Chapter 720 Changes
The Florida legislature just passed SB1196 and Governor Crist just signed the bill into law. Here is additional information on the changes that will occur for Homeowners’ associations. The following is a review of the changes and additions to Chapter 720, which will become effective on July 1, 2010.
Records Access: 720.303(5)
In addition to the association being able to charge for copy fees, they can also now charge “reasonable costs” to be reimbursed for the lost employee time associated with duplicating the records.
Personnel records for the association’s employees will not be subject to inspection by an owner.
Personal data of the association members (SS #, credit card #, emergency contact info, etc.) is not part of the records to be inspected.
Budgets & Reserves: 720.303(6)
The financial report must contain the vote necessary to mandate reserves and be disclosed to the unit owners.
If budget does include reserves that are not mandatory, it must be disclosed that the funds may be used for non-reserve purposes.
Director Compensation: 720.303(12)
Directors, officers and committee members are generally prohibited from being compensated for their service unless:
The payment is reimbursement for out-of-pocket expenses.
The payment is made for the recovery of insurance proceeds.
The compensation is allowed by the governing documents.
The compensation is authorized by membership.
Fines/Suspensions of Use Rights: 720.305
Suspensions are authorized if the member is delinquent for more than 90 days.
Fines of less than $1,000 cannot become a lien.
Suspensions cannot be applied to owner utility services or to access the community or parcel.
Notice to the person fined or suspended is required in writing.
Voting for Directors by Secret Ballot: 720.306(8)
This provision now requires a “Chapter 718” double envelope voting procedure.
Collecting Rent from Tenants: 720.3085(8)
The Association now can demand rent directly from a tenant if owner is delinquent.
These changes are summary in nature and it is suggested that you review all law changes with your association’s attorney for clarification.
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