This is the first of two Memoranda intended to summarize many of the new state laws which affect association governance. The June Memoranda shall consider the first half of the legislature's most significant association related acts, Law 94-350. This law affects all types of associations, revising community association manager licensing, planning homeowner association regulation, and clarifying Condominium and Cooperative Acts. The August issue shall consider additional Condominium Act amendments and other association related laws. Please note that the changes have not been tested by court decisions and are subject to judicial review.

Except as specifically noted, the changes are effective October 1, 1994. Most provisions have been assigned a specific statute number. Two have not. Section 22, effective June 3, 1994, requires a study to review homeowners association law and to recommend whether, and if so, changes should be made. In response to condominium associations' protests over insurance increases, Section 23, also effective June 3, 1994 requires that condominiums be classified for insurance rating purposes as "residential property".

§468.433(4) - (6) Community Association Management: Community Association Management licensing is tightened. To provide additional security, applicants must provide the State a complete set of fingerprints. Also, managers can no longer be certified in a particular area.

§468.434 C.A.M. Advisory Counsel: The counsel providing advice on Community Association Management licensing is reconstituted. Employment diversity is mandated. Of the counsel's seven members, three must be members of some other professional organization whose primary purpose must involve community associations. The filling of vacancies is also revised.

§468.436 Enforcement Powers: The Division of Florida Land Sales' cease and desist orders may require a manager to return an association's funds or property, as well as requiring financial restitution to injured persons or entities. The Division may assess investigation and prosecution costs against a manager when a violation is found. Enforcement alternatives are expanded, adding probation options.

§718.106 Tenants: Though normally a landlord forfeits rights to use leased property, if a tenant waives in writing his or her right to use the condominium common elements, then the unit owner shall be entitled to the use of the common elements.

§468.438 Timeshare Management: A special distinction is created for timeshare management firms. While only one C.A.M. must be present at a timeshare, the licensed manager is responsible for all other unlicensed association management personnel.

§718.112(2)(A)(2) and §719.106(a)(2) Unit Owner Complaints: Condominium and cooperative association directors must respond in writing to an owner's written complaint; however the response time is changed. If an association seeks advice from the Division, the association must substantively respond within ten days of receipt of the Division's response. If the association seeks an opinion from legal counsel, then the association must respond to the complaint within 60 days after receipt of the complaint.

§718.112(2)(f)(2) and §719.106(j) Reserves: Condominium and cooperative association reserve waiver procedures are clarified. Instead of allowing reserves to be waived by a majority of members present at a meeting, reserves may be waived by a majority of all voting interests voting at a meeting.

§718.112(2)(K)(1) and §719.106(f) Recall of Directors: Condominium and cooperative association directors' recall procedures are revised. If the owners vote to recall a director, then a directors' meeting must be held within five days to certify or protest the recall. If the directors certify the recall, then within five business days, recalled directors must turn over to successors any and all Association records and property. If the directors contest the recall, then they must file an arbitration petition contesting the recall within five days. If the directors do not have the required meeting, then the recall is automatically effective.

§718.113 and §718.115(1)(c) Hurricane Shutters: A condominium association's shutter installation is contingent upon the approval of the majority of the condominium's voting interests. Once consent is obtained, the association may install, maintain, repair, and replace hurricane shutters. Where laminated glass designed for hurricane protection is installed, then the Association may not install hurricane shutters without the unit owner's permission. The installation, maintenance, operation and replacement of hurricane shutters is a common expense. However, a unit owner who previously installed hurricane shutters at the unit owner's expense shall receive a credit equal to the pro rata portion of the assessed installation cost assigned to each unit owner.

§718.116 Assessments: Foreclosing first mortgage holders' responsibility to pay condominium associations the lesser of six months of assessments or one percent of the mortgages original debt is clarified. An acquirer of a condominium unit must pay the assessments owed to the Association within thirty days after transfer of the title. A condominium lien's effective date has been changed from April 1, 1992 to the date the original Declaration of Condominium was recorded. However, as to first mortgagees, the lien is effective only from the date the claim of lien is recorded. A claim of lien must include the association's name and address, and must be executed and acknowledged by an association officer or authorized agent. If an association is prevented from filing a lien foreclosure action due to an automatic stay resulting from a bankruptcy petition being filed, a lien's one year enforcement period is automatically extended.