This week, two bills relating to homeowners associations passed their respective House committees and are moving through the legislative process. HB 391 by Rep. Carl Domino, R-Palm Beach Gardens, passed the House Judiciary Appropriations Committee on Tuesday, April 4 and HB 839 by Rep. Jeff Kottkamp, R–Cape Coral, passed the Economic Development, Trade and Banking Committee on Wednesday, April 5, 2006.

With a legislative policy to: “support legislative and regulatory activity to provide for consistency between Chapters 718, F.S (Condominium Associations); 719, F.S. (Co-Operatives); 720, F.S. (Home Owners Associations); and 721, F.S. (Timeshares) and related administrative rules,” the FICPA CIRA Section has worked long and hard with other interested parties on the accounting language that now is contained in the two bills.

If passed by the legislature, this legislation would:

Financial Statement Reporting Requirement
Change the deadline by which the financial statements are due to the association from 60 to 90 days.

Budgets / Reserves
Allow for associations to include reserve accounts in their budget; however, they are not mandatory, they must “opt-in” to this requirement.

Turnover Audits
This section would become effective for associations with a date of incorporation after December 31, 2006.

Guarantee of Operating Expenses
Outline who is responsible for the common expenses at the time of turnover.

To view a copy of these bills click the links below:

• HB 391
• HB 839