The State of Florida is currently trying to figure out the daunting prospect of what it may mean to ask residents to evacuate for their safety during a storm after asking them to stay at home for the coronavirus. Hurricane Season officially kicked off on June 1st, and in the middle of a pandemic, the most difficult decision to ask residents to evacuate coastal cities becomes complicated by fears of contagion. Temporarily moving in with a relative might expose older family members to the coronavirus. Friends might be wary of letting in evacuees from outside their quarantine bubble. People who might otherwise book a flight out of town worry about getting infected on a plane. And the more than 1.5 million Floridians who are out of work or may still be trying to play catch-up from not having an income for a few months might be unable to afford gas

In this time of growing financial crises, associations are increasingly considering loans/lines of credit in order to have sufficient cashflow in the event of budget shortfalls caused by increasing delinquencies or in order to pay for projects that cannot be funded through the operating budget alone but cannot be postponed. In considering loan/line of credit terms as well as structuring repayment options for owners, associations must be aware of documentary limitations on borrowing and owner assessments as well as legal limitations on borrowing and owner assessments. Loan/Line of Credit Terms Associations must be aware of typical loan terms that can run afoul of common provisions in association documents if not handled properly. Such typical terms include the pledging of reserves, real property, personal property, and insurance payments. In many instances, the inclusion of such terms requires membership approval rather than board approval alone by statute. For instance, the pledging of

At the time of our last newsletter in February, pre-pandemic, the Florida Legislature was working on several bills that would significantly impact community associations on a wide range of issues. However, as the 2020 legislative session closed amid the emerging coronavirus, most of the bills geared specifically toward community associations failed to receive approval, including House Bill 623, which we addressed in our previous post. Nevertheless, there are three bills of interest that did pass, which will affect community associations and owners alike. Below is a summary of each: Senate Bill 476 – Law Enforcement Vehicles Senate Bill 476 has the rare distinction in our modern political climate as being approved unanimously by both the Florida House and Senate. SB 476 creates three new sections of Florida Statutes; 718.129, 719.131, and 720.318, which include similar language to apply to condominiums, cooperatives, and homeowner associations. Each new section provides that associations

In light of the ongoing coronavirus pandemic and the quickly approaching hurricane season, which starts June 1, many Florida condominium and homeowner associations are facing critical and unique issues regarding the operation and governance of their communities. Both the Condominium Act (Chapter 718, Florida Statutes) and the Homeowners’ Association Act (Chapter 720, Florida Statutes) contain certain emergency powers. All board members, officers, property managers and residents alike should make sure that they understand their rights and obligations in emergency situations. Below are some of the more common questions that have, and will continue to, arise during this time. What are the emergency powers of a community association? Chapters 718 and 720 contain fairly broad “emergency powers” which may be exercised by an association’s board of directors without the approval of its owners. By way of example, those statutory powers include: Conducting meetings with notice given as practicable, such as through

A homeowner association and a condominium association have a duty to maintain their common property. That duty is generally provided for in Florida Statutes and the express duties are usually set forth in the Declaration of Covenants and Restrictions. For homeowners’ associations, the duty is set forth in Fla. Stat. 720.305(1) (“Each member and the member’s tenants, guests, and invitees, and each association, are governed by, and must comply with, this chapter, the governing documents of the community, and the rules of the association…”) For condominium associations the duty is set forth in Fla. Stat. 718.303(1) (“Each unit owner, each tenant and other invitee, and each association is governed by, and must comply with the provisions of, this chapter, the declaration, the documents creating the association and the association bylaws which shall be deemed expressly incorporated into any lease of a unit.”); see also, Fla. Stat. 718.113(1) (“Maintenance of the