Community Associations

The bill relates to the governance of condominium and cooperative associations and the practice of community association management.

Community Association Managers

The bill requires community association managers (CAMs) and CAM firms to return all community association records in their possession within 20 business days of termination of a services agreement or a written request whichever occurs first, with license suspension and civil penalties for noncompliance, except that the time frames applicable to timeshare plans apply to the records of a timeshare plan.

The bill provides conflict of interest disclosure requirements and a process for associations to follow when approving contracts with CAMs and CAM firms, or a relative, that may present a conflict of interest. The requirements are similar to the conflicts of interest provisions for condominium associations and their officers and directors, including:

• Providing that, if the association receives and considers a bid to provide a good or service that exceeds $2,500, other than community association management services, from a CAM or CAM firm, including directors, officers, persons with a financial interest in a CAM firm, or a relative of such persons, the association must also solicit multiple bids from other third-party providers of such good or service.
• Requiring that the proposed activity that may be a conflict of interest must be listed on, and all contracts and transactional documents related to the proposed activity must be attached to, the board’s meeting agenda and entered into the meeting minutes.
• Requiring the board must approve the contracts with a potential conflict of interest, and all management contracts, by an affirmative vote of two-thirds of all directors present.

Milestone Inspections

Currently, single-family, two-family, and three-family dwellings are exempt from the milestone inspection requirements. The bill exempts four-family dwellings with three or fewer habitable stories above ground.

Official Records – Condominiums

Regarding access to the official records of a condominium association, the bill:

• Provides that, if records are lost or destroyed, there is a good faith obligation to obtain and recover the records as is reasonably possible.
• Allows e-mail addresses and facsimile numbers to be accessible to unit owners if consent to receive notice by electronic transmission has been provided.
• Prohibits the sale or sharing of such personal information to third parties.
• Effective January 1, 2026, decreases from 150 units to 25 units the threshold requirement for an association to maintain specified records available on the association’s website or on a mobile device.
• Requires official records to be provided to the unit owner at no charge if the Division of Condominium, Timeshares, and Mobile Homes (division) within the Department of Business and Professional Regulation (DBPR) subpoenas records an association has failed to timely provide in response to a unit owner’s written request.
• Requires associations to maintain additional financial records (e.g., invoices and other documentation that substantiates any receipt or expenditure).
• Requires associations to respond to a records request with a checklist of all records provided.
• Authorizes the division to request access to an association’s website to investigate complaints related to unit owner access to official records on such website.

Criminal Violations – Condominiums

The bill provides the following criminal penalties related to condominium associations, and the official records of the association:

• Second degree misdemeanor for any director or member of the board or association to knowingly, willfully, and repeatedly violate (two or more violations within a 12-month period) any specified requirements relating to inspection and copying of official records of an association;
• First degree misdemeanor for knowingly and intentionally defacing or destroying required accounting records, or failing to create or maintain required accounting records, with the intent of causing harm to the association or one or more of its members;
• Third degree felony to willfully and knowingly refuse to release or produce association records, with the intent to avoid or escape detection, arrest, trial, or punishment for the commission of a crime, or to assist another person with such avoidance or escape;
• Third degree felony for an officer, director, or manager of a condominium association to knowingly solicit, offer to accept, or accept a kickback; and
• First degree misdemeanor for engaging in specified fraudulent voting activity, and knowingly aiding, abetting, or advising a person in the commission of a fraudulent voting activity related to association elections.

The bill provides that officers and directors charged with a criminal violation under ch. 718, F.S., are deemed removed from office and a vacancy declared.

Budgets, Financial Reporting, and Reserves – Condominiums and Cooperatives

Regarding condominium association budgets, financial reporting, and reserves, the bill:

• Prohibits associations from reducing the required type of financial statement (compiled, reviewed, or audited financial statements) for consecutive years.
• Requires associations to provide unit owners with a notice that the structural integrity reserve study (SIRS) is available for inspection and copying within 45 days of completion of the study. The notice may be provided electronically.
• Allows associations to temporarily pause the funding of reserves or a reduce reserve funding if the entire condominium building is uninhabitable due to a natural emergency, as determined by the local enforcement agency, upon majority approval of the members.

Condominium and cooperative associations must notify the division within 45 days after the SIRS is completed. By January 1, 2025, the division must create a database of associations that have completed the SIRS. After December 31, 2024, the division must include in its annual report a list of all associations that have completed the SIRS.

Meetings of Condominium Associations

The bill requires:

• Associations of 10 or more units to meet quarterly and four times each year the agenda must allow members to ask questions concerning the status of construction or repair projects, revenues and expenditures, and other condominium issues; and
• The notice for meetings on assessments must include the cost and purpose of assessments and a copy of any proposed contract.

Director Education – Condominiums

The bill provides education requirements for the officers and directors of condominium associations to require:

• Newly elected or appointed directors to submit both the written certification that they have read the association’s governing documents, will work to uphold the documents to the best of their ability and faithfully discharge their duties, and submit a certificate of completion of an approved condominium education course;
• Four hours of training which includes instruction on milestone inspections, SIRS, elections, recordkeeping, financial literacy and transparency, levying of fines, and meeting requirements;
• Directors to annually complete at least one hour of continuing education about recent changes to the condominium laws and rules during the past year; and
• Association directors, excluding directors for a timeshare condominium, to certify, on a form provided by the division, that all directors have completed the required written certification and educational certificate requirements.

Voting in Condominium and Cooperative Associations

Regarding voting in condominium and cooperative associations, the bill:

• Requires associations to notify a condominium unit owner or member that his or her voting rights may be suspended due to nonpayment of a fee or other monetary obligation at least 90 days before an election.
• Allows cooperative and condominium owners to consent to electronic voting in elections by using an electronic means of consent.
• Provides that if the cooperative and condominium board authorizes online voting, the board must honor a unit owner's request to vote electronically at all subsequent elections, unless the unit owner opts out.

Hurricane Protections – Condominiums

The bill revises the requirements for the installation of hurricane protection in a condominium building, including:

• Creating a uniform definition for “hurricane protection;”
• Requiring condominium declarations to delineate the responsibilities of unit owners and associations for the costs of maintenance, repair, and replacement of hurricane protections, exterior doors, windows, and glass apertures;
• Providing a uniform procedure for approval of hurricane protection; and
• Providing that unit owners are not responsible for the cost of removal and reinstallation of hurricane protection if the removal is necessary to repair condominium property.

SLAPP and Defamation Suits

The bill revises the prohibitions against “strategic lawsuits against public participation” or “SLAPP suits,” which occur when association members are sued by individuals, business entities, or governmental entities for matters arising out of a unit owner's appearance and presentation before a governmental entity on matters related to the condominium association.

The bill includes condominium associations in the SLAPP suit prohibition, and protects unit owners who report complaints to government agencies or law enforcement, or make public statements critical of the operation or management of an association by prohibiting associations from:

• Retaliating against unit owners, by increasing assessments, threatening to bring an action for possession or other civil action; and
• Spending association funds in support of defamation, libel, or tortious interference actions against a unit owner.

Condominium Officers and Directors

The bill provides that the attendance of an officer or director at a meeting of the board is sufficient to constitute a quorum for the meeting and for any vote taken in his or her absence when the director is required to leave the room during the discussion and the taking of a vote on a contract in which the director, or his relative, has an interest.

Division of Condominium, Timeshares, and Mobile Homes

The bill expands the division’s post-turnover jurisdiction to include:

• Procedures and records related to financial issues, including annual financial reporting, assessments for common expenses, fines, and commingling funds;
• Elections, including election and voting requirements, and recall of board members;
• The maintenance of and unit owner access to association records;
• The procedural aspects of meetings, such as unit owner meetings, quorums, voting requirements, proxies, board of administration meetings, and budget meetings;
• Disclosure of conflicts of interest;
• Removal of a board director or officer under ch. 718, F.S.;
• The procedural completion of structural integrity reserve studies; and
• Any written inquiries by unit owners to the association.

In addition, the bill:

• Requires that the division must refer to local law enforcement authorities any person it believes has engaged any criminal activity.
• Provides that the division and the office of the condominium ombudsman may attend and observe any meeting of the board or any unit owner meeting, for the purpose of performing the duties of the division or the office of the ombudsman.

The division must submit findings by January 1, 2025, to the Governor, the President of the Senate, and the Speaker of the House of Representatives, of its review and recommendations of the website or application requirements for official records.

Condominium Ombudsman

The bill provides for the appointment of the Condominium Ombudsman by the DBPR secretary instead of the Governor, and deletes the requirement that the ombudsman must be an attorney.

Limitations on Actions by Condominium and Cooperative Associations

The bill provides that the statute of limitations and statute of repose for certain actions available to a condominium association or a cooperative association, will not begin to run until the unit owners have elected a majority of the members of the board of administration.

Pre-Sale Disclosures and Requirements

The bill revises the form in which the prospective purchaser of a condominium unit acknowledges receipt of specified documents to include a copy of the most recent annual financial statement and annual budget of the condominium association.

Effective October 1, 2024, the bill also:

• Includes the annual financial statement and annual budget of the condominium association among the documents a nondeveloper seller of a unit must give to a prospective purchaser of a unit.
• Allows developers of nonresidential condominiums the option of delivering to the escrow agent a surety bond or an irrevocable letter of credit with specified conditions, and
• Revises escrow requirements for developers.

Condominiums Within a Portion of a Building or Within a Multiple Parcel Building

The bill revises the definition for the term “condominium property” to mean “the lands, leaseholds, improvements, any personal property, and all easements and rights appurtenant thereto, regardless of whether contiguous, which are subjected to condominium ownership.”

Effective October 1, 2024, the bill provides disclosure requirements for the creation of condominiums within a portion of a building or within a multiple parcel building. The association of a condominium created within a portion of a building or within a multiple parcel building has the right to inspect and copy the books and records upon which the costs for maintaining and operating the shared facilities are based and to receive an annual budget with respect to such costs.

Florida Building Commission – Water Intrusion Study

The bill also requires the Florida Building Commission to submit a report by December 1, 2024, to the Governor, the President of the Senate, the Speaker of the House of Representatives, and the chairs of the legislative appropriations committees and appropriate substantive committees with jurisdiction over ch. 718, F.S., of its review of the standards to prevent water intrusion through the tracks of sliding glass doors.

Appropriation

For Fiscal Year 2024-2025, the bill appropriates $6,122,390 in recurring and $1,293,879 in nonrecurring funds from the General Revenue Fund to the Department of Business and Professional Regulation, and 65 full-time equivalent positions with an associated salary rate, for the purpose of implementing the provisions of this bill.

For Reference:

https://www.flsenate.gov/Committees/BillSummaries/2024/html/3512

https://www.flsenate.gov/Session/Bill/2024/1021/BillText/er/PDF

The bill relates to the governance of condominium and cooperative associations and the practice of community association management.

Community Association Managers

Regarding community association managers (CAMs) and CAM firms, the bill:

• Revises the conflict-of-interest disclosure requirements for CAMs and CAM firms, including exempting conflicts of interest that are disclosed in the management contract from current law requirements;
• Prohibits persons who have had their CAM license revoked from having an indirect or direct ownership interest in a CAM firm, or being an employee, partner, officer, director, or trustee of a CAM firm for 10 years and may not reapply for a license for 10 years; 
• Requires CAMs to maintain and update an online account with the Department of Business and Professional Regulation (department) specifying any services he or she is providing for a condominium, cooperative, or homeowners’ association; and 
• Requires the Division of Condominiums, Timeshares, and Mobile Homes (division) to give written notice to the CAM firm and to the community association when a CAM’s license is suspended or revoked.

Milestone Inspections

Regarding milestone inspections of the structural integrity of condominium and cooperative buildings, the bill:

• Revises the requirements for milestone inspections to apply to condominium and cooperative buildings that are three “habitable” stories or more in height instead of three or more stories under current law;
• Requires local enforcement agencies report to the department, by October 1, 2025, specified information regarding the inspections, including the number of buildings inspected, and a list of buildings that have been deemed unsafe or uninhabitable;
• Requires the Office of Program Policy and Government Accountability to compile milestone inspection data and to submit a report to the Legislature; and
• Requires the boards of county commissioners to adopt an ordinance requiring associations and any other owners that are subject to milestone inspection requirements to commence repairs within 365 days after a phase two inspection is received.

Conflicts of Interest – Milestone and Structural Integrity Reserve Studies

The bill requires design professionals, e.g., architects and engineers, and licensed contractors who bid on structural integrity reserve studies (SIRS) and milestone inspections, to disclose in writing if they intend to bid on maintenance, repair, or replacement work related to the SIRS. A person who conducts or performs a SIRS or milestone inspection or provides recommended services may not have a direct or indirect interest in the firm conducting the study or be related to someone with such an interest unless disclosed to the association in writing. Failure to disclose makes the contract voidable and may result in professional discipline.

Insurance

The bill requires every condominium association to provide adequate property insurance, and:

• That the amount of adequate insurance coverage for full insurable value, replacement cost, or similar coverage may be based on the replacement cost of the property to be insured which must be determined at least once every three years.
• Clarifies the association’s obligation to provide adequate insurance coverage for at least three or more community associations may be satisfied by obtaining and maintaining insurance coverage sufficient to cover an amount equal to the probable maximum loss for the communities for a 250-year windstorm event.

Annual Financial Statements

The bill revises the annual financial statement requirements for condominiums by:

• Increasing from 120 days to 180 days, the date by which the financial report must be completed after the end of the fiscal year;
• Allowing the association, as an alternative to delivering the annual financial statement, to provide a notice that the financial report will be mailed, hand delivered, or provided electronically via the Internet as requested by the unit owner; 
• Requiring that an officer or director of the association sign an affidavit evidencing compliance with the requirements for delivery of the annual financial statement; and
• Requiring the approval of a majority of all of the voting interests to reduce the type of financial reporting.

Official Records

The bill requires condominium associations to keep as official records all: 

• Bank statements and ledgers as official records;
• Recordings of meetings held by video conference;
• Affidavits required by ch. 718, F.S., including on the association’s website; and
• Approved minutes of the board over the preceding 12 months on the association’s website. 

Associations must update the association’s website within 30 days of any change.

Condominium Association Meetings

The bill allows condominium associations to conduct meetings by video conferencing, including board meetings, budget meetings, and unit member meetings, and:

• Allows board members who appear by video conference to vote, but their presence may not count towards a quorum; 
• Requires meetings conducted by video conference to be recorded and kept as official records;
• Requires that the notice for a video conference meeting include a hyperlink and the address for the physical location of the meeting; 
• Requires meetings to be held within 15 miles of the condominium property or within the same county; and
• Requires the division to adopt rules for the conduct of meetings by video conference. 

Annual Budget Requirements

Relating to the budget requirements for condominium associations, the bill:

• Requires associations to simultaneously propose a substitute budget that excludes any discretionary spending if the proposed budget exceeds 115 percent of the assessments of the preceding year;
• Requires that the substitute budget be presented to the unit owners for approval before a budget can be adopted; and
• Revises the expenses that associations can exclude when determining whether assessments exceed 115 percent of the assessments of the preceding year by:
  • Removing “assessments for the betterment of the community;” and 
  • Limiting the exclusion of anticipated expenses to expenses related to the SIRS inspection.

Reserves 

Relating to the maintenance of reserves by condominium and cooperative associations, the bill:

• Allows all multicondominiums to use the “alternative funding method;”
• Increases the monetary threshold for reserve items from $10,000 to $25,000, with annual inflation increases;
• Provides for investment of reserve funds in certificates of deposit or deposits in banks and credit unions without a vote of the unit owners;
• Allows a unit-owner-controlled association that is required to have a SIRS to fund reserves by a special assessment, a line of credit, or loan, with the approval of a majority of the voting interests of the association;
• Allows condominium boards to pause reserve funding without unit owner approval when the condominium building is declared uninhabitable by the local building official;
• Allows unit-owner-controlled associations, for a budget adopted on or before December 31, 2028, that have completed the milestone inspection in the previous two years to temporarily pause or reduce reserve contributions for no more than 2 consecutive annual budgets, upon a vote of a majority of the total voting interests, in order to fund needed repairs recommended by the milestone inspection. If an association pauses or reduces reserve funding, it must perform a SIRS before continuing reserve contribution in order to determine the association’s reserve funding needs and to recommend a reserve funding plan; and
• Allows for funding of SIRS reserves by the pooling accounting method and allows boards to change the accounting method for reserves to a pooling accounting method or a straight-line accounting method without a vote of the members.

Structural Integrity Reserve Studies

Relating to condominium and cooperative associations, the bill: 

• Revises the requirements for SIRS to apply the requirement to buildings that are three “habitable” stories or more in height;
• Extends the deadline by which associations must complete a required SIRS from December 31, 2024, to December 31, 2025;
• Requires that the SIRS, include a reserve “baseline” funding plan that ensures the reserve cash balance stays above zero;
• Requires that the SIRS must differentiate between mandatory reserve items and other reserve items;
• Allows associations that have completed the required milestone inspection to delay the SIRS for the two consecutive budget years following a milestone inspection in order to prioritize funding for repairs and maintenance required the milestone inspection;
• Exempts four-family dwellings with three or fewer habitable stories above ground from the SIRS requirements;
• Requires officers and directors of associations to sign an affidavit acknowledging receipt of a completed SIRS; and
• Requires the division to adopt by rule the form for the SIRS in coordination with the Florida Building Commission.

Electronic Voting

The bill revises electronic voting requirements for condominiums, including requiring the board to adopt a resolution allowing electronic voting if at least 25 percent of the voting interests petition the board to adopt a resolution for electronic voting.

Presale Disclosure

The bill extends the 3-day recission period for condominium sales by nondeveloper unit owners to 7 days. 

Condos Within a Portion of a Building or Within a Multiple Parcel Building

The bill revises the provision in section 31 of Chapter 2024-244, Laws of Florida (CS/CS/CS/HB 1021), to provide that provisions related to condominiums within a portion of a building or within a multiple parcel do not apply retroactively and only apply to condominiums for which declarations were initially recorded on or after October 1, 2025.

The bill also provides that a condominium association created within a portion of a building may inspect and copy the books and records of the owner of the non-condominium portion of the building and that the condominium association must receive a financial report with respect to such costs.

Jurisdiction of the Division of Condominiums, Timeshares, and Mobile Homes

The bill expands the condominium jurisdiction of the division to include:

• Completion of milestone inspections;
• Requirements to maintain insurance and fidelity bonding for persons who disperse funds;
• Board member education requirements; and 
• Reporting requirements for SIRS.

Reporting Requirement for Condominiums and Cooperatives

The bill requires condominium and cooperative associations to create an online account with the division and provide specified information by October 1, 2025, and only once per year thereafter, except that contact information must be updated within 30 days of a change. The division must provide associations at least 45 days to submit the information after the account is established. The information associations may be required to submit includes:

• Contact information for the association, its members of the board, and its CAM; and 
• The number of units, age of buildings, and assessments, including the purpose for the assessments.

Law Enforcement

Redefines the term “official investigation” to include official investigations by the division relating to the criminal prohibitions against tampering with, harassing, or retaliating against a witness, victim, or informant. 

Additional Condominium Provisions

The bill also:

• Expands the emergency powers of condominium and cooperative associations to require the evacuation of the property in the event of any evacuation order, instead of a mandatory evacuation order;
• Revises requirements related to maintenance and hurricane protection; and
• Revises requirements for nonresidential condominiums, including to the unit, appurtenances, or share of the common expenses.

For Reference:

https://www.flsenate.gov/Committees/BillSummaries/2025/html/3700

https://www.flsenate.gov/Session/Bill/2025/913

Here are some common exclusions found in D&O policies for community associations in Florida:

• Intentional misconduct or criminal acts: Excludes claims from fraudulent or dishonest actions by board members.
• Bodily injury or property damage: These are typically covered by other insurance policies like general liability.
• Insured vs. insured claims: Often excludes lawsuits between board members.
• Contractual liability: Claims from breaches of contract are frequently excluded.
• Prior & Pending Litigation: Excludes claims from lawsuits or legal actions initiated before the policy's start date.
• Errors and omissions related to professional services: Applies to services from professionals like accountants or property managers.