Legal News You Can Use: 2025 - 2026 Community Association Legislative Update

2025-2026 COMMUNITY ASSOCIATION LEGISLATIVE UPDATE

Material Amendments in Nonresidential Condominiums (Section 718.110 of the Florida Statutes)

The Condominium Act generally prohibits declaration amendments which change the configuration or size of any unit in any material fashion, materially alter or modify the appurtenances to the unit, or change the proportion or percentage by which the unit owner shares the common expenses of the condominium and owns the common surplus of the condominium, unless both of the following conditions are met: (i) the record owner of the affected unit and all record owners of liens on that unit join in the execution of the amendment; and (ii) all record owners of all other units in the condominium approve the amendment. These types of amendments are sometimes referred to as “material amendments.” This year’s legislation creates an exception to this general rule for nonresidential condominiums which are formed on or after July 1, 2025. In those types of condominiums, a “material amendment” may be adopted with the consent of the record owners of all affected units and all record owners of liens on those units, and the approval of owners of nonaffected units is not required. ■

Financial Reports (Section 718.111 of the Florida Statutes)

Associations are required to complete an annual financial report of the previous year’s financial activities and provide the report to unit owners. The new laws modify the procedures for preparing, maintaining and providing financial reports in the following manner: » An association must deliver to each unit owner a copy of the most recent financial report within 180 days after the end of the fiscal year. ▪ Note – Previous law required an association to deliver the most recent financial report within 120 days after the end of the fiscal year. The change allows for a slightly longer timeframe to complete the task. » In lieu of delivering the most recent financial report, an association may instead provide a notice to unit owners stating that a copy of the report will be mailed, hand delivered or electronically delivered to them, at no charge, within 5 business days of receiving an owner’s written request. The report must be delivered in the format requested by the owner. ▪ Note – Previous law required an association to provide both the financial report and the above-referenced notice. — continued on next page

12 | Kopelowitz Ostrow Ferguson Weiselberg Gilbert