Previously, the Division only retained jurisdiction after turnover to investigate complaints against the developer related exclusively to financial issues, elections, and unit owner access to the official records. However, election and recall disputes are not eligible for pre-suit mediation and such disputes must be arbitrated by the Division or filed in a court of law. Conflicts between Chapter 718, Condominium Act, and Chapter 617, Florida Not for Profit Corporation Act (SB 602, Page 16). 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). A vote of the parcel owners is only taken when a declaration is amended. from U.S. Dept. 14. Although nothing will completely prevent challenges by applicants and potential liability in this process, the Association should consult with legal counsel, and carefully evaluate whether any changes to its tenant application process are necessary to prevent discrimination against a minority group or to ensure compliance with applicable laws and the Associations governing documents. 4. What might those be? of Hous. Conflicts of Interest Section 718.112(2)(p), F.S., (SB 630, Page 29). However, the percentage of rental units may not exceed the FHA owner-occupancy requirements. Many associations make a credit report part of the approval process, and one local association went so far as to require tax returns be submitted. Senate Bill 630 went into effect on July 1, 2021. Jacob Epstein is an associate with the Miami-based law firm of Haber Slade, P.A. Illegal Discriminatory Restrictions Section 718.112(1)(c), F.S., (SB 630, Page 16). The information provided herein is for informational purposes only and should not be construed as legal advice. Failure to fully or truthfully compete the. That case started when an investment group bought a condominium and the owners in the condominium later amended the declaration to limit rentals. If the Declaration provides, for example, only that all leases must be approved by the board, this may be sufficient authority for the board to adopt a rule or resolution setting forth good cause for denial. 1995); U.S. v. Weiss, 847 F. Supp. Notice of Intent to Foreclose Section 718.116(6)(b), F.S., (SB 56, Page 9). The prospective owner in the latter case went to court and the judge ruled insisting on tax returns was overreaching and unenforceable. An arbitrary disapproval of a tenant or purchaser is likely to be unenforceable. 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 period of time a unit owner has to pay a monetary obligation is increased from 30 days to 45 days after receiving an associations notice of intent to record a claim of lien. The bill modifies certain provisions in the Florida Statutes that impact condominium associations and homeowners associations. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. The Florida Condominium Act, Fla. Stat. A member of the Board will conduct an interview with the purchaser or tenant and issue a Certificate of Approval, if applicable. Threats of harming another The statute was amended to permit a unit owner to install a natural gas fuel station, subject to the same requirements as a unit owner installing an electric vehicle charging station. Get an email notification whenever someone contributes to the discussion. The association eventually settled the case by paying the former president $550,000 and agreeing to purchase her condominium unit. They are for all intents and purposes tenants and fall under landlord-tenant law. Be Nice. The amount of the transfer fee must be adjusted every 5 years in an amount equal to the total annual increases occurring in the. at 2522. In no event, however, may an association disapprove a proposed purchaser or lessee on the basis of race, gender, religion, national origin, or physical or mental handicap. The law also now provides that a person is delinquent if a payment is not made by the due date as specifically identified in the Declaration of Condominium, Bylaws, or Articles of Incorporation. The Association should be prepared to provide this explanation even if the Associations governing documents do not require the Association to do so. When someone buys a condominium, the buyer inherits liability for assessments unpaid by the prior owner and those coming due after the buyer becomes the owner. HOAs sometimes limit what types of equipment can be stored outside your home. Highly experienced community association counselors can quickly ascertain if any proposed changes require amendments to the governing documents or whether they may be enacted by a simple board vote. Construction Defect & Scheduling Litigation, Non-Compete / Restrictive Covenant Litigation, Trade Secrets & Unfair Competition Litigation, Commercial & Residential Real Estate Disputes, Mediation / Alternative Dispute Resolution, Tax Disputes (IRS Controversy & Litigation). The Florida Department of Business and Professional Regulation, Division of Condominiums, explains that even if a condominium declaration makes an item the unit owners' responsibility, when that item is not among these statutory exclusions, the declaration provision is preempted by the Act and the association remains responsible for the . . The fee may not be more than $100 per applicant and a husband/wife or parent/dependent child are considered one applicant. 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. 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 . Some governing documents give the Board of Directors plenary power to adopt, modify or otherwise change use restrictions. Consumer Price Index during that 5-year period. and Urban Dev., 56 F.3d 1243 (10th Cir. 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. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. 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. You have permission to edit this article. A homeowners association cannot evict a homeowner the same way that a landlord can evict a tenant. Only approve select dog breeds. (1) If a landlord requires a prospective tenant to complete a rental application before residing in a rental unit, the landlord must complete processing of a rental application submitted by a prospective tenant who is a servicemember, as defined in s. 250.01, within 7 days after submission and must, within that 7-day period, notify the Contacting us does not create an attorney-client relationship. The bill modifies certain provisions in the Florida Statutes that impact condominium associations and homeowners' associations. Assessments and Statements of Account Section 718.121(4), F.S., (SB 56, Page 11). Attorney at Law at Dania S. Fernandez and Associates, P.A. The HOA application states that the screening process is said to take up to 30 days. (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. Editors note: Attorneys at Goede, Adamczyk, DeBoest & Cross, PLLC, respond to questions about Florida community association law. In other words, previous legal cases addressing the restrictions on a persons ability to sell or transfer real property have upheld the restrictions only to the extent that they are considered reasonable. The annual budget for condominium associations must be proposed to unit owners and adopted at least 14 days before the beginning of the fiscal year. 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. Photo courtesy of Oleg Ivanov If the association has only sent the package to the printer, for example, and not actually postmarked the package, there is still time and the election would not be overturned provided the package is timely mailed. The law has been changed to allow the principal office of the Ombudsman to be located outside of Leon County, Florida. / SB 630 Page 12), 3. Unit owners may now challenge a recall rejected by the Board of Directors in a court of law rather than pursue arbitration through the Division of Florida Condominiums, Timeshares, and Mobile Homes (Division) within the DBPR. We pride ourselves of our level of commitment to our clients. Other grounds that might be argued to be reasonable in connection with the disapproval of an applicant seeking to reside in a community may include the following: (1) the applicant has been convicted by a court of a felony involving violence to persons or property, or a felony demonstrating dishonesty or moral turpitude, and has not had their The unit owner is responsible for complying with all federal, state, or local laws or regulations applicable to the installation, maintenance, or removal of an electric vehicle charging station or a natural gas charging station. West Palm Beach, FL 33415 The contact form sends information by non-encrypted email, which is not secure. Condo Application Fees - What is Legal in Florida. The law clarifies that a multi-condominium association may adopt a consolidated or combined Declaration for the condominiums without being required to merge the condominiums into a single condominium. (Section 718.111(12)(a)11d, F.S. Please do not send any confidential information to us until such time as an attorney-client relationship has been established. Managers Report eNewsletter. Unreasonable restraints on the alienation of property are disfavored by Florida courts. Are we required to make these available? Associations often require that prospective tenants submit pages and pages of paperwork, undergo background and credit checks, and pay application fees. However, effective July 1, 2021, a declaration or other governing document of a homeowners association that has more than 15 parcel owners, or an amendment to a declaration or other governing document of such a homeowners association, that contains a prohibition or regulation as to rental agreements, applies only to a parcel owner who acquires title to the parcel after the effective date of the governing document or amendment, or to a parcel owner who consents, individually or through a representative, to the governing document or amendment. Alternative Fuel Charging Stations, (a) Natural Gas Charging Stations Section 718.113(8), F.S., (SB 630, Page 30). 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. To avoid surprises, buyers request condominium associations provide a letter confirming the status of assessments. In this situation, the rule may be invalid and the Association should amend the Declaration to include these lease approval requirements in the Declaration itself. 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 . 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. On the other hand, the statute also provides that owners are not entitled to access official records which includes any attorney client privilege or attorney work product prepared in connection with a lawsuit. The fee may not be more than $100 per applicant and a husband/wife or parent/dependent child are considered one applicant. Addressing any flaws in the Associations tenant application process now may help to prevent or reduce litigation down the road. We look at the circumstances and process of how someone could be removed from a condo. I would also recommend reviewing the associations bylaws as this document sometimes contains notice requirements which are more restrictive than the statutory requirements. 2. Exterior storage. Board Candidate Eligibility Section 718.112(2)(d)2, F.S., (SB 1966, Page 39). A: Florida law supports the right of a condominium association or homeowners' association to review and approve prospective leases and tenants. Insurance Subrogation Section 627.714(4), F.S., (SB 630, Page 5). The period of time the condominium association must wait prior to foreclosing a claim of lien has been increased from 30 days to 45 days after the association gives written notice to the unit owner of its intention to foreclose the claim of lien. Division Enforcement of Developers Section 718.501(1), F.S., (SB 630, Page 54). Condominium Act. Renewal of lease or sublease with the same tenant cannot be charged a fee. 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." The firm represents community associations throughout Florida and focuses on condominium and homeowner association law, real estate law, litigation, estate planning and business law. The tenant must provide the landlord 30 days' written notice, along with a copy of the official military orders or a written verification signed by the service member's commanding officer. Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. 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. 2021 LEGISLATIVE UPDATE FOR FLORIDA CONDOMINIUM ASSOCIATIONS. The law prohibits the use of the escrow funds for marketing or promotional purposes, loan fees and costs, principal and interest on loans, attorney fees, accounting fees, or insurance costs. 4. PLEASE TURN OFF YOUR CAPS LOCK. Board Recalls Section 718.112(2)(j(4), F.S., (SB 630, Page 28). 1. The FHA prohibits housing providers from refusing to otherwise make unavailable or deny, a dwelling to any person because of race, color, religion, sex, familial status, or national origin.4 Despite the FHAs language, which provides protections for minority groups based on race, color, religion, sex, familial status, or national origin, the FHAs reach has been expanded to protect other minority groups not specifically listed in the statute. Your California Privacy Rights/Privacy Policy. The. The law applies to all condos, apartments, and rental homes. Transfer Fees/Security Deposits Section 718.112(2)(i), F.S., (SB 630 Page 25), The maximum permissible transfer fee has been increased from $100 to $150. A condominium, in Florida, is created by the filing and recording of a Declaration of Condominium. (Section 718.111(12)(c)1, F.S. Notifications from this discussion will be disabled. 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. Surfside It is important to note that an association or Tampa condo association management company may not require prospective tenants to be "vetted" or approved . (d) Construction Lien Section 718.121(2), F.S., (SB 630, Page 35). By January 1, 2019, a Condominium Association in Florida with 150 or more units (not including timeshare units) must have an independent website or web-portal owned and operated solely by the Association or operated by a third party provider on behalf of the Association. 13. Militzok & Associates are toxic black mold attorneys who are proud to represent individuals and families throughout the State of Florida who are suffering injuries from mold exposure, musty smells and other types of indoor air quality issues. the association may not allow access to "Information obtained by an association in connection with the approval of the lease, sale, or other transfer of a parcel."8 The Condominium Act provides an additional statutory ground . Changing rental rules were addressed by Floridas Supreme Court in the 2002 case of Woodside Village Condominium Association v. Jahren. The board adopted a rule requiring the background checks, but we cant actually find anything about this in the Declaration itself. This means a person is no longer ineligible to be a candidate because they are delinquent on fines, fees, or any other monetary obligation other than assessments. Florida laws guarantee these rights to associations, but The Fair Housing Act still applies in regard to race, religion, age, etc. 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. For transfer purposes, spouses, a parent or parents, and any dependent children are considered one applicant. Share with Us. 5. The preemptive right allowed a sale for 95 percent of the offered price and you signed a third-party contract at $9.7 million, well within the 5 percent tolerance. 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. Many federal laws provide protection to people who could have been denied approval in the past. Specifically, the Department of Housing and Urban Development has warned housing providers of potential FHA liability for denying tenant applications based on requests by individuals with disabilities to reside with assistance animals.5 Associations must be careful to ensure that their tenant application policy and reasons for denying tenant applications do not have a disparate impact on any particular race, sex, or people of any particular national origin or familial status, or for that matter, on people with disabilities. Despite this recent expansion of the FHAs reach, Associations retain the discretion to reject tenant applications for a variety of reasons. It would appear that a person is eligible to be elected and then, immediately upon being seated, would be deemed to have abandoned his or her seat. 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. On June 14, 2021, the Florida Legislature sent Senate Bill 630 to Governor DeSantis to be signed into law. Among the changes made was one that restricts the right of a homeowners association to implement rental restrictions applicable to properties subject to the association's governing documents. person will not be tolerated. 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. Under the Courts decision in Texas Dept. Ombudsmans Office Section 718.5014, F.S., (SB 630, Page 65). 9. 2022 FCAP - Florida Community Association Professionals, LLC. He can be reached at jepstein@dhaberlaw.com. Senate Bill 630 contains many changes to Chapters 718 and 720, Florida Statutes, which govern condominium and homeowners' associations, respectively. Provide contact information for all insurance maintained by the association. 7. Questions regarding the content of this article may be emailed to Christopher Pope at chrispope@paveselaw.com. What happens when an association wrongfully refuses to approve a transfer? / 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. As of this writing, Senate Bill 1966 has not yet been presented to the Governor. or anything. 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. There is a new statutory form notice of late assessments that must be delivered to the unit owner before the association can require the payment of attorney fees related to past due assessments. The purpose for an Association to require a security deposit from a renter is to protect against damages to the common elements or association property. . The law clarifies that only service on the Board of a condominium association that occurs on or after July 1, 2018, may be used when calculating a Board members term limit of 8 consecutive years. The only leasing restriction in the associations recorded declaration states that owners are only restricted from renting units for terms of less than thirty days, contradicting the new restriction that the board tried to implement. Please visit our website at. 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. 2d 452 (Fla. 2002). This is different from approvals and rejections of prospective tenants, which should always be conducted under the careful guidance of qualified professionals to help avoid any potential legal and financial liabilities. 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. A unit owner or lienor may contest a plan of termination through pre-suit mediation, and then file in a court of law as an alternative to arbitration with the Division. Competent legal counsel should be consulted if you have questions regarding compliance with the law. 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. 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. (and their tenants' and guests') right to use the common elements of the property if the homeowner is more than 90 days delinquent in paying their maintenance fees. On June 16, 2021, Governor DeSantis signed Florida SB 630, which will become effective on July 1, 2021. Before this new legislation, the only limit on rental restrictions in the Florida Statutes, which pertained to community associations, related to condominium associations; there was no such limitation for homeowners associations. 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. (Section 83.682, Florida Statutes) If a tenant buys a home, the tenant does not have the right to terminate a written lease early. Q:Our condominium association is involved in litigation with one of our owners. 17. The tenant was charge at total of $625 in non-refundable fees by Quantum on the Bay, which included . 3. Under Fla. Stat. Posted 6 years ago. Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. Right to Contest Termination of Condominium Section 718.117(16), F.S., (SB 630, Page 33). My HOA requires a signed lease contract prior to the HOA background check and interview process. On June 16, 2021, Governor DeSantis signed Florida SB 630, which will become effective on July 1, 2021. 819 (D. Nev. 1994). Basically, an association may disapprove a lease or prospective tenant, if the basis for the disapproval is reasonable and non-discriminatory. 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. Courtesy Notice of Late Assessment Section 718.121(5), F.S., (SB 56, Page 12). Require pets to be spayed or neutered. The Division now retains jurisdiction to investigate complaints against developers for failure to maintain the associations official records. There are over 1 million condominium units in Florida. It is dangerous for Associations to deny tenant applications without having a specific, justifiable basis, as such a rejection may open the Association up to potential liability. 2. The information you obtain at this site is not, nor is it intended to be, legal advice. . Phone: (239) 542-3148 Official Records Section 718.111(12)17, F.S., (SB 56, Page 6). seq., is similar to the Homeowners' Association Act (HAA), except that it applies to condominium associations rather than homeowners' associations.. 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 . accounts, the history behind an article. 3 Texas Dept. You should consult an attorney for advice regarding your individual situation. Specifically, the Florida Condominium Act and Homeowners Association Act provide that an association's official records must include a statement of the account for each owner designating the due date and amount of each assessment, the amount paid on the account, and the balance due. Why Condominium Associations Must Carefully Evaluate Their Long-Standing Tenant Approval Policies. The rule was held beyond the boards authority. The investment group argued the amendment was a violation of their property rights. 5. Is there enough time to conduct the election? The contact form sends information by non-encrypted email, which is not secure. They also need to take precautions to keep secure the personal data and records obtained in all tenant applications, and they should be mindful to maintain any application fees consistent with the limit set under Florida law. The building, about 6 miles from Surfside, was deemed. Becker & Poliakoff is one of Florida's preeminent law firms, and the firm that pioneered Condominium and Homeowners Association law in Florida. Documents provided to NPR show the board approved seeking a $15 million line of credit on April 13, 2021. The evaluation would occur at the time the application is filed. Florida community associations typically have the right under their governing documents to regulate and approve leases and tenants. Still, the Condo Association has control over the condominium and can exercise power over the tenant just as it can with residents (or prospective residents). of Housing and Community Affairs v. Inclusive Communities Project, Inc., 135 S.Ct. Often times, these directors are disappointed to learn that Florida law and their associations governing documents are not as restrictive as they would like. Emergency Powers Section 718.1265, F.S., (SB 630, Page 46). Changing rental rules were addressed by Floridas Supreme Court in the 2002 case of, Woodside Village Condominium Association v. Jahren. The investment group appealed and was successful, with the appellate court ruling that the change was a deprivation of property rights. In sum, Florida law does not allow condominium associations to discriminate against someone who is renting a unit in the condominium. The 2 Midtown condo association charges tenants and buyers $550 dollars in transfer fees. 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.