The Impact of House Bill 1203
Florida homeowners’ associations are facing significant changes with the passage of House Bill No. 1203, just signed into law by Governor DeSantis. This comprehensive legislation introduces new requirements, amends existing provisions, and establishes prohibitions aimed at improving the management and transparency of associations. This bill contains a significant amount of changes and new requirements, as well as serious consequences for noncompliance.
Key Amendments
1. Enhanced Educational Requirements
House Bill No. 1203 amends several sections to enhance the educational standards for community association managers and directors. Specifically, s. 468.4334, F.S. now mandates continuing education for community association managers (CAM) biannually. Additionally, s. 720.3033, F.S. requires newly elected or appointed directors (within 90 days) to complete a certain number of continuing education hours annually. The goal is to ensure that those in charge of managing associations are well-informed and up-to-date with best practices and legal requirements. This is a significant change from the previous law which allowed the requirement to be satisfied by affidavit.
2. Community Association Manager (CAM) Requirements
All Community Association Managers must now:
Attend, in person, at least one annual member or board meeting
Provide the name and contact information for every HOA manager or representative assigned to the HOA along with their hours of availability and a summary of duties, which must be posted to the HOA's website and kept current
Provide a copy of a management agreement
Complete at least 5 hours of CLE on HOAs, with 3 hours relating to recordkeeping
3. Official Records Maintenance and Transparency
The bill amends s. 720.303, F.S. to enforce stricter maintenance protocols for the official records. Associations must maintain official records for a specified number of years (no less than 7) and, by a certain date, must either post key documents on their websites or make them accessible by written request.
4. Financial Accountability
New financial accountability measures have been introduced. Certain associations (>1,000 doors regardless of annual revenue) are now required to prepare audited financial statements, and s. 720.303, F.S. prohibits associations from preparing financial statements for consecutive years to avoid conflicts of interest. Furthermore, s. 720.3085, F.S. clarifies that simple interest, not compound interest, accrues on unpaid assessments and installments.
What does this mean for your Association?
House Bill No. 1203 represents a significant step towards improving governance, transparency, and accountability within Florida's homeowners' associations. By enhancing educational requirements, mandating greater transparency, and imposing stricter financial controls, this legislation aims to protect homeowners and ensure fair management practices. Associations must familiarize themselves with these changes and adapt their policies and procedures accordingly to remain compliant and foster trust within their communities. There are a significant amount of new requirements for board members and CAMs.
For homeowners and board members alike, staying informed about these legislative changes is crucial. If you have any questions or need assistance navigating these new requirements, consider contacting Murrell Law for a consultation today. We specialize in this area so we can remain experts for your community. Our role is to properly advise our client so we can proactively prevent legal claims.