Work Contracts and Bids

Before the condominium Florida Statute revisions entered into law, bids and proposals were to be kept for a period of one year. Effective October 1, 2008, now bids and proposals are mandated to be kept for a period of seven years.

The only document shelf-life requirement ensued under the old law are election and proxy voting documents, which can be discarded after one year.

Another addition to the Statute is the association records shall be made available to a unit owner within 45 miles of the condominium property or within the county in which the condominium property is located within 5 working days after receipt of written request by the board or its designee.

The new revisions also addresses the way we review association records. In-lieu of hard copies of official records, the association may now offer the option of making the records of the association available to a unit owner either by internet or by allowing the records to be viewed in electronic format on a computer screen and printed upon request.

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Accounting Records:

Another elucidation to the statutes includes accounting records. It’s always been government standards to maintain accounting records for a period of seven years, including most state governments. Also commonly known, condominium accounting shall be separate for each association.

Effective October 1, 2008, the Florida State legislation added into law that any one person who knowingly or intentionally defaces, destroys, or fails to create or maintain official accounting records of a Condominium Association is personally subject to civil penalties. 

Records shall include:

• Receipts & Expenditures

• Accounts Receivables

• Audits, Reviews, Compilation or Cash & Expenditure Reports,

• Bids & Proposals

• Annual Meeting Packages are maintained for one year.

• Rental Records

• Question & Answer Sheets

• All Operation Records

• Inspection Report

For more fun facts see: Financial Reporting Requirements for Homeowner Associations.

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Fiduciary Duty

718.111 (a) of the Florida Statutes avow that directors, officers and managers automatically have fiduciary duties and responsibilities directly or indirectly owed to its owner/s of shared association. Effective October 1, 2008, a new legislative ruling signifies fiduciary duties to be the same as any other non-profit corporation.

One reason for this clarification is the problematic of unfair practices such as kick-backs. Directors, officers and property managers are subject to civil penalties for illegal practices by accepting any thing or service of value for which consideration has not been provided for his/her own benefit or that of his/her immediate family.

The association may however, receive services or items in connection with trade-fair shows or education programs. Read the rest of this entry »

Director Abstaining from Voting:

In an attempt to avoid a conflict of interest, Directors & Officers would vote, “abstain, neither, nor, refrain, desist and even present”. Although they may have been savvy, the vote used would officially count as an opposed vote. Likewise, if Directors & Officers vote neither, nor or abstain etc… the vote was presumed to have assented to the action.

Effective October 1, 2008; if Directors & Officers vote to abstain on any corporate action taken, he/she would be presumed to have taken no position with regard to the action. Consequently, Directors & Officers may now vote to abstain without the minutes reflecting an opposition. Read the rest of this entry »

Condominium 718.116 amended resolution, Florida Statute

There had been few attempts of the Florida legislation to clarify additional administrative fees.
Upon adoption or written management agreement, the Board has the authority to charge a fee for a certificate. This means, if not stated in your community documents, a fee for the preparation of an estoppel certificate may be collected. The legislation does not state the minimum amounts.

The local standard for prepared board approval forms are $100.00, which includes processing. Question & Answer sheets would be a $25.00 additional charge. Assuming the amended resolution means the estoppel certificate, a reasonable additional charge may range from $25.00 to $35.00. Clarification is scarce in this amendment.

If the sale fell through, and the payor is NOT a unit owner, within 30 days the payor can request a refund. The seller will be responsible for reimbursements and collected by the Association as an assessment. See Section 718.116: Read the rest of this entry »

Condominium, 2008 Florida Statute:

Now it is mandatory to have an insurance appraisal prepared by an independent appraiser at least once every 36 months. The appraisal must be based upon actual replacement costs. This may be a confirmed law, but has always been a common practice to ensure adequate coverage.

Another new statute confirms that the board of directors will establish the insurance deductibles base on local standards. Again, this has been common practice. It’s common to have an Insurance Committee recommend deductibles for the Board to consider.

On or after January 1, 2009, all portions of a condominium property with any alteration or additions must provide primary coverage excluding all personal property. Once again, this is common practice. Read the rest of this entry »

Except for the rare occasions of remodeling or repairs, common areas such as clubhouse, pool and recreational facilities should be made available for owners and their guess. Owners also have a right to peacefully assemble. This means, if arranged for in a peaceful manner, residents have an irrevocable right to invite public speakers or candidates for public office to speak in assigned common areas. See, “The Right of Owners to Peacefully Assemble”.

Beyond recall by the association, homeowners may display a United States flag in a respectful manner. However, if the flag is obtrusively too big, the board may deem a nuisance. See, “Displaying an American Flag in a Planned Development, Condominium or Homeowner”.

If an owner, resident or occupant has a disability which requires wheelchair access, may install a ramp under these conditions:

Design, plans or specifications are submitted to the association in advance. This should be part of the application process.

The access ramp should be designed to aesthetically blend with walkways. The board can make reasonable chances to architecturally fuse or fit with existing surfaces and structures.

The parcel owner must submit to the association an affidavit from a physician attesting to the medical necessity or disability of the resident or occupant of the parcel requiring the access ramp. Certification used for s. 320.0848 shall be sufficient to meet the affidavit requirement.

Most governing documents prohibits signs posted in the community. However, a security sign of reasonable size cannot be revoked if placed ten feet from the front entrance of a home.

A Strategic Lawsuits Against Public Participation (SLAPP) suit cannot with merit be brought against a parcel owner for any of the above actions. Nor, can a homeowner association use association funds to bring such actions to court. For more fun facts see, “What you should know about Hurricane Shutter Installations in Condominiums and Cooperatives”. To review supporting documents, click here. Read the rest of this entry »