CAM Terms and Conditions

CAM

COMMUNITY ASSOCIATION MANAGEMENT ("CAM") BY

ELITE CLASS PROPERTY MANAGEMENT & REAL ESTATE COMPANY

2.9.25

KEY DEFINITIONS

BOD: Board of Directors.
CAM: Community Association Manager / Community Association Management Company.
CA: Community Association.
POC: Point of Contact.
CC&Rs: Covenants, Conditions & Restrictions of the Association.
WDO: Wood destroying organisms
Red Bold Underlined 13px Font Is a hyperlink, email, phone number, section, title, header, and/or link to a website/webpage.

FORMAL NOTICES

Formal notices may include but are not limited to:

Annual Meeting Notice – Notification of the annual homeowners' meeting, including date, time, location, agenda, and voting procedures.
Board Meeting Notice – Notice of an upcoming board of directors meeting, including topics for discussion and member participation details.
Special Meeting Notice – Announcement of a special meeting called to address specific issues such as budget approval, rule changes, or legal matters.
Assessment Increase Notice – Formal notification of changes to HOA assessments, including justifications and due dates.
Late Payment & Delinquency Notice – Reminder or demand for overdue assessments, late fees, and potential consequences such as liens or legal action.
Violation Notice – Notification to a homeowner regarding non-compliance with HOA rules, including details of the violation, corrective actions, and deadlines.
Initial Violation Warning Notice – A courtesy notice informing a homeowner of a minor violation and requesting corrective action before further enforcement steps are taken.
Formal Violation Notice (Second Notice) – A follow-up notice stating that the violation remains uncorrected, with a deadline for compliance and possible penalties if unaddressed.
Final Violation Notice (Notice of Hearing/Fine) – A formal warning that a hearing will be scheduled, or fines will be imposed due to failure to correct the violation within the given timeframe.
Architectural Review Violation Notice – Notification of unauthorized exterior modifications or landscaping changes that violate the HOA’s architectural guidelines, with instructions for remediation.
Unapproved Construction or Modification Notice – Warning to a homeowner that unauthorized modifications, additions, or improvements have been made without approval from the HOA.
Nuisance Violation Notice – Notice regarding excessive noise, improper waste disposal, illegal parking, or other activities that disrupt the community.
Parking Violation Notice – Notification of improper parking, such as unauthorized vehicles, commercial vehicle restrictions, or prolonged street parking in restricted areas.
Pet Violation Notice – Notice regarding pet-related violations such as excessive barking, unleashed pets, or failure to clean up after pets.
Short-Term Rental Violation Notice – Warning issued for unauthorized rentals that violate HOA policies or local regulations.
Landscape Maintenance Violation Notice – Notice to a homeowner regarding failure to maintain their lawn, remove weeds, or comply with landscaping requirements.
Trash & Waste Disposal Violation Notice – Notification regarding improper garbage disposal, leaving trash bins in prohibited areas, or failing to follow waste collection guidelines.
Signage Violation Notice – Warning issued for displaying unauthorized signs, such as political or commercial signs, in violation of HOA rules.
Common Area Misuse Violation Notice – Notification regarding misuse, damage, or unauthorized activities in community common areas or amenities.
Hearing Notice for Violation Dispute – Notification of a scheduled hearing where the homeowner may contest a violation, fine, or enforcement action.
Suspension of Rights & Privileges Notice – Formal notice of suspension of community privileges, such as pool access, clubhouse use, or voting rights, due to unresolved violations.
Fines & Penalties Imposition Notice – Formal notice informing a homeowner that fines have been assessed for continued non-compliance with association rules.
Lien Filing Notice for Unpaid Fines – Final warning that a lien will be placed on the property due to unpaid fines or unresolved violations.
Foreclosure Notice for Unresolved Violations – Notification of legal action, including potential foreclosure, due to non-payment of violation-related fines and fees.
Community Maintenance & Repair Notice – Notice regarding scheduled maintenance, repairs, or construction affecting common areas or private properties.
Emergency Repair Notice – Urgent notification of unexpected repairs affecting common areas or individual properties, such as water line breaks, roof leaks, or structural issues.
Individual Unit Repair Notice – Notification to a homeowner regarding required repairs to their property that must be completed to comply with HOA standards.
Common Area Repair Notice – Announcement of upcoming repairs or renovations to shared community amenities, such as clubhouses, pools, sidewalks, or parking lots.
Special Assessment for Repairs Notice – Notification of a special assessment imposed to fund necessary repairs or infrastructure improvements.
Election Notice & Voting Instructions – Information regarding upcoming HOA elections, including nomination deadlines, candidate details, and voting procedures.
Property Access Notice – Advance notice of the HOA’s need to access a homeowner’s property for inspections, maintenance, or emergency repairs.
Insurance Claim & Damage Notice – Information on insurance claims related to common areas, disaster recovery, or property damage assessments.
Community Event Notice – Announcement of HOA-sponsored social events, neighborhood clean-up days, or community-wide initiatives.
Tenant/Lease Compliance Notice – Notice to landlords regarding compliance requirements for tenants, including lease registration and community rules.
Notice of Document Availability – Notification that governing documents, budgets, or financial reports are available for review by members.
Major Capital Improvement Notice – Notification regarding long-term infrastructure projects, such as roofing replacements, repaving, or major upgrades.

48 Hours or 14 Day Notices §720.303(3)

Under Florida Statutes §720.303(3), most general board meetings only require 48 hours' notice, except for specific matters that require 14 days' notice (such as special assessments or governing document amendments).

Examples of Matters That Can Be Noticed with 48 Hours' Notice:

Routine Board of Directors Meetings – Standard meetings that do not involve major financial or policy decisions.
Approval of Previous Meeting Minutes – Reviewing and approving minutes from prior meetings.
General Financial Reports – Routine discussions of financial statements, income, and expenses.
Vendor Contracts (Non-Major) – Discussion or renewal of existing service contracts (e.g., landscaping, pool maintenance, janitorial services).
Operational & Maintenance Decisions – Approving small repairs, routine maintenance, or minor operational matters.
Rule Enforcement Actions – Addressing violations or compliance issues within the community (excluding major policy changes).
General Member Concerns – Discussing homeowner inquiries, complaints, or requests that do not require a vote on special assessments or governing document changes.
Appointment of Committee Members – Filling vacancies or appointing members to advisory or standing committees.
Emergency or Unscheduled Maintenance Needs – Approving urgent but non-major repairs affecting common areas (e.g., irrigation system repair, minor electrical issues).
Planning of HOA Events – Discussing upcoming community events, social gatherings, or volunteer initiatives.

Matters That Require 14 Days' Notice Instead:

Special Assessments
Amendments to Governing Documents (CC&Rs, Bylaws, Rules & Regulations)
Changes to Member Voting Rights or Assessments
Approval of the Annual Budget
Increases in Regular Assessments or Fees
Discussions on Liens or Foreclosures

For general board meetings that do not involve major financial or policy decisions, a 48-hour notice is sufficient as long as the agenda and relevant documents are made available in accordance with statutory requirements.

STRUCTURAL INTEGRITY RESERVE STUDY (SIRS) REQUIREMENTS

Pursuant to Florida law, condominium and cooperative associations are required to conduct a Structural Integrity Reserve Study (SIRS) to ensure adequate funding for the future maintenance and repair of critical structural components. SIRS is required for condominiums and cooperatives that are three stories or taller in height. Applies to residential buildings governed by a condominium or cooperative association. The SIRS must comply with the following requirements:

PURPOSE:

Evaluates the current condition and remaining useful life of critical structural components. Estimates reserve funding needed for future major repairs or replacements. Ensures financial preparedness to maintain structural integrity and prevent deferred maintenance. A SIRS helps ensure that the building is safe and can last a long time. It helps associations plan and budget for repairs. It helps enhance building safety and value

MANDATORY COMPONENTS:

The SIRS must include, at minimum, an assessment of:

Roofing systems
Load-bearing walls and primary structural components
Fireproofing and fire protection systems
Plumbing systems
Electrical systems
Elevators
Windows and exterior doors
Swimming pools and pool decks
Parking garages
Other items that could impact the building’s structural integrity as determined by a licensed engineer or architect

FREQUENCY & DEADLINES:
Initial SIRS Deadline: By December 31, 2024, all applicable associations must complete their first SIRS.
Subsequent Studies: Must be conducted at least every 10 years by a licensed engineer or architect.

RESERVE FUNDING REQUIREMENTS:

Full funding of reserves is required for components included in the SIRS. The reserve funds must be included in the CA’s annual budget. CA cannot waive or reduce reserve funding for structural components identified in the study.

REPORTING & COMPLIANCE:

The SIRS must be adopted by the BOD and incorporated into the association’s annual budget. Failure to comply may result in legal and financial penalties, including potential state enforcement actions. It is recommended that the BOD consult with legal counsel to ensure utmost compliance.

ROLE OF THE CAM:

The CAM shall help the BOD with support with SIRS requirements. Responsibilities may include coordinating SIRS assessments, resources, education, assisting with reserve funding adherence, budgeting, financial reports, meetings, and assisting the BOD in implementing necessary repairs and maintenance.

EDUCATION REQUIREMENTS FOR ASSOCIATION BOARD MEMBERS

REQUIREMENTS FOR CONDOMINIUM ASSOCIATION BOARD MEMBERS

Initial Certification Requirement
- Effective July 1, 2024, all condominium directors elected or appointed on or after this date must complete a four-hour board certification course within 90 days of taking office.
- The certification course must cover the following topics:
  - Milestone Inspections
  - Structural Integrity Reserve Studies (SIRS)
  - Elections and Board Governance
  - Recordkeeping and Transparency
  - Financial Literacy and Budgeting
  - Levying of Fines and Enforcement Procedures
  - Notice and Meeting Requirements
Transitional Compliance for Current Board Members
- Condominium directors elected or appointed before July 1, 2024, must complete the four-hour certification course by June 30, 2025, to remain compliant.
Certification Validity and Renewal
- Certification is valid for seven (7) years and does not require renewal if the director serves continuously during this period.
- If a director serves for more than seven years, they must retake the certification course at the end of the seventh year.
Continuing Education Requirement
- In addition to initial certification, directors must complete a one-hour continuing education course within one year of certification and annually thereafter.
- The continuing education must focus on updates to Florida Statute Chapter 718 and any relevant administrative rule changes affecting condominium governance.

REQUIREMENTS FOR HOMEOWNERS' ASSOCIATION (HOA) BOARD MEMBERS

Initial Certification Requirement:
- Effective July 1, 2024, all HOA directors elected or appointed on or after this date must complete an approved new board member education course within 90 days of taking office.
Transitional Compliance for Current Board Members
- HOA directors elected or appointed before July 1, 2024, must complete the new board member education course within four (4) years, provided they serve continuously during that time.
Certification Validity and Renewal
- Certification is valid for four (4) years and does not require renewal if the director serves without interruption.
- If a director serves for more than four years, they must retake the certification course at the end of the fourth year.
Continuing Education Requirement
- The number of annual continuing education hours required depends on the size of the HOA:
  - HOAs with fewer than 2,500 parcels → Directors must complete at least four (4) hours of continuing education annually.
  - HOAs with 2,500 or more parcels → Directors must complete at least eight (8) hours of continuing education annually.

COMPLIANCE AND RECORDKEEPING
Associations must maintain records of board certifications for at least:

seven years for condominiums, and
five years for HOAs.

Failure to comply with education requirements may result in director suspension until certification is completed. Associations should ensure timely compliance by offering access to approved education providers and maintaining documentation of completed certifications and continuing education hours.

HOMEOWNER RIGHTS AND REGULATORY COMPLIANCE

The CAM and CA shall ensure compliance with Florida law and association regulations while protecting homeowners’ rights. This includes, but is not limited to:

Permit members to install vegetable gardens and clotheslines within legally permitted areas, in accordance with Florida law and association regulations.
Allow members to hire contractors of their choice, provided they comply with state and local licensing requirements and adhere to the association’s architectural and maintenance standards.
Enforce lawful vehicle restrictions in common areas, ensuring compliance with association rules while respecting homeowner rights.
Ensure members have access to association records as required by Florida law, including governing documents, meeting minutes, and financial reports.
Protect homeowners from unfair enforcement practices by ensuring fines, penalties, and rule violations are handled consistently and in accordance with due process.
Ensure compliance with all applicable state and local laws related to homeowner rights, property modifications, and association governance.
Permit homeowners to display the U.S. flag, as well as military and first responder flags, in accordance with Florida Statutes §720.304(2) and §718.113(4), provided the flags are displayed in a respectful manner and meet size and placement guidelines set by law.
Allow reasonable religious displays on private property, in compliance with Florida law and federal fair housing regulations, provided they do not obstruct common areas or violate safety codes.
Permit the installation of security cameras, doorbell cameras, and home surveillance devices within a homeowner’s private property, provided they do not interfere with association common areas or infringe on the privacy rights of other homeowners.
Ensure compliance with Florida’s Solar Rights Law (§163.04, F.S.), which prohibits associations from banning solar panels or other energy-efficient improvements, though reasonable restrictions may apply regarding placement and aesthetics.
Accommodate disability modifications in compliance with the Americans with Disabilities Act (ADA) and Fair Housing Act (FHA), allowing reasonable requests for modifications such as wheelchair ramps, accessibility features, or service animals, even if association rules would otherwise prohibit them.
Permit homeowners to install hurricane shutters, impact-resistant windows, and other storm protection measures, provided they meet association architectural guidelines and comply with state and local building codes.
Allow holiday decorations within a reasonable timeframe, ensuring they do not create safety hazards or violate local ordinances.

MEDICAL MARIJUANA USE

The CA and BOD shall be responsible for:

Acknowledging the legality of medical marijuana in Florida and recognizing that qualified patients are permitted to use medical marijuana under state law.
Ensuring compliance with federal and state laws, understanding that while medical marijuana is legal in Florida, it remains classified as a Schedule I controlled substance under federal law. Association policies must be carefully structured to align with both state allowances and federal restrictions.
Accommodating reasonable requests from residents who present valid documentation as qualified medical marijuana patients, provided that such accommodations do not infringe upon the rights, health, or safety of other residents.
Addressing potential nuisances, such as smoke or odor complaints, by implementing fair and reasonable solutions, including designated usage areas or recommending alternative consumption methods that minimize impact on neighboring units.
Developing clear policies regarding the use of medical marijuana within the community, balancing the rights of qualified patients with the well-being of all residents. These policies should be incorporated into the association’s governing documents and communicated clearly to members.

The CAM shall support the CA and BOD by:

Assisting in the implementation and enforcement of the CA’s policies.
Helping facilitates member communications regarding medical marijuana guidelines.
Helping with member complaints and disputes.
Ensuring that any accommodation requests related to medical marijuana use are documented and processed in accordance with state and federal laws.

ASSOCIATION MEETINGS

Board Of Directors (BOD) Meetings:
1. Quorum Requirement: A quorum must be established in accordance with the governing documents. If unspecified, Florida law requires a majority of the directors to be present, either in person or via an authorized electronic platform (if permitted).
2. Notice Requirements:
  1. Regular board meetings require at least 48 hours’ notice, posted in a conspicuous place within the community.
  2. Special board meetings may require additional notice as specified in the governing documents.
  3. Emergency board meetings may waive the 48-hour notice requirement but must provide reasonable notice under the circumstances.
3. Member Participation: Members may attend board meetings, except for closed sessions related to legal matters, personnel issues, or other confidential matters.
4. Meeting Format: Meetings may be held in person, by teleconference, or by video conferencing, as long as all board members can hear and communicate with each other simultaneously.
5. Minutes and Recordkeeping: Meeting minutes must be recorded, approved, and retained as part of the association’s official records, available to members upon request.
Membership Meetings:
1. Quorum Requirement: The quorum requirement for membership meetings shall be established by the governing documents or, if unspecified, shall comply with Florida law (typically 30% of the total voting interests for HOAs).
2. Notice Requirements:
  1. Annual Membership Meetings require a minimum of 14 days’ notice, which must be mailed, delivered, or electronically transmitted to members.
  2. Special Membership Meetings require notice as specified in the governing documents.
3. Voting and Proxies:
  1. Members may vote in person, by proxy, or via electronic voting, if allowed by the governing documents.
  2. A voting certificate may be required for properties with multiple owners.
Emergency Meetings:
1. Notice Requirements: The 48-hour notice requirement may be waived if immediate action is required, but reasonable notice must be provided under the circumstances.
2. Quorum Requirement: The standard quorum rules apply, unless the governing documents provide alternative provisions.
3. Meeting Format: Meetings may be held via teleconference, video conference, or other electronic means if necessary.
4. Documentation: The nature of the emergency and all decisions made must be documented in the meeting minutes, which shall be retained as part of the official records.
Annual Meetings:
1. Timing: The CA shall hold an annual meeting at a time and place specified in the governing documents.
2. Agenda: The annual meeting agenda shall include:
  1. Reports on the association’s financial status.
  2. Election of board members (if applicable).
  3. Member questions and open discussions.
3. Voting: Elections shall be conducted in compliance with Florida law and the governing documents.
Closed Or Executive Session Meetings:
1. The BOD may hold closed meetings only when discussing privileged matters, including:
  1. Pending or threatened litigation.
  2. Personnel matters.
  3. Legal consultation with the association’s attorney.
2. Closed meetings must be documented in meeting minutes, but specific discussions may remain confidential.

HOMEOWNER ASSOCIATIONS WITH 100+ PARCELS §720.303(4)(b)1

Pursuant to Florida Statutes §720.303(4)(b)1, by January 1, 2025, all homeowners’ associations (HOAs) with 100 or more parcels must maintain an official website or provide access to an application that can be downloaded on a mobile device. The following documents must be posted and made available for member access:

Governing Documents:
- Declaration of Covenants
- Articles of Incorporation
- Bylaws
- Rules and Regulations
Financial and Contractual Records:
- A list of all current executory contracts or documents to which the association is a party to or under which the association or owners have an obligation or responsibility
- A list of bids received within the past year after the bidding process for materials, equipment, or services has closed.
- Annual budget and any proposed budget to be considered at the annual meeting.
- Financial reports and monthly income/expense statements to be considered at a meeting.
- All current insurance policies.
Board Compliance & Conflict of Interest Disclosures:
- Certification for each director as required under §720.3033(1)(a).
- All contracts or transactions involving a director, officer, corporation, firm, or entity in which a director is also a director or officer of and has a financial interest.
- Any contract, meeting, record, document related to conflicts of interest or potential conflicts of interest.
Meeting Notices & Agendas:
- Member Meeting Notices & Agendas Must be posted at least 14 days prior to the meeting on the homepage or a dedicated "Notices" subpage that is conspicuously visible, easily accessible, and linked from the homepage.
- Any documents to be voted on or listed in the agenda must be posted at least 7 days before the meeting.

Board Meeting Notices & Agendas: Must be posted no later than the required notice period under §720.303(3) (either 48 hours or 14 days, depending on the subject). Most general board meetings or emergency meetings only require 48 hours' notice, except for specific matters that require 14 days' notice (such as special assessments or governing document amendments). Example of matters for notices can be found here: https://localpropertymanagementcompany.com/camtc#48-hours-or-14-day-notices-720-303-3

CONDO ASSOCIATIONS WITH 25+ UNITS §718.111(12)(g),

According to Florida Statutes §718.111(12)(g), by January 1, 2026, all condominium associations with 25 or more units are mandated to maintain an official website or provide access to an application that can be downloaded on a mobile device. The following documents must be posted and made available for member access:

The recorded declaration of condominium and each amendment to it.
The recorded bylaws of the association and each amendment to them.
The articles of incorporation of the association, or other documents creating the association, and each amendment thereto.
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.
Summaries of bids for materials, equipment, or services which exceed $500, which must be maintained on the website or application for 1 year.
The annual budget and any proposed budget to be considered at the annual meeting.
The financial report and any proposed financial report to be considered at a meeting.
The certification of each director.
All contracts or transactions between the association and any director, officer, corporation, firm, or association that is not an affiliated homeowners' 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.
The notice and agenda of any meeting and the approved minutes of the meetings.
Any other records required by law to be accessible to members.

These measures are designed to enhance transparency and ensure that association members have convenient access to important governance documents.

For more detailed information, you can refer to the 2024 Florida Statutes, Chapter 718, Section 111.

AUDITED FINANCIAL STATEMENTS REQUIRED FOR ASSOCIATIONS

Associations with 1,000 or More Parcels

Must have an annual audited financial statement prepared by a Certified Public Accountant (CPA), regardless of revenue.

The audit requirement cannot be waived by the members.
The BOD is responsible for ensuring the audit is conducted.

Associations with Fewer than 1,000 Parcels

Must comply with Florida’s tiered financial reporting requirements based on revenue:

$150,000 or less: Report of cash receipts & expenditures (waiver allowed).
$150,000 – $299,999: Compilation by a CPA (waiver allowed).
$300,000 – $499,999: Review by a CPA (waiver allowed).
$500,000 or more: Full CPA audit (waiver allowed unless 1,000+ parcels).

The BOD is responsible for compliance.

QUORUM

A quorum is the minimum number of members required to be present at a meeting for the association to legally conduct business, vote on matters, and make binding decisions. Quorum requirements are established in the association’s governing documents and must comply with Florida law. If a quorum is not met, the meeting cannot proceed, and no official votes or actions may be taken.

EXAMPLES OF QUORUM REQUIREMENTS

BOD Meetings: A quorum for a BOD meeting is typically defined in the governing documents. If no specific rule is set, Florida law generally requires a majority of the directors to be present.
- Example: If an HOA’s bylaws require that 50% of the board members must be present, and the board has 7 directors, a quorum is met when at least 4 directors attend. If only 3 directors are present, there is no quorum, and no official business can be conducted.
Membership Meetings: A quorum for membership meetings (such as annual meetings) is determined by the association’s governing documents or, if unspecified, by Florida law.
- Example: If a condominium association’s bylaws require that 30% of members must be present (in person or by proxy) for an annual meeting, and the association has 100 unit owners, a quorum is met when at least 30 owners (30% of 100) are present. If only 25 members attend, there is no quorum, and the meeting may need to be rescheduled.

QUORUM FOR BOARD OF DIRECTORS MEETINGS

A quorum for a BOD meeting shall be established in accordance with the association’s governing documents.
If the governing documents do not specify quorum requirements, Florida law shall apply, which generally requires a majority of the directors to be present, either in person or via an authorized electronic platform (if permitted).
If a quorum is not met, the meeting may be adjourned and rescheduled with proper notice.
No official business or binding votes may be conducted without a quorum, except for motions to reschedule or adjourn the meeting.

QUORUM FOR MEMBERSHIP MEETINGS

The quorum requirement for membership meetings shall be determined by the association’s governing documents. If no quorum requirement is specified, Florida law shall apply.
If a quorum is not reached at a scheduled members’ meeting:
- The meeting may be adjourned and rescheduled with proper notice.
- The members present may conduct an informational discussion, but no binding votes or official decisions may be made.
- The association may utilize proxies or electronic voting (if allowed by the governing documents) to help meet quorum requirements.

ALTERNATIVE METHODS TO ACHIEVE QUORUM

If permitted by Florida law and the governing documents, quorum may be satisfied through:

Proxies: Members may designate another person to vote on their behalf, following the rules set in the governing documents.
Electronic or Remote Participation: If allowed by the governing documents, members or board members may count toward quorum when participating via an authorized virtual platform.
Voting Certificates: If required by the governing documents, voting certificates designating representatives may be used to establish quorum for meetings involving multiple owners of a unit or property.

FAILURE TO MEET QUORUM REQUIREMENTS

If a quorum is not established within the time period specified in the governing documents:

The meeting shall be rescheduled, and proper notice must be issued to members.
Any time-sensitive or urgent matters may be handled by the BOD through emergency provisions, if permitted by the governing documents and Florida law.
The CA and BOD shall review the governing documents to determine if alternative measures, such as mail-in voting or written consent, can be used to address pending issues.
The CAM shall assist in notifying members of any rescheduled meetings or alternative quorum methods in compliance with the governing documents.

DETAILED ACCOUNTING OF OUTSTANDING BALANCES

The CA shall ensure that any unit owner, authorized representative, or prospective buyer receives a detailed accounting of outstanding balances upon written request in compliance with Florida law. The CAM shall assist the BOD.

Who Can Request This Information?

Homeowners (Unit Owners): Members of the association who want to verify their outstanding balance.
Authorized Representatives: Attorneys, real estate agents, or mortgage lenders representing a homeowner.
Prospective Buyers: Individuals looking to purchase a unit who need to determine unpaid assessments attached to the property.

What Must Be Included in the Detailed Accounting?

Unpaid assessments (regular, special, or emergency assessments).
Late fees or penalties (if applicable).
Interest charges on overdue balances.
Fines for rule violations (e.g., rule infractions).
Legal fees and collection costs (if the account is in collections).
Any payments, credits, or adjustments applied to the account.
Total amount due and payment instructions.

Timeframe for Compliance:
The CA must provide the requested information within fifteen (15) business days from the date of the request. Failure to meet this deadline may result in financial penalties or waivers of certain fees, depending on Florida law and the association’s governing documents.

How Must the Information Be Provided?
The detailed accounting must be delivered in writing, either via:

Physical mail (certified mail is recommended for legal proof).
Email (if permitted by the association’s records policy).
Online portal (if available; if the CA/CAM provides digital access to financial statements).

PROHIBITION OF COMPOUND INTEREST HB 1203

HB 1203 prohibits compound interest on delinquent assessments for HOAs. The bill only allows simple interest to accrue on assessments and installments that are not paid when due. Compound interest is prohibited regardless of the language in the declaration or bylaws.

What is Simple Interest?

Simple interest is interest calculated only on the original amount (principal). It does not grow on previous interest earned.
- Example: Balance is $1,000 at 5% annual simple interest for 3-years.
  - Each year, the interest earned: $1,000 × 5% = $50
  - Total interest after 3 years: $50 × 3-years = $150
  - Final balance: $1,000 + $150 = $1,150
  - Unlike compound interest, simple interest stays the same each year and does not grow on previous interest earned.
Simple interest is acceptable.

What is Compound Interest?

Compound interest is interest calculated on both the initial amount (principal) and the interest already earned. This makes your money grow faster over time.
- Example: A balance of $1,000at 5% annual compound interest (interest compounds yearly).
  - Year 1: $50 interest → New balance: $1,050
  - Year 2: Interest is 5% of $1,050 = $52.50 → New balance: $1,102.50
  - Year 3: Interest is 5% of $1,102.50 = $55.13 → New balance: $1,157.63
  - Each year, interest is earned on interest, making the balance grow faster than simple interest.
Compound interest is prohibited.

LATE PAYMENTS, CHARGEBACKS, RETURNED PAYMENTS, AND OR NSF FEES

The CA and its homeowners are responsible for any chargebacks, returned payments, and/or NSF fees incurred due to failed transactions. Any chargebacks, returned payment, and/or NSF fees shall be billed to the CA monthly. In accordance with Florida Statutes §720.3085, the CA reserves the right to impose fees on returned payments, chargebacks, and late assessments as follows:

Non-Sufficient Funds (NSF) Fees: If a payment made by a homeowner is returned due to insufficient funds (NSF), a closed account, or a chargeback, the homeowner shall be responsible for paying the original amount due plus any applicable NSF fees as outlined in the CA’s governing documents. NSF fees should not exceed the actual costs incurred by the CA due to the failed transaction.
Late Fees: If a homeowner fails to pay an assessment by the due date, the CA may impose a late fee not exceeding the greater of $25 or 5% of the past-due installment, as permitted by §720.3085(3)(a), F.S.
Collection Costs & Simple Interest: Any unpaid assessments, late fees, or NSF-related charges shall accrue simple interest at the rate specified in the governing documents, not exceeding the maximum legal rate allowed under Florida law. Simple interest is calculated only on the principal balance of the delinquent amount, without compounding. The CA may also recover attorney fees, collection costs, and administrative expenses incurred in pursuing unpaid amounts.
Lien and Foreclosure Rights: If an assessment remains unpaid beyond the statutory period, the CA may file a lien against the property and pursue foreclosure, as permitted under Florida law.

The BOD and CAM shall encourage homeowners to ensure timely payments to avoid unnecessary fees, interest, and legal actions.

PROHIBITION OF DEBIT CARD USE FOR COMMUNITY ASSOCIATIONS

Community associations (both condominiums and HOAs) are not permitted to use debit cards linked to association bank accounts. This prohibition was enacted through HB 1021 and HB 1203 to prevent fraud and unauthorized spending. No community association, regardless of size, may use a debit card linked to association bank accounts for expenses.

Legal Basis: HB 1021 and HB 1203 prohibit debit card use due to fraud risks, including:

Lack of multi-step approval. They do not require multiple approvals before transactions are completed.
Immediate access to funds if lost or stolen. If lost or stolen, they can be misused with immediate access to association funds.
Limited oversight and potential for misuse. Lack of oversight makes them susceptible to fraud by board members, CAMs, or employees.

Alternative Payment Methods:

Checks – Requires documentation and board approval.
ACH Transfers (Direct Deposits) – Requires multi-step authorization.
Credit Cards – Allowed only if permitted by governing documents, often with fraud protection.
Wire Transfers – Provides secure, documented payment for large expenses.

Penalties for Non-Compliance: Unauthorized debit card use may be classified as theft or fraud, carrying criminal penalties under Florida law.

HOA MEMBER NOTIFICATION REQUIREMENTS HB 59

Pursuant to House Bill 59, a new provision, Florida Statutes §720.303(13), has been established to enhance transparency and accessibility of governing documents for homeowners' association (HOA) members. By October 1, 2024, all HOAs are required to provide members with a physical or digital copy of the association’s rules and governing documents (§720.303(13)(a)).

The following requirements apply to document distribution:

New members must receive a copy of the rules and covenants upon joining the association (§720.303(13)(b)).
If the governing documents are amended, the HOA must distribute updated copies to all members. The association may establish policies regarding the method and timeframe for distributing revised documents (§720.303(13)(c)).
The requirement to provide governing documents may be satisfied by posting a complete set of rules and covenants—or a direct link to them—on the association’s website, provided that the website is accessible to members. Additionally, the HOA must notify members that the website will serve as the official source for these documents (§720.303(13)(d)).

Notification Methods:

Notices may be sent electronically to members who have previously consented to electronic communications.
Alternatively, notices may be sent via physical mail to the address on file with the association.

CONFLICT OF INTEREST

Ensures transparency in contractual relationships and financial dealings involving association funds. Applies to CAM, BOD, and other firms overseeing the association. The CA must ensure all BOD and the CAM disclose any potential conflicts of interest. The CAM shall comply with all ethical and legal requirements regarding transparency and fiduciary duties.

EXAMPLES OF CONFLICT OF INTEREST:

Conflict of Interest for a Community Association Manager (CAM) Example: A CAM hires a maintenance company owned by their family member to perform work for the association without disclosing the relationship to the Board of Directors (BOD).
- Why Is It a Conflict? The CAM has a personal financial interest in the decision. The BOD and homeowners are not given a fair opportunity to seek competitive bids. The CAM may prioritize personal gain over the best interests of the association.
Conflict of Interest for a Board of Directors (BOD) Member Example: A BOD member owns a roofing company and pushes to award the association’s roofing contract to their own business without competitive bidding.
- Why Is It a Conflict? The BOD member stands to profit from their position. Other vendors may offer better pricing or quality, but the association is not given the opportunity to compare. It violates the fiduciary duty of acting in the best interests of the association.

GENERAL BEST PRACTICES TO AVOID CONFLICTS OF INTEREST

Full disclosure of personal and financial relationships.
Document and record all transactions, meetings, and decisions.
Require competitive bidding for major contracts.
Recusal from voting when a conflict exists.
Adopt and enforce a conflict-of-interest policy for both the CAM and BOD.

HURRICANE PROTECTION SPECIFICATIONS & PREPAREDNESS PLAN

Pursuant to House Bill 293, homeowners' associations are required to adopt hurricane protection specifications for all structures and improvements within their jurisdiction. This requirement applies retroactively, consistent with the insurance provisions set forth in Florida Statutes §718.111(11).

The Board of Directors (BOD), an Architectural Review Committee (ARC), and/or similar committee must establish uniform standards, which may include color, style, and other relevant factors as deemed appropriate by the governing body. All specifications must strictly adhere to applicable Florida Building Code regulations (§720.3035(6)(a)).

Regardless of any provisions within an association’s governing documents, the association may not deny an application for the installation, enhancement, or replacement of hurricane protection measures, provided the proposed improvements conform to the adopted specifications. However, the association retains the authority to require homeowners to maintain consistency with an existing unified building scheme to preserve the external aesthetic of the community (§720.3035(6)(b)).

Approved hurricane protection measures include, but are not limited to:

Roof systems compliant with ASCE 7-22 standards
Permanent fixed storm shutters
Roll-down track storm shutters
Impact-resistant windows and doors
Polycarbonate storm panels
Reinforced garage doors
Erosion control systems
Exterior fixed generators
Fuel storage tanks
Other hurricane protection products designed to safeguard structures and improvements (§720.3035(6)(c))

The CA must ensure compliance with these regulations and should review House Bill 293 in consultation with legal counsel to fully implement state-mandated hurricane protection measures.

Additionally, it is encouraged by the CAM that the CA creates a Hurricane Preparedness Plan for the CA and its members.

CORPORATE TRANSPARENCY ACT COMPLIANCE (FEDERAL LAW)

Certain associations must report beneficial ownership information to FinCEN. The CA and BOD shall be responsible for determining if the association is subject to the Corporate Transparency Act reporting requirements and consulting with association legal counsel to ensure compliance.

Text us:
+1 201.952.4665

Email us:
Broker@LocalPMC.com

CAM