The Sunshine State is taking measures to make it harder for certain unscrupulous board members to operate in the dark, although some believe this is a case of legislative overreach in response to a few bad actors. A new bill recently signed into law by the Governor will make the following notable changes, among others:
- Condo associations with 150 or more units must generate financial reports and post them on a website.
- Directors’ terms are subject to eight-year term limits, except if a vacancy would result. The term limit can also be waived by 2/3 approval of owners.
- Voting rights cannot be suspended unless the amount owed exceeds $1,000 and is more than 90 days delinquent.
- Criminal penalties may be pursued against board members who falsify records or benefit from certain conflicts of interest.
These new laws reflect further increases in what is already comparatively heavy regulation of condo associations in Florida, and reasonable people may hold different opinions as to whether they will prove beneficial or not. Generally, states with the most residents living in community associations have enacted the most regulations in recent years (for example, see our prior post comparing Michigan to California). With about one-sixth as many people living in community associations when compared to Florida, we in Michigan may not have to worry about similar laws being enacted in the near future, but it will be interesting to see if any additional states do so.