Florida's Senate Bill 360 on HOAs

In April 2023, the Florida Legislature and Governor DeSantis enacted Senate Bill 360, bringing about significant amendments to the statutes governing construction defect claims within the state. Specifically, this bill modifies the statute of limitations (SOL) and statute of repose (SOR) periods outlined in Florida Statute § 95.11, effectively reducing the window for initiating construction defect lawsuits. For Homeowners Associations (HOAs) in Florida, this legislative change holds considerable implications for community management, financial planning, and legal preparedness.

Understanding the Legislative Changes

At its core, Senate Bill 360 mandates that both the SOL and SOR periods will start earlier and conclude sooner. This alteration means that HOAs must act more swiftly to identify and address any construction defects within their communities. Previously, associations had more leeway to discover defects and initiate legal proceedings without as pressing a deadline. The new, shortened timelines demand heightened vigilance and efficiency in managing and inspecting community property to ensure any defects are promptly identified and rectified.

Implications for HOAs

1. Increased Responsibility for Prompt Action: HOAs must now be more proactive in inspecting new constructions and existing structures for potential defects. This may necessitate more frequent and thorough inspections, potentially leading to increased costs for associations.

2. Enhanced Legal and Financial Planning: With tighter deadlines for legal action, HOAs must enhance their legal and financial planning strategies. This includes setting aside funds for potential legal challenges and consulting with legal professionals specializing in construction law to navigate these changes effectively.

3. Impact on Community Projects: For HOAs planning renovations or new construction projects, understanding and adhering to the new SOL and SOR timelines is critical. Failure to comply could jeopardize the association's ability to seek recourse for construction defects, impacting the community's financial health and property values.

4. Educational Efforts: HOAs should invest in educating their board members and property managers about these legal changes. Knowledgeable leadership is vital to ensure compliance and protect the community's interests.

Strategic Considerations for HOAs

In response to Senate Bill 360, HOAs should consider several strategic actions to mitigate risks and navigate the new legal landscape effectively:

• Legal Consultation: Regularly consult with legal counsel familiar with Florida's construction laws to stay abreast of the implications of Senate Bill 360 and other relevant statutes.

• Proactive Inspections: Implement a more aggressive schedule for property inspections, utilizing qualified professionals to identify and document potential defects before the SOL and SOR deadlines.

• Financial Planning: Revise financial strategies to accommodate potential increased costs related to inspections, legal consultations, and construction defect resolutions.

• HOA Communication: Maintain transparent communication with HOA members about the impact of these legal changes on the community, including potential financial implications and the importance of prompt defect reporting.

Conclusion

The enactment of Senate Bill 360 represents a significant shift in Florida's approach to construction defect claims, with direct consequences for HOAs throughout the state. By understanding these changes and proactively adjusting their management and legal strategies, HOAs can navigate these challenges effectively, ensuring the longevity and well-being of their communities. As we move forward, embracing a proactive, informed approach will be key for HOAs in adapting to the evolving legal landscape and safeguarding their interests in this new regulatory environment.

Sources

• Schwartz Sladkus Reich Greenberg Atlas LLP. (n.d.). New law SB 360 shortens time for construction defect lawsuits. Retrieved from https://ssclawfirm.com/news-events/in-the-news/new-law-sb-360-shortens-time-for-construction-defect-lawsuits
• Chartwell Law. (n.d.). Chartwell Law's outline of Florida Senate Bill 360. Retrieved from https://www.chartwelllaw.com/resources/chartwell-laws-outline-of-florida-senate-bill-360
• Adams and Reese LLP. (n.d.). Florida SB 360: DeSantis & construction defect lawsuits. Retrieved from https://www.adamsandreese.com/news-knowledge/florida-sb-360-desantis-construction-defect-lawsuits-2
• Cole, Scott & Kissane, P.A. (n.d.). Implications of Senate Bill 360 on the construction industry. Retrieved from https://www.csklegal.com/newsroom/publications/implications-of-senate-bill-360-on-the-construction-industry
• The Florida Senate. (2023). Senate Bill 360 (2023) - The Florida Senate. Retrieved from https://www.flsenate.gov/Session/Bill/2023/360/ByVersion