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The Condominium Complaint Process

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The DivisionThe Division The Department of Business and Professional Regulations, Division of

Florida Condominiums, Timeshares and Mobile Homes, (“Division”) is charged among other things with the responsibility of ensuring that condominiums, cooperative, timeshares and mobile home parks comply with the requirements of the Chapters, 326, 718, 719, 721, and 723 and their associated administrative rules.

With respect to condominium complaints, the Bureau of Compliance, (“Bureau”) within the Division, handles complaints alleging violations of the Condominium Act and the administrative rules related to residential condominiums.

The Bureau’s goal in resolving complaints is to provide education to board members and unit owners.

The Bureau will attempt to resolve complaints against developers and associations as provided in the Division’s enforcement resolution guidelines, (61B-20 and 61B-21), which are based primarily on the harm caused by the alleged violation, and the association's compliance history.

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What is an accepted complaint? What is an accepted complaint?

61B-21.001(1)(a) defines an accepted 61B-21.001(1)(a) defines an accepted complaint as follows:complaint as follows:• (a) “Accepted complaint” means a (a) “Accepted complaint” means a

complaint received by the division complaint received by the division containing sufficient documentation and containing sufficient documentation and addressing a subject within the addressing a subject within the jurisdiction of the division, pursuant to jurisdiction of the division, pursuant to Section 718.501(1), F.S.Section 718.501(1), F.S.

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Accepted Complaint continued…Accepted Complaint continued…The complaint must: Allege a violation of Chapter 718, F.S., or the Division’s rules; Contain a plain statement of specific facts upon which the

complainant bases the allegation that a violation of Chapter 718, F.S. or a rule occurred. A complaint that merely recites the statutes or is based on mere suspicion or speculation, without a plain statement of facts clearly describing what is alleged to have occurred, will not be accepted;

Contain sufficient evidentiary documentation. For example, a complaint alleging access to records must contain the request to access the association records; and

It must be an issue that the Division has jurisdiction over.

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Accepted Complaint continued…Accepted Complaint continued…

A complaint that fails to meet these criteria will A complaint that fails to meet these criteria will be returned to the complainant with an be returned to the complainant with an explanation as to why it was not accepted explanation as to why it was not accepted with suggestions as to how the complaint with suggestions as to how the complaint may be made acceptable, and resubmitted. may be made acceptable, and resubmitted.

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What is the Division’s Jurisdiction?What is the Division’s Jurisdiction?

Prior to turnover of control of the condominium association from the developer to the unit owners, the Division has jurisdiction to enforce compliance with Chapter 718 and the associated administrative rules.

After turnover of control of the condominium association, the Division’s jurisdiction in a condominium association is limited to the following issues:

• Financial; • Election; • Access to Records.

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Financial IssuesFinancial Issues

A financial issue means an allegation that A financial issue means an allegation that involves the maintenance or accuracy of involves the maintenance or accuracy of accounting records; assessments, accounting records; assessments, including the process by which including the process by which assessments are imposed; budgets, assessments are imposed; budgets, including the budget preparation and including the budget preparation and adoption process; reserves including the adoption process; reserves including the amounts and the use of such reserves amounts and the use of such reserves for their proper purpose; financial for their proper purpose; financial reporting; and use of association funds.reporting; and use of association funds.

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Financial Issues continued…Financial Issues continued…Specifically, financial issues would be as follows:

• Failure to maintain accounting records; • Assessment percentages or insufficient

budget;• Developer assessment guarantees; • Financial reporting;• Budget preparation and adoption; • Reserve funding and use of reserves for

other purposes;• Transfer fees;

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Financial Issues continued…Financial Issues continued…• Bids;• Transfer audits; • Converter reserves; • Escrow of purchaser deposits; • Board member compensation; • Using association funds for non common

expenses; • Using special assessment funds for purposes

other than intended; • Insurance proceeds and related expenses. .

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Election IssuesElection Issues

Election issues include but are not limited to Election issues include but are not limited to the following:the following:

• Notice of the election;Notice of the election;• Ballots, envelopes, certification forms;Ballots, envelopes, certification forms;• Candidate eligibility;Candidate eligibility;• The election.The election.

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Access to RecordsAccess to Records

Access to records issues include but are not Access to records issues include but are not limited to the following:limited to the following:

• Unit owner denial of access to records;Unit owner denial of access to records;• Records that are open for inspection and Records that are open for inspection and

records that are not open for inspection;records that are not open for inspection;• Maintenance of records.Maintenance of records.

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The Complaint FormThe Complaint Form

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Filling Out the Complaint FormFilling Out the Complaint Form Enter your name, mailing address, telephone number(s) and e-mail Enter your name, mailing address, telephone number(s) and e-mail

address.address. Indicate whether your complaint is against the developer or against Indicate whether your complaint is against the developer or against

your association. your association. Enter the name of that partyEnter the name of that party, followed by the , followed by the name of the developer’s principal officer or the association’s name of the developer’s principal officer or the association’s president, as applicable, followed by that party’s address and president, as applicable, followed by that party’s address and telephone number, if known.telephone number, if known.

State whether you have notified the party against whom the State whether you have notified the party against whom the complaint is filed. If so, state how you provided such notification.complaint is filed. If so, state how you provided such notification.

Identify the date that the declaration of condominium was recorded Identify the date that the declaration of condominium was recorded in the public records, if known. In the case of a cooperative, identify in the public records, if known. In the case of a cooperative, identify the date the association was incorporated. Insert “unknown” if you the date the association was incorporated. Insert “unknown” if you do not know this date.do not know this date.

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Complaint Form continued…Complaint Form continued… Check in the appropriate space whether turnover of control has Check in the appropriate space whether turnover of control has

occurred, (i.e., whether the developer has turned over control of the occurred, (i.e., whether the developer has turned over control of the association to the non-developer unit owners).association to the non-developer unit owners).

If you have retained an attorney regarding this complaint, please If you have retained an attorney regarding this complaint, please indicate whether it is permissible for the Division to contact your indicate whether it is permissible for the Division to contact your attorney. If so, please provide the attorney’s name, address, and attorney. If so, please provide the attorney’s name, address, and telephone number.telephone number.

If you and/or your attorney have filed a lawsuit pertaining to the If you and/or your attorney have filed a lawsuit pertaining to the issue(s) in this complaint, please indicate and attach copies of the issue(s) in this complaint, please indicate and attach copies of the court complaint and any other pertinent documents (e.g., pleadings, court complaint and any other pertinent documents (e.g., pleadings, orders, et cetera). Additionally, please indicate whether a petition orders, et cetera). Additionally, please indicate whether a petition for a Declaratory Statement and/or Mandatory Non-binding for a Declaratory Statement and/or Mandatory Non-binding Arbitration has been filed with the Division regarding your Arbitration has been filed with the Division regarding your allegations.allegations.

Please include a short and plain statement of each issue you wish Please include a short and plain statement of each issue you wish the Division to review. the Division to review.

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Where to file?Where to file?

Division of Florida Condominiums, Division of Florida Condominiums, Timeshares and Mobile Homes Timeshares and Mobile Homes Bureau of Compliance Bureau of Compliance

1940 N. Monroe Street, 1940 N. Monroe Street, Tallahassee, Fl 32399-1031Tallahassee, Fl 32399-1031

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Compliance OfficesCompliance Offices

The Bureau of Compliance has offices in:The Bureau of Compliance has offices in: TallahasseeTallahassee Orlando Orlando Tampa Tampa Ft. Lauderdale/Miami. Ft. Lauderdale/Miami.

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Once the Complaint is received by the Once the Complaint is received by the DivisionDivision

Cases are normally assigned to the investigators within 3 Cases are normally assigned to the investigators within 3 days of the receipt.days of the receipt.

The investigator will contact the complainant to discuss The investigator will contact the complainant to discuss the issues in the complaint. This will be to determine the issues in the complaint. This will be to determine whether the complaint is within our jurisdiction and if whether the complaint is within our jurisdiction and if additional information is needed.additional information is needed.

This will be followed up with a letter to the complainant This will be followed up with a letter to the complainant acknowledging the complaint.acknowledging the complaint.

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Initial Contact with ComplainantInitial Contact with Complainant

Before taking action on a complaint, the investigator obtains Before taking action on a complaint, the investigator obtains information and documentation sufficient to constitute a reasonable information and documentation sufficient to constitute a reasonable basis for concluding that a violation has occurred.basis for concluding that a violation has occurred.

• For example, a complainant who merely states that, "The Division For example, a complainant who merely states that, "The Division needs to review our books because these guys are crooked" has needs to review our books because these guys are crooked" has not stated a reasonable basis for concluding that a violation has not stated a reasonable basis for concluding that a violation has occurred.occurred.

• On the other hand, if the complainant states, "I have looked at my On the other hand, if the complainant states, "I have looked at my association's records and the reserve account ledger balances don't association's records and the reserve account ledger balances don't match what is in the reserve bank account" they have provided a match what is in the reserve bank account" they have provided a reasonable basis for concluding that a violation may have occurred.reasonable basis for concluding that a violation may have occurred.

• If a complainant cannot or refuses to provide sufficient evidence to If a complainant cannot or refuses to provide sufficient evidence to provide a reasonable basis, the case may be closed due to a lack of provide a reasonable basis, the case may be closed due to a lack of documentation. documentation.

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Initial Contact with Complainant Initial Contact with Complainant continued…continued…

In some cases the Bureau would accept a complaint without any In some cases the Bureau would accept a complaint without any evidence while in others evidence would be required.evidence while in others evidence would be required.

• Specifically, if the complaint is that a unit owner didn’t get the year-Specifically, if the complaint is that a unit owner didn’t get the year-end financial report or a notice of it’s availability, there is no end financial report or a notice of it’s availability, there is no evidence that the complainant can provide in this type of complaint, evidence that the complainant can provide in this type of complaint, so we would investigate the issue.so we would investigate the issue.

• In a case were the complaint is that the board used reserves for In a case were the complaint is that the board used reserves for other than their intended purpose, the investigator would ask the other than their intended purpose, the investigator would ask the complainant how they know this. If they say, “I was out at the pool complainant how they know this. If they say, “I was out at the pool talking to Joe and he told me”, this is not sufficient evidence. At this talking to Joe and he told me”, this is not sufficient evidence. At this point, the investigator would indicate that either Joe needs to file the point, the investigator would indicate that either Joe needs to file the complaint or that the complainant would need to provide some form complaint or that the complainant would need to provide some form of evidence to indicate a possible violation. (May be a set of of evidence to indicate a possible violation. (May be a set of financial statements, ledgers, or bank statements.) financial statements, ledgers, or bank statements.)

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Identifying Allegations & Determining Identifying Allegations & Determining JurisdictionJurisdiction

Each complaint will be analyzed to determine the following:

Who is the complaint filed against;

The allegations; and

Whether the case should be handled by a financial investigator.

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Identifying Allegations & Determining Identifying Allegations & Determining Jurisdiction continued…Jurisdiction continued…

Complainants alleging that crimes have been committed Complainants alleging that crimes have been committed will be informed that the Division does not conduct will be informed that the Division does not conduct criminal investigations and that they should consider criminal investigations and that they should consider presenting their evidence to their local law enforcement presenting their evidence to their local law enforcement agency or local State’s Attorney Office.agency or local State’s Attorney Office.

If evidence of criminal activity becomes apparent during If evidence of criminal activity becomes apparent during an investigation, the matter may be referred to the an investigation, the matter may be referred to the appropriate law enforcement agency. appropriate law enforcement agency.

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Non-Jurisdiction ComplaintsNon-Jurisdiction Complaints

If the association is a master association, possible Ch. 720, or is a hotel-condominium, the Division may not have jurisdiction.

The Division does not have jurisdiction over CAM’s, contractors or CPA’s. However, the Bureau of Investigative Services within the Department does have jurisdiction over these individuals and may be able to assist the complainants in these instances.

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Resolution of ComplaintsResolution of Complaints

The Bureau’s goal in resolving complaints is to provide education to board members and unit owners to ensure compliance with the Condominium Act and the associated administrative rules.

The Bureau will attempt to resolve complaints against developers and associations as provided in the Division’s enforcement resolution guidelines, (61B-20 and 61B-21), which are based primarily on the harm caused by the alleged violation, and the association's compliance history.

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Customer Contact CenterCustomer Contact Center For additional information concerning the

Condominium or Cooperative Acts and to request copies of educational materials available to condominium and cooperative unit owners you may contact the Department’s Customer Contact Center at Center at 1-800-226-9101 (Florida Only) or 850-488-1122.

You may also e-mail the Department at call.center@dbpr.state.fl.us

Statutes and other information concerning the division are available on the World Wide Web atwww.myfloridalicense.com/dbpr/lsc/index.html