This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0547.CIV
DATE: 2/3/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 547 Residential Association Board of Directors
SPONSOR(S): Borrero
TIED BILLS: IDEN./SIM. BILLS: SB 394
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice & Property Rights Subcommittee Mawn Jones
2) Regulatory Reform Subcommittee
3) Judiciary Committee
SUMMARY ANALYSIS
The Department of Business and Professional Regulation (“DBPR”) broadly regulates condominium (“condo”)
and cooperative (“co-op”) associations and has limited regulatory authority over homeowners’ associations
(“HOA”). A condo is a form of real property ownership created under ch. 718, F.S., composed of units which
may be owned by one or more persons along with an undivided right of access to common elements. A co-op
is a form of property ownership created under ch. 719, F.S., where the real property is owned by the co-op
association and individual units are leased to the residents, who own shares in the association. An HOA is a
property owners association created under ch. 720, F.S., in which voting membership is made up of parcel
owners, in which membership is a mandatory condition of parcel ownership, and which may impose
assessments that, if unpaid, may become a lien on the parcel. Each association is governed by a board of
directors, and each director must, within 90 days of election or appointment:
Certify in writing that he or she has read the association’s governing documents, will work to uphold
the governing documents to the best of his or her ability, and will faithfully discharge his or her
fiduciary responsibility to the association’s members; or
Submit an educational certificate showing he or she satisfactorily completed the educational
curriculum administered by an education provider approved by DBPR’s Division of Condominiums,
Timeshares, and Mobile Homes (“Division”) within a specified time after election or appointment.
A director who fails to comply with such requirements is suspended from serving on the board until he or she
complies, and the certification is part of the association’s official records.
HB 547 requires that a director newly elected or appointed to the board of a condo, co-op, or HOA, must,
within 90 days of election or appointment, both:
Certify by affidavit that he or she has read the association’s governing documents, will work to
uphold the governing documents to the best of his or her ability, and faithfully discharge his or her
fiduciary responsibility to the association’s members; and
Submit an educational certificate.
Further, the bill specifies that:
A director who fails to provide both an affidavit and an educational certificate is suspended from the
board until he or she provides the documents.
The affidavit and educational certificate:
o Are valid and do not have to be resubmitted if the director serves on the board without
interruption.
o Must be maintained in the association’s official records.
The bill does not appear to have a fiscal impact on state or local governments. The bill provides an effective
date of July 1, 2022. STORAGE NAME: h0547.CIV PAGE: 2
DATE: 2/3/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Community Associations
The Florida Division of Condominiums, Timeshares and Mobile Homes (“Division”), within the
Department of Business and Professional Regulation (“DBPR”), provides consumer protection for
Florida residents living in certain regulated communities through board of director educational
programs, complaint resolution, alternative dispute resolution, and developer disclosure. These
regulated communities include:
Condominium associations;
Cooperative associations; and
Homeowners' associations (limited to the arbitration of election and recall disputes).
Condominiums
A condominium (“condo”) is a form of real property ownership created under ch. 718, F.S. Persons own
condo units along with an undivided right of access to the condo’s common elements.
1
A condo is
created by recording a declaration of condominium, governing the relationship between condo unit
owners and the condo association, in the public records of the county where the condo is located.
2
All
unit owners are members of the condo association, and the association is responsible for common
elements operation and maintenance.
3
Cooperatives
A cooperative (“co-op”) is a form of property ownership created under ch. 719, F.S., in which the real
property is owned by the co-op association and individual units are leased to the residents, who own
shares in the association.
4
The lease payment amount is the pro-rata share of the co-op’s operational
expenses. Co-ops operate similarly to condos, and the laws regulating co-ops are largely identical to
those regulating condos.
5
Homeowners’ Associations
A homeowners’ association (“HOA”) is an association of residential property owners in which voting
membership is made up of parcel owners, in which membership is a mandatory condition of parcel
ownership, and which is authorized to impose assessments that, if unpaid, may become a lien on the
parcel.
6
An HOA’s powers and duties include those powers and duties provided by law and in the
governing documents.
7
Florida law sets procedures and minimum requirements for HOA operation and
provides for a mandatory binding arbitration program, administered by the Division, for certain election
and recall disputes, but no state agency directly regulates HOAs.
8
1
S. 718.103(11), F.S.
2
S. 718.104(2), F.S.
3
S. 718.103(2), F.S.
4
S. 719.103(2) and (26), F.S.
5
See generally ch. 719, F.S.
6
S. 720.301(9), F.S.
7
Ss. 720.301(8) and 720.303(1), F.S.
8
See generally ch. 720, F.S. STORAGE NAME: h0547.CIV PAGE: 3
DATE: 2/3/2022
Board of Directors
Each condo, co-op, and HOA is governed by a board of directors (“board”) elected by the association’s
members or appointed by a developer prior to turnover to the association. The board has those duties
described in statute and in the association’s governing documents, including association administration,
policy development, and property maintenance.
9
A board director also has a fiduciary responsibility to
the association’s members and must use the highest degree of good faith in placing the interests of the
members above his or her own personal interests.
10
To ensure that a director is able to faithfully and competently exercise his or her duties, within 90 days
of being elected or appointed to the board, each newly elected or appointed director must:
Certify in writing that he or she has read the association’s governing documents; will work to
uphold the governing documents to the best of his or her ability; and will faithfully discharge his
or her fiduciary responsibility to the association’s members; or
Submit a certificate showing he or she satisfactorily completed the educational curriculum
administered by a Division-approved
11
education provider within one year before or 90 days
after his or her election or appointment date (“educational certificate”).
12
A director who fails to comply with such requirements is suspended from serving on the board until he
or she complies, and the board may temporarily fill the vacancy during the suspension period.
13
However, the written certification or educational certificate is valid and does not have to be resubmitted
if the director serves on the board without interruption.
14
Official Records
Each condo, co-op, and HOA must maintain official association records generally for at least seven
years, including:
The articles of incorporation, declaration, bylaws, and rules of the association;
Meeting minutes;
Ballots, sign-in sheets, voting proxies, and all other documents relating to voting;
A member roster;
A copy of any contracts to which the association is a party or under which the association or the
members have an obligation;
The association’s accounting records;
All contracts for work to be performed, including bids for work, materials, and equipment;
15
A copy of developer-provided plans, permits, warranties, and other items;
The director’s written certification;
16
and
All other written records which are related to the association’s operation.
17
Members may inspect and copy an association’s official records, and the association must make the
records available for inspection within ten business days of receiving an inspection request.
18
Further,
any condo association with 150 or more units which does not contain timeshare units must post digital
9
See generally chs. 718, 719, and 720, F.S.; Florida DBPR, FAQs, http://www.myfloridalicense.com/DBPR/condominiums-and-
cooperatives/faqs/#1492784365590-e9ec1083-2ca1 (last visited Feb. 3, 2022).
10
Id.
11
A Division-approved provider must cover specified topics in its education program, which may include budgets; reserves; elections;
financial reporting; association operations; dispute resolution; and records maintenance. For a list of Division-approved education
providers, see http://www.myfloridalicense.com/dbpr/lsc/documents/CondoCOOPListofApprovedProviders2015.pdf (last visited Feb. 3,
2022). 61B-19.001 and 61B-75.0051, F.A.C.
12
This requirement does not apply to the board of directors for a commercial condominium. Ss. 718.112(2)(d), 719.106(1)(d), and
720.3033(1)(a)-(c), F.S.
13
Id.
14
Id.
15
Such bids are only required to be maintained for one year. S. 718.111(12)(b), F.S.
16
Such certification must only be maintained for five years or the duration of the director’s uninterrupted tenure, whichever is longer.
However, failure to maintain such certification does not invalidate any board action. Ss. 718.112(2)(d), 719.160(1)(d), and
720.3033(1)(c), F.S.
17
Ss. 718.111(12)(a), 719.104(2), and 720.303(4)-(5), F.S.
18
Id. STORAGE NAME: h0547.CIV PAGE: 4
DATE: 2/3/2022
copies of specified documents on a website or application that can be downloaded on a mobile device,
including a current copy of the director’s certification.
19
Effect of Proposed Changes
HB 547 requires that a director newly elected or appointed to the board of a residential condo, co-op, or
HOA with 10 or more parcels, must, within 90 days of election or appointment, both:
Certify by affidavit that he or she has read the association’s governing documents; will work to
uphold the governing documents to the best of his or her ability; and will faithfully discharge his
or her fiduciary responsibility to the association’s members; and
Submit an educational certificate.
Further, the bill specifies that:
A director who fails to provide both an affidavit and an educational certificate is suspended from
serving on the board until he or she provides the documents.
The affidavit and education certificate:
o Are valid and do not have to be resubmitted if the director serves on the board without
interruption.
o Must be maintained in the association’s official records and posted on the website or
application of a condo association with 150 or more units which does not contain
timeshare units.
The bill provides an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1: Amends s. 718.111, F.S., relating to official records.
Section 2: Amends s. 718.112, F.S., relating to bylaws.
Section 3: Amends s. 719.106, F.S., relating to bylaws; cooperative ownership.
Section 4: Amends s. 720.3033, F.S. relating to officers and directors.
Section 5: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
19
S. 718.111(12)(g)2.h., F.S. STORAGE NAME: h0547.CIV PAGE: 5
DATE: 2/3/2022
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may ensure that the directors of a condo, co-op, or HOA board are properly educated as to
their duties and responsibilities related to maintaining association property and association governance,
which may in turn protect the financial investment of the owner of a condo unit, share in a co-op, or
parcel in an HOA. However, by requiring both an affidavit and an educational certificate from each
director upon election or appointment, the bill may increase costs for an association due to the more
frequent need for a director to complete a Division-approved educational curriculum, which may be but
is not necessarily both free and available online.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect counties or municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
Not applicable.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES