Changes to Homeowner Association Rules
There have been changes to the Homeowner Association Guidelines. Below are the highlights of those changes. Please contact our office for a free copy of the full statutes.
Legislative Sessions 2007 and 2008
Several changes have occured to Florida Statute 720. The following are some of the highlights.
- Insurance
- The legislature now allows associations to self insure, provides guidelines on what constitutes adequate windstorm coverage pursuant to section 624.462.
- Board Meetings and Disclosures
- Pursuant to Section 720.303(2)(a) the open meeting requirement for board of directors meeting now extends to all committees. Section 720.303(5) still requires the association official records to be maintained in the State of Florida and to be available for inspection and photocopying.
- Establishment of Budgets
- All associations must prepare an annual budget. Pursuant to Section 720.303(6) sets forth the manner in which an association must establish and maintain its annual budgets and also sets forth the manner in which the reserves must be established.
- Financial Reporting
- The Florida Statutes require associations to provide certain financial reporting documents. The association is required to prepare a complete financial report for the prior fiscal year within 90 days (instead of 60 days) of the end of the prior fiscal year or whatever other date established by the association bylaws. The association must copy the report to its members within 21 days.
- Architectural Review Committees
- Section 720.3035 was created to impose statutory requirements for architectural review committees. The ARC shall not unreasonably interfere with or impair the rights of the property owners as set forth in the declaration and/or other governing documents of the association concerning the construction of improvements.
- Assessments
- Pursuant to Section 720.3085 the legislature created and modified the ability of the homeowner’s associations to create and enforce liens.
- Legislation/Mediation/Arbitration Matters
- The legislature also amended Section 720.311 regarding resolution of disputes between an association and owners within the community. The modifications affect disputes not involving recalls and elections. In other words, the amendment did not change the procedure for matters not involving recalls and elections.
The Florida Legislature has shown a trend requiring a more professional relationship between the owners, developers and the association, specifically defined rights, procedures and remedies. Clearly the legislature focuses on homeowner’s associations and its management and it is likely to be a subject to future amendment and change. It is essential homeowner’s associations, its directors and management closely watches the legislative changes.
