LCAM Study Deck #2 Flashcards
1
Q
A condominium unit owner discovered water covering the floor of the entire unit. The source of the flood is a leak from the unit’s refrigerator. The damages should be covered by
A
the unit owner’s insurance.
2
Q
Rather than acquiring a unit, the buyer of a cooperative apartment
A
buys a unit in cooperation with other owners.
3
Q
If the declaration of condominium does not state a procedure for authorizing material alteration to common elements, the construction of new tennis courts would need to be approved by
A
3/4 of the total voting interests in the association.
If the documents provide for alterations or additions, but do not set forth the manner, then at least 75% of the total voting interests in the association must agree to the alteration.
4
Q
A condominium unit owner received notice of the board’s intent to levy a fine for a violation. If the fine committee does
A
not agree with the fine, the fine cannot be levied.
At the hearing, the committee must afford basic due process and allow the accused to be heard, state their case, and challenge evidence against them. The committee must then either “confirm” or “reject” the board’s intent to levy a fine. If the committee rejects the fine, the matter is over.
5
Q
A homeowners’ association board must get competitive bids for contracts which will cost more than
A
If a contract for the purchase, lease, or rental of materials or equipment or for the provision of services requires a payment that exceeds 10% of the HOA’s budget including reserves, then the HOA must get competitive bids.
6
Q
What is the maximum number of consecutive years a condominium board member may serve on the board, unless approved the membership?
A
8 yrs : The Florida Condominium Act provides that a board member may not serve more than 8 consecutive years unless approved by an affirmative vote of unit owners representing two-thirds of all votes cast in the election, or unless there are not enough eligible candidates to fill the vacancies on the board at the time of the vacancy. Unless otherwise stated in the association bylaws, the statute applies to terms that began on or after July 1, 2018.
7
Q
The formal components of cooperative documents do NOT include
A
the Florida Statutes: While Florida Statutes are the ultimate authority, they are not part of a cooperative’s governing documents.
8
Q
In handling an insurance claim in which property damages are substantial, who is the LEAST likely person for the board to contact first?
A
the original developer: The condominium manager and insurance agent are definitely people to contact, and the association’s attorney may also need to become involved. The original developer is the least likely person to call, as they have no direct claim responsibility.
9
Q
What items must be identified in a contract between a maintenance or management company and a condominium association to be enforceable?
A
services, obligations and responsibilities of the person(s) employed to provide the service ~
The agreement or contract must specify the obligations and responsibilities of the manager as well as the cost of each service, the frequency with which it is to be delivered, the number of persons employed to provide the service, and any relationship between the management and the association. If these are not set forth, then the contract cannot be enforced.
10
Q
The declaration of condominium has parking spaces designated as limited common elements assigned to specific condominium units. In this case, unit owners have exclusive rights to their parking space because
A
a limited common element is reserved for the exclusive use of the unit to which it is assigned
Limited common elements are designated in the governing documents as being a portion of the common elements that are for the exclusive use of one or more, but not all, of the owners.
11
Q
In condominiums, the second notice of the annual meeting must be mailed to each owner at least how many days prior to the date of the meeting?
A
14 days - The first notice is sent 60 days before the meeting; the second notice is sent 14 days before.
12
Q
What is the possible action the Department of Business and Professional Regulations could take if a board director knowingly violated the Condominium or Cooperative Acts? The board director
A
may be fined and charged criminally.
13
Q
The scope of authority of the board of directors is NOT specifically provided in the
A
annual meeting minutes
The Florida Administrative Code, Not-for-Profit Corporation Act, and association governing documents all define the powers and responsibilities of the Board of Directors. The minutes of the annual meeting do not.
14
Q
According to Florida Statutes, what alternative does a Homeowners’ Association whose membership exceeds 100 members have to giving notice of a board meeting?
A
providing a predetermined schedule of board meetings
Bylaws may dispense with a notice if the members are informed of regularly scheduled meetings. For example, notice may not be required if the board meets on the second Tuesday of each month at 3:00 p.m. and if owners are so informed.
15
Q
What form of insurance would condominium associations NOT purchase?
A
performance bond - The association may require performance bonds from contractors in case they fail to complete a job.. They are purchased by the contractors.
16
Q
If provided for in the governing documents, when an owner of a condominium unit is over 30 days late in paying an assessment, the association has the power to
A
levy a late fee not to exceed the greater of $25.00 or 5% of each delinquent assessment.
If the documents state this, a late fee of $25 or 5% of the delinquent assessment may be charged, in addition to an annual interest of 18%.
17
Q
In a condominium association, at the moment of turnover of control from the developer to the unit owners, statutory warranties
A
continue as stated in chapter 718, Florida Statutes.
Regarding the roof and structural components of a building, other improvements, and mechanical, electrical, and plumbing elements serving improvements or a building, except for mechanical elements serving only one unit, the developer must provide a warranty for a period beginning with the completion of construction of each building or improvement, and continuing for three years thereafter or one year after owners other than the developer obtain control of the association, whichever occurs last, but in no event more than five years.
18
Q
A valid claim of lien on a condominium unit must provide the
A
legal description of the property, name of the owner, assessment amount and date due, and signature of an agent of the association.
19
Q
Each person that is required to be covered by a fidelity bond in a cooperative association must be bonded for at least
A
the maximum total amount of money in the association account.
20
Q
As per the Florida Administrative Code, which of the following is NOT required on a meeting agenda?
A
full disclosure of management and financial reports
The agenda outlines the meeting order and procedures, identifying the issue(s) that will be discussed at the meeting. Each meeting’s agenda should list the time, date and location and have a line to be filled in for the time the meeting begins and adjourns. A full disclosure of management and financial reports would not be included.
21
Q
What should happen in the event of a vacancy among officers in an association?
A
The successor may be appointed at the next board meeting.
Vacancies can and must be filled by appointment, even when a quorum of members on the Board does not exist. If the association fails to fill vacancies on the Board, a unit owner may petition the circuit court for a receiver to be appointed to manage the affairs of the association.
22
Q
What is NOT required when a condominium unit owner requests approval for an electric or natural gas vehicle charging station?
A
The charging station must be approved by owners using adjacent parking spaces
Per Florida Statute, owners have the right to install an electric or natural gas vehicle charging station within the boundaries of their limited common element parking area.
23
Q
An association has two low-rise buildings, three tower buildings (all buildings created as separate condominiums) and a group of eight villas created as a separate single condominium. According to the Condominium Act, how many budgets are required for the subject community?
A
one budget for the association and additional budgets for each condominium operated by the association
A multi-condominium association must maintain separate accounting records for itself and for each condominium it operates. In this case, the association would need seven separate budgets, six for the buildings and one for the association.
24
Q
In a condominium, the rights and obligations implicit to the ownership of a unit are
A
appurtenances to the unit
Ownership of a condominium unit includes “appurtenances,” meaning rights which are attached to the unit and pass with the unit upon its sale. A plain English definition of the term means “connected to.”
25
In accordance with part VII of chapter 468, Florida Statutes, an 80-unit homeowners' association employs a maintenance coordinator who supervises the daily maintenance of the property. The maintenance coordinator
does not need to be licensed as a community association manager
A person who is charged only with performing the maintenance of a community association and who does not assist in any management services is not required to be licensed.
26
A condominium associations' initial corporate structure is constituted in the
articles of incorporation
The Articles of Incorporation provide the framework for the organization of the association and define its membership and the voting rights of the members. The term Articles of Incorporation includes the original document creating the association and all amendments to it, and any other documents that define the existing form, membership, and responsibilities of the association.
27
First notice of the annual election of a condominium board of directors must be mailed or delivered to all owners not less than
60 days before a scheduled election, the association must mail, hand-deliver, or electronically transmit to each unit owner entitled to a vote, a first notice of the date of the election.
28
Florida Statues 720 are for which type of board - condos, HOA or cooperative
For HOA's: the purpose of this chapter is to give statutory recognition to corporations not for profit that operate residential communities in this state, to provide procedures for operating homeowners’ associations, and to protect the rights of association members without unduly impairing the ability of such associations to perform their functions.
29
What are Chapters 718 & 719 of Florida Statues for
Chapter 718 is for condos, Chapter 719 is for cooperatives
30
How may the requirements for reviewed, compiled or audited financial statements be annually waived in a condominium
by a majority vote at a duly called membership meeting
A majority vote of a properly called meeting of the association’s membership must be obtained in order to waive down the year-end financial reporting requirement. This means that a quorum of unit owners must be present at the meeting (either in person or by proxy) and at least 51% of those owners present must vote to waive down the requirement. Unless the bylaws provide for a lower threshold, the quorum for a condominium association members' meeting is a majority of the total voting interests in the association.
31
Reserve cash accounts in condominium associations are funded
at the same frequency the assessments are due.
The total amount of reserves needed is what determines how much monthly or quarterly assessments increase. The reserves must be funded at the same frequency as assessments are due from owners.
32
The chair of the financial committee of an association managed to borrow funds from a local bank to pay for improving the gym. The chairperson had the right to commit to this loan on behalf of the association
only with the approval of board of the directors
A committee member may act only on behalf of the board of directors and with their approval
33
A condominium unit owner discovered water covering the floor of the entire unit. The source of the flood is a leak from the unit's refrigerator. The damages should be covered by
Unit Owner's Insurance
Unit owners are responsible for the cost of reconstruction of any portions of the condominium property for which they are required to have property insurance, or for which they are responsible as per the documents. Floor coverings within units are excluded by the association's fire and casualty insurance.
34
Rather than acquiring a unit, the buyer of a cooperative apartment
purchases shares in the corporation.
Cooperative means that form of ownership of real property wherein legal title is vested in a corporation or other entity. The units and common areas are owned by a corporation; residents own the shares in that corporation.
35
If the declaration of condominium does not state a procedure for authorizing material alteration to common elements, the construction of new tennis courts would need to be approved by
3/4 of the total voting interests in the association
If the documents provide for alterations or additions, but do not set forth the manner, then at least 75% of the total voting interests in the association must agree to the alteration.
36
A condominium unit owner received notice of the board's intent to levy a fine for a violation. If the fine committee does
not agree with the fine, the fine cannot be levied
At the hearing, the committee must afford basic due process and allow the accused to be heard, state their case, and challenge evidence against them. The committee must then either "confirm" or "reject" the board's intent to levy a fine. If the committee rejects the fine, the matter is over.
37
A homeowners' association board must get competitive bids for contracts which will cost more than
10% of the total annual budget of the association including reserves
If a contract for the purchase, lease, or rental of materials or equipment or for the provision of services requires a payment that exceeds 10% of the HOA's budget including reserves, then the HOA must get competitive bids.
38
What is the maximum number of consecutive years a condominium board member may serve on the board, unless approved the membership?
8 years
The Florida Condominium Act provides that a board member may not serve more than 8 consecutive years unless approved by an affirmative vote of unit owners representing two-thirds of all votes cast in the election, or unless there are not enough eligible candidates to fill the vacancies on the board at the time of the vacancy. Unless otherwise stated in the association bylaws, the statute applies to terms that began on or after July 1, 2018.
39
The formal components of cooperative documents do NOT include
While Florida Statutes are the ultimate authority, they are not part of a cooperative's governing documents.
Cooperatives do have bylaws and articles of incorporation
40
What items must be identified in a contract between a maintenance or management company and a condominium association to be enforceable?
services, obligations and responsibilities of the person(s) employed to provide the service
The agreement or contract must specify the obligations and responsibilities of the manager as well as the cost of each service, the frequency with which it is to be delivered, the number of persons employed to provide the service, and any relationship between the management and the association. If these are not set forth, then the contract cannot be enforced.
41
The declaration of condominium has parking spaces designated as limited common elements assigned to specific condominium units. In this case, unit owners have exclusive rights to their parking space because
a limited common element is reserved for the exclusive use of the unit to which it is assigned
Limited common elements are designated in the governing documents as being a portion of the common elements that are for the exclusive use of one or more, but not all, of the owners.
42
In condominiums, the second notice of the annual meeting must be mailed to each owner at least how many days prior to the date of the meeting?
14 days
43
condo and HOA annual and special meetings must comply with the community's
The bylaws
The bylaws provide board members with the criteria they must follow, such as the appropriate advance notice, the required quorum, and proper voting procedures.
44
What is the possible action the Department of Business and Professional Regulations could take if a board director knowingly violated the Condominium or Cooperative Acts? The director
may be fined and charged criminally.
45
What form of insurance would condominium associations NOT purchase?
Performance Bond Insurance - The association may require performance bonds from contractors in case they fail to complete a job.. They are purchased by the contractors.
46
If provided for in the governing documents, when an owner of a condominium unit is over 30 days late in paying an assessment, the association has the power to
levy a late fee not to exceed the greater of $25.00 or 5% of each delinquent assessment.
If the documents state this, a late fee of $25 or 5% of the delinquent assessment may be charged, in addition to an annual interest of 18%.
47
In a condominium association, at the moment of turnover of control from the developer to the unit owners, statutory warranties
continue as stated in chapter 718, Florida Statutes.
Regarding the roof and structural components of a building, other improvements, and mechanical, electrical, and plumbing elements serving improvements or a building, except for mechanical elements serving only one unit, the developer must provide a warranty for a period beginning with the completion of construction of each building or improvement, and continuing for three years thereafter or one year after owners other than the developer obtain control of the association, whichever occurs last, but in no event more than five years.
48
A valid claim of lien on a condominium unit must provide the
legal description of the property, name of the owner, assessment amount and date due, and signature of an agent of the association.
49
Each person that is required to be covered by a fidelity bond in a cooperative association must be bonded for at least
the maximum total amount of money in the association account.
50
As per the Florida Administrative Code, which of the following is NOT required on a meeting agenda?
full disclosure of management and financial reports
The agenda outlines the meeting order and procedures, identifying the issue(s) that will be discussed at the meeting. Each meeting's agenda should list the time, date and location and have a line to be filled in for the time the meeting begins and adjourns. A full disclosure of management and financial reports would not be included.
51
What should happen in the event of a vacancy among officers in an association?
The successor may be appointed at the next board meeting
Vacancies can and must be filled by appointment, even when a quorum of members on the Board does not exist. If the association fails to fill vacancies on the Board, a unit owner may petition the circuit court for a receiver to be appointed to manage the affairs of the association.
52
What is NOT required when a condominium unit owner requests approval for an electric or natural gas vehicle charging station?
the charging station must be approved by owners using adjacent parking spaces
Per Florida Statute, owners have the right to install an electric or natural gas vehicle charging station within the boundaries of their limited common element parking area.
53
An association has two low-rise buildings, three tower buildings (all buildings created as separate condominiums) and a group of eight villas created as a separate single condominium. According to the Condominium Act, how many budgets are required for the subject community?
A multi-condominium association must maintain separate accounting records for itself and for each condominium it operates. In this case, the association would need seven separate budgets, six for the buildings and one for the association.
Correct
54
In a condominium, the rights and obligations implicit to the ownership of a unit are
Ownership of a condominium unit includes “appurtenances,” meaning rights which are attached to the unit and pass with the unit upon its sale. A plain English definition of the term means “connected to.”
55
In accordance with part VII of chapter 468, Florida Statutes, an 80-unit homeowners' association employs a maintenance coordinator who supervises the daily maintenance of the property. The maintenance coordinator
does not need to be licensed as a community association manager
A person who is charged only with performing the maintenance of a community association and who does not assist in any management services is not required to be licensed
56
A condominium associations' initial corporate structure is constituted in the
articles of incorporation.
57
First notice of the annual election of a condominium board of directors must be mailed or delivered to all owners not less than
60 days before the scheduled election
At least 60 days before a scheduled election, the association must mail, hand-deliver, or electronically transmit to each unit owner entitled to a vote, a first notice of the date of the election.
58
Which official records are NOT required for inspection in a condominium or cooperative association?
bylaws of the association
roster of owners with current addresses
proxies relating to most recent election meeting
criminal background check of residents is NOT required
59
To cover insurance deductibles, a condominium association may obtain needed funds
Deductibles may be paid by special assessment if necessary. An association with large deductibles might consider establishing a "reserve for insurance" to cover deductibles.
60
Email may be used as a means of communication by board members,
Board members may communicate about board matters by email but may NOT cast a vote on an association matter via email.
61
Which regulation provides the procedures for obtaining a community association manager's license, standards of professional conduct and renewal provisions?
The requirements for licensure and scope of duties are set forth in the Florida Administrative Code and Chapter 468, Part VIII.
62
Where can the agenda and notice requirements for membership meetings of a homeowners' association be found?
in the bylaws
63
Where can the restrictions and covenants that establish the basic rights and responsibilities in a condominium be found?
Declarations
The covenants and restrictions for a condominium are established when the Declaration of Condominium is filed. It is the document that sets forth the formal regulations for all of the property in a residential community.
64
Upon renewal of a cooperative unit’s lease by the same lessee, under the renewal clause of their lease, the association may
If the lease or sublease is a renewal of a lease or sublease with the same lessee or sublessee, NO transfer fee may be charged.
65
What Florida Statute chapter governs timesharing or interval ownership associations?
The Florida Statute that governs timeshares is FS 721.
66
If a unit owner is more than 90 days overdue in paying assessments, the condominium association may withhold from the owner the right to
Vote at the annual meeting
Voting rights may be denied to an owner who is more than 90 days delinquent in assessments. The owner may also be prohibited from using the common elements but cannot be denied a parking space or utilities. He or she can still attend board meetings.
67
If NOT approved by a majority vote at a duly called meeting of the association, reserve accounts may be utilized for
Reserve funds shall remain in the reserve accounts, and may be used only for authorized reserve expenditures unless their use for other purposes is approved by a majority vote (in-person or by proxy) at a duly called meeting of the association.
68
In condominium associations, a notice of a budget meeting must include a copy of
the proposed budget
69
A party is suing an association to abide by the Condominium Act. In a mediation or arbitration action, the winning party is
For meetings where the budget will be considered, members must receive 14 days' notice and a copy of the proposed budget.
70
After receiving a request for budget reconsideration, how many days does the board of a condominium have to conduct a special meeting of the unit owners?
The Board must call a special meeting within 60 days to reconsider the budget. If a board adopts a budget which increases assessments more than 15 percent over the prior year's assessments, the Condominium Act provides that 10 percent of the voting interests are entitled to petition the board to call a special unit owner meeting to reconsider and enact a new budget.
Correct
71
How many days after concluding a contract does a buyer of a timeshare have to cancel without any penalty or obligation?
All contracts for sale of timeshares must include the following language: "You may cancel this contract without any penalty or obligation within 10 calendar days after the date you sign this contract or the date on which you receive the last of all documents required to be given to you pursuant to section 721.07(6), Florida Statutes, whichever is later.”
72
A 50-unit condominium had a total of $275,000 in annual revenues. Unless waived, what type of financial statement must be provided to the members?
Condominium associations with annual revenues of $150,000 to less than $300,000 must file a compiled financial statement.
73
When does an amendment to the condominium bylaws become effective?
If an amendment is adopted, then it must be recorded in the county records. The amendment becomes effective after it has been adopted and recorded.
74
A party is suing an association to abide by the Condominium Act. In a mediation or arbitration action, the winning party is
The prevailing party in an arbitration proceeding may be awarded the costs of the arbitration and reasonable attorney fees in an amount determined by the arbitrator. Such an award will include the costs and reasonable attorney fees incurred in the arbitration proceeding as well as the costs and reasonable attorney fees incurred in preparing for and attending any scheduled mediation.
75
A committee CANNOT be appointed by the board of directors of a homeowners' association for which intent?
Amendments to the bylaws always require a vote by the association members, usually at the Annual Meeting. The bylaws state the percentage required for the amendment to be passed. Unlike condominium law, the Florida Homeowners' Association Act does not spell out any specific election procedures and restrictions to appoint a committee for nominating a slate of candidates for the election of officers.
76
A condominium unit owner leases his unit from January through April. The lessee has reserved the BBQ area to host a special event in March. The unit owner also wants to use the BBQ area the same day. Can the unit owner and the lessee both have their event at the BBQ area?
No, when his/her unit is rented, the unit owner's rights to use the common elements are transferred to the tenant.
77
After getting a written request from an owner, a condominium's, HOA's or cooperative's official records must be made available within
Records must be made available within ten business days per Florida Statutes.
78
Which word best defines the relationship between the homeowners' association and the Board of Directors?
The Board of Directors has a fiduciary responsibility to the community to administer the association in the best possible way and to protect the assets of the community.
79
The Board of Directors has a fiduciary responsibility to the community to administer the association in the best possible way and to protect the assets of the community.
declaration of condominium
80
A condominium's accounting records created in 2021 must be maintained until at least
7 years so 2028
81
When is a condominium formally created?
The condominium is established when the developer records the Declaration of Condominium in the county where the condominium is to be built.
82
An uncontested recall of directors in a condominium or cooperative is effective within
5 business days
The board must notice and hold a board meeting within five (5) full business days after the adjournment of the unit owner meeting to recall one or more board members
83
While applying pesticides to the landscaped areas of the premises, a community manager was asked by a few residents to treat their units as well. The manager
Should decline to treat the unit - It is acceptable for an owner to spray their own unit. However, if this is anyone other than the owner, the person must be licensed by the State. Association employees may perform pest control in the common areas but not in an owner's unit.
84
An election can be rendered null and void in a Condominium association if ballots
do not contain a signature line and unit identification number
85
A corporation began conducting official operations on July 15 of this year. What is the deadline for filing an annual report with the Department of State?
May 1st Next Year
Each community association must file an annual report with the Florida Department of State between January 1st and May 1st of each year. May has already passed when the corporation (or association) began doing business, so it will file the following year on or before May 1st.
86
Official records of an association include
insurance policies
Current insurance policies must be kept as part of the official records. They do not have to be kept permanently, like some other official records, but must be on file and available to owners.
87
As per the Florida condominium law, how many days after a meeting is adjourned to a later date will the proxies still be valid?
90 days -
Proxies are good for 90 days after the date a meeting is first called
88
An absent member of the board of directors of a condominium or cooperative association may take part in a meeting by telephone, and that member's vote is valid if
a telephone speaker is used
A director can participate in a board meeting by telephone as long as there is a speaker phone in the meeting place and all of the other directors and the members in the audience can hear both sides of the conversation
89
A community association formed as a not-for-profit corporation is
required to file an annual income tax return
Although the community association may not have to pay any taxes, it is still required to file an annual income tax return
90
Unit owners of a condominium or cooperative do NOT have the right to
determine the frequency and length of their comments on agenda items
Unless otherwise specified, all Cooperative or Condominium unit owners have the right to attend and participate regarding any item on the agenda. The Board may adopt rules to limit the time a member may speak and may require members who wish to speak to advise the committee of their intention in writing before the meeting
91
When preparing their new annual budget, the board of directors of a condominium containing two buildings estimates the cost of replacing the roof of each building at $7,000. A reserve line category for roofs in this association's budget
must be included because roof replacement is a mandatory reserve item, regardless of cost, and may either combine the costs of the roofs of the two buildings or list them separately
The Board of Directors must present members with a budget that includes reserves for roofing, even if the members choose not to fund reserves. The total amount is normally all that is included, but it can be broken down into the amounts for specific buildings if desired
92
The Board of Directors at Allington Condominium Association proposed a budget for the coming year that is 200% of the assessment from the previous year. To calculate if the members of the association can petition for reconsideration of the budget, which item should NOT be included to establish the percentage of increase?
reserves for repair and replacement
If the budget exceeds 115% of the previous year's assessments, excluding reasonable reserves for repair or replacement, anticipated expenses that the Board does not expect to recur on a regular/annual basis, or that concern betterments to the property, then 10% of the voting members may petition the Board to reconsider the budget.
93
If a quorum requirement is not stated in a condominium association's governing document, during an annual meeting what will constitute a quorum of the total voting interests?
A majority
For condominiums and cooperatives, a quorum is a majority of the membership attending in person or by proxy.
94
If fining is stipulated in the condominium governing documents, what is the maximum fine per violation that can be imposed against a condominium unit?
$100
Unless otherwise stated in the condominium documents, a fine may not exceed $100 per violation or $1,000 in the aggregate.
95
A condominium or cooperative board of directors may NOT create a committee
to nominate candidates for the board of directors
In condominium and cooperative associations, Search/Advisory Committees can do research to identify qualified candidates for the Board of Directors. They may also encourage qualified persons to become candidates for the board, but they cannot nominate candidates
96
Where must an elevator certification of operation be noticeably posted in a community association?
in the elevator
The certificate of operation must be posted in a visible location in the elevator and must be framed with a transparent cover. The certificate of operation must state "No Smoking.”
97
In a condominium's proposed budget, which expense item should be provided in the operating section instead of the reserve section?
contingency funds
Roof replacement, exterior painting and pavement resurfacing are all reserve items, so contingency funds would be listed in the operating section of the proposed budget
98
What is the mandatory minimum number of directors in a 75-unit condominium if nothing is provided in the bylaws?
5 members
Unless otherwise stated in the bylaws, the board of directors is composed of five members. If the condominium has five or fewer units the bylaws must call for three officers
99
Changes to Chapter 720 Florida Statues: Official Records And Websites (s. 720.303)
Associations must maintain official records for at least 7 years.
By January 1, 2025, associations with 100+ parcels must post certain documents on a website or make them available through a mobile app, including governing documents, rules, budgets, financial reports, and meeting notices.
Members must be provided access to protected sections of the website or app.
100
Changes to Chapter 720 Florida Statutes: Board Member Education And Term Limits (s. 720.3033)
Newly elected or appointed directors must certify that they have read the association’s governing documents within 90 days of election/appointment, or complete an educational curriculum.
Directors must complete at least 4 hours (for associations with <2,500 parcels) or 8 hours (for 2,500+ parcels) of continuing education annually.
Any director or officer charged with certain crimes, such as theft or embezzlement of association funds, must be removed from office.
101
Changes to Chapter 720 Florida Statutes Architectural Review And Enforcement (s. 720.3035)
Architectural standards must be reasonably and equitably applied and enforced.
Associations may not enforce standards related to improvements not visible from the front of the property or adjacent parcels/common areas.
Denials of architectural applications must specify the rule or covenant relied on and how the proposed improvement does not comply.
102
Changes to Chapter 720 Florida Statutes: Fines And Suspensions (s. 720.305)
14 days’ notice of the right to a hearing must be provided before a fine or suspension is imposed.
Committee hearings on fines/suspensions must be held within 90 days of the notice.
Fines and suspensions may not be imposed if the violation is cured before the hearing.
Associations may not fine owners for leaving garbage containers out within 24 hours of pickup or leaving holiday lights up less than a week after a notice of violation.
103
Changes to Chapter 720 Florida Statutes: Assessment Delinquencies And Late Fees (s. 720.3085)
Only simple (not compound) interest may accrue on unpaid assessments, up to 18% per annum if no rate is specified in the governing documents.
Before changing the method of delivering invoices or statements (e.g., from mail to email), associations must provide 30 days’ notice to owners and obtain their affirmative acknowledgment.
104
Changes to Chapter 720 Florida Statutes: Electronic Voting (s. 720.317)
Members may consent to online voting, which counts toward quorum at meetings.
Associations must use an online voting system that authenticates the member’s identity, validity of votes, provides voting receipts, separates votes from identifying information, and stores ballots.
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Chapter 718, Florida Statues defined -
The State of Florida provides a number of rights for condominium owners through Chapter 718, Florida Statutes (F.S.), also known as the Condominium Act, and the corresponding administrative rules, Chapters 61B-15 through 61B-24, Florida Administrative Code (F.A.C.).
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Under Chapter 718 F.S.
Condo owners must Receive at least ______________ advance notice of a budget meeting, along with a copy of the proposed annual budget, by mail, electronic transmission, or personal delivery. A budget must be proposed and adopted no later than 14 days before the beginning of the fiscal year. Section 718.112(2)(e), F.S.
14 days
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Under Chapter 718 F.S.
Receive written notice of the annual meeting that must include an agenda, by mail, electronic transmission, or personal delivery and by posting on the condominium property at least ________ continuous days in advance
Section 718.112(2)(d)2., F.S.
14 continuous days in advance
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Under Chapter 718 F.S.
Receive notice of meetings at which the board shall consider a special assessment or changes to rules concerning unit use. Notice must be by mail, electronic transmission, or personal delivery and posted on the condominium property at least _______ continuous days in advance
Section 718.112(2)(c), F.S.
at least 14 continuous days in advance
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Under Chapter 718 F.S.
Condo owners must Receive __________________ of any special assessment which must state the specific purpose(s), description, and estimated cost of the special assessment. Section 718.116(10), F.S.
written notification
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Under Chapter 718 F.S. - Elections:
Condo owners must receive the first notice of an election no less than __________ prior to the election either by mail or personal delivery. Section 718.112(2)(d)4.a., F.S. Rule 61B-23.0021(4), F.A.C.
60 days
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Under Chapter 718 F.S. - Elections:
Condo owners must submit his or her name in writing as a candidate for election to the board ______________ days prior to the election. Section 718.112(2)(d)2., F.S. Rule 61B-23.0021(5), F.A.C.
no less than 40
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Under Chapter 718 F.S. - Elections:
Condo owners must submit candidate information sheet no less than _______ days prior to the election. Section 718.112(2)(d)4.a., F.S. Rule 61B-23.0021(7), F.A.C.
35
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Under Chapter 718 F.S. - Elections:
Condo owners must receive a second notice of the election, a ballot, an inner envelope, an outer envelope and copies of any timely submitted candidate information sheets not less than_____ days or more than ______ days before the date of election either by mail or personal delivery. Section 718.112(2)(d)4.a., F.S. Rule 61B-23.0021(8), F.A.C.
14 , 34
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What is a proxy
A proxy, on the other hand, is a document that is signed by an owner, authorizing another to attend and vote on the owner’s behalf. The purpose of a proxy is to allow someone else to vote on your behalf. If you intend on voting by proxy, you must sign a written proxy designating someone else to vote for you. At the meeting, your proxy holder will cast a vote for you.
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How long is a proxy effective?
90 days after first meeting for which it was given.
A proxy is only effective for a specific meeting and any lawfully adjourned meetings thereof. Unlike a ballot, a proxy is revocable at any time at the pleasure of the unit owner executing it.
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What is the difference between a general proxy and a limited proxy?
A general proxy allows a proxy holder to vote however he or she sees fit on any matter that may be undertaken at a specific condominium or cooperative unit owner meeting.
A limited proxy lists the issues that a proxy holder may cast a vote for on behalf of a voting interest, and instructs the proxy holder on how to vote on those issues
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What are limited proxies used for?
Limited proxies are used for votes taken to waive or reduce reserves; votes taken to waive financial statement requirements; amend the declaration, articles of incorporation or bylaws; and for any other matter for which a vote of the unit owners is required.
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True or False:
Limited and general proxies may be used to establish a quorum.
True - pay attention that it is BOTH
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Under Chapter 718 F.S. The Annual Budget meeting notice and budget must be mailed, delivered or electronically transmitted not less than _______ days prior to the meeting to all unit owners. Section 718.112(2)(e)(2)a, F.S.
14
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Inspect the association’s official records subject to the reasonable rules adopted by the association.
The association must make its records available for unit owner inspection within____________ after receiving a written request.
ten (10) working days
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Pursuant to Chapter 718 F.S. under Condo unit owners have a responsibility to rpovide the association access to their units during reasonable hours for the following:
To maintain, repair or replace any common elements;
To prevent damage to the common elements or other units; or
To maintain the unit as required by the declaration of condominium. Section 718.111(5), F.S.
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True or False
Chapter 718 F.S.
An association may not refuse the request of a unit owner for a reasonable accommodation for the attachment on the mantel or frame of the door of the unit owner of a religious object not to exceed 3 inches wide, 6 inches high, and 1.5 inches deep.
TRUE
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TRUE or FALSE
Chapter 718 F.S.
If any unpaid share of common expenses or assessments is extinguished by foreclosure of a superior lien or by a deed in lieu of foreclosure thereof, the unpaid share of common expenses or assessments are common expenses collectible from all the unit owners in the condominium in which the unit is located.
TRUE
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3 Key Organizational Rules to Measure the ultimate goal: Making Money
Throughput, Inventory, and Operational Expenses
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Definition of Throughput : Measure for making money
the rate at which the system generates money through sales - not production - producing something is NOT selling it
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Definition of Inventory: Measures to Making Money
All the money that the system has invested in purchasing things which it intends to sell
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Operational Expense : measure for making money
all the money the system spends on order to turn inventory into THROUGHPUT
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what is the difference between a cash flow analysis and a component funding analysis in an HOA reserve study?
Both Methods provide the same net cash to the association, as they fund exactly the same expenses. The primary difference is that Component Method contributions typically are significantly higher in the early years (while the association is in rapid “catch-up” mode), while Cash Flow contributions can be designed to be smoother over the years.
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Common Elements
Big ticket items within a condominium complex - such as roofs, elevators, and recreational facilities are legally attached to condos and transferred with the units when they are sold
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Declaration of Condominium
recorded document that creates the condominium
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Budget Shell
A budget shell for a Homeowners Association (HOA) is a template or framework outlining the typical categories and line items used in an HOA budget. It provides a structure for organizing projected revenues and expenses over a fiscal year.
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What types of insurance coverages should a condo association have (usually robust)
These coverages often encompass property coverage, general liability, as well as windstorm and hurricane protections within the condo insurance policies specific to Florida.
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What type of insurance do condo owner's usually carry?
HO-6 insurance
which serves to bridge the coverage shortfalls of the Homeowners’ Association (HOA) policy. This particular insurance safeguards against damage within the condo unit itself, covers personal items, and offers protection should guests sustain injuries—effectively serving as a financial buffer for numerous potential incidents. Its main role is ensuring both the inner structural elements of your space and your possessions are well-defended against possible monetary losses.
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What supplementary insurance coverage choices beyond basics of H0-6 policy should condo owner consider?
Crucial for mitigating specific risks not included under standard policies are offerings such as condo insurance cover, loss assessment coverage, flood insurance, and fidelity bond insurance.
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Adequate property insurance for a condominium must be based on the replacement costs of the property to be insured - how often does replacement costs have to be determined once every _______________?
36 months
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F.S. Section 718.112
(b) Bylaws.—
Amendments to Bylaws
No amendment to the articles of incorporation or bylaws is valid unless recorded with identification on the first page thereof of the book and page of the public records where the declaration of each condominium operated by the association is recorded
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Do board members, committee members, etc get paid?
No - Not unless otherwise provided in the bylaws
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F.S. 718.112 (a) 2. When a unit owner of a residential condominium files a written inquiry by certified mail with the board of administration, how many days does the board have to respond -
the board shall respond in writing to the unit owner within 30 days after receipt of the inquiry. The board’s response shall either give a substantive response to the inquirer, notify the inquirer that a legal opinion has been requested, or notify the inquirer that advice has been requested from the division.
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Key difference between condo association's bylaws & declarations:
the declaration is the document that creates the condominium. (It gets its name because it “declares” that the condominium has been created.) To make it legal and operational, it is recorded in the land records in the county where your condominium is located.
The declaration spells out basic principles. For example, in every condominium, there are three distinct legal entities: common elements, limited common elements and units. The declaration defines these three areas.
The bylaws spell out the day-to-day operations of the association. Generally, bylaws include the legal requirements for a quorum, how many members are to be on the board of directors and the general guidelines for living in the association, such as any pet restrictions and rental procedures.
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4 Important Line Items to include in HOA's annual budget -
Utilities, Vendor Services, Insurance Premiums & Deductibles, and Reserves
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What is an association's operating budget?
An association’s operating budget or fund covers a period of 2 to 3 years. Its purpose is to cover the usual monthly expenses that HOAs incur. This includes items like landscaping, routine maintenance, and management fees. Dues and expenses are factors that can affect an association’s operating budget.
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What is an association's reserve budget
an association’s reserve fund covers a period of 5 to 30 years. It is allocated to cover the cost of major replacements and repairs down the line. Examples of such costs include a street repaving project or roof replacements. Loans and special assessments are factors that can influence your reserves.
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Where can an LCAM find what is to be included in the HOA annual budget
the governing documents should include a description of how the HOA budget is to be adopted every year. Most of the time, the budget will be adopted by either the HOA board or by vote from homeowners.
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Difference between property manager and community manager
Property managers primarily work with tenants and oversee individual apartment units or homes.
A property manager’s typical responsibilities include collecting rent, showing vacant units to prospective tenants, and handling maintenance and repairs for individual apartments or homes.
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What are CC&Rs
Covenants, Conditions and Restrictions - governing legal documents for community, recorded by the county recorders office of the county in which the property is located.
