Understanding HB-919 - Homeowners Bill of Rights
This law applies only to HOA’s and does not apply to Condominiums or Cooperatives. This Act takes effect October 1, 2023.
For all HOA notices of Board meetings, the notices now must specifically identify all agenda items for the meetings.
The bill requires that where an Association collects a deposit from a member for any reason, including construction or a lease security deposit, or any other deposit, the Association must keep that deposit in a separate account from other Association funds. Upon completion of the construction project or other reason for which the deposit was collected, the member may request an accounting from the Association, and the accounting must be provided within 7 days of the request. Also, the Association must return any unused funds to the member within thirty (30) days after the construction project or other reason for the deposit has been completed.
The bill provides that an owner’s designated mailing address is the member's property address unless the member has sent written notice to the association requesting that a different mailing address be used for all required notices. Similarly, a member's e-mail address is the e-mail address provided when the member consents in writing to receiving electronic notices unless the member has sent written notice to the association requesting that a different e-mail address be used for required notices.
The bill provides that officers, directors or managers who knowingly accept a kickback or other items without consideration may be subject to monetary damages. It further provides for removal from office if charged or indicted for certain crimes such as forgery of ballots and envelopes, theft or embezzlement of Association funds, destruction of Association records, and obstruction of justice.
If any such criminal charge is pending against an officer or director, such officer or director may not be appointed or elected to any position as an officer or director in any association, nor may have access to any official records of any association, except pursuant to Court Order.
The bill requires developer-appointed officers and directors to annually disclose to the association their relationship to the developer, as well as to disclose any activity that may be reasonably construed to be a conflict of interest.
The bill requires all officers and directors to disclose to the association any activity that may be reasonable construed to be a conflict of interest no less than 14 days before the vote on such activity.
The bill adds that a rebuttable presumption of a conflict of interest exists if any of the following happens without the required 14-day disclosure:
1. A director or officer, or a relative thereof, enters into a contract for goods or services with the association.
2. A director or officer, or a relative thereof, holds an interest in an entity that conducts business with the association or proposes to enter into a contract or other transaction with the association.
The bill requires that a notice of the fining committee hearing must include a specific description of the alleged violation, as well as the specific action required to cure such violation. It also provides that the owner has the right to attend the fining committee hearing by telephone or other electronic means.
After the hearing, the committee shall provide written notice to the parcel owner at his or her designated mailing address or e-mail address of the committee's findings, including any applicable fines or suspensions that have been approved or rejected, and how the parcel owner or any person sought to be fined or suspended may cure the violation, if applicable.
The bill provides criminal sanctions for actions that are deemed to be considered fraudulent voting activities relating to an association's elections, including the following:
- Procuring another person to falsely swear or affirm an oath or affirmation in connection with voting activities.
- Preventing a member from voting or fraudulently changing or attempting to change a ballot, ballot envelope, vote or voting certificate.
- Menacing, threatening, or using bribery or any other corruption to attempt, directly or indirectly, to influence, deceive or deter a member while voting.
- Giving or promising, directly, or indirectly, anything of value to another member with the intent to buy a vote or to corruptly influence that member in casting his or her vote. However, this does not include food that is served at an election rally or meeting or any item of nominal value which is used as an election advertisement, including a campaign message warned by a member.
- Using or threatening to use, directly or indirectly, force, violence, or intimidation or any tactic of coercion or intimidation to induce or compel a member to vote or refrain from voting in any election or ballot measure.
Steven G. Rappaport is an Equity Partner in the Community Associations Practice Group. Mr. Rappaport handles transactional matters for the firm’s community association clients, including drafting amendments to governing documents, attending Board meetings and elections, handling covenant enforcement disputes, and providing opinions on all aspects of association issues. To learn more about Steven including how to work with him, click here.
Associate Attorney Michael Ungerbuehler has been helping community associations across the State of Florida with their legal needs for more than 20 years. In January 2018, Michael joined Sachs Sax Caplan to focus his representation of community associations in South Florida. To learn more about Michael including how to work with him, click here.