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August 1996 MEMORANDUM TO CLIENTS
1996 LEGISLATIVE UPDATE It is time for the seemingly annual mid-summer ritual of reviewing legislative changes. The following provides a brief synopsis of new laws directly affecting owner-controlled associations. Compared to the past, this year's changes primarily "fine tune" earlier amendments. Perhaps the most significant change did not involve any of the traditional "association acts", the homeowners, condominium or cooperative acts. Instead, the legislature amended Florida's Fair Housing laws. Fair housing laws now broadly parallel federal laws (See January 1996 Memorandum to Clients). Thus, associations desiring to prohibit children from occupying property may now consider doing so. Another significant change concerns the February 1996 adoption of the Telecommunications Act of 1996, The Act requires the Federal Communications Commission to adopt regulations preempting private use restrictions prohibiting satellite dish antenna. Though no regulations are final at this time, any action against a dish antenna should take into account the potential that the F.C.C. regulations may require the Association to suspend enforcement efforts. Unless otherwise specified, the laws were effective June 2, 1996. The laws affecting the Condominium Act are also known as the "Isabelle Greenwald Memorial Condominium Act of 1996." CONDOMINIUM ACT AMENDMENTS
§718.112(2)(c) Committee Meetings. The requirement that all committee meetings be noticed and open to owners is deleted; however, meetings of committees that take final action, such as committees that actually approve screening applications, and budget recommendation committees still must hold noticed meetings open to all members. Other committee meetings do not have to be noticed or opened if the association's By-Laws exempt the committees. §718.112(2)(e) Budget Meeting Notices. The method of providing directors' budget meeting notices is altered. In addition to mailing notices, associations may hand deliver notices. An affidavit of delivery or mailing must be made by an association officer, manager, or the actual person providing notice. The affidavit must be kept in the association's official records. §718.115(2) and §718.404(3) Common Expenses. The initial method for determining the percentage ownership of common elements, relating to the owners' responsibility for paying common expenses, is clarified for mixed use condominiums. §718.616(a)(4) Prospectus Disclosures. In the prospectus that must accompany a developer's sale of a new condominium unit to the first owner, the requirement that a condominium located in a municipality have a letter from the city confirming code and other legal requirements is deleted, replaced by a mere acknowledgement that the city has been notified of the condominium's creation or conversion. COOPERATIVE ACT AMENDMENTS
§719.1055(3)(a) Common Areas. Mobile home cooperative common areas may be leased if the lease is approved by seventy-five percent of the members' votes. §719.1055(3)(b) Unit Changes. If an association desires to change a unit/apartment's size or boundaries, then the affected owner(s) and seventy-five percent of the owners must agree. §719.106(1)(c) Committee Meetings. The requirement that all committee meetings be noticed and open to owners is deleted. Meetings of committees that take final action, such as committees that actually approve screening applications, and budget recommendation committees still must hold noticed meetings open to all members. Other committee meetings do not have to be noticed or opened if the association's By-Laws exempt the committees. §719.106(1)(e) Budget Meeting Notices. Paralleling the Condominium Act amendments, in addition to mailing notices, associations may hand deliver notices. An affidavit of delivery or mailing must be made by an association officer, manager, or the actual person providing notice. The affidavit must be kept in the association's official records. §723.073 Mobile Home Conversions. At creation, mobile home cooperative association documents must be recorded in the public records of the county where the cooperative is located. HOMEOWNERS ASSOCIATION LAW
§617.0202 Dividends. A partial liquidation may justify a partial asset distribution. §617.306(1)(a) Amendments. Unless otherwise provided by law or the governing documents, governing documents may be amended by a vote of two thirds of the members. Note that an amendment affecting an owner's vested rights must be approved by that owner, unless the governing documents as originally recorded, provide otherwise. FAIR HOUSING LAW
§716.29(4)(b). Paralleling the 1995 amendments to the Federal Fair Housing Act, the requirement that housing intended for occupancy by persons fifty-five years of age or older which restricts children no longer requires the communities to have substantial facilities and services serving older aged persons. The occupancy requirement is clarified to provide that only units that are actually occupied must have eighty-percent of persons fifty-five years of age or older. The community must publish and adhere to older aged policies, and comply with United States Department of Housing and Urban Development policies requiring age verification and policy surveys. Furthermore, providing a "safe harbor" for directors and managers, individuals may rely in good faith upon an exemption application by showing that they have no actual knowledge of an ineligibility, and if the community has formally stated in writing that it complies with the requirements, then it should be exempt. It is noted that there is no "safe harbor" for the person who would knowingly sign an inaccurate certificate of qualification. MISCELLANY
There are two other notable changes. First, Community Association Manager regulation is transferred from the Division of Land Sales to the Division of Professions; however, an independent licensing council is created, primarily for educational matters. Second, the " 1993 Insurance Moratorium" was extended three years, limiting the number of policies a property insurer can cancel in one year.
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