Work Contracts and Bids

Before the condominium Florida Statute revisions entered into law, bids and proposals were to be kept for a period of one year. Effective October 1, 2008, now bids and proposals are mandated to be kept for a period of seven years.

The only document shelf-life requirement ensued under the old law are election and proxy voting documents, which can be discarded after one year.

Another addition to the Statute is the association records shall be made available to a unit owner within 45 miles of the condominium property or within the county in which the condominium property is located within 5 working days after receipt of written request by the board or its designee.

The new revisions also addresses the way we review association records. In-lieu of hard copies of official records, the association may now offer the option of making the records of the association available to a unit owner either by internet or by allowing the records to be viewed in electronic format on a computer screen and printed upon request.

16.  A copy of the inspection report as provided for in s. 718.301(4)(p).
(b)  The official records of the association shall be maintained within the state for at least 7 years. The records of the association shall be made available to a unit owner within 45 miles of the condominium property or within the county in which the condominium property is located within 5 working days after receipt of written request by the board or its designee. However, such distance requirement does not apply to an association governing a timeshare condominium. This paragraph may be complied with by having a copy of the official records of the association available for inspection or copying on the condominium property or association property, or the association may offer the option of making the records of the association available to a unit owner either electronically via the Internet or by allowing the records to be viewed in electronic format on a computer screen and printed upon request.

Accounting Records:

Another elucidation to the statutes includes accounting records. It’s always been government standards to maintain accounting records for a period of seven years, including most state governments. Also commonly known, condominium accounting shall be separate for each association.

Effective October 1, 2008, the Florida State legislation added into law that any one person who knowingly or intentionally defaces, destroys, or fails to create or maintain official accounting records of a Condominium Association is personally subject to civil penalties. 

Records shall include:

• Receipts & Expenditures

• Accounts Receivables

• Audits, Reviews, Compilation or Cash & Expenditure Reports,

• Bids & Proposals

• Annual Meeting Packages are maintained for one year.

• Rental Records

• Question & Answer Sheets

• All Operation Records

• Inspection Report

For more fun facts see: Financial Reporting Requirements for Homeowner Associations.

(12)  OFFICIAL RECORDS.—
11.  Accounting records for the association and separate accounting records for each condominium which the association operates. All accounting records shall be maintained for a period of not less than 7 years. Any person who knowingly or intentionally defaces or destroys accounting records required to be maintained by this chapter, or who knowingly or intentionally fails to create or maintain accounting records required to be maintained by this chapter, is personally subject to a civil penalty pursuant to s. 718.501(1)(d). The accounting records shall include, but are not limited to:
a.  Accurate, itemized, and detailed records of all receipts and expenditures.
b.  A current account and a monthly, bimonthly, or quarterly statement of the account for each unit designating the name of the unit owner, the due date and amount of each assessment, the amount paid upon the account, and the balance due.
c.  All audits, reviews, accounting statements, and financial reports of the association or condominium.
d.  All contracts for work to be performed. Bids for work to be performed shall also be considered official records and shall be maintained by the association.
12.  Ballots, sign-in sheets, voting proxies, and all other papers relating to voting by unit owners, which shall be maintained for a period of 1 year from the date of the election, vote, or meeting to which the document relates, notwithstanding paragraph (b).
13.  All rental records, when the association is acting as agent for the rental of condominium units.
14.  A copy of the current question and answer sheet as described by s. 718.504.
15.  All other records of the association not specifically included in the foregoing which are related to the operation of the association.
16.  A copy of the inspection report as provided for in s. 718.301(4) (p).

Fiduciary Duty

718.111 (a) of the Florida Statutes avow that directors, officers and managers automatically have fiduciary duties and responsibilities directly or indirectly owed to its owner/s of shared association. Effective October 1, 2008, a new legislative ruling signifies fiduciary duties to be the same as any other non-profit corporation.

One reason for this clarification is the problematic of unfair practices such as kick-backs. Directors, officers and property managers are subject to civil penalties for illegal practices by accepting any thing or service of value for which consideration has not been provided for his/her own benefit or that of his/her immediate family.

The association may however, receive services or items in connection with trade-fair shows or education programs.

718.111; the association.
(1)  CORPORATE ENTITY.–
(a)  The operation of the condominium shall be by the association, which must be a Florida corporation for profit or a Florida corporation not for profit. However, any association which was in existence on January 1, 1977, need not be incorporated. The owners of units shall be shareholders or members of the association. The officers and directors of the association have a fiduciary relationship to the unit owners. It is the intent of the Legislature that nothing in this paragraph shall be construed as providing for or removing a requirement of a fiduciary relationship between any manager employed by the association and the unit owners. An officer, director, or manager may not solicit, offer to accept, or accept any thing or service of value for which consideration has not been provided for his or her own benefit or that of his or her immediate family, from any person providing or proposing to provide goods or services to the association. Any such officer, director, or manager who knowingly so solicits, offers to accept, or accepts any thing or service of value is subject to a civil penalty pursuant to s. 718.501(1)(d). However, this paragraph does not prohibit an officer, director, or manager from accepting services or items received in connection with trade fairs or education programs. An association may operate more than one condominium.

Director Abstaining from Voting:

In an attempt to avoid a conflict of interest, Directors & Officers would vote, “abstain, neither, nor, refrain, desist and even present”. Although they may have been savvy, the vote used would officially count as an opposed vote. Likewise, if Directors & Officers vote neither, nor or abstain etc… the vote was presumed to have assented to the action.

Effective October 1, 2008; if Directors & Officers vote to abstain on any corporate action taken, he/she would be presumed to have taken no position with regard to the action. Consequently, Directors & Officers may now vote to abstain without the minutes reflecting an opposition.

718.111  The association.–

1(b)  A director of the association who is present at a meeting of its board at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless he or she votes against such action or abstains from voting. A director of the association who abstains from voting on any action taken on any corporate matter shall be presumed to have taken no position with regard to the action. Directors may not vote by proxy or by secret ballot at board meetings, except that officers may be elected by secret ballot. A vote or abstention for each member present shall be recorded in the minutes.

There had been few attempts of the Florida legislation to clarify additional administrative fees.
Upon adoption or written management agreement, the Board has the authority to charge a fee for a certificate. This means, if not stated in your community documents, a fee for the preparation of an estoppel certificate may be collected. The legislation does not state the minimum amounts.

The local standard for prepared board approval forms are $100.00, which includes processing. Question & Answer sheets would be a $25.00 additional charge. Assuming the amended resolution means the estoppel certificate, a reasonable additional charge may range from $25.00 to $35.00. Clarification is scarce in this amendment.

If the sale fell through, and the payor is NOT a unit owner, within 30 days the payor can request a refund. The seller will be responsible for reimbursements and collected by the Association as an assessment. See Section 718.116:

(d)  The authority to charge a fee for the certificate shall be established by a written resolution adopted by the board or provided by a written management, bookkeeping, or maintenance contract and is payable upon the preparation of the certificate. If the certificate is requested in conjunction with the sale or mortgage of a unit but the closing does not occur and no later than 30 days after the closing date for which the certificate was sought the preparer receives a written request, accompanied by reasonable documentation, that the sale did not occur from a payor that is not the unit owner, the fee shall be refunded to that payor within 30 days after receipt of the request. The refund is the obligation of the unit owner, and the association may collect it from that owner in the same manner as an assessment as provided in this section.

Now it is mandatory to have an insurance appraisal prepared by an independent appraiser at least once every 36 months. The appraisal must be based upon actual replacement costs. This may be a confirmed law, but has always been a common practice to ensure adequate coverage.

Another new statute confirms that the board of directors will establish the insurance deductibles base on local standards. Again, this has been common practice. It’s common to have an Insurance Committee recommend deductibles for the Board to consider.

On or after January 1, 2009, all portions of a condominium property with any alteration or additions must provide primary coverage excluding all personal property. Once again, this is common practice.

Beyond recall by the association, homeowners may display a United States flag in a respectful manner. However, if the flag is obtrusively too big, the board may deem a nuisance. See, “Displaying an American Flag in a Planned Development, Condominium or Homeowner”.

If an owner, resident or occupant has a disability which requires wheelchair access, may install a ramp under these conditions:

Design, plans or specifications are submitted to the association in advance. This should be part of the application process.

The access ramp should be designed to aesthetically blend with walkways. The board can make reasonable chances to architecturally fuse or fit with existing surfaces and structures.

The parcel owner must submit to the association an affidavit from a physician attesting to the medical necessity or disability of the resident or occupant of the parcel requiring the access ramp. Certification used for s. 320.0848 shall be sufficient to meet the affidavit requirement.

Most governing documents prohibits signs posted in the community. However, a security sign of reasonable size cannot be revoked if placed ten feet from the front entrance of a home.

A Strategic Lawsuits Against Public Participation (SLAPP) suit cannot with merit be brought against a parcel owner for any of the above actions. Nor, can a homeowner association use association funds to bring such actions to court. For more fun facts see, “What you should know about Hurricane Shutter Installations in Condominiums and Cooperatives”. To review supporting documents, click here.

720.304  Right of owners to peaceably assemble; display of flag; SLAPP suits prohibited.–
(1)  All common areas and recreational facilities serving any homeowners’ association shall be available to parcel owners in the homeowners’ association served thereby and their invited guests for the use intended for such common areas and recreational facilities. The entity or entities responsible for the operation of the common areas and recreational facilities may adopt reasonable rules and regulations pertaining to the use of such common areas and recreational facilities. No entity or entities shall unreasonably restrict any parcel owner’s right to peaceably assemble or right to invite public officers or candidates for public office to appear and speak in common areas and recreational facilities.
(2)  Any homeowner may display one portable, removable United States flag or official flag of the State of Florida in a respectful manner, and on Armed Forces Day, Memorial Day, Flag Day, Independence Day, and Veterans Day may display in a respectful manner portable, removable official flags, not larger than 41/2 feet by 6 feet, which represent the United States Army, Navy, Air Force, Marine Corps, or Coast Guard, regardless of any declaration rules or requirements dealing with flags or decorations.
(3)  Any owner prevented from exercising rights guaranteed by subsection (1) or subsection (2) may bring an action in the appropriate court of the county in which the alleged infringement occurred, and, upon favorable adjudication, the court shall enjoin the enforcement of any provision contained in any homeowners’ association document or rule that operates to deprive the owner of such rights.
(4)  It is the intent of the Legislature to protect the right of parcel owners to exercise their rights to instruct their representatives and petition for redress of grievances before the various governmental entities of this state as protected by the First Amendment to the United States Constitution and s. 5, Art. I of the State Constitution. The Legislature recognizes that “Strategic Lawsuits Against Public Participation” or “SLAPP” suits, as they are typically called, have occurred when members are sued by individuals, business entities, or governmental entities arising out of a parcel owner’s appearance and presentation before a governmental entity on matters related to the homeowners’ association. However, it is the public policy of this state that government entities, business organizations, and individuals not engage in SLAPP suits because such actions are inconsistent with the right of parcel owners to participate in the state’s institutions of government. Therefore, the Legislature finds and declares that prohibiting such lawsuits by governmental entities, business entities, and individuals against parcel owners who address matters concerning their homeowners’ association will preserve this fundamental state policy, preserve the constitutional rights of parcel owners, and assure the continuation of representative government in this state. It is the intent of the Legislature that such lawsuits be expeditiously disposed of by the courts.
(a)  As used in this subsection, the term “governmental entity” means the state, including the executive, legislative, and judicial branches of government, the independent establishments of the state, counties, municipalities, districts, authorities, boards, or commissions, or any agencies of these branches which are subject to chapter 286.
(b)  A governmental entity, business organization, or individual in this state may not file or cause to be filed through its employees or agents any lawsuit, cause of action, claim, cross-claim, or counterclaim against a parcel owner without merit and solely because such parcel owner has exercised the right to instruct his or her representatives or the right to petition for redress of grievances before the various governmental entities of this state, as protected by the First Amendment to the United States Constitution and s. 5, Art. I of the State Constitution.
(c)  A parcel owner sued by a governmental entity, business organization, or individual in violation of this section has a right to an expeditious resolution of a claim that the suit is in violation of this section. A parcel owner may petition the court for an order dismissing the action or granting final judgment in favor of that parcel owner. The petitioner may file a motion for summary judgment, together with supplemental affidavits, seeking a determination that the governmental entity’s, business organization’s, or individual’s lawsuit has been brought in violation of this section. The governmental entity, business organization, or individual shall thereafter file its response and any supplemental affidavits. As soon as practicable, the court shall set a hearing on the petitioner’s motion, which shall be held at the earliest possible time after the filing of the governmental entity’s, business organization’s or individual’s response. The court may award the parcel owner sued by the governmental entity, business organization, or individual actual damages arising from the governmental entity’s, individual’s, or business organization’s violation of this section. A court may treble the damages awarded to a prevailing parcel owner and shall state the basis for the treble damages award in its judgment. The court shall award the prevailing party reasonable attorney’s fees and costs incurred in connection with a claim that an action was filed in violation of this section.
(d)  Homeowners’ associations may not expend association funds in prosecuting a SLAPP suit against a parcel owner.
(5)(a)  Any parcel owner may construct an access ramp if a resident or occupant of the parcel has a medical necessity or disability that requires a ramp for egress and ingress under the following conditions:
1.  The ramp must be as unobtrusive as possible, be designed to blend in aesthetically as practicable, and be reasonably sized to fit the intended use.
2.  Plans for the ramp must be submitted in advance to the homeowners’ association. The association may make reasonable requests to modify the design to achieve architectural consistency with surrounding structures and surfaces.
(b)  The parcel owner must submit to the association an affidavit from a physician attesting to the medical necessity or disability of the resident or occupant of the parcel requiring the access ramp. Certification used for s. 320.0848 shall be sufficient to meet the affidavit requirement.
(6)  Any parcel owner may display a sign of reasonable size provided by a contractor for security services within 10 feet of any entrance to the home.

In order to pass the “paper trail” bill, a number of amendments were added to satisfy the greedy legislators. One of the attached amendments was to move state primary back to January 29, 2008, which blatantly undermines the Democratic National Committee (DNC).  For a chance to regain compliance, the DNC gave a thirty day period or window by allowing florida state legislation to move democratic primary dates forward. The Florida legislation decided to argue with the DNC instead. Since Florida legislation pissed off the DNC, us floridians lost all votes for the presidential democratic nomination.

In the first place, if goveneror Charlie Crist made a consious decision to fight for the removal of moving the earily primary date, we would have had a vote. Now that the presumptuous mistake is in place, Charlie Crist is bickering with the DNC to allow our votes to count. This is one out of many screw ups which costs floridians. But this mistake doesn’t compare to the promise made by Charlie Crist if elected, he would lower our homeowners insurance. Incase you haven’t noticed, our homeower insurance rates were never lowered, in fact Charlie Crist stepped down and agreed with the greedy legislators to freeze Citizen’s insurance rates for three years.

Gee thanks Mr. Charlie Crist, now that insurance rates are two to three times higher (by Citizen’s, a Florida controlled insurance company) a freeze now gives any new insurance companies a higher-standard-rate to compete with. The end result is that floridains are stuck with ridiculously high insurance premimums and most likely will only raise to an even higher rate after the misally three year freeze.

More than ever, high insurance rates by Citizen’s, are currently hurting floridains financailly. Especially those who live on fixed incomes. Citizen’s high insurance rates are the direct result of associations exsuberately high maintenance fees. The only remedy floridains have for combating high insurance rates is to read, “Property Insurance at a All time High” then write and send an appropraite letter to the florida state legislation.

The second notice should have an agenda as described in the community documents. Since all agenda items are open for membership discussion, written description or purposes of the meeting would not be necessary.

Although rules and regulation adopted by the board can govern the duration, frequency and manner of statements given, as long as written request was given prior of the meeting, a member can speak for a minimum of three minutes on each subject.

In the event there is not a quorum at the annual meeting, the board may reconvene and continue the meeting on a later date. The opted date should be announced at the meeting and then the adjournment. For those members who were not registered at the original annual meeting, a notice should be sent and posted with the date in which the meeting will reconvened.

Proxies must state the date, time, place of annual meeting, signed and dated by the registered owner of record. Addresses are helpful for the administration. A proxy is executed for a specific meeting as the meeting may lawfully be adjourned and reconvened from time to time. Although intended to assign a proxy holder or substitute to act in place of the executioner, the proxy is revocable and expirers after ninety days after originally given.

Election of directors must be conducted as set fourth in the governing bylaws of the association. Even if a formal election is in process prior of annual meeting, a register member may nominate him or herself as a candidate for the board. Any election disputes between members and the association are subject to mandatory arbitration see, “Alternative Dispute Resolution for both Condominium & Homeowner Associations”. To review supporting documents, click here.
720.306 (4)  CONTENT OF NOTICE.–Unless law or the governing documents require otherwise, notice of an annual meeting need not include a description of the purpose or purposes for which the meeting is called. Notice of a special meeting must include a description of the purpose or purposes for which the meeting is called.
(5)  NOTICE OF MEETINGS.–The bylaws shall provide for giving notice to members of all member meetings, and if they do not do so shall be deemed to provide the following: The association shall give all parcel owners and members actual notice of all membership meetings, which shall be mailed, delivered, or electronically transmitted to the members not less than 14 days prior to the meeting. Evidence of compliance with this 14-day notice shall be made by an affidavit executed by the person providing the notice and filed upon execution among the official records of the association. In addition to mailing, delivering, or electronically transmitting the notice of any meeting, the association may, by reasonable rule, adopt a procedure for conspicuously posting and repeatedly broadcasting the notice and the agenda on a closed-circuit cable television system serving the association. When broadcast notice is provided, the notice and agenda must be broadcast in a manner and for a sufficient continuous length of time so as to allow an average reader to observe the notice and read and comprehend the entire content of the notice and the agenda.
(6)  RIGHT TO SPEAK.–Members and parcel owners have the right to attend all membership meetings and to speak at any meeting with reference to all items opened for discussion or included on the agenda. Notwithstanding any provision to the contrary in the governing documents or any rules adopted by the board or by the membership, a member and a parcel owner have the right to speak for at least 3 minutes on any item, provided that the member or parcel owner submits a written request to speak prior to the meeting. The association may adopt written reasonable rules governing the frequency, duration, and other manner of member and parcel owner statements, which rules must be consistent with this subsection.
(7)  ADJOURNMENT.–Unless the bylaws require otherwise, adjournment of an annual or special meeting to a different date, time, or place must be announced at that meeting before an adjournment is taken, or notice must be given of the new date, time, or place pursuant to s. 720.303(2). Any business that might have been transacted on the original date of the meeting may be transacted at the adjourned meeting. If a new record date for the adjourned meeting is or must be fixed under 1s. 617.0707, notice of the adjourned meeting must be given to persons who are entitled to vote and are members as of the new record date but were not members as of the previous record date.
(8)  PROXY VOTING.–The members have the right, unless otherwise provided in this subsection or in the governing documents, to vote in person or by proxy. To be valid, a proxy must be dated, must state the date, time, and place of the meeting for which it was given, and must be signed by the authorized person who executed the proxy. A proxy is effective only for the specific meeting for which it was originally given, as the meeting may lawfully be adjourned and reconvened from time to time, and automatically expires 90 days after the date of the meeting for which it was originally given. A proxy is revocable at any time at the pleasure of the person who executes it. If the proxy form expressly so provides, any proxy holder may appoint, in writing, a substitute to act in his or her place.
(9)  ELECTIONS.–Elections of directors must be conducted in accordance with the procedures set forth in the governing documents of the association. All members of the association shall be eligible to serve on the board of directors, and a member may nominate himself or herself as a candidate for the board at a meeting where the election is to be held. Except as otherwise provided in the governing documents, boards of directors must be elected by a plurality of the votes cast by eligible voters. Any election dispute between a member and an association must be submitted to mandatory binding arbitration with the division. Such proceedings shall be conducted in the manner provided by s. 718.1255 and the procedural rules adopted by the division.
(10)  RECORDING.–Any parcel owner may tape record or videotape meetings of the board of directors and meetings of the members. The board of directors of the association may adopt reasonable rules governing the taping of meetings of the board and the membership.

Annual meetings are held for the purpose of any business that comes before the members and for the election of directors, if necessary. If there were a lack of interest to run for the board, there would be no election at the annual meeting. The remaining officers at the time of the annual meeting will automatically return or shift to directors and would appoint  volunteers to fill board vacancies. If there were no interest to fill board vacancies to constitute a quorum, beware. See, “The Consequences of not having a Board Sufficient to Constitute a Quorum”.

If not provided for in the governing bylaws, the minimun Florida Statute quorum requirement of members at an annual meeting is 30% of the voting interest. Many homeowner documents require a 33% to constitute a quorum. A lower number of quorum requirement in the community documents, supersedes the Florida Statute, see 720.306 on the next page.

A quorum of an annual meeting can be in person or by proxy. Decisions requiring a members vote, such as a roll over or a waiver of financial reporting are carried by a majority vote of members present. Unless otherwise stated in the governing articles of incorporation’s or bylaws, amendment of governing documents requires a 2/3% vote of the total voting interest.

Unless otherwise provided for in the governing documents, changes of the total voting interest due to appurtenances or addition of property, requires a 100% members vote. For more fun facts see, “Sale and Lease Transfer Fee’s for Condominium and Homeowner Associations”. To review supporting documents, click here.

720.306  Meetings of members; voting and election procedures; amendments.–
(1)  QUORUM; AMENDMENTS.–
(a)  Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests. Unless otherwise provided in this chapter or in the articles of incorporation or bylaws, decisions that require a vote of the members must be made by the concurrence of at least a majority of the voting interests present, in person or by proxy, at a meeting at which a quorum has been attained.
(b)  Unless otherwise provided in the governing documents or required by law, and other than those matters set forth in paragraph (c), any governing document of an association may be amended by the affirmative vote of two-thirds of the voting interests of the association.
(c)  Unless otherwise provided in the governing documents as originally recorded or permitted by this chapter or chapter 617, an amendment may not materially and adversely alter the proportionate voting interest appurtenant to a parcel or increase the proportion or percentage by which a parcel shares in the common expenses of the association unless the record parcel owner and all record owners of liens on the parcels join in the execution of the amendment. For purposes of this section, a change in quorum requirements is not an alteration of voting interests. The merger or consolidation of one or more associations under a plan of merger or consolidation under chapter 607 or chapter 617 shall not be considered a material or adverse alteration of the proportionate voting interest appurtenant to a parcel.
(2)  ANNUAL MEETING.–The association shall hold a meeting of its members annually for the transaction of any and all proper business at a time, date, and place stated in, or fixed in accordance with, the bylaws. The election of directors, if one is required to be held, must be held at, or in conjunction with, the annual meeting or as provided in the governing documents.