House Bill 1021, passed in 2024, changed Florida’s condominium association laws. These changes aim to make community associations more transparent, accountable and safe. These updates matter for effective management and compliance as a condo owner or group member.
Enhanced requirements for community association managers
House Bill 1021 imposes stricter regulations for community association managers (CAMs) and management firms. These rules include:
- Conflict of interest disclosures: CAMs and management firms must disclose any conflicts of interest. If a CAM or their relative has a financial interest in a contract, the association must ask for multiple bids from other providers.
- Record transfer deadlines: CAMs must transfer all community association records within 20 business days of termination or a written request. Breaking this rule can lead to license suspension and civil penalties.
These steps ensure CAMs work openly and put the association’s needs first.
Milestone inspections for older buildings
To keep buildings safe, the bill requires key inspections for certain buildings:
- Inspection requirements: Buildings over 30 years old and over three stories high need a structural check every ten years. Licensed engineers or architects must conduct these inspections.
- Exemptions: Single-family, two-family, three-family and now four-family homes with three or fewer living stories don’t need these checks.
These checks help find and fix possible building problems to keep people safe.
Financial transparency and reporting
House Bill 1021 makes condo associations (CAs) share more financial details:
- Detailed financial reports: CAs must give unit owners clear financial reports, including information on reserve funds and planned spending. A certified public accountant (CPA) must check these reports yearly.
- Reserve funds for repairs: CAs must save money for structural repairs and maintenance. Studies done every ten years will show how much to save.
These rules make sure CAs handle their finances openly and responsibly.
Qualifications and Accountability of Board Members
The bill also adds strict rules for board members:
- Qualifications: Board members must meet set standards to show they can run the association well.
- Accountability: New rules include required training for board members and penalties if they don’t follow them.
These changes help make condo associations run better.
Staying informed and compliant
House Bill 1021 updates Florida’s condo association laws, focusing on openness, safety and responsibility. As a condo owner or group member, you must know these changes to follow the rules and manage well. Consider consulting a lawyer for help with residential real estate disputes.