There has been lots of complaints over the years that when condominium owners bring their complaints to the DBPR and expect some help, the only thing they got in return was a letter that said the DBPR has no jurisdiction over the subject matter of their complaint. I actually watched a legislative hearing in this regard and will tell you that the legislators were shocked that the DBPR was in effect powerless to help the condominium owners with their complaints.
In response, The Florida Legislature passed a new law this year giving the DBPR jurisdiction over many more subject matters. This became effective July 1st. Here it is:
718.501 AUTHORITY, RESPONSIBILITY, AND DUTIES OF DIVISION OF FLORIDA CONDOMINIUMS, TIMESHARES, AND MOBILE HOMES.
After turnover has occurred, the division has jurisdiction to investigate complaints related only to:
(a)1. Procedural aspects and records relating to financial issues, including annual financial reporting under s. 718.111(13); assessments for common expenses, fines, and commingling of reserve and operating funds under s. 718.111(14); use of debit cards for unintended purposes under s. 718.111(15); the annual operating budget and the allocation of reserve funds under s. 718.112(2)(f); financial records under s. 718.111(12)(a)11.; and any other record necessary to determine the revenues and expenses of the association.
2. Elections, including election and voting requirements under s. 718.112(2)(b) and (d), recall of board members under s. 718.112(2)(l), electronic voting under s. 718.128, and elections that occur during an emergency under s. 718.1265(1)(a). financial issues, elections, and
4. The procedural aspects of meetings, including unit owner meetings, quorums, voting requirements, proxies, board of administration meetings, and budget meetings under s. 718.112(2).
5. The disclosure of conflicts of interest under ss. 718.111(1)(a) and 718.3027, including limitations contained in s. 718.111(3)(f).
6. The removal of a board director or officer under ss. 718.111(1)(a) and (15) and 718.112(2)(p) and (q)., and
8. Any written inquiries by unit owners to the association relating to such matters, including written inquiries under s. 718.112(2)(a)2.
That’s pretty much power to investigate almost anything. Let’s hope none of you get letters any longer about the DBPR not having jurisdiction,
Here’s what may be an even more important change to the law.
The division shall refer to local law enforcement authorities any person whom the division believes has engaged in fraud, theft, embezzlement, or other criminal activity or when the division has cause to believe that fraud, theft, embezzlement, or other criminal activity has occurred.
As we have discussed many times on the show, the word “shall” means “must.” The DBPR must now refer lots of cases to law enforcement where they believe financial wrongdoing has occurred. Let’s see if this results in the prosecution of more cases.
Thoughts?
Tune in Sunday at 11am to discuss.
