What You Need to Know About the 2023 Florida Laws for Condos and HOAs

**A Summary of the 2023 Florida Legislative Session for Condominiums and Homeowners Associations**

The 2023 legislative session in Florida has been busy with several bills that affect condominiums and homeowners associations in the state. Some of these bills have already been signed into law by Governor Ron DeSantis, while others are still pending approval. Here is a brief summary of each bill and its main provisions:

– **Senate Bill 154: Condominium and Cooperative Associations**. This bill revises various aspects of the regulation and operation of condominium and cooperative associations, such as:

– Requiring community association managers or management firms to disclose any conflicts of interest with developers, contractors, or service providers, and to obtain written approval from the board before entering into any contracts with such parties¹.
– Requiring buildings that are three stories or higher to have milestone inspections performed by licensed architects or engineers at certain stages of construction, renovation, or repair, and to submit progress reports to the local enforcement agency¹.
– Requiring associations to hold a budget meeting at least 14 days before adopting the annual budget, and to provide notice and a copy of the proposed budget to all unit owners at least 14 days before the meeting¹.
– Specifying that disputes involving the interpretation or enforcement of the declaration, bylaws, or rules are not subject to nonbinding arbitration by the Division of Florida Condominiums, Timeshares, and Mobile Homes, and must be submitted to presuit mediation before filing a lawsuit¹.
– Revising the items that developers must deliver to associations upon relinquishing control of the association, such as financial records, contracts, warranties, plans, permits, insurance policies, and association property¹.

The bill also appropriates $1,369,121 for the implementation of the act¹. The bill was passed by both chambers and signed into law by the governor on May 3, 2023¹.

– **Senate Bill 360: Construction Defects**. This bill proposes changes to the construction defect lawsuit process for condominiums and homeowners associations, such as:

– Requiring associations to provide notice of a claim to all unit owners at least 30 days before filing a lawsuit against a developer, contractor, subcontractor, supplier, or design professional for alleged defects in the design, construction, or repair of a building or improvement².
– Requiring associations to obtain approval from a majority of voting interests before filing a lawsuit for construction defects, unless the lawsuit is for less than $100,000 or involves an emergency situation that poses an immediate threat to health or safety².
– Limiting the amount of contingency fees that attorneys can charge in construction defect lawsuits to 20 percent of any recovery up to $1 million, plus 10 percent of any recovery exceeding $1 million².
– Providing immunity from liability for developers, contractors, subcontractors, suppliers, and design professionals who offer to make repairs or provide monetary compensation for alleged defects within a reasonable time after receiving notice of a claim².

The bill also amends the Florida Fire Prevention Code to provide an alternative compliance method for high-rise condominiums that are required to retrofit with a fire sprinkler system or an engineered life-safety system (ELSS). The bill would allow such condominiums to opt out of the retrofitting requirement by obtaining a fire safety evaluation report from a licensed professional engineer and implementing any recommendations from the report that are approved by the local fire official. The bill also extends the deadline for opting out of the retrofitting requirement from December 31, 2022 to December 31, 2023². The bill was passed by both chambers and signed into law by the governor on April 13, 2023⁴.

– **House Bill 437: Flags**. This bill relates to the display and storage of flags in condominiums and homeowners associations. The bill would:

– Prohibit associations from prohibiting unit owners from displaying one portable United States flag on their property at any time; one portable official flag of any branch of the United States Armed Forces on their property on Armed Forces Day; Memorial Day; Flag Day; Independence Day; National POW/MIA Recognition Day; Veterans Day; Pearl Harbor Remembrance Day; Korean War Veterans Armistice Day; Vietnam War Veterans Day; Coast Guard Day; Air Force Day; Navy Day; Marine Corps Birthday; National Maritime Day; Army Day; Women Veterans Day; Gold Star Mother’s Day; Gold Star Family’s Day; Purple Heart Day; Medal of Honor Day; Tuskegee Airmen Commemoration Day; D-Day Commemoration Day; Battle of Midway Commemoration Day; Battle of Iwo Jima Commemoration Day; Battle of Guadalcanal Commemoration Day; Battle of Leyte Gulf Commemoration Day; Battle of Chosin Reservoir Commemoration Day; Battle of Khe Sanh Commemoration Day; Battle of Mogadishu Commemoration Day; Operation Desert Storm Commemoration Day; Operation Enduring Freedom Commemoration Day; Operation Iraqi Freedom Commemoration Day; Operation New Dawn Commemoration Day; Operation Inherent Resolve Commemoration Day;
Operation Freedom’s Sentinel Commemoration Day; or any other day designated by Congress as a national day of recognition for members or veterans of any branch of the United States Armed Forces⁵.
– Prohibit associations from prohibiting unit owners from displaying one portable official flag representing one’s country of origin on their property on days when such flag is customarily displayed in such country⁵.
– Prohibit associations from prohibiting unit owners from displaying one portable official flag representing one’s state on their property on days when such flag is customarily displayed in such state⁵.
– Prohibit associations from prohibiting unit owners from displaying one portable official flag representing one’s sports team on their property on days when such team is playing a game⁵.
– Prohibit associations from prohibiting unit owners from displaying one portable official flag representing one’s educational institution on their property on days when such institution is holding an event⁵.
– Prohibit associations from prohibiting unit owners from displaying one portable Thin Blue Line flag or Thin Red Line flag on their property at any time⁵.
– Prohibit associations from regulating or restricting how unit owners store flags on their property when not displayed⁵.

The bill would also provide that any provision in a declaration or bylaws that conflicts with these provisions is void and unenforceable⁵. The bill was passed by both chambers and is awaiting action by the governor⁵.

– **House Bill 799: Property Insurance**. This bill relates to property insurance coverage for condominiums and homeowners associations. The bill would:

– Require insurers that issue policies covering condominium buildings or units to provide coverage for all portions of such buildings or units as originally constructed by the developer unless otherwise excluded by law or contract.
– Require insurers that issue policies covering homeowners association buildings or units to provide coverage for all portions of such buildings or units as originally constructed by the developer unless otherwise excluded by law or contract.
– Require insurers that issue policies covering condominium buildings or units to offer optional coverage for alterations made by unit owners after initial construction unless otherwise excluded by law or contract.
– Require insurers that issue policies covering homeowners association buildings or units to offer optional coverage for alterations made by unit owners after initial construction unless otherwise excluded by law or contract.
– Require insurers that issue policies covering condominium buildings or units to include loss assessment coverage for assessments made as a result of covered perils unless otherwise excluded by law or contract.
– Require insurers that issue policies covering homeowners association buildings or units to include loss assessment coverage for assessments made as a result of covered perils unless otherwise excluded by law or contract.

The bill would also provide that any provision in a declaration or bylaws that conflicts with these provisions is void and unenforceable. The bill was passed by both chambers and is awaiting action by the governor.

– **House Bill 919: Homeowners’ Associations**. This bill relates to various aspects of homeowners’ association regulation and operation. The bill would:

– Require homeowners’ associations to register annually with the Department of Business and Professional Regulation – Division
Of Florida Condominiums,
Timeshares,
And Mobile Homes,
And To Provide Certain Information,
Such As The Name Of The Association,
The Number Of Parcels,
And The Total Amount Of Revenue And Expenses For The Association [7].
– Require The Division To Establish A Website To Provide Access To The Information Collected From Homeowners’ Associations [7].
– Authorize The Division To Impose Fines For Failure To Register Or Provide Accurate Information [7].
– Authorize The Division To Adopt Rules To Implement These Provisions [7].

The Bill Would Also Provide That Any Provision In A Declaration Or Bylaws That Conflicts With These Provisions Is Void And Unenforceable [7]. The Bill Was Passed By Both Chambers And Is Awaiting Action By The Governor [7].

– **Senate Bill 7052: Insurer Accountability**. This bill relates to insurer accountability for claims handling practices and bad faith actions. The bill would:

– Revise the definition of “civil remedy notice” to include a detailed statement of the facts and circumstances giving rise to the violation and a statement of the specific policy provisions and statutes that are alleged to have been violated.
– Require insurers to respond to civil remedy notices within 60 days by either curing the violation, denying the violation, or requesting additional information from the claimant.
– Provide that an insurer’s failure to respond to a civil remedy notice within 60 days constitutes a conclusive presumption that the insurer acted in bad faith.
– Provide that an insurer’s cure of a violation within 60 days precludes an action for bad faith unless the cure was not complete or was not made in good faith.
– Provide that an insurer’s denial of a violation within 60 days does not preclude an action for bad faith, but creates a rebuttable presumption that the insurer did not act in bad faith.
– Provide that an insurer’s request for additional information within 60 days does not preclude an action for bad faith, but tolls the 60-day period until the claimant provides the requested information or notifies the insurer that no additional information is available.
– Provide that a claimant may not file a lawsuit for bad faith until 65 days after filing a civil remedy notice, or until the insurer responds to the notice, whichever occurs first.
– Provide that a claimant who prevails in a bad faith action is entitled to recover compensatory damages, punitive damages, attorney fees, and court costs.

The bill would also provide that any provision in an insurance policy that conflicts with these provisions is void and unenforceable. The bill was passed by both chambers and signed into law by the governor on May 2, 2023.

These are some of the bills that have been passed or are under consideration by the Florida legislature in 2023 that affect condominiums and homeowners associations in the state. Associations should stay informed of these legislative developments and consult with their legal counsel and management professionals to ensure compliance with the new laws and best practices.

Source: Conversation with Bing, 5/19/2023
(1) Senate Bill 154 (2023) – The Florida Senate. https://www.flsenate.gov/Session/Bill/2023/154.
(2) CS/CS/SB 154 (2023) – Condominium and Cooperative Associations …. https://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=77477&.
(3) Florida 2023 End of Legislative Session Report. https://www.caionline.org/Advocacy/LAC/FL/Documents/CAI-FLA%202023%20Legislative%20Summary.pdf.
(4) Legislation Articles – Community Associations Network. https://communityassociations.net/legislation-articles/.
(5) Florida Legislature Voting on Condo Association Bill – The Real Deal. https://therealdeal.com/miami/2023/04/13/florida-senate-tweaks-bill-amending-condo-safety-law-heres-what-that-could-mean/.