Sunshine Laws: Do They Shine On Property Owners Associations?

Florida's Sunshine Laws require full disclosure of all records related to government meetings, but they do not apply to condominium associations or homeowners' associations (HOAs) as they are not considered governmental organisations. However, the Florida Condominium Act and the corresponding laws for homeowners' associations mandate certain transparency measures. These include the requirement that board meetings be open to members, with notice of meetings posted on the property at least 48 hours in advance. Owners have the right to speak at board meetings and may also record or videotape them.

Florida's Sunshine in the Government Act

While the Sunshine Law does not apply to condominium associations or homeowners' associations (HOAs), as they are not considered governmental organizations, the Florida Condominium Act contains its own set of "sunshine" requirements for these communities. This includes the mandate that board meetings must be open to members, who have a statutory right to attend and speak at these meetings. Notice of meetings must be posted on the condominium property at least 48 hours in advance, while certain special occasions require 14 days' notice and must be posted, mailed, or electronically transmitted to each owner.

The Sunshine Law also provides owners with certain rights at board meetings, including the right to speak on all designated agenda items. The association may adopt written reasonable rules governing the frequency, duration, and manner of owner statements. Owners may also record or videotape such meetings.

The "sunshine" laws apply to committees that take final action on behalf of the board or make recommendations to the board regarding the association budget. All committees are subject to sunshine requirements unless specifically exempted by the association bylaws.

Florida Condominium Act

Florida's Sunshine Law, passed in 1967, guarantees a "basic right of access" to most government bodies in the state, to encourage transparency. However, this law does not apply to community associations, including condominium boards and homeowners' associations (HOAs).

That being said, the Florida Condominium Act does mandate certain transparency measures. The Act, codified in Fla. Stat. §718.101, regulates the creation, management, authority, and functioning of condominium associations within Florida. It is divided into the following sections:

• Part I - General Provisions
• Part II - Rights and obligations of developers
• Part III - Rights and obligations of the association
• Part IV - Special types of condominiums
• Part V - Regulation and disclosure prior to the sale of residential condominiums
• Part VI - Conversions to condominium
• Part VII - Distressed condominium relief

The Act provides that notice of board meetings must be posted on the condominium property at least 48 hours in advance, and these meetings are open to all unit owners, who may also record or videotape them. Unit owners have the right to speak at these meetings, with respect to all designated agenda items. Condominium associations may also adopt written reasonable rules governing the frequency, duration, and manner of unit owner statements.

Additionally, the Act covers a range of other topics, including the creation of condominiums, timeshare estates, the recording of declarations, the restraint upon separation and partition of common elements, the amendment of declarations, the failure to fill vacancies on the board of administration, common expenses, assessments, and the termination of condominiums.

Florida Homeowners' Association Act

The Florida Homeowners' Association Act, or the Homeowners' Association Act, is a set of laws that govern the formation, management, powers, and operation of HOAs in Florida. The Act applies specifically to not-for-profit organizations operating residential homeowners associations in the state.

The Act is organized into three parts: General Provisions, Disclosure Prior to Sale of Residential Parcels, and Covenant Revitalization.

Part I: General Provisions

This part covers the purposes, scope, and application of the Act. It outlines the powers and duties of the association, including meetings of the board, official records, budgets, financial reporting, association funds, and recalls. It also addresses the rights of owners, such as the right to peaceably assemble and display flags, as well as the prohibition of SLAPP suits.

Part II: Disclosure Prior to Sale of Residential Parcels

This part of the Act requires prospective purchasers to be subject to association membership and disclosure requirements, including covenants, assessments, and contract cancellation. It also addresses the publication of false and misleading information.

Part III: Covenant Revitalization

The final part of the Act focuses on the preservation of communities and the revival of the declaration of covenants. It outlines the requirements for eligible communities to revive these declarations and the processes involved, including the role of the organizing committee and the Department of Commerce.

While the Act does not specifically refer to "sunshine laws," it does emphasize transparency and disclosure, which are key principles of sunshine laws. The Act ensures that HOA board meetings are open to all members, with certain exceptions, and that notice of meetings is provided to owners. Owners also have the right to speak at these meetings, contributing to the transparency and accountability of the association's operations.

Florida Cooperative Act

The Florida Cooperative Act, found in Chapter 719 of the Florida Statutes, provides a statutory framework for the creation and operation of cooperatives in the state. Here's an overview of the key provisions of the Act:

General Provisions

• The Act recognises the cooperative form of ownership of real property, where legal title is held by a corporation or entity, and beneficial use is evidenced by ownership interest in the association.
• It defines key terms such as "association", "board of administration", "common areas", "cooperative", and "unit owner".
• It grants unit owners the irrevocable right to access their units for maintenance, repair, or replacement of structural components.

Official Records and Transparency

• Cooperatives must maintain official records, including plans, permits, cooperative documents, rules, meeting minutes, rosters of unit owners, insurance policies, contracts, and financial records.
• These records must be made available to unit owners within a reasonable timeframe and location.
• The Act ensures unit owners' right to inspect and copy records, with certain exceptions for confidential information.
• It requires cooperatives to provide financial reports and annual budgets to unit owners.

Rights and Obligations of Developers

• Developers have specific rights and obligations regarding the creation and operation of cooperatives.
• They are responsible for providing certain documents, warranties, and disclosures to unit owners and the association.
• Developers may be exempt from certain assessments and have special voting rights during the initial stages of the cooperative.

Rights and Obligations of the Association

• The association is responsible for the operation and management of the cooperative property.
• It has the power to make and collect assessments, maintain common areas, and enforce rules and regulations.
• The association must obtain adequate insurance and maintain reserves for capital expenditures and deferred maintenance.
• It has the right to levy fines, suspend certain privileges, and enforce liens for non-payment of assessments.

Special Types of Cooperatives

• The Act accommodates leasehold cooperatives, where the land is held under a long-term lease, and recreational or commonly used facilities may be included.
• It also addresses phase cooperatives, where the cooperative is developed in phases, and timeshare cooperatives, where ownership interests are sold for specific time periods.

Regulation and Disclosure for Residential Cooperatives

• The Act includes provisions for the regulation and disclosure of information when selling residential cooperative units.
• It requires developers to provide a prospectus or offering circular with detailed information about the cooperative to prospective purchasers.
• It mandates escrow requirements for deposits and advance payments made by purchasers.
• The Act also outlines procedures for handling complaints and disputes related to the sale of cooperative units.

HOA Rules

While Florida's Sunshine in the Government Act ("Sunshine Laws") requires transparency and disclosure in government and business, these laws do not apply to condominium associations or homeowners' associations (HOAs). However, the Florida Condominium Act ("the Act") and the corresponding laws for homeowners' associations contain their own set of "sunshine" requirements for these communities, emphasising transparency.

The following are the key HOA rules based on the "sunshine" requirements:

• Open Meetings: HOA board meetings must be open to all board members and owners in the association. A "meeting" is defined as a gathering where a quorum of the board members is present to conduct association business. While there are exceptions for certain sensitive topics, such as legal or personnel matters, these meetings should generally be accessible to all owners.
• Notice of Meetings: Notices of board meetings must be posted conspicuously on the property at least 48 hours in advance. For certain special meetings, such as those regarding non-emergency special assessments or rule amendments, notices must be provided to owners at least 14 days in advance through mail, delivery, or electronic transmission, in addition to being posted on the property. The notices should also clearly specify the agenda items to be discussed.
• Owner Participation: Owners have the right to attend and speak at board meetings on designated agenda items. The association may set reasonable rules for the frequency, duration, and manner of owner statements to ensure the meeting is conducted efficiently. Owners also have the right to record or videotape such meetings.
• Committees: The "sunshine" laws apply to committees that take final action on behalf of the board or make budget recommendations. All committees are subject to sunshine requirements unless specifically exempted by the association bylaws.
• Transparency: The key principle underlying these rules is transparency. HOA boards should strive for openness and keep owners informed about association business to maintain a harmonious relationship between the board and the association members.

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