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Subject:  GOVERNOR RICK SCOTT APPROVED HOA REFORM BILL H7119.
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MarleeS
(Florida)

Posts:50


06/16/2013 5:11 AM  
Florida HOA members...FYI~~~~

GOVERNOR RICK SCOTT APPROVED YESTERDAY AFTERNOON HOA REFORM BILL H7119.
HOA REFORM BILL H 7119 --

Approved by Governor Rick Scott

Companion Bill To S 580

Tallahassee, June 14, 2013



The bill was today signed by Governor Rick Scott. The provisions of the bill will be effective July 1, 2013.

THE BILL SUMMARY

q CAM (FS 468.436): Adding Disciplinary proceedings for violations of Florida statutes Chapter 718, 719 and 720 during the course of performing community association management services.



q Records:

§ Records have to be made available for inspection within 45 miles or within the county.

§ The association can make records available to a parcel owner electronically via the Internet or by allowing the records to be viewed in electronic format on a computer screen and printed upon request.

§ The association must permit a member to take photographic images of such records with a camera or other electronic device at no charge.

§ Disallows charges of more than $20.00 per hour for personnel fees and charges at an hourly rate for vendor or employee time to cover administrative costs to the vendor or association.

§ Association may only charge up to 25 cents per page for copies made.

§ If copies are made by an outside duplicating service vendor or association management company personnel the association may charge the actual cost of copying, as supported by the vendor invoice.



q Reserve Accounts:

§ Requires the budget to designate the components for which the reserve accounts may be used.



q Reporting Requirement:

§ Each homeowners' association has to report to the Division by November 22, 2013, detailed information about the association.



q Officers and Directors:

§ HOA board members are now required to certify in writing to the secretary of the association that he or she has read the association’s declaration of covenants, articles of incorporation, bylaws, and current written rules and policies or provide the secretary with an educational certificate stating that the board member has satisfactorily completed an educational curriculum administered by a division-approved education provider.

§ Requirements for contracts with companies where a director has a financial interest; comply with FS 617.0832

§ Disallows kickbacks to officers, directors, or managers.

§ Removes a director or officer charged by information or indictment with a felony theft or embezzlement offense involving the association’s funds or property from office.

§ Requires every association to maintain insurance or a fidelity bond for all persons who control or disburse funds of the association.



q Amendment of Governing Documents:

§ 30 days after recording an amendment to the governing documents, the association shall provide copies of the amendment to the members.



q HOA Elections:

§ Changes to nominations of candidates before election.



q Transition of Association Control on HOAs if:

§ the developer abandons or deserts the responsibility to maintain and complete the advertised amenities or infrastructure.

§ the developer files a petition seeking protection in bankruptcy (chapter 7);

§ the developer loses title to the property through a foreclosure action or the transfer of a deed in lieu of foreclosure;

§ a receiver for the developer is appointed by a circuit court and is not discharged within 30 days after such appointment.

q Election of Board Members in developer-controlled HOAs:

§ Members other than the developer can elect one board member after 50% of all parcels are conveyed to members.


q Prohibited Clauses in documents:

§ Prohibiting a developer from unilaterally making amendments to the governing documents that are arbitrary, capricious, or in bad faith; destroy the general plan of development; prejudice the rights of existing nondeveloper members to use and enjoy the benefits of common property; or materially shift economic burdens from the developer to the existing nondeveloper members.


q Clarification "Previous Owner":

§ For the purposes of this subsection, the term “previous owner” shall not include an association that acquires title to a delinquent property through foreclosure or by deed in lieu of foreclosure.


THE FINAL VERSION OF H7119/CS

KevinK7
(Florida)

Posts:1342


06/16/2013 6:07 AM  
While some of the records provisions are nice, I particularly like the reporting provision. Hopefully this would help prevent costly legal proceedings by nipping disputes in the bud.

My one question would be the part that requires records to show the board members to certify that they read the governing documents. I wonder if insurance companies may then use this as a way to find individuals in violation of their coverage, like a dispute over interpretation.
AnnH4
(Florida)

Posts:53


06/16/2013 12:21 PM  
Posted By KevinK7 on 06/16/2013 6:07 AM
While some of the records provisions are nice, I particularly like the reporting provision. Hopefully this would help prevent costly legal proceedings by nipping disputes in the bud.

My one question would be the part that requires records to show the board members to certify that they read the governing documents. I wonder if insurance companies may then use this as a way to find individuals in violation of their coverage, like a dispute over interpretation.






The law is only stipulating that the Board members have read their governing documents, not that they actually understand them or how they interpret them. It just looks like a formality to me. Now if an insurer wanted to deny a claim or coverage because the Board members did not sign a document acknowledging they read the governing documents, that might be a different situation? In that example, the Board did not follow the statute.
ValerieS2
(Michigan)

Posts:244


06/17/2013 1:28 PM  
Good news Marlee - I hope more states follow suit.
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