2024 Changes to HOA Law
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Matt G. Firestone and Paul T. Hinckley recently provided the firm’s HOA clients with a detailed written analysis of the recent changes to the HOA statute (Chapter 720) that resulted from legislation that was recently adopted by Governor DeSantis.
Chapter 720 is divided into numerous sub-sections. The sections dealing with the operation of a homeowner’s association are found in subsections 720.301 through 720.318. An analysis of the changes to the subsections impacted by the new legislation is found below:
A. Sub-section 720.303, entitled “Association powers and duties; meetings of board; official records; budgets; financial reporting; association funds; recalls.”, was changed in the following manner:
Clarified that all official records must be maintained for at least 7 years.
Added a requirement to provide copies of the declaration and any rules and regulations to all new owners. That requirement can be met by posting a complete copy of the association’s rules and covenants, or a direct link thereto, on the homepage of the association’s website if such website is accessible to the members of the association and the association sends notice to each member of the association of its intent to utilize the website for this purpose.
Added a requirement that an association that has 100 or more parcels must post certain documents on its website or make available such documents through an application that can be downloaded on a mobile device.
Added a procedure for responding to a subpoena from a law enforcement agency.
Added a requirement that an association that has 1000 or more parcels must prepare audited financial statements regardless of the total annual revenue received by that association.
Added a provision to prohibit use of Association debit cards.
B. Subsection 720.3033, entitled “Officers and Directors”, was changed in the following manner:
Modified the education requirements of Board Members.
Clarified the prohibition against the acceptance of “kickbacks”.
C. Subsection 720.3035, entitled “Architectural control covenants; parcel owner improvements; rights and privileges”, was changed in the following manner:
Added additional limitations on ability of the association or its appointed committee to deny proposed changes to property sought by an owner.
Added a requirement to provide specific details to an owner when an association rejects a proposed change.
Added limitations as to the association’s ability to restrict steps taken by an owner for “hurricane protection”.
D. Subsection 720.3045, entitled “Installation, display and storage of items”, was changed to extend the ability to restrict display of certain items from requiring those items to not be visible from the “parcel’s frontage or an adjacent parcel” to requiring those items to not be visible from “an adjacent commons area, or a community golf course” as well as the “parcel’s frontage or an adjacent parcel”.
E. Subsection 720.305, entitled “Obligations of members; remedies at law or in equity; levy of fines and suspension of use rights”, was changed by a modification of the fine procedures and a limitation as to the ability to fine or suspend an owner’s use rights for certain types of violations.
F. Subsection 720.3065, entitled “Fraudulent voting activities relating to association elections; penalties”, was changed to add additional language describing the nature of criminal conduct associated with fraudulent voting activity.
G. Subsection 720.3075, entitled “Prohibited clauses in association documents”, was changed to add additional prohibited clauses, including clauses relating to restricting “commercial vehicles” from being parked in public view.
H. Subsection 720.3085, entitled “Payment for assessments; lien claims”, was changed to clarify that compound interest cannot be charged on owner’s ledgers.
I. Subsection 720.317, entitled “Electronic voting”, was the subject of a slight change which clarified that an owner could consent “electronically” to the right to subsequently vote “electronically”.
J. Subsection 720.318, previously entitled “Law enforcement vehicles” was changed to read “First responder vehicles” and the text was changed to protect vehicles driven by all first responders rather than only those driven by law enforcement personnel.