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Employment Law Change That Community Associations Should Be Aware Of : by Ned Bassen, Jamie B. Dokovna

Employment Law Change That Community Associations Should Be Aware Of : by Ned Bassen, Jamie B. Dokovna

  • Posted: Nov 11, 2021
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Employment Law Change That Community Associations Should Be Aware Of

by Ned Bassen, Jamie B. Dokovna of Becker Lawyers

Senate Bill 1532 amending §409.2576, Florida Statutes went into effect. Previously, only employers with 250 or more employees were required to report newly hired and re-hired individuals to Florida’s State Directory of New Hires within 20 days of hiring. Independent contractors were excluded. Now, as of October 1, any employer, regardless of the number of employees that is a “service recipient” defined as “a person engaged in a trade or business who pays an individual for services rendered in the course of such trade or business” must report all new hires and re-hires to the State’s database. Additionally, employers must report their independent contractors who are paid $600 or more during a calendar year.

 

The purpose of the statute is to provide information to the Florida Child Support Program to facilitate the collection and disbursement of child support payments and to monitor and enforce child support payments. The statute, however, is silent regarding penalties for failing to report. That said, employers with less than 250 employees should update their onboarding process to include the new reporting requirements and all employers regardless of size should determine whether reporting requirements exist for any independent contractor used by them, update onboarding policies to reflect the changes in the law and provide training for those who perform onboarding and payroll, so they are aware of these changes.

by Ned Bassen, Jamie B. Dokovna ( Learn more click our V Cards )

   

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“Community Associations Affected by the 2021 Legislative Session Part X,” News-Press

“Community Associations Affected by the 2021 Legislative Session Part X,” News-Press

  • Posted: Oct 26, 2021
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Our attorneys are thought leaders in their field who keep our clients updated on the latest developments in their areas of interest. Explore our robust library of articles, blog posts, guidebooks, media commentary, and news.

 

“Community Associations Affected by the 2021 Legislative Session Part X,” News-Press

This week continues our review of the 2021 legislative changes affecting Florida community associations focusing on two bills that address COVID-19 pandemic legal issues.

Senate Bill 72 took effect on March 29, 2021. This law was initially reported in this column on April 25, 2021. SB 72 outlines the legal process a plaintiff must follow to bring a claim based on an alleged COVID-19 infection from the defendant’s premises. The new law creates several legal hurdles for a plaintiff seeking damages, including the requirement that the complaint (initial lawsuit filing) be accompanied by an affidavit signed by a physician licensed in the State of Florida stating the physician’s belief within a reasonable degree of medical certainty that the plaintiff’s COVID-19 injury was the result of the defendant’s acts or omissions.

The statute requires that the court first hold an evidentiary hearing to determine whether the defendant made a good faith effort to comply with public health standards. If the court finds that the defendant did make such a good faith effort, the defendant is immune from liability.

If the court determines that the defendant did not make a good faith effort, the plaintiff may proceed with the lawsuit, but the plaintiff must show that the defendant committed gross negligence in order for the defendant to be held liable. Gross negligence is a much higher standard than is required in most civil lawsuits.

Senate Bill 2006 became effective July 1, 2021. Section 252.36 of Florida Statutes, which deals with the emergency management powers of the Governor, was amended to provide that an executive order, proclamation, or rule establishing a state of emergency must be limited to a duration of not more than 60 days and may be renewed as necessary during the duration of the emergency. If renewed, the order, proclamation, or rule must specifically state which provisions are being renewed. Further, at any time, the Legislature, by concurrent resolution, may terminate a state of emergency or any specific order, proclamation, or rule thereunder. Upon such concurrent resolution, the Governor shall issue an executive order or proclamation consistent with the concurrent resolution.

Section 252.38(4) of the Florida Statutes addresses emergency orders imposed by political subdivisions, meaning local governments such as counties, cities, towns, and villages. Local orders issued in response to hurricanes or other weather-related emergencies are not covered by this law. The new law vests the Governor with power, at any time, to invalidate an emergency order issued by a political subdivision if the Governor determines that such order unnecessarily restricts individual rights or liberties. The law grants broad discretion to the Governor in determining what local orders “unnecessarily restrict individual rights or liberties.” Obviously, these changes were the result of the plethora of sometimes complicated and occasionally contradictory local orders regarding COVID-19, especially during the early phases of the pandemic.

New Section 381.00316 of the Florida Statutes, states that a “business entity” may not require “patrons or customers” to provide any documentation certifying COVID-19 vaccination or post-infection recovery to gain access to, entry upon, or service from the entity’s business operations. The law does not otherwise restrict instituting screening protocols consistent with authoritative or controlling government-issued guidance to protect public health.

The term “business entity” includes not-for-profit corporations and would therefore include community associations. However, there is substantial debate whether the new prohibition against “vaccine passports” applies to owners, residents, or others in a community, specifically whether such persons are “customers” or “patrons.” If an entity violates the statute, the Department of Health may impose a fine not to exceed $5,000.00 per violation.

 

Joseph Adams is a Board Certified Specialist in Condominium and Planned Development Law, and an Office Managing Shareholder with Becker & Poliakoff. Please send your community association legal questions to jadams@beckerlawyers.com. Past editions of the Q&A may be viewed at floridacondohoalawblog.com.

 

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“The Great Resignation: A New Idea for Keeping Employees On the Job,” Human Resources Executive by Becker

“The Great Resignation: A New Idea for Keeping Employees On the Job,” Human Resources Executive by Becker

  • Posted: Oct 16, 2021
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“The Great Resignation: A New Idea for Keeping Employees On the Job,” Human Resources Executive

Ned Bassen / Becker 

By now, it appears well-established that employers generally may require COVID-19 vaccines for employees returning to work and may ask employees physically entering the workplace if they have been diagnosed with or tested for COVID-19. Employers also may require employees to come to work post-pandemic for legitimate nondiscriminatory reasons.

With the return to work looming, while many employers are discussing a “hybrid” remote/in-office work combination future, some employers either want employees back to the office full-time or for larger periods of time than employees would like.

But, what are employers’ rights when employees, especially millennials, don’t want to come back to the office and want to instead continue working remotely for their organization?

Not everyone wants to return to the pre-pandemic, 9-5 office lifestyle.

How (and sometimes when) to bring employees back into the office is a vexing decision that employers are currently or soon to be facing, along with how to give employees flexibility.

One recent study found that a “whopping 58% of workers say they would “absolutely” look for a new job if they weren’t allowed to continue working remotely in their current position.

The U.S. Department of Labor has reported that workplace resignations set a 20-year record in April 2021, with 4 million employees quitting their jobs. The global employment website Monster has said that 95% of employees are considering changing their jobs. (Read more on that here.)

Resigning employment has now reached such a new high level that quitting work post-pandemic has been labeled “The Great Resignation of 2021.”

What should employers do to ease the burden from employee departures when there will be difficulty finding qualified replacements?

To view the complete article, please click here.


 

For over 45 years, Ned Bassen has honed his expertise in labor and employment law. He is well-versed in litigating on behalf of and counseling defense contractors, financial institutions, universities and other nonprofit institutions and representing individuals accused of wrongdoing in connection with employment. His defense in such matters has included bankruptcy, employment discrimination, unlawful competition, poaching, corporate raiding, misappropriation of trade secrets, non-competes and other restrictive covenants, false claims, employment defamation and arbitration in the U.S. and internationally.

To learn more about Ned, please click here.

 

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Becker provides a variety of resources to help our community association board members, managers, and owners thrive.

Becker provides a variety of resources to help our community association board members, managers, and owners thrive.

  • Posted: Oct 08, 2021
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Becker provides a variety of resources to help our community association board members, managers, and owners thrive. From educational classes to a leading industry blog and podcast, informative videos, and other ancillary services and products geared exclusively to community associations, we’re here to help you navigate the complexities of community living.

 

As leaders in Community Association Law, we not only helped write the law – we also teach it.
Becker’s robust continuing education program provides over 200 classes per year on a variety of topics ranging from board member certification to compliance, and everything in between.

Our most popular classes are now available online!

 

Community Association Industry Trailblazers: Becker Continues to Deliver Cutting-Edge Technologies

Your Site. Your Way. Same Day! Provide owners with easy access to association documentation with this legally compliant website management solution.

 

Seamlessly facilitate and increase member participation in important votes with this easy-to-use, secure voting software solution that’s compliant with state law.

 

 

 

Annual Retainer Benefits

  • Preferred Hourly Billing
  • Annual Meeting & Election Notice Packages
  • Preferred Pricing for BeckerBALLOT.com
  • Exclusive Access to MyCommunitySite.com Discounts
  • Online Collections Status Reporting Portal
  • Community Association Leadership Lobby (CALL) Membership
  • First access to Becker’s Community Association Guidebook Series

For more information on becoming an annual retainer client, please call 954.987.7550.

 

 

 

 

 

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Absentee Owners and Unoccupied Condominium Units by Becker

Absentee Owners and Unoccupied Condominium Units by Becker

  • Posted: Oct 05, 2021
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Absentee Owners and Unoccupied Condominium Units

 

In condominium associations throughout the state, it is common for there to be seasonal unit owners who leave their units unoccupied during portions of the year. For associations faced with periodically unoccupied units in multifamily condominium buildings, there are distinct legal issues worth considering in advance of problems arising.

Florida’s Condominium Act (the “Act”) does not require absentee unit owners to have their unoccupied units periodically inspected for damage or deterioration. To overcome the absence of a statutory requirement, associations may adopt amendments to their declaration of condominium so that such inspection requirements are enacted to avoid problems originating in unoccupied units going undetected and/or unreported for long periods. Additionally, while the Act authorizes associations to “operate” association-installed hurricane protections to guard against damage to the condominium property, it does not require such protection to be installed. Therefore, it may be prudent to require all unit owners, including but not limited to absentee owners, to install such protection. To incentivize compliance, Section 718.111(11)(j), Florida Statutes provides that the responsibility for damages not paid for by insurance proceeds is shifted from the association to unit owners when such damages result from the unit owners’ failure to comply with the association’s declaration or rules.

The Act provides associations with an irrevocable right of access to enter units when necessary to undertake maintenance of common elements, and as necessary to prevent damage to common elements or to a unit. Associations should ensure that their documents or rules require a working key to all exterior doors and/or that contact information for local persons caring for unoccupied units be provided to the association. It is not recommended for an association to wait until an emergency arises before first contemplating how it will gain access to unoccupied units.

Fortunately, this subject is one that most association law practitioners have addressed in one manner or another. Condominium associations that find themselves concerned about unoccupied units are encouraged to discuss this with legal counsel so that a strategy for dealing with such units may be developed.

 

   Read and Learn through a wealth of Informative Articles Provided by Becker Lawyers and Partners.  https://www.floridacondohoalawblog.com/category/insight/

And don’t forget:  BeckerBALLOT.com  When your Community has a VOTE and you need simply the best way for everyone to be involved!

Once your Board adopts a Resolution which offers an online voting system option for your members, those members consenting to vote online will be invited to register and vote using BeckerBALLOT.

Your association will be asked to provide a roster of eligible voters (members who have consented) to BeckerBALLOT.

Eligible voters will be invited to activate their account online and vote!

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Should Condominium Associations Be Permitted to Invest Operating & Reserve Funds? SB 1490 Says Yes!

Should Condominium Associations Be Permitted to Invest Operating & Reserve Funds? SB 1490 Says Yes!

  • Posted: Sep 27, 2021
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Should Condominium Associations Be Permitted to Invest Operating & Reserve Funds? SB 1490 Says Yes!

For years there have been significant legal constraints on a condominium association’s ability to use reserve funds. In addition to the statutory requirement to obtain membership approval for non-designated reserve usage, the prevailing school of thought was that association funds could not be invested since investments can and do fail.

A newly filed bill by Senator Jason Pizzo, SB 1490, could create a significant change in terms of an association’s ability to invest the community’s operating and reserve funds in depositories other than a traditional bank or savings and loan.

The bill provides as follows:

“Unless otherwise prohibited in the declaration, and in accordance with s. 718.112(2)(f), an association, including a multicondominium association, may invest any funds in one or any combination of investment products described in this subsection.”

If this bill passes and an association invests funds in any type of investment product other than a depository account, the association must meet all of the following requirements:

The board shall annually develop and adopt a written investment policy statement and select an investment adviser who is registered under s. 517.12, F.S. and who is not related by affinity or consanguinity to any board member or unit owner. Any investment fees and commissions may be paid from the invested reserve funds or operating funds.

The investment adviser selected by the board shall invest any funds not deposited into a depository account in compliance with the prudent investor rule in s. 518.11, F.S. It is important to note that the statutory prudent investor rule is a test of conduct and not resulting performance. Under this statute, no specific investment or course of action is, taken alone, considered prudent or imprudent. Instead, the investment adviser is deemed to be acting as a fiduciary and he or she may invest in every kind of property and type of investment, subject to that statute.

The fiduciary’s investment decisions are evaluated on the basis of whether he or she exercised reasonable business judgment regarding the anticipated effect on the investment portfolio as a whole under the facts and circumstances prevailing at the time of the decision or action. Although the proposed statute requires that funds invested be subject to insurance under the Securities Investor Protection Corporation, it is important to note that this insurance is only there if the brokerage firm fails, not if the investment turns out to be ill-advised and loses the association’s money.

The investment adviser shall act as a fiduciary to the association in compliance with the standards set forth in the Employee Retirement Income Security Act of 1974 at 29 U.S.C. s. 1104(a)(1)(A)-(C).

At least once each calendar year, the association shall provide the investment adviser with the association’s investment policy statement, the most recent reserve study report or a good faith estimate disclosing the annual amount of reserve funds which would be necessary for the association to fully fund reserves for each reserve item, and the financial reports.

The investment adviser shall annually review these documents and provide the association with a portfolio allocation model that is suitably structured to match projected reserve fund and liability liquidity requirements. There must be at least thirty-six (36) months of projected reserves in cash or cash equivalents available to the association at all times.

Portfolios managed by the investment adviser may contain any type of investment necessary to meet the objectives in the investment policy statement; however, portfolios may not contain stocks, securities, or other obligations that the State Board of Administration is prohibited from investing in under ss. 215.471, 215.4725, and 215.473, F.S. or that state agencies are prohibited from investing in under s. 215.472.

Lastly, the bill would exempt registered investment advisors from having their bids subjected to the competitive bidding requirements found in Section 718.3026, F.S. The companion bill to SB 1490 is HB 1005 (Killebrew/Fine).

As more associations change their old habits and begin to fund reserves, the allure of more aggressive investment vehicles for these funds, which can be substantial amounts, is undeniable. However, the risk is also undeniable. As such, if this bill becomes law and the investment of reserves becomes available, boards are strongly encouraged to take an extremely cautious, measured approach with reserves.

While investment of your association’s operating and reserve funds might result in a substantially better return than a savings account, you might also see significant losses. The investment of association funds must be done with careful consideration of the demographic in your community, the age of your buildings and facilities, the required liquidity of your funds and, most importantly, the sensitivities and risk tolerance of your membership all taken into account. If your members fuss about your board’s landscaping decisions imagine the potential fallout if you make the wrong investment decisions!

 

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Online voting system option for your members, those members consenting to vote online will be invited to register and vote using BeckerBALLOT.

Online voting system option for your members, those members consenting to vote online will be invited to register and vote using BeckerBALLOT.

  • Posted: Sep 24, 2021
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Online voting system option for your members, those members consenting to vote online will be invited to register and vote using BeckerBALLOT.

Eligible voters will be invited to activate their account online and vote!

 

The simplicity and security of our software makes BeckerBALLOT the perfect solution for you!

Use the software for board of directors votes, amendment of governing documents, waive reserves and approval of material alterations and more! Your members need to simply log in, cast their votes and be on their way.

 

 

VOTERS

If your association has joined BeckerBALLOT and you are ready to vote ONLINE, you are in the right place!

Your association has provided you with the ability to easily cast your vote and ensure that no matter where you are, you can participate in important association voting.  It’s fast, accurate and secure.  You’ll have the confidence in assuring your vote is counted, all without the necessity of filling out and mailing your paper ballot!

ADMINISTRATORS

BPBALLOT, the original electronic voting software is NOW BeckerBALLOT, a joint partnership between Becker & Poliakoff and SHYFT digital.

We offer an easy-to-use, secure electronic voting software solution that is compliant with state law. We provide the ability for members in condominiums, cooperatives and homeowner associations to cast their votes online.  You will be able to easily and seamlessly facilitate and increase member participation in important votes. All votes stay secure, anonymous and tracked for validity.

Once your Board adopts a Resolution which offers an online voting system for your members, members consenting to vote online may register and vote using BeckerBALLOT.com. Read the full electronic vote process here.

 

 

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Challenge Accepted: Becker & Coworks International Take on Return-To-Work

Challenge Accepted: Becker & Coworks International Take on Return-To-Work

  • Posted: Sep 21, 2021
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Challenge Accepted: Becker & Coworks International Take on Return-To-Work

The post-pandemic return to work is fraught with challenges – from ensuring the physical and mental well-being of employees and the safety of the actual workplace to attracting and retaining an empowered workforce who successfully maintained productivity without coming into the office for an entire year. Becker Shareholder and employment lawyer Jamie Dokovna invited Becker Managing Shareholder Gary C. Rosen and Coworks International Founder & President Shirley Arline to discuss the future of work and how business leaders can help protect both their people and profitability.

“We all need to recognize that we are embarking upon an experiment, and we have to be openminded about the prospect of adjustments in order to do what’s right for our people and our organization,” said Rosen. “It is critical that whatever any organization does [traditional, hybrid, or remote-only], it needs to be organic and natural to that organization.”

A recent survey¹ showed that 70% of all employees would like companies to normalize working from home and include it as part of a work-week that also featured a few traditional 9-5 in-the-office days. In the same survey, 20% of the responders said they’d be happy never coming back to the office.

“There are still quite a few apprehensions about how to manage [the return to work] in a way that allows employees to feel safe and comfortable,” said Arline. “There are genuine fears among employers and employees about potential exposure; the need for flexibility becomes overriding.”

While the EEOC has declared mandatory vaccination policies permissible (with exemptions being made for religious reasons or chronic health issues)², many companies are uncomfortable with that approach, opting instead to offer incentives – cash prizes for those who prove their vaccination, additional paid time off to get vaccinated – and to promote the value of vaccinations through education and anecdotal evidence provided by COVID-19 survivors or families of those who succumbed to the disease.

“We don’t want to lose good employees,” said Rosen. “We want to be responsive and flexible, but, as a business, we need to have a policy in place that people see implemented uniformly.” Arline continued, “Employers are trying to protect employees from contracting COVID and from other employees who do not want to be vaccinated.”

But safety of the workplace is not the only priority for employers.

“There is a lot of concern about the social and psychological adjustment of employees who have been out for quite a while,” said Arline. “We’ve had a significant increase in requests for EAPs to deal with the mental health impact of the pandemic.”

EAPs, employee assistance programs, are work-based intervention options designed to assist employees in resolving personal problems that may be adversely affecting the employee’s performance. EAPs traditionally assist workers with issues like alcohol or substance abuse; however, most now cover a broad range of issues such as child or elder care, relationship challenges, financial or legal problems, wellness matters and traumatic events like workplace violence. Programs are delivered at no cost to employees by stand-alone EAP vendors or providers who are part of comprehensive health insurance plans.³

“At the beginning of the pandemic, we had some employees who experienced acute stress, and I am very thankful that they reached out to our HR department,” said Rosen. “Sometimes small problems, if left unattended, can become larger issues and then migrate to crisis proportion. [Becker] does its best to provide an outlet for people to speak to a psychologist or mental health professional with no stigma attached.”

In addition to physical and mental health concerns, employers are also facing disruptions in recruiting and retention of employees.

“[Recruiting] has become a big challenge for employers,” said Arline. “Candidates are asking about the COVID protocols in place, setting very specific terms under which they will consider employment with an organization. I’ve gotten complaints from employers about the fact that they are losing control of the recruiting process and it’s very much in the hands of the candidates.”

The 2020 lockdown has also changed the rules of retention, since that year provided employees time to reflect on the direction of their career and review their professional goals. Many have made the decision to choose a completely different field – a risk that most would not have considered pre-pandemic – or leave the workforce altogether. Pundits have predicted a ‘turnover tsunami’ for the end of 2021, and all businesses are evaluating how to avoid losing quality employees by striking the right balance between a flexible workday and a guaranteed work product or service.⁴

“There isn’t a playbook for the pandemic,” said Dokovna. “Nobody is ahead of anyone else; we’re all figuring this out in real time.”

To watch the entire discussion, please click here.

 

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Becker Launches Interdisciplinary Sea Level Rise Advisory Team to Serve Florida’s Coastal Residents

Becker Launches Interdisciplinary Sea Level Rise Advisory Team to Serve Florida’s Coastal Residents

  • Posted: Sep 21, 2021
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Becker Launches Interdisciplinary Sea Level Rise Advisory Team to Serve Florida’s Coastal Residents

As one of the first law firms in Florida to address the legal issues stemming from sea level rise, Becker is excited to announce its interdisciplinary Sea Level Rise Advisory Team which includes experienced and knowledgeable lawyers ready to assist our clients in preparing for the future.

Our multifaceted team is comprised of specialists at the forefront of this emerging area of environmental law. This includes attorneys and government relations professionals across our Land Use & Zoning, Government Law & Lobbying, Community Association, Real Estate, and Construction Law & Litigation practices.

Led by Ellyn Bogdanoff, the team provides a comprehensive range of services to address flooding and other impacts of sea level rise. In 2021, for example, Becker’s Government Law & Lobbying Practice was instrumental in helping to secure the passage of Florida’s “Always Ready” legislation which will provide more than $100 million every year to help Florida communities combat the effects of rising sea levels.

Flooding due to sea level rise is and will continue to be a big challenge, not just for those living on South Florida’s waterfront, but across the state. Local governments are realizing the significant impact of flooding and are combatting sea level rise by creating resiliency task forces and taking action to revise land use planning and zoning requirements and make upgrades to their stormwater infrastructure and sewage systems.

But it’s not only local officials that must have a plan to respond to rising seas, landowners, developers, condominium and homeowner associations, and everyone in between, must also be prepared for the impacts posed by sea level rise, and develop strategies to prepare their properties accordingly.

Becker’s Sea Level Rise Advisory Team is prepared to help clients mitigate damages from sea level rise, evaluate options to prepare for the short and long-term, and develop financially feasible adaptation strategies. To learn more, please visit FloridaRisingSea.com.

 

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Omnibus Bill (SB 630) Brings Changes for Florida Condos, Cooperatives and HOAs

Omnibus Bill (SB 630) Brings Changes for Florida Condos, Cooperatives and HOAs

  • Posted: Sep 09, 2021
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This year’s large community association omnibus bill will likely become law. This bill, which bears an effective date of July 1, 2021, contains changes which will impact condominiums, cooperatives and HOAs. At more than 100 pages, we will discuss only some of those changes in today’s CALL Alert. This bill, along with all the others CALL has been tracking throughout the 2021 Legislative Session, will be summarized in our year-end Legislative Guidebook.

 

Several of the Condominium changes include:

  • If a condominium association’s insurance policy does not provide rights for subrogation against the unit owners in the association, an insurance policy issued to an individual unit owner may not provide rights of subrogation against the condominium association. This will help prevent the rash of unfounded negligence claims against associations we’ve seen filed by at least one insurance company operating in Florida but may unfortunately result in increased premiums if subrogation against the culpable party in a loss is no longer possible.
  • Bids for work to be performed must be maintained for at least 1 year after receipt of the bid. Previously bids had to be maintained from the inception of the association.
  • A renter would have the right to inspect and copy only the declaration of condominium and the association’s bylaws and rules. Previously, a renter was only allowed to inspect and copy the Bylaws and rules.
  • An association may not adopt rules requiring a member to demonstrate any purpose or state any reason for a record inspection.
  • For condominiums with 150 or more units, an association, in lieu of posting copies of certain required documents to a website, may make those documents available through an application that can be downloaded on a mobile device.
  • Condominium associations may extinguish a discriminatory restriction in the governing documents (e.g., a provision which restricts ownership, occupancy or use of real property on the basis of race, color, national origin, religion, gender or disability) by board vote alone.
  • Confirms that board term limits are intended to be prospective with the service start date being on or after July 1, 2018.
  • Transfer fees will be increased to not exceed $150.00 (from the current $100.00 cap) and may be adjusted every 5 years in accordance with the Consumer Price Index (CPI).
    • Petitioners in recall disputes may now choose to either go directly to court with the dispute or to arbitration.
  • Contracts with a service provider that is owned or operated by a board member (or certain relatives with a financial relationship) are no longer prohibited.
  • The board may not prohibit the installation of a natural gas fuel station, and unit owners installing such stations must comply with all federal, state, and local laws.
  • A board may make available, install, or operate an electric vehicle charging station or a natural gas fuel station on the common elements or association property and establish the charges or the manner of payments by the unit owners, residents, or guests who use such stations. The station installation, repair, or maintenance will not constitute a material alteration or substantial addition to the common elements or association property.
  • Labor performed on or materials furnished for the installation of a natural gas fuel station or electric vehicle charging station may not be the basis for filing a lien against the association.
  • A challenge to a plan of termination may be handled via arbitration or mediation of the dispute.
  • This new law would allow the parties in a condominium dispute to now choose either presuit mediation (which has been used in HOA disputes) or arbitration through the Division of Condominiums, Timeshares and Mobile Homes (“Division”).
  • For election and recall disputes, mediation will not be an option, and such disputes must be arbitrated by the Division or filed in court.
  • The board can use emergency powers in response to damage or injury caused by or anticipated in connection with any occurrence, or threat thereof, whether natural, technological, or manmade, in war or in peace, which results or may result in substantial injury or harm to the population or substantial damage to or loss of property. This language was expanded to include emergencies caused by contagion.
  • The board may exercise its emergency powers to conduct board meetings, committee meetings, elections, and membership meetings, in whole or in part by telephone, real-time videoconferencing, or similar real-time electronic or video communication with notice given as is practicable.
  • Such notice may be given in any practicable manner, including publication, radio, US mail, the internet, electronic transmission, public service announcements, and conspicuous posting on the condominium property or association property or any other means the board deems reasonable under the circumstances.
  • Based upon advice of emergency management officials or public health officials, or upon the advice of licensed professionals retained by or otherwise available to the board, determine any portion of the condominium property or association property unavailable for entry or occupancy by unit owners, family members, tenants, guests, agents, or invitees to protect the health, safety or welfare of such persons.
  • The board may mitigate further damage, injury or contagion, including taking action to contract for the removal of debris and to prevent or mitigate the spread of fungus or contagion. This section may be used to justify heightened sanitation protocols.
  • The board can contract, on behalf of any unit owner or owners, for items or services which are necessary to prevent further injury, contagion, or damage, including, without limitation, sanitizing the condominium property or association property.
  • The emergency powers are limited to that time reasonably necessary to protect the health, safety, and welfare of the association and the unit owners and the unit owners’ family members, tenants, guests, agents, or invitees and shall be reasonably necessary to mitigate further damage, injury, or contagion and make emergency repairs.
  • Most importantly, when it comes to the changes to the emergency powers provisions in 718.1265, F.S., an association may NOT prohibit owners, tenants, guests, agents, or invitees of a unit owner from accessing the unit and common elements and limited common elements appurtenant thereto for if such access is needed to facilitate the sale, lease or other transfer of title to the unit. Presumably this language was included at the urging of the real estate industry because many associations restricted open houses and other in person showings of property during the height of the COVID-19 pandemic as well as in move-ins and move-outs in some cases.
  • Specifies that fines are due 5 days after notice of the approved fine is provided to the unit owner and, if applicable, to any tenant, licensee or invitee of the unit owner. Previously, fines were due 5 days after the date of the Fining Committee meeting at which the fine was approved.
  • Multicondominium associations may adopt consolidated or combined declaration of condominium but cannot merge the condominiums or change the legal descriptions of the condominium parcels, unless accomplished in accordance with law. This change applies to associations existing on July 1, 2021.
  • Expands the Division’s jurisdiction to now investigate complaints related to the maintenance of association records.

Several of the Cooperative changes include:

  • The definition of “Unit” is amended to state that “an interest in a unit is an interest in real property”.
  • The association may not require a member to demonstrate any purpose or state any reason in order to inspect the official records.
  • A board or committee member participating in a meeting via telephone, real-time video conferencing, or similar real-time electronic or video communication counts towards a quorum and such member may vote as if physically present.
  • The Petitioner in a recall dispute may choose to either go directly to court or to pursue arbitration with the Division.
  • Cooperative associations may extinguish a discriminatory restriction in their governing documents by Board vote alone. See the definition of a discriminatory restriction in the Condominium section above.
  • The same changes to the emergency powers language discussed above in Chapter 718 are also set forth in Chapter 719, F.S.

Several of the HOA changes include:

  • The definition of Governing Documents will no longer include Rules and Regulations.
  • In addition to the authorized means of providing notice of a board meeting, the association may also adopt a rule for posting the meeting notice and agenda on the association’s website or an application and must send an electronic notice including the hyperlink to the website or application to members whose e-mail addresses are included in the association’s official records.
  • The association must maintain for at least 1 year after the date of the election, vote, or meeting the ballots, sign-in sheets, voting proxies, and all other papers and electronic records relating to the parcel owners’ voting.
  • Information obtained in a gated community in connection with guests’ visits to parcel owners or community residents are records not accessible to members or parcel owners.
  • Reserves will only be considered mandatory if they are approved by a majority of the total voting interests or if the declaration, articles or bylaws obligate the developer to create reserves.
  • If the budget does not provide for reserve accounts under Section 720.303(6)(d), or the declaration, articles or bylaws do not obligate the developer to create reserves, and the association is responsible for the repair and maintenance of capital improvements that may result in a special assessment if reserves are not provided or are not fully funded, each financial report for the preceding year must contain certain disclosure language in conspicuous type.
  • The Petitioner in a recall dispute may choose to go directly to court or pursue arbitration with the Division.
  • Specifies that fines are due 5 days after notice of the approved fine is provided to the parcel owner and, if applicable, to any tenant, licensee or invitee of the parcel owner.
  • Removes the requirement that notices required by Section 720.306, Florida Statutes, be sent to the address on property appraiser’s website-notices only have to be sent to the mailing addresses found in the official records of the association.
  • Transports over the grandfathering of rental rights which has been in the Condominium Act for many years to the HOA Act. Any governing documents or amendments that prohibit or regulate rental agreements will apply only to owners who acquire 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. Existing owners who vote “no” or don’t vote on the rental restriction will not be governed by same. This restriction, however, does NOT apply to amendments or governing documents which seek to prohibit or regulate rentals for terms of less than six (6) months or to limit parcel rentals to no more than three (3) times per year. It will be important for HOAs with more than 15 parcels (this grandfathering of rental rights does not apply to associations with 15 or fewer parcels) who wish to impose other rental restrictions to do so before July 1 if they wish those restrictions to apply to all members.
  • For purposes of determining the applicability of a rental amendment or rental restriction, a change in ownership does not occur when a parcel owner conveys the parcel to an affiliated entity, when beneficial ownership of the parcel does not change, or when an heir becomes the parcel owner.
  • The Petitioner in an election or recall dispute now has the option to file for arbitration or file in court. These disputes are not eligible for presuit mediation.
  • Clarifies that turnover of control of an HOA will be triggered three months after 90 percent of the parcels in all phase of the community that will ultimately be operated by the homeowners’ association have been conveyed to members other than the developer.
  • HOA boards may extinguish a discriminatory restriction in their governing documents by board vote alone. See the definition of a discriminatory restriction in the Condominium section above.
  • The same changes to the emergency powers language discussed above in Chapters 718 and 719 are also being added to Chapter 720, F.S.

The foregoing are just some of the changes this bill creates for your association operations. Florida’s Legislative Session is scheduled to end on April 30th. Stay tuned for additional CALL Alerts and as promised, our comprehensive Legislative Guidebook.

 

DONNA DIMAGGIO BERGER

Contact: dberger@beckerlawyers.com

Donna DiMaggio Berger is a member of the College of Community Association Lawyers (CCAL), a prestigious national organization that acknowledges community association attorneys who have distinguished themselves through contributions to the evolution or practice of community association law and who have committed themselves to high standards of professional and ethical conduct in the practice of community association law. Ms. Berger is also one of only 129 attorneys statewide who is a Board Certified Specialist in Condominium and Planned Development Law.

 

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Can Remote Meetings Be Held Now That the State of Emergency Has Expired?

Can Remote Meetings Be Held Now That the State of Emergency Has Expired?

  • Posted: Sep 08, 2021
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Can Remote Meetings Be Held Now That the State of Emergency Has Expired?

The “state of emergency” that had been imposed by Governor DeSantis in light of the COVID-19 pandemic expired on June 26, 2021.  As a result, the “emergency powers” given to condominium, cooperatives, and homeowners’ associations in Sections 718.1265, 719.128, and 720.316, Florida Statutes, respectively, are no longer in effect.  The emergency powers that were in effect during the COVID-19 state of emergency included conducting board meetings and membership meetings with notice given as is practicable, but did not specifically give associations the authority to conduct meetings remotely.  Nevertheless, many associations did hold meetings remotely in an effort to slow the spread of the virus and to protect its residents and employees.  (NOTE:  The emergency powers statutes were amended effective July 1, 2021, and now specifically provide that during a declared state of emergency, the association may conduct board meetings, committee meetings, elections, and membership meetings, in whole or in part, by telephone, real-time videoconferencing, or similar real-time electronic or video communication.)

Now that the state of emergency has expired, what meetings can associations hold remotely, either in whole or in part?

With regard to board meetings, the statutes specifically address the board members’ participation by telephone or videoconferencing, but do not address whether owners may participate remotely or whether the owners can be required to participate remotely.  The statutes do provide that meetings of the board must be “open” to all owners.  If your board wishes to hold remote board meetings, the board can allow owners to also participate remotely in the same manner as the board members by giving the owners the call-in number or videoconference link.  The law is unsettled as to whether a remote only meeting is valid, as some owners may not have the capability or desire to participate remotely.

With regard to owner meetings, the statute governing corporations not-for-profit, Section 617.0721(3), Florida Statutes, provides that owners and proxyholders may participate remotely and can also vote remotely if authorized by the board of directors, and subject to such guidelines and procedures as the board may adopt.  But as with Board meetings, none of the statutes indicate whether “remote only” meetings, which require the owners to participate remotely, are valid. (Note that this type of “remote voting” contemplated by Section 617.0721(3) is different than the electronic/online voting that is permitted by Sections 718.128, 719.129, and 720.317, Florida Statutes).

For owner meetings at which an election will be held, the issue is more difficult.  The Condominium and Cooperative Acts require owners to vote by “secret ballot” and many homeowners’ associations governing documents also have a secret ballot requirement.  In that case, an owner participating remotely would be unable to vote on the election of directors unless the owner voted in advance of the meeting or unless the association had authorized electronic/online voting pursuant to Sections 718.128, 719.129, and 720.317, Florida Statutes).  Further, in condominium and cooperative associations, the “election committee” that opens and counts the election ballots must be physically together, and owners are entitled to observe the ballot counting process in the owners’ “presence”.

Because of these legal issues, a “hybrid” approach where owners are given the option to participate remotely, but are not required to participate remotely, is the best approach.  Some meetings lend themselves to remote participate more than others.  For instance, board meetings and non-election owners’ meetings are the types of meetings that can be managed remotely.  However, if there is an election, there will need to be additional considerations.

Boards should discuss these issues with the association’s attorney so that all of the necessary board authorizations can be prepared and approved by the board.

 

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