Recently Passed Legislative Amendments Effecting Both Condominium Associations and Homeowners’ Associations – Post 2 of 3

June 20th, 2014

Posted in Real Estate Law

Continuing in our summary of bills passed during the Spring 2014 Legislative Session (please find our first posting regarding House Bill 807 HERE (Post 1 of 3)), below represents a summary of House Bills 7037 and 7051.  Interested Condominium Association (COA) and Homeowner Association (HOA) readers should note that these laws become effective on July 1, 2014, and should carefully consider the soon-to-be effective changes and discuss the same with their community association manager and legal counsel to determine the respective impact of each change going forward.

House Bill 7037. As it relates to condominium and homeowners’ associations, this bill:

  • Amends the Community Association Manager (CAM) statute to list additional duties CAMs may perform. The additions include, but are not limited to:
    • Determining the number of days required for statutory notices;
    • Determining the amounts due the association;
    • Collecting amounts due to the association before filing a civil action;
    • Calculating votes required for a quorum or to approve an amendment;
    • Drafting letter of intended action;
    • Drafting meeting notices and agendas;
    • Calculating and preparing certificates of assessment;
    • Responding to requests for a certificate of assessment; and among others
    • Coordinating or performing maintenance for real or personal property and other routine services involved in the operation of a community association
  • Establishes a new section under Section 468.4334, governing community association managers, entitled “Professional practice standards; liability”, providing that managers are deemed to act as an agent on behalf of a community association as principal, and requiring that managers and management companies discharge their duties in a loyal, skillful, and diligent manner
  • Provides recommended lien and release of lien forms for condominiums cooperatives and homeowners associations for unpaid assessments
  • Provides recommended pre- and post-lien notices for condominium, cooperatives, and homeowners associations for unpaid assessments and charges

House Bill 7051. As it relates to condominium and homeowners’ associations, this bill:

  • Deletes rule-making authority of the Board of Professional Surveyors and Mappers for ‘minimum technical standards’ and replaces it with a requirement to adopt rules establishing ‘standards of practice’ for surveying and mapping.
  • Imposes mandatory rule-making upon the Board that requires the Board to draft and formally propose rules to establish ‘standards of practice’ for surveying and mapping within 180 days of the effective date of the bill.

The above represents a summary of the changes brought about through House Bill 7037 and 7051 in the 2014 Spring Legislative Session.  As stated, HOA and COA directors, officers, and their respective community association managers should carefully review the enacted changes and discuss with legal counsel the impact of these changes.

Please check back for our final post in this legislative update series as to other bills passed by the legislature affecting HOAs and COAs.

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