Important Updates Regarding Statutory and Federal Reporting Requirements for Community Associations in 2025
Both homeowner and condominium association boards have had to navigate through many new regulations and reporting requirements which have taken effect over the past year at the local, state and federal levels. Over the past several months, association managers and attorneys have kept a close eye on the various (and, at times confusing) reporting requirements applicable to certain condominiums throughout the state as a result of post-Surfside legislation. This specifically includes new requirements to complete a Phase I Milestone Inspection and a periodic Structural Integrity Reserve Study reporting by year’s end. There have also been substantive updates to some of the standard reporting forms published by the Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile Homes (“Division”). Below we provide a snapshot of some relevant reporting updates applicable to Florida community associations.
New DBPR Reporting Requirements Applicable to Florida Condominiums
SIRS Reporting – Click here for SIRS Reporting Requirements
At the end of September 2024, the Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile Homes (“Division”) launched a new condominium-specific website which outlines the methods in which condominiums subject to the new Structural Integrity Reserve Study (“SIRS”) requirements can timely submit their SIRS to the Division by 12/31/2024, as required per 718.112(2)(g), F.S. More specifically, s. 718.112(2)(g)9., F.S., requires certain condominiums (three stories or higher in height) to distribute within 45 days of the study’s completion a copy of the SIRS to each unit owner or deliver to each unit owner a notice that the completed study is available for inspection and copying upon a written request. Additionally, s. 718.112(2)(g)10., F.S, requires the association to also provide the Division a statement confirming completion of the SIRS and timely distribution of the same to the membership.
The website provides three methods of reporting the SIRS to the Division, including direct online submission, email the completed SIRS Reporting form to ctmhsirsreporting@myfloridalicense.com, or via mail (2601 Blair Stone Road Tallahassee, FL 32399-1030).
When submitting the SIRS via any of the three methods, the association is required to complete a “SIRS Reporting Form” and, if submitting the form online, also attach a copy of the completed SIRS report to the division. (Note: The requirement to upload the actual SIRS is only expressly referenced in the online submission form. It is unclear whether the actual report must also be attached to the form if the association is submitting the form via email or mail. Out of an abundance of caution, we recommend a copy of the completed SIRS be included with the SIRS Reporting Form regardless of the submission method in order to avoid potential compliance issues).
The individual submitting the SIRS form on the association’s behalf must be willing to certify that the information included on the form is true, accurate and complete to the best of their knowledge.
We recommend Boards discuss timely submission of the SIRS form with the community management team (if applicable) and association counsel.
New Frequently Asked Q&A – Click here for the New Question & Answer Form
Effective October 1, 2024, the Division has published an updated DBPR Form CO 6000-4, which must be updated annually and provided to each buyer by all residential condominiums containing more than 20 residential units per s. 718.504, F.S. The latest form now specifically requires the association to disclose if the condominium is located within a multiple parcel building. Please use the link above for the latest form which should now replace prior versions of the FAQ Form previously published by the Division.
Federal Corporate Transparency Act (Beneficial Ownership Interest Reporting) Updates
As many community association board members are already aware, there are new federal reporting requirements applicable to homeowner and condominium association boards associated with the Corporate Transparency Act (“CTA”) which became effective on January 1, 2021. The CTA requires certain non-exempt corporations, limited liability partnerships, etc., to comply with its reporting requirements no later than January 1, 2025. This includes community associations as they are organized as a not-for-profit corporation based on the Articles of Incorporation filed within the respective states.
In sum, the CTA requires the Association report as a “Reporting Company” to the federal “Financial Crimes Enforcement Network” (“FinCen”) specific information about the association’s “beneficial owners” no later than January 1, 2025. For purposes of the Act, beneficial owners are defined as a person who exercises “substantial control” of the reporting entity or who controls not less than 25% of the ownership interests of the entity. Examples of “substantial control” include the authority to appoint or remove an officer or having decision power over matters like approving the corporation budget, financing or interest decisions, and entering or terminating contracts on the corporation’s behalf. Because a community association’s board of directors are elected and authorized to perform such tasks as outlined in the Association’s Governing Documents (Declaration, Articles of Incorporation, Bylaws), each member of the association’s Board is considered a “beneficial owner” of the association.
Over the past several months, there have been various legal challenges and federal legislation aimed at completely exempting and/or temporarily extending the deadline to comply with the new CTA reporting requirements as it relates to certain industry groups. Most recently, on December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction, blocking the U.S. Department of Treasury from enforcing the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting requirements in the case, Texas Top Cop Shop, Inc., et al. v. Garland, et al. The case, which is filed on behalf of the National Federation of Independent Business, argues the new CTA reporting requirements are a violation of the First and Fourth Amendments and further exceed Congress’s authority over the states.
In response to this Court ruling, the US Department of Treasury issued a statement the BOI filing requirements and deadlines have been TEMPORARILY STAYED while it appeals the preliminary injunction (appeal filed on December 5, 2024). UPDATE – BREAKING NEWS: Appeal Court Stays Injunction and Corporations must file by January 1, 2025 unless in Counties Impacted by Hurricane Ian and Milton.
We recommend consulting with association’s counsel regarding the new statutory and federal reporting requirement applicable to your association prior to the looming deadlines.