of Condominiums, Timeshares & Mobile Homes.

Here are other highlights:
• Foreclosures. SB 1986 says that a bank or holder of a foreclosed first mortgage may be liable to a homeowner association for up to 12 months of past due assessments or 1 percent of the original mortgage amount, whichever is less. This could help take the burden off owners who would be forced to make up for the foreclosed owner.
• Liens and receivers. Condo associations can't file a lien against an owner without giving the owner 30 days notice, a change that prevents associations from filing a lien the day after it says a payment is due (CS, HB 1105). Homeowner associations are already required to give owners 45 days to pay a debt before a lien can be filed for unpaid assessments.
Aug 4, 2008 9:29:00 AM

CRIST SIGNS HB 601

Hi all,
According to the following source the Bill has indeed been signed by the Governor:

Thursday, July 3, 2008 - 12:11 PM EDT

New law streamlines Florida's regulatory process

Tampa Bay Business Journal


Gov. Charlie Crist signed into law a bill that will streamline regulations for businesses in the state. The new law mainly affects the Department of Business and Professional Regulation.

"We are looking forward to implementing the changes set forth in HB 601," said interim Secretary Chuck Drago. "I believe these legislative changes will make a positive impact on the licensees and citizens that we do business with every day."

Highlights from the bill:

Eliminates the requirement of a background check for farm labor
contractors already federally registered.

Streamlines the licensing system.

Removes the requirement for electrical contractors to pre-qualify before taking the licensing exam.

The Division of Land Sales, Condominiums and Mobile Homes will no longer have enforcement authority over fraudulent land sales. The department has been renamed the Division of Florida Condominiums, Timeshares and Mobile Homes.

Mixed martial arts events are now authorized in the state


Dave Israel

Call Report (Community Association Leadership Lobby)

The following is a report generated by the Law Firm of Becker and Poliakff. They helped draft the changes to the bill know as HB 601 that passed the legislature and is awaiting the signature of the Governor. I continue to recommend each Association maintain a relationship with a law firm and do recommend this one from my personal experience. Thse reports are part of the service member Associations receiveafter retaining the Firm. Please feel free to print this for your Board. If you need help please call me at 689-3053.

Ed

CALL ALERT for May 9, 2008 - Summary of HB 601 Impacting Condominium and Homeowners' Associations, including new Insurance and Reconstruction after Casualty Provisions for Condominium Associations, and SB 2860, the Homeowners' Bill of Rights

As we have previously advised, HB 601 passed during the 2008 Legislative Session. The bill primarily impacts condominium associations, but does have some homeowners' association impacts. In addition, SB 2860, known as the Homeowners' Bill of Rights also passed. The Homeowners' Bill of Rights seeks to improve upon the property insurance reforms enacted in 2007. The following is a summary of the two bills. Note that they have not yet been signed into law by the Governor. However, barring a veto by the Governor, these provisions will soon become law in Florida.

Also, we would like to correct something in our CALL Alert of May 3, 2008, sent the day after the session ended. SB 1820 did not pass as previously reported. Therefore, the fees paid to the Department of Business and Professional Regulation by unit owners in condominiums and cooperatives will remain $4.00 per unit.

HB 601, Relating to the Department of Business and Professional Regulation, Condominium Associations and Homeowners' Associations (Rep. Matt Hudson)

Condominium Insurance and Reconstruction after Casualty

HB 601 includes important insurance and reconstruction after casualty provisions for condominiums. Attorney Ken Direktor, from our West Palm Beach office, chaired the Florida Bar Committee that worked on the re-drafting of Section 718.111(11). Ken played a major role in drafting the reconstruction after casualty provisions in this legislation. In addition, Joe Adams, from our Ft. Myers office, as a former member of the Condominium Advisory Council, also worked and drafted portions of the insurance language in the bill. We would like to thank both Ken and Joe for their leadership and guidance.

Basically, the reconstruction after casualty provisions in the bill provide that after a casualty, if the association insures it, the association repairs it and if there is not enough money from insurance proceeds (because of a deductible or otherwise), the association will assess all of the members to pay for the repairs. However, the association can "opt-out" of this method of allocating expenses and allocate expenses for reconstruction in the manner provided in the declaration of condominium. It also provides that if an owner makes an improvement (for example, a balcony enclosure), the unit owner will be required to insure it and repair it after a casualty, even if the improvement is outside of the unit boundaries. The bill also revises the association's insurance responsibility.

The following is a more detailed review of the insurance and reconstruction provisions in HB 601. Note that many of these provisions are already included in the current law. However, because HB 601 is a complete re-write of 718.111(11), we are including a summary of the entire language, not just the new portions.

Adequate hazard insurance shall be based upon the replacement cost of the property to be insured as determined by an independent insurance appraisal or update of a prior appraisal. The full insurable value shall be determined at least once every 36 months.

An association or group of associations may provide adequate hazard insurance through a self-insurance fund that complies with the requirements of F.S. 624.460-624.488. The association may also provide adequate hazard insurance for a group of no fewer than three communities created and operating under Chapter 718, Chapter 719, Chapter 720, or Chapter 721 by obtaining and maintaining for such communities insurance coverage sufficient to cover an amount equal to the probable maximum loss for the communities for a 250-year windstorm event. Such probable maximum loss must be determined through the use of a competent model that has been accepted by the Florida Commission on hurricane loss protection methodology. However, any such "pooling" insurance issued or renewed on or after July 1, 2008 must be reviewed and approved by the Office of Insurance Regulation.

NOTE: The self insurance and pooling provisions for insurance are in the current law. HB 601 adds a requirement that the "pooling" insurance product must be approved by the Office of Insurance Regulation.

The association may consider deductibles when determining the adequate amount of hazard insurance coverage.

A developer-controlled association must use its best efforts to obtain and maintain adequate insurance. Failure to obtain and maintain adequate hazard insurance constitutes a breach of fiduciary responsibility by the developer-appointed members of the board, unless the members can show that despite such failure, they have made their best efforts to maintain the required coverage.

Policies may include deductibles as determined by the board. Deductibles shall be consistent with industry standards and prevailing practice for communities of similar size and age, and having similar construction facilities. The deductibles may be based upon available funds, including reserve accounts or predetermined assessment authority at the time the insurance is obtained. The board shall establish the amount of deductibles at a meeting of the board. The notice of the board meeting must state the proposed deductible and the available funds and the assessment authority relied upon by the board and estimate any potential assessment amount against each unit, if any.

An association controlled by unit owners shall use its best efforts to obtain and maintain adequate insurance to protect the association, the association property, the common elements, and the condominium property that is required to be insured by the association.

The declaration may provide that condominium property consisting of free-standing buildings comprised of no more than one building in or on such unit need not be insured by the association if the declaration requires the unit owner to obtain adequate insurance for the condominium property.

An association may also obtain and maintain liability insurance for directors and officers, insurance for the benefit of association employees, and flood insurance for common elements, association property, and the units.

Every hazard insurance policy issued or renewed on or after January 1, 2009 for the purpose of protecting the condominium shall provide primary coverage for:

1. All portions of the condominium property as originally installed or replacement of like kind and quality, in accordance with the original plans and specifications.

2. All alterations or additions made to the condominium property or association property pursuant to Section 718.113(2).

3. The coverage shall exclude all personal property within the unit or limited common elements, and floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments, including curtains, blinds, hardware, and similar window treatment components or replacements of any of the foregoing.

NOTE: There was a change with respect to air conditioning and heating equipment. Under the current law, the association is not required to insure air conditioning and heating equipment or air conditioning compressors that service only an individual unit, whether or not located within the unit boundaries. HB 601 changes this. The association will be required to insure air conditioning and heating equipment, including all air conditioning compressors.

Every hazard insurance policy issued or renewed or on or after January 1, 2009 to an individual owner must contain a provision stating that the coverage afforded by such policy is excess coverage over the amount recoverable under any other policy covering the same property. Such unit owner policies must include special assessment coverage of no less than $2,000.00 per occurrence.

All improvements or additions to the condominium property that benefit fewer than all unit owners shall be insured by the unit owner or owners having the use thereof, or may be insured by the association at the cost and expense of the unit owners having the use thereof.

The association shall require each owner to provide evidence of the currently effective policy of hazard and liability insurance before request, but not more than once per year. Upon the failure of an owner to provide a certificate of insurance issued by an insurer approved to write such insurance in this state within 30 days after the date on which the written request is delivered, the association may purchase a policy of insurance on behalf of an owner. The cost of such policy, together with reconstruction costs undertaken by the association but which are the responsibility of the unit owner may be collected in the manner provided for the collection of assessments.

All reconstruction work after a casualty shall be undertaken by the association except as otherwise provided. A unit owner may undertake reconstruction work on portions of the unit with the prior written consent of the board of administration. However, such work may be conditioned upon the approval of the repair methods, qualifications of the proposed contract, or the contractor that is used for that purpose. A unit owner shall obtain all required governmental permits and approvals prior to commencing reconstruction.

Unit owners are responsible for the cost of reconstruction of any portions of the condominium property for which the unit owner is required to carry casualty insurance and any such reconstruction work undertaken by the association shall be chargeable to the unit owner and enforceable as an assessment. The association must be an additional named insured and loss payee on all casualty insurance policies issued to unit owners.

A multicondominium association may elect, by a majority vote of the members of the condominiums operated by the association, to operate such condominiums as a single condominium for purposes of insurance matters.

The association shall maintain insurance and fidelity bonding on all persons who control or disburse funds of the association. These persons include, but are not limited to, those persons authorized to sign checks, and the president, secretary, and treasurer of the association.

The association may amend the declaration of condominium without regard to any requirement for approval by mortgagees of amendments affecting insurance requirements for the purpose of conforming the declaration of condominium to the coverage requirements of the statute.

Any portion of the condominium property required to be insured by the association which is damaged by casualty shall be reconstructed, repaired, or replaced as necessary by the association as a common expense. All hazard insurance deductibles, uninsured losses, and other damages in excess of hazard insurance coverage under the hazard insurance policies maintained by the association are a common expense of the condominium except that:

1. A unit owner is responsible for the cost of repair or replacement of any portion of the condominium property not paid by such insurance proceeds, if such damage is caused by intentional conduct, negligence, or failure to comply with the terms of the declaration or the rules of the association by a unit owner, the members of his family, etc., without compromise of the separation rights of any insurer.

2. To the extent the cost of repair or reconstruction for which the unit owner is responsible is reimbursed to the association by insurance proceeds, and, to the extent the association has collected the cost of such repair or reconstruction from the unit owner, the association shall reimburse the unit owner without the waiver of any rights of subrogation.

3. The association is not obligated to pay for repair or reconstruction of casualty losses as a common expense if the casualty losses were known or should have been known to a unit owner and were not reported to the association until after the insurance claim of the association for that casualty was settled or resolved.

An association may, upon the approval of a majority of the total voting interests of the association, opt out of the repair and reconstruction provisions in the statute and allocate repair or reconstruction expenses in the manner provided in the declaration as originally recorded or as amended. Such vote may be approved by the voting interests of the association without regard to any mortgagee consent requirements.

In a multicondominium association that has not consolidated its financial operations, any condominium operated by the association may opt out of the guidelines for repair or reconstruction expense with the approval of a majority of the total voting interests in that condominium.

Any association or condominium vote to opt out of the guidelines for repair or reconstruction expenses must be recorded in a notice setting forth the date of the opt out vote and the page of the official records book on which the declaration is recorded. The decision to opt out is effective upon the date of recording of the notice in the public records by the association. An association that has voted to opt out may reverse that decision by the same vote.

An association is not obligated to pay for any reconstruction or repair expenses due to casualty loss to any improvements installed by a current or former owner of the unit or by the developer if the improvement benefits only the unit for which it was installed and is not part of the standard improvements installed by the developer on all units as part of original construction, whether or not such improvement is located within the unit.

The foregoing shall not apply to timeshare condominium associations. Insurance for timeshare associations shall be maintained pursuant to s. 721.165.

Common Expenses for Fire Safety Equipment or Water and Sewer Service where a Master Meter Serves the Condominium

HB 601 amends Section 718.115(1)(a) to specify that unless the manner of payment or allocation of expenses is otherwise expressed in the declaration of condominium, the expenses of any item or services required by any federal, state, or local governmental entity to be installed, maintained, or supplied to the condominium property by the association, including, but not limited to, fire safety equipment or water and sewer service where a master meter serves the condominium, shall be common expenses whether or not such items or services were specifically identified as common expenses in the declaration of condominium, articles of incorporation, or bylaws of the association.

Estoppel Certificates (Condominium and Homeowners' Associations)

The provisions in HB 601 regarding estoppel certificates apply to condominium associations and homeowners' associations, as follows:

The amount of the fee charged by the association or its authorized agent for the preparation of the estoppel certificate must be included on the certificate.

The authority to charge a fee for the certificate shall be established by written resolution adopted by the board or provided by a written management, bookkeeping, or maintenance contract and is payable upon the preparation of the certificate.

If the certificate is requested in conjunction with the sale or mortgage of a unit but the closing does not occur and no later than 30 days after the closing date for which the certificate was sought the preparer receives a written request, accompanied by reasonable documentation, that the sale did not occur from the payer that is not the unit owner, the fee shall be refunded to that payer within 30 days after receipt of the request.

The refund is the obligation of the unit owner, and the association may collect it from that owner in the same manner as assessments are collected.

Termination of Condominiums

Section 718.117(17)(c)3. was amended to clarify the distribution of proceeds when a condominium is terminated and sold. With regard to purchase-money lienholders, the distribution may not exceed a unit owner's share of the proceeds.

Board Member Abstentions (Condominium Associations)

Section 718.111(1)(b) was amended to state that a director a of the association who abstains from voting on any action taken on any corporate matter shall be presumed to have taken no position with regard to the action.

This change is intended to control over a board member abstention provision that was included in HB 995.

Department of Business and Professional Regulation, Division of Florida Land Sales, Condominiums, and Mobile Homes

HB 601 repeals Chapter 498, the "Land Sales Practices Act". Therefore, the name of the Division of Florida Land Sales, Condominiums and Mobile Homes is changed to Division of Florida Condominiums, Timeshares, and Mobile Homes.

HB 601 also amends the Division's powers and duties as follows:

Permits the Division to submit any official written report, worksheet, or other related paper prepared by and duly authenticated by a financial examiner or analyst to be admitted as competent evidence in any hearing by which the financial examiner or analyst is available for cross-examination and attests under oath that such documents were prepared as a result of an examination or inspection conducted pursuant to the Condominium Act.

The Division may, if it finds that the developer, association, officer, or member of the board is violating or is about to violate any provision of Chapter 718, any rule adopted by the Division, or any written agreement entered into with the Division, and presents an immediate danger to the public requiring an immediate final order, it may issue an emergency cease and desist order reciting with particularity the facts underlying such findings. The emergency order is effective for 90 days, however, if the Division begins an emergency cease and desist proceeding, the emergency cease and desist order remains effective until conclusion of such proceeding.

The Division may petition the court for the appointment of a receiver or conservator. If a receiver is appointed, the Division may apply to the circuit court for an order of restitution whereby the defendant shall be ordered to make restitution of those sums shown by the Division to have been obtained by the defendant in violation of the Condominium Act.

The Division may seek the imposition of a civil penalty through the circuit court for any violation for which the Division may issue a notice to show cause. The civil penalty shall be at least $500.00 but no more than $5,000.00 for each violation. The court may also award the prevailing party court costs and reasonable attorney's fees, and if the Division prevails, may also award reasonable costs of investigation.

The Division may contract with agencies in the state or other jurisdictions to perform investigative functions or accept grants-in-aid from any source.

The Division shall cooperate with similar agencies in other jurisdictions to establish uniform filing procedures and forms.

The Division shall consider notice to a developer to be complete when it is delivered to the developer's address currently on file with the Division.

In addition to its enforcement authority, the Division may issue a notice to show cause, which shall provide for a hearing, upon written request, in accordance with Chapter 120.

The effective date of HB 601 is July 1, 2008.

SB 2860, Homeowners' Bill of Rights (Sen. Jeff Atwater).

This Bill seeks to improve upon the property insurance reforms enacted in 2007 by:

Extending the rate freeze for Citizens Property Insurance Corporation, the state's insurer of last resort, to January 2010. The freeze was set to expire in January 2009;

Allowing single-family residential properties and condominiums with a replacement value of up to $2 million into the Citizens insurance pool (up from $1 million, which was set to begin Jan. 1, 2009);

Requiring Citizens' policyholders of property located in wind-borne regions and with an insured value of $500,000 or more to disclose the property's windstorm mitigation rating to a prospective buyer. (Language in an earlier version of the bill would have required all sellers to provide their property's windstorm rating);

Increasing fines for violations of the insurance code and for unfair trade practices by private insurers;

Extending by one year to January 2010 a provision from last year's insurance bill that requires insurers to get state approval before raising property insurance rates;

Requiring insurers to notify state regulators 90 days before dropping more than 10,000 homeowners' policies in one year;

Requiring insurers to use state-approved methods to predict the risk of hurricanes, a key factor in setting rates.

We will keep you updated as to the progress of these bills and whether they are signed by the Governor into law.

Very truly yours,


Yeline Goin and David Muller, Co-Executive Directors
Community Association Leadership Lobby (CALL)

BILL 601; CHANGE IS IN THE AIR

Hi All,
If you are interested and patient; here is a link to the text of Bill 601 referenced in this BLOG; all 152 pages of it.

Dave Israel

REF:

http://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=_h0601er.xml&DocumentType=Bill&BillNumber=0601&Session=2008

WHAT'S WITH 601?

HI, I JUST GOT OFF THE PHONE WITH SUSAN BUCHERS OFFICE TO FIND OUT IF 601 HAS BEEN SIGNED YET. NO IT HASN'T. CRIST HAS UNTO THE 3RD TO DO IT EVEN THO IT WAS TO GO INTO EFFECT ON 7/1. IT IS THE BILL THAT WILL CHANGE A LOT OF WHAT WE HAVE ALWAYS DONE. THIS IS WHAT I MEAN BY US MAKING CHANGES IN THE VILLAGE TO COMPLY WITH NEW LAWS AND RULES ,ETC. THIS BILL WILL CHANGE HAZARD INSURANCE REQUIREMENTS IN THE DECLARATON OF CONDOMINIUM COVERAGE.

WHO IS GOING TO BE RESPONSIBLE FOR WHAT? IS IT THE HOMEOWNER, THE ASSOCIATION ? NOW HOME OWNERS INSURANCE WILL BE REQUIRED AND THE ASSOCIATION WILL BE ABLE TO BUY IT FOR THE UNIT OWNER IF THEY DON'T HAVE IT AND LEIN THEIR UNIT FOR THE COST.

WE HAVE A LOT TO TALK ABOUT AND A LOT TO DO.

AMMENDMENTS TO FL. CONDOMINIUM ACT

THESE ISSUES WERE DISCUSSED AT THE CLUBHOUSE MEETING TODAY , AMONG OTHER THINGS. ALL ASSOC. BOARD MEMBERS SHOULD READ.

CLICK ON LINK.

MIKE