720.303 Association powers and duties; meetings of board; official records; budgets; financial reporting; association funds; recalls.—
(1) POWERS AND DUTIES.—An association that operates a community as defined in s. 720.301 must be operated by an association that is a Florida corporation. After October 1, 1995, the association must be incorporated and the initial governing documents must be recorded in the official records of the county in which the community is located. An association may operate more than one community. The officers and directors of an association are subject to s. 617.0830 and have a fiduciary relationship to the members who are served by the association. The powers and duties of an association include those set forth in this chapter and, except as expressly limited or restricted in this chapter, those set forth in the governing documents. After control of the association is obtained by members other than the developer, the association may institute, maintain, settle, or appeal actions or hearings in its name on behalf of all members concerning matters of common interest to the members, including, but not limited to, the common areas; roof or structural components of a building, or other improvements for which the association is responsible; mechanical, electrical, or plumbing elements serving an improvement or building for which the association is responsible; representations of the developer pertaining to any existing or proposed commonly used facility; and protest of ad valorem taxes on commonly used facilities. The association may defend actions in eminent domain or bring inverse condemnation actions. Before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained. This subsection does not limit any statutory or common-law right of any individual member or class of members to bring any action without participation by the association. A member does not have authority to act for the association by virtue of being a member. An association may have more than one class of members and may issue membership certificates. An association of 15 or fewer parcel owners may enforce only the requirements of those deed restrictions established prior to the purchase of each parcel upon an affected parcel owner or owners.
(2) BOARD MEETINGS.—
(a) Members of the board of administration may use e-mail as a means of communication but may not cast a vote on an association matter via e-mail. A meeting of the board of directors of an association occurs whenever a quorum of the board gathers to conduct association business. Meetings of the board must be open to all members, except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege. A meeting of the board must be held at a location that is accessible to a physically handicapped person if requested by a physically handicapped person who has a right to attend the meeting. The provisions of this subsection shall also apply to the meetings of any committee or other similar body when a final decision will be made regarding the expenditure of association funds and to meetings of any body vested with the power to approve or disapprove architectural decisions with respect to a specific parcel of residential property owned by a member of the community.
(b) Members have the right to attend all meetings of the board. The right to attend such meetings includes the right to speak at such meetings with reference to all designated items. The association may adopt written reasonable rules expanding the right of members to speak and governing the frequency, duration, and other manner of member statements, which rules must be consistent with this paragraph and may include a sign-up sheet for members wishing to speak. Notwithstanding any other law, meetings between the board or a committee and the association’s attorney to discuss proposed or pending litigation or meetings of the board held for the purpose of discussing personnel matters are not required to be open to the members other than directors.
(c) The bylaws shall provide the following for giving notice to parcel owners and members of all board meetings and, if they do not do so, shall be deemed to include the following:
1. Notices of all board meetings must specifically identify agenda items for the meetings and must be posted in a conspicuous place in the community at least 48 hours in advance of a meeting, except in an emergency. In the alternative, if notice is not posted in a conspicuous place in the community, notice of each board meeting must be mailed or delivered to each member at least 7 days before the meeting, except in an emergency. Notwithstanding this general notice requirement, for communities with more than 100 members, the association bylaws may provide for a reasonable alternative to posting or mailing of notice for each board meeting, including publication of notice, provision of a schedule of board meetings, or the conspicuous posting and repeated broadcasting of the notice on a closed-circuit cable television system serving the homeowners’ association. However, if broadcast notice is used in lieu of a notice posted physically in the community, the notice must be broadcast at least four times every broadcast hour of each day that a posted notice is otherwise required. When broadcast notice is provided, the notice and agenda must be broadcast in a manner and for a sufficient continuous length of time so as to allow an average reader to observe the notice and read and comprehend the entire content of the notice and the agenda. In addition to any of the authorized means of providing notice of a meeting of the board, the association may, by rule, adopt a procedure for conspicuously posting the meeting notice and the agenda on the association’s website or an application that can be downloaded on a mobile device for at least the minimum period of time for which a notice of a meeting is also required to be physically posted on the association property. Any rule adopted must, in addition to other matters, include a requirement that the association send an electronic notice to members whose e-mail addresses are included in the association’s official records in the same manner as is required for a notice of a meeting of the members. Such notice must include a hyperlink to the website or such mobile application on which the meeting notice is posted. The association may provide notice by electronic transmission in a manner authorized by law for meetings of the board of directors, committee meetings requiring notice under this section, and annual and special meetings of the members to any member who has provided a facsimile number or e-mail address to the association to be used for such purposes; however, a member must consent in writing to receiving notice by electronic transmission.
2. An assessment may not be levied at a board meeting unless the notice of the meeting includes a statement that assessments will be considered and the nature of the assessments. Written notice of any meeting at which special assessments will be considered or at which amendments to rules regarding parcel use will be considered must be mailed, delivered, or electronically transmitted to the members and parcel owners and posted conspicuously on the property or broadcast on closed-circuit cable television not less than 14 days before the meeting.
3. Directors may not vote by proxy or by secret ballot at board meetings, except that secret ballots may be used in the election of officers. This subsection also applies to the meetings of any committee or other similar body, when a final decision will be made regarding the expenditure of association funds, and to any body vested with the power to approve or disapprove architectural decisions with respect to a specific parcel of residential property owned by a member of the community.
(d) If 20 percent of the total voting interests petition the board to address an item of business, the board shall at its next regular board meeting or at a special meeting of the board, but not later than 60 days after the receipt of the petition, take the petitioned item up on an agenda. The board shall give all members notice of the meeting at which the petitioned item shall be addressed in accordance with the 14-day notice requirement pursuant to subparagraph (c)2. Each member shall have the right to speak for at least 3 minutes on each matter placed on the agenda by petition, provided that the member signs the sign-up sheet, if one is provided, or submits a written request to speak prior to the meeting. Other than addressing the petitioned item at the meeting, the board is not obligated to take any other action requested by the petition.
(e) At the first board meeting, excluding the organizational meeting, which follows the annual meeting of the members, the board shall consider the desirability of filing notices to preserve the covenants or restrictions affecting the community or association from extinguishment under the Marketable Record Title Act, chapter 712, and to authorize and direct the appropriate officer to file notice in accordance with s. 720.3032.
(3) MINUTES.—Minutes of all meetings of the members of an association and of the board of directors of an association must be maintained in written form or in another form that can be converted into written form within a reasonable time. A vote or abstention from voting on each matter voted upon for each director present at a board meeting must be recorded in the minutes.
(4) OFFICIAL RECORDS.—
(a) The association shall maintain each of the following items, when applicable, for at least 7 years, unless the governing documents of the association require a longer period of time, which constitute the official records of the association:
1. Copies of any plans, specifications, permits, and warranties related to improvements constructed on the common areas or other property that the association is obligated to maintain, repair, or replace.
2. A copy of the bylaws of the association and of each amendment to the bylaws.
3. A copy of the articles of incorporation of the association and of each amendment thereto.
4. A copy of the declaration of covenants and a copy of each amendment thereto.
5. A copy of the current rules of the homeowners’ association.
6. The minutes of all meetings of the board of directors and of the members.
7. A current roster of all members and their designated mailing addresses and parcel identifications. A member’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. The association shall also maintain the e-mail addresses and the facsimile numbers designated by members for receiving notice sent by electronic transmission of those members consenting to receive notice by electronic transmission. A member’s e-mail address is the e-mail address the member provided when consenting in writing to receiving notice by electronic transmission, unless the member has sent written notice to the association requesting that a different e-mail address be used for all required notices. The e-mail addresses and facsimile numbers provided by members to receive notice by electronic transmission must be removed from association records when the member revokes consent to receive notice by electronic transmission. However, the association is not liable for an erroneous disclosure of the e-mail address or the facsimile number for receiving electronic transmission of notices.
8. All of the association’s insurance policies or a copy thereof.
9. A current copy of all contracts to which the association is a party, including, without limitation, any management agreement, lease, or other contract under which the association has any obligation or responsibility. Bids received by the association for work to be performed are considered official records and must be kept for a period of 1 year.
10. The financial and accounting records of the association, kept according to good accounting practices. The financial and accounting records must include:
a. Accurate, itemized, and detailed records of all receipts and expenditures.
b. A current account and a periodic statement of the account for each member, designating the name and current address of each member who is obligated to pay assessments, the due date and amount of each assessment or other charge against the member, the date and amount of each payment on the account, and the balance due.
c. All tax returns, financial statements, and financial reports of the association.
d. Any other records that identify, measure, record, or communicate financial information.
11. A copy of the disclosure summary described in s. 720.401(1).
12. Ballots, sign-in sheets, voting proxies, and all other papers and electronic records relating to voting by parcel owners, which must be maintained for at least 1 year after the date of the election, vote, or meeting.
13. All affirmative acknowledgments made pursuant to s. 720.3085(3)(c)3.
14. All other written records of the association not specifically included in this subsection which are related to the operation of the association.
(b)1. By January 1, 2025, an association that has 100 or more parcels shall post the following documents on its website or make available such documents through an application that can be downloaded on a mobile device:
a. The articles of incorporation of the association and each amendment thereto.
b. The recorded bylaws of the association and each amendment thereto.
c. The declaration of covenants and a copy of each amendment thereto.
d. The current rules of the association.
e. A list of all current executory contracts or documents to which the association is a party or under which the association or the parcel owners have an obligation or responsibility and, after bidding for the related materials, equipment, or services has closed, a list of bids received by the association within the past year.
f. The annual budget required by subsection (6) and any proposed budget to be considered at the annual meeting.
g. The financial report required by subsection (7) and any monthly income or expense statement to be considered at a meeting.
h. The association’s current insurance policies.
i. The certification of each director as required by s. 720.3033(1)(a).
j. All contracts or transactions between the association and any director, officer, corporation, firm, or association that is not an affiliated homeowners’ association or any other entity in which a director of an association is also a director or an officer and has a financial interest.
k. Any contract or document regarding a conflict of interest or possible conflict of interest as provided in ss. 468.436(2)(b)6. and 720.3033(2).
l. Notice of any scheduled meeting of members and the agenda for the meeting, as required by s. 720.306, at least 14 days before such meeting. The notice must be posted in plain view on the homepage of the website or application, or on a separate subpage of the website or application labeled “Notices” which is conspicuously visible and linked from the homepage. The association shall also post on its website or application any document to be considered and voted on by the members during the meeting or any document listed on the meeting agenda at least 7 days before the meeting at which such document or information within the document will be considered.
m. Notice of any board meeting, the agenda, and any other document required for such meeting as required by subsection (3), which must be posted on the website or application no later than the date required for notice under subsection (3).
2. The association’s website or application must be accessible through the Internet and must contain a subpage, web portal, or other protected electronic location that is inaccessible to the general public and accessible only to parcel owners and employees of the association.
3. Upon written request by a parcel owner, the association must provide the parcel owner with a username and password and access to the protected sections of the association’s website or application which contains the official documents of the association.
4. The association shall ensure that the information and records described in paragraph (5)(g), which are not allowed to be accessible to parcel owners, are not posted on the association’s website or application. If protected information or information restricted from being accessible to parcel owners is included in documents that are required to be posted on the association’s website or application, the association must ensure the information is redacted before posting the documents. Notwithstanding the foregoing, the association or its authorized agent is not liable for disclosing information that is protected or restricted under paragraph (5)(g) unless such disclosure was made with a knowing or intentional disregard of the protected or restricted nature of such information.
(c) The association shall adopt written rules governing the method or policy by which the official records of the association are to be retained and the time period such records must be retained pursuant to paragraph (a). Such information must be made available to the parcel owners through the association’s website or application.
(5) INSPECTION AND COPYING OF RECORDS.—
(a) Unless otherwise provided by law or the governing documents of the association, the official records must be maintained within this state for at least 7 years and be made available to a parcel owner for inspection or photocopying within 45 miles of the community or within the county in which the association is located within 10 business days after receipt by the board or its designee of a written request from the parcel owner. This subsection may be complied with by having a copy of the official records available for inspection or copying in the community or by making the records available to a parcel owner electronically via the Internet or by allowing the records to be viewed in electronic format on a computer screen and printed upon request. If the association has a photocopy machine available where the records are maintained, it must provide parcel owners with copies on request during the inspection if the entire request is limited to no more than 25 pages. An association shall allow a member or his or her authorized representative to use a portable device, including a smartphone, tablet, portable scanner, or any other technology capable of scanning or taking photographs, to make an electronic copy of the official records in lieu of the association’s providing the member or his or her authorized representative with a copy of such records. The association may not charge a fee to a member or his or her authorized representative for the use of a portable device.
(b) The failure of an association to provide access to the records within 10 business days after receipt of a written request submitted by certified mail, return receipt requested, creates a rebuttable presumption that the association willfully failed to comply with this subsection.
(c) A member denied access to official records is entitled to the actual damages or minimum damages for the association’s willful failure to comply with this subsection. The minimum damages are to be $50 per calendar day up to 10 days, the calculation to begin on the 11th business day after receipt of the written request.
(d) Any director or member of the board or association or a community association manager who knowingly, willfully, and repeatedly violates paragraph (a), with the intent of causing harm to the association or one or more of its members, commits a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083. For purposes of this paragraph, the term “repeatedly” means two or more violations within a 12-month period.
(e) Any person who knowingly and intentionally defaces or destroys accounting records during the period in which such records are required to be maintained, or who knowingly or intentionally fails to create or maintain accounting records that are required to be created or maintained, with the intent of causing harm to the association or one or more of its members, commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.
(f) Any person who willfully and knowingly refuses to release or otherwise produce association records with the intent to avoid or escape detection, arrest, trial, or punishment for the commission of a crime, or to assist another person with such avoidance or escape, commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
(g) The association may adopt reasonable written rules governing the frequency, time, location, notice, records to be inspected, and manner of inspections, but may not require a parcel owner to demonstrate any proper purpose for the inspection, state any reason for the inspection, or limit a parcel owner’s right to inspect records to less than one 8-hour business day per month. The association may impose fees to cover the costs of providing copies of the official records, including the costs of copying and the costs required for personnel to retrieve and copy the records if the time spent retrieving and copying the records exceeds one-half hour and if the personnel costs do not exceed $20 per hour. Personnel costs may not be charged for records requests that result in the copying of 25 or fewer pages. The association may charge up to 25 cents per page for copies made on the association’s photocopier. If the association does not have a photocopy machine available where the records are kept, or if the records requested to be copied exceed 25 pages in length, the association may have copies made by an outside duplicating service and may charge the actual cost of copying, as supported by the vendor invoice. The association shall maintain an adequate number of copies of the recorded governing documents, to ensure their availability to members and prospective members. Notwithstanding this subsection, the following records are not accessible to members or parcel owners:
1. Any record protected by the lawyer-client privilege as described in s. 90.502 and any record protected by the work-product privilege, including, but not limited to, a record prepared by an association attorney or prepared at the attorney’s express direction which reflects a mental impression, conclusion, litigation strategy, or legal theory of the attorney or the association and which was prepared exclusively for civil or criminal litigation or for adversarial administrative proceedings or which was prepared in anticipation of such litigation or proceedings until the conclusion of the litigation or proceedings.
2. Information obtained by an association in connection with the approval of the lease, sale, or other transfer of a parcel.
3. Information an association obtains in a gated community in connection with guests’ visits to parcel owners or community residents.
4. Personnel records of association or management company employees, including, but not limited to, disciplinary, payroll, health, and insurance records. For purposes of this subparagraph, the term “personnel records” does not include written employment agreements with an association or management company employee or budgetary or financial records that indicate the compensation paid to an association or management company employee.
5. Medical records of parcel owners or community residents.
6. Social security numbers, driver license numbers, credit card numbers, electronic mailing addresses, telephone numbers, facsimile numbers, emergency contact information, any addresses for a parcel owner other than as provided for association notice requirements, and other personal identifying information of any person, excluding the person’s name, parcel designation, mailing address, and property address. Notwithstanding the restrictions in this subparagraph, an association may print and distribute to parcel owners a directory containing the name, parcel address, and all telephone numbers of each parcel owner. However, an owner may exclude his or her telephone numbers from the directory by so requesting in writing to the association. An owner may consent in writing to the disclosure of other contact information described in this subparagraph. The association is not liable for the disclosure of information that is protected under this subparagraph if the information is included in an official record of the association and is voluntarily provided by an owner and not requested by the association.
7. Any electronic security measure that is used by the association to safeguard data, including passwords.
8. The software and operating system used by the association which allows the manipulation of data, even if the owner owns a copy of the same software used by the association. The data is part of the official records of the association.
9. All affirmative acknowledgments made pursuant to s. 720.3085(3)(c)3.
(h) The association or its authorized agent is not required to provide a prospective purchaser or lienholder with information about the residential subdivision or the association other than information or documents required by this chapter to be made available or disclosed. The association or its authorized agent may charge a reasonable fee to the prospective purchaser or lienholder or the current parcel owner or member for providing good faith responses to requests for information by or on behalf of a prospective purchaser or lienholder, other than that required by law, if the fee does not exceed $150 plus the reasonable cost of photocopying and any attorney fees incurred by the association in connection with the response.
(i) If an association receives a subpoena for records from a law enforcement agency, the association must provide a copy of such records or otherwise make the records available for inspection and copying to a law enforcement agency within 5 business days after receipt of the subpoena, unless otherwise specified by the law enforcement agency or subpoena. An association must assist a law enforcement agency in its investigation to the extent permissible by law.
(6) BUDGETS.—
(a) The association shall prepare an annual budget that sets out the annual operating expenses. The budget must reflect the estimated revenues and expenses for that year and the estimated surplus or deficit as of the end of the current year. The budget must set out separately all fees or charges paid for by the association for recreational amenities, whether owned by the association, the developer, or another person. The association shall provide each member with a copy of the annual budget or a written notice that a copy of the budget is available upon request at no charge to the member. The copy must be provided to the member within the time limits set forth in subsection (5).
(b) In addition to annual operating expenses, the budget may include reserve accounts for capital expenditures and deferred maintenance for which the association is responsible. If reserve accounts are not established pursuant to paragraph (d), funding of such reserves is limited to the extent that the governing documents limit increases in assessments, including reserves. If the budget of the association includes reserve accounts established pursuant to paragraph (d), such reserves shall be determined, maintained, and waived in the manner provided in this subsection. Once an association provides for reserve accounts pursuant to paragraph (d), the association shall thereafter determine, maintain, and waive reserves in compliance with this subsection. This section does not preclude the termination of a reserve account established pursuant to this paragraph upon approval of a majority of the total voting interests of the association. Upon such approval, the terminating reserve account shall be removed from the budget.
(c)1. If the budget of the association does not provide for reserve accounts under paragraph (d), or the declaration of covenants, articles, or bylaws do not obligate the developer to create reserves, and the association is responsible for the repair and maintenance of capital improvements that may result in a special assessment if reserves are not provided or not fully funded, each financial report for the preceding fiscal year required by subsection (7) must contain the following statement in conspicuous type:
THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR FULLY FUNDED RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. OWNERS MAY ELECT TO PROVIDE FOR FULLY FUNDED RESERVE ACCOUNTS UNDER SECTION 720.303(6), FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
2. If the budget of the association does provide for funding accounts for deferred expenditures, including, but not limited to, funds for capital expenditures and deferred maintenance, but such accounts are not created or established under paragraph (d), each financial report for the preceding fiscal year required under subsection (7) must also contain the following statement in conspicuous type:
THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO PROVIDE FOR RESERVE ACCOUNTS UNDER SECTION 720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
(d) An association is deemed to have provided for reserve accounts upon the affirmative approval of a majority of the total voting interests of the association. Such approval may be obtained by vote of the members at a duly called meeting of the membership or by the written consent of a majority of the total voting interests of the association. The approval action of the membership must state that reserve accounts shall be provided for in the budget and must designate the components for which the reserve accounts are to be established. Upon approval by the membership, the board of directors shall include the required reserve accounts in the budget in the next fiscal year following the approval and each year thereafter. Once established as provided in this subsection, the reserve accounts must be funded or maintained or have their funding waived in the manner provided in paragraph (f).
(e) The amount to be reserved in any account established shall be computed by means of a formula that is based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense of each reserve item. The association may adjust replacement reserve assessments annually to take into account any changes in estimates of cost or useful life of a reserve item.
(f) After one or more reserve accounts are established, the membership of the association, upon a majority vote at a meeting at which a quorum is present, may provide for no reserves or less reserves than required by this section. If a meeting of the parcel owners has been called to determine whether to waive or reduce the funding of reserves and such result is not achieved or a quorum is not present, the reserves as included in the budget go into effect. After the turnover, the developer may vote its voting interest to waive or reduce the funding of reserves. Any vote taken pursuant to this subsection to waive or reduce reserves is applicable only to one budget year.
(g) Funding formulas for reserves authorized by this section must be based on a separate analysis of each of the required assets or a pooled analysis of two or more of the required assets.
1. If the association maintains separate reserve accounts for each of the required assets, the amount of the contribution to each reserve account is the sum of the following two calculations:
a. The total amount necessary, if any, to bring a negative component balance to zero.
b. The total estimated deferred maintenance expense or estimated replacement cost of the reserve component less the estimated balance of the reserve component as of the beginning of the period the budget will be in effect. The remainder, if greater than zero, shall be divided by the estimated remaining useful life of the component.
The formula may be adjusted each year for changes in estimates and deferred maintenance performed during the year and may include factors such as inflation and earnings on invested funds.
2. If the association maintains a pooled account of two or more of the required reserve assets, the amount of the contribution to the pooled reserve account as disclosed on the proposed budget may not be less than that required to ensure that the balance on hand at the beginning of the period the budget will go into effect plus the projected annual cash inflows over the remaining estimated useful life of all of the assets that make up the reserve pool are equal to or greater than the projected annual cash outflows over the remaining estimated useful lives of all the assets that make up the reserve pool, based on the current reserve analysis. The projected annual cash inflows may include estimated earnings from investment of principal and accounts receivable minus the allowance for doubtful accounts. The reserve funding formula may not include any type of balloon payments.
(h) Reserve funds and any interest accruing thereon shall remain in the reserve account or accounts and shall be used only for authorized reserve expenditures unless their use for other purposes is approved in advance by a majority vote at a meeting at which a quorum is present. Prior to turnover of control of an association by a developer to parcel owners, the developer-controlled association shall not vote to use reserves for purposes other than those for which they were intended without the approval of a majority of all nondeveloper voting interests voting in person or by limited proxy at a duly called meeting of the association.
(i)1. While a developer is in control of a homeowners’ association, the developer may, but is not required to, include reserves in the budget. If the developer includes reserves in the budget, the developer may determine the amount of reserves included. The developer is not obligated to pay for:
a. Contributions to reserve accounts for capital expenditures and deferred maintenance, as well as any other reserves that the homeowners’ association or the developer may be required to fund pursuant to any state, municipal, county, or other governmental statute or ordinance;
b. Operating expenses; or
c. Any other assessments related to the developer’s parcels for any period of time for which the developer has provided in the declaration that in lieu of paying any assessments imposed on any parcel owned by the developer, the developer need only pay the deficit, if any, in any fiscal year of the association, between the total amount of the assessments receivable from other members plus any other association income and the lesser of the budgeted or actual expenses incurred by the association during such fiscal year.
2. This paragraph applies to all homeowners’ associations existing on or created after July 1, 2021.
(7) FINANCIAL REPORTING.—Within 90 days after the end of the fiscal year, or annually on the date provided in the bylaws, the association shall prepare and complete, or contract with a third party for the preparation and completion of, a financial report for the preceding fiscal year. Within 21 days after the final financial report is completed by the association or received from the third party, but not later than 120 days after the end of the fiscal year or other date as provided in the bylaws, the association shall, within the time limits set forth in subsection (5), provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member. Financial reports shall be prepared as follows:
(a) An association that meets the criteria of this paragraph shall prepare or cause to be prepared a complete set of financial statements in accordance with generally accepted accounting principles as adopted by the Board of Accountancy. The financial statements shall be based upon the association’s total annual revenues, as follows:
1. An association with total annual revenues of $150,000 or more, but less than $300,000, shall prepare compiled financial statements.
2. An association with total annual revenues of at least $300,000, but less than $500,000, shall prepare reviewed financial statements.
3. An association with total annual revenues of $500,000 or more shall prepare audited financial statements.
4. An association with at least 1,000 parcels shall prepare audited financial statements, notwithstanding the association’s total annual revenues.
(b)1. An association with total annual revenues of less than $150,000 shall prepare a report of cash receipts and expenditures.
2. A report of cash receipts and disbursement must disclose the amount of receipts by accounts and receipt classifications and the amount of expenses by accounts and expense classifications, including, but not limited to, the following, as applicable: costs for security, professional, and management fees and expenses; taxes; costs for recreation facilities; expenses for refuse collection and utility services; expenses for lawn care; costs for building maintenance and repair; insurance costs; administration and salary expenses; and reserves if maintained by the association.
(c) If 20 percent of the parcel owners petition the board for a level of financial reporting higher than that required by this section, the association shall duly notice and hold a meeting of members within 30 days of receipt of the petition for the purpose of voting on raising the level of reporting for that fiscal year. Upon approval of a majority of the total voting interests of the parcel owners, the association shall prepare or cause to be prepared, shall amend the budget or adopt a special assessment to pay for the financial report regardless of any provision to the contrary in the governing documents, and shall provide within 90 days of the meeting or the end of the fiscal year, whichever occurs later:
1. Compiled, reviewed, or audited financial statements, if the association is otherwise required to prepare a report of cash receipts and expenditures;
2. Reviewed or audited financial statements, if the association is otherwise required to prepare compiled financial statements; or
3. Audited financial statements if the association is otherwise required to prepare reviewed financial statements.
(d) If approved by a majority of the voting interests present at a properly called meeting of the association, an association may prepare or cause to be prepared:
1. A report of cash receipts and expenditures in lieu of a compiled, reviewed, or audited financial statement;
2. A report of cash receipts and expenditures or a compiled financial statement in lieu of a reviewed or audited financial statement; or
3. A report of cash receipts and expenditures, a compiled financial statement, or a reviewed financial statement in lieu of an audited financial statement.
An association may not prepare a financial statement pursuant to this paragraph for consecutive fiscal years.
(8) ASSOCIATION FUNDS; COMMINGLING.—
(a) All association funds held by a developer shall be maintained separately in the association’s name. Reserve and operating funds of the association shall not be commingled prior to turnover except the association may jointly invest reserve funds; however, such jointly invested funds must be accounted for separately.
(b) No developer in control of a homeowners’ association shall commingle any association funds with his or her funds or with the funds of any other homeowners’ association or community association.
(c) Association funds may not be used by a developer to defend a civil or criminal action, administrative proceeding, or arbitration proceeding that has been filed against the developer or directors appointed to the association board by the developer, even when the subject of the action or proceeding concerns the operation of the developer-controlled association.
(d) If an association collects a deposit from a member for any reason, including to pay for expenses that may be incurred as a result of construction on a member’s parcel, such funds must be maintained separately and may not be commingled with any other association funds. Upon completion of the member’s construction project or other reason for which the deposit was collected, the member may request an accounting from the association of his or her funds that were deposited, and the association must provide such accounting to the member within 7 days after receiving the member’s request. An association must remit payment of any unused funds to the member within 30 days after receiving notice that the member’s construction project, or other reason for which the deposit was collected, is complete.
(9) APPLICABILITY.—Sections 617.1601-617.1604 do not apply to a homeowners’ association in which the members have the inspection and copying rights set forth in this section.
(10) RECALL OF DIRECTORS.—
(a)1. Regardless of any provision to the contrary contained in the governing documents, subject to the provisions of s. 720.307 regarding transition of association control, any member of the board of directors may be recalled and removed from office with or without cause by a majority of the total voting interests.
2. When the governing documents, including the declaration, articles of incorporation, or bylaws, provide that only a specific class of members is entitled to elect a board director or directors, only that class of members may vote to recall those board directors so elected.
(b)1. Board directors may be recalled by an agreement in writing or by written ballot without a membership meeting. The agreement in writing or the written ballots, or a copy thereof, shall be served on the association by certified mail or by personal service in the manner authorized by chapter 48 and the Florida Rules of Civil Procedure.
2. The board shall duly notice and hold a meeting of the board within 5 full business days after receipt of the agreement in writing or written ballots. At the meeting, the board shall either certify the written ballots or written agreement to recall a director or directors of the board, in which case such director or directors shall be recalled effective immediately and shall turn over to the board within 5 full business days any and all records and property of the association in their possession, or proceed as described in paragraph (d).
3. When it is determined by the department pursuant to binding arbitration proceedings or the court in an action filed in a court of competent jurisdiction that an initial recall effort was defective, written recall agreements or written ballots used in the first recall effort and not found to be defective may be reused in one subsequent recall effort. However, in no event is a written agreement or written ballot valid for more than 120 days after it has been signed by the member.
4. Any rescission or revocation of a member’s written recall ballot or agreement must be in writing and, in order to be effective, must be delivered to the association before the association is served with the written recall agreements or ballots.
5. The agreement in writing or ballot shall list at least as many possible replacement directors as there are directors subject to the recall, when at least a majority of the board is sought to be recalled; the person executing the recall instrument may vote for as many replacement candidates as there are directors subject to the recall.
(c)1. If the declaration, articles of incorporation, or bylaws specifically provide, the members may also recall and remove a board director or directors by a vote taken at a meeting. If so provided in the governing documents, a special meeting of the members to recall a director or directors of the board of administration may be called by 10 percent of the voting interests giving notice of the meeting as required for a meeting of members, and the notice shall state the purpose of the meeting. Electronic transmission may not be used as a method of giving notice of a meeting called in whole or in part for this purpose.
2. The board shall duly notice and hold a board meeting within 5 full business days after the adjournment of the member meeting to recall one or more directors. At the meeting, the board shall certify the recall, in which case such member or members shall be recalled effective immediately and shall turn over to the board within 5 full business days any and all records and property of the association in their possession, or shall proceed as set forth in paragraph (d).
(d) If the board determines not to certify the written agreement or written ballots to recall a director or directors of the board or does not certify the recall by a vote at a meeting, the board shall, within 5 full business days after the meeting, file an action with a court of competent jurisdiction or file with the department a petition for binding arbitration under the applicable procedures in ss. 718.112(2)(l) and 718.1255 and the rules adopted thereunder. For the purposes of this section, the members who voted at the meeting or who executed the agreement in writing shall constitute one party under the petition for arbitration or in a court action. If the arbitrator or court certifies the recall as to any director or directors of the board, the recall will be effective upon the final order of the court or the mailing of the final order of arbitration to the association. The director or directors so recalled shall deliver to the board any and all records of the association in their possession within 5 full business days after the effective date of the recall.
(e) If a vacancy occurs on the board as a result of a recall and less than a majority of the board directors are removed, the vacancy may be filled by the affirmative vote of a majority of the remaining directors, notwithstanding any provision to the contrary contained in this subsection or in the association documents. If vacancies occur on the board as a result of a recall and a majority or more of the board directors are removed, the vacancies shall be filled by members voting in favor of the recall; if removal is at a meeting, any vacancies shall be filled by the members at the meeting. If the recall occurred by agreement in writing or by written ballot, members may vote for replacement directors in the same instrument in accordance with procedural rules adopted by the division, which rules need not be consistent with this subsection.
(f) If the board fails to duly notice and hold a board meeting within 5 full business days after service of an agreement in writing or within 5 full business days after the adjournment of the member recall meeting, the recall shall be deemed effective and the board directors so recalled shall immediately turn over to the board all records and property of the association.
(g) If the board fails to duly notice and hold the required meeting or fails to file the required petition or action, the parcel owner representative may file a petition or a court action under s. 718.1255 challenging the board’s failure to act. The petition or action must be filed within 60 days after the expiration of the applicable 5-full-business-day period. The review of a petition or action under this paragraph is limited to the sufficiency of service on the board and the facial validity of the written agreement or ballots filed.
(h) If a director who is removed fails to relinquish his or her office or turn over records as required under this section, the circuit court in the county where the association maintains its principal office may, upon the petition of the association, summarily order the director to relinquish his or her office and turn over all association records upon application of the association.
(i) The minutes of the board meeting at which the board decides whether to certify the recall are an official association record. The minutes must record the date and time of the meeting, the decision of the board, and the vote count taken on each board member subject to the recall. In addition, when the board decides not to certify the recall, as to each vote rejected, the minutes must identify the parcel number and the specific reason for each such rejection.
(j) When the recall of more than one board director is sought, the written agreement, ballot, or vote at a meeting shall provide for a separate vote for each board director sought to be recalled.
(k) A board member who has been recalled may file an action with a court of competent jurisdiction or a petition under ss. 718.112(2)(l) and 718.1255 and the rules adopted challenging the validity of the recall. The petition or action must be filed within 60 days after the recall is deemed certified. The association and the parcel owner representative shall be named as respondents.
(l) The division or a court of competent jurisdiction may not accept for filing a recall petition or action, whether filed under paragraph (b), paragraph (c), paragraph (g), or paragraph (k) and regardless of whether the recall was certified, when there are 60 or fewer days until the scheduled reelection of the board member sought to be recalled or when 60 or fewer days have not elapsed since the election of the board member sought to be recalled.
(11) WINDSTORM INSURANCE.—Windstorm insurance coverage for a group of no fewer than three communities created and operating under chapter 718, chapter 719, this chapter, or chapter 721 may be obtained and maintained for the communities if the insurance coverage is sufficient to cover an amount equal to the probable maximum loss for the communities for a 250-year windstorm event. Such probable maximum loss must be determined through the use of a competent model that has been accepted by the Florida Commission on Hurricane Loss Projection Methodology. Such insurance coverage is deemed adequate windstorm coverage for purposes of this chapter.
(12) COMPENSATION PROHIBITED.—A director, officer, or committee member of the association may not directly receive any salary or compensation from the association for the performance of duties as a director, officer, or committee member and may not in any other way benefit financially from service to the association. This subsection does not preclude:
(a) Participation by such person in a financial benefit accruing to all or a significant number of members as a result of actions lawfully taken by the board or a committee of which he or she is a member, including, but not limited to, routine maintenance, repair, or replacement of community assets.
(b) Reimbursement for out-of-pocket expenses incurred by such person on behalf of the association, subject to approval in accordance with procedures established by the association’s governing documents or, in the absence of such procedures, in accordance with an approval process established by the board.
(c) Any recovery of insurance proceeds derived from a policy of insurance maintained by the association for the benefit of its members.
(d) Any fee or compensation authorized in the governing documents.
(e) Any fee or compensation authorized in advance by a vote of a majority of the voting interests voting in person or by proxy at a meeting of the members.
(f) A developer or its representative from serving as a director, officer, or committee member of the association and benefiting financially from service to the association.
(13) DEBIT CARDS.—
(a) An association and its officers, directors, employees, and agents may not use a debit card issued in the name of the association, or billed directly to the association, for the payment of any association expenses.
(b) A person who uses a debit card issued in the name of the association, or billed directly to the association, for any expense that is not a lawful obligation of the association commits theft as provided under s. 812.014.
For the purposes of this subsection, the term “lawful obligation of the association” means an obligation that has been properly preapproved by the board and is reflected in the meeting minutes or the written budget.
(14) REQUIREMENT TO PROVIDE AN ACCOUNTING.—A parcel owner may make a written request to the board for a detailed accounting of any amounts he or she owes to the association related to the parcel, and the board shall provide such information within 15 business days after receipt of the written request. After a parcel owner makes such written request to the board, he or she may not request another detailed accounting for at least 90 calendar days. Failure by the board to respond within 15 business days to a written request for a detailed accounting constitutes a complete waiver of any outstanding fines of the person who requested such accounting which are more than 30 days past due and for which the association has not given prior written notice of the imposition of the fines.
(15) REQUIREMENT TO PROVIDE COPIES OF RULES AND COVENANTS.—
(a) Before October 1, 2024, an association shall provide a physical or digital copy of the association’s rules and covenants to every member of the association.
(b) An association shall provide a physical or digital copy of the association’s rules and covenants to every new member of the association.
(c) If an association’s rules or covenants are amended, the association must provide every member of the association with an updated copy of the amended rules or covenants. An association may adopt rules establishing standards for the manner of distribution and timeframe for providing copies of updated rules or covenants.
(d) The requirements of this subsection may be met by posting a complete copy of the association’s rules and covenants, or a direct link thereto, on the homepage of the association’s website if such website is accessible to the members of the association and the association sends notice to each member of the association of its intent to utilize the website for this purpose. Such notice must be sent in both of the following ways:
1. By electronic mail to any member of the association who has consented to receive notices by electronic transmission and provided an electronic mailing address to the association for that purpose.
2. By mail to all other members of the association at the address identified as the member’s mailing address in the official records of the association.
...It is clear that there are instances in which the Florida legislature will specifically provide for the award of "nominal damages" in other contexts. See, e.g., Fla. Stat. § 772.11 (providing that victim of theft may state a claim for "minimum damages in the amount of $200"); Fla. Stat. § 720.303(5)(b) (member of a homeowner's association may maintain an action to recover actual or "minimum damages" for association's willful failure to maintain records and to make records available for inspection and copying)....
...Greenacre Properties, Inc., appeals a final judgment in the amount of $9300 in favor of Dr. Radhakrishna K. Rao. We reverse because Dr. Rao was not an intended third-party beneficiary of the contract on which he sued; he was not entitled to damages under section 720.303(5), Florida Statutes (2000), against an entity that was not a homeowners' association; and he was not entitled to damages for lost income under a negligence theory when he had sustained no bodily injury or property damage....
...This request was apparently made as an indirect method to obtain discovery in the pending lawsuit between Dr. Rao and the Association. In November, Dr. Rao went to the offices of Greenacre Properties to review these records but was only permitted to review the "official records" of the Association as defined in section 720.303(4)....
...A HOMEOWNER IS NOT GENERALLY A THIRD-PARTY BENEFICIARY TO AN AGREEMENT BETWEEN A HOMEOWNERS' ASSOCIATION AND ITS MANAGEMENT COMPANY Chapter 720, Florida Statutes (2000), regulates homeowners' associations. Under this chapter, homeowners' associations have certain powers and duties, and must maintain certain records. See § 720.303....
...Accordingly, the trial court erred as a matter of law when it concluded that Greenacre Properties had breached a contractual duty that it owed to Dr. Rao. IV. GREENACRE PROPERTIES IS NOT A HOMEOWNERS' ASSOCIATION SUBJECT TO THE PENALTIES CONTAINED IN SECTION 720.303 The judgment recites that Dr. Rao is entitled to $500 in statutory damages for the failure of Greenacre Properties to comply with section 720.303(5). [5] Section 720.303(5) addresses a homeowners' association's obligation to maintain official records that are open and available for inspection by members of the association. Under section 720.303(5)(b), "a member who is denied access to official records is entitled to the actual damages or minimum damages for the association's willful failure to comply with this subsection." "Minimum damages" are defined as $50 per day for a maximum of ten days. At the outset, we must note that Dr. Rao did not plead a cause of action under the statute, and we can find no reference to section 720.303(5) in the complaint....
...gment as to procedural violations of the written agreement at the annual meeting; permanent mandatory injunctive relief declaring amendments void; misrepresentation and fraud; breach of fiduciary duty against the Board of Directors; and violation of section 720.303, Florida Statutes....
...An action under this rule shall not be subject to the requirements of rule 1.220. Committee Notes 1980 Adoption. The present rule relating to condominium associations [1.220(b)] is left intact but renumbered as rule 1.221. 2007 Amendment. Consistent with amendments to section 720.303(1), Florida Statutes, homeowners' associations have been added to the rule....
...In its opinion, the circuit court disagreed with the county court's conclusion that Respondents, John and Renee Binns, were not entitled to an award of damages based on the Association's failure to comply with the Binns's written record request pursuant to section 720.303(5), Florida Statutes (2006), because the Association's actions were not willful....
...d numerous defenses. After discovery, Developer filed a motion for summary judgment based on its contention that Association failed to meet the statutory condition precedent of approval by a majority of Association's voting interests, as required by section 720.303(1), Florida Statutes because the meeting where approval was given had not been properly noticed. After a hearing, the trial court entered summary final judgment in favor of Developer, concluding that proper "notice was not given to all residents of the [Association] entitled to vote." ASSOCIATION'S ACTIONS BEFORE COMMENCING THIS LITIGATION Section 720.303(1), Florida Statutes, requires that "before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of the maj...
...* * * (7) Adjournment.Unless the bylaws require otherwise, adjournment of an annual or special meeting to a different date, time, or place must be announced at that meeting before an adjournment is taken, or notice must be given of the new date, time, or place pursuant to s. 720.303(2)....
...But I try to keep it brief and concise. That's all I can tell you. I mean, it wasn't to deliberately hide something, if that's what you're asking. The minutes of all meetings of the members of an association are part of the official records of a homeowner's association. § 720.303(3),(4)(f), Fla....
...ed from fifteen to ten years. § 95.11(c)(3), Fla. Stat. (2008). Thus, if Association were required to obtain new approval from its members to bring suit, its refiled suit would only encompass defects within the last ten years. Developer claims that section 720.303(1), Florida Statutes, by requiring an association to obtain the affirmative approval of membership before commencing litigation in excess of $100,000, constitutes a statutory condition precedent to bringing suit....
...[2] Developer transferred ownership of the common areas to Association in a piecemeal fashion, with the last conveyance occurring on November 15, 2007. Developer had retained control of Association until September 13, 2005, when turnover of control of the Board of Directors occurred. [3] § 720.303(1), Fla....
Cited 2 times | Published | Supreme Court of Florida | 2013 WL 3466814
...Initially, we conclude that Lake-view Reserve is not without legal standing to present a claim for breach of the implied warranties of fitness and merchantability, as a homeowners association has the legal right to institute an action on behalf of its members for matters that concern the members’ common interest. See § 720.303(1), Fla....
...on behalf of all members concerning matters of common interest to the members....”); see also Homeowner’s Ass’n of Overlook, Inc. v. Seabrooke Homeowners’ Ass’n, Inc., 62 So.3d 667, 670 (Fla. 2d DCA 2011). This includes improvements for which the association is responsible. See § 720.303(1)....
...after it found that section 720.308(1)(b), Florida Statutes (2015), excused Centex from
funding the reserve while it funded the deficit in the HOA’s current operating expenses.
We disagree with the court’s interpretations of section 720.308 and find that section
720.303(6), Florida Statutes (2015), required Centex to continue funding the reserve
accounts once they were established....
...Rule of
Civil Procedure 1.420(a)(1). See also Fla. R. Civ. P. 1.250(b).
2
capital contributions to the HOA’s reserve accounts as required by sections 8.2 and 8.6(b)
of the declaration and subsections 720.303(6)(b),(d) and (f) of the Florida Statutes.
Centex contributed an initial $32,300 to the reserve funds in 2007....
...wrong reason.” Robertson v. State, 829 So. 2d 901, 906 (Fla. 2002) (emphasis added).
3
HOA’s budgets indicate that no reserves are being provided for by making a specific
declaration in conspicuous font. § 720.303(6)(c)(1.), Fla. Stat. If reserve funds are
provided for in the budget but no accounts are actually established, the statute requires
that the failure to fund reserves be indicated in the budgets again using a conspicuous
font. § 720.303(6)(c)(2.), Fla. Stat. The statute provides that the reserves may be reduced
following a meeting and vote. § 720.303(6)(f), Fla....
...expenses—it must excuse the
developer from paying the reserve contributions as well because reserve funds are
monies owed to the HOA. 5 Yet reading section 720.308(1)(b) to exhaust Centex’s funding
requirements creates a direct conflict with section 720.303(6), which requires reserve
accounts be funded once established or defunded according to a regular procedure with
specific notice to the homeowners. The legislature’s requirement that changes to funding
of the reserve accounts be conspicuously noted in the financial reports—reports which
must be made available to all homeowners pursuant to section 720.303(7)—evidences
an intent to keep homeowners aware of the state of reserve finances and to avoid allowing
developers and boards to surprise homeowners with unexpected special assessments.
Reading section 720.308(1)(b) not to address the reserve accounts—leaving the
original obligation to fund reserves in place—avoids a conflict with section 720.303(6) and
ensures that the purposes of the sections are met, given that section 720.303(6) was
specifically amended to provide for reserve accounts and avoid the need for special
5 See § 720.301(1), Fla....
...5th DCA 2009). The Florida Supreme
Court has specified that Florida courts have a duty to adopt constructions of statutes that
harmonize provisions within the same act. Knowles v. Beverly Enterprise-Fla., Inc., 898
So. 2d 1, 9 (Fla. 2004).
Section 720.303(6)(d) of the Homeowners’ Association Act requires an HOA to
fund reserve accounts once they have been established....
...separate account and to be used for “major maintenance, repair, or replacement of those
assets covered by the reserve budget . . . .” Although the statute allows an HOA that is
liable for deferred maintenance to forego creating reserve accounts, it requires that the
4See § 720.303(6)(d), Fla....
...ned or have their funding waived in the
manner provided in paragraph (f).”).
6
HOA’s budgets indicate that no reserves are being provided for by making a specific
declaration in conspicuous font. § 720.303(6)(c)(1.), Fla. Stat. If reserve funds are
provided for in the budget but no accounts are actually established, the statute requires
that the failure to fund reserves be indicated in the budgets again using a conspicuous
font. § 720.303(6)(c)(2.), Fla. Stat. The statute provides that the reserves may be reduced
following a meeting and vote. § 720.303(6)(f), Fla....
...expenses—it must excuse the
developer from paying the reserve contributions as well because reserve funds are
monies owed to the HOA. 5 Yet reading section 720.308(1)(b) to exhaust Centex’s funding
requirements creates a direct conflict with section 720.303(6), which requires reserve
accounts be funded once established or defunded according to a regular procedure with
specific notice to the homeowners. The legislature’s requirement that changes to funding
of the reserve accounts be conspicuously noted in the financial reports—reports which
must be made available to all homeowners pursuant to section 720.303(7)—evidences
an intent to keep homeowners aware of the state of reserve finances and to avoid allowing
developers and boards to surprise homeowners with unexpected special assessments.
Reading section 720.308(1)(b) not to address the reserve accounts—leaving the
original obligation to fund reserves in place—avoids a conflict with section 720.303(6) and
ensures that the purposes of the sections are met, given that section 720.303(6) was
specifically amended to provide for reserve accounts and avoid the need for special
5 See § 720.301(1), Fla....
...means a sum or sums of
money payable to the association, . . . which if not paid by the owner of a parcel, can
result in a lien against the parcel.”).
7
assessments. See Ch. 2007-173, Law of Fla. § 9. Moreover, it forces developers to
comply with section 720.303(6) by either paying the reserve funds or waiving them at a
proper meeting and noting the absence of reserve funds in a conspicuous location in the
financial reports....
...failure to follow proper procedures before waiving
funds).
Here, the declaration provides for reserve accounts, and Centex made an initial
contribution to the reserve fund in the amount of $32,300 before removing those funds.
Thus, under section 720.303(6), Centex is obligated to fund or maintain the reserves or
vote to reduce or eliminate them and provide notice in the HOA’s financial reports. See §
720.303(6)(d), Fla. Stat.
Centex argues, alternatively, that section 720.303(6) affects only the budgeting for
the reserves not the funding of such reserves. Although section 720.303(6) refers
specifically to “budgeting,” that section also speaks of “funding” and maintaining in
subsections (d) and (f)....
...vote of the members, and they provide
no support for treating the obligation to budget as completely distinct from the obligation
to fund.
The difficulty with Centex’s position is clear when considering the disclosure
requirements of subsection 720.303(6)(c). Subsection (c) requires notice to homeowners
when the budget does not provide funding for reserve accounts. § 720.303(6)(c), Fla.
Stat....
...ude a tally of what the reserve
accounts ought to contain. This interpretation is incorrect because the plain language of
subsection (c) requires the HOA to notify homeowners if it fails to fund the reserve
accounts established in the budget. See § 720.303(6)(c)(2.), Fla....
...If the allegations contained in the complaint are taken as true, it appears that the procedure to remove the Appellants from office did not comply with section 617.0701(4). Therefore, the trial court erred in dismissing count V because it stated a cause of action. Count VII Count VII alleged that the Association violated section 720.303(4), Florida Statutes (2003)....
...se of action. Accordingly, we conclude that the trial court erred in dismissing this count. Count VIII Count VIII asserted that the Association violated Article XXIII of the Bylaws. Article XXIII fundamentally emulates the requirements enumerated in section 720.303(4) regarding the preparation, filing and preservation of minutes....
...If Appellant’s allegations are taken as true, then as with count VII, the Appellants stated a cause of action, and the trial court erred when it dismissed count VIII of the second amended complaint. Count IX Count IX alleged that the Association violated section 720.303(5), Florida Statutes (2003)....
...or minimum damages for the association’s willful failure to comply with this subsection. The minimum damages are to be $50 per calendar day up to 10 days, the calculation to begin on the 11th business day after the receipt of the written request. Section 720.303(5)(b)....
...ests. Appellants requested statutory damages and an order requiring the Association to comply with the statute and provide the records for inspection. Therefore, if the allegations of the complaint are true, Appellants stated a cause of action under section 720.303(5). See Greenacre Props., Inc. v. Rao, 933 So.2d 19 (Fla. 2d DCA 2006) (cause of action would be maintainable against the homeowners association for a violation of 720.303(5))....
...It argues that the individual members of Overlook have a financial interest separate from that of the other members of Seabrooke and that Overlook has standing to bring the suit for declaratory relief on behalf of the Overlook members pursuant to Florida Rule of Civil Procedure 1.221 and section 720.303, Florida Statutes (2007)....
...Pritikin Ctr., Inc. v. Turnberry Isle Condo. Ass'n, 753 So.2d 798, 799 (Fla. 3d DCA 2000). The sole requirement for the bundling of a class is that the members of the association have a common interest regarding the common elements of the property. § 720.303(1); *671 Fla....
...We deny the *335 petition in part and grant the petition in part. The circuit court granted Whispering Lakes’ motion to stay on the basis that the Association failed to obtain the required approval of its members before initiating its litigation. See § 720.303(1), Fla....
...We deny the Association’s petition for writ of certiorari in part because the circuit court did not depart from the essential requirements of law in ruling that Whispering Lakes is a member of the Association and is therefore entitled to enforce the voting requirements of section 720.303(1). See Lake Forest Master Cmty. Ass’n v. Orlando Lake Forest Joint Venture, 10 So.3d 1187, 1196 (Fla. 5th DCA 2009) (holding that section 720.303(1) is “a ground for any aggrieved [association member to enjoin [an] [association from prosecuting [a] lawsuit”)....
...constituted a material breach and resulted in damages because the
Association was underfunded. However, this was a yearly obligation,
meaning the breaches and damages occurred yearly as well. Thus, this
cause of action accrued on a yearly basis.
The Association contends that section 720.303(1), Florida Statutes
(2020), applies and prevented the Association from bringing suit before
turnover by the Developer. See § 720.303(1) (“After control of the
association is obtained by members other than the developer, the
association may institute, maintain, settle, or appeal actions or hearings
in its name on behalf of all members concerning matters of common
interest to the members . . . .”). But section 720.303(1) does not apply to
this Declaration, as section 720.303(1) was enacted long after the
community was established, and the Declaration was recorded....
...Broward County; John Hurley, Judge; L.T. Case No. CONO-23-007731.
Gary Steinberg, Margate, pro se.
Mark D. Tinker and Brandon J. Tyler of Cole, Scott & Kissane, P.A.,
Tampa, for appellee.
PER CURIAM.
The issues raised in this appeal revolve around section 720.303, Florida
Statutes (2023), which “requires homeowners’ associations to maintain
their official records and to provide them to homeowners upon request.”
Pecchia v....
...ecords. He alleged that
he had made a request for specific records, and that his request was not
completely satisfied. Notably, the trial court did not point to any case
2
holding that suits brought pursuant to section 720.303, and seeking relief
for a homeowners association’s failure to provide requested official records
for inspection, are derivative in nature....
...And on appeal, the Association
does not cite to any such case. The trial court pointed to prior trial court
orders finding that the Homeowner’s prior suits were derivative, but those
suits did not involve an attempt to obtain official records under section
720.303....
...Upon
inspection of the records, Rembert concluded that she was denied
access to all the requested records. She ultimately filed an
amended statement of claim seeking a judgment against
Petitioners for failing to provide her timely access to records
pursuant to section 720.303(5), Florida Statutes (2021)....
... Estates Homeowners Association, Inc. (“Wayside”), and awarding
prevailing party attorney’s fees to Wayside. In particular, Pecchia
and Porter raise three primary arguments on appeal: 1) the court
erred when it found Wayside had sufficiently complied with the
requirements of section 720.303, Florida Statutes (2019), in
response to Pecchia’s and Porter’s requests to inspect the
association documents; 2) the court erred when it found Wayside
had sufficiently complied with its obligations to maintain the
common elements...
...homeowners, thus effectively “mooting” the need for an injunction;
and 3) the court erred when it awarded attorney’s fees to Wayside.
We reverse the portion of the court’s order finding that Wayside
complied with its statutory recordkeeping and inspection
requirements under section 720.303(4) and (5) and dismiss as
premature the portion of the appeal challenging the award of
prevailing party attorney’s fees to Wayside....
...Over the years, it
appeared to Pecchia and Porter that Wayside had lowered annual
assessments and spent less money on maintenance in the
community despite deteriorating property conditions. As a result,
they requested the official association records from Wayside
pursuant to section 720.303(5), including insurance policies for the
prior two years, and records reflecting maintenance expenditures
and upkeep of individual lots and common areas.
2
In November of 2019, through counsel, Pecchia and Porter
submitted a formal records request via certified mail to Wayside
pursuant to section 720.303(5), requesting that Wayside make the
official association records which it was required to maintain in
accordance with section 720.303(4) available for inspection within
ten days. Wayside signed for the certified letter on November 4,
2019, which meant the deadline for inspection under section
720.303(5) was November 19, 2019....
...secretary regarding the manner and date of the inspection. On
December 13, 2019, Wayside responded by providing photocopies
of some of the requested documents to Pecchia’s and Porter’s
counsel; however, numerous requested documents required to be
kept under section 720.303(4) were still missing....
...as the
insurance policies for 2017 and 2018, which had not been provided.
Pecchia and Porter sought the issuance of a mandatory injunction
requiring Wayside to produce the requested official records. They
additionally sought statutory damages under section 720.303(5)
and attorney’s fees pursuant to section 720.305, Florida Statutes
(2019).
This issue proceeded to a bench trial. At trial, the testimony
showed that Wayside had not complied with the original document
request within the ten-day time limit prescribed under section
720.303(5) and that the documents had not been properly
maintained pursuant to section 720.303(4)....
...request” and that the issue was now moot. In making its decision,
the court did not address the missing insurance policies, but it
specifically ruled that Wayside was not statutorily required to
provide the bank statements and canceled checks at issue, as
section 720.303(4) requires only that the association maintain
“accounting records.” The court explained that the “accounting
records” required to be kept under section 720.303(4) would
include “detailed records of receipts and expenditures, financial
statements, financial reports, ....
...statements of accounts, and
balances due,” and it ruled that bank statements and cancelled
checks are not included in the records required to be maintained.
Thus, the court found that Wayside had sufficiently complied with
the statutory requirements of sections 720.303(4) and (5) by
providing portions of its financial statements and records,
including some of its profit and loss statements, balance sheet
statements, account statements, bank statements and other
financial records even though many records and statements were
missing including numerous bank statements....
...ed of what the
legislature intends is by giving the generally accepted
construction, not only to the phraseology of an act but to the
manner in which it is punctuated.” Fla. State Racing Comm’n v.
Bourquardez, 42 So. 2d 87, 88 (Fla. 1949).
Section 720.303 requires homeowners’ associations to
maintain their official records and to provide them to homeowners
upon request. Specifically, section 720.303(4) enumerates an
5
extensive list of records which constitute the official records of the
association. Specific to this appeal, section 720.303(4)(j) provides
in relevant part that associations “shall maintain”:
The financial and accounting records of the
association, kept according to good accounting
practices....
...Accurate, itemized, and detailed records of all
receipts and expenditures.
...
3. All tax returns, financial statements, and financial
reports of the association.
4. Any other records that identify, measure, record, or
communicate financial information.
§ 720.303(4)(j), Fla. Stat. (2019). In addition, associations are
required to maintain “[a]ll of the association’s insurance policies or
a copy thereof, which policies must be retained for at least 7 years.”
§ 720.303(4)(h), Fla. Stat. (2019). Finally, associations are required
to maintain “[a]ll other written records of the association not
specifically included in this subsection which are related to the
operation of the association.” § 720.303(4)(n), Fla. Stat. (2019).
Subsection 720.303(5) requires associations to make their
official records available for inspection to all homeowners within
the association, and provides the following framework for the
inspection requirements imposed on the association:
The off...
...irements regarding
the location and timing for providing the documents. Id.
Associations may either provide copies of the documents or allow
inspection of the documents within ten business days of receipt of
a records request. Id.
Pursuant to section 720.303(5)(a), if an association fails to
provide access to its records within ten business days after it
receives a written request submitted by certified mail, there is a
rebuttable presumption that the association “willfully failed to
comply” with the inspection requirements therein. If the
association denies a homeowner access to its official records, the
homeowner “is entitled to the actual damages or minimum
damages for the association’s willful failure to comply with this
subsection.” § 720.303(5)(b), Fla. Stat. (2019). The minimum
damages established by subsection 720.303(5)(b) are $50 per
calendar day for up to ten days, or a total of $500 in statutory
damages for the failure to timely provide access to association
documents. Id. The calculation of damages begins on the 11th
business day after receipt of the written request. Id.
A.
We hold that the trial court erred in its interpretation of
section 720.303 when it ruled that Wayside had sufficiently
complied with the requirements of sections 720.303(4) and (5). As
Pecchia and Porter argue, the repeated usage of the word “shall”
in sections 720.303(4) and (5) signifies that there is no statutory
flexibility in an association’s obligations to maintain the records
provided under section 720.303(4) and to permit inspection in
conformity with section 720.303(5)....
...The mandatory nature of homeowners’ associations’ duties
to maintain and provide documents is further reinforced by the
implementation of a monetary penalty for the failure to provide
the documents starting on the eleventh business day after a
written request. § 720.303(5)(a)–(b), Fla. Stat. (2019). Immediately
following the subsection prescribing the time frame and manner in
which associations must make records available, section 720.303
contains two separate subsections which: 1) create a rebuttable
presumption that an association’s failure to timely provide access
to the records means its failure to comply with section 720.303(5)
was willful; and 2) establish statutory damages for the
association’s failure to timely provide access to its records. §
720.303(5)(a)–(b), Fla....
...initial request pointed
out this statutory mandate. Although Wayside finally provided
some (but not all ) of the requested documents, even as of the date
of trial, Wayside still had not complied with the document
production requirements set forth in section 720.303(5). As a
result, Wayside did not comply with its obligations to maintain and
permit inspection of the documents within the proper statutory
time limits.
Sections 720.303(4) and (5) do not provide for substantial
compliance. Rather, the language of the statute clearly provides
that a homeowners’ association “shall” 1) maintain all items
enumerated in 720.303(4) and 2) make them available to the
homeowners within ten business days upon request....
...illfully violated these
timing requirements and imposed the statutory penalty. 1 Thus,
the trial court erred in this regard.
1 We acknowledge Wayside’s argument on appeal that it did
not “willfully” fail to comply with the provisions of section
720.303(5), and thus, pursuant to section 720.303(5)(b), the trial
court was correct not to assess the statutory damages provided by
this subsection....
...However, the issue of whether Wayside’s failure to
9
B.
Pecchia and Porter next argue that the trial court erred in
denying their request for injunctive relief as moot, as Wayside
never made available the insurance policies requested under
section 720.303(5), which were required to be kept per section
720.303(4)(h)....
...The evidence at trial showed that although Wayside
had insurance, it failed to make available its insurance policies for
the years of 2017 and 2018 as requested. The trial court did not
appear to consider the missing insurance policies, nor did the court
mention them in its oral or written rulings.
Section 720.303(4)(h) expressly provides that the association
“shall maintain” as its official records “all of the association’s
insurance policies or a copy thereof, which policies must be
retained for at least 7 years.” As such, under section 720.303(5),
they should have been made available or provided to Pecchia and
Porter....
...t. Thus, the trial
court should have entered an injunction requiring Wayside to
provide the requested insurance policies.
C.
Finally, Pecchia and Porter argue on appeal that they were
entitled under sections 720.303(4) and 720.303(5) to any canceled
checks and bank statements showing Wayside’s payments for
repairs and maintenance on the association common property.
Pecchia and Porter requested these records so that they could
review the sufficiency of the association...
...comply was “willful” was not specifically raised below and was not
addressed by the trial court in its order. Further, the failure to
provide access to the records within the ten-day period created a
rebuttable presumption that Wayside willfully failed to comply
with 720.303(5). The record does not establish that Wayside
rebutted the presumption. Therefore, Pecchia and Porter would be
entitled to the damages provided by section 720.303(5)(b).
10
its canceled checks and bank statements because those documents
were not required to be kept as part of the accounting records per
section 720.303(4)....
...Pecchia and Porter
did not provide sufficient evidence or testimony to demonstrate the
existence of any other canceled checks that were not provided.
Thus, we only address the issue of the missing bank statements.
As stated previously, sections 720.303(4) and 720.303(5)
provide for strict compliance, not substantial compliance.
Substantial compliance is not applicable under chapter 720 where
the statutory language contains mandatory requirements. See
Dwork, 219 So. 3d at 858. Section 720.303(4)(j) requires the
association to maintain “financial and accounting records.” As
stated previously, the financial and accounting records must
include:
1....
...Accurate, itemized, and detailed records of all
receipts and expenditures.
...
3. All tax returns, financial statements, and
financial reports of the association.
4. Any other records that identify, measure, record,
or communicate financial information.
§ 720.303(4)(j)1., 3., & 4., Fla....
...g
records which a homeowners’ association is required to maintain.
Bank statements could be included in the definition of “[a]ccurate,
11
itemized, and detailed records of all receipts and expenditures”
under section 720.303(4)(j)1. Specifically, though, under
720.303(4)(j)3., bank statements fall within the ambit of “financial
statement[s],” and per 720.303(4)(j)4., they clearly constitute
“records that identify, measure, record, or communicate financial
information.” Thus, the financial and accounting records required
to be kept under section 720.303(4) must include the association’s
bank statements. Because section 720.303(5) provides for the
homeowner’s right to inspect all records required to be maintained
under section 720.303(4), Pecchia and Porter were entitled to
request and inspect Wayside’s bank statements....
...the appeal for lack of jurisdiction.
IV.
We reverse the portion of the trial court’s final judgment
finding Wayside sufficiently complied with its statutory
12
recordkeeping and inspection requirements under section 720.303,
and therefore, we reverse and remand for further proceedings
consistent with this opinion....
...3d DCA 1977) (holding that subsequent amendments to the Florida Condominium Act became incorporated into a declaration of condominium that adopted the "the provisions of the Condominium Act as presently existing, or as it may be amended from time to time.... ”). . § 720.303, Fla....
Published | Court of Appeals for the Eleventh Circuit
...To be sure, Florida law categorizes HOAs as not-
for-profit corporations. Fla. Stat. § 720.302. But that status does not
preclude them from engaging in business-like operations. To the
contrary, HOAs can collect assessments, manage budgets, enforce
rules, and maintain common areas. Id. § 720.303....
...g questions: 1. Is a noncharter county authorized to enact an ordinance which imposes upon homeowners' associations operating under Chapter 720 , Florida Statutes, more stringent or additional financial reporting requirements than those contained in section 720.303 (7), Florida Statutes? 2....
...s expressed its concern that homeowners' associations operate with minimal governmental oversight and that any such governmental regulation not constitute an unconstitutional impairment of contract. 11 Further evidence of this intent may be found in section 720.303 (1), Florida Statutes, describing the powers and duties of homeowners' associations and stating that "[t]he powers and duties of an association include those set forth in this chapter and, except as expressly limited or restricted in...
...at law or in equity, the levying of fines and the suspension of use rights; 14 the procedures to be used in homeowners' association meetings and elections; 15 prohibited clauses in association documents; 16 and a procedure for dispute resolution. 17 Section 720.303 (5), Florida Statutes, makes provision for the inspection and copying of official records of the homeowners' association....
...damages for the denial of access to official records. The statute also authorizes the association to adopt written rules regarding inspection of records and the fees which may be imposed for copying such records. With regard to financial reporting, section 720.303 (7), Florida Statutes, states: "The association shall prepare an annual financial report within 60 days after the close of the fiscal year....
...chapter 719, or chapter 721; or to any nonmandatory association formed under chapter 723." Section 720.302 (4), Fla. Stat. 11 See, Art. I , s. 10 , Fla. Const., stating that "[n]o bill . . . impairing the obligation of contracts shall be passed." 12 Section 720.303 , Fla....
Published | Florida 5th District Court of Appeal | 2016 WL 830440
...(“Association”).
Meritage contends, inter alia, that the judgment should be reversed as the trial court’s
ruling that the requirement of reserve accounts in the City Code of Winter Garden cannot
be waived creates an impermissible conflict with section 720.303(6)(f), Florida Statutes
(2008), which expressly grants homeowners associations the right to waive reserves....
...Meritage attended the October
21, 2008 meeting; accordingly, asserts Meritage, its attendance constituted a quorum of
the Board, as well as a quorum of the membership.
The Association disputes that reserves were properly waived pursuant to section
720.303(6)(f) at this October 21, 2008 board, as opposed to members, meeting. We
agree with the Association that in order to waive reserves pursuant to section
720.303(6)(f), it is the individual homeowners/unit owners, upon a majority vote at which
a quorum is present, that determines whether no reserves or less reserves than required
by section 720.303 shall go into effect for the upcoming budget year. We reach such
conclusion based on the plain language of section 720.303(6)(f), Florida Statutes (2008),
which states that it is only "[a]fter the turnover, [that] the developer may vote its voting
interest to waive or reduce the funding of reserves." See § 720.303(6)(f), Fla....
...e only to one budget year." (emphasis
added)). Indeed, Meritage, when it controlled the Association, was not even allowed to
vote to use reserves for purposes other than those for which they were intended, much
less waive reserves altogether. See § 720.303(6)(h), Fla....
...October 21, 2008
board meeting in which no homeowners of the community were present. Given the same,
Meritage was required to fund reserves pursuant to the City Code, as repeated in the
community's declaration, and as set forth in the budget. See § 720.303(6)(f), Fla....
...aive or
4
reduce the funding of reserves and no such result is achieved or a quorum is not present,
the reserves as included in the budget shall go into effect."). Consequently, the issue of
whether section 720.303(6)(f), Florida Statutes, conflicts with the City Code is not properly
before this Court, based on the particular facts of this case, as reserves were not properly
waived pursuant to section 720.303(6)(f), Florida Statutes (2008).
In all other respects, we affirm, finding no merit in Meritage's remaining arguments
on appeal, nor the Association’s argument on cross-appeal.
AFFIRMED.
PALMER and BERGER, JJ., an...
...of
all owners . . . ” in the affected area, as prescribed by section
73.021(4), Florida Statutes.
We grant Leon County’s petition for writ of certiorari. Despite
the general directions in section 73.021(4) for naming
indispensable parties, section 720.303(1), Florida Statutes,
provides in relevant part that “the [homeowners] association may
institute, maintain, settle, or appeal actions or hearings in its
name on behalf of all members concerning matters of common
interest to the members ....
...Accordingly, in the present case, we
conclude that by dismissing Leon County’s petition for failure to
join indispensable parties—namely, all one hundred or more of the
property owners—the circuit court departed from the essential
requirements of the law by failing to apply Section 720.303(1) and
4
rule 1.221, which would permit Lakeshore Homeowners’
Association, Inc., to be named as the proper party to defend against
an eminent domain proceeding on behalf of the individual
homeowners....
...upon Stein's fraud upon the court. The order's ultimate outcome was to dismiss Stein's claim against Riverwalk and Charles for tortious interference with advantageous business relationship, as well as Stein's claim against Riverwalk for violation of section 720.303(5), Florida Statutes, relating to record requests....
...upon Stein's fraud upon the court. The order's ultimate outcome was to dismiss Stein's claim against Riverwalk and Charles for tortious interference with advantageous business relationship, as well as Stein's claim against Riverwalk for violation of section 720.303(5), Florida Statutes, relating to record requests....
...in’s fraud upon the court.
The order’s ultimate outcome was to dismiss Stein’s claim against
Riverwalk and Charles for tortious interference with advantageous
business relationship, as well as Stein’s claim against Riverwalk for
violation of section 720.303(5), Florida Statutes, relating to record
requests....
...compel arbitration of the claims filed by Martinique at the Oasis
Neighborhood Association, Inc. (the Association). The Association sued
Lennar on behalf of its members for alleged construction defects to the front
exterior of the individually owned homes. See § 720.303(1), Fla....
...We decline to reach the additional claim, raised by Lennar, that the
individual homeowners, rather than the Association, are the proper parties
to this dispute; the record is not adequately developed, nor is the
Association’s standing to bring its cause of action under section 720.303(1)
and rule 1.221 directly before us on appeal from this nonfinal order....
...“concerning
matters of common interest to the members,” e.g., “the common areas,”
6
“structural components of a building,” or “other improvements for which the
association is responsible.” § 720.303(1)....
...rmative defense nor listed it as an issue for trial in the pre-trial stipulation. The Owner’s third affirmative defense provided in pertinent part: Specifically, the notice requirements of a board of directors meeting to consider assessments under § 720.303(2)(c)(2), Fla....
Published | Court of Appeals for the Eleventh Circuit
Argued: Jan 25, 2024
...Avado Brands, Inc., 187 F.3d 1271, 1278 (11th Cir. 1999); see
also United States ex rel. Rosales v. Amedisys N.C., L.L.C., 128 F.4th 548, 554 (4th
Cir. 2025) (same). Here, Joggers Run must publish the HOA Rules under Flor-
ida law. Fla. Stat. § 720.303(4)(b) (requiring homeowners’ associations with
100 or more parcels to publish governing documents)....
