5/1/24
By: Jessica Cauley
You’ve heard of the wild real estate scene in Florida since 2020. But unless you’re familiar with the residential subculture of homeowners’ associations, you may not realize how prevalent they are or that the combination of federal law and Chapter 720 of the Florida Statutes fundamentally impacts their operations. With that, the Florida Legislature’s express purpose is a balancing act between protecting the rights of HOA members, without unduly burdening the HOA Board’s ability to function within their governing documents. Recent changes in the law alter HOA Board authority, member rights, and corporate disclosure requirements.
Florida Statute § 720.3045
As of July 1, 2023, property owners now have a statutory right to install, display or store anything on their property at their discretion, so long as it is not visible from the front or side of the property. This statute looks to achieve the delicate balance: allowing property owners’ freedom to use their property how they wish, but accounting for the HOA’s uniform design or aesthetic goals.
Florida Statute § 720.3075
Though it may seem like another small win for the property owner, § 720.3075(3) now also allows for the display of up to two flags, of wider variety with representations for military branches, POW-MIA, first responders, and more. Previously, property owners were statutorily restricted to display only the U.S. flag or state flag of Florida.
Florida Statute § 720.303
In October 2023, the Florida Legislature revised Chapter 720 with what has been dubbed the “Homeowners’ Associations Bill of Rights” under section 720.303. In part, revisions to the act place greater emphasis on ramifications for wrongdoing by any officer and more strict standards for imposing any fine/suspension on members:
The Federal Corporate Transparency Act
As of January 1, 2024, certain reporting companies, including HOAs, must disclose certain information relating to the association, including its directors and officers as its “beneficial owners” to the U.S. Treasury’s Financial Criminal Enforcement Network (FinCEN). In part, “beneficial owners” of the association are defined to include individuals who directly or indirectly exercise substantial control over it. With this, directors will be identified by name, DOB, address, and applicable government identification data. There are civil and criminal penalties for failure to provide the information, consistent with the Act’s goal to combat fraud, money laundering, or illicit activity via a Satriale’s Pork Store, A1A Car Wash, or your front of choice. Community associations that existed prior to January 1, 2024 must report information to FinCEN no later than January 1, 2025.
For more information, contact Jessica Cauley or your local FMG attorney.
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