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Find Blog Articles for Florida’s Condo, HOA and the Management Industry.
KBR Attorney Allison L. Hertz returns to answer some of the audience questions from her CE credit Elections webinar. This video is for informational purposes only and is not to be considered as legal advice.
Tags: Condo and HOA Laws, Elections, Events Meetings and Courses
ELECTIONS, INSURANCE, AND A SENSELESS DEATH
This season, more than any other of late, the issue of condominium election ballot verification reared up. The condominium election process is unique and very regulated. In addition to many other requirements, ballots are to be placed in an inner plain and unmarked envelope which is to be placed inside a larger envelope which must, as per Florida law, contain the unit owner’s name, address, unit number and signature. As part of the election process, this information is later verified against the associations’ membership records to ensure that only the unit owner, or the unit owner’s designated voter, cast their ballot. It is the plain inner envelope that guarantees anonymity.
Given the sheer volume of units in many condominium communities, which translates to the number of ballots that can be received, the process of tabulating the ballots can take hours. To speed things up, some condominium communities prefer to verify the outer envelope information in advance of the election ballot tabulation that takes place during the annual members’ meeting. That said, and what may come as a surprise to some, is that you cannot just start verifying the outer envelopes. If you do, then your entire election is subject to challenge. Tampering with the election materials creates an inescapable cloud over the entire election process from which there is no escape, but a new election. It is so simple to avoid, too.
Section 61B-23.0021, of the Florida Administrative Code, details the verification process as follows: “Any association desiring to verify outer envelope information in advance of the meeting may do so as provided herein. An impartial committee designated by the board may, at a meeting noticed in the manner required for the noticing of board meetings, which shall be open to all unit owners and which shall be held on the date of the election, proceed as follows. For purposes of this rule, “impartial” shall mean a committee whose members do not include any of the following or their spouses: 1) Current board members; 2) Officers; and 3) Candidates for the board. At the committee meeting, the signature and unit identification on the outer envelope shall be checked against the list of qualified voters. The voters shall be checked off on the list as having voted. Any exterior envelope not signed by the eligible voter shall be marked ‘Disregarded’ or with words of similar import, and any ballots contained therein shall not be counted.” Now you know how to have your cake and eat it, too. Just follow the simple procedures to verify the outer envelopes and you can be home in time for the 10:00 P.M. news.
Once you are elected to the board, make certain the directors’ and officers’ liability coverage is in place. In most instances, a board member’s duty is to exercise their reasonable business judgment. They can make decisions that later turn out great or bad, but so long as they acted reasonably under the circumstances, and without malicious intent, the association’s insurer typically stands by their coverage obligations. Noteworthy is that, as related to procurement of insurance, a condominium board member’s statutory duty as set out in s. 718.111(11), Fla. Stat, is one of “best efforts”. Casualties of all sorts can occur at any time. For example, just look to the recent tragedy that led to the death of Trayvon Martin.
Friends, family and clients are all asking, will George Zimmerman’s homeowners’ association be sued? Yes, most likely it will. That is one deep pocket not likely to be missed. We could also see intentional tort claims brought against the individual directors by the victim’s family. If such claims are victorious, then it’s the individual directors who are liable, not the association’s insurer. Under the circumstances, as reported thus far, a finding of individual board member liability is not unlikely.
The more difficult question to answer is whether the HOA will have liability for its actions or failures to act? Was the association, based on the acts of its boards (both past and present) negligent or grossly negligent (reckless disregard that rises to such a level so as to appear to be an almost willful violation of the safety of others)? If so, the insurers would likely fight to pay only their fractionalized share of the association’s blame. This is referred to as “contributory negligence” where each culpable party pays their share of the blame. You might also hear about some court activity where the plaintiffs try to force the association to suffer its judgment separate from the other defendants. Doing so could create opportunity for larger settlements and judgments. Think of it this way, would you rather receive just $1,000 from 10 people, or have 10 people each give you $1,000?
In many ways, suing a homeowners’ association is like suing a successful, well capitalized corporation. Without proper insurance coverage in place, a judgment against your association would also be your next special assessment. Make sure your association’s insurance professional is made aware of all activities taking place in your community, from watch committee activity to use of the clubhouse by private organizations. Crime and accidents occur everywhere, at any time, when you least expect it and without notice. Advance planning is your only defense.
MIAMI – The Florida law known as the “Homeowners’ Association Bill of Rights” took effect on October 1st.
It revises the requirements for the governance and regulation of homeowners’ associations to:
We are sure there will be more to come, as the State’s changes to the Law slimmed down the original Law and added to the original law.
SFPMA and Our Legal Members. October 1, 2023
Tags: Condo and HOA Law, Management News
Here’s a new law that is already causing chaos in our communities. As many of us are unfortunately already learning, there is a lack of affordable housing in our state. In order to combat this problem, The Florida Legislature passed a new law.
The Live Local Act is a new Florida law that was designed to increase affordable housing development. The nearly 100-page piece of legislation allocates up to $811 million for affordable housing programs. It also carves out a variety of tax incentives, land-use policies and other strategic initiatives to encourage developers to build more affordable housing in the state. Among them is a provision that modifies the approval process for new housing developments by requiring local governments to relinquish control of several zoning and land-use regulations.
Although I have not had the time to review the new law, it appears that the major problem with the new rules is that apparently, local officials are preempted from weighing in on zoning, density and height restrictions for eligible developments. Qualifying projects are defined as any residential housing project on commercial, industrial or mixed-use land that allocates at least 40 percent of units to be affordable for residents earning up to 120% of the area median income.
Think about this for a moment. Think about a piece of land in your community that is commercial, industrial or mixed use and that is only a story or two tall. Think about the fact that your local zoning laws require the structure to remain only a story or two tall. Now think about throwing those height restrictions in the garbage, and instead allowing a developer to build affordable housing that is 30 stories tall on all of these properties, and nobody in your community has the power to stop it. That’s the position that developers are certainly taking.
All of your local laws regarding height and density would be pre-empted by this new law and affordable housing, as tall as can be, would be the new law of the land. Cities like Doral and Miami Beach are already fighting back. No doubt that the courts will have to weigh in on this one.
Should the State of Florida be allowed to make a law that pre-empts your local zoning code and instead allow affordable housing to be built on any commercial, industrial or mixed-use property, without any restriction regarding density or height? Seems scary to me.
Tags: Board of Directors, Law and Legal
I feel like I handled a thousand annual meetings in the last month, flying from one to the other. When running the meetings, and depending upon whether the association is a condominium or HOA, it is important to know if the person running for the board, or even the winner of the election, is eligible to serve because they owe money to the association.
Let’s start with condominiums first, Florida Statute 718.112 (2)(d) states:
A person who has been suspended or removed by the division under this chapter, or who is delinquent in the payment of any assessment due to the association, is not eligible to be a candidate for board membership and may not be listed on the ballot.
So, in a condominium, the person’s eligibility to run and initially serve on the board is decided when the owner submits their notice to be a candidate, and that is no less than 40 days before the election. If at that time, the owner is delinquent in any assessment their name cannot be printed on the ballot and sent to the unit owners. On the night of the election the association need not worry if anyone is delinquent and cannot serve because their name was already excluded from the ballot.
The law in a Florida HOA is much different. Florida Statute 720.306(9)(b) states:
A person who is delinquent in the payment of any fee, fine, or other monetary obligation to the association on the day that he or she could last nominate himself or herself or be nominated for the board may not seek election to the board, and his or her name shall not be listed on the ballot.
Lots of differences between the two statutes here. In a condominium, you can only be prevented from being placed on the ballot if you owe an assessment. In an HOA, your name can be prevented from being placed on the ballot if you owe any fee, fine or other monetary obligation to the association; a far more restrictive provision in an HOA.
In addition, remember that in most HOAs, nominations are taken from the floor on the night of the election. That is the “day that he or she could last nominate himself or herself or be nominated for the board.” Therefore, on the night of the election, we need to know if any of the proposed nominees owe any fee, fine or other monetary obligation. If so, their name cannot be accepted into nomination. They cannot run.
ONCE A DIRECTOR BECOMES 90 DAYS DELINQUENT
The Condominium Act states:
718.112: Director or officer delinquencies.—A director or officer more than 90 days delinquent in the payment of any monetary obligation due the association shall be deemed to have abandoned the office, creating a vacancy in the office to be filled according to law.
The Homeowners Association Act states:
720.306(9)(b) A person serving as a board member who becomes more than 90 days delinquent in the payment of any fee, fine, or other monetary obligation to the association shall be deemed to have abandoned his or her seat on the board, creating a vacancy on the board to be filled according to law.
Tags: Condo and HOA Law, Management News, Members Articles
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.
Kaye Bender Rembaum is a full service commercial law firm devoted to the representation of community associations throughout Florida. Under the direction of attorneys Robert L. Kaye, Esq., Michael S. Bender, Esq., and Jeffrey A. Rembaum, Esq. Kaye Bender Rembaum is dedicated to providing clients with an unparalleled level of personalized and professional service regardless of their size and takes into account their individual needs and financial concerns. Most of our attorneys are Board Certified in Condominium and Planned Development Law. The associates of Kaye Bender Rembaum establish relationships with clients to understand their needs and goals. Kaye Bender Rembaum assists clients in all matters of Association representation including, but not limited to, collection of assessments, contract negotiation, covenant review and amendment, covenant enforcement and construction defect claims. Kaye Bender Rembaum also keeps clients up-to-date on new developments in the law and how they are personally affected by them. Kaye Bender Rembaum provides prompt, effective, high quality, cost-efficient and understandable legal advice and services to a diverse client base. Associates strive to help clients operate and administer their communities better and to educate them on their responsibilities and duties under Florida law and their governing community documents. Robert Kaye, Michael Bender and Jeff Rembaum are industry leaders who are often sought out by public policy makers and the media for advice and commentary on community association law. Offices in Broward, Palm Beach, Orange and Hillsborough Counties, as well as Miami-Dade by appointment. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Thank you for your interest in Kaye Bender Rembaum.
With respect to item 7 above, Kaye Bender Rembaum has become aware of at least one service provider that will bring in engineering professionals to make a physical inspection of the entire community to assess the conditions and establish a record for all such conditions prior to any storm. The assessment will also identify conditions that may have resulted from Hurricane Irma from 2017, for which claims were not made or even found and may still be claimed. In many instances, conditions of significant damage may not be readily apparent to the layperson, but to a qualified professional, very obvious. Quite often, such an inspection can result in substantial additional insurance claims for the association to recover. It is not unusual for an insurance carrier to reject initial claims following a major storm, citing to maintenance or pre-existing conditions as the basis for the denial. The team of experts performing the assessment has assisted several communities overcome such rejections and ultimately receive additional settlement proceeds to make further repairs to the premises. While there is no guaranty of such a result, without making such an assessment, the board will never know and certainly have no further recovery. Most importantly, this inspection and assessment is undertaken at no charge to the association by this company, and with no obligation to the association!
Tags: Condo and HOA Law, Members Articles
The State of Florida is no stranger to hurricanes and other natural disasters.Living in paradise doesn’t come without some risks associated with Mother Nature. The question is never just if our communities, homes and families will be impacted by a windstorm event, but when they will, and how we will prepare for and recover from that event.
In addition to our in-house legal services, Becker owns and operates Association Adjusting, a licensed and insured public adjusting firm led by Joseph “Joe Connelly (#E157037). Mr. Connelly has served as Executive Board Officer for the Florida Association of Public Adjusters (FAPIA).
Recognized as an authority in the community association industry, Association Adjusting has the expertise and experience to help community associations achieve the most favorable outcome possible. Our team of public adjusters, led by Mr. Connelly, provides clients with only the highest level of professionalism and excellence – whether you’re dealing with a claim that stems from hurricane damage, water damage, theft, fire, mold, roof leak, or any other type of calamity, our singular goal is to ensure your interests are always protected.
The first step toward developing and implementing a disaster plan is identifying the potential consequences of a disaster. The second step is to develop and implement a plan to mitigate the impact of a disaster to the fullest extent possible.
Federal Emergency Management Agency for federal disaster response and recovery information
National Flood Insurance Program (NFIP) for information about federal flood insurance
Information about Flood Insurance
Flood Resources: National Flood Insurance Program (NFIP)
Contact Information: Phone: 1-888-FLOOD29 or 1-888-356-6329
Filing a Flood Insurance Claim
Premium Discounts for Hurricane Loss Mitigation
Notice of Premium Discounts for Hurricane Loss Mitigation
Uniform Mitigation Verification Inspection Form
Are you prepared for Hurricane Season?
Preparing for Natural Disasters, and Recovering from them
Disaster Preparedness at Home: Filter Out the Damage
Disaster Prep & Self Storage – What You Need to Know
Emergency Preparedness for People Requiring Special Assistance
Humane Society – Protect Your Pets
Becker provides access to information on this website page as a public service. Although reasonable efforts have been made to ensure that all electronic information made available is current, complete and accurate, Becker does not warrant or represent that this information is current, complete and accurate. All information is subject to change on a regular basis, without notice. Becker assumes no responsibility for any errors in the information provided, nor assumes any liability for any damages incurred as a consequence, directly or indirectly, of the use and application of any of the contents of the website page. The inclusion of, or linking to, other website URLs does not imply our endorsement of, nor responsibility for, those web sites, but has been done as a convenience to our website visitors.
Tags: Condo and HOA, Condo and HOA Insurance, Damage Restoration, Law and Legal, Management News, Member Highlights
The team’s decades of combined legal experience provide the Katzman Chandler family of clients with cutting edge solutions to routine issues, as well as novel and/or complex legal matters faced by our Community Association clients and their voluntary Boards of Directors.
Our Transactional Attorneys are often relied upon by the media, as well as public policy makers, to sort out issues relating to the Community Association lifestyle. Each member of the Transactional Team brings a unique skill set and perspective to this diverse practice and understands how best to assist Boards in functioning in an age of ever growing state regulation and changing legal requirements.
Our Transactional Legal Services for Associations involve a combination of several specialty areas including, but not limited to, Real Property Law, Corporate Law, Litigation, Contract Law, and Insurance Law. Whether we are reviewing your contracts, amending your documents, rendering a bank loan opinion or enforcing your Community’s covenants against violators; our ultimate goal remains the same – to deliver information, counsel and answers in an easy to understand format with personalized service and attention to detail that you can rely on time and again.
By Eric Glazer, Esq.
Board members I’m telling you now……..be careful. I’m seeing it already. Unit owners are starting to freak out over the passage of huge assessments to cover the costs of mandatory inspections, mandatory repairs and massive increases in insurance rates.
As we know, we’re not talking about pesky increases to the monthly cost of living in your home. We are talking about increases that will cause many to no longer be able to afford to live in their home at all. We are talking about increases that will force people to sell and no longer live in the condominium that they have lived in for perhaps decades.
Notwithstanding the fact that none of these increases are the result of anything the Board members did or didn’t do, board members know who is likely to be blamed for this financial disaster many unit owners find themselves in ——the Board members. So what else is new?
Board members are used to being blamed when things go wrong even though it’s not their fault. That comes with the territory. They get yelled and screamed at, the meeting ends and then it’s usually over. Maybe there’s some nasty e-mail that float around the community. This time it’s different.
Even if unit owners come to the realization and accept that they can’t afford to live in the condo any longer, the question is….so where can they go? Every condo seems to be in the same shape. Or if owners choose to move to a place that’s simply newer and not yet required to perform these inspections and repairs, you can bet they cost a lot more money than where they currently live. There’s simply no place to turn to.
When there is desperation and fear, people become irrational and often times violent and that is why I honestly fear for the safety of condominium board members throughout the state. This is not a knock on the millions of law abiding condominium owners throughout the state. They were thrown into this position because The Florida Legislature failed all of you. Instead of always requiring condominium owners to put away money for a rainy day, The Florida Legislature cow-towed to the whims of developers, law firms and other special interest groups who always lobbied against mandatory reserves. The only reason why mandatory reserves are now required is because 98 innocent men, women and children died at The Champlain Towers in Surfside as a result of not having nearly enough money on hand to make obviously needed structural repairs in their condominium.
So Board members……….you didn’t volunteer in your community to get punched out or worse at your board meetings. My advice is….when you know you’re about to pass a special assessment at a meeting, and at that meeting people are going to be going crazy……protect yourselves. Make sure there are police or at least security at the meeting. Better be safe than sorry.
WE WILL TAKE YOUR CALLS AND ANSWER YOUR CONDO AND HOA QUESTIONS THROUGHOUT THE HOUR. CALL US AT 877-850-8585 DURING THE SHOW.
Tags: Board of Directors, Condo and HOA, Management NewsMake primary, SFPMA Members News
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