Blogs

You may recall that on March 20th, our firm provided an update on certain legislation that may be entered into law this session. That update can be found here. Shortly thereafter, Governor Rick Scott signed HB617 into law; it is now Chapter 2018-55, Laws of Florida. A few days later, Governor Scott also signed HB841 into law; it is now Chapter 2018-96, Laws of Florida.

Of all the bills filed regarding community associations from this 2018 Florida legislative session, only two major bills had survived by the end of the session on Friday, March 9: HB 841, which is this year’s “omnibus” bill, and HB 617, which relates to MRTA (the Florida Marketable Record Title Act). As of the date of writing this blog, the bills were on the way to the Governor for signature, or potentially for veto. As such, it is important to note that as of the date of writing this blog, these bills have NOT been fully approved and are NOT yet law. Stay tuned! If the bills do become law, expect a more detailed update in the weeks and months to come.

Owners who fail to pay their association or mortgage lender often also fail to pay county property taxes, which can result in a tax deed sale and related elimination of past-due assessments. Such taxes accrue annually on November 1st, and are late if not paid by April 1st of the following year. On June 1st, the tax collector can sell a “tax certificate” for the delinquent taxes and interest thereon, at a public auction. The purchaser of a tax certificate (e.g., the county where the property is located, if there are no bidders) may then charge the cost of purchasing the certificate plus interest to “redeem” (resolve and eliminate) the certificate by paying the taxes and interest due.

Designating a Registered Agent for your Association is a requirement of Florida’s Not-For-Profit Corporation Law.  If you do not designate a Registered Agent, your corporate status will be in jeopardy of being dissolved and your Association will lose all protection that is afforded you as a Not-For-Profit Corporation.  So, what does that mean?   You may have heard the phrase “piercing the corporate veil.”   No Registered Agent?  Consider your corporate veil torpedoed!  Board Members and Officers may now be personally exposed to liability for matters that should be your Association’s responsibility and your personal assets could be at risk.

Although the next legislative session has not yet started as of the date of writing (note: starts January 9, 2018), bills affecting community associations are often filed months in advance of the start of the session. We are most closely monitoring, at this time, Senate Bill 266.

Condominium Associations in Florida are run by Volunteers who for the most part are individuals who have no criminal intent while performing their Association duties.  According to the Final Report of the Miami-Dade County Grand Jury filed February 6, 2017, Condominium Associations and Management Companies have criminal tendencies.  The Grand Jury claims the Department of Business and Professional Regulations are not coming down hard enough or the existing Condo laws and regulations lack “teeth” to keep these rogue Associations and/or Management Companies in check.

It is true that after the required notice, boards can generally enact rules & regulations, via a board vote at a duly called board meeting. However, that does not mean such rules and regulations will be valid, binding, effective and enforceable. Determining the validity, effectiveness and enforceability of board adopted rules & regulations depends on various factors.  Moreover, such rules & regulations may have significant limitations.