New Laws Affecting Florida HOAs in 2024 (Updated to include July 1, 2024 Provisions)

The year 2024 has significantly changed Florida homeowners associations (HOAs). These aren't minor adjustments. The new rules impact everything from hurricane protection standards to HOA governance, financial reporting, and penalties for violations. Keeping up with these changes is a priority for any HOA.

Whether you're on the board, a community association manager, or a homeowner, these new changes require your attention. As of July 1, 2024, several laws have been enacted, including new requirements for digital records and serious penalties for non-compliance. Additionally, hurricane protection standards are now mandatory, requiring all associations to adopt and enforce these measures.

Below is a summary of laws affecting Florida HOAs.

Building Safety

(Originally published in the January 3, 2024 Blog)

1. Safety Measures and Structural Inspections: The original SB 4-D, signed into law on May 26, 2022, addresses safety and preventative measures related to condominiums. This law does not apply to single-family, two-family, or three-family dwellings with three or fewer habitable stories about ground. The follow-on SB 154, passed in May 2023, provided some flexibility, and its relevance continues into 2024 due to upcoming deadlines.

• Milestone Structural Inspections: Condo associations (COAs) with buildings that are 3 stories or more must complete Milestone Structural Inspections (MSI). A licensed architect or engineer must create a Milestone Inspection Report (MSR). For buildings occupied before July 1, 1992, the original deadline for the first inspection was December 31, 2024. However, SB 154 extended this to December 31, 2025, and allows inspections to be done by a team led by an architect or engineer.
• Structural Integrity Reserve Study (SIRS): COAs must complete a SIRS for buildings 3 stories or higher by December 31, 2024, and repeat it every 10 years. If the study finds any necessary repairs, the board has one year to begin those repairs.
• Reserve Funding Requirements: Starting December 31, 2024, COAs cannot use reserve funds for anything other than their intended purposes. They also cannot waive or reduce the reserve funding for key structural parts of the building.
• Board Members Liability: SB 154 makes board members and officers personally responsible if they don't meet their duties for inspections and reserve studies. Not getting required reports is considered a breach of fiduciary duty, which could lead to personal liability.

Homeowners' Association Bill of Rights

(Originally published in the January 3, 2024 Blog)

2. Homeowners' Association Bill of Rights, HB 919, which took effect on October 1, 2023, aims to increase oversight and address potential misconduct in HOAs and condo associations. Key parts of the law include:

• Clear Agenda Items: HOA board meeting notices must now clearly list agenda items and explain what will be voted on.
• Email Notices: Members can receive notices via email and are allowed to choose an alternative email address for these communications.
• Deposit Rules: Any deposits collected from members must be kept separate from other association funds, and homeowners have specific rights regarding these deposits.
• Kickbacks: Officers, directors, or managers who accept kickbacks can face financial penalties under S. 617.0834, FS.
• Records Access and Crime: Officers or directors charged with certain crimes related to HOA operations must be removed and will lose access to official records.
• Conflict of Interest Disclosure: Directors and officers, including those appointed by developers, must disclose any potential conflicts of interest.
• Fines and Fraud Prevention: The law updates the process for notifying members about fines and strengthens rules to prevent fraudulent voting activities.

HOA Rules and Covenants

3. Provision of Homeowners' Association Rules and Covenants, HB 59, effective July 1, 2024, requires that by October 1, 2024, all HOAs must give each member a physical or digital copy of the association's rules and covenants.

• Updated Copies: If the rules or covenants are updated, the HOA must send the revised version to all members. HOAs can decide how and when they will distribute these updates.
• Posting Online: HOAs can also meet this requirement by posting the rules and covenants on their website's homepage, as long as members are notified and given access to the site.

Hurricane Protections for HOAs

4. Hurricane Protection Requirements, HB 293, applies to all HOAs, no matter when the community was established. It requires HOAs and their architectural or similar committees to set hurricane protection standards for each structure within the association.

• Specifications: These standards can include the style and color of hurricane protection products but must meet local building codes.
• Approval of Applications: HOAs cannot reject applications for hurricane protection if they follow the approved specifications.
• What Counts as Hurricane Protection: This includes roof systems that meet ASCE 7-22 standards, impact-resistant windows and doors, storm shutters, exterior generators, and other similar protection products.

HOA Governance and the Practice of the Community Association Managers

HB 1203 brings several changes to improve the governance of HOAs and the role of Community Association Managers (CAMs). This bill outlines specific duties and responsibilities for CAMs, including meeting attendance, providing key information to members, and completing continuing education requirements. It also sets new standards for maintaining official records and outlines criminal penalties for violations related to record-keeping and accounting practices. These updates are designed to increase transparency, accountability, and compliance within HOAs.

Community Association Managers (CAMs)

5. Requirements for CAMs and CAM Firms: The bill sets several obligations for Community Association Managers (CAMs) and CAM firms.

• Meeting Attendance: CAMs and CAM firms must attend at least one member or board meeting of the association annually.
• Providing Information: CAMs must provide members with key details, including a contact person, their contact information, and available hours.
• Contract Requests: Upon request, CAMs must give members a copy of the contract between the association and the CAM or CAM firm.
• Continuing Education: CAMs must complete at least 10 hours of continuing education every year.
• Additional Education on Record Keeping: Every two years, CAMs must complete at least five hours of education focused on homeowners' associations, with three hours dedicated to record keeping.

Official Records

6. Official Records Requirements: Starting January 1, 2026, the bill sets new rules for maintaining and providing access to official HOA records.

• Digital Records: HOAs with 100 or more parcels must keep a digital copy of specified records available for download on their website or through a mobile app.
• Subpoena Compliance: If law enforcement requests records through a subpoena, the HOA must provide them within five days.
• Record Retention: HOAs must keep official records for at least 7 years unless the association's governing documents specify a longer time.

Criminal Violations

7. Criminal Penalties for Board Members and Officers: Board members and officers can now face criminal charges for knowingly violating HOA records and accounting rules. Depending on the violation, penalties can range from misdemeanors to felonies.

• Second-Degree Misdemeanor: Any board member or officer who knowingly, willfully, and repeatedly (two or more times within 12 months) violates rules related to the inspection and copying of official records intending to harm the association or its members can be charged.
• First-Degree Misdemeanor: Knowingly and intentionally defacing or destroying required accounting records or failing to create or maintain them, intending to harm the association or its members, is a first-degree misdemeanor.
• Third-Degree Felony: Refusing to release association records with the intent to avoid detection, arrest, or punishment for a crime (or helping someone else do so) is a felony. Soliciting, offering, or accepting kickbacks as an officer, director, or manager is also a felony.
• Fraudulent Voting Penalties: The law introduces penalties for involvement in fraudulent voting during HOA elections. Knowingly helping someone commit election fraud, conspiring with others to do so, or assisting an offender in avoiding detection, arrest, or punishment can lead to criminal charges.
• Immediate Removal: Any officer or director charged with a criminal violation must be removed from office, and their position will be declared vacant.

Assisting Law Enforcement

8. Providing Records to Support Investigations: The bill requires HOAs to cooperate with law enforcement when subpoenaed. If an HOA receives a subpoena, it must provide the requested records within 5 business days and assist in any investigation as long as it complies with the law.

Financial Reporting

9. Financial Reporting Requirements: HOAs with 1,000 or more parcels must prepare audited financial statements and cannot downgrade the type of financial statement (e.g., from audited to reviewed) in consecutive years.

Requirement to Provide Accounting

10. Accounting Requests: Parcel owners have the right to request a detailed accounting of any amounts they owe to the association.

• Response Deadline: The association must provide this accounting within 15 business days of receiving a written request.
• Waiving Fines: If the association fails to meet the 15-day deadline, any overdue fines owed by the requester are waived, provided the fines are more than 30 days past due, and the association didn't give prior written notice.
• Limit on Requests: Parcel owners can only request a detailed accounting once every 90 days.

Education - Officers and Directors

11. Education Requirements for HOA Directors: The bill updates the education requirements for HOA directors:

• New Director Training: Newly elected or appointed directors must submit proof of completing the required education within 90 days of their election or appointment.
• Curriculum Content: The education must cover financial literacy, transparency, record keeping, fines, and meeting notice requirements.
• Annual Continuing Education: Directors of associations with fewer than 2,500 parcels must complete at least 4 hours of continuing education each year. Directors of associations with 2,500 or more parcels must complete at least 8 hours annually.

Enforcement of Covenants and Rules

12. Enforcement of Covenants and Rules: The bill outlines specific guidelines for associations and related committees when enforcing rules:

• Written Notice for Denials: If a request for construction or improvements is denied, the association must provide the parcel owner with a written notice explaining the specific rule or covenant being applied.
• Restrictions on Interior Systems: Associations cannot impose restrictions on interior systems like HVAC, refrigeration, heating, or ventilation that aren't visible from the front of the property, adjacent parcels, common areas, or a golf course, especially if a similar system has already been approved.
• Vegetable Gardens and Clotheslines: Homeowners cannot be prevented from installing vegetable gardens or clotheslines as long as they aren't visible from the front of the property, adjacent parcels, common areas, or a golf course.

Fines, Suspensions, and Liens

13. Fines, Suspensions, and Liens: The bill sets specific rules for issuing and reviewing fines or suspensions by HOAs:

• Hearing Process: Before a fine or suspension can be enforced, a committee must hold a hearing to review the case.
  • Written Notice: Parcel owners must receive a written notice of their right to a hearing at least 14 days in advance.
  • Timing of Hearing: The hearing must occur within 90 days of the notice.
  • Remote Hearings: The committee can hold the hearing by phone or other electronic methods.
  • Written Findings: The committee must provide written findings on the violation within 7 days of the hearing, including when the fine is due or the suspension must be fulfilled.
  • Payment Deadline: The fine must be paid at least 30 days after the written notice of the committee's decision is delivered.
• Attorney Fees and Costs: The association cannot charge attorney fees or costs for actions taken before the fine payment due date. If the violation isn't resolved or the fine isn't paid, reasonable attorney fees and costs can be awarded to the association, but they cannot start accruing until after the fine is due or the appeal period has ended.
• HOAs cannot fine or suspend homeowners for:
  • Leaving garbage bins at the curb less than 24 hours before or after the scheduled collection time.
  • Keeping holiday decorations or lights up for longer than stated in the governing documents unless the decorations are left up more than a week after written notice of the violation.
• HOAs cannot stop homeowners from parking:
  • Personal vehicles, including pickup trucks, in their driveway or any area where they have parking rights.
  • Work vehicles (non-commercial) in their driveway.
  • Assigned first responder vehicles on public roads or rights-of-way within the HOA.
• HOAs cannot prohibit homeowners from:
  • Hiring contractors or workers to enter their property because they aren't on a preferred vendor list or don't have a professional license.
  • Operating vehicles that follow state traffic laws on public roads or their own property unless the vehicle is a commercial motor vehicle.

Electronic Voting

14. Consent for Electronic Voting: The bill allows HOA members to give their consent to vote electronically through an electronic method. Previously, written consent was required.

Assessments

15. Simple Interest Only on Assessments: The bill states that HOAs can only charge simple interest on overdue assessments and installment payments, not compound interest.

Final Thoughts

As Florida continues to refine its laws related to homeowners associations, HOAs must stay vigilant in complying with existing and upcoming regulations. The recent updates on July 1, 2024, bring significant governance changes, impacting CAMs, board members, financial reporting, rule enforcement, hurricane protection standards, and record distribution. HOA boards must stay current on new HOA regulations, particularly as these new criminal penalties and reporting requirements take effect.

For a thorough understanding and application of these laws, consult your HOA's legal team, who can provide detailed guidance and support.

Footnotes & References

1. The Florida Senate. CS/CS/HB 919 - Homeowners' Associations.
2. The Florida Senate. CS/CS/SB 154 - Condominium and Cooperative Associations.
3. The Florida Senate. SB 4-D - Building Safety.
4. The Florida Senate. HB 59 - Provision of Homeowners' Association Rules and Covenants.
5. The Florida Senate. HB 293 - Hurricane Protections for Homeowners' Association.
6. The Florida Senate. HB 1203 - Homeowners' Association.