HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 615 Community Association Assessment Notices
SPONSOR(S): Regulatory Reform Subcommittee, Rodriguez
TIED BILLS: IDEN./SIM. BILLS: CS/SB 56
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 16 Y, 0 N, As CS Brackett Anstead
2) Civil Justice & Property Rights Subcommittee 16 Y, 0 N Mawn Jones
3) Commerce Committee 19 Y, 0 N Brackett Hamon
SUMMARY ANALYSIS
A condominium is a form of ownership of real property comprised of units which may be owned by one or more
persons along with an undivided right of access to common elements. A cooperative is real property owned by
the cooperative association, with individual units leased to the residents who own shares in the cooperative
association. A homeowners’ association (“HOA”) is an association that is authorized to impose assessments,
responsible for the operation of a community in which voting membership is made up of unit or parcel owners
and membership is a mandatory condition of unit or parcel ownership. Condominium associations, cooperative
associations, and HOAs are collectively referred to as “associations.”
The bill relates to an association’s collection of assessments and notices to owners relating to such
assessments, it requires:
Associations that send account statements or invoices to owners to send them by first-class mail or by
email.
Associations to deliver written notice to every owner at least 30 days before changing their method of
delivering account statements.
Owners to affirmatively acknowledge that they understand the association has changed its method of
delivering account statements before a community association may change its method of delivery.
Associations to maintain the owners’ affirmative acknowledgments as an official record.
The bill prohibits associations from collecting attorney fees related to delinquent assessments without first
delivering a written notice of the delinquent assessments to the unit or parcel owner.
An association must deliver the written notice at least 30 days before the association takes further
action against the owner’s unit or parcel.
The written notice must specify the amount owed and provide the unit or parcel owner an opportunity to
pay the delinquent assessments without paying attorney fees.
There is a rebuttable presumption that an association mailed a notice of delinquent assessment if a
board member, officer, agent of the association, or a licensed community association manager provides
a sworn affidavit attesting to such mailing.
The bill also aligns condominium and cooperative law to HOA law by increasing the period of time a
condominium or cooperative unit owner has to pay a delinquent assessment after receiving an association's
notice of intent to record a lien or foreclose on a lien from 30 days to 45 days.
The bill does not have a fiscal impact on state and local governments.
The bill provides an effective date of July 1, 2021.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 4/6/2021
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
The Florida Division of Condominiums, Timeshares and Mobile Homes (Division), within the
Department of Business and Professional Regulation (DBPR), provides consumer protection for Florida
residents living in regulated communities through education, complaint resolution, mediation and
arbitration, and developer disclosure. The Division has regulatory authority over the following business
entities and individuals:
Condominium associations;
Cooperative associations;
Florida mobile home parks and related associations;
Vacation units and timeshares;
Yacht and ship brokers and related business entities; and
Homeowners' associations (limited to arbitration of election and recall disputes).
Condominiums
A condominium is a form of ownership of real property created pursuant to ch. 718, F.S., comprised of
units which may be owned by one or more persons along with an undivided right of access to common
elements.1 A condominium is created by recording a declaration of condominium in the public records
of the county where the condominium is located.2 A declaration governs the relationships among
condominium unit owners and the condominium association. All unit owners are members of the
condominium association, an entity responsible for the operation and maintenance of the common
elements owned by the unit owners. The condominium association is overseen by an elected board of
directors, commonly referred to as a “board of administration.” The board enacts bylaws which govern
the administration of the association.
Cooperatives
A cooperative is a form of property ownership created pursuant to ch. 719, F.S. The real property is
owned by the cooperative association, and individual units are leased to the residents who own shares
in the cooperative association.3 The lease payment amount is the pro-rata share of the operational
expenses of the cooperative. Cooperatives operate similarly to condominiums and the laws regulating
cooperatives are in many instances nearly identical to those regulating condominiums.
Homeowners’ Associations
A homeowners’ association (HOA) is an association of residential property owners in which voting
membership is made up of parcel owners, in which membership is a mandatory condition of parcel
ownership, and which is authorized to impose assessments that, if unpaid, may become a lien on the
parcel.4 Only HOAs whose covenants and restrictions include mandatory assessments are regulated by
ch. 720, F.S. Like a condominium or cooperative, an HOA is administered by an elected board of
directors. The powers and duties of an HOA includes the powers and duties provided in ch. 720, F.S.,
and in the governing documents of the association, which include the recorded covenants and
restrictions, together with the bylaws, articles of incorporation, and duly adopted amendments to those
documents. No state agency has direct oversight of HOAs. However, Florida law provides procedures
1
S. 718.103(11), F.S.
2
S. 718.104(2), F.S.
3
Ss. 719.103(2) and (26), F.S.
4
S. 720.301(9), F.S.
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and minimum requirements for HOA operation and provides for a mandatory binding arbitration
program, administered by the Division, only for certain election disputes.
Official Records
Condominiums, cooperatives, and HOAs (associations) are required to maintain official records for at
least 7 years. The official records must include:5
A copy of the articles of incorporation, declaration, bylaws, and rules of the association;
Meeting minutes;
A roster of all owners or members, including the electronic mailing addresses and fax numbers
of unit owners consenting to receive notice by electronic transmission;
A copy of any contracts to which the association is a party or under which the association or the
unit owners or members have an obligation;
Accounting records for the association, which includes:
o Accurate, itemized, and detailed records of all receipts and expenditures.
o A current account and a periodic statement of the account for each unit or parcel
designating the name of the owner, the due date and amount of each assessment, the
amount paid on the account, and the balance due.
o All audits, reviews, accounting statements, and financial reports of the association or
condominium.
o All contracts for work to be performed. Bids for work to be performed are also
considered official records and must be maintained by the association.
All contracts for work to be performed, including bids for work, materials, and equipment.
Cooperatives and HOAs are only required to maintain bids for one year;
A copy of the plans, permits, warranties, and other items provided by the developer; and
All other written records which are related to the operation of the association.
An association must maintain its official records within the state of Florida and make them available for
inspection within 45 miles of the association or within the county where the association is located.6
Unit owners may request to inspect and make copies of an association’s official records. An association
must make the records available for inspection within 10 business days of receiving a written request.
Failure to provide an owner or renter the requested records within 10 business days of receiving a
request creates a rebuttable presumption that the association willfully failed to provide the records. An
owner who is denied access to the records is entitled to damages and costs.7
An association may adopt reasonable rules regarding the frequency, time, location, notice, and manner
of record inspections. An association also has the option to make the official records available
electronically via the Internet or in an electronic format viewable on a computer screen.8 Additionally,
condominium associations with 150 or more units must maintain a website with digital copies of certain
official records such as meeting notices, a copy of the articles of incorporation, declaration, bylaws, and
rules of the association.9
However, the following records are not available for inspection by owners:10
Records protected by the lawyer-client privilege;
Information obtained by an association in connection with the transfer of a unit or parcel;
Personnel records of association or management company employees;
Unit owner medical records;
5
Ss. 718.111(12)(a), 719.104(2), and 720.303(4)-(5), F.S.
6
Ss. 718.111(12)(b)-(c), 719.104(2)(b)-(c), and 720.303(5), F.S.
7
Id.
8
Id.
9
Ss. 718.111(12)(b), and (g), F.S.
10
Ss. 718.111(12)(c), 719.104(2)(c), and 720.303(5), F.S.
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Personnel identifying information such as social security numbers, driver license numbers, and
credit card numbers;
Electronic security measures that are used to safeguard data; and
The software and operating system used by the association which allow the manipulation of
data.
Statements of the Account
A statement of the account11 is an account statement that details the outstanding amount that a unit or
parcel owner owes to the association. Associations must maintain a current account and a periodic12
statement of the account for each unit or parcel, which designates the name of the owner, the due date
and amount of each assessment, the amount paid on the account, and the balance due.13
Statements of the account for each unit or parcel owner are part of the official records, which are
available for inspection.14 Associations may also deliver statements of the account or invoices for
assessment to the unit or parcel owners. However, current law does not specify how an association
must deliver statements of the account to owners or invoices for assessment, e.g., by regular mail or
email. Current law also does not provide a process to notify unit or parcel owners, if an association
alters its method of delivering statements of the account.
Assessments
Current law gives associations the ability to levy and collect assessments from unit or parcel owners.
This allows the association to carry out its responsibility for the association’s management, operation,
and maintenance.15 In addition to levying assessments, associations also have the power to establish
the time when each assessment is due, including when an assessment becomes delinquent.16
The most common assessments are those required to fund an association’s common expenses
identified in an association’s annual budget. The amount to fund the common expenses and the
assessments required to meet that amount are determined when an association’s budget is adopted.17
In contrast, a special assessment is an assessment levied against unit or parcel owners for unexpected
expenses that are over and above those anticipated by the annual budget.18
When the amount of an assessment has been determined, the association must establish a payment
schedule for the owners in accordance with the association’s bylaws. For condominium and
cooperative associations, payments must be made in advance and they must be paid at least quarterly.
The payments must be sufficient to provide the funds necessary to pay all the anticipated operating
expenses and all unpaid expenses previously incurred.19
A unit or parcel owner may not avoid paying assessments by waiving the use of common elements or
services in the association. No unit or parcel owner may be relieved from liability for all or part of an
assessment.20 Boards must keep account of the assessments levied against every unit or parcel owner
11
A statement of the account is different from an estoppel certificate. An estoppel certificate issued by an association certifies the total
debt owed to the association for unpaid financial obligations by a parcel owner or unit owner as of a specified date. An association is
legally bound by the amount stated in the estoppel certificate. A unit or parcel purchaser or a mortgage holder who relies on an
estoppel certificate is protected from any assessments or other monies owed to the association that are not in the certificate. Ss.
718.116(8), 719.108(6), and 720.30851, F.S.
12
Condominium and cooperative associations must maintain a monthly, bimonthly, or quarterly statement of the account. Ss.
718.111(12)(a), and 719.104(2), F.S.
13
Ss. 718.111(12)(a), 719.104(2), and 720.303(4)-(5), F.S.
14
Id.
15
S. 718.111(4), 719.104(5), 720.301(1), and 720.308(1), F.S.
16
See generally, ch. 718, 719, and 720, F.S.
17
Ss. 718.103(1), 718.112(2)(f), 719.103(9), and 719.106(1)(j), and 720.303(6)(a), F.S.
18
Ss. 718.103(24), 718.116(10), 719.103(23), 719.108(9), and 720.303(6), F.S.
19
Ss. 718.112(2)(g), 719.106(1)(g), and 720.30851(1), F.S.
20
Ss. 718.111(4), and 718.116(1)(a), 719.108(1), and 720.3085(2)(a), F.S.
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and the assessments paid by every owner. These records are part of the association’s official
records.21
Liability for Assessments
A unit or parcel owner is liable for all assessments coming due while he or she owns the unit or parcel.
The unit or parcel serves as security for the payment of all assessments owed by an owner.22
If a unit or parcel is sold, the buyer becomes jointly and severally liable with the seller for all unpaid
assessments due prior to the time of the sale. The buyer may attempt to recover the unpaid
assessments from the seller, but the association may look to both the seller and the buyer for the
unpaid assessments.23
Assessments that are not paid on time bear interest at a rate provided in the declaration, which may not
be higher than the highest rate allowed by law, or at a rate of 18 percent per year if no rate is provided.
Interest begins accruing the date a payment becomes delinquent. Additionally, an association may levy
a late fee for any delinquent payment. The amount of the late fee may not exceed $25 or five percent of
the payment, whichever is greater. Associations are entitled to recover any attorney fees and costs
incurred in collecting delinquent payments.24
If an association receives a payment for a delinquent assessment, the payment must first be applied to
any accrued interest, then to any late fee, then to any attorney’s fees or costs, and finally to the
principle balance of the assessment.25
Currently, associations are not required to send a delinquent assessment notice prior to charging late
fees, interest, or attorney fees. According to news reports, this can result in unit or parcel owners being
charged attorney fees that exceed the delinquent assessment.26 According to industry blogs, allowing
associations to collect attorney fees ensures associations are not left holding the bill when they take
legal action.27 However, industry blogs also state that sending a delinquent ass