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DBPR Registration
SB 4D
SB 4-D Requires on or before January 1, 2023 that ALL Condominium Associations existing before July 1, 2022 are to provide the Division in writing on a form posted on the Division's website the following information:
- The number of buildings on the condominium property that are three stories or higher in height. (Thi
DBPR Registration
SB 4D
SB 4-D Requires on or before January 1, 2023 that ALL Condominium Associations existing before July 1, 2022 are to provide the Division in writing on a form posted on the Division's website the following information:
- The number of buildings on the condominium property that are three stories or higher in height. (This means if you do not have any buildings that are 3 stories or higher in height, you would write "0" as your reply.
- The total number of units in all such buildings.
- The addresses of all such buildings.
- The counties in which all such buildings are located.
The Division must compile a list of the number of buildings on condominium property that are three stories or higher in height, which is searchable by county, and post the list on the Division’s website. This list must include the following information:
- The name of each Association with buildings that are three stories or higher in height.
- The number of such buildings on each Association’s property.
- The addresses of all such buildings.
- The counties in which all such buildings are located.
An Association must provide an update in writing to the division if there are any changes to the information within 6 months after the change.
For Reference:
https://www.flsenate.gov/Session/Bill/2022D/4D/BillText/er/PDF
SB 154
Requires all Condominium and Cooperative Associations with buildings 3 stories or higher to report the following information to the Division of Florida Condominium, Timeshares and Mobile Homes on or before January 1, 2023.
- Contact Name, Phone Number, and Email Address
- Name of Project
- Project License #
- The number of buildings on the condominium property that are three (3) stories or higher in height.
- The total number of units in all such buildings
- The addresses of all such buildings.
- The counties in which all such buildings are located.
For Reference:
https://www2.myfloridalicense.com/condos-timeshares-mobile-homes/building-report/
Register with The Division
HB 913 requires Condominium and Cooperative Associations to create and maintain an online account with the Division and provide specified information by October 1, 2025. Information must be updated annually, and any changes to previously submitted details must be updated within 30 days.
The Division must provid
Register with The Division
HB 913 requires Condominium and Cooperative Associations to create and maintain an online account with the Division and provide specified information by October 1, 2025. Information must be updated annually, and any changes to previously submitted details must be updated within 30 days.
The Division must provide Associations at least 45 days to submit the information after the account is established. The information Associations are to submit includes:
1. Contact information for the Association that includes:
- Name of the Association.
- The physical address of the Condominium or Cooperative property.
- Mailing address and county of the Association.
- E-mail address and telephone number for the Association.
- Name and Board title for each member of the Association's Board.
- Name and contact information of the Association's Community Association Manager or Community Association Management firm, if applicable.
- The hyperlink or website address of the Association's website, if applicable.
2. Total number of buildings and for each building in the Association:
- Total number of stories, including both habitable and uninhabitable stories.
- Total number of units.
- Age of each building based on the certificate of occupancy.
- Any construction commenced within the common elements within the calendar year.
3. The Association's Assessments, including the:
- Amount of Assessment or Special Assessment by unit type, including Reserves.
- Purpose of the Assessment or Special Assessment.
- Name of the Financial Institution or Institutions with which the Association maintains accounts.
4. A copy of any Structural Integrity Reserve Study and any associated materials requested by the Department within 5 business days after such request, in a manner prescribed by the Department.
Milestone Inspection (MI)
A Milestone Inspection (MI) is a structural inspection of an aging building used to determine if substantial structural deterioration exists.
"Milestone Inspection” means a structural inspection of a building, including an inspection of load-bearing elements and the primary structural members and primary structural
Milestone Inspection (MI)
A Milestone Inspection (MI) is a structural inspection of an aging building used to determine if substantial structural deterioration exists.
"Milestone Inspection” means a structural inspection of a building, including an inspection of load-bearing elements and the primary structural members and primary structural systems as defined in s. 627.706, by a Licensed Architect, Engineer, or by a team of professionals with a Licensed Architect or Licensed Engineer acting as the Registered Design Professional in responsible charge with all work and reports signed and sealed by the appropriate qualified team member.
The Licensed Inspector is authorized to practice in this state for the purposes of attesting to the life safety and adequacy of the structural components of the building and, to the extent reasonably possible, determining the general structural condition of the building as it affects the safety of such building, including a determination of any necessary maintenance, repair, or replacement of any structural component of the building.
Your local enforcement agency is responsible for notifying building’s owner(s) that a MI is required. The local enforcement agency must provide written notice by certified mail of the required inspection to the Condominium or Cooperative Association and any owner of any portion of the building, in accordance with Section 1803 of the Florida Building Code. The Association must then notify unit owners of the required inspection within 14 days after receipt of the notice.
A MI consists of two phases:
- Phase 1 is a visual assessment of the building’s structure that determines if evidence of substantial structural deterioration is present. Once Phase 1 is complete, a report is submitted to the local enforcement agency. If no signs of substantial structural deterioration are found, Phase 2 of the inspection is not required.
- Phase 2 is only performed if substantial structural deterioration was identified during Phase 1. A Phase 2 inspection may involve destructive testing to confirm if the building is structurally sound and safe, and will recommend a program for assessing and repairing the damaged portions of the building.
Who is required to have an MI?
All residential Condominiums and Cooperative buildings (including mixed-ownership buildings) in the state of Florida that are three or more stories in height are required to have a MI when the building reaches a certain age:
- 30 years of age and every 10 years thereafter, or
- 25 years of age and every 10 years th
Who is required to have an MI?
All residential Condominiums and Cooperative buildings (including mixed-ownership buildings) in the state of Florida that are three or more stories in height are required to have a MI when the building reaches a certain age:
- 30 years of age and every 10 years thereafter, or
- 25 years of age and every 10 years thereafter if the local enforcement agency has determined that local circumstances require the initial MI be performed at 25 years instead of 30 years.
The age of a building is determined by the date the certificate of occupancy was issued.
When is the MI Deadline?
All buildings that reached 30 years of age prior to July 1, 2022, are required to have a MI performed by December 31, 2024. If a building has reached or will reach 30 years of age between July 1, 2022, and December 31, 2024, the building’s initial MI must be performed before December 31, 2025.
Who is responsible for the arrangement and costs of a MI?
The Owners of a residential Condominium or Cooperative are required to have the Milestone Inspection performed.
The Condominium or Cooperative Association and any owner of a portion of the building that is not owned by the Condominium or Cooperative Association are responsible for the cost of a Milestone Inspection.
Information in the MI report
A MI report includes:
- A list of the material findings and recommendations.
- A description of how the inspection was performed.
- An identification of any substantial structural deterioration and repair recommendations.
- A determination of whether unsafe or dangerous conditions were identified.
- A recommendation for remed
Information in the MI report
A MI report includes:
- A list of the material findings and recommendations.
- A description of how the inspection was performed.
- An identification of any substantial structural deterioration and repair recommendations.
- A determination of whether unsafe or dangerous conditions were identified.
- A recommendation for remedial or preventive repair of non-substantial structural deterioration.
- An identification of items requiring further inspection.
- A separate summary of findings.
- A signature and seal by the licensed professional who performed the inspection.
Timeline after MI is complete
The Condominium or Cooperative Association will receive a copy of the MI report and is required to distribute a copy of the inspector-prepared summary report to each unit owner within 45 days of receiving the report.
A copy of the summary must also be posted in a conspicuous place, and the full report along wit
Timeline after MI is complete
The Condominium or Cooperative Association will receive a copy of the MI report and is required to distribute a copy of the inspector-prepared summary report to each unit owner within 45 days of receiving the report.
A copy of the summary must also be posted in a conspicuous place, and the full report along with the inspector-prepared summary must be published on the Association’s website if the association is required to have a website.
If repairs need to be made, the building owner has 365 days to complete the repairs and correct the structural deficiencies that are indicated by the Phase 2 Milestone Inspection report. Once the repairs have been made, a professional must reinspect the building and provide an amended report, stating that all required repairs have been completed, and the building is acceptable for continued occupancy.
Steps when MI repairs are needed
When a Milestone Inspection report states that repairs are needed, the Association must follow a structured process to comply with Florida law — particularly SB 4D and SB 154.
1. Receive and Review the Milestone Report
- The licensed engineer or architect will issue a written report identifying structural issu
Steps when MI repairs are needed
When a Milestone Inspection report states that repairs are needed, the Association must follow a structured process to comply with Florida law — particularly SB 4D and SB 154.
1. Receive and Review the Milestone Report
- The licensed engineer or architect will issue a written report identifying structural issues and necessary repairs.
- The association's board must review the report and share it with all unit owners.
- The report must be retained as an official record and posted on the association’s website (if applicable).
2. Submit Report to Authorities
- Submit the completed MI Report to the local building department and the Florida Department of Business and Professional Regulation (DBPR).
- This submission is required within 180 days of being notified that the milestone inspection is due.
3. Begin Planning for Repairs
- The board must consult with the inspecting engineer or another qualified professional to:
- Develop a repair plan.
- Prioritize life safety and structural stability issues first.
- This may also trigger a Structural Integrity Reserve Study (SIRS), which is mandatory under certain conditions.
4. Notify Unit Owners
- Unit owners must be informed of:
- The inspection findings.
- Planned repairs.
- Estimated costs and timelines
- Transparency is key, especially if a special assessment or loan will be used to fund the repairs.
5. Secure Funding
- The association must fund the repairs, which may involve:
- Using reserve funds.
- Borrowing (loan assistance may be required).
- Levying a Special Assessment on unit owners.
6. Hire Licensed Professionals
- The association must hire licensed and insured contractors to carry out the necessary repairs.
- Permits must be pulled where required by the local building department.
7. Complete Repairs
- Repairs should be completed within a reasonable time frame, based on urgency and local building department guidelines.
- Follow-up inspections may be needed to ensure work is up to code.
8. Update Records and Report Completion
- Once repairs are completed, update the Association records.
- Notify the local authority and DBPR if required, showing that the issues have been addressed.
What is a Structural Integrity Reserve Study (SIRS)?
A Reserve Study is a budget planning tool that looks at:
- The parts of a building an Association is required to maintain.
- The status of the Association's existing Reserve Fund
- The amount of funding needed to offset anticipated expenses.
The SIRS is used to ensure individual owners are reserv
What is a Structural Integrity Reserve Study (SIRS)?
A Reserve Study is a budget planning tool that looks at:
- The parts of a building an Association is required to maintain.
- The status of the Association's existing Reserve Fund
- The amount of funding needed to offset anticipated expenses.
The SIRS is used to ensure individual owners are reserving the funds needed for future major repairs and replacement of structural elements on the Association property.
A SIRS includes eight specific structural elements that are critical to the safety of the building:
- Roof
- Structural Systems
- Fireproofing & Fire Protection Systems
- Plumbing
- Electrical Systems
- Waterproofing & Exterior Painting
- Windows & Exterior Doors
- Other elements over $10,000 that have an impact on the structural integrity of the building as determined by the visual portion of the SIRS.
Who is required to have a SIRS?
Residential Condominium and Cooperative Associations are required to complete a SIRS at least every 10 years after the creation for each building three stories or higher.
When is the SIRS deadline?
Associations existing on or before July 1, 2022, that are unit owner controlled, must have a SIRS completed by December 31, 2024.
If an Association is required to complete a Milestone Inspection in accordance with s. 553.899 on or before December 31, 2026, the Association may complete the SIRS study simultaneously
When is the SIRS deadline?
Associations existing on or before July 1, 2022, that are unit owner controlled, must have a SIRS completed by December 31, 2024.
If an Association is required to complete a Milestone Inspection in accordance with s. 553.899 on or before December 31, 2026, the Association may complete the SIRS study simultaneously with the Milestone Inspection.
A SIRS completed in conjunction with a Milestone Inspection must be completed by December 31, 2026.
Who is responsible for the arrangement & costs of a SIRS?
The Owners of a Condominium or Cooperative Unit are required to have the SIRS performed.
The Condominium or Cooperative Association and any Owner of a portion of the building that is not owned by the Condominium or Cooperative Association are responsible for the cost of a SIRS.
Information in the SIRS report
There are two parts to a SIRS Report:
- The Financial Study - The financial portion of the SIRS must be completed by a person qualified to perform such a study.
- The Visual Inspection - The visual inspection portion of the SIRS must be performed or verified by a Licensed Engineer, Architect, or a Certified Reserve
Information in the SIRS report
There are two parts to a SIRS Report:
- The Financial Study - The financial portion of the SIRS must be completed by a person qualified to perform such a study.
- The Visual Inspection - The visual inspection portion of the SIRS must be performed or verified by a Licensed Engineer, Architect, or a Certified Reserve Specialist or Professional Reserve Analyst licensed by the Community Associations Institute or the Association of Professional Reserve Analysts.
Once a SIRS is complete, the Association will:
- Receive a component list that provides the life expectancy of each common element in the building that was visually inspected.
- Receive an evaluation of the current Reserve Fund.
- Receive a recommended Funding Plan.
Timeline after SIRS is completed
As of July 1, 2024, within 45 days of the SIRS being completed, Associations must:
- Provide written notice to unit Owners that the SIRS is complete and available to review and copy.
- Notify DBPR’s Division of Condominiums, Timeshares and Mobile Homes that the SIRS is completed and provide the DBPR with a copy of the SIRS Report.
When does my Association have to start reserving for the items in the SIRS report?
If your budget is adopted on or before December 31, 2024, you may vote to waive or provide less than required SIRS reserves with a majority vote of the total voting interest of the association. You will need to begin funding your SIRS reserves in accordance
When does my Association have to start reserving for the items in the SIRS report?
If your budget is adopted on or before December 31, 2024, you may vote to waive or provide less than required SIRS reserves with a majority vote of the total voting interest of the association. You will need to begin funding your SIRS reserves in accordance with the reserve study January 1, 2026.
If your budget is adopted on or after January 1, 2025, you may not waive your SIRS reserves and need to begin funding your SIRS reserves in accordance with the reserve study.
The law does not require reserves to be fully funded at the completion of the Reserve Study. The amount that needs to be reserved is calculated based on the estimated remaining useful life and estimated replacement cost of the item.
For example: If the cost required to replace the roof in 10 years is $100,000, the Association is not required to have $100,000 immediately reserved for repairs. Instead, the Association must reserve sufficient funds each year to have the required funding available at the time of anticipated repairs. The required reserve studies help Floridians living in a condominium or Cooperative to be aware of the condition of their building and provide a clear guideline for budgeting to ensure repairs can be completed when necessary.
With respect to items for which an estimate of useful life is not readily ascertainable or that have an estimated remaining useful life of greater than 25 years, an association is not required to reserve replacement costs, but an association must reserve the amount of deferred maintenance expense, if any, that is recommended.
How does a SIRS affect Fee Assessments?
To remain in compliance, Condominium and Cooperative Associations must meet the reserve funding schedule outlined in the SIRS. If a Condominium’s or Cooperative's SIRS finds that the Association does not have enough reserve funding to cover the anticipated cost to maintain or replace major structural
How does a SIRS affect Fee Assessments?
To remain in compliance, Condominium and Cooperative Associations must meet the reserve funding schedule outlined in the SIRS. If a Condominium’s or Cooperative's SIRS finds that the Association does not have enough reserve funding to cover the anticipated cost to maintain or replace major structural items, fee assessments may be necessary to meet the funding schedule in the SIRS.
As of June 9, 2023, Condominium and Cooperative Associations that are required to complete a SIRS are required by Florida law to base their budget adopted on or after January 1, 2025, on the findings and recommendations in the Association’s most recent SIRS. Reserves cannot be waived for the structural items identified in the SIRS. If a budget is adopted on or before December 31, 2024, funding of the SIRS may be waived until the following budget year.
SB 913 made multiple changes to Requirements affecting Fee Assessments:
- Increases the monetary threshold for reserve items from $10,000 to $25,000, with annual inflation increases.
- 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.
- Allows all multicondominiums to use the “Alternative Funding Method.”
- 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.
What Reserves can my Condominium or Cooperative Association waive?
For budgets adopted on or after December 31, 2024, a majority of the Association’s Total Voting Interests is required to waive reserves or to use reserves for another purpose. However, Associations that are subject to the Structural Integrity Reserve Study (SIRS) requiremen
What Reserves can my Condominium or Cooperative Association waive?
For budgets adopted on or after December 31, 2024, a majority of the Association’s Total Voting Interests is required to waive reserves or to use reserves for another purpose. However, Associations that are subject to the Structural Integrity Reserve Study (SIRS) requirements may not waive reserves for the SIRS items delineated in ss. 718.112(2)(g) and 719.106(1)(k), F.S., relating to Condominium or Cooperative Associations, respectively, or to use such reserves for other purposes.
Additionally, under certain circumstances, the Division may approve an alternative funding method for multicondominium associations operating at least 25 condominiums or more pursuant to section 718.112(2)(f)(2)(a), Florida Statutes.
SB 913 made multiple changes to Reserve Requirements:
Relating to the maintenance of reserves by Condominium and Cooperative Associations, SB 913:
- 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.
Which Documents must be posted online by associations managing a Condominium with 25 or more Units (not including timeshare Units) by Jan 1, 2026?
Digital copies of the documents below are required to be posted by January 1, 2026:
- The recorded Declaration of Condominium of each Condominium operated by the Association and each Amendment to e
Which Documents must be posted online by associations managing a Condominium with 25 or more Units (not including timeshare Units) by Jan 1, 2026?
Digital copies of the documents below are required to be posted by January 1, 2026:
- The recorded Declaration of Condominium of each Condominium operated by the Association and each Amendment to each Declaration.
- The recorded Bylaws of the Association and each Amendment to the Bylaws.
- The Articles of Incorporation of the Association, or other Documents creating the Association, and each Amendment to the Articles of Incorporation or other Documents. The copy posted pursuant to this sub-subparagraph must be a copy of the Articles of Incorporation filed with the Department of State.
- The Rules of the Association.
- A list of all Executory Contracts or Documents to which the Association is a party or under which the Association or the Unit Owners have an obligation or responsibility and, after bidding for the related materials, equipment, or services has closed, a list of bids received by the Association within the past year. Summaries of bids for materials, equipment, or services which exceed $500 must be maintained on the website or application for 1 year. In lieu of summaries, complete copies of the bids may be posted.
- The Annual Budget required by s. 718.112(2)(f) and any proposed budget to be considered at the Annual Meeting.
- The Financial Report required by subsection (13) and any monthly income or expense statement to be considered at a meeting.
- The Certification of each Director required by s. 718.112(2)(d)4.b.
- All Contracts or transactions between the Association and any Director, Officer, Corporation, Firm, or Association that is not an affiliated Condominium Association or any other entity in which an Association Director is also a Director or Officer and financially interested.
- Any Contract or Document regarding a Conflict of Interest or possible Conflict of Interest as provided in ss. 468.4335, 468.436(2)(b)6., and 718.3027(3).
- The Notice of any Unit Owner Meeting and the Agenda for the Meeting, as required by s. 718.112(2)(d)3., no later than 14 days before the Meeting. The Notice must be posted in plain view on the front page of the website or application, or on a separate subpage of the website or application labeled “Notices” which is conspicuously visible and linked from the front page. The Association must also post on its website or application any document to be considered and voted on by the Owners during the Meeting or any Document listed on the Agenda at least 7 days before the meeting at which the Document or the information within the Document will be considered.
- Notice of any Board Meeting, the Agenda, and any other document required for the Meeting as required by s. 718.112(2)(c), which must be posted no later than the date required for notice under s. 718.112(2)(c).
- The Inspection Reports described in ss. 553.899 and 718.301(4)(p) and any other Inspection Report relating to a structural or life safety inspection of Condominium property.
- The Association’s most recent Structural Integrity Reserve Study, if applicable.
- Copies of all Building Permits issued for ongoing or planned construction.
New legislation
SB 913 requires additional items to be listed on the Association's website:
- Approved minutes of the board over the preceding 12 months on the Association’s website.
- Requires Officers and Directors of Associations to sign an affidavit acknowledging receipt of a completed SIRS and posted on the website.
- 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.
Requirements for Condominium Association Board Members
Condominium directors appointed or elected on or after July 1, 2024, must complete a four-hour certification within 90 days after being elected or appointed that covers the following topics: milestone inspections, structural integrity reserve studies, elections, recordkeeping, financia
Requirements for Condominium Association Board Members
Condominium directors appointed or elected on or after July 1, 2024, must complete a four-hour certification within 90 days after being elected or appointed that covers the following topics: milestone inspections, structural integrity reserve studies, elections, recordkeeping, financial literacy and transparency, levying of fines, and notice and meeting requirements.
Condominium directors appointed or elected prior to July 1, 2024, have until June 30, 2025, to complete the four-hour certification requirement.
The certification is valid for seven years and does not have to be retaken during the seven-year period if the director serves without interruption. If the director serves for more than seven years, the certification must be retaken upon expiration of the seventh year.
In addition to the certification, and within one year thereof and annually thereafter, directors must take a one-hour continuing education course relating to any changes during the past year to chapter 718, F.S. and the related administrative rules.
Mandatory education for Condo Association Board Members ensures that Board Members are well-informed about their responsibilities, legal obligations and Fiduciary Duties.
HB 1021 vastly increased accountability for Condominium Association Board Members and increased DBPR’s ability to address complaints
Key Provisions:
Enhancing Accountability: It imposes new education requirements for Condo Board Members, ensuring they are better equipped to manage Associations ethically and effectively.
Addressing Complaints: HB 1021 allows for criminal penalties for unlawful behavior by Condo Board Members. For instance, accepting kickbacks or intentionally failing to release records can now result in felony charges.
Enforcement Power: HB 1021 grants DBPR expanded authority to enforce condominium laws. It grants more power and resources to investigate complaints and enforce compliance, including criminal penalties for Board Members Breach of Fiduciary Duty and other severe violations such as embezzlement, fraudulent activities, and failure to maintain proper records.
Improving Transparency: The bill mandates that Condos with 25 units or more establish websites to share important documents, a requirement previously applied only to larger Associations. This law requiring Condo Boards to maintain records online, allows residents to monitor Board activities more effectively.
Condominium Association Directors should be aware that pursuant to §781.112, Fla. Stat., a willful and knowing failure to complete the Structural Integrity Reserve Study and/ or the Milestone Inspection when required to do so is considered to be an automatic breach of such officer’s and director’s Fiduciary relationship to the Unit Owners.
LEGAL FINES & PENALTIES FOR BREACH OF FIDUCIARY DUTY:
1. Civil Penalties – The DBPR can impose administrative fines up to $5,000 per proven violation.
Applies to willful violations of:
- Florida Statutes
- DBPR rules
- Condominium governing documents
- Examples: Failing to maintain financial records, denying owner access to records, or willfully violating voting procedures.
2. Personal Civil Liability
Board members can be personally sued by unit owners or the Association for:
- Breach of fiduciary duty
- Financial mismanagement
- Self-dealing or conflicts of interest
- May result in court-ordered damages, restitution, or being forced to repay misused funds.
- Important: D&O (Directors & Officers) insurance may not cover intentional misconduct.
3. Removal from Office
Board members can be:
- Recalled by unit owner vote
- Removed by court order (in legal proceedings)
- Misconduct or refusal to follow laws/governing documents often justifies removal.
4. Criminal Penalties (For Fraud or Theft)
- If the breach involves criminal acts (e.g., embezzlement, forgery, kickbacks):
- Charges may include fraud, theft, or racketeering.
- Punishable by fines, probation, or jail time.
- These are prosecuted under Florida criminal law, separate from civil or DBPR penalties.
5. Loss of Insurance Coverage
D&O insurance typically protects board members from liability—but it won’t cover:
- Intentional wrongdoing
- Acts outside the scope of duty
- A proven breach may leave board members financially responsible.
6. DBPR Investigations and Orders
Owners can file complaints with the DBPR.
If misconduct is found, the DBPR can:
- Issue cease and desist orders
- Impose fines and corrective actions
- Refer the case to civil or criminal court
How to Avoid Liability:
- Stay current on Florida Statutes Chapter 718.
- Complete board certification or education within 90 days of election (per §718.112).
- Disclose and avoid conflicts of interest.
- Maintain accurate financial and operational records.
- Act in good faith and consult legal counsel when unsure.
Link to Condominium Governance Form:
https://www2.myfloridalicense.com/lsc/documents/CondominiumGovernanceForm.pdf
Link to Meeting Notice Requirements:
https://www2.myfloridalicense.com/lsc/documents/CondominiumMeetingNoticeRequirements.pdf
Link to Election Checklist:
https://www2.myfloridalicense.com/lsc/documents/ElectionChecklist.pdf
Requirements for Cooperative Association Board Members
Florida law mandates education requirements for Cooperative Board Members. These requirements are outlined in Florida Statutes Chapter 719, which governs Cooperatives.
Certification Requirement:
Within 90 days of being elected or appointed, a co-op Board Member must either:
- Submit a Writt
Requirements for Cooperative Association Board Members
Florida law mandates education requirements for Cooperative Board Members. These requirements are outlined in Florida Statutes Chapter 719, which governs Cooperatives.
Certification Requirement:
Within 90 days of being elected or appointed, a co-op Board Member must either:
- Submit a Written Certification: Affirming that they have read the Association’s governing documents— including the bylaws, articles of incorporation, proprietary lease, and current written policies — and that they will uphold these documents and discharge their fiduciary responsibilities to the association’s members.
- Complete an Approved Educational Program: Successfully complete a Board Member education curriculum administered by a provider approved by the DBPR. This course must be completed within one year before or 90 days after the date of election or appointment. The certification remains valid as long as the board member serves without interruption.
Failure to comply with this requirement results in suspension from the Board until the Board member fulfills one of the two options. The Association's Secretary is responsible for retaining the Certification Documents for at least five years or for the duration of the Board Member's uninterrupted tenure, whichever is longer.
Continuing Education: Florida statutes do not mandate ongoing continuing education for Co-Op Board Members beyond the initial certification. However, staying informed about changes in laws and best practices is advisable.
HB 1021 vastly increased accountability for Cooperative Association Board Members and increased DBPR’s ability to address complaints
Cooperative Board Members who breach their Fiduciary Duty can face serious legal and financial consequences, depending on the severity of the violation. These responsibilities are established under Florida Statutes Chapter 719, and breaches may involve negligence, self-dealing, misappropriation of funds, or willful disregard for the law or the governing documents of the Association.
KEY FINES AND PENALTIES:
1. Civil Penalties & Fines
The DBPR can investigate violations and impose Fines of up to $5,000 per violation.
- These fines apply to willful violations of cooperative laws or the Association's governing documents.
- The DBPR may also order restitution, administrative costs, or corrective actions.
- Example: If a Board Member knowingly ignores Mandatory Inspection or Reserve Requirements, or mismanages association funds, the DBPR can impose penalties.
2. Personal Liability Lawsuits
Shareholders or other Board Members may sue for Breach of Fiduciary Duty if harm was caused to the Association or its Members:
- Monetary damages may be awarded to the association.
- Board members may be held personally liable, especially in cases of:
- Fraud or self-dealing
- Gross negligence
- Willful misconduct
3. Removal from the Board
Members may be recalled or removed by a vote of the shareholders for breach of duty. The DBPR or a court may also disqualify a member from serving in severe cases.
4. Criminal Penalties
(in Extreme Cases) If the breach involves criminal activity, such as:
- Theft
- Embezzlement
- Forgery
- Board members may face:
- Felony or misdemeanor charges
- Jail time
- Criminal fines
5. Loss of D&O Insurance Coverage
Directors & Officers (D&O) liability insurance typically covers board member actions—unless the breach involves:
- Intentional illegal acts
- Fraud
- Conflicts of interest
A breach may void coverage and expose the board member to personal financial liability.
6. Civil Penalties for Record Violations
If a Board Member willfully refuses to provide records or falsifies documents they may face civil fines. Associations must comply with records access laws; obstruction can lead to DBPR actions or lawsuits.
How to Minimize Risk:
- Take a board certification course.
- Document decisions carefully and act transparently.
- Avoid conflicts of interest or disclose them fully.
- Consult legal counsel when in doubt.
- Follow the association’s bylaws and Florida Statutes.
Link to Cooperative
Shareholders Rights and Responsibilities:
https://www2.myfloridalicense.com/lsc/documents/CooperativeUORREnglish.pdf
Link to Cooperative Meeting Notice Requirements:
https://www2.myfloridalicense.com/lsc/documents/CooperativeMeetingNoticeRequirements.pdf
Link to Co-Op Election Checklist:
https://www2.myfloridalicense.com/lsc/documents/COOP_ElectionChecklist.pdf
Link to Co-Op Election Flowchart:
https://www2.myfloridalicense.com/lsc/documents/COOP_ElectionFlowchart.pdf