The April Issue Includes:
- Free Live Webinar - Your Association & COVID-19
- COVID-19 Changes Our Legal System
- Vacation Rentals Suspended
- DBPR Supplies Order Granting Associations Crucial Emergency Powers
- Free Live Webinar - Joint Board Certification Class - Last one for the year
- Free Live Webinar - HOA Board Certification Class
- Contest - Win a Gift Card
- We Won - Thanks to You!
- Ask C&M - Get Free Legal Information
- April's Birthdays
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When replying with a question or statement please include your full name and the legal name of your Association or Management Company (no acronyms, please, unless your legal name on the Article of Incorporation lists an acronym.)
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Editor’s Note: COVID-19 is bringing almost daily changes as to how Community Associations operate. To help Board Members and Managers keep up with all these changes, the Executive Orders, and other effects that COVID-19 has brought about, C&M has added a third newsletter, “
Special Edition
,” which will be published as needed.
Starting with this issue, we are featuring a section devoted exclusively to COVID-19 issues.
C&M is here for you. We care about your safety and your well-being. We have been designated an “essential business” and as such, we are open. Call us at any of our offices or after hours numbers listed at the bottom of this issue.
We are also featuring updated COVID-19 issues (as well as other informative pieces) on our Facebook page. We are here to help you through these trying times.
If you are wondering why you received this email, please review the information at the end of this edition.
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"Your Association & COVID-19"
Free Live Webinar
Tuesday, April 7, 2020
10:00 a.m.
COVID-19 has changed the way we do everything in the United States today, including the operations and the effects on Florida Community Associations. Brad Pomp, President of Sentry Management, will be joining Neal McCulloh to talk about these effects and the possible solutions to them as well as what they think may be the future critical issues resulting from this crisis. You may submit written questions on your registration form as well as questions during the Q&A section of the webinar.
This class is filling up fast so sign up now! If you need assistance with registration during business hours, please call Clayton & McCulloh at (407) 875-2655, or after business hours, please call (407) 808-2553.
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COVID-19 Changes Our Legal System
As we have all learned, the COVID-19 Pandemic has had far-reaching effects on our collective welfare and daily life, including financially. Many find themselves with reduced hours, or out of work temporarily or permanently. The uncertainty of “what’s next” has in some cases, merely created an excuse, but in many cases, actually precluded, payment of assessments and property maintenance within Community Associations. It is generally preferable to work toward an amicable resolution rather than litigate, but we understand this is not always an option.
On March 13, 2020, the Florida Supreme Court (“FLSC”) entered AOSC20-13, limiting access to Florida courthouses for individuals at greater risk of passing along COVID-19, due to prior travel or existing symptoms. On March 17, 2020, FLSC supplemented that Administrative Order by severely limiting in-person hearings to “essential and critical” hearings involving evidence - primarily, those related to criminal proceedings and affecting minors - via AOSC20-15. The presently effective COVID-19 Orders are set to expire on March 27, 2020, but it appears likely they will be extended and supplemented by further FLSC Administrative Orders. Note also that all three Florida federal Districts have likewise closed the courthouses to the public, and are largely holding hearings remotely, if at all.
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A
s of now, FLSC is permitting each County to decide whether its courthouses remain open, although a directive to allow remote (telephonic or video) appearances, if the court is open, is currently in effect, and will be until at least March 27, 2020. Several counties have canceled all foreclosure sales through the end of March (or through other dates). Others may be holding hearings and treating this as “business as normal” until directed otherwise, other than the requirement to allow for remote appearances. The Supreme Court’s COVID-19 web page (
https://www.floridasupremecourt.org/Emergency
) provides links to each County’s Administrative Orders and court websites, which show whether each County’s court system remains operational and to what extent.
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Finally, President Trump has reportedly directed the U.S. Department of Housing and Urban to suspend all evictions and foreclosures (it appears this applies only to foreclosure
sales,
for now) on HUD-backed mortgages, through April 2020. This directive was limited to
government
actions, but we anticipate some judges and/or counties may follow suit for non-government cases. Likewise, we are seeing some sheriff’s offices advising they are not presently serving process in lawsuits, are not executing on writs of execution (i.e., selling personal or real property to satisfy liens), etc.
In short, some judicial functions remain available, others do not, and until FLSC or the federal government require otherwise, discretion lies with each Florida County. This landscape of local, statewide, and federal governance is, however, changing daily, and we are monitoring it very closely. The ability of a potential litigant to proceed toward, or with, litigation is not simply eliminated, and remains entirely in place in many Florida counties. Florida and federal courts are still accepting filings, and hearings are still being set in many Florida counties. The timeline may be longer than anticipated to resolve these issues, but it is not indefinite as of this writing. Clayton & McCulloh invites our clients to contact us with any questions regarding the status of the foregoing matters; we are presently fully operational, and pray that everyone stays safe and healthy during this trying time.
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Vacation Rentals Suspended
On Friday, March 27, 2020 Governor DeSantis entered Executive Order 20-87 (the “Order”), requiring a temporary suspension of vacation rentals while the Order is effective. The Governor cited the several practical (and legal) grounds for the Order, including the Centers for Disease Control and Prevention's caution against non-essential travel, and a reported influx - despite that caution - of transients traveling to Florida, especially from locations under "shelter-in-place" orders. Under the Order, no new vacation rental (a) reservations, (b) bookings, or (c) guests, are allowed.
The Order adopts the definition of “vacation rental” set forth in F.S. § 509.242(1)(c); thus, the Order applies to: "any unit or group of units in a condominium or cooperative or any individually or collectively owned single-family, two-family, three-family, or four-family house or dwelling unit that is also a transient public lodging establishment but that is not a timeshare project." Examples include properties rented via AirBnB, VRBO, or similar third party short-term rental platforms. The Order also applies the term “vacation rental” to any property considered a transient public lodging establishment under F.S. § 509.013(4)(a), which is rented for less than 30 days. Notably, the Order’s restrictions expressly
do not
apply to:
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Hotels, motels, inns, resorts, non-transient public lodging establishments, or time-share projects;
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Long-term rentals;
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Rental stays where guests are currently staying in a vacation rental or have previously booked a stay and are schedule[d] to check-in no later than March 28, 2020; or
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Rentals to persons performing military, emergency, governmental, health, or infrastructure response, or travelers engaged in non-vacation commercial activities.
Violation of the Order results in the Florida Department of Business and Professional Regulation (“DBPR”) revoking the violator’s rental license, as well as second degree misdemeanor charges, punishable by imprisonment up to 60 days under F.S. § 775.082(4)(b), or fines of up to $10,000.00 (or higher) and court costs under F.S. § 775.083. The Order also instructs the DBPR to supplement the Order with guidance or directives needed for the Order’s implementation, and to inspect licensed properties and third party rental platforms (
e.g.
, AirBnB) and report violations to state authorities.
The Order expires 14 days after its entry (i.e., on April 10, 2020), unless extended by subsequent order.
Clayton & McCulloh recommends contacting counsel to determine whether it may be appropriate to report an unauthorized vacation rental to DBPR. Our firm remains fully operational from the office as of this writing, and we remain available to guide our clients through this difficult time.
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DBPR SUPPLIES ORDER GRANTING ASSOCIATIONS
CRUCIAL “EMERGENCY POWERS”
On March 27, 2020, the Florida Department of Business and Professional Regulation (“DBPR”) issued Emergency Order 2020-04, which ensures that most Florida community associations can use their all-important statutory “emergency powers” during the Covid-19 pandemic, despite the customary restriction that such powers must be only in “response to damage caused by an event.” The Order specifically rescinds, during the declared State of Emergency, the “damage” limitation stated in the Florida Statutes governing condominiums (F.S. § 718.1265(1)), cooperatives (F.S. § 719.128(1)), and homeowners associations (F.S. § 720.316(1)). Until the Covid-19 State of Emergency is rescinded in Florida, the Order authorizes a condominium or cooperative association to do the following, unless prohibited by the association’s governing documents:
(b) Cancel and reschedule any association meeting.
(c) Name as assistant officers persons who are not directors, which assistant officers shall have the same authority as the executive officers to whom they are assistants during the state of emergency to accommodate the incapacity or unavailability of any officer of the association.
(d) Relocate the association’s principal office or designate alternative principal offices.
(e) Enter into agreements with local counties and municipalities to assist counties and municipalities with debris removal.
(f) Implement a disaster plan before or immediately following the event for which a state of emergency is declared which may include, but is not limited to, shutting down or off elevators; electricity; water, sewer, or security systems; or air conditioners.
(g) Based upon advice of emergency management officials or upon the advice of licensed professionals retained by the board, determine any portion of the condominium property unavailable for entry or occupancy by unit owners, family members, tenants, guests, agents, or invitees to protect the health, safety, or welfare of such persons.
(h) Require the evacuation of the condominium property in the event of a mandatory evacuation order in the locale in which the condominium is located. Should any unit owner or other occupant of a condominium fail or refuse to evacuate the condominium property where the board has required evacuation, the association shall be immune from liability or injury to persons or property arising from such failure or refusal.
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(i) Based upon advice of emergency management officials or upon the advice of licensed professionals retained by the board, determine whether the condominium property can be safely inhabited or occupied. However, such determination is not conclusive as to any determination of habitability pursuant to the declaration.
(j) Mitigate further damage, including taking action to contract for the removal of debris and to prevent or mitigate the spread of fungus, including, but not limited to, mold or mildew, by removing and disposing of wet drywall, insulation, carpet, cabinetry, or other fixtures on or within the condominium property, even if the unit owner is obligated by the declaration or law to insure or replace those fixtures and to remove personal property from a unit.
For homeowners associations, the powers described in items (i) and (j) do not apply, although limitations found within the governing documents
do
still apply. The DBPR does not appear to have contemplated a homeowners’ association governing adjoined townhomes, who should be especially aware of this limitation on HOAs’ emergency powers.
The “emergency management officials” mentioned above are also re-defined during this State of Emergency, for condominiums and cooperatives only, to include public health officials.
The Order also clarified that certain financial reporting deadlines for condominiums, cooperatives, and timeshares are suspended and “tolled” during the State of Emergency. It also includes relief for other industries regulated by DBPR.
Clayton & McCulloh recommends contacting counsel before implementing
any
emergency powers. We anticipate that the Order may, at a minimum, reduce the risk of implementing emergency procedures which could be crucial to the Association’s survival and its residents’ health and safety. Our firm remains fully operational from the office as of this writing, and we remain available to guide our clients through this difficult time.
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COVID-19 Has You Housebound?
Join Us for Our April Webinars!
Special Note:
For the protection and safety of our clients, guests, and staff due to Coronavirus,
we will only be hosting our live webinars through June 30th
. We will not be hosting live in-person seminars. We will be evaluating the possibility of rescheduling the live in-person seminar as the situation changes. If you have already registered for the live in person seminar, we will notify you of any future changes. If you have not already made a reservation for the live in-person event, we suggest you register for the webinar
AND
the live presentation. While we are not hosting live in-person events at this time, by making a reservation for a live in-person seminar, we will notify you when and if the event is rescheduled and you will be given priority seating.
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Climb Every Mountain:
The 2020 Joint Board Certification Class
Free Live Webinar
Tuesday, April 7
Featuring Partner, Brian Hess
6:30 – 8:45 p.m.
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This Joint Board Certification class is approximately 2½ hours or more depending on questions. This class covers information for HOAs, condominiums, and cooperatives. This class provides you with the tools to be successful Board Members. If you are a condo or cooperative and missed our
“Great Balls of Fire: The 2020 Condominium and Cooperative Board Certification Class,”
then this is the class for you. This will be the last time it is presented at a live webinar. Due to the Coronavirus, it is not anticipated that we will be repeating this class at a live in-person seminar or again as a live webinar. Excellent course for new and existing Board Members, those residents wanting to run for the Board, and property managers. We will be taking questions from those attending the webinar. This is an updated course from our 2019 Joint Board Certification class.
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Free Live Webinar
I Walk the Line: The 2020 HOA Board Certification Class
Thursday, April 16
Featuring: Alan Schwartzseid Partner
Time: 6:30 - 8:45 p.m.
This class focuses on the tools that HOA Board Members and Managers need to carry out their daily duties. This class is required by law for all new Board Members within ninety days of taking office. Once you have taken the course and have not gone off the board (for even a day), it is not necessary to retake this class. However, Clayton & McCulloh updates this class each year with fresh material.
There is only one more HOA Board Certification Class for this year.
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Hound Dog:
It’s All About Pets!
Free Live Webinar
Thursday, April 23
Featuring: Founding & Senior Partner, Neal McCulloh
6:30 - 7:30 p.m
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Service pets, therapy pets, emotional support pets...oh my goodness! What can an Association do about these particular designations of pets? Can you restrict them? Did you think that all these type of pets were dogs? Is it possible to have a 15 foot boa constrictor as an emotional support animal? Can you restrict certain breeds of dogs from your community?
Pets are one of the most controversial issues Community Associations have been facing and it is a highly charged emotional issue Some owners will fight you to the bitter end rather than give up their pets. Will they win? In this one hour class, our attorney will provide you with the solutions to these issues and some questions for you to ponder.
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Win a Gift Card! Random Survey Drawing!
We want you to help shape the future of our publications:
“The Green Marble”
and
“C&M Update.”
Please take our brief (eight questions) multiple choice survey by midnight, April 13
th
. A winner will be selected randomly and award a gift card. Just for giving us a piece of your mind! The winner will be announced in our April “
C&M Update
.”
With changing technologies and our desire to deliver important information to you the way you want to receive it, your input is of utmost importance to us.
Click here to complete the survey.
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Clayton & McCulloh Receives
Diamond Level Readers' Choice Award!
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We are very proud and humbled to be a Diamond Club recipient of the
Florida Community Association Journal’s Readers’ Choice Award
again this year! This award is equivalent to winning Hollywood’s People Choice Awards.
Votes are tabulated for Board Members, Committee Members, Managers, Residents and Vendors who cast their vote every year to select the top professionals in the industry.
Winning the Diamond Club award is especially significant because we are competing with many large law firms, management companies, clients, customers, banks, insurance companies and accountants statewide that service the Community Association industry.
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Have a Legal Question? Get a Free Answer!
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Each month in this newsletter, we offer our readers an opportunity to obtain some free legal advice by simply submitting that question in a brief form. If you would like to submit a question, click
here.
We review the questions and one question is selected each month and published in our newsletter, “
C&M Update
.” Everyone wants free legal advice – so what is stopping you from submitting a question?
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April 1 - Bonnie O'Brien - Sentry Management
April 5 - Vivian Carvalho - PFM Group Consulting
April 11 - Carlos Borrero - Sentry Management
April 4 - Susan Wohltman - Parkwood Manor HOA
April 9 - Wilma Watkins - Tavares Ridge COA
April 10 - Mary Ann Galvin - The Courtyards of Suntree
April 13 - Nancy Reynolds - Jamestown of Indian Harbour Beach
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Your birthday is a joyous day to us and we want to celebrate it. Please send us your birthday (just day and month) and we will publish it in our newsletter. And if you would also like - we can publish it on our Facebook page. Send your birthday information to aring@clayton--mcculloh.com.
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Orlando Office: Maitland
The Clayton & McCulloh Building
1065 Maitland Center Commons Blvd.
Maitland, FL 32751
Phone: (407) 875-2655
Fax: (407) 875-3363
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Melbourne Office: Suntree/Viera
Baytree Corporate Park
1301 Bedford Drive, Suite 102
Melbourne, FL 32940
Phone: (321) 751-3449
Fax: (321) 751-3450
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Toll Free: (888) 793-1486
After Hours - 24/7: (407) 808-2553
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You are receiving this e-mail as you fall into one of the following categories:
*You are currently a client or client's manager;
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provided a subscription to the C&M mailing list
*By attending one of our seminars, you agreed to be part of our Confidential Mailing list.
If you elect to be removed from this e-mail service, we will no longer be able to send you seminar invitations, information on changes in the law concerning Community Associations, newsletters, or any other information regarding the Community Association industry. You will not receive solicitation for business unless you have requested that information. We sincerely hope we can continue to assist you with the challenges that face Community Associations today through this service.
When replying with a question or statement please include your full name
a
nd the legal name of your Association or Management Company (no acronyms, please, unless your legal name on the Article of Incorporation lists an acronym.)
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