Community Association Law Updates and Info

Robert Todd, Esq.Association Assessment Attorneys, PA

OUTLINE

I. Legislative Update

II. Foreclosure Cleanup

III. Pre-Submitted Q&A

Legislative Update

• The Order to Show Cause 702.10• (1) A lien holder may request an order to

show cause for the entry of final judgment in a foreclosure action. – Welcomed with fanfare as a panacea for

community Associations.– New tool, potentially different outcomes.

Legislative Update

• Elevators 399.02– Update to when existing Elevators must be

upgraded. – Previously required update to be accomplished by

July 1, 2015.– New Language states: “until the elevator is

replaced or requires major modification”

Legislative Update

• Insurance 718.111– Unit owners are responsible for the cost of repair

of property damage if it is their fault.– Invites litigation where previously a bright line

rule.– Creation of an assessment for reconstruction

work.• Applied under 718.116, lien & foreclose.

Legislative Update

• Record Inspection 718.111 (12) (c)– Photographs, Ipads, phones and scanners are

specifically referenced for record inspection purposes

– No charging for inspection on these items.

Legislative Update

• Financial Reporting 718.111 (13)– Changed valuations for reporting requirements:– Report of Cash Receipts >150k or less than 50

units.– Compiled Financial Statement: $150k-300k– Reviewed Financial Statements: $300k-500K– Audited Financial Statements: $500k and up

Legislative Update

• Board Members 718.112– Candidate Qualification must be a valid candidate

on the last day of qualification.– Board members need not certify every candidacy.– Statute of Limitations 60 days for challenge– Recalls:• Unit owners and board members can seek arbitration.

Legislative Update

• Turnover 718.301– ISLA- Interstate Land Sales Act a major issue with

phantom condominiums.– Turnover 7 years after recording of the certificate

of surveyor or recording of an instrument that transfers title to a unit in a condominium. Whichever is first.

Legislative Updates

• Suspension of Use Rights 718.303(3)– Clarifies suspension of limited common element

use rights, elevator use rights, utilities and parking spaces.

– Cable Suspension?

Legislative Updates

• Official Record Inspection 720.303– Option to make available on the internet provided. – Technological options including Ipads and cameras

now available. – Costs incurred by personnel is specifically limited• $20.00 an hour and >25 pages or more• Copy costs have depreciated, $0.50 to $0.25

Legislative Updates

• Financial Reporting 720.303– Changed valuations for reporting requirements:– Report of Cash Receipts >150k or less than 50

units.– Compiled Financial Statement: $150k-300k– Reviewed Financial Statements: $300k-500K– Audited Financial Statements: $500k and up

Legislative Updates

• Recalls 720.303– Statute of Limitations 60 days for challenge– Recalls:• Lot owners and board members can seek arbitration.

Legislative Updates

• Reporting 720.303(13)– November 22, 2013 all HOA’s must be registered

with DBPR– http://www.myfloridalicense.com/dbpr/hoa.html• Name• FEIN• Mailing address• Parcel total• Revenues and expenses

Legislative Updates

• Board Members720.3033– Certification required for board members

indicating he or she has read all the documents, understands and will uphold them to the best their ability. OR

– Attend an educational course on the subject.– The penalty for not complying is suspension.

Legislative Updates

• Membership Meetings720.306– Approved amendments must be distributed 30

days after recordation– Right to speak. Any agenda item or open

discussion provides every unit owner 3 minutes of speaking time. • Written rules may be adopted as to this section.

Legislative Updates

• Membership Meetings720.306– Nominations from the floor not allowed if advance

nominations are allowed. – Statute of Limitations on contests created, 60

days.

Legislative Updates

• Assessments 720.3085– Previous owner clarified to not include an

Association that acquires title to a delinquent property.

– Associations are fully exculpated from joint and several liability upon taking title through foreclosure or deed in lieu.

– Saves intra association law suits.

Legislative Updates

• Assessments 720.3085– Tenant of delinquent landlord, Association has

been able to demand rent– Landlord tenant statute has been updated to state

that it is unlawful for landlord to retaliate against tenant by specifically including Associations in 83.64.

Foreclosure Cleanup

• Outstanding Bank Foreclosures?• Issues and Options.

Foreclosure Cleanup

• Issue:– The bank foreclosure has not taken any action

since 2010 and the Defendants are defaulted/not involved

– Options:• Notice of Readiness for Trial• Notice of Lack of Prosecution• Motion for Case Management Conference• Motion to Show Cause

Foreclosure Cleanup

• Issue:– The bank foreclosure has stalled due to

mediation/loan modification/outstanding motions.

– Options• Schedule outstanding issues for hearing

– Notice of Readiness for Trial– Motion for Case Management Conference– Motion to show Case

Foreclosure Cleanup

• Issue– Bank has concluded but the Sale won’t move

forward. – Options• Supreme Court and Florida Civil Procedure states:

– Associations have the right and ability to request foreclosure sales get set for hearing. Little House 5th DCA

– RESET THE SALE

Pre-Submitted Q&A