FTC Bans Noncompete Agreements!

On April 23, 2024, the Federal Trade Commission (FTC) reached a final decision on the Noncompete Rule (16 CFR 910). This rule addresses concerns regarding certain types of noncompete agreements that were deemed “unfair methods of competition”. The rule will become effective 120 days after its publication in the Federal Register. The FTC Rule can be found here.

Under the Noncompete Rule, most noncompete agreements for employees earning less than $151,164 per year will be prohibited, as well as those that arise from the sale of a business. This provision aims to protect employees’ rights and prevent undue restrictions on their ability to seek employment opportunities.

It is important to note that the Noncompete Rule includes significant changes compared to the previously proposed version. One notable change pertains to the requirements for employers to inform individuals who may have existing noncompete agreements those agreements are no longer valid. Employers will be obliged to adhere to certain notification procedures, ensuring individuals are properly informed about their rights and obligations concerning these agreements.

Undoubtedly, the new Rule law will face pushback and lawsuits that will try to stop its implementation. Stay tuned for regular updates.

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SB 154 Glitch Bill to the Rescue!

On June 9, 2023, Governor DeSantis signed the “glitch” bill to purportedly fix some issues with the recent “Surfside” related inspection law.  The full text of the law is available here, and a .pdf of this article is available here. Unless otherwise indicated, this legislation takes effect immediately.

As with many legislative efforts, determining the effectiveness of the legislation and the discovery of unintended consequences takes time.  At the very least, the changes to the Structural Integrity Reserve Study law (SB 154) listed below are a good start:

Reserve Funding:

  • Multi-condominium associations operating at least 25 condominiums can use a line of credit as an alternate funding source for reserve funding.
  • Reserve funding must be based on the association’s most recent Structural Integrity Reserve Study.
  • The requirements to waive reserves or use reserves for an alternate purpose (allowable only until 2025) has changed to a majority of the total membership from a majority of those present at a meeting in which quorum was attained.
  • Inflation can be considered by an association when determining reserve funding.
  • Depending on specific requirements, a 40 or 50-year certification may be used instead of the visual survey portion of a SIRS.
  • The unduly harsh strict liability standard to find a director liable for a breach of fiduciary duty for not complying with the new reserve requirements has been changed.  The new standard is now the more reasonable “willful and knowing.”
  • Reserves are only required for components an association is responsible for according to its Declaration.  Reserves are not needed for items whose useful life exceeds 25 years.  However, deferred maintenance reserves for these items are still required.
  • Along with architects and engineers, a reserve specialist can now perform the visual inspection portion of a SIRS.
  • Exterior doors are now reserve components, and the floor and foundation are not unless the floor and foundation are part of the building’s “structure,” which, of course, they are.

Inspections:

  • Insurance premiums are excluded from the 115% calculation that allows members to challenge a budget.
  • The Florida Building Code is designated as authoritative to determine the height of a building.
  • An association has a year or less (depending on local ordinances) to repair damage identified in an inspection.
  • Fourteen days’ notice to members is required upon an association’s receipt from a local governing authority, a milestone inspection is required.  The notice must also include the date the milestone inspection must be completed.
  • An architect and an engineer acting as a licensed design professional may conduct a milestone inspection.
  • The definition of “substantial structural deterioration” was broadened to include “substantial structural weakness.”
  • A local governing authority has the discretion to extend an inspection deadline for “good cause,” which at the least requires the association to have entered into a contract for a milestone inspection that cannot be completed by the deadline.
  • No more than 45 days after receiving the inspection report from the architect or engineer, the association must post a summary on its website, mail it to the members, and make the summary or report available to renters.
  • Community association managers no longer have to comply with the structural inspection laws solely because they manage a property  “that has a building” on it.
  • Local authorities can set a 25-year inspection requirement based on environmental conditions, such as proximity to a shoreline.
  • Condominium units in which personal property is covered under a flood master policy or located above specific floors may not be required to have flood insurance.
  • As of July 1, 2027, mediation is available to members for certain structural and life-safety disputes.
  • Developers must provide prospective buyers with statements regarding milestone inspections, SIRS, and reserve studies, if applicable.  The law introduces additional presale notice requirements in contracts to ensure buyer awareness.

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2019 Florida Condominium & Homeowner Association Legislative Update

 

2019 Florida Condominium & Homeowner Association Legislative Update

Click here for .pdf version of this article

Based on the seemingly low media profile of recently passed legislation pertaining to community associations, many people wrongfully assume the latest session of Florida’s legislature will have little or no impact on their community association.  To the contrary, although lacking in “name plate” legislation, the following recently passed legislation goes into effect on July 1, 2019 (unless otherwise noted) and will have a meaningful impact on Florida’s condominium and homeowner associations:

HB 829 – Attorney Fees in Challenges to Local OrdinancesThanks to HB 829 it is now easier for your community association to “fight city hall”.  Attorneys’ fees awards are available to prevailing parties in lawsuit brought against a local ordinance that allegedly violates state or Federal preemptions.  Click here for a copy of the new law.

HB 1159 – Tree Trimming.   Other than mangrove trees, local governments cannot require a permit for pruning, trimming and removal of vegetation and trees, if the tree or vegetation is certified as presenting a danger by the International Society of Arboriculture.  Local governments are also forbidden from requiring the removed trees or vegetation to be replanted.  A property owner year-round can request an electric utility maintain vegetation on property adjacent to the electric utility’s right-of-way without notice or permission from the local government. This would only apply to situations when it is necessary for power restoration or when the vegetation is threatening to cause a power outage.  Click here for a copy of the new law.

SB 82 – Vegetable Garden Preemption.  Local governments are prohibited from regulating vegetable gardens on residential property. This prohibition does not apply to general regulations that are not specific to vegetable gardens, such as ordinances regulating fertilizer, water use and invasive species.  Click here for a copy of the new law.

SB-1666 – Anchoring & Mooring.  The legislation directs the Florida Fish & Wildlife Commission to study impacts of long term storage of vessels anchored and moored outside of mooring fields; create “no-discharge zones” for sewage dumping near certain waterbodies near rural areas; require boater safety identification cards for boats 10 horsepower and above; and designate a portion of registration fees collected by counties for the Marine Resources Conservation Trust Fund.  Click here for a copy of the new law.

HB 7103 – Sprinkler Retrofitting. Allows condominium associations to continue to vote to waive fire sprinkler system retrofitting requirements until January 1, 2024, at which time local authorities may require a condominium association to retrofit fire sprinkler systems or install an engineered life safety system.  Click here for a copy of the new law.

HB 369 – Sober Homes.  The bill continues to tighten up sober home standards and address unintended consequences of previously passed legislation. The bill exempts “Oxford Homes” from certification requirements, strengthens patient brokering and deceptive practices statutes, provides for certification and background checks of peer specialists, expands background check requirements for recovery residence administrative personnel and expands violations eligible for exemption, and covers residences that have day/night treatment centers. Click here for a copy of the new law.

SB- 182 Medical Marijuana.   If it’s for medical purposes, does it fall under the ADA? If so, does your community association have to allow marijuana smoking where cigarette smoking is permitted?  The legislation permits the use of smokable medical marijuana. The bill allows minors to smoke medical marijuana if they are terminally ill and smoking marijuana is approved by a second physician. Patients are limited to 2.5 ounces every 35 days, unless the Department of Health approves an increase at a patient’s request.  Click here for a copy of the new law.

HB-311 Autonomous Vehicles.  Is your community association “drone and autonomous vehicle ready”? Click here to obtain our report on how your community association can maximize the inevitable onslaught of drones and autonomous vehicles.  The new law requires seeks to have Florida lead the country in autonomous vehicle technology by establishing: minimum insurance thresholds, a prohibition on levying of fines or fees by local entities (with the exception of seaports and airports), minimum driving conditions for the use of any automatic driving systems and on-demand autonomous networks. Click here for a copy of the new law.

 

Stay one step ahead of new legislation, recent case law and new developments that impact your community association.

}   Name:                                                                                          

}   Mailing address:                                                                         

}   E-mail address:                                                                           

}   Community name:                                                                         

}   Position on board, if any:                                                              

 

}    Fax this completed page to (561) 750-8185 or email the above information to joshua@gerstin.com.

2018 Florida Community Association Legislative Update

Click here for .pdf version

The following will become law on July 1, 2018.

 

Fines and Suspensions – Condominiums § 718.303
Now mirrors Florida HOA law- A condominium association’s committee of unit owners who determine whether to confirm or reject a fine or suspension levied by the board must be made up of at least three members who are appointed by the board, and are not officers, directors, or employees of the association, or a spouse, parent, child, brother, or sister of an officer, director, or employee of the association. §718.303(3)(b). Fla. Stat.

Now mirrors Florida HOA law – A condominium association’s committee of unit owners who determine whether to confirm or reject a fine or suspension levied by the board must approve the fine or suspension by majority vote, otherwise the association may not impose the fine or suspension. §718.303(3)(b). Fla. Stat.

Now mirrors Florida HOA law- The condominium and cooperative association must provide written notice of any fine or suspension by mail or hand delivery to the unit owner and, if applicable, to any tenant, licensee, or invitee of the unit owner. §718.303(3)(b) Fla. Stat.

A fine approved by the committee of a condominium association is due 5 days after the date of the committee meeting at which the fine is approved. § 718.303(3)(b).

Fines and Suspensions – HOAs §720.305(2)(b), Fla. Stat.
A fine approved by the committee of an HOA, condominium, or cooperative association is due 5 days after the date of the committee meeting at which the fine is approved. § 718.303(3)(b). HOA Elections – § 720.306

If an election is not required because there are fewer or an equal number of candidates than vacancies, and nominations from the floor are not required, then write-in nominations are not permitted and the candidates will commence service on the board of directors, regardless of whether a quorum is attained at the annual meeting.

Payment of HOA Assessments – § 720.3085
The application of payments in HOA law (first to the interest accrued, then to any administrative late fee, then to any costs and reasonable attorney fees, and then to the delinquent assessment) applies notwithstanding the Uniform Commercial Code’s regulations on restrictive notations placed on or accompanying a payment. 720.3085(3)(b), Fla. Stat. This is intended to clarify existing law.

HOA Amendments to Governing Documents – § 720.306
A proposal to amend the governing documents of an HOA must contain the full text of the provision to be amended, with underlining of proposed new language and striking of proposed deleted language, unless the proposed change is so extensive and then a notation must be inserted indicating that the proposed amendment has substantial rewording. This is similar to condominium association law.

An amendment is effective when recorded in the public records of the county in which the community is located.
An immaterial error or omission in the amendment process does not invalidate an otherwise properly adopted amendment.

Required notices for amendments to the governing documents must be mailed or delivered to the parcel owner’s mailing address on the property appraiser’s website, or electronically transmitted if the parcel owner has consented in writing to receive notice by electronic transmission. 720.306(1)(g), Fla. Stat.

Communication by HOA Board Members –§ 720.303(2)(a).
Members of an HOA’s board of directors are allowed to use e-mail as a means of communication. However, a board member may not cast a vote on an association matter via e-mail. This mirrors condominium association law.

Notice of Board Meetings – Condominiums §718.112, Fla. Stat.
Condominium associations are allowed to adopt rules for noticing all board and unit owner meetings and meeting agendas on a website if the time requirements for physically posting the board meetings are met. Any rule adopted for website notice must include a requirement the association send an electronic notice in the same manner as a notice for a meeting of the members, which must include a hyperlink to the website where the notice is posted, to all unit owners whose e-mail addresses are part of the official records. Notice by website must be in addition to the other notice requirements. §718.112(2)(c)1, §718.112(2)(d)3. Fla. Stat.
A condominium unit owner who consents to receiving notice by electronic transmission is responsible for removing or bypassing any filters that block receipt of mass e-mails sent to members on behalf of the association for the purpose of giving notice. §718.112(2)(d)6. Fla. Stat.

Notice of Board Meetings – Homeowner Associations §718.112.
An HOA is allowed to give notice by electronic transmission to any parcel owner who provided written consent and a fax number or e-mail address to the HOA for such purpose. 720.303(2)(c)1., Fla. Stat.

Official Records of Condominiums § 718.111.
The deadline for condominium associations to make records available to unit owners is extended from 5 working days to 10 working days. §718.111(12)(b), Fla. Stat.
Electronic records relating to voting is included in the list of official records that must be kept by condominium and cooperative associations. §718.111(12)(a)12, Fla. Stat.
A condominium association must permanently maintain the following documents from the inception of the association (instead of just for at least 7 years):
A copy of the articles of incorporation, declaration, bylaws and rules of the association;
Meeting minutes; and A copy of the plans, permits, warranties, and other items provided by the developer at turnover. 718.111(12), Fla. Stat.

Condominium Board Members – § 718.112.
The provision that condominium association board members may not serve more than four consecutive 2-year terms is repealed. Condominium association board members 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. Board member terms are 1 year unless a longer term is permitted by the bylaws or articles of incorporation. 718.112(2)(d)2., Fla. Stat.

A cooperative director or officer is deemed to have abandoned their office if the officer or director is more than 90 days delinquent in the payment of any monetary obligation to the association. 719.106(1)(m), Fla. Stat. This mirrors condominium association law.

In residential cooperatives of more than 10 units, co-owners of a unit may not serve as members on the board at the same time unless the co-owners own more than one unit or there are not enough eligible candidates to fill vacancies on the board. 719.106(1)(a)1., Fla. Stat. This mirrors condominium association law.

Condominium Board Member Recall – § 718.112.
A board must hold a meeting within 5 business days of the unit owners’ vote or receiving a written agreement, in order to determine if the vote or written agreement is facially valid. If the board determines the vote or written agreement is facially valid, the recall becomes effective upon the conclusion of the board meeting. 718.112(2)(j), Fla. Stat.

If the board determines that the recall is not facially valid, the unit owner representative may file a petition for arbitration with the Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation (the “Division”), challenging the board’s determination on facial validity. 718.112(2)(j)4.

A recalled board member may challenge the facial validity of the written agreement to recall, the ballots filed, or the substantial compliance with the procedural requirements for the recall, by filing a petition with the Division. 718.112(2)(j)6.

If an arbitrator determines a board member’s recall is invalid, the recall is null and void and the board member must be immediately reinstated. A board member who successfully challenges a recall is entitled to reasonable costs and attorney fees from the respondents. An arbitrator may award reasonable costs and attorney fees to the respondents if the arbitrator determines a recalled board member’s request for arbitration is frivolous. 718.112(2)(j)6., Fla. Stat.

Condominium Websites – § 718.111.
The deadline for condominium associations to post certain documents to its website is extended from July 1, 2018 to January 1, 2019.

A condominium association’s failure to post required documents does not invalidate any action or decision of the board or its committees. 718.111(12)(g)4.

After bidding for materials, equipment, or services has closed, a condominium association must post on its website a list of bids received within the past year.

Summaries of bids for materials, equipment, or services must be posted on the website only if they exceed $500. A condominium association may post the complete copies of the bids in lieu of summaries of the bids.

Instead of posting on its website proposed financial reports to be considered at a meeting, the association must post any monthly income or expense statement to be considered at a meeting.

A condominium association or its agent is not liable for disclosing protected or restricted information unless the disclosure was made with a knowing or intentional disregard of the protected or restricted nature of the information.

Condominium Financial Reporting – § 718.111.
If a condominium association fails to comply with a request from the Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation (the “Division”) to provide, within five business days, a copy of the association’s financial report to the Division and to a unit owner who reports the association’s failure to provide a copy of such report within the required time, the association may not waive the annual financial reporting requirements for the fiscal year in which the unit owner’s request was made and the following fiscal year.

Alterations or Additions to Condominium Property – § 718.113.
If a condominium’s declaration does not provide a procedure to approve material alterations or substantial additions to condominium property, then approval by 75 percent of the voting interests must be obtained before the material alterations or substantial additions to the condominium property begin. This applies to condominium associations existing on July 1, 2018. 718.113(2), Fla. Stat.

Condominium Bulk Assignees and Bulk Buyer – § 718.707.
The time limit on acquisition of parcels for classification as a bulk assignee or bulk buyer is removed, extending the applicability of the bulk assignee and bulk buyer provisions indefinitely.

Electric Vehicles in Condominium Associations – § 718.113, § 718.121.
A condominium association may not prohibit a unit owner from installing an electric vehicle charging station within the boundaries of the unit owner’s limited common element parking area. Notwithstanding, the installation of an electric vehicle charging station is subject to a number of restrictions in the statute.
The installation of an electric vehicle charging station may not be the basis for filing a construction lien under Chapter 713, Florida Statutes, against the association, but a construction lien may be filed against the unit owner.

HB 7087

Inter-spousal Transfers: Exempts the transfer of homestead property between spouses from documentary stamp tax charges.

Multi-Parcel Ad Valorem Taxation: Among its provisions is the multi-parcel ad valorem tax initiative permitting the vertical subdivision of real property, and it also includes an abatement of taxes for residential improvements rendered uninhabitable by hurricanes during the 2017 season.

Stay one step ahead of new legislation, recent case law and new developments that impact your community association.

Name: _________________________________________________

Mailing address: ________________________________________

E-mail address: _________________________________________

Community name: ________________________________________

Position on board, if any: __________________________________
Fax this completed page to (561) 750-8185 or email the above information to joshua@gerstin.com.

It Has Begun, 2017 Florida Condominium Association Legislation

It’s only the beginning, Florida’s 2017 Pending Condominium Association Legislation

-By Joshua Gerstin, Esq.

Recently, Florida’s House and Senate passed a bill drastically changing the laws related to condominiums. Considering the public landscape of the various issues the bill addresses, it is unlikely Governor Rick Scott will veto the bill.   Therefore, condominium associations should begin to familiarize themselves with these new laws as soon as possible.

Following are changes to Chapter 718 from the recently passed Senate Bill 1682, additional legislative changes affecting community associations are expected from the legislature in the near future (will be detailed upon passage in subsequent articles):

1.     The term “kickback” was inserted, although undefined, in the list of prohibitions against a director when choosing a vendor for a condominium association.  In certain circumstances, kickbacks or other prohibited conduct can now be classified as a crime.

2.    Theft, embezzlement, forgery of ballot envelopes, election fraud, the destruction of official records in the furtherance of a crime and the acceptance of kickbacks are all classified as crimes.

3.    A condominium association is forbidden from hiring an attorney that also represents the association’s management company.

4.    Board members, the property manager and the property management company are prohibited from purchasing a property at a foreclosure sale resulting from the association’s foreclosure.

5.    No later than July 1, 2018, condominium associations with 150 or more units must have a website dedicated to the association’s activities on which required notices, records and documents can be posted. The website must contain a members only, password protected page accessible only to unit owners and employees of the association. The legislation contains an extensive list of documents that must be posted to the Association’s website.

6.    If permitted by the Association’s Bylaws, term limits of four consecutive two year terms can be imposed on a director and require a 2/3 majority to reelect.

7.    The Board certification requirement for recalls is removed in its entirety. Directors are required to step down at a meeting five business days after a recall petition with the requisite votes is submitted.

8.    An association or any officer, director, employee, or agent of an association may not use a debit card issued in the name of the association, or which is billed directly to the association, for the payment of any association expense. Use of 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 may be prosecuted as credit card fraud pursuant to s. 817.61.

9.    A condominium association cannot employ or contract with any service provider owned or any person who has a financial relationship with a board member or officer, or a degree of consanguinity by blood or service provider in which a board member or officer, third degree of consanguinity by blood or marriage of a board member or officer, owns less than 1 percent of the equity shares of the service provider.

10.     Arbitrators hired by the Division are mandated to hold a hearing within thirty days of confirmation of a dispute and issue a written opinion thirty days after the hearing.

11.    Management companies are required to disclose financial interests in any vendor they recommend to an association

12.    Management companies are required to turn over all association records when their contracts expire.
A determination of whether the Division has adequate funding to handle its increased responsibilities remains an open question.  Nonetheless, Governor Rick Scott is expected to sign Senate Bill 1682. Other bills affect community associations are winding their way through the legislature. We will keep you updated as further legislation develops.

Stay Informed, Subscribe to the Gerstin & Associates Newsletter

Subscribe to the Gerstin & Associates Newsletter

 Name: _________________________________________________

Mailing address: ________________________________________

E-mail address: _________________________________________

Community name: ________________________________________

Position on board, if any: __________________________________

Fax this completed page to (561) 750-8185 or email the above information to: joshua@gerstin.com

The Carpet Does Not Legally Have to Match the Drapes, Florida Condominium Insurance

According to Richard Bennett of JDsupra.com, late last week a federal court in Florida tossed a condominium association’s claims that it was entitled to replace undamaged hallway carpeting, wallpaper, baseboards, and woodwork in order to “achieve aesthetic uniformity” with similar hallway components replaced after water damage.  In Great Amer. Ins. Co. v. Towers of Quayside No. 4 Condominium Ass’n., 2015 U.S. Dist. LEXIS 150358, 2015 WL 6773870 (S.D. Fla., Nov. 4, 2015), the court held that replacing undamaged property to insure “matching” is only appropriate if the repairs concern “a continuous run” of items such as that.
Read more

Looming ADA Rules Could Affect Millions of Websites

ada-website

As many small business property owners will attest, the ADA is a brutal and often times unfair law. Property owners that do not comply with the ADA are not entitled to any advanced notice prior to being sued.  Although important to promote access for the disabled, often times the ADA is exploited by a person that either has never actually visited the premises or visited the premises solely for litigation purposes.  This same heavy handedness is coming to websites and whether they are accessible to the disabled.  Property owners such as hotels and hospitality websites will be the first front which will soon be expanded to almost every website.

For more information, and how to check to see if your website is ADA compliant go to: http://www.sun-sentinel.com/business/small-business/fl-ada-website-accessibility-suits-20150623-story.html#page=2  

Please contact our office to assist your business with all of its legal technology needs, including the issue of ADA compliant websites.

U.S. Supreme Court Bankruptcy Ruling Will Help Florida Community Associations

In Bankruptcy, community association liens are often times “stripped off” if the home is worth less than the amount of the mortgages that are securing it. The United States Supreme Court put an end to that practice as it relates to second mortgages which presumably would also apply to community association liens. Full article here

New Proposed Federal Regulation: Amateur Radio Antennas & Towers Must Be Allowed in Your Community Association

Presently pending in the United States Congress, H.R. 1301 is a bill proposed to protect the installation and use of amateur radio antennas and towers in community associations.  According to the bill, “[t]here is a strong Federal interest in the effective performance of amateur radio stations established at the residences of licensees”.  In regard to a community association’s restrictive covenants, the bill applies existing FCC policy used when dealing with State restrictions on antennas and towers to community association declarations.  The bill would, among other things, require community association “to permit erection of a station antenna structure at heights and dimensions sufficient to accommodate amateur service communications.”   H.R. 1301 would also apply to private office parks and essentially any privately owned land with use restrictions related to amateur radio antennas and towers.

 

The full text of the bill is available here: HR Bill 1301, United States Congress, Amateur Antennas and Towers.

Pet Weight Limits Don’t Apply to Emotional Support Animals in Florida’s Community Associations

Another example of the expanding scope of the Fair Housing Act, is the recently decided case of Bhogaita v. Altamonte Heights Condo. Ass’n, Inc., No. 13-12625 (11th Cir. Aug. 27, 2014). In Bhogaita a jury was persuaded the Altamonte Heights Condominium Association discriminated against the Plaintiff when it enforced its pet weight policy and demanded a removal of the plaintiff’s emotional support dog. The jury awarded Bhogaita $5,000 in damages, and the district court awarded Bhogaita more than $100,000 in attorneys’ fees. The association appealed both the judgment entered on the jury’s verdict and lost the appeal. Click the link below for the full text of the case

Bhogaita v. Altamonte Heights Condo. Ass’n, Inc., No. 13-12625 (11th Cir. Aug. 27, 2014)–Fair Housing Act-disability provisions-pet weight limit for emotional support dog failed to accommodate disability