Conflicts of Interest: CAMs and CAM Firms

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Modified: June 30, 2025

Article

Condominium & Cooperative Associations

CS/CS/HB 913

 

Conflicts of Interest: CAMs and CAM Firms

pp. 28–32, 40–63; §468.4335, 718.111 F.S.

 

Specifies that a rebuttable presumption of a conflict of interest exists if, without prior notice to the board of an association, a CAM or CAM firm (including directors, officers, and persons with a financial interest in a CAM firm, or a relative of such person):

  • Proposes to enter into a contract or other transaction with the association, or enters into a contract for goods or services with the association, for services other than community association management services.

  • Holds an interest in or receives compensation from a person as defined in §1.01(3), F.S., which conducts business with, or proposes to enter into a contract or other transaction with, the association.

 

Under the bill, if an association receives and considers a bid that exceeds $2,500 for a good or service other than community association management services, which is or may reasonably be construed to be a conflict of interest described above, the association must solicit multiple bids from other third-party providers of such goods or services. This requirement does not apply to any activity or provision of goods or services that are disclosed in a management services contract as a conflict of interest.

 

Requires the meeting notice for each meeting at which an association’s board will consider a proposed activity, which is or may be a potential conflict of interest, to:

  • Include a description of the proposed activity.

  • Disclose the possible conflict of interest.

  • Include a copy of all contracts and transactional documents related to the proposed activity.

 

Removes the requirement to disclose the existence of an actual or potential conflict of interest and any related contract or other transactional document to the members of an association at the next regular or special meeting of the members.

 

Provides that if an association’s board finds that a CAM or CAM firm (including directors, officers, and persons with a financial interest in a CAM firm, or a relative of such persons) has violated any of the above provisions, the management services contract is voidable by the association and may be terminated by delivering written notice of such termination.

 

Removes the requirement to obtain the prior approval of 20 percent of an association’s voting interests before an association may terminate such a contract.

 

Effective date: July 1, 2025, unless otherwise provided in the bill.

Chapter No. 2025-175, LOF