General Guidance for Florida Community Associations Following a Major Storm

For community associations, the aftermath of a major hurricane brings numerous legal and logistical challenges, from assessing property damage to managing insurance claims and addressing safety concerns. The process can be overwhelming for association directors and managers.  This blog post will outline key legal considerations for condominium associations (COAs), homeowners’ associations (HOAs), and cooperatives in the storm’s wake, along with practical advice to help associations navigate these challenges.

1. Assessing and Documenting Damage

The first step for any association after a hurricane is to assess the damage to common areas and individual units, if applicable. Accurate documentation is essential for insurance claims and future legal proceedings.

Steps to Take:

  • Conduct a thorough Inspection: Hire licensed inspectors or engineers to evaluate the extent of damage to the association’s property, including roofs, structural components, landscaping, and shared amenities.
  • Document Everything: Take detailed photos and videos of all damage. Record the date and time for each, and keep written records of any immediate repairs made to prevent further damage.
  • Evaluate Safety Concerns: If there are structural concerns or safety hazards (e.g., damaged electrical lines, unstable structures), address them as a priority and restrict access to unsafe areas.

2. Filing Insurance Claims

Insurance claims are often a significant hurdle for associations following a hurricane. The process can be time-consuming, and disputes over coverage amounts are common. Associations must understand their rights under their insurance policies and Florida law.

Steps to Take:

  • Review Your Insurance Policy: Understand what your policy covers, including specific limits on hurricane damage, wind damage, and flood damage. Pay attention to the deductible requirements, as they may differ for hurricane-related claims. 
  • File Promptly: Most insurance policies have time limits for filing claims. Submit the claim as soon as possible to avoid potential delays or denials.  If your insurance company disputes the claim, offers an inadequate settlement, or delays payment, consider hiring a public adjuster or legal counsel to advocate for a fair resolution.

3. Addressing Immediate Repair Needs and Emergency Powers

 After a hurricane, associations may need to undertake immediate repairs to ensure safety and prevent further property damage. Florida law provides emergency powers to associations, enabling them to make certain decisions more quickly during a state of emergency.

Emergency Powers for Community Associations:

  • Make Necessary Repairs: Associations can make emergency repairs to protect the community without needing a formal board vote.
  • Contracting for Services: Associations may bypass competitive bidding requirements for services related to the emergency, such as debris removal, security, or temporary accommodations.
  • Conducting Virtual Meetings: Associations can hold virtual meetings if in-person meetings are impractical or unsafe due to hurricane damage or power outages.

It’s essential for associations to understand these emergency powers to avoid legal challenges while taking the necessary steps for recovery.

4. Handling Special Assessments and Reserve Fund Use

Significant hurricane damage may necessitate the use of reserve funds or special assessments to cover repair costs. Associations must follow specific procedures to comply with Florida law when accessing these funds.

Considerations for Reserve Funds and Special Assessments:

  • Accessing Reserve Funds: Florida law allows the board to use reserve funds for non-designated purposes in an emergency, but it is advisable to consult with your legal counsel before doing so to be sure the steps taken are consistent with Florida law. 
  • Implementing Special Assessments: If reserve funds are insufficient, the association may need to levy a special assessment to cover repair costs. Ensure that the special assessment is approved in accordance with your governing documents and that members are provided with clear explanations for the decision.

5. Dealing with Contractor Agreements and Disputes

In the rush to repair damage, associations often hire contractors for significant repair or reconstruction projects. However, poorly drafted contracts or misunderstandings can lead to disputes.

Best Practices for Contractor Agreements:

  • Consult with legal counsel for your Association:   Your attorney will help to ensure contracts detail the scope of work, deadlines, payment schedules, and warranties. Avoid “handshake deals” and have all agreements in writing.
  • Monitor Contractor Performance: Keep a close watch on the progress of repairs and document any issues or deviations from the contract terms.
  • Address Disputes Promptly: If a contractor fails to meet the terms of the agreement, consult with an attorney specializing in construction law to explore options for resolution, including mediation, arbitration, or legal action.

6. Ensuring Compliance with Building Codes and Safety Regulations

Hurricane damage often exposes previously unaddressed building code violations or structural vulnerabilities. Associations must ensure that all repairs and renovations meet current building codes and safety standards.

Compliance Considerations:

  • Hire Licensed Professionals: Use only licensed contractors, architects, and engineers familiar with Florida’s building codes to perform repairs.
  • Obtain Necessary Permits: Make sure all work is properly permitted. Unpermitted work can lead to fines, forced rework, and increased liability.
  • Follow Inspection Requirements: After repairs, ensure that all necessary inspections are completed to verify compliance with local building codes.

7. Communicating with Residents and Managing Expectations

Effective communication is essential during the recovery phase. Residents need to be informed about the status of repairs, insurance claims, and any temporary rules or restrictions in place due to ongoing work.

Communication Tips:

  • Provide Regular Updates: Send weekly email newsletters, social media updates, or hold town hall meetings to keep residents informed.
  • Explain Temporary Rules: If certain amenities are closed or special rules are in place (e.g., parking restrictions), clearly communicate the reasons and expected duration
  • Offer Support Resources: Share information on community resources, such as FEMA assistance, local relief efforts, or mental health services.

8. Handling Legal Claims from Homeowners

In some cases, homeowners may file claims against the association, alleging negligence or inadequate response to hurricane damage. It is crucial to be prepared to defend against these claims by demonstrating that the association acted within its legal obligations.

Steps to Mitigate Legal Risks:

  • Follow Proper Procedures: Ensure that all board decisions, especially concerning emergency actions and special assessments, are properly documented in meeting minutes.
  • Maintain Records of Repairs and Communication: Keep thorough records of all repairs, communications with homeowners, and efforts to address safety concerns.
  • Consult Legal Counsel: Work with an attorney experienced in community association law to develop strategies for handling potential claims and resolving disputes.

Conclusion

The aftermath of a major storm presents significant legal challenges for Florida community associations, but with the right approach, your association can navigate these issues effectively. By focusing on timely damage assessment, proper insurance claim handling, and compliance with Florida law, your community can recover and rebuild stronger than before.

If your association is facing legal challenges or needs guidance on hurricane-related matters, be sure to contact your association’s legal counsel. Experienced attorneys can offer valuable assistance to your community during this critical time.

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