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January Events for Board members and Managers: View our Calendar

January Events for Board members and Managers: View our Calendar

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TUE19

CONDOMINIUM BOARD MEMBER CERTIFICATION

WEBINAR Florida

CONDOMINIUM BOARD MEMBER CERTIFICATION  01/19/2021  12:00 pm – 2:00 pm  https://us02web.zoom.us/webinar/register/WN_z99HrslSTwOBYvSRCFGWFQ  Webinar Event Instructor: Andrew B. Black, Esq., B.C.S. Course #: 9630075 | Provider #: 0005092 CAM CE credit: 2 credits in IFM or ELE This webinar covers the essentials of condominium board membership, and is updated regularly to remain current with amendments to Florida legislation. In addition, this webinar satisfies Florida’s requirement for new condominium board members. It also serves as an excellent refresher course. This course is for Condominium Association Board Members only.

CH-CH-CHANGES – MATERIAL ALTERATIONS / SPECIAL ASSESSMENTS

WEBINAR Florida

CH-CH-CHANGES – MATERIAL ALTERATIONS / SPECIAL ASSESSMENTS by Katzman Chandler Wednesday, January 20, 2021 from 1:00 PM to 2:00 PM EST Learn what does and does not constitute a material alteration which requires membership approval. At some point, your Board will want to make alterations in the Community. Learn how to handle this process correctly from the start. Please join our Statewide Educators, Bill and Sue Raphan, as they present this fun and informative educational course online via Zoom Webinar Services. Space is limited to the first 150 registrants, so please do not delay! Provider #0007237 Course #9628492 1 hour Manager Continuing Education Elective Credits Register Today

Condo Craze & HOAs HOSTED BY – ERIC M. GLAZER, ESQUIRE SUNDAYS AT 11:00 a.m. ON 850 WFTL

Condo Craze & HOAs HOSTED BY – ERIC M. GLAZER, ESQUIRE SUNDAYS AT 11:00 a.m. ON 850 WFTL Jan 24 @ 11:00 am – 12:00 pm Condo Craze & HOAs HOSTED BY – ERIC M. GLAZER, ESQUIRE SUNDAYS AT 11:00 a.m. ON 850 WFTL The show is streamed live on the web at www.850wftl.com and on your mobile device. Presents a forum for Board members and owners to tell their side of the story. The show randomly has guest speakers who are experts on the daily problems associations encounter. All issues that our associations encounter each day are proper topics for discussion. Expect to hear from politicians, Board members, owners, tenants, community association managers, developers, community association accountants, construction industry personnel and other government officials. Listeners call in and ask questions of attorney Eric Glazer and his legal team as well as any guest present.

FIDUCIARY DUTY, BUSINESS JUDGMENT & FRAUD PREVENTION IN CONDOS AND HOAS / BOARD MEMBER PROTECTION

WEBINAR Florida

FIDUCIARY DUTY, BUSINESS JUDGMENT & FRAUD PREVENTION IN CONDOS AND HOAS / BOARD MEMBER PROTECTION by Katzman Chandler Wednesday, January 27, 2021 from 1:00 PM to 2:00 PM EST Learn about your Fiduciary Duty as a Board Member, when and how the Business Judgment Rule applies to Board decisions, and what protections are offered to Board Members through the Association’s Directors and Officers insurance. Find out the most common reasons for Board Members being sued, and learn how to discover and prevent fraud in your Association. Please join our Statewide Educators, Bill and Sue Raphan, as they present this fun and informative educational course online via Zoom Webinar Services. Space is limited to the first 150 registrants, so please do not delay! Provider #0007237 Course #9629161 2 hours Manager Continuing Education Elective Credits Register Today

Tips To Restore Your Shoreline and Prevent Erosion by SOLitude Lake Management

WEBINAR Florida

Tips To Restore Your Shoreline and Prevent Erosion by SOLitude Lake Management Wednesday, January 27 @ 2:00 pm (EDT) Kick off the new year with our first educational webinar of 2021! Shoreline erosion is a concerning reality that all lake and pond owners will face, but with informed management it is possible to reverse sedimentation and set up your waterbody for continued success. Unlike common fixes, which tend to lack aesthetic appeal or long lasting stabilization, stakeholders can now combine new solutions with modern buffer management techniques to achieve both! Join our experts to learn about the best strategies to reinforce your shoreline AND make it a focal point on your property. Registration Is Free. Spots Are Limited. Register Today!

GET BOARD CERTIFIED AND FULFILL YOUR 2021 LEGAL UPDATE CREDITS! by Condo Craze and HOAs

GET BOARD CERTIFIED AND FULFILL YOUR 2021 LEGAL UPDATE CREDITS! by Condo Craze and HOAs JANUARY 28th, 6:00 P.M Managers: Our Course is now approved for Three 2021 Legal Update Credits. Course Number: 9630640 TO REGISTER: CLICK HERE: OR CALL OUR OFFICE AT: 954-983-1112 CONDO AND HOA EDUCATION IS BACK! GET BOARD CERTIFIED FROM THE COMFORT OF YOUR OWN HOME. REMEMBER, IF YOU DON’T GET CERTIFIED WITHIN 90 DAYS OF GETTING ON THE BOARD – YOU ARE OFF THE BOARD.

Condo Craze & HOAs HOSTED BY – ERIC M. GLAZER, ESQUIRE SUNDAYS AT 11:00 a.m. ON 850 WFTL

Condo Craze & HOAs HOSTED BY – ERIC M. GLAZER, ESQUIRE SUNDAYS AT 11:00 a.m. ON 850 WFTL Jan 31 @ 11:00 am – 12:00 pm Condo Craze & HOAs HOSTED BY – ERIC M. GLAZER, ESQUIRE SUNDAYS AT 11:00 a.m. ON 850 WFTL The show is streamed live on the web at www.850wftl.com and on your mobile device. Presents a forum for Board members and owners to tell their side of the story. The show randomly has guest speakers who are experts on the daily problems associations encounter. All issues that our associations encounter each day are proper topics for discussion. Expect to hear from politicians, Board members, owners, tenants, community association managers, developers, community association accountants, construction industry personnel and other government officials. Listeners call in and ask questions of attorney Eric Glazer and his legal team as well as any guest present.

 

 

 

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MASTER ASSOCIATION V. SUB ASSOCIATION – WHO WINS?  (Part 1) By Eric Glazer, Esq.

MASTER ASSOCIATION V. SUB ASSOCIATION – WHO WINS?  (Part 1) By Eric Glazer, Esq.

  • Posted: Jan 18, 2021
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MASTER ASSOCIATION V. SUB ASSOCIATION – WHO WINS?  (Part 1)

By Eric Glazer, Esq.

Published January 18, 2021

A very interesting case was just decided by Florida’s Second District Court of Appeal.  RIVIERA-FORT MYERS MASTER ASSOCIATION, INC., v. GFH INVESTMENTS, LLC.  2020 WL 7767856.  To simplify, in a mixed-use community, meaning a community made up of commercial property and residential housing, the Master Association adopted seven amendments to the community’s master declaration. The court referred to the sub associations as the “Liner Buildings.”  In general terms, the amendments addressed the Master Association’s authority to approve proposed uses of the property located in the sub communities, (Liner Buildings) increased assessments on them, and imposed additional restrictions on the Liner’s tenants.

I write about the case because it is a great learning case about the relationship between a Master and a Sub and about community living in general.  The court said so much that we will break up this blog over a two week period.  Let’s start:

Are all amendments voted on by owners to the governing documents legal?

 “In determining the enforceability of an amendment to restrictive covenants, the test is one of reasonableness.”Holiday Pines Prop. Owners Ass’n v. Wetherington, 596 So. 2d 84, 87 (Fla. 4th DCA 1992). This court defined “reasonable” as “not arbitrary, capricious, or in bad faith.” Hollywood Towers Condo. Ass’n v. Hampton, 40 So. 3d 784, 787 (Fla. 4th DCA 2010). In other words, as we stated in Holiday Pines, the modification of restrictions cannot “destroy the general plan of development.” Holiday Pines, 596 So. 2d at 87 (citing Nelle v. Loch Haven Homeowners Ass’n, 413 So. 2d 28 (Fla. 1982)). Amendments which cause “the relationship of lot owners to each other and the right of individual control over one’s own property” to be altered are unenforceable. Id. at 88. Such an alteration is considered a “radical change of plans.” Id. Klinow v. Island Court at Boca W. Prop. Owners’ Ass’n, 64 So.3d 177, 180 (Fla. 4th DCA 2011) (footnote omitted). Klinow further defined “radical change” as “a change which would create an inconsistent scheme, or a deviation in benefit from that of the grantee to that of the grantor.” Id. (citing FlamingoRanch Estates, Inc. v. Sunshine Ranches Homeowners, Inc.,303 So. 2d 665, 666 (Fla. 4th DCA 1974)).

Can the HOA Be More Restrictive than the local zoning authority?

It is well established that restrictive covenants can be more restrictive than limitations imposed by municipalities. See, e.g., Luani Plaza, Inc. v. Burton, 149 So. 3d 712, 714–16 (Fla. 3d DCA 2014) (allowing a business owners’ association to prohibit residential use of a commercial property despite municipal permission for residential use); Stuart Sportfishing, Inc. v. Kehoe, 541 So. 2d 169, 170 (Fla. 4th DCA 1989) (holding that a less-restrictive zoning ordinance did not control over a more-stringent restrictive covenant); Tolar v. Meyer, 96 So. 2d 554, 556 (Fla. 3d DCA 1957) (holding that a zoning decision allowing property to be used as a church did not control over a restrictive covenant prohibiting such a use).

Do Owners Give Up Some Freedom When They Move Into a Condo or HOA?

owners of property in condominium complexes necessarily accept a greater degree of restriction on their property rights); Hidden Harbour Estates, Inc. v. Basso, 393 So. 2d 637, 640 (Fla. 4th DCA 1981)

Next week I’ll write about some other facets of the law discussed in the opinion.

 

 

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Financial Screening of Purchasers: How Far Is Too Far? by Kaye Bender Rembaum

Financial Screening of Purchasers: How Far Is Too Far? by Kaye Bender Rembaum

  • Posted: Jan 14, 2021
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Financial Screening of Purchasers: How Far Is Too Far?

by Kaye Bender Rembaum / Rembaum’s Association Roundup

 

A few months back a case came before the county court in the 20th Judicial Circuit for Collier County, wherein a prospective buyer challenged the validity of a board-adopted rule which required that all prospective buyers provide two years of tax returns with their application for ownership approval. This requirement was in addition to the background check and credit check that were also required. While this is only a county court case and, therefore, has no precedential value other than to the parties themselves, there are principles addressed of which associations and managers should be aware; even though many learned attorneys would opine that the conclusions of the court are legally flawed under the facts of the case and, if appealed, would likely be overturned. Nevertheless, there are still nuggets of knowledge that can be gleaned from this case.

In this case, Mech v. Crescent Beach Condominium Association, Inc., Case No. 19-SC-3498, decided June 2020, the purchaser, who was the plaintiff, was seeking to buy a unit at Crescent Beach Condominium for $400,000, which was to be paid in cash. The purchaser purportedly had a clean background and a credit score of 800. Nonetheless, the board required that, like all other prospective purchasers at the condominium, this purchaser needed to produce his tax returns in order for the association to approve the transfer. The purchaser refused to provide his tax returns and cited his good credit score and clean background as evidence enough for approval. Eventually, an impasse was reached, and the purchaser canceled the contract. Then he brought the county court lawsuit challenging the requirement. (Generally speaking, typically under current Florida law, the purchaser would not have legal standing to even bring the claim against the association; but it does not appear that this legal infirmity was raised by the association, which allowed the case to proceed.)

The purchaser challenged the rule, arguing that the rule was not within the scope of the association’s authority to adopt, nor did it reflect reasoned decision-making. (It is noteworthy to point out that, after the initiation of the lawsuit, the association amended its declaration of condominium to provide that the association may require tax returns in an application for approval of a sale. However, this is not relevant to the conclusions of the Court in this case since it occurred after the litigation was filed.)

The association argued that the tax returns are necessary because they provide more information than a credit report and could help ensure that the potential purchaser is “a good credit risk.” The Court, however, did not agree, calling the argument “nonsensical.” The Court goes on to identify what this judge considers to be the best indicator of a person’s financial history, and as a result, it is the only information the association is allowed to seek. (We note that this conclusion is also without a stated legal basis.)

In the final judgment, some might argue that the Court goes way beyond what proper judicial consideration and conclusions typically contain and indicates that she could find “NO justification for the invasive requirement that a full, or even partial, return would be required when, in fact, the board already requires a full background check and credit check.” While no legal support for the conclusion was provided, the Court held that the request for tax returns was invasive and unnecessary and that the requirement was “shocking.”

 

The Court objected to the blanket requirement that applied to every applicant regardless of the results of their background and credit checks. Had the tax returns only been required when an applicant’s credit history showed a history of financial instability or delinquencies, the rule may have been upheld by the Court. How-ever, the Court held that “to take a position that ‘every person’ who applies to be a member at [the association] is patently unreasonable and shall be stricken.” Lastly, also without a legal basis or ability, the Court ordered the association to strike all reference in its condominium documents which require potential purchasers to produce tax returns unless the association can show good cause to request the information.

A brief discussion regarding the adoption of rules and regulations is necessary to highlight lessons that can be learned from this case. Generally, both condominium and homeowners association governing documents will typically provide that the board of the directors has the authority to adopt rules and regulations for the community. While some governing documents may contain restrictions requiring a membership vote to approve new rules, it is common for the governing documents to provide the board with the authority to adopt rules and regulations. (Careful review of the documentary authority for each community is recommended as some may limit the rule-making authority to common areas only and not to the residential property within the community.)  Although the board is generally authorized to adopt rules and regulations, those rules and regulations must not conflict with any provision expressly set out in the governing documents or reasonably inferred from them, and they must be reasonable. (This should be contrasted with covenants recorded in the County’s official records, which may be unreasonable and still be legally enforceable under long-standing Florida case law.)

 

In Beachwood Villas Condominium v. Poor, et. al., a 1984 Fourth District Court of Appeal (4th DCA) case  in which several owners challenged rules enacted by their association’s board of directors, the Court noted that there could be two sources of use restrictions: (i) those set out in the declaration of condominium and (ii) those adopted by the board. As to the use restrictions set out in the declaration, the court held that such restrictions are “clothed with a very strong presumption of validity,” as initially provided in Hidden Harbor Estates v. Basso (a 1981 4th DCA case).

In examining board-adopted rules, the court first must determine whether the board acted within its scope of authority—in other words, whether the board had the express authority in the documents to adopt the rule in the first place. If the answer is “yes,” the second question to determine is whether the rule conflicts with an express provision of the governing documents or one that is reasonably inferred. (If the documents are silent on an issue, the inference is that it is unrestricted. Adopting a rule to restrict a topic that the declaration is otherwise silent about would conflict with the inferred unrestricted use and therefore be unenforceable.)  If these first two issues are found to exist, the court will then determine if the rule is reasonable. The board’s exercise of its reasonable business judgment in adopting a rule is generally upheld so long as the rule is not “violative of any constitutional restrictions and does not exceed any specific limitations set out in the statutes or condominium documents.”

 

In examining your own board-adopted rules, ask the following:

  • Did the board have the power to adopt the rule?
  • Is the rule in accord with with the declaration, articles of incorporation, or bylaws?
  • Is the rule reasonable under the circumstances? (While ultimately only a court can make this final determination, the board should use its best judgment, with assistance of its counsel, to reach this decision.)

If the answer to these three questions is “yes,” then the rule should be found to be valid and enforceable by the court upon an owner challenge.

Ultimately, what can be gleaned from Mech v. Crescent Beach Condominium Association Inc. is that even if the association acts reasonably when adopting rules and even when amending the declaration, a lower court judge can reach almost any decision it wishes. Had the provision at issue only required tax returns when the background or credit checks revealed that the prospective purchaser had a history of financial irresponsibility, the provision may have withstood judicial challenge by this particular judge. Additionally, had the provision requiring tax returns been set out in the declaration before the initiation of the lawsuit, the outcome may have been different under existing, well-established case law.

Bottom line, whenever the board is considering new rules, it is recommended that the board consult with the association’s legal counsel before adopting them.

Jeffrey Rembaum, Esq.

Board Certified Specialist in Condominium and Planned Development Law and a community association lawyer with the law firm Kaye Bender Rembaum, in its Palm Beach Gardens office.

His law practice consists of representing condominium, homeowners, and cooperative associations, developers and unit owners throughout Florida.

He can be reached by email at JRembaum@KBRLegal.com or by calling 561-241-4462.

 

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BEFORE YOU INSTALL THAT NEW RING DOORBELL By Eric Glazer, Esq.

BEFORE YOU INSTALL THAT NEW RING DOORBELL By Eric Glazer, Esq.

BEFORE YOU INSTALL THAT NEW RING DOORBELL

By Eric Glazer, Esq.

It’s becoming impossible to keep up with technology.  Just when you think you bought the latest, greatest computer or cell phone the world may ever see, a month later there’s new technology that makes you device already seem outdated.  It’s a never ending cycle.  Well, one new technological advance is the RING doorbell, which is a doorbell that let’s you see who is at your front door, by simply glancing at your cell phone.  I have one for my home and another for my office.  It even let’s you speak to and hear the person who is at your door, even when you are not home.  In fact, you can be anywhere in the world.  It really is fantastic technology that everyone is taking advantage of.  BUT IF YOU LIVE IN A CONDOMINIUM…..YOU CAN’T.

Let’s again review Florida Statute 718.113(2)(a):

Except as otherwise provided in this section, there shall be no material alteration or substantial additions to the common elements or to real property which is association property, except in a manner provided in the declaration as originally recorded or as amended under the procedures provided therein. If the declaration as originally recorded or as amended under the procedures provided therein does not specify the procedure for approval of material alterations or substantial additions, 75 percent of the total voting interests of the association must approve the alterations or additions before the material alterations or substantial additions are commenced. This paragraph is intended to clarify existing law and applies to associations existing on July 1, 2018.

So the question is…..is the installation of a RING doorbell on your condominium front door, a material alteration to the common elements that requires a vote of the owners? In Persi v. Playa Del Mar Association, Case No. 19-02-7292, March 16, 2020, Arbitrator Keith Hope held that it was and upheld the association’s right to remove it.  The arbitrator first again indicated the definition of a material alteration:

“[A]s applied to buildings, the term material alteration or addition ‘means to palpably or perceptively vary or change the form, shape, elements or specifications of a building from its original design or plan, or existing conditions, in such a manner as to appreciably affect or influence its function, use or appearance

Applying this test, the Arbitrator held that Petitioners’ installation of the ring video doorbell was a material change to the appearance of the common property door, and required installation of electrical wiring within the common property walls. Moreover, it is undisputed that Petitioners’ ring video doorbell contains a security camera that captures both audio and video of persons and activities within its field of view. Installation of a security camera on or in a condominium’s common property is deemed a material alteration. Dellagrotta v. West Coast Vista Association, Inc., Arb. Case No. 2013-02-7351, Summary Final Order (October 4, 2013).

While it’s hard to say the arbitrator’s reasoning was not correct, arbitration cases have long held that when the Board wants to use the benefits of new technology, it’s suddenly not a material alteration but a wise business judgment decision.

For example:

In the arbitration case of A. N. Inc. v. Seaplace Association, Inc., Arb. Case No. 98-4251, Summary Final Order (Oct. 29, 1998), replacement of all of the windows in the condominium with an upgraded version, with a tilt-out cleaning feature, tinting and heavier glass, was held not to require a unit owner vote. The arbitrator noted that the choice of the type of window used is a decision within the board’s business judgment and that “a board in the exercise of its well-reasoned and documented judgment could and should take advantage of changes in technology, building materials, and improved designs …” See also, Kreitman v. The Decoplage Condominium Association, Inc., Arb. Case No. 98-4711, Final Order (July 30, 1999) (board’s decision to replace worn hallway carpets with longer lasting solution-dyed, woven carpet was not subject to unit owner approval).

 

In light of these cases, why are upgraded windows and carpets not considered a material alteration, but upgraded doorbells that take advantage of the latest technology are?  Just like the Board, I don’t see the harm in owners having the right to take advantage of “changes in technology” and having the ability to install a doorbell that provides better safety, security and ease of use.

 

 

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Association Rules After Expiration of the Governor’s State of Emergency Order for COVID-19 by Kaye Bender Rembaum

Association Rules After Expiration of the Governor’s State of Emergency Order for COVID-19 by Kaye Bender Rembaum

  • Posted: Jan 08, 2021
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Association Rules After Expiration of the Governor’s State of Emergency Order for COVID-19

by Kaye Bender Rembaum

By the time you read this article, the governor’s declared state of emergency as related to the coronavirus may have reached an end. If not, well, hopefully it will soon enough due to significant diminution of the coronavirus. What then? What happens to the rules adopted by an association in an effort to combat the coronavirus? Can an association turn away guests of residents? Can the number of people allowed to use the amenities, such as the pool, be limited? Just how far can the board go in its efforts to create reasonable rules?

The emergency powers set out in §720.316 of the Homeowners’ Association Act, §718.1265 of the Condominium Act, and §719.128 of the Cooperative Act begin essentially the same. They each begin with the following phrase:

To the extent allowed by law and unless specifically prohibited by the declaration or other recorded document [or declaration of condominium, its articles or bylaws or cooperative documents, as the case may be], 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 association [or condominium or cooperative as the case may be]   is located, may, but is not required to, exercise the following powers:…

 

In addition, they each end essentially the same, too, as follows:

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.

 

Therefore, the emergency power legislation contemplates use of the emergency powers in response to damage caused by an event for which a state of emergency has been declared by the governor and for a reasonable amount of time after the state of emergency is over, as necessary. But, as related to the coronavirus, can the emergency powers still be relied upon at the conclusion of the governor’s declared state of emergency? It is undisputable that the emergency power legislation was drafted in response to hurricanes, where actual damage to buildings and other property occurred, and not for the epidemic of an unexpected deadly virus. But, at least this ever-important legislation lent its applicability to the coronavirus situation and was relied upon by boards and lawyers alike to allow association board members to approve rules in an effort to contain the coronavirus. In response to the virus, some association boards restricted realtor showings and construction work, limited or even prevented guests, and the list goes on and on. Often these rules were adopted with limited notice to the members, sometimes outside of properly noticed meetings (which, depending on the situation may have been, was permitted at the time pursuant to the statutory emergency powers, which still require providing reasonable notice under the circumstances). The further in time we are from the end of the declared state of emergency, the less the emergency powers legislation can be relied upon…most especially because they were drafted with a different type of emergency in mind.

Therefore, in order to ensure your community’s, by now likely revised and lessened, coronavirus rules and regulations remain valid and enforceable, it is important to review the basics. Board members have a fiduciary duty to their association members. That duty supports board-promulgated rules that promote the health, happiness, and peace of mind of the majority of the members. Thus, rules can be adopted for different reasons. At times, a rule may be necessary under the circumstances. For example, say the local health department issues a special bulletin regarding a significant rise in coronavirus within a very limited geographic region in which an association has membership consisting of aged members. Likely, that association may reasonably adopt more stringent rules than an association located in an area with very few cases.

Clearly, if an association is going to restrict vendor and guest access or the rights of the members to use amenities that they otherwise have a lawful right to use, then the board better be able to create the necessary nexus between the situation at hand and rule at issue.

 

Rules Must Be Reasonable

In Hidden Harbour Estates v. Norman, 309 So. 2d 180 (Fla 4th DCA 1975), unit owners challenged a board-adopted rule prohibiting the use of alcoholic beverages in certain areas of the common elements of the condominium. The trial court found the rule invalid, holding that rules must have some reasonable relationship to the protection of life, property, or the general welfare of the residents of the condominium to be valid and enforceable. The Fourth District Court of Appeal, however, held that the rule was valid because the rule was reasonable. The Court explained that there is a principle “inherent to the condominium concept” that each unit owner must give up a certain degree of freedom in a condominium in order to promote the health, happiness, and peace of mind of the majority of unit owners. The Court concluded that the test for the validity of a rule is reasonableness. An association is not permitted to adopt arbitrary or capricious rules that do not relate to the health, happiness, and enjoyment of the unit owners. However, if a rule is reasonable, the association is permitted to adopt it.

 

Rule Validity

In Hidden Harbour Estates v. Basso, 393 So. 2d 637 (Fla 4th DCA 1981), the association sought to enjoin unit owners from maintaining a shallow well on their property. The Fourth District Court of Appeal noted that there are two categories of use restrictions: (i) use restrictions set out in the declaration of condominium and (ii) rules adopted by the board or the refusal of the board to allow a certain use when the board has the authority to grant or deny such use. The Court concluded that use restrictions set out in the declaration are “clothed with a very strong presumption of validity” because unit owners purchase their unit knowing of and accepting the restrictions to be imposed. However, rules adopted by the board do not enjoy the strong presumption of validity and must be “reasonably related to the promotion of the health, happiness, and peace of mind of the unit owners.” In this case, the board articulated three reasons for refusing to allow the unit owners to install a well on their property. However, the Court held that the there was no evidence to support the association’s articulated reasons for denial, and therefore the association failed to demonstrate a reasonable relationship between the denial of the application and the objectives which the association argued the denial would achieve. Because the board’s denial was not reasonable, it was held invalid.

 

Rules Cannot Contravene Declaration or Rights Inferable Therefrom

In Beachwood Villas Condominium v. Poor, 448 So. 2d 1143 (Fla 4th DCA 1984), unit owners challenged two rules adopted by the board of directors of the association which regulated unit rentals and the occupancy of units by guests during the owner’s absence. The trial court held that the rules were invalid because they exceeded the scope of the board’s authority. However, the Fourth District Court of Appeal reversed the trial court and held that the rules were within the scope of the board’s authority. The Court looked to the decision in Hidden Harbour v. Basso, and the two sources of use restrictions: those set out in the declaration of condominium and those adopted by the board. The Court noted that board-adopted rules are reviewed first by determining whether the board acted within the scope of its authority and second, whether the rule reflects reasoned or arbitrary and capricious decision-making.

 

The Court determined that a board-adopted rule that does not contravene either an express provision of the declaration or a right reasonably inferable therefrom will be found valid. In other words, if the board has the authority to adopt the rule, and the rule does not conflict with the declaration or any right reasonably inferable from the declaration, the board is acting within the scope of its authority to adopt the rule. In this case, the unit owners did not challenge the reasonableness of the rules, so the Court ended its analysis with the question of the board’s authority to adopt the rule and did not move on to the reasonableness considerations discussed in Hidden Harbor v. Basso. As the rules adopted by the board did not contravene either an express provision of the declaration or any right inferable therefrom, the Court held that the rules were within the scope of the board’s authority, and were, therefore, valid.

 

Remember, when the board publishes an agenda which provides rules will be considered for adoption, that if the rule governs a member’s use of their property or unit then it requires a 14-day notice to all members. The notice must also be posted conspicuously on the property 14 days in advance of the meeting. Rules affecting the common area and common elements only require the typical 48- hour board meeting notice. Of course, your community’s governing documents may also have requirements regarding rule adoption, and if so, they likely should be adhered to as well. After board adoption the rules need to be sent out to the entire community. In addition, homeowners’ association rules should be recorded in the county’s official records, too.

 

It is a given that as society progresses to normal, rules that were needed yesterday can become outdated today. Be sure to be in touch with your association’s lawyer regarding the continuation of any previously adopted coronavirus restrictions and any proposed new rules prior to board adoption to help ensure their continued enforceability.

 

The Kaye Bender Rembaum Team Remains Available To You and Your Community Association

The health and safety of your Community and all residents is very important to us.

We also realize that our clients have uncertainty and concerns around the continuing operation of your Community, and our team of attorneys will remain available to all of you during these times.

Be sure to check out our very useful and informative COVID-19 section on our website, which is updated regularly, as we continue to follow developments affecting community associations. You can visit it by clicking HERE.

 

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With all the Rent, Evictions issues we are facing we thought you should remember the Foreclosure Act of 2009 and the Florida Residential Landlord and Tenant Act. by Kaye Bender Rembaum

With all the Rent, Evictions issues we are facing we thought you should remember the Foreclosure Act of 2009 and the Florida Residential Landlord and Tenant Act. by Kaye Bender Rembaum

  • Posted: Dec 31, 2020
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Protecting Tenants at Foreclosure Act of 2009 – Resurrected and Here to Stay

Posted by   Kaye Bender Rembaum

On May 20 2009, just after the peak of the national foreclosure crisis, a federal statute was enacted to help protect a residential tenant who was renting a unit subject to foreclosure from being evicted without being afforded a reasonable amount of time to find alternative housing.

The federal law was known as “Protecting Tenants at Foreclosure Act of 2009”. It generally provided that a bona fide tenant was authorized to remain in a residential unit that was acquired by a new party through foreclosure for the balance of the unexpired term of the lease, unless the unit was acquired by a party that intended to occupy the unit, in which case the tenant was authorized to remain in the unit for ninety days after receiving a notice to vacate.

For purposes of the federal law, a “bona fide tenant” was a tenant who was not the mortgagor or the parent, spouse, or child of the mortgagor and who was under a lease that was the result of an arms-length transaction where rent was not substantially lower than fair market value.

The federal law assured that residential tenants would have a reasonable amount of time to plan and find alternative housing after the unit they were renting was foreclosed and acquired by a new party. However, it also assisted community associations in finding desirable tenants to rent units they owned through the foreclosure of the association’s assessment lien for a fair market value, which then helped the association recoup unpaid assessments and bad debt otherwise attributable to the unit.

The protections of the federal law were intended to “sunset”, which is a term meaning ”to expire”, on December 31, 2012. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) later extended the sunset date to December 31, 2014. Once the federal law finally expired on January 1, 2015, tenants of residential property in Florida no longer had any special protection from eviction by parties acquiring such units by foreclosure.

Then, approximately six month later, the Florida legislature adopted its own version of the law as part of the Florida Residential Landlord and Tenant Act. Specifically, section 83.561, Florida Statutes, became effective on June 15, 2015, and provides that “if a tenant is occupying a residential premises that is the subject of a foreclosure sale, the purchaser named in the certificate of title is permitted to give a tenant a thirty day notice to vacate and the tenant must comply”. Therefore, as of June 15, 2015, residential tenants had a much shorter timeframe of thirty days’ notice to vacate a unit acquired by foreclosure.

Finally, on June 23, 2018, the federal Protecting Tenants at Foreclosure Act became effective again. It no longer contains any sunset or expiration date; so it is here to stay. Since a federal law will supersede a Florida law when it is more stringent, the provisions of the Federal Protecting Tenants at Foreclosure Act giving tenants more time to vacate residential property after it is acquired by a new party through foreclosure will apply to transactions in Florida despite the shorter time frame provided by state statute.

 

There is help for Landlords and Property managers: You can view the Process of Evictions where you can learn what are the Laws of Evictions in your State

Learn the Eviction Process in the State your Property is Located.

Each State has different things to do in an eviction, most all evictions start with some kind of termination of the tenancy either by the Landlord or the Tenant. Every State has Laws that make it necessary to follow that State’s Process in the event of an Eviction. Learn The Eviction Process in your State. Landlords and Tenants find information on how to evict a tenant or how to defend an eviction.

 

Jeffrey A. Rembaum, Esq., B.C.S.

Jeffrey Rembaum, Esq. is a community association lawyer with the law firm Kaye Bender Rembaum,
in its Palm Beach Gardens office. His law practice consists of representing condominium,
homeowners, and cooperative associations, developers and unit owners throughout Florida.
He can be reached by email at JRembaum@KBRLegal.com or by calling 561-241-4462

https://rembaumsassociationroundup.com/

 

 

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Florida Condominium Act, extensively regulates amendments to condominium documents. by Becker

Florida Condominium Act, extensively regulates amendments to condominium documents. by Becker

Florida Condominium Act, extensively regulates amendments to condominium documents.

Joseph E. Adams / Becker
BlogPublication | Florida Condo & HOA Law Blog

 

Q: After the unit owners in a condominium association vote to approve an amendment, is there a time limit or deadline by which the amendment must be recorded with the county? (M.A. via e-mail)

A: Chapter 718 of the Florida Statutes, known as the Florida Condominium Act, extensively regulates amendments to condominium documents. However, the Act does not contain a specific deadline for when properly adopted amendments to the condominium documents must be recorded.

Section 718.110(3) of the Act states that amendments to the declaration are effective when properly recorded in the public records of the county where the declaration is recorded. Similarly, Section 718.112(1)(b) of the Act states that amendments to the articles of incorporation or bylaws are not valid unless recorded in the public records of the county where the declaration of condominium is recorded. Further, Chapter 617, the Florida Not For Profit Corporation Act, provides that amendments to the articles of incorporation must be filed in the office of the Department of State.

In my opinion, the recording of such amendments is a ministerial act that the board would be required to undertake within a reasonable time of the approval of the amendment. While there is room debate what is reasonable, I would say absent unusual circumstances (such as an intervening legal challenge or some after-discovered error), 30 days from approval would be a reasonable time frame.

However, there is also no specific prohibition in the statute preventing an association from recording an amendment long after the owner vote. I occasionally see situations where an association failed to record an amendment due to changes in the board or management or other circumstances, and records an amendment a year or longer after its approval. This is obviously not an ideal situation since you might have new owners who did not get a chance to vote on the amendment and who could claim that they bought there unit based on what was in the public records.

 

Q: Can you explain what a “material alteration” is? We have a constant argument in our condominium association, usually driven by one particular owner, over what the board can and cannot do. (J.F., via e-mail)

A: This is one of the most common areas of disputes in condominiums. As you probably know, Section 718.113(2) of the Florida Condominium Act provides that there can be no material alterations or substantial additions to the common elements except as authorized by the declaration of condominium. If the declaration is silent, then 75 percent of all voting interests must approve the alteration or addition (there is usually one voting interest per unit).

The standard still used by the courts today comes from a decision from a Florida appeals court rendered almost 50 years ago. In ruling that a unit owner’s closing in a screened lanai with windows was a material alteration, the court stated that the term means “to palpably or perceptively vary or change the form, shape, elements or specifications of a building from its original design, or current condition, in such a manner as to appreciably affect or influence its function, use or appearance.” Using this test, appellate courts have ruled that changing the exterior color scheme of condominium buildings is a material alteration, as is changing mansard roof shingles made of cedar to tile type shingles.

As with most rules, there are exceptions, one being the so-called “necessary maintenance exception,” which originates from a series of appellate court cases from the Second District Court of Appeals (which includes southwest Florida). These cases basically say that certain changes can be made without and owner vote when necessary to comply with law or when necessary for the proper maintenance and preservation of the condominium property.

 

Joe Adams is an attorney with Becker & Poliakoff, P.A., Fort Myers.

Send questions to Joe Adams by e-mail to jadams@beckerlawyers.com.

Past editions may be viewed at floridacondohoalawblog.com.

 

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We are getting ready for this year, remember: When you keep us informed we can use this to keep the industry informed. | SFPMA

We are getting ready for this year, remember: When you keep us informed we can use this to keep the industry informed. | SFPMA

We are getting ready for this year, we offer many services for members. When you keep us informed we can use this to keep the industry informed.

We ask our members about Advertising
– In the next week we have information that will be sent directly to our members.
– Advertising includes: On our Website, On the Directory Categories, In our Email Blast and our Magazine, Florida Rising Magazine.
These when sent go out to industry professionals. Boards for Condos and HOA’s, Managers and YOU if you sign up.
Be safe and healthy
—————-
As we are reopening let your membership with us help you get in front of clients all over Florida
Here is some information about SFPMA.
What you can expect and rely upon with your membership.
We are a multi-member property management organization in the State of Florida. Expand your professional network, connect with those who work directly with Professionals in our Industry that may not necessarily know about your business.
Take advantage, meet like minded professionals and opens up opportunities for future business ventures and lifelong partnerships.
Through your Membership:
1. You are listed on the Website Members Directory. – marketed to clients all over Florida.
2. You are also listed on the Magazine Directory.- Our publication is sent each month to over 230,000+ Subscribers and Clients keeping them up to date on the the Industry.
3. Members can Write Articles, Send us Company News and Promotions we send to Thousands of Industry Professionals.
Let them get to know what you do! – Remember Send us information about your company! We will resend this out keeping everyone informed on the Services you Offer.
4. We publish many Events each month that are listed on our Upcoming Events Calendar. Licensing Become a CAM, Webinars for our industry and Board Education…..
It starts with: Membership and being listed on the Florida Directory. What we will offer You! Finding the top Companies that work in our Industry is important for Property Managers, Condo & HOA Board Members.
Happy New Year from all of us at:
~SFPMA
From Frank J Mari and Our Team.
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Washington, D.C. Update: Bipartisan Emergency COVID Relief Act of 2020

Washington, D.C. Update: Bipartisan Emergency COVID Relief Act of 2020

  • Posted: Dec 10, 2020
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Washington, D.C. Update: Bipartisan Emergency COVID Relief Act of 2020

by  Omar Franco of Becker

Tuesday evening, the House passed HR 8900, an appropriations Continuing Resolution (“CR”) that extends current government funding levels through the end of Friday, December 18th. Its intent is to avoid disruption of relief efforts while Congress continues to work toward an agreement on a longer-term omnibus appropriations bill to fund the federal government for the FY2021. Further complicating negotiations is the renewed push on the Hill to pass additional COVID relief legislation. Any legislation to provide pandemic relief or economic stimulus before the end of the year will most likely need to pass as part of a broader appropriations package, intertwining the fate of both legislative efforts. The Senate is expected to pass the CR with enough time to allow President Trump time to sign it into law before midnight on Friday evening.

The bipartisan “908 coalition” continued efforts to reach agreement on the remaining sticking points of coronavirus legislation (state and local aid and liability reform) will garner most of the media attention as the legislative year ends, but the expected final passage of the CR is significant as well. In addition to giving Congress an additional week to find consensus on an omnibus bill, COVID legislation, or both by avoiding a shutdown, the CR included a few potentially notable health extenders as the pandemic is expected to worsen in the coming weeks. Medicare, Medicaid, FDA, and public health extenders included in this CR would:

  • Extend the Medicare work geographic index floor
  • Extend the delays of Medicaid disproportionate share hospital (DSH) reductions
  • Extend funding for low-income assistance programs including State health insurance programs like CHIP, aging and disability resource centers, and community health centers
  • Extend funding for the National Health Service Corps and teaching health centers that operate graduate medical education programs

To read the relief bill’s outline, please click here to read the Bill. Becker’s Federal Lobbying Team will continue to monitor these developments as they evolve and will share with you as soon as information becomes available.

 

Omar Franco is the Managing Director of Becker’s Washington, D.C., office. He currently represents a wide variety of clients including Fortune 500 companies, small businesses, higher education institutions, trade associations, non-profit organizations, and municipal governments

Omar Franco
Managing Director
Washington, D.C.
202.621.7122
202.731.3401
OFRANCO@beckerlawyers.com

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Is It a Limited Common Element? By: Michael Dermody, Esq. of BECKER

Is It a Limited Common Element? By: Michael Dermody, Esq. of BECKER

  • Posted: Dec 02, 2020
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Is It a Limited Common Element?

By: Michael Dermody, Esq.  of Becker

Most condominium unit owners may think that limited common elements are those areas outside the condominium unit that are part of the common elements, but which are used only by a specific unit owner.  However, the Florida Condominium Act defines “limited common elements” as “those common elements which are reserved for the use of a certain unit to the exclusion of all other units, as specified in the declaration.” (FS 718.103(19), emphasis added). Thus, the determination of whether a common element (i.e., any area not included within the unit boundaries) is a “limited common element” depends solely upon the designation set forth in the property’s declaration. Brown v Rice, 716 So.2d 807 (5th DCA 1998).

 

This requirement that limited common elements (“LCE”) must be “specified in the declaration” can be crucial when it comes to assigning maintenance responsibility.  While maintenance of common elements (of which LCE are a subset) is statutorily the responsibility of the association, the Condominium Act provides that “the declaration may provide that certain limited common elements shall be maintained by those entitled to use the limited common elements…”  FS 718.113(1).  However, the fact that unit owners are assigned the maintenance obligation in the declaration for areas outside of their unit under their exclusive control may not mean much if the area is not designated as a limited common element in the declaration of condominium; in such case the declaration may be assigning maintenance responsibility for something that does not technically exist.  Without such specific designation the area would remain a part of the common elements, and the maintenance responsibility of the association.

 

When patios and balconies are associated with units, they are usually plainly marked as limited common elements in the unit diagrams and are thus “specified.”   But there are less obvious things external to a unit, but used exclusively by the unit owner, that may escape specification in the declaration such as external air conditioning units, air conditioner connecting lines, air conditioner condensate drain lines, or plumbing lines that serve only one unit. If the intent is to assign the unit owner the maintenance responsibility for such things, they must be specified as limited common elements in the declaration.  Conversely, the mere fact that the LCE are specified in the declaration does not automatically make the LCE the maintenance responsibility of the unit owner. LCE are, after all, a part of the common elements, and by default are an association maintenance obligation.  To properly assign the maintenance obligation to the unit owner, the declaration must both specify the item or area in question as a limited common element and designate the maintenance obligation to the unit owner.

 

If your association has portions of the common elements that serve only one unit owner, or group of units, which are not specified in the declaration as limited common elements, the Condominium Act was amended a few years ago to allow the association to reclassify these portions of the common elements as limited common elements, by amending the declaration (and amending the maintenance obligations, if necessary).  If these obligations are not clear in your condominium declaration, consult with your attorney to determine whether amendments to reclassify portions of the condominium property from common elements to limited common elements would be beneficial to your community.

 


Michael O. Dermody
Senior Attorney
tel:772.286.2990
MDERMODY@beckerlawyers.com

 

Michael Dermody concentrates his legal practice in commercial litigation, with a focus in appellate writing. He was admitted to the Florida Bar in May, 2007, and has been a member of the New Jersey Bar since 1996. Prior to coming to Florida, Michael was the principal of his own solo practice in Frenchtown, New Jersey. In 2005, he submitted an amicus curae brief in the landmark U.S. Supreme Court medical marijuana case, Ascroft v. Raich. Since 2007 he has focused on community association law with a concentration in community association litigation.

 

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