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CAN YOU REPEAT THAT?     Is Your Condominium in Compliance?

CAN YOU REPEAT THAT? Is Your Condominium in Compliance?

  • Posted: Feb 08, 2023
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CAN YOU REPEAT THAT?

Is Your Condominium in Compliance?

Additional Clarity Provided

If your condominium is greater than 75 feet tall, then you need to read this article (most especially due to a small but meaningful typo in the prior version which is now revised with the red text below).

It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code (the “Fire Code”). For the safety of all residents, associations must ensure they stay up to date with the latest and greatest in fire safety provisions. One of these essential safety features is a requirement that systems be built into new and existing buildings to ensure that first responders’ radios will work throughout buildings in an emergency situation. Pursuant to Section 11.10.1 of the Fire Code, “in all new and existing buildings, minimum radio signal strength for fire department communications shall be maintained at a level determined by the AJH [the authority having jurisdiction]. Additionally, Section 11.10.2. provides that where required by the authority having jurisdiction, two-way radio communication enhancement systems must comply with the requirements of the Fire Code.

When originally adopted, the requirements of Sections 11.10.1 and 11.10.2 of the Fire Code applied only to new buildings, so the requirement was not a burden on existing buildings. However, in 2013, the Fire Code was updated as set out above to provide that all new and existing buildings must maintain adequate fire department radio signal strength inside the building. This new requirement applied to all buildings and did not provide a grace period. This posed a significant problem for many high-rise condominiums, as the installation of the necessary equipment involves opening walls and ceilings and can be quite costly to the association. The cost of such installation was a substantial burden to condominiums, not expecting to be required to install same, and therefore never budgeted for the installation.

Recognizing the problem, in 2016 the Florida Legislature adopted section 633.202(18), Florida Statutes, which provided a grace period for high-rise buildings. Existing high-rise buildings were not required to comply with minimum radio strength for fire department communications until January 1, 2022. You may be thinking, “that date is passed”, but do not panic. If your condominium has not yet complied with the requirements, have no fear. The 2021 Florida Legislature amended section 633.202(18), Florida Statutes, to provide another extension for compliance.

In accordance with the newly amended statute, existing high-rise buildings now have until January 1, 2025 to come into compliance with the requirements. However, the association must apply for an appropriate permit for the required installation by January 1, 2024. More specifically, section 633.202(18), Florida Statutes, is amended to provide, in pertinent part, that:

(18) The authority having jurisdiction shall determine the minimum radio signal strength for fire department communications in all new high-rise and existing high-rise buildings. Existing buildings are not required to comply with minimum radio strength for fire department communications and two-way radio system enhancement communications as required by the Florida Fire Prevention Code until January 1, 2025. However, by January 1, 2024, an existing building that is not in compliance with the requirements for minimum radio strength for fire department communications must apply for an appropriate permit for the required installation with the local government agency having jurisdiction and must demonstrate that the building will become compliance by January 1, 2025. Existing apartment buildings are not required to comply until January 1, 2025…

Therefore, all existing high-rise buildings must come into compliance by January 1, 2025. It is important to note that this time extension applies only to high-rise buildings. By way of over simplification, it does not apply to buildings less than 75 feet tall (the measurement can be tricky, so if your building is close to 75 feet check with your association attorney regarding this measurement). In 2018, the Florida Department of Financial Services, Division of State Fire Marshal issued a Declaratory Statement finding that section 633.202(18), Florida Statutes does not apply to the enforcement of Section 11.10 of the Fire Code to buildings under 75 feet in height. Therefore, if your building is greater than 75 feet in height, it is required to comply with the radio signal strength required by the authority having jurisdiction at this time.

In light of the foregoing, it is essential that your association take action to determine whether sufficient fire department radio signal exists in your building. We recommend the association reach out to the local fire code official to determine the exact requirements for your jurisdiction. If sufficient signal does not exist in your building, it is essential to prepare a plan (including design, permits, financing, etc.) to ensure that your building will comply by the deadline of January 1, 2025.

New Florida laws take effect in January, including from recent special session / SFPMA

New Florida laws take effect in January, including from recent special session / SFPMA

  • Posted: Dec 27, 2022
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New Florida laws take effect in January.

TALLAHASSEE, Fla. (WFLA) — The new year means a few new Florida laws will go into effect, after passage during the 2022 legislative session, as well as the bills passed in December’s special session.

Eight new laws go into effect on Jan. 1, 2023. Among the various bills’ effects, Floridians can expect changes to newborn healthcare, public notices, and ways to file taxes in 2023.

Arguably the least controversial is a bill that requires newborns to be tested for congenital cytomegalovirus within three weeks of birth. CMV is the most common infectious cause of birth defects in the United States.

The virus affects one in every 200 babies each year. Senate Bill 292, passed with widespread support in the March 2022 legislative session, aims to catch long term health problems that cmv causes like hearing and vision loss.

Also taking effect in January is a bill allowing local government agencies the option to publish legal notices on a publicly accessible website instead of in a print newspaper.

House Bill 7049 also takes effect Jan. 1, 2023, but hasn’t seen the uniform support that the newborn screening bill did. Lawmakers weighed in on the impacts.

“This is the most available legal notices will be for people in the history of Florida,” Sen. Jason Brodeur (R-Lake Mary).

However, former Sen. Gary Farmer (D-Broward), the former Senate minority leader, argued against the bill.

“The bottom line is the underlying intent of bills like this throughout the country are to weaken news outlets and close the vice grip of corporate control over the news,” Farmer said.

Another piece of legislation, Senate Bill 2514 allows more taxpayers to file taxes electronically by authorizing the Florida Department of Revenue to lower the payment threshold from $20,000 to $5,000.

Those were just a few of the laws going into effect next year. Also starting in January are the bills passed during the December special session of the legislature focused on property insurancetoll relief, and Hurricane disaster recovery.


2022 Laws Already in Effect:

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  • HJR 1: Additional Homestead Property Tax Exemption for Specified Critical Public Service Workforce
  • SB 58: Relief of Yeilyn Quiroz Otero by Miami-Dade County
  • SB 70: Relief of Donna Catalano by the Department of Agriculture and Consumer Services
  • SB 74: Relief of Harry Augustin Shumow/Public Health Trust of Miami-Dade County, d/b/a Jackson Memorial Hospital
  • SB 80: Relief of Christeia Jones/Department of Highway Safety and Motor Vehicles
  • SB 96: Emergency Preparedness and Response Fund
  • SB 98: Emergency Preparedness and Response Fund
  • SB 156: Loss Run Statements
  • HB 159: Pub. Rec./Lottery Winners
  • SB 282: Mental Health and Substance Use Disorders
  • SB 288: Electronic Dissemination of Commercial Recordings and Audiovisual Works
  • SB 350: Procedures for Petitions for Utility Rate Relief
  • HB 395: “Victims of Communism Day”
  • HB 397: Court Fiscal Administration
  • SB 364: Specialty License Plates
  • SB 430: Interstate Compact on Educational Opportunity for Military Children
  • SB 434: Florida Tourism Marketing
  • SB 438: United States Space Force
  • HB 455: Rupert J Smith Law Library, St. Lucie County
  • HB 457: St. Lucie County
  • HB 461: Florida Bright Futures Scholarship Program Student Service Requirements
  • HB 471: Town of Lake Clarke Shores, Palm Beach County
  • SB 494: Fish and Wildlife Conservation Commission
  • HB 513: Comprehensive Review Study of the Central and Southern Florida Project
  • SB 514: Substitution of Work Experience for Postsecondary Educational Requirements
  • SB 518: Private Property Rights to Prune, Trim, and Remove Trees
  • SB 520: Public Records and Public Meetings
  • SB 524: Election Administration
  • SB 534: Prescription Drugs Used in the Treatment of Schizophrenia for Medicaid Recipients
  • HB 535: Barefoot Bay Recreation District, Brevard County
  • HB 539: Nursing Home Financial Reporting
  • SB 542: Evidentiary Standards for Actions Arising During an Emergency
  • HB 543: Uterine Fibroid Research and Education
  • SB 544: Drug-related Overdose Prevention
  • SB 566: Mental Health Professional Licensure
  • SB 638: Early Childhood Music Education Incentive Pilot Program
  • SB 704: Substance Abuse Service Providers
  • HB 749: Fraud Prevention
  • SB 846: Florida Statutes
  • SB 848: Florida Statutes
  • SB 850: Florida Statutes
  • SB 852: Florida Statutes
  • HB 873: Pub. Rec./Execution Information
  • HB 893: Child Welfare Placements
  • HB 895: Lakewood Ranch Stewardship District, Manatee and Sarasota Counties
  • HB 925: Benchmark Replacements for London Interbank Offered Rate
  • SB 926: Licensure Examinations for Dental Practitioners
  • HB 927: Downtown Crystal River Entertainment District, Citrus County
  • HB 929: City of West Palm Beach, Palm Beach County
  • SB 934: Public Records/Homelessness Counts and Information Systems
  • SB 962: Residential Development Projects for Affordable Housing
  • SB 968: Individual Retirement Accounts
  • SB 988: In-person Visitation
  • HB 993: Sebring Airport Authority, Highlands County
  • HB 1045: West Villages Improvement District, Sarasota County
  • SB 1046: Public Records/Law Enforcement Geolocation Information
  • HB 1047: Cedar Hammock Fire Control District, Manatee County
  • SB 1048: Student Assessments
  • HB 1057: Evidence of Vendor Financial Stability
  • SB 1058: Property Insurer Reimbursements
  • SB 1062: Service of Process
  • SB 1078: Soil and Water Conservation Districts
  • HB 1103: North River Ranch Improvement Stewardship District, Manatee County
  • HB 1105: Lake County Water District, Lake County
  • HB 1107: City of Inverness, Citrus County
  • HB 1135: Santa Rosa County
  • HB 1189: Firefighters’ Relief and Pension Fund of the City of Pensacola, Escambia County
  • SB 1222: Acute and Post-acute Hospital Care at Home
  • HB 1231: East Lake Tarpon Community, Pinellas County
  • SB 1239: Nursing Homes
  • SB 1380: Real Property Rights
  • HB 1423: City of Edgewood, Orange County
  • HB 1427: Hillsborough County Aviation Authority
  • HB 1429: City of Ocala, Marion County
  • HB 1431: City of Apopka, Orange County
  • HB 1433: Orange County
  • HB 1435: Code and Traffic Enforcement
  • HB 1475: Cleanup of Perfluoroalkyl and Polyfluoroalkyl Substances
  • HB 1495: Immokalee Water and Sewer District, Collier County
  • HB 1497: City of Jacksonville, Duval County
  • HB 1499: City of Key West, Monroe County
  • HB 1563: Homestead Property Tax Exemptions for Classroom Teachers, Law Enforcement Officers, Firefighters, Emergency Medical Technicians, Paramedics, Child Welfare Professionals, and Servicemembers
  • HB 1581: Jackson County Sheriff’s Office
  • HB 1583: Emerald Coast Utilities Authority, Escambia County
  • HB 1591: Hernando County
  • SB 1614: Public Records/Motor Vehicle Crashes/Traffic Citations
  • SB 1658: Executive Appointments
  • SB 1808: Immigration Enforcement
  • SB 2516: Office of the Judges of Compensation Claims
  • HB 6513: Relief/Kareem Hawari/Osceola County School Board
  • SB 7014: Civil Liability for Damages Relating to COVID-19
  • HB 7027: The Judicial Branch

Taking Effect in July:

  • HB 3: Law Enforcement
  • HB 5: Reducing Fetal and Infant Mortality
  • HB 7: Individual Freedom
  • HB 31: Firefighter Inquiries and Investigations
  • HB 45: Educational Opportunities for Disabled Veterans
  • HB 105: Regulation of Smoking By Counties and Municipalities
  • SB 144: Identification Cards
  • SB 160: Transportation-related Facility Designations
  • HB 173: Care of Students with Epilepsy or Seizure Disorders
  • HB 195: Juvenile Diversion Program Expunction
  • SB 196: Florida Housing Finance Corporation
  • HB 197: Pub. Rec./Nonjudicial Arrest Record of a Minor
  • SB 222: Swimming Pool Specialty Contracting Services
  • SB 224: Regulation of Smoking in Public Places
  • HB 225: Charter School Charters
  • SB 226: Care for Retired Police Dogs
  • SB 235: Restraint of Students with Disabilities in Public Schools
  • SB 236: Children with Developmental Delays
  • SB 254: Religious Institutions
  • HB 255: Private Instructional Personnel Providing Applied Behavior Analysis Services
  • SB 266: Motor Vehicle Insurance
  • SB 282: Mental Health and Substance Use Disorders
  • SB 288: Electronic Dissemination of Commercial Recordings and Audiovisual Works
  • SB 312: Telehealth
  • SB 350: Procedures for Petitions for Utility Rate Relief
  • SB 352: Construction Liens
  • HB 357: Pharmacies and Pharmacy Benefit Managers
  • HB 375: Structural Engineering Recognition Program for Professional Engineers
  • HB 381: Breach of Bond Costs
  • HB 397: Court Fiscal Administration
  • SB 418: Assistive Technology Advisory Council
  • HB 423: Building Regulation
  • SB 442: Powers of Land Authorities
  • HB 453: Officer and Firefighter Physical Examination Requirements and Records
  • SB 454: Florida Commission on Offender Review
  • HB 469: Patient Care in Health Care Facilities
  • SB 474: Recreational Off-highway Vehicles
  • HB 481: Temporary Underground Power Panels
  • HB 459: Step-therapy Protocols
  • HB 469: Patient Care in Health Care Facilities
  • SB 514: Substitution of Work Experience for Postsecondary Education Requirements
  • SB 518: Private Property Rights to Prune, Trim, and Remove Trees
  • SB 534: Prescription Drugs Used in the Treatment of Schizophrenia for Medicaid Recipients
  • HB 539: Nursing Home Financial Reporting
  • SB 542 Evidentiary Standards for Actions Arising During an Emergency
  • HB 543: Uterine Fibroid Research and Education
  • SB 544: Drug-related Overdose Prevention
  • SB 562: Military Occupational Licensure
  • HB 593: Telecommunicator Cardiopulmonary Resuscitation
  • SB 596: Criminal Conflict and Civil Regional Counsels
  • SB 598: Public Records/Criminal Conflict and Civil Regional Counsel Office
  • SB 606: Boating Safety
  • HB 615: Human Trafficking
  • HB 631: Airport Funding
  • SB 632: Occupational Therapy
  • SB 634: Judicial Notice
  • HB 689: Workers’ Compensation Benefits for Posttraumatic Stress Disorder
  • SB 706: School Concurrency
  • SB 722: Education for Student Inmates
  • SB 752: Probationary or Supervision Services for Misdemeanor Offenders
  • SB 758: Education
  • SB 768: Department of Health
  • SB 806: Alzheimer’s Disease and Related Forms of Dementia Education and Public Awareness
  • HB 817: Emergency Medical Care and Treatment to Minors Without Parental Consent
  • HB 837: Hurricane Loss Mitigation Program
  • SB 838: Fire Investigators
  • SB 854: Florida Statutes
  • HB 855: Managed Care Plan Performance
  • SB 856: Private Provider Inspections of Onsite Sewage Treatment and Disposal Systems
  • SB 882: Inventories of Critical Wetlands
  • SB 896: Educator Certification Pathways for Veterans
  • SB 898: Lodging Standards
  • HB 899: Mental Health of Students
  • HB 909: Pollution Control Standards and Liability
  • SB 914: Department of Highway Safety and Motor Vehicles
  • HB 915: Commercial Motor Vehicle Registration
  • HB 921: Campaign Financing
  • HB 959: Department of Financial Services
  • HB 963: Funding for Sheriffs
  • HB 965: Environmental Management
  • HB 967: Golf Course Best Management Practices Certification
  • SB 1000: Nutrient Application Rates
  • SB 1006: State Symbols
  • SB 1012: Victims of Crimes
  • HB 1023: Insolvent Insurers
  • SB 1038: Florida Seaport Transportation and economic Development Council
  • SB 1048: Student Assessments
  • SB 1054: Financial Literacy Instruction in Public Schools
  • HB 1097: Florida Citrus
  • HB 1099: Living Organ Donors in Insurance Policies
  • SB 1110: Grease Waste Removal and Disposal
  • HB 1119: Grandparent Visitation Rights
  • SB 1140: Alarm Systems
  • SB 1186: Agritourism
  • SB 1190: Two-way Radio Communication Enhancement Systems
  • HB 1209: Administration of Vaccines
  • SB 1222: Acute and Post-acute Hospital Care at Home
  • SB 1236: County and Municipal Detention Facilities
  • SB 1244: Statutes of Limitation for Offenses Relating to Sexual Performance by a Child
  • SB 1246: County and Municipal Detention Facilities
  • HB 1249: Treatment of Defendants Adjudicated Incompetent to Stand Trial
  • SB 1262: Mental Health and Substance Abuse
  • SB 1304: Public Records/Trust Proceedings
  • HB 1349: Guardianship Data Transparency
  • SB 1360: Governor’s Medal of Freedom
  • SB 1368: Trusts
  • SB 1374: Clinical Laboratory Testing
  • HB 1411: Floating Solar Facilities
  • HB 1421: School Safety
  • SB 1432: Vessel Anchoring
  • HB 1445: OGSR/Dependent Eligibility Information/DMS, contingent upon SB 7026
  • HB 1467: K-12 Education
  • HB 1469: Transportation Facility Designations
  • SB 1474: Online Training for Private Security Officers
  • SB 1502: Estates and Trusts
  • SB 1526: Public Records/Annuity Contract Payees
  • SB 1552: Direct-support Organization for the Florida Prepaid College Board
  • HB 1557: Parental Rights in Education
  • HB 1577: Homeless Youth
  • SB 1680: Financial Institutions
  • SB 1712: Veteran Suicide Prevention Training Pilot Program
  • SB 1764: Municipal Solid Waste-to-Energy Program
  • SB 1770: Donor Human Milk Bank Services
  • SB 1844: Mental Health and Substance Abuse
  • SB 1950: Statewide Medicaid Managed Care Program
  • SB 2510: Florida Gaming Control Commission
  • SB 2518: Information Technology
  • SB 2524: Education
  • SB 2526: Health
  • SB 2530: Motor Vehicle Title Fees
  • HB 5001: General Appropriations Act
  • HB 5003: Implementing the 2022-2023 General Appropriations Act
  • HB 5005: Collective Bargaining
  • HB 5007: State-administered Retirement Systems
  • HB 5009: State Group Insurance Program
  • HB 5301: Capitol Complex
  • SB 7026: OGSR/Dependent Eligibility Verification Services
  • HB 7029: Time Limitations for Preadjudicatory Juvenile Detention Care
  • SB 7034: Child Welfare
  • SB 7036: Lifeline Telecommunications Service
  • SB 7044: Postsecondary Education
  • HB 7053: Statewide Flooding and Sea Level Rise Resilience
  • HB 7055: Cybersecurity
  • HB 7057: Pub. Rec. and Meetings/Cybersecurity, contingent upon HB 7055
  • HB 7065: Child Welfare
  • HB 7071: Taxation

Laws Taking Effect in 2023

  • HB 273: Money Services Businesses, takes effect Jan. 1, 2023
  • SB 292: Newborn Screenings, takes effect Jan. 1, 2023
  • SB 336: Uniform Commercial Code, takes effect Jan. 1, 2023
  • SB 754: Mobile Home Registration Periods, takes effect Sept. 1, 2023
  • HB 7049: Legal Notices, takes effect Jan. 1, 2023

 

Federal Court Identifies Potential Collection Issue for Community Associations in Florida

Federal Court Identifies Potential Collection Issue for Community Associations in Florida

  • Posted: Dec 08, 2022
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Federal Court Identifies Potential Collection Issue for Community Associations in Florida

Community association operations rely upon the timely and full payment of all assessments by all of the owners. One of the mechanisms that Florida law provides to put associations in a stronger position when an owner becomes delinquent is the “secured interest” of the association in the unpaid assessments by way of its ongoing lien against the unit or lot for the unpaid assessments. This secured interest puts the claim of the association at a higher priority than most other claims, other than a first mortgage or unpaid property taxes. However, a recent decision in the United States Bankruptcy Court for the Southern District of Florida, In re: Adam, Case No.: 22-10140-MAM, September 23, 2022, has cast a potential cloud on that secured interest.

In the In re Adam case, the Association previously obtained a judgment of foreclosure for over $76,000, which was considered as a secured interest by the Court. The Association was also claiming an additional $36,558 which came due after the judgment was entered. The owners were asking the Court to decide that the $36,000 was not secured and therefore uncollectible in the bankruptcy (or at least not fully collectible).

In deciding whether certain association claims were secured and collectible in the bankruptcy setting, the Court undertook an analysis of Florida law on the subject. The Court noted that both the Florida Condominium Act (Chapter 718 F.S.) and the Homeowner’s Association Act (Chapter 720 F.S.) currently contain express provisions that identify that the lien of the association is effective from the original recording of the declaration (with the added requirement in HOA’s that the declaration specifically expresses this lien right). However, the Court also points out that the Condominium Act was amended in 1992 to provide for this effective date. (The Homeowner’s Association Act was amended to provide for it in 2008.) Prior to these amendments, these Statutes provided for the effective date of the lien to be when it was recorded in the public records of the county. The analysis of the Court required it to consider whether the current version of the Statute applies to the situation or whether an earlier version of the Statute is the controlling authority. (This case involved a condominium so only the Condominium Act was considered in the decision.)

To make that determination, the Court applied the principles of the seminal case of Kaufman v. Shere, 347 So.2d 627 (Fla. 3d DCA 1977), which require declarations to contain the specific phrase “as amended from time to time” when identifying the Statute that governs the documents in order for the current version of the Statute to apply. This is because Statutes are not retroactive in their application unless the legislature expressly makes them so in the Statute itself. Both the U.S. and Florida Constitutions do not allow for the State to make a law that infringes upon the vested rights in an existing contract (which would be the declaration). As a result, the contract (declaration) would need to have the specific “as amended from time to time” language (often called “Kaufman” language) to automatically incorporate changes to the Statute that is not otherwise retroactive.

When the Court reviewed the governing documents, it noted that they were from 1987 and did not have the Kaufman language. As such, the Court held that the provisions of the declaration were the same as the Statute in 1987, which provided that the lien was effective only upon being recorded in the public records of the county. Since the Association did not file another lien for the amount being claimed subsequent to the foreclosure judgment, the Court concluded that this portion was not secured. In the bankruptcy setting, this meant that the Association would likely be unable to recover most, if not all of this claim from the Debtors, Mr. and Ms. Adam.

While this issue may be most relevant to associations when dealing with a case in bankruptcy, it is possible that it could also be raised in state court foreclosure cases under certain circumstances. It is also important to note that this Bankruptcy Court did not include a significant issue in the analysis regarding the Statute at issue, that being whether or not the statutory provision was “substantive” or “procedural”, as those terms apply to this situation, which could have led to a different result. (This portion of the legal analysis is quite technical and beyond the scope of this article.)

For communities whose declarations were recorded prior to the statutory changes described above, the first step in protecting the interests of the association is to review the documents to determine whether Kaufman language is already in them. If not, the board may wish to consider proposing an amendment to the owners to change the documents to include this language, if not for the entire declaration, then at least for the timing of the effectiveness of the lien of the association. Having qualified legal counsel review these issues in the documents is a strong business practice.

About Robert
Robert L. Kaye is Board Certified in Condominium and Planned Development Law. Mr. Kaye attended Michigan State University, graduating with a B.B.A. in General Business in 1976. In 1986, Mr. Kaye graduated from the Detroit College of Law, magna cum laude. Mr. Kaye initially practiced tax law for the firm of Raymond, Rupp, Weinberg, Stone & Zuckerman, P.C. in Troy, Michigan, before moving to South Florida in 1987, joining Becker & Poliakoff to concentrate in the area of community association representation. In 1991, Robert Kaye left that employ to start Kaye & Roger, P.A. He was the managing shareholder of the Firm from its inception, directing all legal operations and overseeing its growth to represent over 1,000 Communities in South Florida at the time of its name change to Robert Kaye & Associates, P.A. on January 1, 2003.
On January 1, 2009 Mr. Kaye joined with Michael Bender to form Kaye & Bender, now known as Kaye Bender Rembaum, after Jeffrey Rembaum joined in 2012. Mr. Kaye serves on the Florida Bar’s Grievance Committee, is a member of the Condominium Committee of the Real Property Section of The Florida Bar, and previously served on the Committee on the Unlicensed Practice of Law. He also lectures on Community Association law and is regularly published on the subject. Mr. Kaye hosts KBR’s appearances on the radio show, ‘Ask the Experts’, from 6pm to 7pm, the first Thursday of each month.
See his full bio HERE.

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SO WHERE WILL PRICES GO?  By Eric Glazer, Esq.

SO WHERE WILL PRICES GO? By Eric Glazer, Esq.

  • Posted: Nov 17, 2022
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SO WHERE WILL PRICES GO?

By Eric Glazer, Esq.

I think last night’s 60 Minutes episode made it clear that for some, living in their condominium unit may simply become unaffordable.  The question is……which condos will suffer the most and which other forms of housing are most likely to retain their values and even go up.

Everyone is freaking out that all condominium living will soon become insanely unaffordable but that simply isn’t true.  Remember, these new inspection laws only kick in after 25 years if your condo is on the beach or within 3 miles of the coast.  They don’t kick in for 30 years for all other condos.  So, if your condo is new, these new inspections may not apply to you for decades.  Relax.

What else do we know?  Full funding of reserves start in 2025 and they can’t be waived.  Does that spell doom and gloom for everyone?  Not necessarily.  If your condominium has always been doing the right thing and has been fully funding reserves, these new laws requiring the full funding of reserves may not have a financial effect on you at all.   On the contrary, if you have been living in a condominium that has been waiving reserves for years, or even decades, you are in trouble.  You have a lot of catching up to do.  But what did you expect?  You were never putting away money for future repairs?  Did you think your building would never need repairs?  If it did need repairs, did you think these repairs would magically be paid?

Remember, these mandatory inspections, mandatory repairs and mandatory reserves only apply to condominiums of 3 stories or more.  So obviously, if your condominium is under three stories, you won’t be subject to mandatory inspections or mandatory reserves.  Something tells me, your home will be in high demand.

Of course, if you live in an HOA, the new inspection and reserve laws won’t apply to you either.  No doubt in my mind, condo dwellers will soon be looking to switch to the HOA way of life.

If you live in one of those condos above 3 stories that is 30 years of age or older and never reserved a dollar, it’s going to be hard to sell your unit. Buyers are more educated now and realize they would be buying into a financial nightmare.  If you want to sell, your price will definitely have to factor in, what the new buyer is about to pay for those inspections and repairs.

On the contrary, people who own condos under 3 stories or who live in HOAs will be in the driver’s seat as none of these costs will be passed on to their potential buyers.

I’m no realtor……..but this is how I see it.

 

EVENT: Jeffrey Rembaum (KBR Legal) will lead a substantive review of Bill SB-4D (Condo & Cooperative building safety) on October 17th

EVENT: Jeffrey Rembaum (KBR Legal) will lead a substantive review of Bill SB-4D (Condo & Cooperative building safety) on October 17th

  • Posted: Oct 17, 2022
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SIGN UP NOW to WATCH this WEBINAR

Jeffrey Rembaum will lead a substantive review of Bill SB-4D

(Condo & Cooperative building safety) on October 17th.

Please see the flyer for details and share with anyone who will benefit from this.

The link to RSVP is: https://us02web.zoom.us/webinar/register/WN_w-aSiEr6SAqNuNmd-tUJsA

 

Bill SB-4D Has Passed…Now What? A Panel Discussion

In May of 2022 new building safety legislation was passed during a special session. Join us for this important informational discussion as Jeffrey Rembaum, Esq. BCS of Kaye Bender Rembaum will provide a substantive review of Bill SB-4D. Attendees will learn about the history of the bill, how your association is affected and what you may need to do.

Other professionals on hand will include Nicole Johnson-Pendergrass & William Kilgallon (Haferco CPAs & Consultants), Jayme Gelfand, PCAM (Truist Bank), Rudy Martin (m2e Consulting Engineers) and Brian Street (Castle Group).

Note: This webinar is for informational purposes only and does not contain CE credit for CAMS.


Learn more on the New Website on the State of Florida PMA website. 

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IF THERE EVER WAS A TIME TO GET EDUCATED – Update

IF THERE EVER WAS A TIME TO GET EDUCATED – Update

  • Posted: Oct 10, 2022
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Update:  Eric Glazer, Esq.
Published October 10, 2022

Rumors of my demise have been greatly exaggerated.

I just spent a week in the hospital — again with kidney stone issues.  This is I believe the 5th time I needed some sort of surgery for this never ending painful problem.  I left the hospital with a tube coming out of my right side.  I still need a lithotripsy procedure.  That’s the one where you lay down in water and they zap your kidney stones hoping to break them up.  I’m guessing I have another week or two of this insanity.

I want to apologize to the wonderful people at the L&L Condo and HOA Expos.  As all of you know, I always attend all of their shows all around the state and have the honor of kicking off the event by doing my board certification course.  Unfortunately I won’t be able to attend the events In Palm Beach and in Broward.  I am desperately hoping to attend the events in Orlando and Tampa.  I think all of you know that I love nothing more than being with all of you, teaching you, and answering your questions.  It’s simply my favorite part of being an attorney.  It’s killing me that I can’t teach the classes that so many of you attend each and every year.  However, L&L will be finding another well qualified attorney from another law firm to teach and certify you.  I urge you to attend and continue to make the L&L shows the success that they always are.

I’m taking two weeks off from the radio show.  I expect to do the show October 16th — with or without a tube coming out of my side.  BY THE WAY……THAT’S THE SAME DAY I WILL BE ON 60 MINUTES — AS THEY ARE DOING A SHOW ABOUT WHETHER OR NOT GRANDMA AND GRANDPA CAN STILL MOVE TO A FLORIDA CONDOMINIUM IF THEIR SOLE INCOME IS SOCIAL SECURITY.  I think we all know the answer.   This really should be an amazing show which shines the spotlight on Florida condominiums but truly needs to be watched by the entire country as every state better follow Florida’s lead when it comes to mandating safety.

In any event, I hope to be back at my desk in a week or two and look forward to speaking with all of you again.  In the mean time, please get in touch with Rich, Pennie or Paul if you need immediate help.

PS: The nurse told me that the epidural was not invented to relieve pain from child birth.  It was invented to relieve pain from kidney stones!

 

We know everyone is wishing Eric Glazer a full recovery and well wishes.  Ouch

 


In light of the tragedy at The Champlain Towers in Surfside last year, The Florida Legislature, to its credit, passed massive condominium reform regarding safety, inspections and reserves.  These laws are confusing to those who work in the industry every day, never mind to those who serve on condo Boards throughout the state.


 

Stay up to date with the new law -FLORIDA BUILDING INSPECTIONS (SB-4D)

Florida Condo Building Inspections (SB4d)

http://FLBuildingInspections.com  a division of SFPMA

The State of Florida Property Management Association with Legal & Engineering Members are here to help you understand the new laws and how to take the correct action now to ensure you are in full compliance. 

 


The Florida Legislature thought that it was so important for condo boards to enforce these laws that they included a provision which considers a breach of these laws a breach of the director’s fiduciary duty.  Imagine, personal liability can be imposed against a director who fails to enforce these new laws.

Once again, I drafted legislation which would require Board members to learn these new laws in order to get certified and once again this requirement was removed from the statute.  It’s hard to believe, but The Florida Legislature drafted a law which imposes personal liability against those directors who fail to follow these new laws yet removed the requirement to learn these new laws.  In any event, I will again try to make learning these new laws a condition of becoming certified in the next legislative session.

As far as condominium Board members go…….there can be no more important time than the present to learn these new laws.  They are designed to keep you and your fellow unit owners alive.

Don’t dare get certified by signing that dumb, silly form that says I read my governing docs and promise to enforce them.  Even if you read your governing documents from cover to cover, you still wouldn’t learn any of the new condo laws.  What a disgrace that you can still become certified this way.

I am teaching at the following times and locations this month.  It is more imperative than ever to attend an educational course.  In fact, if you don’t learn the new laws and don’t apply the new laws on your condo board, you can face personal liability.  Moreover, any condo Board member who can’t find a few hours to take an educational course is not worthy of a single vote.  So what do you say?  Please register for any of the free following Condo Craze and HOAs Board Certification Classes offered around the state

Find the Condo & HOA Event Dates

 

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It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code

It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code

  • Posted: Sep 22, 2022
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It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code

It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code (the “Fire Code”). For the safety of all residents, associations must ensure they stay up to date with the latest and greatest in fire safety provisions. One of these essential safety features is a requirement that systems be built into new and existing buildings to ensure that first responders’ radios will work throughout buildings in an emergency situation. Pursuant to Section 11.10.1 of the Fire Code, “in all new and existing buildings, minimum radio signal strength for fire department communications shall be maintained at a level determined by the AJH [the authority having jurisdiction]. Additionally, Section 11.10.2. provides that where required by the authority having jurisdiction, two-way radio communication enhancement systems must comply with the requirements of the Fire Code.

When originally adopted, the requirements of Sections 11.10.1 and 11.10.2 of the Fire Code applied only to new buildings, so the requirement was not a burden on existing buildings. However, in 2013, the Fire Code was updated as set out above to provide that all new and existing buildings must maintain adequate fire department radio signal strength inside the building. This new requirement applied to all buildings and did not provide a grace period. This posed a significant problem for many high-rise condominiums, as the installation of the necessary equipment involves opening walls and ceilings and can be quite costly to the association. The cost of such installation was a substantial burden to condominiums, not expecting to be required to install same, and therefore never budgeted for the installation.

Recognizing the problem, in 2016 the Florida Legislature adopted section 633.202(18), Florida Statutes, which provided a grace period for high-rise buildings. Existing high-rise buildings were not required to comply with minimum radio strength for fire department communications until January 1, 2022. You may be thinking, “that date is passed”, but do not panic. If your condominium has not yet complied with the requirements, have no fear. The 2021 Florida Legislature amended section 633.202(18), Florida Statutes, to provide another extension for compliance.

In accordance with the newly amended statute, existing high-rise buildings now have until January 1, 2025 to come into compliance with the requirements. However, the association must apply for an appropriate permit for the required installation by January 1, 2024. More specifically, section 633.202(18), Florida Statutes, is amended to provide, in pertinent part, that:

The authority having jurisdiction shall determine the minimum radio signal strength for fire department communications in all new high-rise and existing high-rise buildings. Existing buildings are not required to comply with minimum radio strength for fire department communications and two-way radio system enhancement communications as required by the Florida Fire Prevention Code until January 1, 2025. However, by January 1, 2024, an existing building that is not in compliance with the requirements for minimum radio strength for fire department communications must apply for an appropriate permit for the required installation with the local government agency having jurisdiction and must demonstrate that the building will become compliance by January 1, 2025. Existing apartment buildings are not required to comply until January 1, 2025…

Therefore, all existing high-rise buildings must come into compliance by January 1, 2025. It is important to note that this time extension applies only to high-rise buildings. By way of over simplification, it does not apply to buildings less than 75 feet tall (the measurement can be tricky, so if your building is close to 75 feet check with your association attorney regarding this measurement). In 2018, the Florida Department of Financial Services, Division of State Fire Marshal issued a Declaratory Statement finding that section 633.202(18), Florida Statutes does not apply to the enforcement of Section 11.10 of the Fire Code to buildings under 75 feet in height. Therefore, if your building is less than 75 feet in height, it is required to comply with the radio signal strength required by the authority having jurisdiction at this time.

In light of the foregoing, it is essential that your association take action to determine whether sufficient fire department radio signal exists in your building. The minimum requirements may differ by jurisdiction, and we recommend the association reach out to the local fire code official to determine the requirements for your jurisdiction. If sufficient signal does not exist in your building, it is essential to prepare a plan (including design, permits, financing, etc.) to ensure that your building will comply by the deadline of January 1, 2025.

The law firm of Kaye Bender Rembaum, with its 20 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.

The Firm is ranked ninth in South Florida and 62nd in the Southern U.S. among “Top 300 Small Businesses” by Business Leader magazine.


Safety is on the minds of every Building owner from Fire sprinklers, Extinguishers, Monitoring, Alarms and Testing and system certification. 

Find Top Companies for your buildings Fire Sprinkler and Equipment

Searching for Money: A Condominium Association’s Guide to Acquiring Financing by Becker

Searching for Money: A Condominium Association’s Guide to Acquiring Financing by Becker

  • Posted: Sep 21, 2022
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Searching for Money: A Condominium Association’s Guide to Acquiring Financing

by Steven B. Lesser  of Becker

A Condominium Association enjoys broad powers based upon Chapter 718, Florida Statutes, otherwise known as “The Florida Condominium Act.” Despite the guidance provided by the statute and case law which interprets it, little has been written to guide Condominium Associations when borrowing funds to finance various projects.

Associations often borrow money to build capital improvements such as clubhouses; perform extensive remedial work and to buy out recreational leases. Associations must be careful to review its own condominium documents to evaluate whether limitations exist on the right to borrow. This article will discuss the practical considerations to be addressed by a Condominium Association when borrowing funds.

 

Review Of The Condominium Documents
The condominium documents including the Declaration of Condominium, Articles of Incorporation and By-laws dictate how money can be raised to fund certain projects. the procedure to be followed depends upon the purpose for raising such funds. To the extent that the Association desires to perform maintenance work to its own property or common elements, money can be raised by passing a special assessment on its unit owners pursuant to Section 718.116, Florida Statutes. Most condominium documents provide the Association with the authority to borrow funds for such purposes without acquiring unit owner consent. However, to the extent that the Association desires to buy out a recreation lease, build a clubhouse or otherwise perform material alterations or acquire substantial additions to the common elements or to Association property, unit owner approval is necessary. Section 718.113, Florida Statutes provides that if the Declaration of Condominium is silent on the percentage of unit owners required to approve such activities seventy-five (75%) percent shall govern.

 

Where To Seek Financing
Once the Association has determined the purpose in raising funds, a source of financing must be located. Financing is often sought when the Association is unable to raise sufficient funds through a special assessment of its members. In many instances, some or all members may not have the money to pay a large lump sum assessment. Typically, an Association will first attempt to look to acquire financing from the bank that handles its operating account. However, the Association should not view the bank as its only source. Often times, members of the Association’s Board of Directors or unit owners may have personal contacts with a lender that is able to provide more favorable rates and flexibility in terms of structure and cost of financing. In some circumstances, a willingness to shift the Association’s operating account to another lender will provide the Association with leverage to acquire the most favorable financing program.

 

Structuring The Deal
Once the Association has acquired authorization to borrow money and has located a lending institution, structuring the deal becomes the next significant step.

It is not unusual for an Association to borrow in excess of $ 1 Million to finance the purchase of recreational lands from a Developer or to perform significant renovation work to remedy structural defects such as those associated with balconies located in close proximity to the ocean. Lending institutions, with the assistance of counsel for the Association, can be creative in formulating a plan to achieve the financial goals of the Association. The most significant aspect is how the lending institution will secure its loan to the Association.

Unlike other private entities and individuals, a Condominium Association has the statutory right to raise money by a special assessment of its members. Under this scenario, a unit owner’s failure to pay a special assessment will constitute a lien on each condominium parcel for any unpaid assessments. The lien for unpaid assessments will also be subject to an award of interest and reasonable attorney’s fees incurred by the Association to collect or enforce the lien. This statutory right to pass and enforce a special assessment provides security to a lending institution that elects to lend money to an Association. Consequently, a lender will often accept an Assignment of the Association’s right, title and interest in and to all current and future assessments made by the Association against its unit owner members for the purposes of timely payment of all sums due to a lender. For example, an agreement for the purchase of a recreation lease and underlying property between an Association and lender will often include an Assignment which provides as follows:

“The Association hereby irrevocably and unconditionally assigns all of its right, title and interest in and to all special assessments now existing or hereinafter levied by the Association against its unit owner members which are made for the purposes of repayment of the loan or the payment of rent under any lease or lease on real property owned by the Association.”

The foregoing procedure provides the lender with assurance that the loan will be repaid. However, financing a special assessment is expensive when considering loan and interest charges. Certain unit owners may be opposed to being assessed finance charges when they are financially capable of paying the special assessment in a lump sum at the time the loan is acquired. Should a number of unit owners have the ability to pay the special assessment in a lump sum, this process would reduce the total amount of money to be borrowed by the Association along with incidental finance charges.

As a special assessment constitutes an encumbrance on property, the Association would negotiate elimination of any prepayment penalty charges should the loan in whole or in part be paid early. Consequently, elimination of a pre-payment penalty clause would enable the Association or a unit owner to avoid additional finance charges should they pay off the debt prior to the maturity date.

 

Typical Costs Associated With Financing
Should the Association elect to mortgage its property to acquire financing the following fees will be generated:

Bank loan fees, Bank counsel fees, corporate searches, Survey, Title insurance costs, accounting costs, Documentary stamps, Intangible documentary stamps on the amount of the note and mortgage, Environment assessment of property, Recording charges, The cost of amending the condominium documents if additional property is acquired by the Association.

The Association and its counsel should attempt to discuss and negotiate the above-listed fees with the lending institution prior to signing a commitment letter. The Association should never sign a commitment letter without first consulting with counsel. Once the commitment letter is signed, the Association may be obligated to pay a non-refundable fee. Moreover, attempting to re-negotiate the terms of the loan may delay the process as it would require reconsideration by the loan committee.

 

Conclusion
In closing, a condominium Association must identify its purpose in raising funds. The purpose of raising funds will dictate the procedure to be followed. If funds are to be raised for maintenance repairs, a special assessment can be passed without unit owner consent. Condominium documents typically authorize the Board of Directors of a Condominium Association to borrow funds without owner consent. However, certain condominium documents may require unit owner approval. To the extent that the Association elects to borrow funds to perform material alterations or to acquire a substantial addition to Association property, the condominium documents will govern the procedure to be followed. If the condominium documents are silent, seventy-five (75%) percent unit owner approval must first be acquired before a special assessment can be passed pursuant to Section 718.113 (2), Florida Statutes.

When attempting to acquire financing, look to the members of Association’s board of directors and its unit owners to identify lender’s that can provide the most favorable rate. The bank handling the Association’s operating account is often the best source of financing and may be willing to negotiate certain costs associated with financing. Likewise, conferring with an attorney that specializes in association work can often assist you in reducing the costs associated with obtaining a loan.

Most importantly, shop around and take advantage of the collective financial strength of the Association and its unit owner members.


Steven B. Lesser

Shareholder

 SLESSER@beckerlawyers.com

 

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Congratulations, Jeff Rembaum, Firm Members and Attnys at Kaye Bender Rembaum

Congratulations, Jeff Rembaum, Firm Members and Attnys at Kaye Bender Rembaum

  • Posted: Aug 30, 2022
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Jeffrey A. Rembaum Once Again Named to Florida Trend’s Legal Elite

Only 1.4% of Florida’s lawyers appear among the exclusive Florida Legal Elite, and Kaye Bender Rembaum is proud to announce attorney Jeffrey A. Rembaum, BCS has once again been selected.

Now in its 19th year, Florida Legal Elite presents the state’s top licensed and practicing attorneys selected by their peers. Florida Trend invited all in-state members of the Florida Bar to name attorneys whom they highly regard or would recommend to others. The list of top vote recipients was examined using Florida Bar membership status and histories. A panel of previous Legal Elite honorees from across the state representing different practice areas reviewed the list of finalists. Congratulations, Jeffrey!


Allison L. Hertz Named Co-Chair of Condominium & Planned Development Committee of The Florida Bar’s RPPTL Section.

The Real Property, Probate and Trust Law (RPPTL) Section of the Florida Bar announced that attorney Allison L. Hertz, BCS of Kaye Bender Rembaum has been named Co-Chair of its Condominium & Planned Development Committee. Ms. Hertz, a Board Certified Specialist in Condominium and Planned Development Law, joins a long line of the most preeminent and respected attorneys in this field of law to have held this position.

“I am honored and proud to serve as Co-Chair for the Committee and will continue to provide input for the betterment of all Florida community associations”, said Allison Hertz. Jeffrey Rembaum added, “Ms. Hertz is extremely knowledgeable in this body of law, and will no doubt be a valuable asset to the RPPTL committee.”

Ms. Hertz is also the Vice-chair of the Condominium & Planned Development Law Certification Review Committee, and she recently served as Chair of the Condominium & Planned Development Committee’s Hurricane Protection Subcommittee, and was a member of the Committee’s Emergency Powers Task Force.


KBR Attorneys Elevated to Firm Members

Danielle M. Brennan, Esq., BCS has been elevated to Firm Member at Kaye Bender Rembaum, P.L in Palm Beach Gardens, FL and Emily E. Gannon, Esq. has been elevated to Firm Member at Kaye Bender Rembaum, P.L in Pompano Beach, FL.

Danielle M. Brennan (pictured top left) is a Board Certified Specialist in Condominium and Planned Development Law. Ms. Brennan joined Kaye Bender Rembaum as an Associate Attorney in the Firm’s community association department in the Palm Beach Gardens’ office in April 2013. Ms. Brennan assists clients on all aspects of community association operations and enjoys leading presentations for managers and board members.

 

Emily E. Gannon (pictured bottom left) joined Kaye Bender Rembaum in April 2012, and assists the Firm’s association clients on all aspects of community association operations. Emily is also a frequent lecturer on community association law, which includes leading seminars providing CEUs for property managers and certifications for board members.

Congratulations to each new Firm Member of the Kaye Bender Rembaum team!


KBR’s Jeffrey Green Attains Florida Bar’s

Board Certified Specialist in Construction Law

The Florida Bar has confirmed Firm Member Jeffrey D. Green, to be officially certified in Construction Law.

Board certification is the highest level of recognition by the Florida Bar and demonstrates an attorney’s significant competency and experience in a specialty field of law. Attorneys must meet stringent application criteria before officially becoming certified, including satisfactory peer review assessments as it relates to proficiency, character, ethics and professionalism, completing the certification area’s continuing legal education requirements and passing a rigorous written examination. Only attorneys who have earned the “board-certification” distinction are allowed to describe themselves as legal “specialists” or “experts” in a specific field.

“Board Certification is an achievement I’m very proud of, and I am excited to continue assisting our clients in construction-related matters and all other areas of association law,” said Jeffrey Green. Michael Bender added, “This is a career milestone for Jeffrey that warrants recognition. He’s an extremely knowledgeable and skilled attorney and we appreciate all he has done for the Firm and its clients.”

Congratulations to Jeffrey Green on this impressive achievement.


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