WE NEED YOUR HELP!

Community Association Legislation Is Going to the Governor



CAI’s Florida Legislative Alliance (FLA) has been working with the Legislature to pass Senate Bill 714 (SB 714), which would provide several important changes to requirements imposed on community associations in Florida.
SB 714 provides much needed relief to cash-strapped associations, and removes troublesome insurance provisions created last year. If your community sees benefit in this bill, please make it a priority to email the Governor with your strong message of support as soon as possible. There are groups that are opposed to this bill and will be seeking a gubernatorial veto.
You have the opportunity to help make your community association a better place by sending your message of support. CAI, CAN, CALL and other groups fought to create these benefits for your association. Please help in the homestretch to see this bill safely into law.

Please email Governor Crist at Charlie.Crist@myflorida.com --- today --- if you support SB 714.
If SB 714 becomes law, it will provide the following:
1. For policies issued or renewed on or after July 1, 2009, coverage under a unit owner's residential property policy (HO-6 policy) shall include property loss assessment coverage of at least $2,000 for all assessments made as a result of the same direct loss to the property, regardless of the number of assessments owned by all members of the association collectively when such loss is the type of loss covered by the unit owner's HO-6 policy. A deductible of no more than $250.00 per direct property loss shall apply.
2. If a deductible was or will be applied to other property loss sustained by the unit owner resulting from the same direct loss to the property, no deductible shall apply to the loss assessment coverage. Every HO-6 policy must contain a provision which states that the coverage provided by such policy is excess coverage over the amount recoverable under any other policy covering the same property.
3. A condominium that is one or two stories in height and has an "exterior means of egress corridor" (aka catwalk) is exempt from having to install a manual fire alarm system as required in Section 9.6 of the Life Safety Code.
4. A property insurance policy or program (aka SIF) that was issued before January 1, 2000, and which has provided uninterrupted property insurance coverage for a group of no fewer than three communities is NOT subject to review and approval by the Office of Insurance Regulation (OIR) until renewed after July 1, 2009.
5. The notice for the board meeting at which insurance deductibles will be established NO LONGER needs to state the proposed deductible, the funds available, the board's assessment authority or an estimate for any potential assessment needed to pay such deductibles.
6. Clarifies that the association's coverage excludes all personal property located within the boundaries of a unit and which serve only such unit and that such property insurance coverage shall be the owner's responsibility.
7. Removes the requirement that the association be named as an additional insured and loss payee on the owner's HO-6 policy.
8. Removes the requirement that the association inquire as to each owner's HO-6 coverage and removes the ability of the association to purchase or "force place" any missing unit owner policies.
9. Changes the standard for the association's insurance coverage from "full insurable value" to the "replacement cost".
10. If the number of board members whose terms have expired exceeds the numbers of candidates running for those seats, each expired board member would now become eligible for reappointment to the board rather than having to run for re-election.
11. Co-owners of a unit would both be eligible to serve on the board only IF they own more than one unit and are not co-occupants of any unit. Timeshares would be specifically exempted from the co-ownership occupancy restriction.
12. Adds fines, fees and special assessments to the list of items that render an owner ineligible to serve on the board if not paid for 90 days.
13. Removes the requirement to sign and send in a Candidate Certification form before an election and replaces it with the requirement that each newly elected director must certify in writing within 90 days after being elected that he or she has read the association's declaration, articles of incorporation, bylaws and current written policies. These newly elected directors must also certify that they will work to uphold such documents to the best of their ability and will faithfully discharge their fiduciary duties to the members. In lieu of this written certification, directors may also submit a certificate that they have satisfactorily completed an educational program administered by a Division-approved educational provider. Failure to file either the certification or the educational course certificate will result in the director being unable to serve any longer on the board.
This act will take effect upon becoming law.

Senate Bill 714 passed April 29, and will be presented to the Governor some time over the next few weeks. Once the Governor receives a bill, he will have 15 days from the date of presentation in which to take action. Bills can become law with the Governor's signature or without it. A gubernatorial veto kills the bill.


For more information on CAI-FLA, contact your local chapter Executive Director.