Happy New Year! As 2024 begins, Florida HOAs must inform themselves of the latest legislative changes, particularly those targeting structural and financial issues particularly affecting condominium and cooperative communities. Here is a summary of new laws impacting HOAs:
- Safety Measures and Structural Inspections: The original SB 4-D that was signed into law on May 26, 2022, addresses safety and preventative measures related to condominiums. This law does not apply to: single-family, two-family, or three-family dwellings with three or fewer habitable stories about ground. The follow-on SB 154, passed in May 2023, provided some flexibility and its relevance continues into 2024 due to upcoming deadlines:
- Milestone Structural Inspections: COAs with buildings of 3 stories or more are required to perform Milestone Structural Inspections (MSI). An architect or engineer must produce a Milestone Inspection Report (MSR). Buildings with a certificate of occupancy issued before July 1, 1992, initially had until December 31, 2024, to complete the initial milestone inspection. However, SB 154 extended this deadline to December 31, 2025, and clarified that inspections can be conducted by a team supervised by an engineer or architect.
- Structural Integrity Reserve Study (SIRS): COAs must conduct an initial SIRS by December 31, 2024, for each building that is 3 stories or higher (and every 10 years after that). If the SIRS identifies necessary repairs, the association's board has 1 year to start the recommended repairs.
- Reserve Funding Requirements: Starting December 31, 2024, COAs are prohibited from using reserves for purposes other than those intended or reserved, waiving the reserves, or reducing the funding of reserves for certain structural components of the property.
- Board Members Liability: SB154 establishes clear liabilities for board members and officers who fail to fulfill their responsibilities regarding milestone inspections and SIRS. Failure to obtain required reports constitutes a breach of fiduciary duty, potentially leading to personal liability.
- Homeowners' Association Bill of Rights: SB 1114 / HB 919 took effect on October 1, 2023, to improve oversight and probe alleged misconduct within HOAs and condominium associations. Some of the aspects of the law include:
- Mandates specific identification of agenda items in notices for HOA board meetings and the meeting announcements must describe what is being voted on.
- Amends association requirements using a member's email for notices, allowing members to designate an alternate address.
- Stipulates that deposits collected from a member must not be commingled with other association funds and outlines homeowner rights concerning these deposits.
- Imposes monetary damages under S. 617.0834, FS, on officers, directors, or managers who accept kickbacks.
- Requires removal and denial of official records access to officers or directors charged with certain crimes related to HOA operations.
- Demands disclosure of potential conflicts of interest from directors and officers, including those appointed by developers.
- Revises notice requirements for imposing and collecting fines and clarifies criminal prohibitions related to fraudulent voting activities.
In addition to the above, the Florida state legislature will convene on January 9, 2024, to address additional HOA-related issues. These include provisions for HOA rules and covenants, building permits, hurricane protections, financial assistance, property insurance coverage, disclosure requirements, condominium windstorm insurance options, estoppel certificates, vacation rentals, and community association regulations.
As we embrace the changes brought by these new laws in 2024, remember that staying informed and proactive is key to successfully managing your HOA. For a thorough understanding and application of these regulations, consult your HOA's legal team. They can provide detailed guidance and support.
Footnotes & References
- The Florida Senate. CS/CS/HB 919 - Homeowners' Associations.
- The Florida Senate. CS/CS/SB 154 - Condominium and Cooperative Associations.
- The Florida Senate. SB 4-D - Building Safety.
