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CAN ALERT: DBPR Budget Cuts-How Will They Impact Your Community Association?

Dear  The State of Florida currently has a $1.5 billion budget deficit. Governor Crist has said that every governmental agency will have to share the pain and tighten their belts. The Department of Business & Professional Regulation (DBPR) is the governmental agency that oversees the Division of Florida Land Sales. The Division provides educational and enforcement services to Florida's condominium, cooperative, time share and mobile homeowners. The DBPR testified this week before the House of Representatives' Jobs & Entrepreneurship Council that it will be reducing the budget for the Florida Homeowner Education Program by more than 95%. The Community Association Institute (CAI) has had the educational contract for this program for the last 6 years; the education program provides information on association operations, financial management, resident rights and responsibilities and legal and regulatory requirements for associations. This program is supported by the $4.00 per owner annual fee. Condominium and cooperative owners will still be required to pay this fee despite the fact that the educational component is being virtually eliminated. Some see this as a travesty since one of the Division's main goals has traditionally been to educate residents in common interest ownership communities. Others see this reduction (for the remaining fiscal year) as an opportunity to rethink the educational component and perhaps create a new structure. If you have utilized the educational services offered by the Division in the past and were pleased with them and wish to preserve this function of the Division in its present form, you can utilize the Capitol Connection email tool on the CAN website at http://www.canfl.com. Simply click on the House Committees box and use the drop down list to click on the Jobs & Entrepreneurship Council. You can then contact each and every member of that Committee with just a single click. If you want to explore other opportunities for the distribution of educational materials to condominium and cooperative owners, you can similarly use the Capitol Connection email tool to contact your own Representative and Senator or the Council to discuss desired alternatives. Another cut being proposed concerns the enforcement aspect of the Division. Currently, the Division investigates all alleged violations of the condominium and cooperative acts. This jurisdiction pertains to the period when a developer is in control of an association as well as the period after the association has been turned over to the unit owners. Quarterly reporting data for 30 months shows that 61% of the complaints received by the Division involve financial management, access to records and elections. Therefore, the remaining 39% relate to what might be described as matters concerning day-to-day living such as the quality of the community's maintenance, non-jurisdictional issues such as nuisance pets, quality of management and allegations of harassment by board members. The budget reduction proposed would permit the Division to no longer investigate unit owner complaints in post-transition, mature communities involving any matters other than those related to finances, access to records and elections. All other unit owner complaints would have to be dealt with via arbitration and, if necessary, litigation. Limiting the Division's role in investigating those types of complaints will reduce the Division's $1.36 million budget by approximately $600,000. This change would require an amendment to Sections 718.501 and 719.501 of the Condominium and Cooperative Acts respectively. Again, there are those who will welcome this proposed change since it eliminates the ability of "recreational complainers" to have ready access to a State agency to commence an investigation. Others may be troubled that another resource previously available to condominium and cooperative owners is being eliminated. Whatever your personal feelings about these DBPR budget cuts, please use this opportunity to be informed well ahead of the curve and to give your input if you wish by using the Capitol Connection email tool on our CAN website at www.canfl.com. We have also posted summaries of all of the changes that took place during the 2007 Legislative Session to the Condominium Act and the HOA Act. Please take a look as the changes were quite extensive. Of course, if you have any questions or comments about the information contained herein, please don't hesitate to contact me. Best Regards, Donna D. Berger, Esq. Executive Director of the Community Advocacy Network (CAN) Telephone: 954.486.7774 Facsimile: 954.486.7782 Web: www.canfl.com Email: dberger@canfl.com

For more information, please contact Donna Berger at (954) 315-0372 or via email at dberger@canfl.com