11. Conflicts between Chapter 718, Condominium Act, and Chapter 617, Florida Not for Profit Corporation Act (SB 602, Page 16). Please avoid obscene, vulgar, lewd, This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. As I indicated, the requirement to obtain an associations approval prior to selling or leasing a home or unit is deemed to be a restraint on the alienation of such real property, and as such, that restraint may only be imposed to the extent that it is reasonable. The Act now provides that an amendment limiting an owners right to rent a unit applies only to unit owners who consent to the amendment and unit owners who acquire title after the effective date of the amendment. Section 718.104 (5) Florida Statutes provides that a declaration of condominium, as originally recorded or as amended, may include restrictions concerning use, occupancy and transfer of units. The statute does not actually provide that minutes concerning a board meeting with counsel are exempt, but I would advise my clients to protect those minutes until the litigation is resolved. Any access is subject to reasonable restrictions adopted by the association. It is important to note that an association or Tampa condo association management company may not require prospective tenants to be "vetted" or approved . When you apply to rent a condo: you'll need to get approved first by the landlord and then by the building's association (also known as homeowners association and condo association). (Section 718.111(12)(g)1, F.S. The failure to adopt the annual budget a second time is a minor violation and the prior years budget will continue in effect until new a budget is adopted. Only approve select dog breeds. The rule was held beyond the boards authority. Notice of Intent to Lien Section 718.121(6), F.S., (SB 56, Page 13). I would also recommend reviewing the associations bylaws as this document sometimes contains notice requirements which are more restrictive than the statutory requirements. Florida community associations typically have the right under their governing documents to regulate and approve leases and tenants. These rules were also intended to address a growing concern that tenants are purchasing illegitimate documentation for emotional . Anyone wishing to rent a condominium must complete the Association's "Background Consent Form" and submit same to the Association for completion of a background check, at the owner's or prospective tenant's expense. The law defines the term actual costs to include, but is not limited to, expenditures for demolition, site clearing, permit fees, impact fees, and utility reservation fees, as well as architectural, engineering, and surveying fees that directly relate to construction and development of the condominium property. For example, if it can be demonstrated that the Associations reliance on a certain type of background check to reject tenant applications has a disparate impact on a minority group, the Association may open itself up to potential FHA liability. An April letter from the president of the doomed Florida building's condo board association reportedly warned the residents that the "observable damage such as in the garage" had gotten . Simply stated, the opinion holds that a condominium's governing documents may be amended to ban or restrict a unit owner's right to lease his or her unit, even where the resident . I am not so sure that is law in Florida, since there could be very good reasons to disapprove a buyer that should not trigger for purchase by the association. A sworn affidavit by a Board member, officer, or agent of the association, or a licensed manager, attesting to the mailing will establish a rebuttable presumption that the association complied with these notice and delivery requirements for the notice of late assessments. Florida recently passed new laws governing emotional support animals (ESA) which go into effect on July 1, 2020. Often times, these directors are disappointed to learn that Florida law and their associations governing documents are not as restrictive as they would like. Please try again. of Hous. (Sections 718.1255 (4) and (5), F.S. in accordance with Florida Law, that upon receipt of notice from Sawgrass Villas Condominium Association . In Aquarian Foundation v. Sholom House, 448 So.2d 1166 (Fla. 3d DCA 1984), Florida's Third District Court of Appeal considered the validity of a condominium association's transfer restrictions . There are new requirements on how an association may deliver and change its method of delivery for assessments and statements of account: (a) An invoice for assessments or a statement of account must be sent by first-class mail or electronic transmission to the unit owners email address maintained in the associations official records. (e) Authorizes condominium associations to consult with public health officials when determining whether any portions of the condominium property are unavailable for entry or occupancy. community association leasing restrictions, Miami Herald Real Estate Column by Christyne Santisteban: Growing Condo Association Budgets Require Deft Touch by Directors, Property Managers, Community Associations Institutes Condo Safety Initiatives Recognized with Prestigious Public Affairs Council Award, Herald Column by Gary Mars: National Media Focuses on Impact of Floridas New Condo Safety Law on Association Budgets. Serious problems may lead the landlord to seek an eviction without giving the tenant an . 4. of Housing and Community Affairs v. Inclusive Communities Project, Inc.3, if a housing providers resident acceptance policy has a disparate impact on a minority group, such a policy would fall under the purview of FHA prohibited practices. Florida Condo Website Requirements. that is degrading to another person. Are we required to make these available? Complaints against Community Association Manage rs and Firm s can be submitted here. . However, an associations board is not necessarily free to approve or disapprove prospective purchasers and tenants merely because the authority to do so appears in the associations governing documents. (Section 718.111(12)(c)1, F.S. He concentrates his practice areas on business litigation, condominium and community association law, construction law, and real estate litigation. 718.303 (1), owners . The reason for disapproval must also meet the requirements of statutes. The law has been amended to provide that written notice of a meeting other than an annual meeting must include an agenda; be mailed, hand delivered, or electronically transmitted to each unit owner; and be posted in a conspicuous place on the condominium property or association property within the timeframe specified in the Bylaws. Condominium Act. If the Association does have tenant approval power, whatever the reason for rejecting the tenant, the Association must be prepared to explain. Courtesy Notice of Late Assessment Section 718.121(5), F.S., (SB 56, Page 12). (c) Unit owners must affirmatively acknowledge their understanding that the association has changed its method of delivering the invoices for assessments or statements of account to delivery in writing or by electronic transmission. The 2021 Florida legislative session produced several bills that made numerous changes to condominium law (Chapter 718, Florida Statutes; the Condominium Act) that will affect the operation of condominium associations across the State. The bill modifies certain provisions in the Florida Statutes that impact condominium associations and homeowners associations. (b) Exclusively Designated Parking Spaces Section 718.113(8)(a), F.S., (SB 630, Page 30), The locations where the association may not prohibit an electric vehicle charging station and a natural gas fuel station was expanded from the limited common elements to also include an exclusively designated parking area., (c) Association Charging Stations Section 718.113(9), F.S., (SB 630, Page 33). Many federal laws provide protection to people who could have been denied approval in the past. The Fair Housing Act includes familial status (children) as a protected class. 1. (b) Authorizes the Board to conduct Board meetings, committee meetings, membership meetings, and elections, in whole or in part, by telephone, real-time videoconferencing, or similar real-time electronic or video communication. In addition, it is imperative for associations to base their decisions on legitimate factors as provided within the policies set forth in their governing documents, including but not limited to matters such as credit worthiness, evictions, criminal records, interviews with past landlords, and others. However, the percentage of rental units may not exceed the FHA owner-occupancy requirements. Visit www.gadclaw.com or ask questions about your issues for future columns, send your inquiry to: question@gadclaw.com. The Board of Directors of many condominium associations takes their approval responsibility seriously, and they should. Require pets to be spayed or neutered. A:This is a good question because the Florida Condominium Act does require that the Board keep minutes of every board meeting, and that minutes are official records that must be made available to owners when requesting access to official records. Florida Statute 718.303 In Florida, Condominium Associations have the ability to access Fines and issue Suspensions upon Unit Owners pursuant to Florida Statutes, 718.303. Insurance Subrogation Section 627.714(4), F.S., (SB 630, Page 5). First, Florida Statutes section 720.3055 requires the homeowners association to obtain competitive bids for any contract for the provision of services requiring payment that exceeds 10 percent of . The prospective owner in the latter case went to court and the judge ruled insisting on tax returns was overreaching and unenforceable. Florida Statute section 718.111 (11) (f) requires that the condo association maintain insurance on "all portions of the condominium property as originally installed" or as replaced in accordance with the original plans and specifications. Providing access to settlement parameters would severely hinder the Associations negotiating position and attorney client privilege is sacred and should not be waived during the pendency of litigation absent a clear intention to do so. The 2021 Florida legislative session produced several bills that made numerous changes to condominium law (Chapter 718, Florida Statutes; the Condominium Act) that will affect the operation of condominium associations across the State. Generally, the board of directors is authorized to make rules pursuant . For transfer purposes, spouses, a parent or parents, and any dependent children are considered one applicant. The board has a fiduciary obligation to those in their condominium community to protect the community. You should consult an attorney for advice regarding your individual situation. The bill modifies certain provisions in the Florida Statutes that impact condominium associations and homeowners' associations. may be leased or rented without the approval of the Association. State law limits such fees to . 16. The fee may not be more than $100 per applicant and a husband/wife or parent/dependent child are considered one applicant. (Section 718.111(12)(a)11d, F.S. The investment group appealed and was successful, with the appellate court ruling that the change was a deprivation of property rights. Among the changes made was one that restricts the right of a homeowner's association to implement rental . Fax: (239) 332-2243, 4632 Vincennes Blvd., Suite 101 on Service Animals and Assistance Animals for People with Disabilities in Housing and HUD-Funded Programs, FHEO-2013-01 (April 25, 2013). T he tenant application process to a condominium association can be long, arduous, and sometimes, expensive. Steven J. Adamczyk Esq., is a shareholder of the law firm Goede, Adamczyk, DeBoest & Cross, PLLC. Developer Use of Sales or Reservation Deposits Prior to Closing Section 718.202, F.S., (SB 630, Page 50). The owner has requested to review minutes of meetings between the board and its attorney to discuss this litigation. In the Inclusive Communities Project opinion, Justice Kennedy explained: An important and appropriate means of ensuring that disparate-impact liability is properly limited is to give housing authorities and private developers leeway to state and explain the valid interest served by their policies. For example, prior to the Inclusive Communities Project decision, certain federal Courts found that limiting the number of occupants in a unit can be an acceptable policy under the FHA. Some declarations and bylaws for Florida communities provide associations with a right of first refusal, enabling them to accept the same terms and conditions for any good-faith lease offer that a unit-owner receives and is willing to accept. There are over 1 million condominium units in Florida. Condominium Association, Inc. Rules & Regulations and the signature(s) below authorize Sawgrass Villas . However, the association may deny access based on a governmental order or determination, or a public health directive from the Centers for Disease Control and Prevention, prohibiting access to a unit. . 819 (D. Nev. 1994). No racism, sexism or any sort of -ism Both approvals are required to lease a condo in Miami. Note that notice may now also be posted on association property (i.e. Phone: (239) 542-3148 The publication of this article does not create an attorney-client relationship between the reader and Goede, Adamczyk, DeBoest & Cross, or any of our attorneys. Alternative Dispute Resolution Section 718.1255, F.S., (SB 630, Pages 40 46), (a) In lieu of initiating non-binding arbitration, a party may submit a dispute to the pre-suit mediation process in accordance with Section 720.311, F.S., and then file in a court of law, which is the same procedure currently used by homeowners associations. Alternative Fuel Charging Stations, (a) Natural Gas Charging Stations Section 718.113(8), F.S., (SB 630, Page 30). If the tenant fails to comply, the association can evict the tenant under the landlord-tenant statute by serving a three-day notice to pay or vacate . Your California Privacy Rights/Privacy Policy. The building, about 6 miles from Surfside, was deemed. If the Bylaws do not specify a timeframe for written notice of a meeting other than an annual meeting, notice must be provided at least 14 continuous days before the meeting. To avoid surprises, buyers request condominium associations provide a letter confirming the status of assessments. ), (b) The statute now provides that arbitration is binding on the parties if all parties agree to be bound in writing. Condominium associations may extinguish a discriminatory restriction in the manner provided under Section 712.065, F.S., (i.e., a majority vote of the Board of Directors). Therefore, to ascertain what approval rights the association may have regarding a prospective tenant or purchaser, the association should begin by reviewing its own governing documents. His practice includes litigation and divorce, business law, estate planning, associations and real estate. Be Truthful. We pride ourselves of our level of commitment to our clients. The Florida Condominium Act, Fla. Stat. If your association was created 50 years ago . Associations often require that prospective tenants submit pages and pages of paperwork, undergo background and credit checks, and pay application fees. The amount of the transfer fee must be adjusted every 5 years in an amount equal to the total annual increases occurring in the. The trial court disagreed and explained the investment group bought knowing unit owners could amend the declaration at any time. The law clarifies that the quorum and amendment restrictions in Chapter 617, Florida Statutes (the Florida Not for Profit Corporation Act), do not apply to condominium associations governed by Chapter 718, Florida Statutes. The Condominium Act does not merely address rental limitations. The evaluation would occur at the time the application is filed. In Phillips v. Hunter Trails Community Association, the rejected buyer recovered almost $200,000 in damages even though the association exercised a right of first refusal. This new statutory provision will be reflected in a new subsection (h), to be added to Section 720.306 of the Florida Statutes. Provide contact information for all insurance maintained by the association. Photo courtesy of Oleg Ivanov Miami Herald Real Estate Column by Christyne Santisteban: Growing Condo Association Budgets Require Deft Touch by Directors, Property Managers, Community Associations Institutes Condo Safety Initiatives Recognized with Prestigious Public Affairs Council Award, Herald Column by Gary Mars: National Media Focuses on Impact of Floridas New Condo Safety Law on Association Budgets. Additionally, the federal Fair Housing Act1 (more commonly referred to as the FHA) and Floridas Fair Housing Act2 each provide numerous protections from discrimination by housing providers, including condominium associations. The hiring of an attorney is a decision that should not be based solely on advertisements or this column. In Barnett and Klein v. The President of Palm Beach, a Condominium, an owner recovered damages for tortious interference with a contractual relationship when the association denied his effort to rent relying on a rule adopted by the board instead of a limitation in the declaration. and Urban Dev., 56 F.3d 1243 (10th Cir. / SB 630, Page 9), (d) Associations with 150 units may now provide certain specified documents through an application that can be downloaded on a mobile device, rather than posting them to the associations website. A:Yes, the statutes only require that the notice of the meeting along with the election materials be sent at least fourteen (14) days before the meeting and election. Q:Our condominium association is involved in litigation with one of our owners. Note: Be wary of using credit history as a ground for disapproval. Previously, a developer could use such funds for actual construction, but the escrowed funds may now be used for the actual costs incurred by the developer in construction and development of the condominium property. Under the new Condo Board crime law, any Condo Board member that destroys an official document or record of the Condo Association "in furtherance of a crime" commits a crime. Mr. Pope is 1 of only 2 attorneys in Florida that is Florida Bar Board Certified in both Construction Law and Condominium and Planned Development Law. The statute recognizes the importance of maintaining a community in multi-unit housing, but confirms the Associations power to regulate transfers must be accepted by the owners before it can be exercised. Client Payment. Jacob Epstein is an associate with the Miami-based law firm of Haber Slade, P.A. (d) Construction Lien Section 718.121(2), F.S., (SB 630, Page 35). Instead, the prohibition or regulation will only apply once the heir or affiliated entity transfers title to another party. On June 16, 2021, Governor DeSantis signed Florida SB 630, which will become effective on July 1, 2021. However, some association boards of directors are under the misconception that they can easily develop and implement new leasing restrictions via a board vote, and that they have the authority to approve or reject prospective tenants as they please without facing any scrutiny of their decisions. Fax: (239) 542-8953, 4524 Gun Club Rd. This case illustrates just one of the many reasons why it is essential for community associations considering new lease restrictions to work in close consultation with extremely well qualified association attorneys. j. Q:Our community has a very strict tenant screening process and my neighbor has had multiple tenants denied due to poor background checks. Section 718.016 (4) of the Florida Condominium Act states that a tenant leasing a unit has the right to use all association property and common elements that are otherwise generally available for use by unit owners, unless the tenant has waived this right in writing. The law applies to all condos, apartments, and rental homes. For more information, call us at (954) 241-2260, send an e-mail to info@themold.lawyer. 9. (Section 718.1255(4), F.S. As such, it is unclear how to treat a candidate running for the Board that is more than 90 days delinquent in a monetary obligation other than an assessment. The deposit must not exceed the equivalent of one month's rent and be placed into an escrow account which the Association is responsible for maintaining. A recent lawsuit filed by a tenant against a Miami condominium association is claiming excessive application fees were charged, violating the Florida law. This article provides a basic overview of the limitations affecting associations with regard to the ability to approve or disapprove individuals seeking to purchase or lease within the community. 15. If the Declaration of Condominium expressly provides that the Association has approval and denial authority, case law indicates that a Board has "good cause" to deny a lease based on a tenant's failure to previously honor the rules in that particular condominium association. The Association should carefully consider its policy regarding tenant applications, specifically the criteria used by the Association in making its decisions, to ensure that valid interests are protected by such policy. Board Member Term Limits Section 718.112(2)(d)2, F.S., (SB 630, Page 17). Residents of the Crestview Towers Condominium carry their belongings as they leave their building in North Miami Beach, Florida, on July 2. If the allegations in the lawsuit hold up in court, the association could be forced to pay the plaintiff unit-owners lost rental income and legal bills. Combined Declaration of One or More Condominiums Section 718.405(5), F.S., (SB 630, Page 54). Use the 'Report' link on The Association should consult with its legal counsel before utilizing certain powers provided for in the governing documents, as sometimes, the very powers articulated in the those documents may be in violation of applicable laws. In that case, the purchaser was African American and established that he was denied approval because of his race. To reign in that abuse, the 2017 legislature again amended Floridas Condominium Act to cap the fee for estoppel letters at $250. The structural repairs had not yet begun when the condo collapsed two months later. The information provided herein is for informational purposes only and should not be construed as legal advice. Phone: (239) 334-2195 In, Barnett and Klein v. The President of Palm Beach, a Condominium, , an owner recovered damages for tortious interference with a contractual relationship when the association denied his effort to rent relying on a rule adopted by the board instead of a limitation in the declaration. Your HOA . Note, however, that Section 718.112(2)(n), F.S., was not amended and still provides that a director or officer more than 90 days delinquent in the payment of any monetary obligation due the association shall be deemed to have abandoned the office, creating a vacancy in the office to be filled according to law. That makes it important to review any limitations on sales or rentals, especially if a buyer is purchasing and plans on renting the unit. The information you obtain at this site is not, nor is it intended to be, legal advice. So, it is possible that the rule is valid, but you should first have the Declaration and the rule analyzed by a licensed Florida attorney to determine whether the authority is properly vested in the board. (a) Amends Section 718.1265(1), F.S., to extend a condominium associations Board of Directors emergency authority to apply its response to injury and to an anticipated declared state of emergency. 17. To view past articles, please click Publications on our firm website. 718.101, et. The information in this column is general in nature and not intended as legal advice. Criminal history. Brad Sohn, a lawyer representing at least one resident who has filed a lawsuit against the Champlain Towers South Condominium Association, said on Saturday that residents were facing. A Florida condominium association or homeowners association may collect a security deposit from a prospective tenant in addition to the security deposit collected by the landlord if the association's governing documents provide the authority to do so. Don't Threaten. PLEASE TURN OFF YOUR CAPS LOCK. In that case, the purchaser was African American and established that he was denied approval because of his race. The statute does not limit estoppel fees to condos with such authority in their governing documents so every Florida condominium can charge the fee unless its governing documents prohibit it. It is unclear what is meant by the reference to an owner who consents to the governing document as no vote of the parcel owners is taken at the time a declaration (the governing document) is first adopted. 5. 4. The association eventually settled the case by paying the former president $550,000 and agreeing to purchase her condominium unit. and Urban Dev. A member of the Board will conduct an interview with the purchaser or tenant and issue a Certificate of Approval, if applicable. racist or sexually-oriented language. from U.S. Dept. This requires a legal opinion and is very fact specific based on the actual governing documents in your case. (b) Before changing the method of delivery for any invoice for assessments or a statement of account, the association must deliver a written notice of such change to the unit owners at least 30 days before it sends the invoice for assessments or the statement of account by the new delivery method. Please contact the firm for more information. Assessments and Statements of Account Section 718.121(4), F.S., (SB 56, Page 11). Becker & Poliakoff is one of Florida's preeminent law firms, and the firm that pioneered Condominium and Homeowners Association law in Florida. The installation, repair, or maintenance of an electric vehicle charging station or a natural gas fuel station under this subsection of the statute does not constitute a material alteration or substantial addition to the common elements or association property. The statute had previously expressly prohibited potential conflicts of interest even if the financial interest was disclosed or approved by the Board or the unit owners, and conflicted with Section 718.3027, F.S. The Department of Business & Professional Regulation (DBPR) must periodically calculate the fees, rounded to the nearest dollar, and publish the adjusted amounts on its website. The case ended up at the Florida Supreme Court and the Justices agreed with the trial court, leaving the investment group with a condominium unit they could no longer rent as intended. Tenant Approval Procedures Some HOA's are placing themselves in a position to actually screen the tenants that a non-occupant owner selects to rent. You may mail the co mplaint forms to the following addre ss: Division of Florida Condominiums, Timeshares and Mobile Homes 2601 Blair Stone Road, Tallahassee, Florida 32399-1030. The law was amended to clarify and expand a developers right to use sales and reservation deposits placed in escrow. When an association fails to do so, the result can be an expensive education for the Board of Directors and owners. 1995); U.S. v. Weiss, 847 F. Supp. Changing rental rules were addressed by Floridas Supreme Court in the 2002 case of, Woodside Village Condominium Association v. Jahren. Most people believe associations have an inherent right to approve sales or leases, but that is not the case. and lease renewals shall be on forms approved by Association and shall provide that Association shall have the right to terminate the lease upon default by the tenant or other occupant of . Once every decade, the Florida courts issue an opinion that profoundly changes the face of condominium law. It also provides that condominium associations may charge a fee for approval of leases or sales, as long as the fee is provided in the declaration, articles or bylaws. The buyer has just completed due diligence and determined that the building needs a new roof and demands a $300,000 credit against the purchase price. The condominium association's board of directors has just approved a large special assessment to finance the replacement of an aging heating and cooling system, and owners are not pleased, to say the least. 718.116(4) of the Condominium Act states: " If the association is authorized by the declaration or bylaws to approve or disapprove a proposed lease of a unit, the grounds for disapproval may include, but are not limited to, a unit owner being delinquent in the payment of an assessment at the time approval is sought."