The bill -- if enacted -- would make important changes to FS 720 -- Mandatory Homeowners' Associations

v   CAM (FS 468.436): Adding Disciplinary proceedings for violations of Florida statutes

v Records:

Ø     Records have to be made available for inspection within 45 miles or within the county.

Ø   The association must permit a member to take photographic images of such records with a

          camera or other electronic device at no charge.

Ø        Disallows charges of more than $20.00 per hour for personnel fees and charges at an hourly

          rate for vendor or employee time to cover administrative costs to the vendor or association.

v   Reserve Accounts:

        Ø   Requires the budget to designate the components for which the reserve accounts may be used.

v Reporting Requirement:

        Ø  Each homeowners' association has to report to the Division by November 22, 2013, detailed

                 information about the association.

v Officers and Directors:

Ø    HOA board members are now required to certify in writing to the secretary of the association that he or she has read the association’s declaration of covenants, articles of incorporation, bylaws, and current written rules and policies or or provide the secretary with an educational certificate stating that the board member has satisfactorily completed an educational curriculum administered by a division-approved education provider.

Ø    Requirements for contracts with companies where a director has a financial interest.

Ø    Disallows kickbacks to officers, directors, or managers.

Ø    Removes a director or officer charged by information or indictment with a felony theft or embezzlement offense involving the association’s funds or property from office.

Ø    Requires every association to maintain insurance or a fidelity bond for all persons who control or

      disburse funds of the association.

v   v HOA Elections:

                  Ø Changes to nominations of candidates

v       Transition of Association Control on HOAs if:

Ø    the developer abandons or deserts the responsibility to maintain and complete the advertised amenities or infrastructure.

Ø    the developer files a petition seeking protection in bankruptcy (chapter 7); 

Ø    the developer loses title to the property through a foreclosure action or the transfer of a deed in lieu of foreclosure;

Ø     a receiver for the developer is appointed by a circuit court and is not discharged within 30 days after such appointment;

   v       Election of Board Members in developer-controlled HOAs:

                   Ø    Members other than the developer can elect one board member after 25% of all parcels are 

                         conveyed to members.

   v       Prohibited Clauses in documents:

                   Ø Prohibiting a developer from unilaterally making amendments to the governing documents which

                           bind members of the association etc.

   v       Clarification "Previous Owner":

                    Ø For the purposes of this subsection, the term “previous owner” shall not include an association

                             that acquires title to a delinquent property through foreclosure or by deed in lieu of foreclosure.