The 2021 Legislative Session produced a number of changes to Chapter 718 of the Florida Statutes, also known as Florida’s Condominium Act. Many of these changes were proposed by Senate Bill 630. The full text of legislative bills, including Senate Bill 630, are available on the Florida legislative websites (www.flsenate.gov, www.myfloridahouse.gov, and www.leg.state.fl.us). This blog post highlights various changes affecting condominium associations that became law on July 1, 2021.
Section 627.714(4) – Subrogation
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- If an association’s insurance policy does not provide rights for subrogation against unit owners, an insurance policy issued to an individual unit owner may not provide rights of subrogation against the condominium association.
Section 718.111(12)(a)(17) – Official Records
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- Copies of bids for work to be performed or for materials, equipment, or services must be maintained by the association for at least one (1) year after receipt of the bid. Previously, bids had to be kept for at least seven (7) years.
Section 718.111(12)(c)(1) – Official Records
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- Renters of units have a right to inspect and copy only the declaration of condominium and the association’s bylaws and rules.
- The association may not require a member to demonstrate any purpose or state any reason for the inspection.
Section 718.111(12)(g) – Association’s Website or Mobile App
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- Associations comprising 150 or more units can maintain a mobile application in lieu of a website.
- Concertedly, associations comprising 150 or more units can maintain some documents, as specified by statute, on a mobile application in lieu of posting the documents on its website.
Section 718.112(2)(d)(2) – Term Limit of Board Members
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- Term limits for board members remain at eight (8) consecutive years; however, only board service occurring on or after July 1, 2018, may be used when calculating a board member’s term limit.
Section 718.112(2)(d)(3) – Notice of Meetings
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- Clarification is provided as to notice of meetings. Other than annual meetings, notice of meetings shall be determined by the association’s bylaws. If the bylaws are silent, notice must be provided at least fourteen (14) continuous days before the meeting.
Section 718.112(2)(d)(4)(a) – Notice of Elections
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- The association must provide a second notice of an election to all unit owners, together with a ballot of all candidates, not less than fourteen (14) days or more than thirty-four (34) days before the election date.
Section 718.112(2)(p) – Service Providers
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- As it existed previously, this provision prohibited an association from hiring a service provider that is owned or operated by a board member, any person who has a financial relationship with a board member, or any relative of a board member. The new law removes this provision.
Section 718.112(2)(i) – Transfer Fees
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- Many associations charge transfer fees for the sale or lease of units. Per the new law, associations can charge up to $150.00 for transfer fees. The previous statutory limit was $100.00.
Section 718.113(8) – Electric Vehicle Charging Stations and Natural Gas Fuel Stations
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- Unit owners can install electric vehicle charging stations in their exclusively designated parking area. Previously, installation of electric vehicle charging stations was restricted to limited common element parking areas only.
- Unit owners can also install natural gas fuel stations within the boundaries of their limited common element or exclusively designated parking area.
- Unit owners are responsible for complying with federal, state, and local laws and regulations applicable to the installation, maintenance, or removal of electric vehicle charging stations or natural gas fuel stations.
- Associations can install electric vehicle charging stations or natural gas fuel stations on the common elements or association property and assess charges to unit owners who use these amenities.
- The 2021 amendment expressly states that the installation, repair, or maintenance of an electric vehicle charging station or natural gas fuel station does not constitute a material alteration or substantial addition to the common elements or association property.
Section 718.117(16) – Termination of Condominium
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- Parties to a dispute involving termination of a condominium may initiate presuit mediation in lieu of filing a petition for nonbinding arbitration in satisfaction of Section 718.1255, Florida Statutes.
Sections 718.1255(4) 718.1255(5) – Nonbinding Arbitration and Presuit Mediation
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- The 2021 amendment removes the word “mandatory” from nonbinding arbitration and the word “voluntary” from mediation of disputes.
- Parties to a “dispute” as defined by statute may either file a petition for nonbinding arbitration or initiate presuit mediation. Previously, parties had to file a petition for nonbinding arbitration and request the arbitrator to refer the dispute to mediation. The new law removes this intermediate step.
- Arbitration is binding if all parties agree to be bound in a writing filed in arbitration.
- Election and recall disputes are no longer eligible for mediation. Such disputes must be arbitrated or litigated in court.
Section 718.1265 – Association Emergency Powers
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- Presumably in response to the ongoing Covid-19 pandemic, the new law expands associations’ emergency powers. In exercising its emergency powers, associations can conduct committee meetings and elections. Previously, associations were limited to conducting board and member meetings only. These events may be held by telephone, real-time conferencing, or other similar real-time electronic or video communication.
- Associations may take advice from public health officials into consideration when exercising emergency powers.
- Associations may exercise emergency powers to prevent or mitigate injury or contagion – a notable allusion to the ongoing Covid-19 pandemic.
- Associations are prohibited from denying unit owners, tenants, or their guests access to a unit, common elements, and limited common elements when access is necessary in connection with the sale, lease or other transfer of title of a unit.
- Similarly, associations are prohibited from denying unit owners, tenants, or their guests access to same when access is necessary in connection with the habitability of the unit or for the person’s health and safety.
Section 718.501(1) – Jurisdiction of the Division of Florida Condominiums, Timeshares, and Mobile Homes
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- The Division has jurisdiction to investigate complaints related to the maintenance of association records.
Read “Part Two: 2021 Legislative Changes to Florida’s Condominium Act” here.
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Photo – AP Image/Wilfredo Lee
