House Bill 1195 and Cooperative Associations (Part II)

My most recent entry summarized the some of the changes made by House Bill 1195 (which became effective on July 1 of this year) to several provisions of the laws governing cooperative associations in Florida.

House Bill 1195 created three new subsections to Florida Statute Section 719.303 that have the effect of extending to cooperative associations the same enforcement tools that have been given to condominium associations and mandatory homeowners associations in our state.

New Florida Statute Section 719.303(4) allows the association to suspend the right of a unit owner or that owner's occupant, licensee, or invitee to use common elements, common facilities, or any other association property until a monetary obligation is paid in full, subject to the following conditions:

  • The unit owner must be more than 90 days delinquent in paying that monetary obligation
  • The right to use limited common elements intended to be used only by that unit, common elements needed to access that unit, utility services provided to the unit, parking spaces, or elevators cannot be suspended under F.S. Section 719.303(4)

Cooperative associations are given the right to suspend the voting rights of a unit or member under  Florida Statute Section 719.303(5).   This new subsection provides that:

  • The suspension is based on nonpayment of any monetary obligation due to the association which is more than 90 days delinquent
  • A voting interest or consent right which has been suspended may not be counted towards the total number of voting interests for any purpose, including, but not limited to, the number of voting interests needed to establish a quorum, the number of voting interests required to conduct an election, or the number of voting interests needed to approve an action under Chapter 719 or the association's governing documents
  • The suspension ends upon payment in full of all obligations currently due or overdue to the association

The suspensions imposed under these to new subsections are not subject to the notice and hearing requirements of F.S. Section 719.303(3).  Instead, the following requirements are provided in new Florida Statute Section 719.303(6):

  • The suspensions must be approved by the association's board of directors at a properly noticed board meeting
  • Upon approval, the association must notify the unit owner, and, if applicable, the unit's occupant, licensee, or invitee of the suspension by mail or hand delivery.

It will be interesting to see whether these new provisions encourage unit owners to pay amounts owed to cooperative associations.  I'll look forward to hearing from my blog followers that are members of cooperatives about this in the coming months.

 

 

 

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Comments (2) Read through and enter the discussion with the form at the end
CBWOOD - August 1, 2011 7:42 AM

Given the experiences I've observed with SOME in the park where we winter they would just ignore this "suspension" in the same way they do paying their bills. AND, if past is prologue they will live there until "H" freezes over no matter how awful the situation is for others choosing that place for their home, investment, seasonal repreive. We've come to realize once someone gets into a cooperative like ours (not that there IS another) it is impossible to actually enforce "reasonable" rules or remove those who have even gained access improperly...wonder what Florida will do about that? In fact the place where we have properties has nearly been destroyed by an element for whom the attitude is "YOU CAN'T MAKE ME" much like a recalcitrant child might tell a parent or teacher. You may sense some frustration here...I spend each evening saying a prayer for buyers!

Richard A. Gray - August 1, 2011 7:53 AM

Scott
I beleive that this statute is good I do have a problem with letting everyone at a board meeting know who is in the rears. I think that part of the law will give us a bigger problem with the unit owner if let everyone know who is in the rears.
Dick
Gray
OBV Director

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