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Division's Categories of Major Violations and Fines for Condominium Associations Final HUD Rules Provide Guidance Significant 2004 Statutory Amendments Affecting Condominium And Homeowners' Associations

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The following violations shall be considered major due to their increased potential for consumer harm. If an enforcement resolution is utilized, the penalty will be assessed beginning with the middle of the specified range and adjusted either up or down based upon any accepted aggravating or mitigating factors. An occurrence of six or more aggravating factors or five or more mitigating factors will result in a penalty being assessed outside of the specified range. The total penalty to be assessed shall be calculated according to these guidelines or $100.00, whichever amount is greater. Finally, ill no event shall a penalty of more than $5,000.00 be imposed for a single violation. The penalties are set forth in categories 1 and 2, for each violation as follows:

Category 1: $6.00 - $10.00 per unit
Category 2: $12.00 - $20.00 per unit

CATEGORY STATUTE/RULE CITE DESCRIPTION OF CONDUCT/VIOLATION SUGGESTED PENALTY
Accounting   718.111 (12)(a)11, FS   Insufficient detail in the accounting records.   2
Records   61-B.22.002, FAC   Failure to maintain sufficient accounting records
Assessing   718.112(2)(g), FS   Failure to assess at sufficient amounts    1
Assessing   718, 115(2), FS   Failure to assess based upon proportionate share or as stated m the declaration of condominium   2
Board   718.110, FS   Failure to follow method of amendment    2
   718.112. FS
Board   718.112(2)(a) 1, FS   Improper compensation of officers or directors   1
Board   718.112(2)(d)1, FS   Failure to hold annual meeting    2
Board   718.112(2)(j), FS   Failure to maintain adequate fidelity bonding for all persons who control or distribute association funds   2
Board   718.501(2)(a), FS   Failure to pay annual fees to the division   2
Budgets   718.112(2)(e), FS   Failure to propose/adopt budget for a given year   2
Budgets   61B-22.003(1)(e)(f), FAC Failure to include reserve schedule in the proposed budget   1
Commingle   718.111(15). FS   Commingling association funds with non-association funds   2
Commingle   718.111 (15), FS   Commingling reserve funds with operating funds   1
   61 B-22.005(2), FAC
Common
Expenses   		 718.115(1), FS
61B-23-003(3), FAC 		 Using association funds for other than common expenses   2
Converter
Reserves 		 718.618(3)(b), FS   Improper use of converter reserves    1
Converter  
Reserves		 61B-22.003(1)(e)5, FAC
61B-22.006(3)(a)6, FAC
61B-22.006(6)(c), FAC 		 Failure to include converter reserve disclosures the proposed budget, year-end financial statements, or annual financial report 1
Elections   718.112(2)(d), FS  
61B-23.0021 (2), FAC		 Failure to hold election   2
Elections   718.112(2)(d)3, FS   Failure to use ballots or voting machines    2
Elections   718.112(2)(d)3, FS  
61 B-23.0021 (4), FAC		 Failure to provide, or timely provide, first notice of election   1
Elections   718.112(2)(d)3, FS
61 B-23.0021(7),(8), FAC 		 Failure to provide, or timely provide, second notice of election or omitting materials such as ballots, envelopes, and candidate information sheets   1
Elections   718.112(2)(d)3, FS 
61B-23.0021(9), FAC		 Failure to include all timely submitted names of eligible candidates on the ballot   1
Elections   61B-23.0021(10)(a)(b)FAC   Counting ineligible ballots. Not counting ballots in the presence of unit owners   1
Elections   61B-23.0021(10)(c), FAC   Failure to hold runoff election    2
Final Order   718.501(1)(d)4, FS   Failure to comply with final order of the division   2
Records   718.111(12)(a)12, FS   Failure to maintain election materials for one year   1
Records   718.111( 12)(a)6, FS   Failure to maintain minutes of meetings    1
Records   718,111(12)(b), FS   Failure to maintain records within Florida   2
Reporting   718.111(13), FS   Failure to provide the annual financial report   2
Reporting   718.111(14), FS 
61 B-22.006(7)(b), FAC		 Failure to provide year-end financial statements in a timely manner
Reporting 718.111(14), FS  
61 B-22.006(10), FAC		 Failure to provide year-end financial statements   2
Reporting   61B-22.006(1), FAC   Failure to prepare year-end financial statements using fund accounting. Failure to prepare year-end financial statements on accrual basis   1
Reporting   61 B-22.006(1), FAC   Failure to prepare year-end financial statements in accordance with Generally Accepted Accounting Principles (GAAP). Failure to have reviewed or audited year-end financial statements prepared by a Florida licensed CPA    2
Reporting   61 B-22.006(2), FAC   Failure to include one or more components of the year-end financial statements (incomplete)   1
Reporting   61B-22.006(3)(a) 1-4, FAC
61B-22.006(6)(c), FAC 		 Failure to make significant reserve fired disclosures in the year-end financial statements or animal financial report
Reporting   61B-22.006(6)(a)(b)(d)FAC   Failure to prepare the annual financial report on a cash basis. Failure to include in the annual financial report specified receipt or expenditure line items, or disclosures on limited common elements   1
Reporting   61 B-22.006(10), FAC   Providing lower level of reporting for year-end financial statements than required   2
Reserves   718.112(2)(f), FS  
61 B-22.005(3), FAC		 Failure to calculate reserve funds properly   1
Reserves   718.112(2)(f)2, FS 
61 B-22.005(6), FAC		 Failure to fund reserves in a timely manner. Failure to fully fund reserves   1
Reserves 718. 112(2)(f)2, FS 
61 B-22.005(6)(8),FAC		 Failure to follow proper method to waive or reduce reserve funding   1
Reserves   718.112(2)(f)3, FS  
61 B-22.005(7), FAC		 Failure to obtain unit owner approval prior to using reserve funds for other purposes   2
Special
Assessments 		 718.116(10). FS   Failure to use special assessment funds for intended purposes   1