Rembaum’s Association Roundup

2023 Legislative Update, Part I

By Jeffrey A. Rembaum, Esq. / Published July 2023

The 2023 Florida legislature adopted prolific legislation this session affecting Florida’s community associations. While many association members and stakeholders were focused on 2023 legislative amendments to the laws adopted in 2022 pertaining to the condominium and cooperative milestone and structural integrity reserve studies, the 2023 Florida legislature was also quite busy amending Chapter 720 of the Florida Statutes, the Homeowners’ Association Act, and so many other chapters, too. Subjects include the following: (** denotes already passed into law)

Condominium & Cooperative Association Legislation, Senate Bill 154 (a.k.a the “Milestone and SIRS Glitch Bill”)**
Patriot Day, House Bill 437 **
Homeowners’ Association Legislation, House Bill 919 (a.k.a, the “Homeowners’ Association Bill of Rights”)
Property Owners’ Rights to Install, Display, and Store Items on Their Lot and Clarifies the Ability to Display Certain Flags, House Bill 437 **

Editor’s Note: The bills mentioned below will be published in the August issue of FLCAJ as a second part to the 2023 Legislative Update.

Actions for Negligence, House Bill 837 **
Construction Defect Lawsuit Timeline in Which to File a Lawsuit is Significantly Shortened, Senate Bill 360 **
Affordable Housing (Summary Only), Senate Bill 102 **
Construction Liens, House Bill 331
Legal Instruments, Senate Bill 286
Massive Insurance Legislation, Senate Bills 2A & 2B (Special Session) **
Bonus—An Emergency Life Safety Systems Update (ELSS)

Please take careful note that due to publication deadlines the information in this article is current as of May 24, 2023, and reflects both legislation already enacted into law and legislation expected to be enacted into law prior to July 1, 2023. The entire edition of the 2023 Legislative Update including parts 1 and 2 are available for immediate download at www.kbrlegal.com, or www.rembaumsassociationroundup.com, or www.fcap.com. As bills are signed into law, these materials will be updated.

Condominium & Cooperative Association Legislation (A.K.A. The Milestone and SIRS Glitch Bill) Senate Bill 154

Already Passed into Law and In Effect

(Note: While the following material references condominiums, the same legislation is equally applicable to cooperatives governed under Chapter 719, Fla. Stat.)

Mandatory Structural Inspections

The term “milestone inspection” has been redefined to mean a structural inspection of a building, including an inspection of the load-bearing elements and the primary structural members and primary structural systems as those terms are defined (note that the word “walls” was removed from the definition) in §627.706, Fla. Stat., by an architect licensed under Chapter 481 or engineer licensed under Chapter 471, for the attesting to the life-safety and adequacy of the structural components of the building and, to the extent reasonably possible, determining the general structural condition of the building as it affects the safety of such building, including a determination of any necessary maintenance, repair, or replacement of any structural component of the building. Under this definition, it is clarified that the purpose of the inspection is not to determine if the condition of the existing building is in compliance with the Florida building code or fire safety code. Additionally, the milestone inspection services may be provided by a team of professionals with an architect or engineer acting as the registered design professional in responsible charge with all work and reports signed and sealed by the appropriate qualified team member.
§553.899, Fla. Stat.

Substantial Structural Deterioration

The term “substantial structural deterioration” is redefined to mean substantial structural distress or substantial structural weakness that negatively affects a building’s general structural condition and integrity.

§553.899, Fla. Stat.

Milestone Inspection Report Deadlines:

Initial Deadlines
1. an owner or owners of a building that is three stories or more in height as determined by the Florida Building Code and that is subject, in whole or in part, to the condominium or cooperative form of ownership must have a milestone inspection performed by December 31st of the year in which the building reaches 30 years of age based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.
2. if a building reaches 30 years of age before July 1, 2022, the building’s initial milestone inspection must be performed before December 31, 2024.
3. if a building reaches 30 years of age on or after July 1, 2022, and before December 31, 2024, the building’s initial milestone inspection must be performed before December 31, 2025.
Certificate of Occupancy Is Not Available—If the date of issuance for the certificate of occupancy is not available, the date of issuance of the building’s certificate of occupancy shall be the date of occupancy evidenced in any record of the local building official.
Proximity to Salt Water—The provisions regarding buildings located within three miles of the coastline are removed and replaced with the following: the local enforcement agency may determine that local circumstances, including environmental conditions such as proximity to saltwater as defined in §379.101, Fla. Stat., require that a milestone inspection must be performed by December 31st of the year in which the building reaches 25 years of age based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.
Deadline Extensions—The local enforcement agency may extend the date by which a building’s initial milestone inspection must be completed upon a showing of good cause by the owner or owners of the building that the inspection cannot be timely completed if the owner or owners have entered into a contract with an architect or engineer to perform the milestone inspection and the inspection cannot reasonably be completed before the deadline or other circumstance to justify an extension.
Milestone Inspection Reports Prepared Prior to July 1, 2022—The local enforcement agency may accept an inspection report prepared by a licensed engineer or architect for a structural integrity and condition inspection of a building performed before July 1, 2022, if the inspection and report substantially comply with the requirements of this section. Notwithstanding when such inspection was completed, the condominium or cooperative association must comply with the unit owner notice requirements.
The inspection for which an inspection report is accepted by the local enforcement agency is deemed to be a milestone inspection for the purposes of satisfying chapters 718/719 of the Florida Statutes. If a previous inspection and report is accepted by the local enforcement agency, then the deadline for the building’s subsequent 10-year milestone inspection is based on the date of the accepted previous inspection.
Mixed Use and Condominium Hotels—The milestone inspection report must be arranged by the condominium association and any owner of any portion of the building which is not subject to the condominium or cooperative form of ownership. The condominium association or cooperative association and any owner of any portion of the building which is not subject to the condominium or cooperative form of ownership are each responsible for ensuring compliance with the requirements for milestone inspection.
Costs—The condominium association or cooperative association is responsible for all costs associated with the milestone inspection attributable to the portions of a building which the association is responsible to maintain under the governing documents of the association.
Exemptions—As before, the aforementioned requirements do not apply to any single-family, two family, or three-family dwelling with three or fewer habitable stories above ground.

§553.899, Fla. Stat.

Governmental Notice for Phase One of the Milestone Inspection

Upon determining that a building must have a milestone inspection, a local enforcement agency must provide written notice of such required inspection to the condominium association or cooperative association and to any owner of any portion of the building which is not subject to the condominium or cooperative form of ownership by certified mail, return receipt requested. Thereafter, the association must notify the unit owners of the required milestone inspection within 14 days after receipt of the written notice from the local enforcement agency and provide the date that the milestone inspection must be completed. Phase one of the milestone inspection must be completed within 180 days after the owner or owners of the building received written notice from local government.
§553.899, Fla. Stat.

Phase Two of the Milestone Inspection

If a phase two inspection is required, then, within 180 days after submitting a phase one inspection report, the architect or engineer performing the phase two inspection must submit a phase two progress report to the local enforcement agency with a timeline for completion of the phase two inspection.
§553.899, Fla. Stat.

Post-Inspection Requirements

Upon completion of the phase one and phase two milestone inspections, the architect or engineer who performed the inspection must submit a sealed copy of the inspection report with a separate summary of, at a minimum, the material findings and recommendations in the inspection report to the condominium association or cooperative association and to any other owner of any portion of the building which is not subject to the condominium or cooperative form of ownership.
§553.899, Fla. Stat.

In addition, within 45 days after receiving the applicable inspection report, the condominium or cooperative association must distribute a copy of the inspector-prepared summary of the inspection report to each owner, regardless of the findings or recommendations in the report, by United States mail or personal delivery at the owner’s mailing address, property address, or any other address of the owner provided to fulfill the association’s notice requirements, and by electronic transmission to the email address or facsimile number provided to fulfill the association’s notice requirements to such owners who previously consented to receiving notice by electronic transmission and must post a copy of the inspector-prepared summary in a conspicuous place on the property and must publish the full report and inspector-prepared summary on the association’s website if the association is required to have a website.
§553.899, Fla. Stat.

Governmental Ordinances

A board of county commissioners or municipal governing body may adopt an ordinance requiring that a condominium or cooperative association and any other owner that is subject to the milestone report requirements commence repairs for substantial structural deterioration within a specified timeframe after the local enforcement agency receives a phase two inspection report; however, the repairs must be commenced no later than 365 days after receiving the report. If the owner of the building fails to submit such proof, then local government must review and determine if the building is unsafe for human occupancy.
§553.899, Fla. Stat.

Short-Term Exemption from the Milestone Inspection

In addition, if the milestone inspection, or inspection completed for a similar local government requirement, was performed within the past five years and meets the requirements required for the milestone inspection, such inspection may be used in place of the visual inspection portion of the structural integrity reserve study.
§718.112, Fla. Stat.

Florida Building Commission Requirements

By December 31, 2024, the Florida Building Commission must adopt rules establishing a building safety program for the implementation of the milestone inspection within the Florida building code. The building inspection program must, at a minimum, include inspection criteria, testing protocols, standardized inspection and reporting forms that are adaptable to an electronic format and record maintenance requirements for the local authority.
§553.899, Fla. Stat.

New and Revised Definitions within Chapter 718, F.S., the Condominium Act

The term “alternative funding method” means a method approved by the Division of Florida Condominiums, Timeshares, and Mobile Homes (the Division) for funding the capital expenditures and deferred maintenance obligations for a multi-condominium association operating at least 25 condominiums which may reasonably be expected to fully satisfy the association’s reserve funding obligations by the allocation of funds in the annual operating budget.
The term “structural integrity reserve study” is revised to mean a study of the reserve funds required for future major repairs and replacement of the condominium property performed as required under §718.112(2)(g), Fla. Stat.
§718.103, Fla. Stat.

Official Record Requests

In the past, the official records of the association were open to inspection by any association member or their authorized representative. This important language has been revised as follows: “the official records of the association are open to inspection by any association member and any person authorized by an association member as a representative of such member at all reasonable times. The right to inspect the records includes the right to make or obtain copies, at a reasonable expense, if any, of the member and of the person authorized by the association member as a representative of such member.”
§718.111, Fla. Stat.

Reserves

In addition to annual operating expenses, the budget must include reserve accounts for capital expenditures and deferred maintenance. These accounts must include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of the amount of deferred maintenance expense or replacement cost, and any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000. The amount to be reserved must be computed using a formula based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense of the reserve item (the foregoing was not recently added to the Florida Statutes but is an important summary of the existing reserve funding requirements). The Structural Integrity Reserve Study (SIRS) requirements follow below.

In a budget adopted by an association that is required to obtain a structural integrity reserve study, reserves must be maintained for the items identified in paragraph (g), below, for which the association is responsible, pursuant to the declaration of condominium, and the reserve amount for such items must be based on the findings and recommendations of the association’s most recent structural integrity reserve study.

With respect to items for which an estimate of useful life is not readily ascertainable, or with an estimated remaining useful life of greater than 25 years, an association is not required to reserve replacement costs for such items, but an association must reserve the amount of deferred maintenance expense, if any, which is recommended by the structural integrity reserve study for such items. The association may adjust replacement reserve assessments annually to take into account an inflation adjustment and any changes in estimates or extension of the useful life of a reserve item caused by deferred maintenance.
§718.112, Fla. Stat.

The Structural Integrity Reserve Study (a.k.a. the paragraph (g) items)

A residential condominium association must have a structural integrity reserve study completed at least every 10 years after the condominium’s creation for each building on the condominium property that is three stories or higher in height as determined by the Florida Building Code which includes, at a minimum, the study of the following items as related to the structural integrity and safety of the building:

Roof;
tructure, including load-bearing walls and other primary structural members and primary structural systems as those terms are defined in §627.706, Fla. Stat.;
Fireproofing and fire protection systems;
Plumbing;
Electrical systems;
Waterproofing and exterior painting;
Windows and exterior doors;
And any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed above as determined by the visual inspection portion of the structural integrity reserve study.

With the aforementioned revisions to the structural integrity reserve study, it is clarified that commercial condominiums are exempt from the SIRS requirements. In addition, the terms “floor” and “foundation” were removed from the items needed to be included in the structural integrity reserve study but, however, are also potentially part of the “Structure.”

§718.112, Fla. Stat.

Structural Integrity Reserve Items with a Life of 25 Years or Greater

At a minimum, a structural integrity reserve study must identify each item of the condominium property being visually inspected, state the estimated remaining useful life and the estimated replacement cost or deferred maintenance expense of each item of the condominium property being visually inspected, and provide a reserve funding schedule with a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each item of the property being visually inspected by the end of the estimated remaining useful life of the item. The structural integrity reserve study may recommend that reserves do not need to be maintained for any item for which an estimate of useful life and an estimate of replacement costs cannot be determined, or the study may recommend a deferred maintenance expense amount for such item. The structural integrity reserve study may recommend that reserves or replacement costs do not need to be maintained for any item with an estimated remaining useful life of greater than 25 years, but the study may recommend a deferred maintenance expense amount for such item.
§718.112, Fla. Stat.

Exclusions to the Requirement to Prepare a Structural Integrity Reserve Study

The requirement to have the structural integrity reserve study does not apply to the following:

buildings less than three stories in height;
single-family, two-family, or three-family dwellings with three o fewer habitable stories above ground;
any portion or component of a building that has not been submitted to the condominium form of ownership;
or any portion or component of a building that is maintained by a party other than the association.

§718.112, Fla. Stat.

Deadlines to Complete the Structural Integrity Reserve Study

Associations existing on or before July 1, 2022, which are unit- owner controlled, must have a structural integrity reserve study completed by December 31, 2024, for each building on the condominium property that is three stories or higher in height. However, an association that is required to complete a milestone inspection on or before December 31, 2026, may complete the structural integrity reserve study simultaneously with the milestone inspection period, but, however, in no event may the structural integrity reserve study be completed after December 31, 2026.
§718.112, Fla. Stat.

The Persons Who May Perform the Structural Integrity Reserve Study Is Significantly Broadened

A structural integrity reserve study is based on a visual inspection of the condominium property. A structural integrity reserve study may be performed by any person qualified to perform such study. However, the visual inspection portion of the structural integrity reserve study must be performed or verified by an engineer licensed under chapter 471, an architect licensed under chapter 481, or a person certified as a reserve specialist or professional reserve analyst by the Community Associations Institute or the Association of Professional Reserve Analysts.
§718.112, Fla. Stat.

Waiving and Reducing Reserves

The members of a unit-owner-controlled association may determine, by a majority vote of the total voting interests of the association, to provide no reserves or less reserves than required by this subsection; however, for a budget adopted on or after December 31, 2024, the members of a unit-owner-controlled association that must obtain a structural integrity reserve study may NOT determine to provide no reserves, or less reserves, than required by this subsection before the items listed in paragraph (g) below except that members of an association operating a multi-condominium may determine to provide no reserves or less reserves than required by this subsection if an alternative funding method has been approved by the Division.
§718.112, Fla. Stat.

Using Reserves for a Different Purpose

Reserve funds and any interest accruing thereon shall remain in the reserve account or accounts and may only be used for authorized reserve expenditures unless they are used for other purposes as approved in advance by a majority of all of the voting interests. For a budget adopted on or after December 31, 2024, members of a unit-owner-controlled association that must obtain a structural integrity reserve study may NOT vote to use reserve funds or any interest accruing thereon for any purpose other than the replacement or deferred maintenance costs of the components listed in paragraph (g).
§718.112, Fla. Stat.

Developer Requirement to Provide the Structural Integrity Reserve Study as a Part of Turnover

The developer requirement to provide the structural integrity reserve study as a part of turnover has been deleted and replaced with a requirement that the developer must have a turnover inspection report in compliance with §718.301(4)(p) & (q), Fla. Stat.

Breach of Fiduciary Duty for Failure to Complete the Structural Integrity Reserve Study Period

If the officers or directors of an association willfully and knowingly fail to complete a structural integrity reserve study, then such failure is deemed to be a breach of the officers’ and directors’ fiduciary relationship to the unit owners.
§718.111, Fla. Stat.

Milestone Inspection Cost Apportionment

The association is responsible for all costs associated with the milestone inspection attributable to the portions of the building which the association is responsible for maintaining under the governing documents of the association (especially pertinent to condo-hotels and high-rise residential condominiums that exclude portions of the building from the declaration of condominium).
§718.112, Fla. Stat.

Disputes Regarding the Milestone Inspection and Structural Integrity Reserve Study

The term “dispute,” as used in §718.1255, Fla. Stat., now also includes the failure to carry out the following:

obtain the milestone inspection, pursuant to §553.899, Fla. Stat.
obtain a structural integrity reserve study required pursuant to §718.112(2)(g), Fla. Stat.
fund reserves as required for an item identified in §718.112(2)(g), Fla. Stat.
make or provide necessary maintenance or repairs of the condominium property recommended by a milestone inspection or a structural integrity reserve study.

However, the aforementioned are not subject to mandatory nonbinding arbitration but rather must be submitted to pre-suit mediation and, if unresolved, followed by litigation.
§718.1255, Fla. Stat.

Maintenance of the Common Elements

Maintenance of the common elements is the responsibility of the association, except for any maintenance responsibility for limited common elements assigned to the unit owner by the declaration. The association shall provide for the maintenance, repair, and replacement of the condominium property for which it bears responsibility pursuant to the declaration of condominium. After turnover of control of the association to the unit owners, the association must perform any maintenance identified by the developer pursuant to §718.301(4)(p) & (q), Fla. Stat., until the association obtains new maintenance protocols from a licensed professional engineer or architect or a person certified as a reserve specialist or professional reserve analyst by the Community Associations Institute or the Association of Professional Reserve Analysts.
§718.113, Fla. Stat.

Turnover Inspection Report

Notwithstanding when the certificate of occupancy was issued or the height of the building, a turnover inspection report must be included in the official records it must be under the seal of an architect or engineer authorized to practice in this state or a person certified as a reserve specialist or professional reserve analyst by the Community Associations Institute or the Association of Professional Reserve Analysts and attesting to the required maintenance, condition, useful life, and replacement costs of the following applicable to the condominium property:

Roof
Structure, including load-bearing walls and primary structural members and primary structural systems as those terms are defined in §627.706, Fla. Stat.
Fireproofing and fire protection systems
Plumbing
Electrical systems
Waterproofing and exterior painting
Windows and exterior doors

In addition, notwithstanding when the certificate of occupancy was issued or the height of the building, a turnover inspection report must be included in the official records. The report must be under the seal of an architect or engineer authorized to practice in this state or person certified as a reserve specialist or Professional Reserve Analyst by the Community Associations Institute or the Association of Professional Reserve Analysts, and attesting to the required maintenance, condition, useful life, and replacement costs of the following applicable condominium property comprising a turnover inspection report:

Elevators
eating and cooling systems
Swimming pool or spa and equipment
Seawalls
Pavement and parking areas
Drainage systems
Irrigation systems

§718.301, Fla. Stat.

Brief Summary of the Developer Disclosure Requirements to Prospective Purchasers

There are numerous developer disclosures required to be furnished to initial buyers of condominium units which include providing a copy of the milestone inspection report as well as a copy of the most recent structural integrity reserve study and, if not completed, then notice to the buyer of such circumstance. The buyer is to be provided such reports at least 15 days, excluding Saturdays, Sundays, and legal holidays prior to the execution of the purchase and sale agreement. In addition, such purchase and sale agreements must include a clause which states the agreement is voidable by the buyer by delivering written notice of the buyers’ intention to cancel within 15 days, excluding Saturdays, Sundays, and legal holidays, after the date of execution of the agreement by the buyer and receipt by the buyer of the current copy of the milestone inspection report. Contracts that do not conform to the developer disclosure requirements are voidable at the option of the purchaser, prior to closing.
§718.503, Fla. Stat.

Brief Summary of Owner Disclosure Requirements to Prospective Purchasers

Unit owners who are selling their condominium units are similarly required to provide prospective buyers copies of the milestone inspection report and structural integrity reserve study or notice that such reports have not yet been prepared, at least three days prior to execution of the purchase and sale agreement. If the reports are provided, thereafter, the buyer has a three day right of recission from the time such reports are provided. In addition, purchase and sale agreements that do not conform to the requirements of the legislation are voidable at the option of the purchaser prior to closing.
§718.503, Fla. Stat.

Patriot Day
House Bill 437
Already Passed into Law & Becomes Effective on July 1, 2023

This bill adds Patriot Day, September 11, to the list of days when a condominium unit owner may display armed forces flags.
§718.113, Fla. Stat.

Homeowners’ Association Legislation

House Bill 919 (a.k.a, the “Homeowners’ Association Bill of Rights”)

As of May 15, 2023, Awaiting Governor’s Signature

If Passed Into Law Becomes Effective October 1, 2023, Unless Otherwise Provided Below

Board Meeting Notices

Board meeting notices are now required to specifically identify all agenda items for the meeting, except for emergencies.
§720.303, Fla. Stat.

Official Records

Regarding official records, in addition to maintaining a current roster of all members, the association is now also required to maintain the designated mailing addresses of the members, which is considered the property address within the association unless the member has sent written notice to the association requesting that a different mailing address be used for all required notices. The association must also maintain email addresses and facsimile numbers which members designate for receiving notices sent by electronic transmission when consenting to receiving notice by electronic transmission. A member’s email address for official records purposes is the email address the member provides when consenting in writing to receiving notice by electronic transmission, unless the member sends written notice to the association requesting that a different email address be used for all required notices. The email address and facsimile number provided by a member must be removed from the association’s records when the member revokes their previously provided consent to receive notice by electronic transmission. However, the association is not liable for an erroneous disclosure of the email address or facsimile number.
§720.303, Fla. Stat.

Deposits

If an association collects a deposit from a member for any reason, including to pay for expenses that may be incurred as a result of construction on a member’s parcel, such funds must be maintained separately and may not be commingled with any other association funds. Upon completion of the project, any unused funds must be returned to the member within 30 days after receiving notice that the member’s construction project, or other reason for which the deposit was collected, is complete. In addition, if a member makes a request for an accounting from the association for their funds that were deposited, the association must provide such accounting to the member within seven days after receiving the request.
§720.303, Fla. Stat.

Prohibition on “Kickbacks”

An officer, director, or manager may not solicit, offer to accept, or accept anything or service of value for which consideration has not been provided for his or her benefit or for the benefit of a member of his or her immediate family from any person providing or proposing to provide goods or services to the association. An officer, director, or manager who knowingly solicits, offers to accept, or accepts anything or service of value or kickback for which consideration has not been provided for his or her own benefit or that of his or her immediate family from any person proposing to provide goods or services to the association is subject to monetary damages under §617.0834, Fla. Stat. If the board finds that the officer or director violated the aforementioned, the board shall immediately remove the officer or director from office, and the vacancy shall be filled according to law until the end of the officer’s or director’s term of office. However, an officer, director, or manager may continue to accept food to be consumed at a business meeting with a value of less than $25.00 per person or a service or good received in connection with trade fairs or education programs.
§720.3033, Fla. Stat.

Grounds for Immediate Removal of a Director or Officer from Office

An officer or director must be removed from office if charged by information or indictment with any of the following crimes:

forgery of a ballot envelope or voting certificate used in the election as provided in §831.01, Fla. Stat.
theft or embezzlement involving the association’s funds or property as provided in §812.014, Fla. Stat.
destruction of or the refusal to allow inspection or copying of an official record of a homeowners’ association which is accessible to parcel owners within the time periods required by general law, in furtherance of any crime. Such an act constitutes tampering with physical evidence as provided in §918.13, Fla. Stat.
obstruction of justice, as provided in §843, Fla. Stat.

§720.3033, Fla. Stat.

Required Conflict of Interest Disclosures for Developer-Appointed Board Members and Officers

Such officers and directors appointed by the developer must disclose to the association their relationship to the developer each calendar year in which they serve as a director or an officer. Directors and officers appointed by the developer must also disclose any other activity that may be reasonably construed to be a conflict of interest as such is defined immediately below. However, a developer’s appointment of an officer or director does not create a presumption that the officer or director has a conflict of interest with the performance of his or her official duties.

Required Conflict of Interest Disclosures for Board Members and Officers

Directors and officers (including those appointed by the developer) must disclose to the association any activity that may be reasonably construed to be a conflict of interest at least 14 days before voting on an issue or entering into a contract that is the subject of a conflict. A rebuttable presumption of a conflict of interest exists if any of the following acts occur without prior disclosure to the association:

a director or officer, or relative of a director or officer, enters into a contract for goods or services with the association.
a director or officer, or relative of a director or officer, holds an interest in a corporation, limited liability company, partnership, limited liability partnership, or other business entity that conducts business with the association or proposes to enter into a contract or other transaction with the association.

§720.3033, Fla. Stat.

Fines

Clarification is provided that an association may levy reasonable fines for violations of the association’s declaration, bylaws, or reasonable rules of the association, and that, after the board’s adoption of the fine, the notice to be sent to the offending member at least 14 days prior to the hearing committee meeting must be sent to the member’s designated mailing or email address as set out in the association’s official records. Clarification is also provided that the hearing before the independent committee is not optional but rather mandatory. The notice to the offending member must include a description of the alleged violation, the specific action required to cure the violation (if applicable), and the date and location of the hearing. A parcel owner has the right to attend a hearing by telephone or other electronic means. After the hearing takes place, the independent committee must provide written notice to the parcel owner at his or her designated mailing or email address and, if applicable, to any occupant, licensee, or invitee of the parcel owner, of the committee’s findings related to the violation including any applicable fines or suspensions the committee approved or rejected and how the parcel owner or any occupant, licensee, or invitee of the parcel may cure the violation, if applicable. Clarification is provided that the independent committee’s actions must be approved by majority vote of its members.
§720.305, Fla. Stat.

Fraudulent Voting Activities, as Related to Association Elections and Penalties

§720.3065, Fla. Stat., a new section within Chapter 720, F.S., is created. The following provisions take effect on October 1, 2023. Each of the following acts is considered a fraudulent voting activity and constitutes a misdemeanor of the first degree:

willfully and falsely swearing to or affirming an oath or affirmation, or willfully procuring another person to falsely swear to or affirm an oath or affirmation, in connection with or arising out of voting activities.
perpetrating, or attempting to perpetrate, or aiding in the perpetration of, fraud in connection with a vote cast, to be cast, or attempted to be cast.
preventing a member from voting or preventing a member from voting as he or she intended by fraudulently changing or attempting to change a ballot, ballot envelope, vote, or voting certificate of the member.
menacing, threatening, or using bribery or any other corruption to attempt, directly or indirectly, to influence, deceive, or deter a member when the member is voting.
giving or promising, directly or indirectly, anything of value to another member with the intent to buy the vote of that member or another member or to corruptly influence that member or another member in casting his or her vote. However, this does not apply to any food served which is to be consumed at the election rally or meeting or to any item of nominal value which is used as an election advertisement, including a campaign message designed to be worn by a member.
using or threatening to use, directly or indirectly, force, violence, or intimidation or any tactic of coercion or intimidation to induce or compel a member to vote or refrain from voting in an election or on a particular ballot measure.

§720.3065, Fla. Stat.

Creates Property Owners’ Rights to Install, Display, and Store Items on Their Lot and Clarifies The Ability To Display Certain Flags

House Bill 437

Already Passed into Law and Becomes Effective on July 1, 2023

Installation, Display, and Storage of Items

Regardless of any covenants, restrictions, bylaws, rules, or requirements of an association, and unless prohibited by general law or local ordinance, an association may not restrict parcel owners or their tenants from installing, displaying, or storing any items on a parcel which are not visible from the parcel’s frontage or an adjacent parcel, including, but not limited to, artificial turf, boats, flags, and recreational vehicles.
§720.3045, Fla. Stat.

Flags. Notwithstanding any covenant, restriction, bylaw, rule, or requirement of an HOA, a homeowner may display up to two of the following flags, in a respectful manner:

The United States flag.
The official flag of the State of Florida.
A flag that represents the U.S. Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard.
A POW/MIA flag.
A first responder flag.

A homeowner may fly one United States flag and one flag from the list above from a freestanding flagpole.

To receive Rembaum’s Association Roundup directly in your inbox, please send an email request to JRembaum@KBRLegal.com or visit www.kbrlegal.com/rembaums-association-roundup/.

Jeffrey Rembaum, Esq.

Kaye Bender Rembaum

Jeffrey Rembaum, Esq., is a board-certified specialist in condominium and planned development law and a Florida Supreme Court circuit civil mediator with the law firm Kaye Bender Rembaum in its Palm Beach Gardens’ office. His law practice consists of representing condominium, homeowners’, and cooperative associations, and developers throughout Florida. He can be reached by email at JRembaum@KBRLegal.com or by calling 561-241-4462.

Rembaum’s Association Roundup: 2023 Legislative Update, Part I

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