Leave your cans out, park your truck: DeSantis signs bill to rein in overbearing HOA fines
Florida residents with oppressive and obsessive HOAs, your day of freedom may be at hand. Homeowner associations (HOAs) were created to maintain standards, uniformity and a sense of community while collecting dues to pay for common areas, services and general neighborhood improvements. But they also tend to attract people with strong opinions about what their neighbors can do. It seems that everyone who has lived in an HOA has a horror story about petty or arbitrary fines that keep increasing, harassment, inflexible and overly restrictive rules regarding the appearance of homes and lawns, the lack of budget transparency, or just the ongoing grind of living under the watchful eyes of HOA busy bodies with tape measures and a lot of free time who care deeply about where you park. A new bill, signed Friday by Gov, Ron DeSantis, may change all that when it takes effect July 1. Or at least make life a little more manageable. HB 1203, Homeowners' Association, was just one of several HOA bills introduced in this year's legislative session but it may be the most sweeping one, amounting to essentially a Homeowner's Bill of Rights. Under state law, HOAs will be restricted from some of the most complained-about rules and fines and required to be more transparent. This law comes just after another one forcing HOAs to allow homeowners to harden their homes against hurricanes. What Florida HOAs can't do to homeowners anymore As of July 1, 2024, HOAs will be prohibited from: Enforcing rules on some residents but not others Banning homeowners or their invited guests from parking personal, business or first responder vehicles (including pickup trucks) that are not commercial vehicles in their driveways or any other area where they have a right to park per state, county and municipal regulations Banning contractors or workers from the homeowner's property Fining residents for leaving garbage cans at the curb or the end of their driveway within 24 hours of a scheduled trash collection Fining residents for leaving up holiday lights or decorations past the HOA's rules without prior notice, after which the homeowner will have one week to take them down Limiting or creating rules for the inside of a structure that isn't visible from the street, a neighbor's property, an adjacent common area or a community golf course Banning vegetable gardens or clotheslines, if they can't be seen from the street, a neighbor's property, an adjacent common area or a community golf course Require review and approval of plans for central air conditioning, refrigeration, heating or ventilation system that isn't visible from the street, a neighbor's property, an adjacent common area or a community golf course and is similar to previously approved systems If a construction or improvement request is denied, the HOA also must provide written notice "stating with specificity" exactly why and under which rule or covenant. Law requires HOA transparency Every HOA must keep its official records (bylaws and amendments, articles of incorporation, declaration of covenants, current rules, meeting minutes, insurance policies, contracts, financials, budgets, tax returns, voting records, etc.) for at least seven years. Destruction of accounting records within that time is a first-degree misdemeanor. HOAs with more than 100 parcels must post all of their rules, convenents, budgets and related documents on their websites by Jan. 1. HOAs must provide notice and agendas for any scheduled meeting of its members at least 14 days in advance in plain sight on its website. Any document to be considered and voted on must be posted online at least seven days before the meeting. An HOA with at least 1,000 parcels must prepare audited financial statements. Official records must be made available to a parcel owner within 10 business days of receipt of their written request, with some restrictions on how many physical copies are permitted, or the HOA must pay damages. Violation is a second-degree misdemeanor. Refusal to comply with the intent of avoiding criminal investigations or punishment is a third-degree felony. If an HOA receives a subpoena for records from a law enforcement agency, they must provide a copy or make them available for copying within five business days. Every three months, a homeowner may make a written request for a detailed accounting of any and all money they owe to the association related to their parcel, and get it within 15 business days. If the board does not comply, any outstanding fines the person owes older than 30 days that they never received written notice of will be waived. HOA director education, and bribes A newly elected or appointed director must complete education on financial literacy and transparency, recordkeeping, levying of fines, and notice and meeting requirements within 90 days and repeat it at least every four years. On top of that, the director of an HOA with fewer than 2,500 parcels must complete at least four hours of continuing education every year or be suspended until they do. An HOA officer, director or manager who solicits offers or accepts kickbacks commits a third-degree felony and must immediately be removed from office. HOA managers or management firms have to be involved and easy to find An HOA manager or a representative of the HOA management firm must: Attend, in person, at least one annual member or board meeting Provide the name and contact information for every HOA manager or management form rep assigned to the HOA along with their hours of availability and a summary of their duties, which must be posted to the HOA's website and kept current Provide a copy of the contract between the manager or management firm and the HOA and keep it with the HOA records Complete at least five hours of continuing education on HOAs, with three hours relating to recordkeeping What are HOAs? A Homeowner's Association or HOA is an organization in a planned community, neighborhood subdivision or condominium building that creates and enforces rules for the properties, residents and guests. It charges fees to be used for the maintenance of the community and may levy fines against residents who violate the rules. HOA rules are often in place to maintain conformity among the permitted architecture, color schemes, landscaping and decorations. HOAs also enforce parking restrictions, noise complaint policies, home occupancy limits, vacation rentals and more. Anyone buying property within the jurisdiction of an HOA automatically becomes a member of the HOA and subject to its restrictions and covenants.
Feb. New-Home Sales Rose 1.1%
NEWS & MEDIA JoSon, Getty Images MARCH 23, 2023 Feb. New-Home Sales Rose 1.1% By Kerry Smith Sales rose month-to-month but are down 19% year-to-year, with Feb.’s sales falling solidly into the “not good news but not bad news” category. WASHINGTON – Higher mortgage rates and home prices, as well as increased construction costs contributed to lackluster new home sales in February, but signs point to improvement later in the year. Sales of newly built, single-family homes in February increased 1.1% to a 640,000 seasonally adjusted annual rate (the number of homes that would sell in one year at the current month’s rate) from a downwardly revised reading in January, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. However, new home sales are down 19% year-to-year. “The lack of existing home inventory means demand for new homes will rise as interest rates decline over the coming quarters,” says Alicia Huey, chairman of the National Association of Home Builders (NAHB). However, Huey also notes builders’ ongoing challenges, including “higher interest rates, elevated construction costs and access to critical materials like electrical transformers.” NAHB Chief Economist Robert Dietz says February’s data “points to an increase for the monthly pace of single-family construction starts later in 2023 given a rise in builder sentiment and an increase for sales of homes not yet started construction.” Dietz’s top concern, though, is possibly tighter credit conditions stemming from recent bank problems. He says that could impact acquisition, development and construction loans for smaller builders. New single-family home inventory fell for the fifth straight month. The February reading indicated an 8.2-months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. However, single-family resale home inventory stands at a reduced level of 2.5 months. The median new-home sale price rose in February to $438,200, up 2.5% year-to-year, based largely on elevated costs of construction. A year ago, roughly 15% of new-home sales were priced below $300,000; that share is now just 10%. On a year-to-date basis, new home sales fell in all regions: Down 29.2% in the Northeast, 21.3% in the Midwest, 7.3% in the South and 40.6% in the West. A new home sale registers when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the February reading of 640,000 units is the number of homes that would sell if this pace continued for the next 12 months. © 2023 Florida Realtors®
Fla.’s Feb. Housing: Inventory, Median Prices Up
Ariel Skelley / Getty Images MARCH 21, 2023 Fla.’s Feb. Housing: Inventory, Median Prices Up By Marla Martin Florida Realtors: Closed single-family sales fell 21.3% last month amid inflation and higher interest rates, but for-sale inventory rose 131.4% to a 2.7-months’ supply. ORLANDO, Fla. – Florida’s housing market in February continued to show increasing inventory (active listings) and higher median prices compared to a year ago, according to Florida Realtors®’ latest housing data. Still, economic uncertainty, inflation and interest rates fluctuating above 6% impacted the state’s housing sector. Closed sales of single-family homes statewide last month totaled 18,627, down 21.3% year-over-year, while existing condo-townhouse sales totaled 7,665, down 30.2% from February 2022, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Closed sales may occur from 30- to 90-plus days after sales contracts are written. “The 30-year fixed mortgage rate was in the 6- to 6.5% range for much of January, which helped spur some renewed activity in the existing home sales market,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “While closed sales were still down substantially year over year, the numbers for February were much more favorable than what we saw in January. “One area where we worsened compared to last month, however, was in new listings. The last time there were this few new listings in the month of February was in 2013, in both property type categories. This lack of new listings kept inventories from expanding much at all. Single-family inventory actually declined month-over-month, though it was still higher year-over-year.” In February, the statewide median sales price for single-family existing homes was $395,000, up 3.5% from the previous year; for condo-townhouse units, it was $315,000, up 8.6% over February 2022. The median is the midpoint; half the homes sold for more, half for less. “The supply of for-sale homes is slowly building, which is easing inventory constraints in many markets across the state,” says Florida Realtors® President G. Mike McGraw, a broker-associate with RE/MAX Central Realty in Apopka. “As more inventory becomes available, it will begin to ease some of the pressure on home prices – and that helps buyers dealing with higher interest rates and affordability challenges. “Working with a local Realtor means consumers have an expert guide who can help them understand the complex and emotional process of buying or selling a home.” Statewide inventory in February was higher than a year ago for both existing single-family homes, increasing by 131.4%, and for condo-townhouse units, up 106%. The supply of single-family existing homes was at a 2.7-months’ supply while existing condo-townhouse properties were at a 3.2-months’ supply last month. © 2023 Florida Realtors®
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