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

2025-2026 COMMUNITY ASSOCIATION LEGISLATIVE UPDATE

— continued from page 19 Property Manager Requirements

» If the association receives and considers a bid that exceeds $2,500 to provide a good or service, other than CAM services, which is or may reasonably be construed to fall within one of the “conflict of interest” categories described above, then the association must solicit multiple bids from other third-party providers of such goods or services. The only exception is if these conflicts of interests are previously disclosed in the management services contract as a conflict of interest. » If a CAM or a CAM Firm (including directors, officers, and persons with a financial interest in a CAM Firm), or a relative of such persons, proposes to engage in an activity that falls within one of the “conflict of interest” categories described above, then the proposed activity must be listed on the meeting agenda of the next board meeting. The notice for the meeting at which the proposed activity will be considered by the board must include a description of the proposed activity, disclose the possible conflict of interest, and include a copy of all contracts and transactional documents related to the proposed activity. ▪ Note – Previous law required the existence of the conflict of interest, and the contract or other transaction, to be disclosed to the members at the next membership meeting. This requirement was stricken from the statutes. » If an association’s board finds that a CAM or CAM Firm (including directors, officers, and persons with a financial interest in a CAM Firm), or a relative of such persons, has violated the “conflict of interest” requirements, then the contract is voidable and the

association may terminate its management contract with the CAM or CAM Firm by delivery of written notice. If the contract is terminated, the association is liable only for the reasonable value of the management services provided up to the time of cancellation and is not liable for any termination fees, liquidated damages, or other form of penalty for such cancellation. ▪ Note – Previous law permitted the contract to be terminated by the consent of at least 20% of the association’s voting interests. This permitted form of termination was stricken from the statutes. Third, the new laws expand upon licensure requirements applicable to CAMs and CAM Firms: » A person who has had his or her CAM license revoked may not have an indirect or direct ownership interest in, or be an employee, a partner, an officer, a director, or a trustee of, a CAM Firm during the 10-year period after the effective date of the revocation. Such person is ineligible to reapply for certification or registration for a period of 10 years after the effective date of a revocation. Each CAM and CAM Firm must create and maintain an online licensure account with the DBPR. Each CAM must identify on his or her online licensure account the CAM Firm for which he or she provides management services and identify each association for which he or she is the designated onsite CAM. A CAM must update his or her online licensure account with this information within 30 days after any change to the required information. A CAM Firm must identify on its online licensure account the CAMs that it employs to provide CAM services. ■

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