Month: October 2007

The Regulatory Council of Community Association Managers is created within the department and consists of seven members appointed by the Governor (Charlie Crist) and confirmed by the Senate.
Five members of the council are licensed community association managers, one is a community association manager employed by a timeshare managing entity as described in ss.468.438 and 721.13, who have held an active license for 5 years. The remaining two council members shall be residents of the State of Florida and must not be or ever have been connected with the business of community association management.
The Governor Charlie Crist will appoint members for terms of 4 years. Members will serve until their successors are appointed. Members’ service on the council will begin upon appointment and continue until their successors are appointed.

Here are some notable 2007 changes made to the Florida Statute.

718.106 Condominium parcels; appurtenances; possession and enjoyment —
(5) A local government may not prohibit condominium unit owners or an association from permitting guests, licensees, or invitees access to a public beach adjacent to or adjoining the condominium property. (Maybe in the passed, local government would prohibit gate use or pathways leading to the beach?)

718.301 Transfer of association control; claims of defect by association —
(6) Prior to the developer relinquishing control of the association pursuant to subsection (4), actions taken by members of the board of administration designated by the developer are considered actions taken by the developer, and the developer is responsible to the association and its members for all such actions. (Too many times the developer’s will appoint residents and not regulate their actions. It only make sense that the developer’s stay in full  control until turnover.)

(7) In any claim against a developer by an association alleging a defect in design, structural elements, construction, or any mechanical, electrical, fire protection, plumbing, or other element that requires a licensed professional for design or installation under chapter 455, chapter 471, chapter 481, chapter 489, or chapter 633, such defect must be examined and certified by an appropriate Florida licensed engineer, design professional, contractor, or otherwise licensed Florida individual or entity. (It’s pretty obvious why this law is necessary.)

Sometimes developers cut off initial reserves to lower quarterly maintenance fees.

One way to lower quarterly maintenance is to cut out reserves from the annual budget. Developers will use this strategy to sell homes. Advertisers use low quarterly maintenance as a selling feature. If it happens that a savvy prospective buyer inquires about budget reserves, the seller would simply say the reserves are not necessary until years later and wouldn’t amount to much.

Although not a serious problem for developing Associations, most likely the reserves would eventually be added to the annual budget. If the reserves are not added then the capital expenditures and deferred maintenance would inevitably result in a special assessment.

If the budget of the Association does not provide for reserves, then the annual reporting financial statement should read in a conspicuous space:

THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6), FLORIDA STATUTES, UPON THE APPROVAL OF NOT LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION.

Unless stated in the applicable documents, the annual budget reserves can only be added by a majority vote of all qualify members. Voting can be executed by a “written consent” or by a members meeting and/or via proxies. See Florida Statute regarding reserve budget:

(6)  BUDGETS.–
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If your Homeowner Documents do not describe the fining procedures, then see Florida Statute below:

If  the applicable  Documents do not detail the fining procedures, here are some basic guidelines.

Bascially, a fourteen day (14) notice is require. A hearing by a committee will determine if the fine should  be imposed. The committee members are residents and not employees or Board of Directors. For each violation, a $100 per day up to $1,000 can be levied and is enforceable through small claims court.

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