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Statutory Limitation on Condominium Transfer Fees

Statutory Limitation on Condominium Transfer Fees

Statutory Limitation on Condominium Transfer Fees

A Reminder that the Limit is the Limit

Transfer fees are those fees an association may charge in connection with the sale or lease of a unit. There are significant differences between allowable transfer fees for homeowners’ associations as compared against condominium associations. When it comes to transfer fees for condominium associations, Florida law is patently clear – in no event may such a fee exceed $100 per applicant. In spite of this clear limitation, some condominium associations charge more than the statutory maximum, and doing so is not without significant consequence.

 

In fact, unit owners of a condominium association recently brought a successful class action lawsuit in Miami-Dade County against their condominium association that charged transfer fees beyond the statutory limit. That association now faces a significant financial impact from the suit. Not only must the association return the money charged over the statutory limit to each member of the class, the settlement stipulated that the association must pay $95,000.00 in attorney fees to the law firm representing the residents. The class period was from 2014 to 2019, and the association may end up paying over $200,000.00 to satisfy all the claims in the class. Yikes!

 

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Specifically, section 718.112(2)(i), Florida Statutes, provides that “no charge shall be made by a condominium association in connection with the sale, mortgage, lease, sublease, or other transfer of a unit unless i) the association is required to approve such transfer and ii) a fee for such approval is provided for in the declaration. In no event may such fee exceed $100 per applicant other than husband/wife or parent/dependent child, which are considered one applicant.” The law does allow the association to require a prospective lessee place a security deposit, not to exceed the equivalent of one month’s rent, into an escrow account maintained by the association.

 

It is important to note that the statute requires that the condominium’s declaration provide authority to the association to approve a transfer and to impose the transfer fee. If these powers are not granted in your declaration of condominium, the condominium association may not charge any transfer fee. If the declaration of condominium does provide for a transfer fee, then the association must abide by the statutory maximum.

 

It is not unheard of for more than one condominium association to attempt to circumvent the statutory limitation by changing the name of the fee. Some may call the charges “screening fees” or “move in fees,” but that does not change the fact that the fees are still legally considered transfer fees. Remember, the limit is the limit, regardless of whether the condominium association’s expenses in obtaining credit and criminal history reports exceeds the $100.00 limitation. Any condominium association charging more than the statutory maximum is violating the statute and opens itself up to liability. With the award of attorney fees, there is an incentive for attorneys to bring more cases challenging any transfer fees that violate the statute. Your condominium association could be liable for hundreds of thousands of dollars for charging improper transfer fees.

 

On the other hand, there is good news for homeowners’ associations, these statutory maximums only apply to condominium associations. However, homeowners’ associations are not without some statutory limitation. Section 689.28, Florida Statutes, declares that transfer fee covenants violate public policy by impairing marketability of real property. However, section 689.28(2)(c)7., Florida Statutes, does allow a homeowners’, condominium, cooperative, mobile home, or property owners’ association to charge a fee if the declaration allows such a charge. So, a homeowners’ association may only charge a transfer fee if the authority is granted to the association in the declaration. Just keep in mind, if your declaration specifies a set fee, your association is limited to the fee provided in the declaration.

 

Now is a good time for all board members to review their community’s governing documents and seek advice from the association’s lawyer as to whether any existing transfer fee complies with the statutory requirements. A simple check now can help your association avoid costly litigation in the future.

Article written by Jeff Rembaum of KBRLegal.com 
with permission for SFPMA to republish for our industry.

 

Kaye Bender Rembaum, Attorneys at Law

The law firm of Kaye Bender Rembaum, with its 19 lawyers and offices in Broward, Palm Beach and Hillsborough Counties, is a full service law firm devoted to the representation of more than 1,200 community and commercial associations, developers, and their members throughout the State of Florida. Under the direction of attorneys Robert L. Kaye, Michael S. Bender and Jeffrey A. Rembaum, the law firm of Kaye Bender Rembaum strives to provide its clients with an unparalleled level of personalized and professional service that takes into account their clients’ individual needs and financial concerns.

Thank You, SFPMA.COM

 

 

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HURRICANE SEASON IS HERE – IF YOU SUFFER A CASUALTY, YOU NEED TO KNOW ABOUT THIS NEW LAW

HURRICANE SEASON IS HERE – IF YOU SUFFER A CASUALTY, YOU NEED TO KNOW ABOUT THIS NEW LAW

HURRICANE SEASON IS HERE – IF YOU SUFFER A CASUALTY, YOU NEED TO KNOW ABOUT THIS NEW LAW

A good reason why society provides for prevailing party attorney fees and costs is to make a potential plaintiff think twice before filing a lawsuit. Imagine being able to sue your adversary in court without worry that if you lose you will NOT have to pay prevailing party attorney fees and costs to the other side. Such a situation could lead to an avalanche of lawsuits, and that is exactly what happened when Florida laws permitted contractors holding an “assignment of benefits” in their favor, who were unhappy with the award from the insurance company, to sue the insurance company with nothing to lose but to pay for their own attorney. Simply put, an assignment of benefits is an agreement transferring a homeowner’s insurance benefits to a contractor who may then file a claim against the homeowner’s insurance policy without the involvement of the homeowner. Notwithstanding the assignment of benefits, the homeowner is still responsible to pay the insurance premium and deductible. If the contractor then makes a claim against the insurance policy and is unhappy with the insurance proceeds received, the contractor can sue the insurance company with no threat of having to pay prevailing party attorney fees if the contractor lost its lawsuit against the insurance company. Without the fear of a prevailing party attorney fees award, these types of lawsuits became very prevalent. Insurers claim that this led to ever increasing insurance premiums. Not anymore!

 

Due to the passage of House Bill 7065 (“HB 7065”), officially taking effect on July 1, 2019, consumers may begin to notice a decrease in their insurance premiums as HB 7065 creates liability for the contractor for attorney fees and costs based upon the difference between the amount recovered and the amount offered during settlement negotiations as compared to the disputed amount. When HB 7065 takes effect, if the contractor holding the assignment of benefits sues and the difference between the judgment obtained by the contractor and the presuit settlement offer by the insurer is less than 25% of the disputed amount, the insurer is entitled to an award of reasonable attorney fees. On the other hand, if the difference between the judgment obtained by the contractor and the presuit settlement offer by the insurer is at least 50% of the disputed amount, the contractor is entitled to an award of reasonable attorney fees. Finally, if the difference between the judgment obtained by the contractor and the presuit settlement offer by the insurer at least 25%, but less than 50%, of the disputed amount, no party is entitled to an award of attorney fees.

 

Insurers claim that the old system resulted in abuse of property insurance claims, as contractors were inflating repair costs and essentially operating without significant financial risk during insurance litigation, thus allowing contractors to assert numerous claims in hopes that one would stick. As a result, insurance companies were left bearing the costs of these lengthy litigation’s, and thus, sought to recover their litigation expenses through the consumer – the homeowner – by increasing insurance premiums. While a homeowner is still able to enjoy the benefits of the one-way attorney fee privilege, this right is no longer transferable to the contractors through assignment of benefits. Clearly, this is a drastic change that will affect contractors around the entire State.

If you have any questions regarding the impact of this new law, please discuss them with your association’s attorney.

With hurricane season approaching, in the event you experience a casualty, before signing an assignment of benefits in favor of the contractor who shows up, often uninvited, not only do you need to read the fine print, but it is strongly suggested you have an attorney review the assignment of benefits contract first.

http://rembaumsassociationroundup.com/2019/06/19/hurricane-season-is-here-if-you-suffer-a-casualty-you-need-to-know-about-this-new-law/

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Legal Sponsors of SFPMA  with offices in Pompano Beach, Palm Beach and Tampa Florida.


EMERGENCY POWERS  

HOMEOWNERS’ ASSOCIATIONS

 

720.316 Association emergency powers.—

(1) To the extent allowed by law, unless specifically prohibited by the declaration or other recorded governing documents, and consistent with s. 617.0830, the board of directors, in response to damage caused by an event for which a state of emergency is declared pursuant to s. 252.36 in the area encompassed by the association, may exercise the following powers:

(a) Conduct board or membership meetings after notice of the meetings and board decisions is provided in as practicable a manner as possible, including via publication, radio, United States mail, the Internet, public service announcements, conspicuous posting on the association property, or any other means the board deems appropriate under the circumstances.
(b) Cancel and reschedule an association meeting.
(c) Designate assistant officers who are not directors. If the executive officer is incapacitated or unavailable, the assistant officer has the same authority during the state of emergency as the executive officer he or she assists.
(d) Relocate the association’s principal office or designate an alternative principal office.
(e) Enter into agreements with counties and municipalities to assist counties and municipalities with debris removal.
(f) Implement a disaster plan before or immediately following the event for which a state of emergency is declared, which may include, but is not limited to, turning on or shutting off elevators; electricity; water, sewer, or security systems; or air conditioners for association buildings.
(g) Based upon the advice of emergency management officials or upon the advice of licensed professionals retained by the board, determine any portion of the association property unavailable for entry or occupancy by owners or their family members, tenants, guests, agents, or invitees to protect their health, safety, or welfare.
(h) Based upon the advice of emergency management officials or upon the advice of licensed professionals retained by the board, determine whether the association property can be safely inhabited or occupied. However, such determination is not conclusive as to any determination of habitability pursuant to the declaration.
(i) Mitigate further damage, including taking action to contract for the removal of debris and to prevent or mitigate the spread of fungus, including mold or mildew, by removing and disposing of wet drywall, insulation, carpet, cabinetry, or other fixtures on or within the association property.
(j) Notwithstanding a provision to the contrary, and regardless of whether such authority does not specifically appear in the declaration or other recorded governing documents, levy special assessments without a vote of the owners.
(k) Without owners’ approval, borrow money and pledge association assets as collateral to fund emergency repairs and carry out the duties of the association if operating funds are insufficient. This paragraph does not limit the general authority of the association to borrow money, subject to such restrictions contained in the declaration or other recorded governing documents.
(2) The authority granted under subsection (1) is limited to that time reasonably necessary to protect the health, safety, and welfare of the association and the parcel owners and their family members, tenants, guests, agents, or invitees, and to mitigate further damage and make emergency repairs.
History.—s. 19, ch. 2014-133.

EMERGENCY POWERS  

CONDOMINIUM ASSOCIATIONS

 

718.1265 Association emergency powers.—

(1) To the extent allowed by law and unless specifically prohibited by the declaration of condominium, the articles, or the bylaws of an association, and consistent with the provisions of s. 617.0830, the board of administration, in response to damage caused by an event for which a state of emergency is declared pursuant to s. 252.36 in the locale in which the condominium is located, may, but is not required to, exercise the following powers:

(a) Conduct board meetings and membership meetings with notice given as is practicable. Such notice may be given in any practicable manner, including publication, radio, United States mail, the Internet, public service announcements, and conspicuous posting on the condominium property or any other means the board deems reasonable under the circumstances. Notice of board decisions may be communicated as provided in this paragraph.
(b) Cancel and reschedule any association meeting.
(c) Name as assistant officers persons who are not directors, which assistant officers shall have the same authority as the executive officers to whom they are assistants during the state of emergency to accommodate the incapacity or unavailability of any officer of the association.
(d) Relocate the association’s principal office or designate alternative principal offices.
(e) Enter into agreements with local counties and municipalities to assist counties and municipalities with debris removal.
(f) Implement a disaster plan before or immediately following the event for which a state of emergency is declared which may include, but is not limited to, shutting down or off elevators; electricity; water, sewer, or security systems; or air conditioners.
(g) Based upon advice of emergency management officials or upon the advice of licensed professionals retained by the board, determine any portion of the condominium 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.
(h) Require the evacuation of the condominium property in the event of a mandatory evacuation order in the locale in which the condominium is located. Should any unit owner or other occupant of a condominium fail or refuse to evacuate the condominium property where the board has required evacuation, the association shall be immune from liability or injury to persons or property arising from such failure or refusal.
(i) Based upon advice of emergency management officials or upon the advice of licensed professionals retained by the board, determine whether the condominium property can be safely inhabited or occupied. However, such determination is not conclusive as to any determination of habitability pursuant to the declaration.
(j) Mitigate further damage, including taking action to contract for the removal of debris and to prevent or mitigate the spread of fungus, including, but not limited to, mold or mildew, by removing and disposing of wet drywall, insulation, carpet, cabinetry, or other fixtures on or within the condominium property, even if the unit owner is obligated by the declaration or law to insure or replace those fixtures and to remove personal property from a unit.
(k) Contract, on behalf of any unit owner or owners, for items or services for which the owners are otherwise individually responsible, but which are necessary to prevent further damage to the condominium property. In such event, the unit owner or owners on whose behalf the board has contracted are responsible for reimbursing the association for the actual costs of the items or services, and the association may use its lien authority provided by s. 718.116to enforce collection of the charges. Without limitation, such items or services may include the drying of units, the boarding of broken windows or doors, and the replacement of damaged air conditioners or air handlers to provide climate control in the units or other portions of the property.
(l) Regardless of any provision to the contrary and even if such authority does not specifically appear in the declaration of condominium, articles, or bylaws of the association, levy special assessments without a vote of the owners.
(m) Without unit owners’ approval, borrow money and pledge association assets as collateral to fund emergency repairs and carry out the duties of the association when operating funds are insufficient. This paragraph does not limit the general authority of the association to borrow money, subject to such restrictions as are contained in the declaration of condominium, articles, or bylaws of the association.
(2) The special powers authorized under subsection (1) shall be 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 and make emergency repairs.
History.—s. 15, ch. 2008-28.

 


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BECOMING A PAPERLESS ASSOCIATION

BECOMING A PAPERLESS ASSOCIATION

BECOMING A PAPERLESS ASSOCIATION

by Enrolled Agent Steven J. Weil, Ph.D., EA, LCAM,
Royale Management Services, Inc.
Is it time your association did away with paper records? Paper records take up lots of space, are difficult to share and expensive to store, not to mention the fact that they often attract bugs and other vermin.
Digital records, on the other hand, allow nearly unlimited storage using little or no physical space. Combine this with easy back-up, ease of access and decreased probability of loss of records or mis”ling, and digital records can be very appealing. They are also easier to search, harder to change and can be easily protected from loss due to “re, $ood or other disasters via “cloud” back up. Computer data storage in the “cloud” is inexpensive or sometimes free, and it is encrypted for security. Files can be organized into folders and quickly and easily accessed. Best of all, digital records can be shared and still remain intact so that records are never missing.
The State of Florida is on board. Condominiums with 150 or more units are now required by law to maintain a website and to post a myriad of association documents on it that are accessible only by unit owners.
There are legal considerations in any transition to paperless. It’s a good idea to be sure that the Statutes and the association’s governing documents do not mandate the use of paper documents delivered by mail. Association documents are generally silent on the topic of digitized
records. In fact, they typically don’t even cover paper records since many were written when no other form of record keeping existed. In the absence of any reference to how records are to be maintained other than that they must be maintained, electronic records meet all the requirements.
Florida community associations are permitted to send membership meeting notices and certain board meeting notices to the owners electronically only if the association obtains the written consent of the subject owner.
Further, association business conducted by Board members via email must be retained since they may need to be accessed in the event of a lawsuit.
Association business should be conducted on a dedicated email account, and document storage should be handled with care.
Here at Royale Management, we have been digitizing our associations’ records for many years; and while we still have a few clients that have insisted on keeping paper records, we are in the process of converting those associations to digital records as well.

 

Royale Management Services, a registered and licensed community association management corporation in Florida, works with association Boards of Directors throughout South Florida to oversee the daily activities required for proper management, helping to educate them on their responsibilities, duties, and obligations. Royale’s team members are highly trained in all aspects of community association management and customer service to ensure that proper procedures are followed that keep the association in compliance with all of the rules governing elections, budgeting, accounting, operation, collection and assessment. The #rm and its president are members of the Community Association Institute (CAI),State of Florida Property Management Association (SFPMA) and the Fort Lauderdale Chamber of Commerce.
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HUD to Strengthen Landlords’ Rights in Service Animal

HUD to Strengthen Landlords’ Rights in Service Animal

  • Posted: Jun 15, 2019
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HUD to Strengthen Landlords’ Rights with Service Animals

Landlords and property managers are entitled to “reliable verification” of a tenant’s need for a service animal and can require proof beyond an online certification, a Department of Housing and Urban Development official said Tuesday at the REALTORS® Legislative Meetings & Trade Expo in Washington, D.C.

Lynn Grosso, director of HUD’s Fair Housing and Equal Opportunity Enforcement Office, told the Land Use, Property Rights & Environment Committee that a predatory cottage industry has developed for assistance animal certifications. Consumers are being misled to believe that an online verification letter—often provided by unlicensed medical professionals at a cost of a few hundred dollars—guarantees them the right to have an animal in multifamily housing regardless of pet policy, she added.

“HUD does not recognize these pay-to-play certifications as reliable,” Grosso said. “You should not feel held hostage by a policy where tenants don’t have to demonstrate in a reliable manner a legitimate need for the assistance of an animal.”

Grosso said HUD is developing new guidance that will address for the first time what “reliable verification” means as it pertains to tenants’ service animal requests. It’s not clear when the guidance, which is currently under federal review, will be released.

But Grosso offered some clarity to the committee Tuesday on the substance of the guidance. While landlords and property managers are legally prohibited from inquiring about the nature or severity of a tenant’s disability, they can express concern about the reliability of a service animal certification letter and provide steps for the tenant to take for further verification. This may include asking the tenant to provide additional documentation from their medical provider. The most reliable form of verification is a letter from a medical provider who has a history of treating the tenant, and the letter should name the tenant’s disability and the animal most qualified to assist him or her, Grosso said. “It’s best to have a policy on this issue rather than doing it on an ad hoc basis,” she added.

However, if you can “readily observe” that a tenant has a disability and an animal that provides a service, it’s wise not to push the issue of additional verification, Grosso said. She added that HUD’s forthcoming guidance also will address exotic animals such as alligators and the number of animals each individual tenant can request in their unit.

It’s important not to trivialize the issue of service animals because of abuses of the law, Grosso said. “Very often, there is some nefarious attribution to people who request assistance animals,” she said. “But many times, there are people with significant disabilities who legitimately need the assistance of a service animal. They bear the burden of the effects of service animal abuses.”

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Kaye Bender Rembaum, with offices in Pompano Beach and Palm Beach Gardens, has opened an office in Tampa and named Shawn Brown, Esq. as Managing Attorney.

Kaye Bender Rembaum, with offices in Pompano Beach and Palm Beach Gardens, has opened an office in Tampa and named Shawn Brown, Esq. as Managing Attorney.

  • Posted: May 10, 2019
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Community Association Law Firm Kaye Bender Rembaum

Opens Third Office in Florida

Shawn Brown, Esq. joins Firm as Managing Attorney of new Tampa office


 

SOUTH FLORIDA – Leading Florida association law firm Kaye Bender Rembaum, with offices in Pompano Beach and Palm Beach Gardens, has opened an office in Tampa and named Shawn Brown, Esq. as Managing Attorney.

“This is a tremendous opportunity for us to expand our footprint on the west coast,” said Robert Kaye, Esq., managing Firm member of Kaye Bender Rembaum. “Shawn shares our commitment for delivering exceptional service to our clients. His knowledge and experience will be an asset as we continue to build our presence in the Tampa market.”

Prior to joining Kaye Bender Rembaum, Brown was a partner in the law firm of Frazier & Brown and the law firm of Redding & Brown, both in Tampa.

Board Certified in Condominium and Planned Development Law by The Florida Bar, Brown is an active member of the Condominium and Planned Development Committee where he serves as chair of the Safe Harbor Subcommittee, is a member of the legislative review group and is tasked with reviewing and providing comments and edits to the legislation affecting community associations each legislative session. He also served as a member of the Auxiliary Committee, reviewing and editing different chapters in the 4th Edition of the Florida Condominium and Community Association Law published by The Florida Bar. Brown also sits on the Real Property Litigation Committee, where he is chair of the Judicial Litigation Support and Education Subcommittee, and the Problem Studies Committee of the Real Property, Probate and Trust Law Section of The Florida Bar.

“I am thrilled to join such a well-respected Firm with a proven track record of success in community association law,” said Brown. “I look forward to this opportunity and

growing our presence here with existing and new clients.”

Brown’s focus has been exclusively on the practice of all aspects of community association law and regularly practicing before the trial and appellate levels of state and federal courts, including arguing before the Florida Supreme Court and administrative agencies such as the Florida Division of Condominiums. He has extensive experience in all aspects of community association law and real estate law, representing condominium and homeowner associations and handling issues ranging from collection of assessments and foreclosures to covenant enforcement and litigation. He is routinely invited to provide both association boards of directors and community association managers with regular legislative and case law updates.

Brown also represents individuals in real estate transactions and litigation, devoting his practice to working with clients on a broad range of legal issues that community associations, property owners and buyers and sellers of real estate face on a regular basis.

A graduate of Stetson University and Stetson University College of Law, Brown was a recipient of the U.S. Senator Max Cleland scholarship and served as an intern to United States Senator Connie Mack in his Washington D.C. office while attending American University. He is a resident of Tampa.

The new Kaye Bender Rembaum office is located at 1211 N. Westshore Boulevard in Tampa.

Kaye Bender Rembaum is a full-service commercial law firm concentrating on the representation of more than 1,000 community associations throughout Florida. With offices in Broward, Hillsborough and Palm Beach counties, the Firm was recently presented with the 2019 Readers’ Choice Award for Legal Services by the Florida Community Association Journal, an award they’ve received annually since 2014. For more information, visit www.KBRLegal.com, call 954-928-0680 and follow the Firm on www.facebook.com/KayeBenderRembaum.

Members of SFPMA.Com – State of Florida Property Management Association  Pompano Beach OfficePalm Beach Office,

EmmaJean Livingston | Pierson Grant PR

6451 North Federal Highway, Suite 1200 Fort Lauderdale, FL 33308
T: 954.776.1999, ext. 242 | E: elivingston@piersongrant.com

 

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Does an HOA have to renew records for the entire community and for each homeowner

Does an HOA have to renew records for the entire community and for each homeowner

  • Posted: Jan 02, 2019
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We were asked a Question– In Broward County does an HOA have to renew our records for our entire community or just for each homeowner? 

Florida Department of Economic Opportunity

Revitalization of Expired Homeowners Association Declarations and Covenants

In 1963, the Florida Legislature enacted the Marketable Record Title Act (“the Act”), codified as Chapter 712, Florida Statutes. The Act was intended to simplify title searches by extinguishing old title defects and other recorded issues affecting title to real property after 30 years, except for certain matters (see Section 712.03, Florida Statutes – Exceptions to marketability).

An unanticipated consequence of the Act was that it extinguished the covenants of some planned communities, which suddenly found they had lost their legal authority to collect assessments and enforce the covenants. Since then, the Florida Legislature has amended the statutes to provide both a process to preserve the covenants before they are extinguished by the Act, and a process to reinstate them if they have already been extinguished or have expired.

Applicable Statutes

 

 

Revitalizing Expired / Extinguished Homeowner Association Declarations of Covenants

Chapter 720, Part III, Florida Statutes, creates a mechanism to revive / reinstate / revitalize (these terms are all used to mean the same thing) a declaration of covenants that has ceased to govern some or all of the parcels in a subdivision. Briefly, the process includes the following steps:

  1. Parcel owners within a community must create an organizing committee composed of not less than three community members.
  2. The organizing committee must prepare the declaration of covenants and, if necessary, updated governing documents for the homeowners association, which must then be approved by a majority of affected parcel owners.
  3. Next, the committee must send the proposed revived declaration and homeowners association governing documents to the Department of Economic Opportunity (DEO) at the following address:
    • Department of Economic Opportunity
    • Attn: Division of Community Development
    • 107 East Madison Street, MSC 160
    • Tallahassee, Florida 32399-4120
  4. DEO has 60 days to determine whether the documents comply with the requirements of Chapter 720, Part III, Florida Statutes, and issue a letter determination approving or denying the requested revitalization. It is not uncommon for DEO to complete its review and issue a letter approval or denial before the sixtieth day.
  5. If DEO approves the proposed revitalized declaration and homeowners association governing documents, the declaration of covenants, articles of incorporation and bylaws of the homeowners association, the DEO determination letter of approval, and a legal description of each affected parcel must be recorded with the Clerk of the Circuit Court in the county where the affected parcels are located within 30 days after the organizing committee receives DEO’s approval. The articles of incorporation must also be filed with the Department of State if they have not been previously filed. Immediately after recording, the organizing committee must provide copies of the recorded documents to the owners of all affected parcels.

Limited Role of DEO

As noted above, DEO’s role with regard to homeowners association covenants is limited to deciding whether documents proposing to revitalize expired/extinguished covenants that are submitted to DEO by an organizing committee comply with the requirements in Chapter 720, Part III, Florida Statutes. DEO has no authority to:

  • Extend the duration of homeowners association covenants that have not expired,
  • Deny approval of proposed revitalized covenants because of a dispute between a homeowners association and one or more of its members, including disputes in litigation,
  • Decide whether any of the lots in a subdivision are exempt from revitalized covenants,
  • Regulate homeowners associations,
  • Resolve complaints about homeowners associations, or
  • Provide legal advice.

If you need legal advice in connection with proposed revitalized homeowners association declarations, you may contact The Florida Bar’s Lawyer Referral Service at 1-800-342-8011, Monday through Friday, from 8:00 a.m. to 5:30 p.m. Eastern time, or through its website (The Florida Bar). The Florida Bar can provide you the names of attorneys in your area who may be able to assist you.

 

Frequently Asked Questions

What is Meant by “Verified Copies” and “Affidavits”

Part III of Chapter 720, Florida Statutes, states that “verified copies” and “affidavits” must be submitted to DEO as part of the covenant revitalization process.

Verified Copies

A “verified copy” means that someone has sworn under oath and in the presence of a notary public or other officer legally authorized to administer oaths that the copy is a true and accurate copy of the original document. When verified copies are required, a notarized letter from a member of the organizing committee or an officer of the homeowners’ association may be attached to the copies as verification that they are accurate copies. The letter should say that the person signing it verifies that the documents attached to the letter are accurate (or true and correct, or exact) copies of the original documents. If the documents are not attached to the letter, the letter must identify the specific documents to which it refers. Copies of the association’s governing documents that have been obtained from the official records of the county where the subdivision is located and have been certified as accurate by the Clerk of Court are also acceptable.

Affidavits

An “affidavit” is a written statement confirmed by the oath or affirmation of the person making it (the affiant), taken before a person having authority to administer such an oath or affirmation. In other words, it is a written statement that is signed and sworn to be true in the presence of a notary public or other official who is legally authorized to administer oaths. It must be signed by the person making it, and be signed by and bear the original stamp or seal of the notary/official.

 

How Do I Obtain Copies of My Homeowners Association Governing Documents and Covenants?

The governing documents for a subdivision and homeowners association consist of the declaration of covenants, the articles of incorporation, and the bylaws. The declaration of covenants for a subdivision is usually recorded in the Official Records of the Clerk of the Circuit Court for the county in which the subdivision is located. Copies of the Articles of Incorporation and bylaws of the homeowners association can be obtained from the Florida Department of State, Division of Corporations. Copies of the governing documents may also be obtained directly from the homeowners association.

 

Does the State of Florida Regulate Homeowners Associations?

No. Homeowners associations are required to comply with applicable Florida Statutes. However, they are not regulated by any state agency.

 

Who Handles Disputes / Complaints about Homeowners Associations?

Under Section 720.311, Florida Statutes, the Department of Business and Professional Regulation offers a dispute resolution program for some types of disputes between a homeowners association and parcel owners.

 

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Escaping The Towering Inferno – Condominium Fire Sprinkler Retrofit and Engineered Life Safety System Requirements

Escaping The Towering Inferno – Condominium Fire Sprinkler Retrofit and Engineered Life Safety System Requirements

  • Posted: Oct 05, 2018
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Escaping The Towering Inferno –

Condominium Fire Sprinkler Retrofit and Engineered Life Safety System Requirements

There appears to be some confusion surrounding the compliance date of the Engineered Life Safety System for those condominium associations that previously voted to opt out of the requirement to install condominium fire sprinkler retrofit. What is not confusing is that the safety of all occupants living in high-rise condominiums is paramount. No one wants to be responsible for death or injury caused by an incident that can be minimized with necessary precautions. How should the board of directors of a “high-rise” condominium balance the needs for fire safety against the considerable expense incurred in the implementation and installation of fire safety systems?

A high-rise building is a building where an occupiable floor is greater than seventy-five feet (75’) above the lowest level of fire department vehicle access. Pursuant to Florida law, condominiums that are considered high-rise buildings are required to have, or otherwise install, a fire sprinkler system, unless the condominium association had previously opted out, or is otherwise exempt, as further addressed below, by following the proper statutory protocol for which the deadline to do so has long since passed. However, for those high-rise condominiums that did successfully opt out, the association is still responsible for the installation of an Engineered Life Safety System (the “ELSS”).

A caveat, and for some condominium associations, a blessing, is that the fire sprinkler system (or ELSS) is not required if every unit in the condominium has exterior walkway access. Therefore, if the only access into the condominium unit is through an interior hallway, the condominium association would need to install a fire sprinkler system (or have already opted out and thereby need to comply with the requirements of the ELSS).

Section 718.112(2)(l), Florida Statutes, is quite clear on the requirements to install a fire sprinkler system, but the statute does not address the condominium association’s requirements for the implementation of the ELSS – that comes from the Florida Fire Prevention Code (the “FFPC”). The FFPC defines an ELSS as a system which contains any or all of the following systems:

1) partial automatic sprinkler protection,

2) smoke detection alarms,

3) smoke control,

4) compartmentation, and/or

5) other approved lifesaving systems.

An ELSS must be developed by a registered professional engineer experienced in fire and life safety system design and authorized by the local compliance authority. Typical examples of ELSS within a high-rise condominium building could be a partial fire sprinkler system that serves the common areas, fire and smoke alarms that are in compliance with the local fire authority standards, and fire proof walls, floors and corridors designed to prevent the flow of the fire and smoke throughout the condominium building.

As to any high-rise building required to install the automatic fire sprinkler system that did not opt out, the FFPC requires that any condominium that meets the definition of a high-rise building, must, by December 31, 2019, have installed the automatic fire sprinkler system. As to those who opted out, the exact date for ELSS compliance is anything but clear. The Condominium Act does not provide a date, and while the FFPC provides a clear deadline for the installation of the automatic fire sprinkler system, the FFPC does not patently provide a similar date for the installation of the ELSS. Some lawyers and fire safety professionals take the position that, because the ELSS is a substitute for the automatic fire sprinkler system, December 31, 2019 is, therefore, the ELSS compliance date. However, others may take the position that the lack of patent clarity in the FFPC means no deadline is provided.

Whether the local fire safety authorities will actually interpret and enforce the Florida Fire Prevention Code to require an ELSS approved plan, or ELSS completed installation by December 31, 2019 or even still, take the position that no ELSS deadline is provided at all is anyone’s guess. The answers might even vary by jurisdiction. What is clear is that:

  • The Florida legislature needs to address the ELSS compliance deadline to provide clarity for the betterment and safety of all of Florida’s high-rise communities; and
  • Any board member of a high-rise condominium association with questions regarding any of the issues addressed herein needs to consult with both their association’s legal counsel and with the local fire safety officials with jurisdiction for enforcement of the ELSS.

Jeffrey Rembaum, Esq. of Kaye, Bender, Rembaum attorneys at law, legal practice consists of representation of condominium, homeowner, commercial and mobile home park associations, as well as exclusive country club communities and the developers who build them. He is a regular columnist for The Condo News, a biweekly publication and Legal Writer for Florida Rising Magazine, was inducted into the 2012, 2013 & 2014 Florida Super Lawyers. He can be reached at 561-241-4462.

Re Published with Permission: JR / KBR Legal

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Three Kaye Bender Rembaum Attorneys Receive New Florida Bar Certification as Specialists in Condominium and Planned Development Law

Three Kaye Bender Rembaum Attorneys Receive New Florida Bar Certification as Specialists in Condominium and Planned Development Law

The law firm of Kaye Bender Rembaum announced that the Florida Bar has confirmed that three of its attorneys, founding and managing member Robert L. Kaye, firm member Andrew B. Black and senior associate Allison L. Hertz, are among the inaugural class of esteemed attorneys to be officially certified in the new area of Condominium and Planned Development Law. The new certification is effective as of June 1, 2018.


Robert L. Kaye, Andrew B. Black and Allison L. Hertz

Board certification is the highest level of recognition by the Florida Bar and recognizes attorneys’ special knowledge, skills and proficiency in various areas of law and professionalism and ethics in practice. Only certified attorneys may utilize terms such as “specialist,” “expert” and/or “B.C.S.” (Board Certified Specialist) when referring to their legal credentials. Board Certified Florida Bar Members are rigorously evaluated for professionalism and tested for their expertise in their areas of law. According to the Florida Bar, certification is the highest evaluation of attorneys’ competency. Attorneys must meet stringent application criteria before officially becoming certified, including satisfactory peer review as it relates to character, ethics and professionalism, satisfying the certification area’s continuing legal education requirements and passing a rigorous examination.

“For more than 30 years, I focused my practice on community association law. I am honored and proud to be recognized by the Bar for this high level of expertise in this area, as demonstrated by being awarded this certification,” said Kaye. “I am also proud of Allison and Andrew joining me among The Florida Bar’s inaugural class to receive this particular certification. We are pleased to not only offer our clients the high-quality legal services that they are accustomed to receive from all of our attorneys but to also have available board certified legal services in this area of law.”

Kaye, Black and Hertz are among the first lawyers obtaining the Condominium and Planned Land Development Law certification by the Florida Bar. They account for less than one percent (1%) of nearly 118,000 Florida lawyers. Thus far, only 127 lawyers obtained this certification. The Florida Bar website maintains a free online directory of all board certified attorneys, categorized by specialty area. Find it at FloridaBar.org/certification.

Kaye Bender Rembaum is a full-service commercial law firm concentrating on the representation of more than 1,000 community associations throughout Florida. With offices in Broward and Palm Beach counties, the Firm was recently presented with the 2018 Readers’ Choice Award for Legal Services by the Florida Community Association Journal, an award they’ve received annually since 2014. Members of State of Florida Property Management Association (SFPMA.com) For more information, visit www.KBRLegal.comcall 954-928-0680 and follow the Firm on www.facebook.com/KayeBenderRembaum.

 

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Pros and Cons of Living in an HOA Community

Pros and Cons of Living in an HOA Community

Pros and Cons of Living in an HOA Community

Pros:

  • The homeowners association pays for common areas like swimming pools, spas, tennis courts, parks, private roads, sidewalks and clubhouses you are able to enjoy a pool without having to maintain or clean it, or enjoy a playground or garden without the hassle of maintenance.
  • Some HOA’s also offer services like lawn maintenance to keep the neighborhood looking good all the time. You don’t have to hire someone yourself and your property always looks pristine.
  • Homes within HOA communities typically maintain their values better than non HOA deed restricted communities. By regulating the appearance of common areas your curb appeal and home price tend to be higher.
  • Often, HOAs promote a strong sense of community. Friends can gather at the clubhouse or common areas, people get to know their neighbors, and there are usually social functions planned year round.
  • Issues with neighbors like unwanted cars parked in front of your house are handled by the association, taking the pressure (and responsibility) off of residents.

 

Cons:

  • The price of your perfectly manicured lawns could be losing the freedom to choose your holiday decorations or the color of your house. There are rules and restrictions and the HOA documents can dictate what you can and cannot do in common areas.
  • A homeowner may encounter restrictions if they want to rent out their property. The association may require potential renters to be screened and approved by the HOA board, how much you charge for rent could also be regulated along with the duration of the rental. Some HOA’s ban rentals altogether.
  • The more amenities that are offered, the more the monthly dues can be. Sometimes the extra expense of monthly dues may more than some homeowners can afford.
  • Some HOAs are poorly managed by board members who don’t have enough time to devote to the community. Others too might be managed by a third party company (property manager) which can feel like giving up control of your neighborhood.

 

Before purchasing a property within an HOA or condo community it is very important that you find out how the association is run, how much the monthly association fees are, what the fees cover and how much money is in the reserve fund to cover any large expenses such as replacing a clubhouse roof. Always get a copy of the rules and regulations before you purchase so that you are completely aware of what you can and cannot do within the community. For example, if you purchase within a condo/townhouse community where there are zero lot lines, more than likely you won’t be able to touch the landscaping outside your home. If you are an avid gardener then this is definitely something you will want to consider before purchasing.

One thing that is a must is:  Education! Managers and Board Members can sign up via their Email Addresses we have Articles written by members that are sent weekly to our industry.

SFPMA and its members provide the industry with information, Events, Services, Forms, Legal for Condo and HOA’s, Our members are the Trusted Service Companies, Businesses and Management Professionals that help Condo & HOA’s all over Florida.

 

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House Bill 841 containing this year’s community association legislation.

House Bill 841 containing this year’s community association legislation.

KAYE BENDER REMBAUM’S 2018 LEGISLATIVE GUIDE – HOUSE BILL 841 AFFECTING COMMUNITY ASSOCIATION IS SIGNED INTO LAW

House Bill 841 containing this year’s community association legislation (“HB 841” or “Bill”) has made its way through the 2018 Florida legislative session and was signed into law by Governor Scott on March 23rd. As the Bill is now signed into law, it becomes effective on July 1, 2018. The following is a digest explanation of these newest laws to affect Florida’s community associations:

Condominium Official Record-keeping: Certain official records must be permanently maintained from the inception of the association, including the following:

(i) a copy of the plans, permits, warranties, and other items provided by the developer;
(ii) a copy of the recorded declaration of condominium and all amendments thereto
(iii) a copy of the recorded bylaws and all amendments thereto;
(iv) a certified copy of the articles of incorporation and all amendments thereto;
(v) a copy of the current rules; and
(vi) all meeting minutes.

All other official records of the association must be maintained within the state for at least seven years, unless otherwise provided by general law. Notwithstanding, all election records, including electronic election records, must only be maintained for one year from the election.

 

Kaye Bender Rembaum
9121 N Military Trail #200,
Palm Beach Gardens, FL 33410

 

 

Condominium Website: As a result of the 2017 legislative session, the website posting requirement applies to condominiums containing 150 or more non-timeshare units. The deadline to post digital copies of the governing documents, association contracts, budget, financial report, and other required documents on the association’s website is extended to January 1, 2019. Of the documents to be posted to the website, a list of bids received by the association within the past year for contracts entered into by the association and any monthly income and expense statement must also be posted. Notwithstanding this requirement, the failure to post these documents on the website does not, in and of itself, invalidate any action or decision of the association. Additionally, in complying with the posting requirement, there is no liability for disclosing information that is protected or restricted unless such disclosure was made with a knowing or intentional disregard of the protected or restricted nature of such information.

 

Condominium Financial Reporting: In the event an association fails to comply with an order by the Division of Florida Condominiums, Timeshares, and Mobile Homes to provide an owner with a copy of the financial report within a specified amount of days, then the association is prohibited from waiving the financial reporting requirement for the fiscal year in which the owner’s initial request for a copy was made and for the following fiscal year, too.

 

Condominium/Cooperative Board Meeting Notices: Notice of any board meeting in which regular or special assessments against unit owners are to be considered must specifically state that assessments will be considered and provide the estimated cost and description of the purposes for such assessments.

 

Condominium/Cooperative Meeting Notices: The association may adopt a rule for conspicuously posting meeting notices and agendas on the association’s website for at least the minimum period of time for which a notice of a meeting is also required to be physically posted on the condominium property. This rule must include a requirement that the association send an electronic notice in the same manner as a notice for a meeting of the members, including a hyperlink to the website where the notice is posted. (As yet, it is not patently clear whether this is in place of the existing “posting in a conspicuous place” requirement or in lieu of it. The safer course of action is to do both.)

 

Condominium Director Term: A director can serve a term longer than one year if permitted by the bylaws or articles of incorporation. However, a director cannot serve more than eight consecutive years, unless approved by two-thirds of all votes cast in the election or unless there are not enough eligible candidates to fill vacancies on the board. This part of the legislation replaces and fixes last year’s ridiculous new law that a director could not serve more than four consecutive two-year terms. (It appears that based on this year’s legislative changes, directors can serve any length of term so long as authorized by the articles or bylaws. At present, directors can only serve one or two year terms depending on the provisions of the articles and bylaws. Also, staggered terms remain permitted.)

 

Condominium/Cooperative Electronic Notice: A unit owner who consents to receiving notices by electronic transmission is solely responsible for removing or bypassing filters that block receipt of mass emails sent to members on behalf of the association in the course of giving electronic notices.

 

Condominium Director Recall: A recall is only effective if it is facially valid. (Of course, as what the term of art “facially valid” is intended to mean is left out of the legislation.) In any event, if the recall is determined to be facially invalid by the board, then the unit owner representative of the recall effort may file a petition challenging the board’s determination on facial validity. Similarly, a recalled board member may file a petition challenging the facial validity of the recall effort. If the arbitrator determines that the recall was invalid, the petitioning board member is immediately reinstated and the recall is null and void. In some instances, the arbitrator may award prevailing party attorney fees.

 

Condominium Material Alterations: In situations where the declaration as amended does not specify the procedure for approving material alterations or substantial additions to the common elements or association property, the already statutorily required approval of seventy-five percent of the total voting interests of the association must now be obtained before the material alterations or substantial additions to the common elements or association property are commenced. (Clearly then, if the declaration is silent as to the procedure for material alterations or substantial additions to common elements or association property, this new legislation implies that a curative vote of the members to approve the changes is a thing of the past. It does not make sense to force the association to restore the property to its prior condition where the members might vote to approve the change. Hopefully, this will be fixed in next year’s legislative proposals.)

 

Condominium Electric Vehicles: A declaration of condominium or restrictive covenant may not prohibit or be enforced so as to prohibit any unit owner from installing an electric vehicle charging station within the boundaries of the unit owner’s limited common element parking area. Moreover, the board may not prohibit a unit owner from installing an electric vehicle charging station for an electric vehicle within the boundaries of his or her limited common element parking area. The unit owner is entirely responsible for the charging station, including its installation, maintenance, utilities charges (which must be separately metered), insurance, and removal if no longer needed. The association may impose certain requirements upon the installation and operation of the charging station, including, for example, that the unit owner comply with all safety requirements and building codes, that the unit owner comply with reasonable architectural standards adopted by the association governing charging stations, and that the unit owner use the services of a licensed and registered electrical contractor or engineer knowledgeable in charging stations. Labor performed on or materials furnished for the installation of a charging station may not be the basis for filing a construction lien against the association, but such a lien may be filed against the unit owner.

 

Condominium Director Conflicts of Interest: The process allowing a director to enter into a contract with the director’s association has become better organized. Disclosure requirements that were set out in section 718.3026(3), Florida Statutes were deleted from that location and relocated to section 718.3027, Florida Statutes. In brief, directors and officers of non-timeshare condominiums must disclose to the board any activity that could be reasonably considered a conflict of interest. A rebuttable presumption of such a conflict exists if:

i) directors or officers of the association (including their relatives) enter into a contract for goods or services with the association;

ii) directors or officers of the association (including their relatives) holds an interest in a corporation. Limited liability corporation, partnership or other business entity that conducts business with the association.

In the event of such a conflict, then the proposed activity and all relevant contracts must be attached to the meeting agenda and the requirements of section 617.0832, Florida Statutes must be adhered to, as well. The relevant provisions of section 617.0832, Florida Statutes follow:

“No contract or other transaction between a corporation and one or more of its directors or any other corporation, firm, association, or entity in which one or more of its directors are directors or officers or are financially interested shall be either void or voidable because of such relationship or interest, because such director or directors are present at the meeting of the board of directors or a committee thereof which authorizes, approves, or ratifies such contract or transaction, or because his or her or their votes are counted for such purpose, if:

a) The fact of such relationship or interest is disclosed or known to the board of directors or committee which authorizes, approves, or ratifies the contract or transaction by a vote or consent sufficient for the purpose without counting the votes or consents of such interested directors;

b) The fact of such relationship or interest is disclosed or known to the members entitled to vote on such contract or transaction, if any, and they authorize, approve, or ratify it by vote or written consent; or

c) The contract or transaction is fair and reasonable as to the corporation at the time it is authorized by the board, a committee, or the members.”

In addition, section 718.3027, Florida Statutes, provides that the disclosures required by this section must be set out in the meeting minutes, and the contract must be approved by two-thirds of all of the directors present (excluding the conflicted director). At the next membership meeting, the existence of the contract must be disclosed to the members and then may be canceled by a majority vote of the members present. If the contract is canceled, the association is only liable for the reasonable value of the goods and services provided up to the time of cancellation and is not liable for any termination fee, liquidated damages, or other form of penalty for such cancellation. Finally, in the event of a failure to disclose a conflict or potential conflict, the contract is voidable and terminates upon the filing of a written notice terminating the contract which contains at least 20 percent of the voting interests of the association. (Note that section 718.112(2)(p) Florida Statutes, pertaining to service provider contracts still provides that “an association, which is not a timeshare condominium association, may not employ or contract with any service provider that is owned or operated by a board member or with any person who has a financial relationship with a board member or officer, or a relative within the third degree of consanguinity by blood or marriage of a board member or officer. This paragraph does not apply to a service provider in which a board member or officer, or a relative within the third degree of consanguinity by blood or marriage of a board member or officer, owns less than 1 percent of the equity shares.”)

 

Condominium/Cooperative Grievance Committee: The grievance committee appointed by the board to conduct hearings for fines and use right suspensions for violations of the governing documents must be comprised of at least three members who are not officers, directors, or employees of the association, or the spouse, parent, child, brother, or sister of an officer, director, or employee. (The restriction against not allowing someone living with the director from serving on the committee was removed.) The fine or suspension can only be imposed if approved by a majority of the committee. If a fine is approved, the fine payment is due five days after the date of the committee meeting at which the fine is approved. (This seems illogical in that the offending member may not have received the required written notice of the confirmation of the fine from the association.) The association must provide written notice of the approved fine or suspension by mail or hand delivery.

 

Cooperative Official Records: The official records must be made available to a unit owner within ten working days after receipt of written request by the board or its designee.

 

Cooperative Director/Officer Eligibility: In a residential cooperative association of more than ten units, co-owners of a unit may not serve as members of the board at the same time unless the co-owners own more than one unit or unless there are not enough eligible candidates to fill the vacancies on the board at the time of the vacancy.

 

Cooperative Director/Officer Financial Delinquency: A director or officer more than 90 days delinquent in the payment of any monetary obligation due to the association shall be deemed to have abandoned the office, creating a vacancy in the office to be filled according to law.

 

Cooperative Bulk Communication Contracts: Cooperatives are now lawfully permitted to enter into bulk communication contracts which can include internet services and such expenses are deemed common expenses of the cooperative.

 

HOA/Cooperative Board Email Use: Members of the board may use email as a means of communication but may not cast a vote on an association matter via email.

 

HOA Fines: If a fine levied by the board is approved by the grievance committee, the fine payment is due five days after the date of the committee meeting at which the fine is approved. (This seems illogical in that the offending member may not have received the required notice of the confirmation of the fine from the association.)

 

HOA Amendments: A proposal to amend the governing documents must contain the full text of the provision to be amended with new language underlined and deleted language stricken. 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, the following notation must be inserted immediately preceding the proposed amendment: “Substantial rewording. See governing documents for current text.” An immaterial error or omission in the amendment process does not invalidate an otherwise properly adopted amendment. (In other words, HOA proposed amendments must be presented in the same manner as proposed condominium amendments have been required to do for years and years.)

 

HOA Election by Acclamation: 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 and write-in nominations are not permitted, then such qualified candidates shall commence service on the board of directors, regardless of whether a quorum is attained at the annual meeting. (This is a major change!)

 

HOA Application of Payments: The application of assessment payments received by the association is applicable regardless of any purported accord and satisfaction or any restrictive endorsement, designation, or instruction placed on or accompanying a payment

http://rembaumsassociationroundup.com/2018/03/26/kaye-bender-rembaums-2018-legislative-guide-house-bill-841-affecting-community-association-is-signed-into-law/

 

 

 

 

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