More on association records Let’s highlight some other parts of F.S. 720 that address the importance of record keeping. Budgets are a record of the association The association must prepare an annual budget. The association must provide each member with a copy of the annual budget or a written notice that a copy of the budget is available upon request at no charge to the member. For HOAs that are required to have a website, the annual budget and any proposed budget to be considered must be posted on the website. Financial reports Year-end financial reports required to be prepared by an HOA are records of the association. Within 90 days after the end of the fiscal year, or annually on the date provided in the bylaws, the association shall prepare and complete, or contract with a third party for the preparation and completion of, a financial report for the preceding fiscal year. ● Within 21 days after the final financial report is completed by the association or received from the third party, but not later than 120 days after the end of the fiscal year (or other date as provided in the bylaws), the association shall, provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member. What level of fiscal year-end financial report is required for an HOA? Prior to 2024, the level of year-end financial report was based on the revenue of the association. However, effective July 1, 2024, Chapter 2024-221 (HB 1203) changed the requirements to add that the level of financial year-end report is not only determined by revenue, but also by size of community as listed here: ● An association with total annual revenues of less than $150,000 shall prepare a report on cash receipts and expenditures. ● An association with total annual revenues of $150,000 or more, but less than $300,000 shall prepare compiled financial statements. ● An association with total annual revenues of at least $300,000, but less than $500,000 shall prepare reviewed financial statements. ● An association with total annual revenues of $500,000 or more shall prepare audited financial statements. ● An association with at least 1,000 parcels shall prepare audited financial statements, notwithstanding the association’s total annual revenues. (As amended 2024) ○ If approved by a majority TVI, a report of cash receipts and expenditures or a compiled financial statement in lieu of a reviewed or audited financial statement. Can HOAs prepare a lower/higher level of financial report? It’s possible. If 20% of the parcel owners petition the board for a level of financial reporting higher than that required by this statute, the association shall duly notice and hold a meeting of members within 30 days of receipt of the petition for the purpose of voting on raising the level of reporting for that fiscal year. Upon approval of a majority of the TVI of the parcel owners, the association shall prepare or cause to be prepared, shall amend the budget or adopt a Professional practices Related to professional practices of a manager or management firm, effective July 1, 2025, Chapter 2025-175 (HB 913) the following provisions now apply not only to
special assessment to pay for the financial report regardless of any provision to the contrary in the governing documents, and shall provide within 90 days of the meeting or the end of the fiscal year, whichever occurs later. If approved by a majority of the TVI present at a properly called meeting of the association, an association may prepare or cause to be prepared a lower level, but an association may not prepare a financial statement pursuant to this paragraph for consecutive fiscal years. Recall of directors When and if a director is recalled, it creates records for the association that must be maintained properly according to the HOA’s documents and Florida statutes. Statutes, as well as many HOA documents, provide stipulations for the membership to take action to recall (remove from the board) directors or a board. Each of these stipulations, whether determined by governing documents or statute, require petitions or an agreement in writing or written ballot. There are stipulations regarding any board and/or membership meeting that may be required. The stipulations also include requirements of service on the association by certified mail or by personal service in the manner authorized by statute and the Florida Rules of Civil Procedure. Debit cards This explains how a debit card issued to an HOA becomes part of the association records. The Florida statute tells us that an association and its officers, directors, employees, and agents may not use a debit card issued in the name of the association or billed directly to the association for the payment of any association expenses. A person who uses a debit card issued in the name of the association, or billed directly to the association, for any expense that is not a lawful obligation of the association commits theft as provided under F.S. 812.014 (Theft). The statute for HOAs goes further to clarify that the term “lawful obligation of the association” means an obligation that has been properly preapproved by the board and is reflected in the meeting minutes or the written budget. So, not only is the existence of a debit card part of the association records, but also it’s use and approval for use. Requirement to provide an accounting A parcel owner may make a written request to the board for a detailed accounting of any amounts they owe to the association related to the parcel, and the board must provide that information within 15 business days after receipt of the written request. After a parcel owner makes a written request to the board, they may not request another detailed accounting for at least 90 calendar days. Failure by the board to respond within 15 business days to a written request for a detailed accounting constitutes a complete waiver of any outstanding fines of the person who requested the accounting that are more than 30 days past due and for which the association has not given prior written notice of the imposition of the fines.
HOAs, but to condominium and cooperative associations. F.S. 468.4334 (3) was amended in 2025:
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Book Code: CAMFL1526
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