Questions regarding the content of this article may be emailed to Christopher Pope at chrispope@paveselaw.com. On June 14, 2021, the Florida Legislature sent Senate Bill 630 to Governor DeSantis to be signed into law. West Palm Beach, FL 33415 The law applies to all condos, apartments, and rental homes. The board adopted a rule requiring the background checks, but we cant actually find anything about this in the Declaration itself. 15. If the tenant fails to comply, the association can evict the tenant under the landlord-tenant statute by serving a three-day notice to pay or vacate . Board Member Term Limits Section 718.112(2)(d)2, F.S., (SB 630, Page 17). Threats of harming another (d) Clarifies the term emergency to have the same meaning as in Section 252.34(4), F.S., which defines emergency to mean any occurrence, or threat thereof, whether natural, technological, or manmade, in war or in peace, which results or may result in substantial injury or harm to the population or substantial damage to or loss of property.. If the Declaration provides this authority to the association, the maximum amount an association can charge a tenant for such a security deposit is one month's rent, as defined in . Condominium Association, Inc. Rules & Regulations and the signature(s) below authorize Sawgrass Villas . PLEASE TURN OFF YOUR CAPS LOCK. It would appear that a person is eligible to be elected and then, immediately upon being seated, would be deemed to have abandoned his or her seat. Associations often require that prospective tenants submit pages and pages of paperwork, undergo background and credit checks, and pay application fees. Commissioners of Broward County, Fla., passed an ordinance in September requiring HOAs to provide written notice to rejected applicants detailing the reason for the rejection. Section 627.714(4), F.S., has been amended to provide that a condominium unit owners insurance policy may not provide subrogation rights against the association operating the condominium in which the property is located, if the associations insurance policy does not provide a subrogation right against the unit owners. In addition, the association may not prohibit access that is necessary for the sale, lease, or other transfer of title to a unit; or the habitability of the unit; or for the health and safety of such persons. A member of the Board will conduct an interview with the purchaser or tenant and issue a Certificate of Approval, if applicable. It is dangerous for Associations to deny tenant applications without having a specific, justifiable basis, as such a rejection may open the Association up to potential liability. Any access is subject to reasonable restrictions adopted by the association. If the Declaration provides, for example, only that all leases must be approved by the board, this may be sufficient authority for the board to adopt a rule or resolution setting forth good cause for denial. Specifically, the Department of Housing and Urban Development has warned housing providers of potential FHA liability for denying tenant applications based on requests by individuals with disabilities to reside with assistance animals.5 Associations must be careful to ensure that their tenant application policy and reasons for denying tenant applications do not have a disparate impact on any particular race, sex, or people of any particular national origin or familial status, or for that matter, on people with disabilities. Editors note: Attorneys at Goede, Adamczyk, DeBoest & Cross, PLLC, respond to questions about Florida community association law. (Section 718.111(12)(c)1, F.S. If the Association does have tenant approval power, whatever the reason for rejecting the tenant, the Association must be prepared to explain. Again, the restrictions will not apply to rental restrictions that are in place prior to July 1, 2021. 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. Cape Coral, FL 33904 We can also develop the exact language that should be used for their implementation and any amendments to the governing documents, and many of us are also familiar with new online tools that help to facilitate votes of the entire membership as required for such amendments. on Service Animals and Assistance Animals for People with Disabilities in Housing and HUD-Funded Programs, FHEO-2013-01 (April 25, 2013). No owner or agent shall execute a lease with any proposed When you apply to rent a house: the only approval you need is from the homeowner. The tenant must provide the landlord 30 days' written notice, along with a copy of the official military orders or a written verification signed by the service member's commanding officer. Depending upon the circumstances, that may be a charge of either (1) tampering with evidence as provided in Florida Statute 918.13 or (2) obstruction of justice as . They also need to take precautions to keep secure the personal data and records obtained in all tenant applications, and they should be mindful to maintain any application fees consistent with the limit set under Florida law. The 2021 Florida legislative session produced several bills that made numerous changes to condominium law (Chapter 718, Florida Statutes; the Condominium Act) that will affect the operation of condominium associations across the State. 16. 13. 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. Phone: (239) 542-3148 The Association should carefully consider its policy regarding tenant applications, specifically the criteria used by the Association in making its decisions, to ensure that valid interests are protected by such policy. State law limits such fees to . (d) Construction Lien Section 718.121(2), F.S., (SB 630, Page 35). All Rights Reserved. FCAP (Florida Community Association Professionals) is a member-based professional organization dedicated to training, equipping and advocating for Florida community association professionals including managers, service providers and community volunteer leaders. A recent lawsuit filed by a tenant against a Miami condominium association is claiming excessive application fees were charged, violating the Florida law. HOME; . The association eventually settled the case by paying the former president $550,000 and agreeing to purchase her condominium unit. In no event, however, may an association disapprove a proposed purchaser or lessee on the basis of race, gender, religion, national origin, or physical or mental handicap. Division Enforcement of Developers Section 718.501(1), F.S., (SB 630, Page 54). Annual Budget Section 718.112(2)(f)1, F.S., (SB 1966, Page 46). 2022 FCAP - Florida Community Association Professionals, LLC. / SB 630, Page 7), (b) The new law clarifies that a renter only has the right to inspect and copy the Declaration of Condominium, the Bylaws, and Rules. 718.116(4) of the Condominium Act states: " If the association is authorized by the declaration or bylaws to approve or disapprove a proposed lease of a unit, the grounds for disapproval may include, but are not limited to, a unit owner being delinquent in the payment of an assessment at the time approval is sought." The investment group appealed and was successful, with the appellate court ruling that the change was a deprivation of property rights. The legislature was apparently aghast and shortly after the Supreme Courts decision amended Floridas Condominium Act. The notice must specify the amount owed and allow the unit owner at least 30 days to pay the past due assessments without paying additional attorney fees. 2021 LEGISLATIVE UPDATE FOR FLORIDA CONDOMINIUM ASSOCIATIONS. When an association fails to do so, the result can be an expensive education for the Board of Directors and owners. However, the percentage of rental units may not exceed the FHA owner-occupancy requirements. The statute was amended to permit a unit owner to install a natural gas fuel station, subject to the same requirements as a unit owner installing an electric vehicle charging station. That case started when an investment group bought a condominium and the owners in the condominium later amended the declaration to limit rentals. 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. The purpose for an Association to require a security deposit from a renter is to protect against damages to the common elements or association property. For instance, you might have to keep bicycles or kayaks out of view, behind a fence. Section 718.110(13), Florida Statutes states that the rental restriction applies to condominium owners who acquire title to their units after the effective date of that amendment and to those who consent to the amendment. Only approve select dog breeds. Jacob Epstein is an associate with the Miami-based law firm of Haber Slade, P.A. In Aquarian Foundation v. Sholom House, 448 So.2d 1166 (Fla. 3d DCA 1984), Florida's Third District Court of Appeal considered the validity of a condominium association's transfer restrictions . Such is the case in Woodside Village Condominium Association, Inc. v. Jahren, 806 So. Construction Defect & Scheduling Litigation, Non-Compete / Restrictive Covenant Litigation, Trade Secrets & Unfair Competition Litigation, Commercial & Residential Real Estate Disputes, Mediation / Alternative Dispute Resolution, Tax Disputes (IRS Controversy & Litigation). that is degrading to another person. As such, it is unclear how to treat a candidate running for the Board that is more than 90 days delinquent in a monetary obligation other than an assessment. Ombudsmans Office Section 718.5014, F.S., (SB 630, Page 65). For example, if it can be demonstrated that the Associations reliance on a certain type of background check to reject tenant applications has a disparate impact on a minority group, the Association may open itself up to potential FHA liability. Contacting us does not create an attorney-client relationship. Florida recently passed new laws governing emotional support animals (ESA) which go into effect on July 1, 2020. 1995); U.S. v. Weiss, 847 F. Supp. (Section 718.111(12)(c)1, F.S. The association is required to mail the package to the last address provided to the Association. Fines Due Date Section 718.303(b), F.S., (SB 630, Page 53). In addition, it is imperative for associations to base their decisions on legitimate factors as provided within the policies set forth in their governing documents, including but not limited to matters such as credit worthiness, evictions, criminal records, interviews with past landlords, and others. The statute does not limit estoppel fees to condos with such authority in their governing documents so every Florida condominium can charge the fee unless its governing documents prohibit it. That did not retroactively protect the investor group in the Jahren case, but protects owners now. Ownership of Condominium Website The minutes include votes on settlement parameters and include opinions of our counsel. Florida Community Association Professionals: Why Condominium Associations Must Carefully Evaluate Their Long-Standing Tenant Approval Policies Florida Today: The Fair Housing Act and Criminal . 11. Simply stated, the opinion holds that a condominium's governing documents may be amended to ban or restrict a unit owner's right to lease his or her unit, even where the resident . Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. The bill modifies certain provisions in the Florida Statutes that impact condominium associations and homeowners' associations. They must act reasonably. 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. Fax: (239) 332-2243, 4632 Vincennes Blvd., Suite 101 The fee may not be more than $100 per applicant and a husband/wife or parent/dependent child are considered one applicant. Authority to approve sales or leases must be provided in the declaration of the condominium. His practice includes litigation and divorce, business law, estate planning, associations and real estate. That reduced the fees charged by the greedy, but almost every other condominium association quickly increased their estoppel fee to $250. All Rights Reserved. / SB 630 Page 12), 3. 1833 Hendry Street The unit owner is responsible for complying with all federal, state, or local laws or regulations applicable to the installation, maintenance, or removal of an electric vehicle charging station or a natural gas charging station. Be Proactive. My HOA requires a signed lease contract prior to the HOA background check and interview process. Consumer Price Index during that 5-year period. Share with Us. As my colleague Laura Manning-Hudson wrote in this blog in her June 9 post titled Suit Against Boca Condo Association Spotlights Importance of Governing Document Amendments, Filings, a lawsuit filed earlier this year against Boca Pointe Condominium Association highlights the importance of properly adopting leasing restrictions to an associations governing documents and recording them in the local court registry where the association is located. 4. The period of time the condominium association must wait prior to foreclosing a claim of lien has been increased from 30 days to 45 days after the association gives written notice to the unit owner of its intention to foreclose the claim of lien. There will be an exception to the rule of limited application (to successor owners or owners voting for the amendment) as to certain rental prohibitions or regulations for those restrictions that are put in place on or after July 1, 2021. 2d 452 (Fla. 2002). As a preliminary matter, the Associations governing documents may not even grant the Association the power to approve or deny prospective tenants. Senate Bill 630 contains many changes to Chapters 718 and 720, Florida Statutes, which govern condominium and homeowners' associations, respectively. There are new requirements on how an association may deliver and change its method of delivery for assessments and statements of account: (a) An invoice for assessments or a statement of account must be sent by first-class mail or electronic transmission to the unit owners email address maintained in the associations official records. and Urban Dev. 718.101, et. That makes it important to review any limitations on sales or rentals, especially if a buyer is purchasing and plans on renting the unit. The information in this column is general in nature and not intended as legal advice. So, it is possible that the rule is valid, but you should first have the Declaration and the rule analyzed by a licensed Florida attorney to determine whether the authority is properly vested in the board. If the Declaration of Condominium expressly provides that the Association has approval and denial authority, case law indicates that a Board has "good cause" to deny a lease based on a tenant's failure to previously honor the rules in that particular condominium association. (f) Creates Subsection 718.1265(3), F.S., to provide that during a declared state of emergency, condominium associations may not prohibit unit owners, tenants, guests, agents, or invitees of a unit owner from accessing the unit and the common elements and limited common elements for the purposes of ingress to and egress from the unit. 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 . In other words, the association must have the express authority to deny transfers of title, and the restrictions on such sales must be reasonable. 14. Visit www.gadclaw.com or ask questions about your issues for future columns, send your inquiry to: question@gadclaw.com.