Florida’s real estate landscape is undergoing significant changes, marked by new legislative measures impacting homeowners associations and condominium regulations, alongside ongoing efforts to combat widespread real estate scams. These developments aim to enhance transparency, protect consumers, and ensure structural integrity in residential properties across the state.
New Regulations for HOAs and Condominiums
Recent legislative changes are reshaping how homeowners associations (HOAs) and condominiums operate in Florida, focusing on financial management and structural safety.
- Debit Card Prohibition: Florida law now explicitly prohibits HOAs governed by Chapter 720 from using debit cards for association expenses. This measure aims to prevent misuse of funds, with violations classified as theft.
- Credit Card Usage: While debit cards are banned, HOAs are permitted to use credit cards for business expenses, provided their governing documents do not prohibit it.
- Meeting Minutes: Meeting minutes should be concise, recording actions taken rather than detailed discussions or personal opinions. This helps limit potential liability for associations.
- Board and Committee Meetings: Board members gathering to observe property conditions, even without discussion or voting, constitutes a meeting requiring proper notification. Requirements for committee meeting notices vary based on the community type (condominium, cooperative, or HOA) and the committee’s function, with stricter rules for committees making financial decisions or taking final action.
Mandatory Reserves and Inspections for Condos
In response to the 2021 Surfside condominium collapse, Florida has enacted new laws mandating rigorous inspections and fully funded reserves for condominiums and cooperatives to ensure structural integrity.
- Milestone Structural Inspections: Buildings at least three stories high and 25 years or older (or 30 years if further from the coastline) must undergo milestone structural inspections by licensed engineers or architects.
- Structural Integrity Reserve Studies: Associations are now required to conduct studies to identify and fully fund reserves for future repairs, including critical components like roofs, elevators, and concrete. Previously, associations could waive or underfund these reserves.
- Repair Timelines: If substantial deterioration is found during inspections, a second inspection is required, and repairs must be scheduled or completed within a year.
- Disclosure Requirements: Sellers must provide prospective buyers with copies of milestone inspection reports and structural integrity reserve studies, promoting transparency in real estate transactions.
Justice for MV Realty Scam Victims
Thousands of Florida homeowners who fell victim to MV Realty’s deceptive
Sources
- Can HOAs use debit cards for expenses, Naples Daily News.
- Thousands of Florida homeowners scammed by MV Realty could soon get justice, Tampa Bay Times.
- New Florida Law Requires Reserves for Condo, Co-op Repairs, Behind The Hedges.
- NAR Clarifies Ethics Code, Drops Commingling Rule, | Florida Realtors.