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LAW CHANGES FOR ASSOCIATIONS
June 1, 2008
Governor Crist has signed into law the following changes to
the Condominium (Chapter 718) law and the Homeowners’
Association (Chapter 720) law, effective October 1, 2008.
We suggest that your Association attorney provide you with
guidance on how these changes will impact your operations
in the future.
Chapter 718 Changes
(Effective October 1, 2008) - The following is a summary of
the changes to Chapter 718 – Condominiums:
1. Board members will now be liable for monetary damages
if their breach of duty results in an improper personal
benefit.
2. Anyone who defaces or destroys accounting records
required by law can be fined up to $5,000.
3. Records requested by an owner can be provided by
e-mail or via the Internet.
4. The Board must place an item on the agenda, within
60 days upon receipt, if at least 20 percent of voting
interests request something by petition.
5. Co-owners of a unit can't serve on the Board at the
same time in associations of more than 10 units.
6. Anyone convicted in another state of a crime that
would be a felony in Florida can't serve on the Board
unless civil rights have been restored for at least five
years.
7. Owners who owe back maintenance or assessment can't
run for a Board seat; incumbents more than 90 days
delinquent are deemed to have abandoned their job.
8. Directors charged with stealing or embezzling
association money must be removed from office but must be
reinstated if cleared.
9. Boards can't use association money to file lawsuits
against owners who speak out about and against association
issues.
10. The state must provide sellers with a form for
prospective buyers that warns of their duties as a new
owner.
11. Regardless of the condominium documents,
associations must have adequate hazard insurance for full
insurable value or replacement cost.
Chapter 720 Changes
(Effective October 1, 2008) - The following is a summary of
the changes to Chapter 720 – Homeowners’ Associations
1. Directors, officers and committee members can't
receive a salary or benefit financially from service to the
association, other than reimbursement for expenses or
anything benefiting all owners.
2. New directors must certify in writing within 30 days
of taking office that they have read the association's
documents and rules.
3. Sellers must warn prospective buyers they are liable
for all unpaid assessments owed the association.
Overall, these changes call for a Director to be more
responsible, more liable and more involved in the
operations of their Association. Owners will now have
easier access to records and a reasonable assurance that
they are being represented in a proper manner by their
elected Board of Directors.
For the vast majority of Board members who are involved
with their associations for the proper reasons, these law
changes were unnecessary, and in the future may have a
negative impact for attracting new directors to Boards.
Overall, it remains to be determined whether these laws
will help most associations in the State of Florida.
Copyright 2007© Associated Property Management of the Palm Beaches, Inc.
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