Condominium associations throughout Florida will be significantly impacted by House Bill 1021, which Gov. DeSantis recently signed into law. The bill is effective July 1, 2024, although some portions of the law go into effect at a later date. The following are a few highlights of the new law.

Transparency and Recordkeeping

The new regulations governing condominium associations introduce several significant changes aimed at enhancing transparency, accountability, and accessibility of records and operations. These reforms mandate meticulous recordkeeping and add new official records that a condominium must maintain – including invoices, transaction receipts, deposit slips, and building permits – all while ensuring organized maintenance for efficient unit owner inspection. A crucial aspect of the updated requirements is the obligation for associations to make a good-faith effort to recover lost or destroyed records, underscoring the importance of maintaining accurate and retrievable documentation. Additionally, strict guidelines restrict the sharing of email addresses and fax numbers, emphasizing their use solely for association business and not for third parties.

Notices and Meeting Requirements

Starting from January 1, 2026, associations managing condos with 25 or more units must post and maintain certain notices and records digitally on its website or mobile app, enhancing member access and transparency. This comes in addition to residential condominiums with more than 10 units now being required to have a meet at least once a quarter and have at least four meetings a year. Board meeting agendas must now include a portion of the meeting where members may ask questions of the Board regarding various matters, including the status of ongoing construction and repair projects, expenditures and revenues of the current year, as well as other matters concerning the condominium.

Education Requirements

Condominium directors will be required to complete at least four hours of education to increase their knowledge of elections, financial literacy, recordkeeping, enforcement, notice requirements, and compliance with milestone inspections and structural integrity reserve studies. The education certificate for attending this class will be valid for seven years from issuance. All directors elected to their position prior to July 1, 2024, will need to complete this requirement by June 30, 2025. Thereafter directors will need one additional hour of continuing education each year.

Meeting Agendas and Financial Reporting

Board meetings must occur quarterly in larger condominiums, with agendas stipulating discussions on financial status, construction projects, and other pertinent issues. Financial reporting rules prevent associations from reducing required financial statement types consecutively, ensuring financial transparency.

Further reforms cover electronic voting permissions, hurricane protection responsibilities, and conflict of interest disclosures for community association managers and related parties. New penalties are introduced for non-compliance, including criminal charges for obstructing record access and misusing association funds.

In essence, these legislative changes aim to modernize governance practices, protect unit owners’ rights, and bolster operational integrity within condominium associations across Florida. See a full list of numerous changes and additions imposed by HB 1021 here.