Florida's 2024 legislative session has introduced several key changes that community association managers (CAMs) need to be aware of. Whether you’re a long-time CAM or just getting started, understanding these updates is essential for staying compliant and effectively managing your communities. Keep reading to learn about the latest updates, how they might impact your role, and gain insights on how to adapt.
Financial Management Adjustments
CAMs should pay close attention to budgeting for legal compliance and adjustments in assessments and dues. Below are some of the key things to keep in mind.
Budgeting for Legal Compliance
Under the new regulations, associations must incorporate budgeting for legal compliance. This includes ensuring funds are allocated for reviewing and updating governing documents and covering legal consultations to remain compliant. Specifically:
- Legal Fees: Set aside funds for attorney fees required to interpret and implement new laws.
- Document Updates: Allocate funds for producing and distributing updated rules and covenants to all association members.
- Training Costs: Budget for board and management training on new requirements.
Assessment and Dues Revisions
With HB 1021, comprehensive changes in assessment and dues management are introduced. CAMs must:
- Reassess Dues: Adjust dues structures to cover additional compliance costs.
- Transparent Reporting: Improve transparency by providing detailed financial disclosures.
- Collection Policy: Update policies to ensure timely collection of dues and manage delinquencies effectively.
Operational Procedures Update
Florida's 2024 legislative updates significantly impact how associations manage meetings, voting procedures, maintenance, and repairs. These adjustments are intended to streamline operations and enhance transparency.
Meeting Protocols and Voting Procedures
Under the new legislation, HOAs are required to maintain stricter protocols during board meetings. Meeting agendas must now be posted online at least 48 hours in advance to ensure transparency. Failure to do so could lead to penalties. Additionally, electronic voting is encouraged to facilitate member participation, and detailed voting records must be maintained for at least one year.
Quorums have also seen adjustments. For major decisions, such as budget approvals, a higher quorum is now necessary. This ensures that major decisions reflect the majority's views. In cases of electronic voting, secure platforms must be used to avoid fraud. Regular auditing of these procedures is recommended to maintain integrity.
Maintenance and Repair Policies
Changes to maintenance and repair policies have been enacted to ensure better accountability and efficiency. Associations are now mandated to conduct annual inspections of common areas and publish a maintenance schedule to keep members informed. This schedule needs to be accessible online for easy member reference.
Financial transparency is critical; thus, all repair expenses must be documented and audited quarterly. In emergencies, a swift response protocol must be in place, designating roles and responsibilities clearly. Non-compliance with these policies can lead to sanctions, emphasizing the need for adherence.
For budgetary purposes, HOAs must set aside funds specifically for unexpected repairs, ensuring financial stability.
Insurance and Liability Considerations
Due to the state's unique climate, thorough planning and adequate insurance coverage are crucial. Florida House Bill 1203offers new insights into HOA's insurance obligations.
Types of Essential Coverages
- Windstorm Insurance:
- Covers damage from hurricanes and strong winds.
- Essential for safeguarding the property against Florida's severe weather.
- General Liability Insurance:
- Protects against legal claims resulting from injuries or property damage within common areas.
- Covers legal fees and damages.
- Property Insurance:
- Covers damages to buildings and common areas.
- Important for repairing or rebuilding community assets.
Record-Keeping and Documentation
CAMs must ensure meticulous record-keeping and prioritize data protection to comply with the new legal requirements.
Transparency in Documentation
Managers must now maintain comprehensive documentation, including meeting minutes, financial statements, and governing documents. These records ensure accountability and are essential for audits and member inquiries.
In addition, CAMs face new requirements like documenting their duties and hours. Such transparency not only builds trust but also aids members in understanding the association's management activities. Non-compliance can lead to penalties.
Data Security and Privacy Requirements
With the increase in digital documentation, data security has become a major concern. The new laws require community association managers to implement robust security measures to protect sensitive information. This includes encrypting digital records and ensuring secure storage solutions. Managers must educate themselves on cybersecurity best practices. They should regularly update software, employ strong passwords, and restrict access to confidential data.
Dispute Resolution and Legal Remedies
The following information can assist CAMs in managing the complexities of disputes and legal remedies.
Navigating Conflicts Post-Legislation
With the recent changes, CAMs must recognize specific conflict areas that are likely to arise. For instance, the new requirements under HB 1021 and HB 1203 introduce governance and operational modifications that homeowners and managers must adhere to.
CAMs should now focus on mediation and arbitration as primary tools for dispute resolution. These methods offer structured environments where conflicts can be resolved without resorting to litigation, which is costly and time-consuming.
Legal Support and Representation Options
Given the legislative changes, securing appropriate legal support has become more important for associations. CAMs should seek consultation from qualified attorneys who specialize in community associations.
Training and Resources for Managers
CAMs in Florida must stay current with industry standards and regulations. Licensing and ongoing education are crucial components.
Required Licensing:
To manage a community association in Florida, individuals need a valid license. The CAM designation is mandatory for anyone performing management services when the association has more than 10 units or an annual budget exceeding a defined amount.
Continuing Education:
Every licensed manager must complete 15 hours of continuing education during each licensing period. This requirement ensures that managers are updated on current laws and best practices.
Training Programs:
Professional development programs, such as the CFCAM Educational Program, provide comprehensive training. They address areas that are not fully covered by state requirements, helping managers to exceed association expectations.
Regulatory Updates:
The Legislative Council of Community Association Managers regularly meets to update regulatory requirements. Staying informed about these updates is vital for compliance and professional growth.
RealTalk:
RealManage CAMs have access to continuing education opportunities through our RealTalk program which includes webinars with industry experts, trainings, and other resources to ensure CAMs have the tools they need to do their jobs efficiently and effectively.
Additional Resources:
Managers should also seek out additional resources and tools to enhance their skills. Industry publications, online courses, and network groups can provide valuable insights and support.
Understanding the Law Allows You to Manage Your Communities with Confidence
Staying informed and adaptable is key to navigating these shifts successfully. Remember, proactive engagement with these updates not only ensures compliance but also enhances the overall management of your community.
At RealManage, we understand the importance of staying current with legal changes, which is why our CAMs receive ongoing training and support. Our commitment to continuous education helps our team stay at the forefront of industry developments and provide board members with the peace of mind that their community is in capable hands.
