When a condominium association unreasonably denies approval of a lease or sale, the association can be subjected to a claim for damages and board members might even be personally liable, notwithstanding substantial protection for condominium board members found in Floridas Condominium Act and Not-For-Profit Corporations Act. 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. This article provides a basic overview of the limitations affecting associations with regard to the ability to approve or disapprove individuals seeking to purchase or lease within the community. 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. Senate Bill 630 went into effect on July 1, 2021. If the Association does have tenant approval power, whatever the reason for rejecting the tenant, the Association must be prepared to explain. community association leasing restrictions, Miami Herald Real Estate Column by Christyne Santisteban: Growing Condo Association Budgets Require Deft Touch by Directors, Property Managers, Community Associations Institutes Condo Safety Initiatives Recognized with Prestigious Public Affairs Council Award, Herald Column by Gary Mars: National Media Focuses on Impact of Floridas New Condo Safety Law on Association Budgets. This means a person is no longer ineligible to be a candidate because they are delinquent on fines, fees, or any other monetary obligation other than assessments. Highly experienced community association counselors can quickly ascertain if any proposed changes require amendments to the governing documents or whether they may be enacted by a simple board vote. 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 . Addressing any flaws in the Associations tenant application process now may help to prevent or reduce litigation down the road. This new law also addresses a growing concern among landlords and condo boards, wherein tenants have been wrongfully passing off their pets as Emotional Support Animals by obtaining illegitimate ESA letters and certificates online. Below is a summary of the changes to the condominium law made pursuant to Senate Bill 56, Senate Bill 602, Senate Bill 630, and Senate Bill 1966, that all managers, Board members, and condominium residents must become familiar with before the changes become effective on July 1, 2021. Your Florida Condominium Association's Collections Policy and The unit owner is responsible for the cost for the supply and storage of the natural gas fuel station. However, the percentage of rental units may not exceed the FHA owner-occupancy requirements. This requires a legal opinion and is very fact specific based on the actual governing documents in your case. 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 rule was held beyond the boards authority. Florida condo board letter warned of 'significantly worse' damage Condominium associations only have the authority to impose this additional security deposit requirement on a tenant if the authority is so given in the Declaration. And while the circumstances may be different, there are ways for a condominium association to evict--or rather eject--an owner. Other grounds that might be argued to be reasonable in connection with the disapproval of an applicant seeking to reside in a community may include the following: (1) the applicant has been convicted by a court of a felony involving violence to persons or property, or a felony demonstrating dishonesty or moral turpitude, and has not had their civil rights restored; (2) the application for approval, on its face, or the conduct of the applicant, indicates an intent to act in a manner inconsistent with the associations governing documents; (3) the applicant has a history of disruptive behavior or disregard for the rights and property of others as evidenced by his conduct in other residences, social organizations or associations; and (4) the applicant has failed to provide the information required to process the application in a timely manner, or has materially misrepresented any fact or information provided in the application or screening process. Insurance Subrogation Section 627.714(4), F.S., (SB 630, Page 5). . He concentrates his practice areas on business litigation, condominium and community association law, construction law, and real estate litigation. Most agree that the financial records for a tenant are almost irrelevant since it is the unit owner who is responsible for paying the association. 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. Florida Condo Association Board Meetings: Unit Owner Rights and 14. Notice of Intent to Foreclose Section 718.116(6)(b), F.S., (SB 56, Page 9). A few greedy condos, mostly in the Miami area, charged five and even ten times that amount. The board adopted a rule requiring the background checks, but we cant actually find anything about this in the Declaration itself. What to do if HOA screening process takes longer than promised. 819 (D. Nev. 1994). A sworn affidavit by a Board member, officer, or agent of the association, or a licensed manager, attesting to the mailing will establish a rebuttable presumption that the association complied with these notice and delivery requirements for the notice of late assessments. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. The new section (h) added to Section 720.306 of the Florida Statutes will also clarify that a rental prohibition or regulation that does not apply to a current title holder (because that owner did not consent to the amendment) also will not apply to a subsequent title holder following certain ownership changes. In particular, the rental prohibition or regulation will not apply to an heir who acquires the title as a result of the prior owners death or where title is transferred from the prior owner to an entity affiliated with a prior owner. HOA docs basically state that I can't rent rooms (only the entire house), lease forms must be approved by HOA, my lease must require tenants to follow HOA docs, my lease must give HOA power to terminate lease for failure to observe HOA docs, and that written permission by HOA is required to lease lots (which approval shall not be unreasonably . Landlords, property managers, Association managers, and Association board members need to be aware of recent changes to the law taking effect in Florida July 1, 2016 governing rental applications for active duty military servicemembers. / SB 630 Page 12), 3. 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. Phone: (239) 334-2195 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. 2. Can an HOA or Condo Association Deny a Buyer in Florida? History of nuisance in a previous community or in the subject community. T he tenant application process to a condominium association can be long, arduous, and sometimes, expensive. No owner or agent shall execute a lease with any proposed 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. Changing rental rules were addressed by Floridas Supreme Court in the 2002 case of Woodside Village Condominium Association v. Jahren. of Housing and Community Affairs v. Inclusive Communities Project, Inc., 135 S.Ct. The law has been amended to provide that written notice of a meeting other than an annual meeting must include an agenda; be mailed, hand delivered, or electronically transmitted to each unit owner; and be posted in a conspicuous place on the condominium property or association property within the timeframe specified in the Bylaws. According to the suit, the associations new leasing restriction, which it apparently adopted via a simple vote of the board the directors, was never approved by all the unit-owner association members via a formal vote. Keep it Clean. For transfer purposes, spouses, a parent or parents, and any dependent children are considered one applicant. Your message has failed. 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. Some declarations and bylaws for Florida communities provide associations with a right of first refusal, enabling them to accept the same terms and conditions for any good-faith lease offer that a unit-owner receives and is willing to accept. The buyer has just completed due diligence and determined that the building needs a new roof and demands a $300,000 credit against the purchase price. Maintenance, Repair and Replacement Responsibility Within Your Copyright 2023, Pavese Law Firm. New Emotional Support Animal Law Florida 2020 - CondoBlackBook Are we required to make these available? What happens when an association wrongfully refuses to approve a transfer? The law applies to all condos, apartments, and rental homes. He concentrates his practice in the areas of complex commercial and business litigation, real estate leasing and construction, contract negotiations, real estate development disputes, condominium and community association law and bankruptcy litigation. For guidance as to how to prepare a proposed amendment to your HOA declaration that complies with the new HOA rental restrictions or for guidance on additional changes resulting from Florida SB 630, you can reach out to our association law team. 2. (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.. 17. property owned by the association that is not part of the condominium). Can a Condo Association Only Pass a Special - The Mold Lawyer The owner has requested to review minutes of meetings between the board and its attorney to discuss this litigation. racist or sexually-oriented language. If the Bylaws do not specify a timeframe for written notice of a meeting other than an annual meeting, notice must be provided at least 14 continuous days before the meeting. Many associations make a credit report part of the approval process, and one local association went so far as to require tax returns be submitted. A homeowners association cannot evict a homeowner the same way that a landlord can evict a tenant. 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. If the Declaration does not authorize the board to approve or deny based on criminal history, then you must analyze whether the rule is valid. 7. each comment to let us know of abusive posts. The bill modifies certain provisions in the Florida Statutes that impact condominium associations and homeowners associations. Chapter 83 Section 683 - 2016 Florida Statutes - The Florida Senate Don't Want Your Association to Be the Next Rental Community? Photo courtesy of Oleg Ivanov Florida community associations typically have the right under their governing documents to regulate and approve leases and tenants. New Florida Condo Law: Bad Condo Boards Face New Criminal Charges 1. Anyone wishing to rent a condominium must complete the Association's "Background Consent Form" and submit same to the Association for completion of a background check, at the owner's or prospective tenant's expense. 4. 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 . The investment group argued the amendment was a violation of their property rights. The. NOTE: Our Client Portal is Currently Undergoing Maintenance. In Florida, there must be some authority for a Board of Directors to create or promulgate rules and regulations regarding use or occupancy of the property. Phone: 855-331-5100 | Fax: 1-866-462-1501. Some governing documents give the Board of Directors plenary power to adopt, modify or otherwise change use restrictions. The Woodside Covenants - The Florida Bar Can a condo association deny a lease renewal even though the - Avvo The association eventually settled the case by paying the former president $550,000 and agreeing to purchase her condominium unit. Additionally, the federal Fair Housing Act1 (more commonly referred to as the FHA) and Floridas Fair Housing Act2 each provide numerous protections from discrimination by housing providers, including condominium associations. The installation, repair, or maintenance of an electric vehicle charging station or a natural gas fuel station under this subsection of the statute does not constitute a material alteration or substantial addition to the common elements or association property. 5 of the Most Common Misperceptions of Community Associations