The investment group argued the amendment was a violation of their property rights. Transfer Fees/Security Deposits Section 718.112(2)(i), F.S., (SB 630 Page 25), The maximum permissible transfer fee has been increased from $100 to $150. Editors note: Attorneys at Goede, Adamczyk, DeBoest & Cross, PLLC, respond to questions about Florida community association law. Here we explain the ordinance and discuss whether other states allow associations to approve or reject potential HOA purchasers and renters, and the pros and cons. Florida laws guarantee these rights to associations, but The Fair Housing Act still applies in regard to race, religion, age, etc. It also provides that condominium associations may charge a fee for approval of leases or sales, as long as the fee is provided in the declaration, articles or bylaws. The case ended up at the Florida Supreme Court and the Justices agreed with the trial court, leaving the investment group with a condominium unit they could no longer rent as intended. Florida community associations typically have the right under their governing documents to regulate and approve leases and tenants. Florida Statute 718.303 In Florida, Condominium Associations have the ability to access Fines and issue Suspensions upon Unit Owners pursuant to Florida Statutes, 718.303. Annual Budget Section 718.112(2)(f)1, F.S., (SB 1966, Page 46). Ownership of Condominium Website Combined Declaration of One or More Condominiums Section 718.405(5), F.S., (SB 630, Page 54). Competent legal counsel should be consulted if you have questions regarding compliance with the law. 3. They are for all intents and purposes tenants and fall under landlord-tenant law. However, what information may the Association actually rely upon in making its decision to accept or deny a prospective tenants application? Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. A:Yes, the statutes only require that the notice of the meeting along with the election materials be sent at least fourteen (14) days before the meeting and election. An April letter from the president of the doomed Florida building's condo board association reportedly warned the residents that the "observable damage such as in the garage" had gotten . Courtesy Notice of Late Assessment Section 718.121(5), F.S., (SB 56, Page 12). Photo courtesy of Oleg Ivanov A few greedy condos, mostly in the Miami area, charged five and even ten times that amount. 5. All Rights Reserved. Those letters are known as estoppel letters for years, most associations charged $100 for an estoppel letter. Illegal Discriminatory Restrictions Section 718.112(1)(c), F.S., (SB 630, Page 16). Why Condominium Associations Must Carefully Evaluate Their Long-Standing Tenant Approval Policies. Phone: (239) 542-3148 The law clarifies that a multi-condominium association may adopt a consolidated or combined Declaration for the condominiums without being required to merge the condominiums into a single condominium. seq., is similar to the Homeowners' Association Act (HAA), except that it applies to condominium associations rather than homeowners' associations.. When weighing the information discovered during the application process, the Association must consider: (i) whether the Associations process for approving and/or rejecting prospective tenant applications complies with the Associations governing documents and current laws; (ii) whether the evaluation criteria used by the Association will have a disparate impact on a minority group; and (iii) whether the Association can provide a prospective tenant with a specific and appropriate reason for rejection. Use the 'Report' link on A person buying a condominium unit buys with actual or constructive knowledge of provisions of the declaration and is bound by them. West Palm Beach, FL 33415 Phone: (561) 471-1366 The annual budget for condominium associations must be proposed to unit owners and adopted at least 14 days before the beginning of the fiscal year. In other words, previous legal cases addressing the restrictions on a persons ability to sell or transfer real property have upheld the restrictions only to the extent that they are considered reasonable. Note, however, that Section 718.112(2)(n), F.S., was not amended and still provides that a director or officer more than 90 days delinquent in the payment of any monetary obligation due the association shall be deemed to have abandoned the office, creating a vacancy in the office to be filled according to law. 1. Condominium associations may extinguish a discriminatory restriction in the manner provided under Section 712.065, F.S., (i.e., a majority vote of the Board of Directors). However, condominiums can refuse to approve a transfer when the unit owner is delinquent in amounts due to the association. One measure that the courts have determined to be reasonable when disapproving a potential sale of a home or unit is the right of first refusal, which would require an association or its designated representative to step in and consummate the sale or lease of the potential purchaser or tenant who is disapproved. The Board may make available, install, or operate an electric vehicle charging station or a natural gas fuel station upon the common elements or association property, and establish the charges or the manner of payments for the unit owners, residents, or guests who use the electric vehicle charging station or a natural gas fuel station. However, an associations board is not necessarily free to approve or disapprove prospective purchasers and tenants merely because the authority to do so appears in the associations governing documents. The association can also charge a security deposit in connection with approval of a lease, not to exceed the equivalent of one months rent, but only if the authority to do so is in the declaration or bylaws. There seems to be a common misunderstanding by the directors of many community associations in Florida as to their rights to approve and screen individuals seeking to purchase or rent homes within their communities. Firstly, associations need to ensure that they meet the deadlines and procedures set for tenant reviews under their own governing documents. All Rights Reserved. This new statutory provision will be reflected in a new subsection (h), to be added to Section 720.306 of the Florida Statutes. If the association has only sent the package to the printer, for example, and not actually postmarked the package, there is still time and the election would not be overturned provided the package is timely mailed. Condominium Association, Inc. Rules & Regulations and the signature(s) below authorize Sawgrass Villas . Whenever a tenant application is about to be denied, the Association must be ready to provide the specific reason for the denial, with such reason having its basis in a counsel-reviewed, tenant application policy. Contacting us does not create an attorney-client relationship. The FHA prohibits housing providers from refusing to otherwise make unavailable or deny, a dwelling to any person because of race, color, religion, sex, familial status, or national origin.4 Despite the FHAs language, which provides protections for minority groups based on race, color, religion, sex, familial status, or national origin, the FHAs reach has been expanded to protect other minority groups not specifically listed in the statute. j. Note that notice may now also be posted on association property (i.e. Serious problems may lead the landlord to seek an eviction without giving the tenant an . / SB 630, Page 40), 12. The building, about 6 miles from Surfside, was deemed. 15. The case ended up at the Florida Supreme Court and the Justices agreed with the trial court, leaving the investment group with a condominium unit they could no longer rent as intended. They must act reasonably. Q:Our condominium association is involved in litigation with one of our owners. In, Barnett and Klein v. The President of Palm Beach, a Condominium, , an owner recovered damages for tortious interference with a contractual relationship when the association denied his effort to rent relying on a rule adopted by the board instead of a limitation in the declaration. The evaluation would occur at the time the application is filed. Q:Our election is in 20 days and the board claims to have mailed out the package last week. The minutes include votes on settlement parameters and include opinions of our counsel. However, the percentage of rental units may not exceed the FHA owner-occupancy requirements. A unit owner or lienor may contest a plan of termination through pre-suit mediation, and then file in a court of law as an alternative to arbitration with the Division. He can be reached at dpodein@dhaberlaw.com. If the Association does have tenant approval power, whatever the reason for rejecting the tenant, the Association must be prepared to explain. The prospective owner in the latter case went to court and the judge ruled insisting on tax returns was overreaching and unenforceable. (b) Before changing the method of delivery for any invoice for assessments or a statement of account, the association must deliver a written notice of such change to the unit owners at least 30 days before it sends the invoice for assessments or the statement of account by the new delivery method. This is different from approvals and rejections of prospective tenants, which should always be conducted under the careful guidance of qualified professionals to help avoid any potential legal and financial liabilities. In the Inclusive Communities Project opinion, Justice Kennedy explained: An important and appropriate means of ensuring that disparate-impact liability is properly limited is to give housing authorities and private developers leeway to state and explain the valid interest served by their policies. For example, prior to the Inclusive Communities Project decision, certain federal Courts found that limiting the number of occupants in a unit can be an acceptable policy under the FHA. Therefore, to ascertain what approval rights the association may have regarding a prospective tenant or purchaser, the association should begin by reviewing its own governing documents. However, effective July 1, 2021, a declaration or other governing document of a homeowners association that has more than 15 parcel owners, or an amendment to a declaration or other governing document of such a homeowners association, that contains a prohibition or regulation as to rental agreements, applies only to a parcel owner who acquires title to the parcel after the effective date of the governing document or amendment, or to a parcel owner who consents, individually or through a representative, to the governing document or amendment. Your California Privacy Rights/Privacy Policy. He is a partner and an experienced construction and real estate attorney with the Pavese Law Firm, 1833 Hendry Street, Fort Myers, FL 33901; Telephone: (239) 334-2195; Fax: (239) 332-2243. ), (b) The statute now provides that arbitration is binding on the parties if all parties agree to be bound in writing. / SB 630, Page 9), (c) The association may not require a unit owner to demonstrate any purpose or state any reason for inspecting the official records of the association. Condominiums Rights to Approve Transfers, Rules can be changed by unit owners voting to amend the declaration. Often times, these directors are disappointed to learn that Florida law and their associations governing documents are not as restrictive as they would like. Section 718.104 (5) Florida Statutes provides that a declaration of condominium, as originally recorded or as amended, may include restrictions concerning use, occupancy and transfer of units. 11. Provide contact information for all insurance maintained by the association. He concentrates his practice areas on business litigation, condominium and community association law, construction law, and real estate litigation. This statute includes natural gas fuel stations in the prohibition against filing a lien against a condominium association for labor or materials related to the installation of an electric vehicle charging station. Complaints against Community Association Manage rs and Firm s can be submitted here. Some experts have gone so far as to state an association must buy a condominium unit when it refuses to approve a sale. In many cases, this is not a power originally vested to the HOA, but one they have created. The Association should consult with its legal counsel before utilizing certain powers provided for in the governing documents, as sometimes, the very powers articulated in the those documents may be in violation of applicable laws. Impose an HOA pet weight limit for each dog. 2d 452 (Fla. 2002). Both approvals are required to lease a condo in Miami. A:This is a good question because the Florida Condominium Act does require that the Board keep minutes of every board meeting, and that minutes are official records that must be made available to owners when requesting access to official records. . The investment group argued the amendment was a violation of their property rights. Right to Contest Termination of Condominium Section 718.117(16), F.S., (SB 630, Page 33). On the other hand, the statute also provides that owners are not entitled to access official records which includes any attorney client privilege or attorney work product prepared in connection with a lawsuit.