Florida Senate - 2026                                     SB 822
       
       
        
       By Senator Gruters
       
       
       
       
       
       22-00859-26                                            2026822__
    1                        A bill to be entitled                      
    2         An act relating to community association management;
    3         amending ss. 718.111, 718.405, 719.106, and 720.303,
    4         F.S.; requiring certain community associations to
    5         contract with a community association management firm;
    6         requiring the community association management firm to
    7         possess all applicable licenses; providing that
    8         association board members, officers, and directors
    9         have a duty to ensure such community association
   10         management firm or community association manager is
   11         properly licensed; providing an effective date.
   12          
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Paragraph (g) of subsection (3) of section
   16  718.111, Florida Statutes, is amended to read:
   17         718.111 The association.—
   18         (3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
   19  SUE, AND BE SUED; CONFLICT OF INTEREST.—
   20         (g) If an association contracts with a community
   21  association manager or a community association management firm,
   22  the community association manager or community association
   23  management firm must possess all applicable licenses required by
   24  part VIII of chapter 468. An association with total annual
   25  revenues of $500,000 or more must contract with a community
   26  association management firm. Each board member or officer All
   27  board members or officers of an association that contracts with
   28  a community association manager or a community association
   29  management firm has have a duty to ensure that the community
   30  association manager or community association management firm is
   31  properly licensed before entering into a contract.
   32         Section 2. Subsection (6) is added to section 718.405,
   33  Florida Statutes, to read:
   34         718.405 Multicondominiums; multicondominium associations.—
   35         (6)An association operating a multicondominium must
   36  contract with a community association management firm. The
   37  community association management firm must possess all
   38  applicable licenses required by part VIII of chapter 468. Each
   39  board member or officer of an association that contracts with a
   40  community association manager or a community association
   41  management firm has a duty to ensure that the community
   42  association manager or community association management firm is
   43  properly licensed before entering into a contract.
   44         Section 3. Paragraph (a) of subsection (1) of section
   45  719.106, Florida Statutes, is amended to read:
   46         719.106 Bylaws; cooperative ownership.—
   47         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
   48  documents shall provide for the following, and if they do not,
   49  they shall be deemed to include the following:
   50         (a) Administration.—
   51         1. The form of administration of the association shall be
   52  described, indicating the titles of the officers and board of
   53  administration and specifying the powers, duties, manner of
   54  selection and removal, and compensation, if any, of officers and
   55  board members. In the absence of such a provision, the board of
   56  administration shall be composed of five members, unless the
   57  cooperative has five or fewer units. The board shall be composed
   58  consist of not fewer than three members in cooperatives with
   59  five or fewer units that are not-for-profit corporations. In a
   60  residential cooperative association of more than 10 units, co
   61  owners of a unit may not serve as members of the board of
   62  directors at the same time unless the co-owners own more than
   63  one unit or unless there are not enough eligible candidates to
   64  fill the vacancies on the board at the time of the vacancy. In
   65  the absence of provisions to the contrary, the board of
   66  administration shall have a president, a secretary, and a
   67  treasurer, who shall perform the duties of those offices
   68  customarily performed by officers of corporations. Unless
   69  prohibited in the bylaws, the board of administration may
   70  appoint other officers and grant them those duties it deems
   71  appropriate. Unless otherwise provided in the bylaws, the
   72  officers shall serve without compensation and at the pleasure of
   73  the board. Unless otherwise provided in the bylaws, the members
   74  of the board shall serve without compensation.
   75         2. A person who has been suspended or removed by the
   76  division under this chapter, or who is delinquent in the payment
   77  of any monetary obligation due to the association, is not
   78  eligible to be a candidate for board membership and may not be
   79  listed on the ballot. A director or officer charged by
   80  information or indictment with a felony theft or embezzlement
   81  offense involving the association’s funds or property is
   82  suspended from office. The board shall fill the vacancy
   83  according to general law until the end of the period of the
   84  suspension or the end of the director’s term of office,
   85  whichever occurs first. However, if the charges are resolved
   86  without a finding of guilt or without acceptance of a plea of
   87  guilty or nolo contendere, the director or officer shall be
   88  reinstated for any remainder of his or her term of office. A
   89  member who has such criminal charges pending may not be
   90  appointed or elected to a position as a director or officer. A
   91  person who has been convicted of any felony in this state or in
   92  any United States District Court, or who has been convicted of
   93  any offense in another jurisdiction which would be considered a
   94  felony if committed in this state, is not eligible for board
   95  membership unless such felon’s civil rights have been restored
   96  for at least 5 years as of the date such person seeks election
   97  to the board. The validity of an action by the board is not
   98  affected if it is later determined that a board member is
   99  ineligible for board membership due to having been convicted of
  100  a felony.
  101         3. When a unit owner files a written inquiry by certified
  102  mail with the board of administration, the board shall respond
  103  in writing to the unit owner within 30 days of receipt of the
  104  inquiry. The board’s response shall either give a substantive
  105  response to the inquirer, notify the inquirer that a legal
  106  opinion has been requested, or notify the inquirer that advice
  107  has been requested from the division. If the board requests
  108  advice from the division, the board shall, within 10 days of its
  109  receipt of the advice, provide in writing a substantive response
  110  to the inquirer. If a legal opinion is requested, the board
  111  shall, within 60 days after the receipt of the inquiry, provide
  112  in writing a substantive response to the inquirer. The failure
  113  to provide a substantive response to the inquirer as provided
  114  herein precludes the board from recovering attorney’s fees and
  115  costs in any subsequent litigation, administrative proceeding,
  116  or arbitration arising out of the inquiry. The association may,
  117  through its board of administration, adopt reasonable rules and
  118  regulations regarding the frequency and manner of responding to
  119  the unit owners’ inquiries, one of which may be that the
  120  association is obligated to respond to only one written inquiry
  121  per unit in any given 30-day period. In such case, any
  122  additional inquiry or inquiries must be responded to in the
  123  subsequent 30-day period, or periods, as applicable.
  124         4.An association with total annual revenues of $500,000 or
  125  more must contract with a community association management firm.
  126  The community association management firm must possess all
  127  applicable licenses required by part VIII of chapter 468.
  128         5.Each board member or officer of an association that
  129  contracts with a community association manager or a community
  130  association management firm has a duty to ensure that the
  131  community association manager or community association
  132  management firm is properly licensed before entering into a
  133  contract.
  134         Section 4. Subsection (1) of section 720.303, Florida
  135  Statutes, is amended to read:
  136         720.303 Association powers and duties; meetings of board;
  137  official records; budgets; financial reporting; association
  138  funds; recalls.—
  139         (1) POWERS AND DUTIES.—An association that operates a
  140  community as defined in s. 720.301 must be operated by an
  141  association that is a Florida corporation. After October 1,
  142  1995, the association must be incorporated and the initial
  143  governing documents must be recorded in the official records of
  144  the county in which the community is located. An association may
  145  operate more than one community. An association with total
  146  annual revenues of $500,000 or more must contract with a
  147  community association management firm. The community association
  148  management firm must possess all applicable licenses required by
  149  part VIII of chapter 468. The officers and directors of an
  150  association are subject to s. 617.0830 and have a fiduciary
  151  relationship to the members who are served by the association.
  152  Each officer and director of an association that contracts with
  153  a community association manager or a community association
  154  management firm has a duty to ensure that the community
  155  association manager or community association management firm is
  156  properly licensed before entering into a contract. The powers
  157  and duties of an association include those set forth in this
  158  chapter and, except as expressly limited or restricted in this
  159  chapter, those set forth in the governing documents. After
  160  control of the association is obtained by members other than the
  161  developer, the association may institute, maintain, settle, or
  162  appeal actions or hearings in its name on behalf of all members
  163  concerning matters of common interest to the members, including,
  164  but not limited to, the common areas; roof or structural
  165  components of a building, or other improvements for which the
  166  association is responsible; mechanical, electrical, or plumbing
  167  elements serving an improvement or building for which the
  168  association is responsible; representations of the developer
  169  pertaining to any existing or proposed commonly used facility;
  170  and protest of ad valorem taxes on commonly used facilities. The
  171  association may defend actions in eminent domain or bring
  172  inverse condemnation actions. Before commencing litigation
  173  against any party in the name of the association involving
  174  amounts in controversy in excess of $100,000, the association
  175  must obtain the affirmative approval of a majority of the voting
  176  interests at a meeting of the membership at which a quorum has
  177  been attained. This subsection does not limit any statutory or
  178  common-law right of any individual member or class of members to
  179  bring any action without participation by the association. A
  180  member does not have authority to act for the association by
  181  virtue of being a member. An association may have more than one
  182  class of members and may issue membership certificates. An
  183  association of 15 or fewer parcel owners may enforce only the
  184  requirements of those deed restrictions established prior to the
  185  purchase of each parcel upon an affected parcel owner or owners.
  186         Section 5. This act shall take effect January 1, 2027.