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Post by Admin on Mar 10, 2018 10:48:29 GMT -5
This bill passed the legislature and, if signed by the Governor, will go into effect Oct 1, 2018. It is shameful and disastrous for ALL associations, but the progress made by condos last year has been largely gutted by this bill. The sponsor is an outgoing politician and had nothing to lose by sponsoring this trainwreck. For HOA's, the fun begins on page 68. The single most disastrous new provision is the permission to allow HOA directors to communicate by email. There can be no voting by email. This provision opens the door to shutting down what minimal transparency HOA's previously had. There are no more restraints on directors conducting business by email and simply introducing a motion and approving business at the next meeting--essentially closing down owner input into the process. Of course that is not much different than current business as usual. We all know that directors conduct business by email, though prior to this bill, the practice was prohibited. What the future brings insofar as business records residing on personal computers is anybody's guess. My guess is "chaos". HB841.pdf (326.11 KB) This is a good format to compare the old and the new. The "old" provision is struck through and the new provision is underlined. |
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Post by Admin on Apr 9, 2018 6:48:32 GMT -5
Govenor Sct signed the bill which erodes and muddies the previous advances made for CONDO owners last year. Predictable but disappointing. Condo law drifts further and further from HOA law but not in a good direction. It is hostile to homeowners period. Here are the provisions in the bill which affect HOA:
718.303 AND 720.305 – FINES: If the proposed fine or suspension is approved by the committee, the fine payment is due 5 days after the date of the committee meeting at which the fine is approved. The association must provide written notice of such fine or suspension by mail or hand delivery to the unit owner and, if applicable, to any tenant, licensee, or invitee of the unit owner.
Does not affect SLohA because SLohA does not have covenanted authority to assess fines.
720.303 – E-MAIL: In HOAs - Members of the board of administration may use e-mail as a means of communication, but may not cast a vote on an association matter via e-mail.
Does not affect SLohA because it has been doing this illegally since email was invented. The legislature has, with the swish of a keystroke, turned the "illegal to legal". There is dire need for clarification and controls, particularly when association business is "created" during email threads on personal computers. Is that an official record?
720.306 DOCUMENT AMENDMENTS IN AN HOA – Adopts the condominium method of how unit owners approve amendments. Words to be added to the existing text must be underlined. Words to be removed from the existing text are stricken-thru. However, If the proposed change is so extensive that underlining and striking through language would hinder, rather than assist, the understanding of the proposed amendment, a notation must be inserted immediately preceding the proposed amendment in substantially the following form: "Substantial rewording. See governing documents for current text." Clarifies that just like in a condo, an amendment to a governing document is effective when recorded in the public records of the county in which the community is located.
Badly needed control for HOA's. The last ballot proposal was an example of this NOT happening, though in the bigger picture, the construction of the proposal was the least of the problems that SLohA may experience in its legal future with this amendment.
720.306 HOA ELECTIONS - If an election is not required because there are either an equal number or fewer qualified candidates than vacancies exist, and if nominations from the floor are not required pursuant to this section or the bylaws, write-in nominations are not permitted and such qualified candidates sH all commence service on the board of directors, regardless of whether a quorum is attained at the annual meeting.
Before acting on this provision, SLohA directors should go read the Bylaws...
All in all, the only new provision allowing email discussions is problematic. Without clarification, boards may freely conduct ALL association business on their personal computers and simply drop it in the lake if it is called as a witness. As it is, SLohA has been conducting business by personal email for many years and the creation of a business decision is rubber-stamped at a board meeting, without participation by owners. This is a business culture and one which is encouraged by service providers such as management companies and attorneys as well as the state of Florida.
More importantly, another year gone by---a slew of bills for CONDOS--and not a single legislator has presented a passable bill reforming HOA.
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