2021 Community Association Statutory Update
In 2021, several amendments were enacted to the laws governing community associations (condominiums, homeowners’ associations and co-operatives). While most took effect on July 1, 2021, a couple came into force earlier in the year. What follows is a summary of the most significant statutory updates. I have also included links to each amendment.
Senate Bill 56 (Chapter 2021-91, Laws of Florida): This bill, which took effect on July 1, 2021, significantly alters the assessment collection process by:
- Requiring that assessment invoices be mailed or emailed (if the owner has agreed to electronic notice) to owners.
- Requiring a special 30-day notice, which must be acknowledged by an owner, before the association can alter the delivery method of assessment invoices.
- Requiring a new 30-day late notice to be mailed (but not emailed) to delinquent owners before a lien notice can be sent or attorney’s fees can be charged.
- Requiring that a copy of the late notice, lien notice and foreclosure notice also be mailed to the parcel or unit address if the owner’s mailing address is not the parcel or unit address.
Senate Bill 630 (Chapter 2021-99, Laws of Florida): The bill, which took effect on July 1, 2021, makes several changes to the manner in which community associations may (or must) be operated. Among other things, it does the following:
- For all types of community associations:
- Creates a means by which meetings may be noticed on the association’s website or via an application that can be downloaded on mobile devices.
- Broadens and clarifies the association’s emergency powers when an official state of emergency is declared.
- For condominium associations:
- Requires that bids for work to be performed be maintained for 1 year.
- Limits the rights of renters to inspect official records.
- Clarifies that membership meeting notices (other than for the annual meeting) can be furnished within the timeframe specified in the bylaws or, if no timeframe is listed, at least 14 days before the meeting.
- Regulates the installation of electric vehicle charging and natural gas fueling stations.
- Eliminates mandatory non-binding arbitration in favor of optional pre-suit mediation.
- For co-operative associations:
- Clarifies that directors and committee members may participate and vote at board and committee meetings via telephone and videoconference.
- Eliminates mandatory non-binding arbitration in favor of optional pre-suit mediation.
- For homeowners’ associations:
- Requires that ballots, proxies and other election-related records be maintained with the official records for at least 1 year.
- Modifies the warnings required to be included with year-end financial reports when the association does not maintain fully-funded reserve accounts.
- With some exceptions, limits the applicability of amendments regulating or prohibiting rentals to owners who agree to the amendment or those who become owners after the amendment is recorded.
Senate Bill 1966 (Chapter 2021-135, Laws of Florida): This legislation took effect on July 1, 2021. For cooperative associations and condominiums, it requires that the annual budget be adopted at least 14 days prior to the start of each fiscal year. For condominiums, it also clarifies what “delinquency” means for board eligibility.
Senate Bill 72 (Chapter 2021-1, Laws of Florida): Effective March 29, 2021, this legislation created a new statute, Section 768.38, Florida Statutes, which limits the liability of business entities, including community associations, from civil actions based upon COVID-19-related claims if, among other things, a good faith effort was made to substantially comply with controlling government-issued health guidelines.
Senate Bill 602 (Chapter 2021-13, Laws of Florida): Effective May 7, 2021, this legislation, among other things, clarifies the applicability of the Florida Not For Profit Corporation Act to community associations.