Bill Text: FL H0115 | 2010 | Regular Session | Comm Sub

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Bill Title: Residential Properties

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2010-04-30 - Died in Committee on Insurance, Business, & Financial Affairs Policy (GGPC), companion bill(s) passed, see CS/CS/CS/SB 1196 (Ch. 2010-174) [H0115 Detail]

Download: Florida-2010-H0115-Comm_Sub.html

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CS/HB 115

1	A bill to be entitled
2	An act relating to residential properties; amending s.
3	34.01, F.S.; correcting a cross-reference to conform to
4	changes made by the act; amending s. 468.436, F.S.;
5	revising a ground for disciplinary action relating to
6	misconduct or negligence; requiring the Department of
7	Business and Professional Regulation to enter an order
8	permanently revoking the license of a community
9	association manager under certain circumstances; amending
10	s. 718.103, F.S.; revising the definition of the term
11	"developer" to exclude a bulk assignee or bulk buyer;
12	amending s. 718.111, F.S.; providing requirements for an
13	association to borrow funds or commit to a line of credit,
14	including a meeting of the board of administration and
15	prior notice; providing requirements for association
16	access to a unit, including prior notice; providing an
17	exception for emergencies; amending s. 718.112, F.S.;
18	revising notice requirements for board of administration
19	meetings; revising requirements for the reappointment of
20	certain board members; providing an exception to the
21	expiration of the terms of members of certain boards;
22	revising board eligibility requirements; revising notice
23	requirements for board candidates; establishing
24	requirements for newly elected board members; providing
25	requirements for bylaw amendments by a board of
26	administration; amending s. 718.115, F.S.; requiring that
27	certain services obtained pursuant to a bulk contract as
28	provided in the declaration be deemed a common expense;
29	requiring that such contracts contain certain provisions;
30	authorizing the cancellation of certain contracts;
31	amending s. 718.116, F.S.; authorizing association demands
32	for assessment payments from tenants of delinquent owners
33	during pendency of a foreclosure action of a condominium
34	unit; providing for notice; providing for credits against
35	rent for assessment payments by tenants; providing for
36	eviction proceedings for nonpayment; providing for effect
37	of provisions on rights and duties of the tenant and
38	association; providing that payments from tenants shall
39	not be considered a breach of any lease between the tenant
40	and the unit owner nor serve as cause for eviction or
41	other action for failure to pay rent; limiting the amount
42	of assessments for which a tenant is held responsible;
43	amending s. 718.1265, F.S.; limiting the exercise of
44	specified special powers under a declared state of
45	emergency unless a certain number of units are rendered
46	uninhabitable by the emergency; amending s. 718.301, F.S.;
47	revising conditions under which unit owners other than the
48	developer may elect not less than a majority of the
49	members of the board of administration of an association;
50	amending s. 718.303, F.S.; revising provisions relating to
51	levy of fines; providing for suspension of certain rights
52	of access and voting rights under certain circumstances
53	relating to nonpayment of assessments, fines, or other
54	charges payable to the association; amending s. 718.501,
55	F.S.; providing for jurisdiction of the Division of
56	Florida Condominiums, Timeshares, and Mobile Homes of the
57	department to investigate complaints concerning failure to
58	maintain common elements; prohibiting an officer or
59	director from acting as such for a specified period after
60	having been found to have committed specified violations;
61	providing for payment of restitution and costs of
62	investigation and prosecution in certain circumstances;
63	amending s. 718.5012, F.S.; providing a responsibility of
64	the ombudsman to prepare and adopt a "Florida Condominium
65	Handbook"; requiring the publishing and updating of the
66	handbook to be done in conjunction with the division;
67	providing the purpose of the handbook; requiring the
68	handbook to be published on the ombudsman's Internet
69	website; creating part VII of ch. 718, F.S., relating to
70	distressed condominium relief; creating s. 718.701, F.S.;
71	providing a short title; creating s. 718.702, F.S.;
72	providing legislative findings and intent; creating s.
73	718.703, F.S.; defining the terms "bulk assignee" and
74	"bulk buyer"; creating s. 718.704, F.S.; providing for the
75	assignment of developer rights to and the assumption of
76	developer rights by a bulk assignee; specifying
77	liabilities of bulk assignees and bulk buyers; providing
78	exceptions; providing additional responsibilities of bulk
79	assignees and bulk buyers; authorizing certain entities to
80	assign developer rights to a bulk assignee; limiting the
81	number of bulk assignees at any given time; creating s.
82	718.705, F.S.; providing for the transfer of control of a
83	board of administration; providing effects of such
84	transfer on parcels acquired by a bulk assignee; providing
85	obligations of a bulk assignee upon the transfer of
86	control of a board of administration; requiring that a
87	bulk assignee certify certain information in writing;
88	providing for the resolution of a conflict between
89	specified provisions of state law; providing that the
90	failure of a bulk assignee or bulk buyer to comply with
91	specified provisions of state law results in the loss of
92	certain protections and exemptions; creating s. 718.706,
93	F.S.; requiring that a bulk assignee or bulk buyer file
94	certain information with the division before offering any
95	units for sale or lease in excess of a specified term;
96	requiring that a copy of such information be provided to a
97	prospective purchaser; requiring that certain contracts
98	and disclosure statements contain specified statements;
99	requiring that a bulk assignee or bulk buyer comply with
100	certain disclosure requirements; prohibiting a bulk
101	assignee from taking certain actions on behalf of an
102	association while the bulk assignee is in control of the
103	board of administration of the association and requiring
104	that such bulk assignee comply with certain requirements;
105	requiring that a bulk assignee or bulk buyer comply with
106	certain requirements regarding certain contracts;
107	providing unit owners with specified protections regarding
108	certain contracts; requiring that a bulk buyer comply with
109	certain requirements regarding the transfer of a unit;
110	creating s. 718.707, F.S.; prohibiting a person from being
111	classified as a bulk assignee or bulk buyer unless
112	condominium parcels were acquired before a specified date;
113	providing for the determination of the date of acquisition
114	of a parcel; creating s. 718.708, F.S.; providing that the
115	assignment of developer rights to a bulk assignee or bulk
116	buyer does not release a developer from certain
117	liabilities; preserving certain liabilities for certain
118	parties; amending s. 720.302, F.S.; correcting a cross-
119	reference to conform to changes made by the act;
120	establishing legislative intent; amending s. 720.303,
121	F.S.; revising provisions relating to homeowners'
122	association board meetings, inspection and copying of
123	records, reserve accounts of budgets, and recall of
124	directors; prohibiting a salary or compensation for
125	certain association personnel; providing exceptions;
126	providing requirements for the borrowing of funds or
127	committing to a line of credit by the board; providing
128	requirements relating to transfer fees; amending s.
129	720.304, F.S.; revising requirements with respect to the
130	display of flags; amending s. 720.305, F.S.; authorizing
131	fines assessed against members which exceed a certain
132	amount to become a lien against a parcel; amending s.
133	720.306, F.S.; providing requirements for secret ballots;
134	requiring newly elected members of a board of directors to
135	make certain certifications in writing to the association;
136	providing for disqualification for failure to make such
137	certifications; requiring an association to retain
138	certifications for a specified time; amending s. 720.3085,
139	F.S.; requiring a tenant in a unit in which the regular
140	assessments are delinquent to pay future regular
141	assessments to the association; requiring notice;
142	providing for eviction by the association; specifying
143	rights of the tenant; providing that payments from tenants
144	shall not be considered a breach of any lease between the
145	tenant and the homeowner nor serve as cause for eviction
146	or other action for failure to pay rent; limiting the
147	amount of assessments for which a tenant is held
148	responsible; creating s. 720.3095, F.S.; providing
149	requirements of maintenance and management contracts of a
150	homeowners' association; requiring disclosures; providing
151	a penalty; providing exceptions; creating s. 720.3096,
152	F.S.; limiting contracts entered into by a homeowners'
153	association; providing requirements for such contracts;
154	repealing s. 720.311, F.S., relating to a procedure for
155	dispute resolution in homeowners' associations; amending
156	s. 720.401, F.S.; requiring that the disclosure summary to
157	prospective parcel owners include additional provisions;
158	creating part IV of ch. 720, F.S., relating to dispute
159	resolution; creating s. 720.501, F.S.; providing a short
160	title; creating s. 720.502, F.S.; providing legislative
161	findings; creating s. 720.503, F.S.; specifying
162	applicability of provisions for mediation and arbitration
163	of disputes in homeowners' associations; providing
164	exceptions; providing for injunctive relief; providing for
165	the tolling of applicable statutes of limitations;
166	creating s. 720.504, F.S.; requiring that the notice of
167	dispute be delivered before referral to mediation or
168	arbitration; providing notice requirements; creating s.
169	720.505, F.S.; creating a statutory notice form for
170	referral to mediation; providing delivery requirements;
171	requiring parties to share costs; requiring the selection
172	of a mediator and times to meet; providing penalties for
173	failure to mediate; creating s. 720.506, F.S.; creating an
174	opt-out provision and procedures; creating s. 720.507,
175	F.S.; creating a statutory notice form for referral to
176	arbitration; providing delivery requirements; requiring
177	parties to share costs; requiring the selection of an
178	arbitrator and times to meet; providing penalties for
179	failure to arbitrate; providing subpoena powers and
180	requirements; providing requirements for and repercussions
181	of subsequent judicial resolution of the dispute; creating
182	s. 720.508, F.S.; providing for rules of procedure;
183	providing for confidentiality; providing applicability to
184	other rules of procedure and provisions of law; specifying
185	that arbitration awards have certain precedential value;
186	creating s. 720.509, F.S.; specifying qualifications for
187	mediators and arbitrators; creating s. 720.510, F.S.;
188	providing for enforcement of mediation agreements and
189	arbitration awards; requiring all new residential
190	construction in a deed-restricted community that requires
191	mandatory membership in the association under specified
192	provisions of Florida law to comply with specified
193	provisions of federal law; providing an effective date.
194
195	Be It Enacted by the Legislature of the State of Florida:
196
197	Section 1. Paragraph (d) of subsection (1) of section
198	34.01, Florida Statutes, is amended to read:
199	34.01 Jurisdiction of county court.-
200	(1) County courts shall have original jurisdiction:
201	(d) Of disputes occurring in the homeowners' associations
202	as described in part IV of chapter 720 s. 720.311(2)(a), which
203	shall be concurrent with jurisdiction of the circuit courts.
204	Section 2. Paragraph (b) of subsection (2) of section
205	468.436, Florida Statutes, is amended, and subsection (6) is
206	added to that section, to read:
207	468.436 Disciplinary proceedings.-
208	(2) The following acts constitute grounds for which the
209	disciplinary actions in subsection (4) may be taken:
210	(b)1. Violation of any provision of this part.
211	2. Violation of any lawful order or rule rendered or
212	adopted by the department or the council.
213	3. Being convicted of or pleading nolo contendere to a
214	felony in any court in the United States.
215	4. Obtaining a license or certification or any other
216	order, ruling, or authorization by means of fraud,
217	misrepresentation, or concealment of material facts.
218	5. Committing acts of gross misconduct or gross negligence
219	in connection with the profession.
220	6. Contracting, on behalf of an association, with any
221	entity in which the licensee has a financial interest that is
222	not disclosed.
223	(6) Upon the fifth or later finding that a community
224	association manager is guilty of any of the grounds set forth in
225	subsection (2), or upon the third or later finding that a
226	community association manager is guilty of a specific ground for
227	which the disciplinary actions set forth in subsection (2) may
228	be taken, the department's discretion under subsection (4) shall
229	not apply and the division shall enter an order permanently
230	revoking the license.
231	Section 3. Subsection (16) of section 718.103, Florida
232	Statutes, is amended to read:
233	718.103 Definitions.-As used in this chapter, the term:
234	(16) "Developer" means a person who creates a condominium
235	or offers condominium parcels for sale or lease in the ordinary
236	course of business, but does not include:
237	(a) An owner or lessee of a condominium or cooperative
238	unit who has acquired the unit for his or her own occupancy;,
239	nor does it include
240	(b) A cooperative association which creates a condominium
241	by conversion of an existing residential cooperative after
242	control of the association has been transferred to the unit
243	owners if, following the conversion, the unit owners will be the
244	same persons who were unit owners of the cooperative and no
245	units are offered for sale or lease to the public as part of the
246	plan of conversion;.
247	(c) A bulk assignee or bulk buyer as defined in s.
248	718.703; or
249	(d) A state, county, or municipal entity is not a
250	developer for any purposes under this act when it is acting as a
251	lessor and not otherwise named as a developer in the declaration
252	of condominium association.
253	Section 4. Subsections (3) and (5) of section 718.111,
254	Florida Statutes, are amended to read:
255	718.111 The association.-
256	(3) POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
257	SUE, AND BE SUED.-
258	(a) The association may contract, sue, or be sued with
259	respect to the exercise or nonexercise of its powers. For these
260	purposes, the powers of the association include, but are not
261	limited to, the maintenance, management, and operation of the
262	condominium property.
263	(b) After control of the association is obtained by unit
264	owners other than the developer, the association may institute,
265	maintain, settle, or appeal actions or hearings in its name on
266	behalf of all unit owners concerning matters of common interest
267	to most or all unit owners, including, but not limited to, the
268	common elements; the roof and structural components of a
269	building or other improvements; mechanical, electrical, and
270	plumbing elements serving an improvement or a building;
271	representations of the developer pertaining to any existing or
272	proposed commonly used facilities; and protesting ad valorem
273	taxes on commonly used facilities and on units; and may defend
274	actions in eminent domain or bring inverse condemnation actions.
275	(c) If the association has the authority to maintain a
276	class action, the association may be joined in an action as
277	representative of that class with reference to litigation and
278	disputes involving the matters for which the association could
279	bring a class action. Nothing herein limits any statutory or
280	common-law right of any individual unit owner or class of unit
281	owners to bring any action without participation by the
282	association which may otherwise be available.
283	(d) The borrowing of funds or committing to a line of
284	credit by the board of administration shall be considered a
285	special assessment, and any meeting of the board of
286	administration to discuss such matters must be noticed as
287	provided in s. 718.112(2)(c). The board may not borrow funds or
288	enter into a line of credit for any purpose unless the specific
289	use of the funds from the loan or line of credit is set forth in
290	the notice of meeting with the same specificity as required for
291	a special assessment or unless the borrowing or line of credit
292	has received the prior approval of at least two-thirds of the
293	voting interests of the association.
294	(5) RIGHT OF ACCESS TO UNITS.-The association has the
295	irrevocable right of access to each unit during reasonable
296	hours, when necessary for the maintenance, repair, or
297	replacement of any common elements or of any portion of a unit
298	to be maintained by the association pursuant to the declaration
299	or as necessary to prevent damage to the common elements or to a
300	unit or units. Except in cases of emergency, the association
301	must give the unit owner advance written notice of not less than
302	24 hours of its intent to access the unit and such access must
303	be by two persons, one of whom must be a member of the board of
304	administration or a manager or employee of the association and
305	one of whom must be an authorized representative of the
306	association. The identity of the authorized representative
307	seeking access to the unit shall be provided to the unit owner
308	prior to entering the unit.
309	Section 5. Paragraphs (b), (c), (d), and (h) of subsection
310	(2) of section 718.112, Florida Statutes, are amended to read:
311	718.112 Bylaws.-
312	(2) REQUIRED PROVISIONS.-The bylaws shall provide for the
313	following and, if they do not do so, shall be deemed to include
314	the following:
315	(b) Quorum; voting requirements; proxies.-
316	1. Unless a lower number is provided in the bylaws, the
317	percentage of voting interests required to constitute a quorum
318	at a meeting of the members shall be a majority of the voting
319	interests. Unless otherwise provided in this chapter or in the
320	declaration, articles of incorporation, or bylaws, and except as
321	provided in sub-subparagraph subparagraph (d)3.a., decisions
322	shall be made by owners of a majority of the voting interests
323	represented at a meeting at which a quorum is present.
324	2. Except as specifically otherwise provided herein, after
325	January 1, 1992, unit owners may not vote by general proxy, but
326	may vote by limited proxies substantially conforming to a
327	limited proxy form adopted by the division. No voting interest
328	or consent right allocated to a unit owned by the association
329	shall be exercised or considered for any purpose, whether for a
330	quorum, an election, or otherwise. Limited proxies and general
331	proxies may be used to establish a quorum. Limited proxies shall
332	be used for votes taken to waive or reduce reserves in
333	accordance with subparagraph (f)2.; for votes taken to waive the
334	financial reporting requirements of s. 718.111(13); for votes
335	taken to amend the declaration pursuant to s. 718.110; for votes
336	taken to amend the articles of incorporation or bylaws pursuant
337	to this section; and for any other matter for which this chapter
338	requires or permits a vote of the unit owners. Except as
339	provided in paragraph (d), after January 1, 1992, no proxy,
340	limited or general, shall be used in the election of board
341	members. General proxies may be used for other matters for which
342	limited proxies are not required, and may also be used in voting
343	for nonsubstantive changes to items for which a limited proxy is
344	required and given. Notwithstanding the provisions of this
345	subparagraph, unit owners may vote in person at unit owner
346	meetings. Nothing contained herein shall limit the use of
347	general proxies or require the use of limited proxies for any
348	agenda item or election at any meeting of a timeshare
349	condominium association.
350	3. Any proxy given shall be effective only for the
351	specific meeting for which originally given and any lawfully
352	adjourned meetings thereof. In no event shall any proxy be valid
353	for a period longer than 90 days after the date of the first
354	meeting for which it was given. Every proxy is revocable at any
355	time at the pleasure of the unit owner executing it.
356	4. A member of the board of administration or a committee
357	may submit in writing his or her agreement or disagreement with
358	any action taken at a meeting that the member did not attend.
359	This agreement or disagreement may not be used as a vote for or
360	against the action taken and may not be used for the purposes of
361	creating a quorum.
362	5. When any of the board or committee members meet by
363	telephone conference, those board or committee members attending
364	by telephone conference may be counted toward obtaining a quorum
365	and may vote by telephone. A telephone speaker must be used so
366	that the conversation of those board or committee members
367	attending by telephone may be heard by the board or committee
368	members attending in person as well as by any unit owners
369	present at a meeting.
370	(c) Board of administration meetings.-Meetings of the
371	board of administration at which a quorum of the members is
372	present shall be open to all unit owners. Any unit owner may
373	tape record or videotape meetings of the board of
374	administration. The right to attend such meetings includes the
375	right to speak at such meetings with reference to all designated
376	agenda items. The division shall adopt reasonable rules
377	governing the tape recording and videotaping of the meeting. The
378	association may adopt written reasonable rules governing the
379	frequency, duration, and manner of unit owner statements.
380	Adequate notice of all meetings, which notice shall specifically
381	incorporate an identification of agenda items, shall be posted
382	conspicuously on the condominium property at least 48 continuous
383	hours preceding the meeting except in an emergency. If 20
384	percent of the voting interests petition the board to address an
385	item of business, the board shall at its next regular board
386	meeting or at a special meeting of the board, but not later than
387	60 days after the receipt of the petition, place the item on the
388	agenda. Any item not included on the notice may be taken up on
389	an emergency basis by at least a majority plus one of the
390	members of the board. Such emergency action shall be noticed and
391	ratified at the next regular meeting of the board. However,
392	written notice of any meeting at which nonemergency special
393	assessments, or at which amendment to rules regarding unit use,
394	will be considered shall be mailed, delivered, or electronically
395	transmitted to the unit owners and posted conspicuously on the
396	condominium property not less than 14 days prior to the meeting.
397	Evidence of compliance with this 14-day notice shall be made by
398	an affidavit executed by the person providing the notice and
399	filed among the official records of the association. Upon notice
400	to the unit owners, the board shall by duly adopted rule
401	designate a specific location on the condominium property or
402	association property upon which all notices of board meetings
403	shall be posted. If there is no condominium property or
404	association property upon which notices can be posted, notices
405	of board meetings shall be mailed, delivered, or electronically
406	transmitted at least 14 days before the meeting to the owner of
407	each unit. In lieu of or in addition to the physical posting of
408	notice of any meeting of the board of administration on the
409	condominium property, the association may, by reasonable rule,
410	adopt a procedure for conspicuously posting and repeatedly
411	broadcasting the notice and the agenda on a closed-circuit cable
412	television system serving the condominium association. However,
413	if broadcast notice is used in lieu of a notice posted
414	physically on the condominium property, the notice and agenda
415	must be broadcast at least four times every broadcast hour of
416	each day that a posted notice is otherwise required under this
417	section. When broadcast notice is provided, the notice and
418	agenda must be broadcast in a manner and for a sufficient
419	continuous length of time so as to allow an average reader to
420	observe the notice and read and comprehend the entire content of
421	the notice and the agenda. Notice of any meeting in which
422	regular or special assessments against unit owners are to be
423	considered for any reason shall specifically state that
424	assessments will be considered and the nature of, the actual
425	estimated cost of, and a description of the purposes for such
426	assessments. Meetings of a committee to take final action on
427	behalf of the board or make recommendations to the board
428	regarding the association budget are subject to the provisions
429	of this paragraph. Meetings of a committee that does not take
430	final action on behalf of the board or make recommendations to
431	the board regarding the association budget are subject to the
432	provisions of this section, unless those meetings are exempted
433	from this section by the bylaws of the association.
434	Notwithstanding any other law, the requirement that board
435	meetings and committee meetings be open to the unit owners is
436	inapplicable to meetings between the board or a committee and
437	the association's attorney, with respect to proposed or pending
438	litigation, when the meeting is held for the purpose of seeking
439	or rendering legal advice.
440	(d) Unit owner meetings.-
441	1. There shall be an annual meeting of the unit owners
442	held at the location provided in the association bylaws and, if
443	the bylaws are silent as to the location, the meeting shall be
444	held within 45 miles of the condominium property. However, such
445	distance requirement does not apply to an association governing
446	a timeshare condominium. Unless the bylaws provide otherwise, a
447	vacancy on the board caused by the expiration of a director's
448	term shall be filled by electing a new board member, and the
449	election shall be by secret ballot; however, if the number of
450	vacancies equals or exceeds the number of candidates, no
451	election is required. Except in an association governing a
452	timeshare condominium, the terms of all members of the board
453	shall expire at the annual meeting and such board members may
454	stand for reelection unless otherwise permitted by the bylaws.
455	In the event that the bylaws permit staggered terms of no more
456	than 2 years and upon approval of a majority of the total voting
457	interests, the association board members may serve 2-year
458	staggered terms. If the number no person is interested in or
459	demonstrates an intention to run for the position of a board
460	members member whose terms have term has expired according to
461	the provisions of this subparagraph exceeds the number of
462	eligible association members showing interest in or
463	demonstrating an intention to run for the vacant positions, each
464	such board member whose term has expired shall become eligible
465	for reappointment be automatically reappointed to the board of
466	administration and need not stand for reelection. In a
467	condominium association of more than 10 units, or in a
468	condominium association that does not include timeshare units,
469	coowners of a unit may not serve as members of the board of
470	directors at the same time unless they own more than one unit
471	and are not co-occupants of a unit or unless there is an
472	insufficient number of eligible association members showing
473	interest in or demonstrating an intention to run for the vacant
474	positions on the board. Any unit owner desiring to be a
475	candidate for board membership must shall comply with sub-
476	subparagraph subparagraph 3.a. A person who has been suspended
477	or removed by the division under this chapter, or who is
478	delinquent in the payment of any fee, fine, or special or
479	regular assessment as provided in paragraph (n), is not eligible
480	for board membership. A person who has been convicted of any
481	felony in this state or in a United States District or
482	Territorial Court, or who has been convicted of any offense in
483	another jurisdiction that would be considered a felony if
484	committed in this state, is not eligible for board membership
485	unless such felon's civil rights have been restored for a period
486	of no less than 5 years as of the date on which such person
487	seeks election to the board. The validity of an action by the
488	board is not affected if it is later determined that a member of
489	the board is ineligible for board membership due to having been
490	convicted of a felony.
491	2. The bylaws shall provide the method of calling meetings
492	of unit owners, including annual meetings. Written notice, which
493	notice must include an agenda, shall be mailed, hand delivered,
494	or electronically transmitted to each unit owner at least 14
495	days prior to the annual meeting and shall be posted in a
496	conspicuous place on the condominium property at least 14
497	continuous days preceding the annual meeting. Upon notice to the
498	unit owners, the board shall by duly adopted rule designate a
499	specific location on the condominium property or association
500	property upon which all notices of unit owner meetings shall be
501	posted; however, if there is no condominium property or
502	association property upon which notices can be posted, this
503	requirement does not apply. In lieu of or in addition to the
504	physical posting of notice of any meeting of the unit owners on
505	the condominium property, the association may, by reasonable
506	rule, adopt a procedure for conspicuously posting and repeatedly
507	broadcasting the notice and the agenda on a closed-circuit cable
508	television system serving the condominium association. However,
509	if broadcast notice is used in lieu of a notice posted
510	physically on the condominium property, the notice and agenda
511	must be broadcast at least four times every broadcast hour of
512	each day that a posted notice is otherwise required under this
513	section. When broadcast notice is provided, the notice and
514	agenda must be broadcast in a manner and for a sufficient
515	continuous length of time so as to allow an average reader to
516	observe the notice and read and comprehend the entire content of
517	the notice and the agenda. Unless a unit owner waives in writing
518	the right to receive notice of the annual meeting, such notice
519	shall be hand delivered, mailed, or electronically transmitted
520	to each unit owner. Notice for meetings and notice for all other
521	purposes shall be mailed to each unit owner at the address last
522	furnished to the association by the unit owner, or hand
523	delivered to each unit owner. However, if a unit is owned by
524	more than one person, the association shall provide notice, for
525	meetings and all other purposes, to that one address which the
526	developer initially identifies for that purpose and thereafter
527	as one or more of the owners of the unit shall so advise the
528	association in writing, or if no address is given or the owners
529	of the unit do not agree, to the address provided on the deed of
530	record. An officer of the association, or the manager or other
531	person providing notice of the association meeting, shall
532	provide an affidavit or United States Postal Service certificate
533	of mailing, to be included in the official records of the
534	association affirming that the notice was mailed or hand
535	delivered, in accordance with this provision.
536	3.a. The members of the board shall be elected by written
537	ballot or voting machine. Proxies shall in no event be used in
538	electing the board, either in general elections or elections to
539	fill vacancies caused by recall, resignation, or otherwise,
540	unless otherwise provided in this chapter. Not less than 60 days
541	before a scheduled election, the association shall mail,
542	deliver, or electronically transmit, whether by separate
543	association mailing or included in another association mailing,
544	delivery, or transmission, including regularly published
545	newsletters, to each unit owner entitled to a vote, a first
546	notice of the date of the election along with a certification
547	form provided by the division attesting that he or she has read
548	and understands, to the best of his or her ability, the
549	governing documents of the association and the provisions of
550	this chapter and any applicable rules. Any unit owner or other
551	eligible person desiring to be a candidate for the board must
552	give written notice of his or her intent to be a candidate to
553	the association not less than 40 days before a scheduled
554	election. Together with the written notice and agenda as set
555	forth in subparagraph 2., the association shall mail, deliver,
556	or electronically transmit a second notice of the election to
557	all unit owners entitled to vote therein, together with a ballot
558	which shall list all candidates. Upon request of a candidate,
559	the association shall include an information sheet, no larger
560	than 8 1/2 inches by 11 inches, which must be furnished by the
561	candidate not less than 35 days before the election, shall along
562	with the signed certification form provided for in this
563	subparagraph, to be included with the mailing, delivery, or
564	transmission of the ballot, with the costs of mailing, delivery,
565	or electronic transmission and copying to be borne by the
566	association. The association is not liable for the contents of
567	the information sheets prepared by the candidates. In order to
568	reduce costs, the association may print or duplicate the
569	information sheets on both sides of the paper. The division
570	shall by rule establish voting procedures consistent with the
571	provisions contained herein, including rules establishing
572	procedures for giving notice by electronic transmission and
573	rules providing for the secrecy of ballots. Elections shall be
574	decided by a plurality of those ballots cast. There shall be no
575	quorum requirement; however, at least 20 percent of the eligible
576	voters must cast a ballot in order to have a valid election of
577	members of the board. No unit owner shall permit any other
578	person to vote his or her ballot, and any such ballots
579	improperly cast shall be deemed invalid, provided any unit owner
580	who violates this provision may be fined by the association in
581	accordance with s. 718.303. A unit owner who needs assistance in
582	casting the ballot for the reasons stated in s. 101.051 may
583	obtain assistance in casting the ballot. The regular election
584	shall occur on the date of the annual meeting. The provisions of
585	this sub-subparagraph subparagraph shall not apply to timeshare
586	condominium associations. Notwithstanding the provisions of this
587	sub-subparagraph subparagraph, an election is not required
588	unless more candidates file notices of intent to run or are
589	nominated than board vacancies exist.
590	b. Within 90 days after being elected to the board, each
591	newly elected director shall certify in writing to the secretary
592	of the association that he or she has read the association's
593	declarations of covenants and restrictions, articles of
594	incorporation, bylaws, and current written policies; that he or
595	she will work to uphold such documents and policies to the best
596	of his or her ability; and that he or she will faithfully
597	discharge his or her fiduciary responsibility to the
598	association's members. In lieu of this written certification,
599	the newly elected director may submit a certificate of
600	satisfactory completion of the educational curriculum
601	administered by a division-approved condominium education
602	provider. Failure to timely file the written certification or
603	educational certificate automatically disqualifies the director
604	from service on the board. The secretary shall cause the
605	association to retain a director's written certification or
606	educational certificate for inspection by the members for 5
607	years after a director's election. Failure to have such written
608	certification or educational certificate on file does not affect
609	the validity of any appropriate action.
610	4. Any approval by unit owners called for by this chapter
611	or the applicable declaration or bylaws, including, but not
612	limited to, the approval requirement in s. 718.111(8), shall be
613	made at a duly noticed meeting of unit owners and shall be
614	subject to all requirements of this chapter or the applicable
615	condominium documents relating to unit owner decisionmaking,
616	except that unit owners may take action by written agreement,
617	without meetings, on matters for which action by written
618	agreement without meetings is expressly allowed by the
619	applicable bylaws or declaration or any statute that provides
620	for such action.
621	5. Unit owners may waive notice of specific meetings if
622	allowed by the applicable bylaws or declaration or any statute.
623	If authorized by the bylaws, notice of meetings of the board of
624	administration, unit owner meetings, except unit owner meetings
625	called to recall board members under paragraph (j), and
626	committee meetings may be given by electronic transmission to
627	unit owners who consent to receive notice by electronic
628	transmission.
629	6. Unit owners shall have the right to participate in
630	meetings of unit owners with reference to all designated agenda
631	items. However, the association may adopt reasonable rules
632	governing the frequency, duration, and manner of unit owner
633	participation.
634	7. Any unit owner may tape record or videotape a meeting
635	of the unit owners subject to reasonable rules adopted by the
636	division.
637	8. Unless otherwise provided in the bylaws, any vacancy
638	occurring on the board before the expiration of a term may be
639	filled by the affirmative vote of the majority of the remaining
640	directors, even if the remaining directors constitute less than
641	a quorum, or by the sole remaining director. In the alternative,
642	a board may hold an election to fill the vacancy, in which case
643	the election procedures must conform to the requirements of sub-
644	subparagraph subparagraph 3.a. unless the association governs 10
645	units or fewer less and has opted out of the statutory election
646	process, in which case the bylaws of the association control.
647	Unless otherwise provided in the bylaws, a board member
648	appointed or elected under this section shall fill the vacancy
649	for the unexpired term of the seat being filled. Filling
650	vacancies created by recall is governed by paragraph (j) and
651	rules adopted by the division.
652
653	Notwithstanding subparagraph subparagraphs (b)2. and sub-
654	subparagraph (d)3.a., an association of 10 or fewer units may,
655	by the affirmative vote of a majority of the total voting
656	interests, provide for different voting and election procedures
657	in its bylaws, which vote may be by a proxy specifically
658	delineating the different voting and election procedures. The
659	different voting and election procedures may provide for
660	elections to be conducted by limited or general proxy.
661	(h) Amendment of bylaws.-
662	1. The method by which the bylaws may be amended
663	consistent with the provisions of this chapter shall be stated.
664	If the bylaws fail to provide a method of amendment, the bylaws
665	may be amended if the amendment is approved by the owners of not
666	less than two-thirds of the voting interests.
667	2. No bylaw shall be revised or amended by reference to
668	its title or number only. Proposals to amend existing bylaws
669	shall contain the full text of the bylaws to be amended; new
670	words shall be inserted in the text underlined, and words to be
671	deleted shall be lined through with hyphens. However, if the
672	proposed change is so extensive that this procedure would
673	hinder, rather than assist, the understanding of the proposed
674	amendment, it is not necessary to use underlining and hyphens as
675	indicators of words added or deleted, but, instead, a notation
676	must be inserted immediately preceding the proposed amendment in
677	substantially the following language: "Substantial rewording of
678	bylaw. See bylaw _____ for present text."
679	3. Nonmaterial errors or omissions in the bylaw process
680	will not invalidate an otherwise properly promulgated amendment.
681	4. If the bylaws provide for amendment by the board of
682	administration, no bylaw may be amended unless it is heard and
683	noticed at two consecutive meetings of the board of
684	administration that are at least 1 week apart.
685	Section 6. Paragraph (d) of subsection (1) of section
686	718.115, Florida Statutes, is amended to read:
687	718.115 Common expenses and common surplus.-
688	(1)
689	(d) If so provided in the declaration, the cost of
690	communications services as defined in chapter 202, information
691	services, or Internet services a master antenna television
692	system or duly franchised cable television service obtained
693	pursuant to a bulk contract shall be deemed a common expense. If
694	the declaration does not provide for the cost of communications
695	services as defined in chapter 202, information services, or
696	Internet services a master antenna television system or duly
697	franchised cable television service obtained under a bulk
698	contract as a common expense, the board may enter into such a
699	contract, and the cost of the service will be a common expense
700	but allocated on a per-unit basis rather than a percentage basis
701	if the declaration provides for other than an equal sharing of
702	common expenses, and any contract entered into before July 1,
703	1998, in which the cost of the service is not equally divided
704	among all unit owners, may be changed by vote of a majority of
705	the voting interests present at a regular or special meeting of
706	the association, to allocate the cost equally among all units.
707	The contract shall be for a term of not less than 2 years.
708	1. Any contract made by the board after the effective date
709	hereof for communications services as defined in chapter 202,
710	information services, or Internet services a community antenna
711	system or duly franchised cable television service may be
712	canceled by a majority of the voting interests present at the
713	next regular or special meeting of the association. Any member
714	may make a motion to cancel the said contract, but if no motion
715	is made or if such motion fails to obtain the required majority
716	at the next regular or special meeting, whichever occurs is
717	sooner, following the making of the contract, then such contract
718	shall be deemed ratified for the term therein expressed.
719	2. Any such contract shall provide, and shall be deemed to
720	provide if not expressly set forth, that any hearing-impaired or
721	legally blind unit owner who does not occupy the unit with a
722	non-hearing-impaired or sighted person, or any unit owner
723	receiving supplemental security income under Title XVI of the
724	Social Security Act or food stamps as administered by the
725	Department of Children and Family Services pursuant to s.
726	414.31, may discontinue the cable or video service without
727	incurring disconnect fees, penalties, or subsequent service
728	charges, and, as to such units, the owners shall not be required
729	to pay any common expenses charge related to such service. If
730	fewer less than all members of an association share the expenses
731	of cable or video service television, the expense shall be
732	shared equally by all participating unit owners. The association
733	may use the provisions of s. 718.116 to enforce payment of the
734	shares of such costs by the unit owners receiving cable or video
735	service television.
736	Section 7. Subsection (11) is added to section 718.116,
737	Florida Statutes, to read:
738	718.116 Assessments; liability; lien and priority;
739	interest; collection.-
740	(11) During the pendency of any foreclosure action of a
741	condominium unit, if the unit is occupied by a tenant and the
742	unit owner is delinquent in the payment of regular assessments,
743	the association may demand that the tenant pay to the
744	association the future regular assessments related to the
745	condominium unit. The demand shall be continuing in nature, and
746	upon demand the tenant shall continue to pay the regular
747	assessments to the association until the association releases
748	the tenant or the tenant discontinues tenancy in the unit. The
749	association shall mail written notice to the unit owner of the
750	association's demand that the tenant pay regular assessments to
751	the association. The tenant shall not be liable for increases in
752	the amount of the regular assessment due unless the tenant was
753	reasonably notified of the increase prior to the day that the
754	rent is due. The tenant shall be given a credit against rents
755	due to the unit owner in the amount of assessments paid to the
756	association. The association shall, upon request, provide the
757	tenant with written receipts for payments made. The association
758	may issue notices under s. 83.56 and may sue for eviction under
759	ss. 83.59-83.625 as if the association were a landlord under
760	part II of chapter 83 should the tenant fail to pay an
761	assessment. However, the association shall not otherwise be
762	considered a landlord under chapter 83 and shall specifically
763	not have any duty under s. 83.51. The tenant shall not, by
764	virtue of payment of assessments, have any of the rights of a
765	unit owner to vote in any election or to examine the books and
766	records of the association. A court may supersede the effect of
767	this subsection by appointing a receiver. Payments made by a
768	tenant pursuant to this subsection in lieu of or as a credit
769	against rent shall not be considered a breach of any lease
770	between the tenant and the unit owner nor serve as cause for
771	eviction or other action for failure to pay rent. Under no
772	circumstances shall the amount of assessments for which a tenant
773	is held responsible under this subsection exceed the amount owed
774	in rent to the unit owner.
775	Section 8. Subsection (2) of section 718.1265, Florida
776	Statutes, is amended to read:
777	718.1265 Association emergency powers.-
778	(2) The special powers authorized under subsection (1)
779	shall be limited to that time reasonably necessary to protect
780	the health, safety, and welfare of the association and the unit
781	owners and the unit owners' family members, tenants, guests,
782	agents, or invitees and shall be reasonably necessary to
783	mitigate further damage and make emergency repairs.
784	Additionally, unless 20 percent or more of the units are made
785	uninhabitable by the emergency, the special powers authorized
786	under subsection (1) may only be exercised during the term of
787	the Governor's executive order or proclamation declaring the
788	state of emergency in the locale in which the condominium is
789	located.
790	Section 9. Subsection (1) of section 718.301, Florida
791	Statutes, is amended to read:
792	718.301 Transfer of association control; claims of defect
793	by association.-
794	(1) When unit owners other than the developer own 15
795	percent or more of the units in a condominium that will be
796	operated ultimately by an association, the unit owners other
797	than the developer shall be entitled to elect no less than one-
798	third of the members of the board of administration of the
799	association. Unit owners other than the developer are entitled
800	to elect not less than a majority of the members of the board of
801	administration of an association:
802	(a) Three years after 50 percent of the units that will be
803	operated ultimately by the association have been conveyed to
804	purchasers;
805	(b) Three months after 90 percent of the units that will
806	be operated ultimately by the association have been conveyed to
807	purchasers;
808	(c) When all the units that will be operated ultimately by
809	the association have been completed, some of them have been
810	conveyed to purchasers, and none of the others are being offered
811	for sale by the developer in the ordinary course of business;
812	(d) When some of the units have been conveyed to
813	purchasers and none of the others are being constructed or
814	offered for sale by the developer in the ordinary course of
815	business;
816	(e) When the developer files a petition seeking protection
817	in bankruptcy;
818	(f) When a receiver for the developer is appointed by a
819	circuit court and is not discharged within 30 days after such
820	appointment, unless the court determines within 30 days after
821	appointment of the receiver that transfer of control would be
822	detrimental to the association or its members; or
823	(g) Seven years after recordation of the declaration of
824	condominium; or, in the case of an association which may
825	ultimately operate more than one condominium, 7 years after
826	recordation of the declaration for the first condominium it
827	operates; or, in the case of an association operating a phase
828	condominium created pursuant to s. 718.403, 7 years after
829	recordation of the declaration creating the initial phase,
830
831	whichever occurs first. The developer is entitled to elect at
832	least one member of the board of administration of an
833	association as long as the developer holds for sale in the
834	ordinary course of business at least 5 percent, in condominiums
835	with fewer than 500 units, and 2 percent, in condominiums with
836	more than 500 units, of the units in a condominium operated by
837	the association. Following the time the developer relinquishes
838	control of the association, the developer may exercise the right
839	to vote any developer-owned units in the same manner as any
840	other unit owner except for purposes of reacquiring control of
841	the association or selecting the majority members of the board
842	of administration.
843	Section 10. Subsection (3) of section 718.303, Florida
844	Statutes, is amended, and subsections (4) and (5) are added to
845	that section, to read:
846	718.303 Obligations of owners; waiver; suspension of
847	access or voting rights or levy of fine against unit by
848	association.-
849	(3) If a unit owner is delinquent for more than 90 days in
850	the payment of regular or special assessments or the declaration
851	or bylaws so provide, the association may suspend, for a
852	reasonable time, the right of a unit owner or a unit's occupant,
853	licensee, or invitee to use common elements, common facilities,
854	or any other association property. This subsection does not
855	apply to limited common elements intended to be used only by
856	that unit, common elements that must be used to access the unit,
857	utility services provided to the unit, parking spaces, or
858	elevators. The association may also levy reasonable fines
859	against a unit for the failure of the owner of the unit, or its
860	occupant, licensee, or invitee, to comply with any provision of
861	the declaration, the association bylaws, or reasonable rules of
862	the association. No fine will become a lien against a unit. A No
863	fine may not exceed $100 per violation. However, a fine may be
864	levied on the basis of each day of a continuing violation, with
865	a single notice and opportunity for hearing, provided that no
866	such fine shall in the aggregate exceed $1,000. A No fine may
867	not be levied and a suspension may not be imposed unless the
868	association first gives except after giving reasonable notice
869	and opportunity for a hearing to the unit owner and, if
870	applicable, its occupant, licensee, or invitee. The hearing must
871	be held before a committee of other unit owners who are neither
872	board members nor persons residing in a board member's
873	household. If the committee does not agree with the fine or
874	suspension, the fine or suspension may not be levied or imposed.
875	The provisions of this subsection do not apply to unoccupied
876	units.
877	(4) The notice and hearing requirements of subsection (3)
878	do not apply to the imposition of suspensions or fines against a
879	unit owner or a unit's occupant, licensee, or invitee because of
880	the failure to pay any amounts due the association. If such a
881	fine or suspension is imposed, the association must levy the
882	fine or impose a reasonable suspension at a properly noticed
883	board meeting, and after the imposition of such fine or
884	suspension, the association must notify the unit owner and, if
885	applicable, the unit's occupant, licensee, or invitee by mail or
886	hand delivery.
887	(5) If the declaration or bylaws so provide, an
888	association may also suspend the voting rights of a member due
889	to nonpayment of assessments, fines, or other charges payable to
890	the association which are delinquent in excess of 90 days.
891	Section 11. Subsection (1) of section 718.501, Florida
892	Statutes, is amended to read:
893	718.501 Authority, responsibility, and duties of Division
894	of Florida Condominiums, Timeshares, and Mobile Homes.-
895	(1) The Division of Florida Condominiums, Timeshares, and
896	Mobile Homes of the Department of Business and Professional
897	Regulation, referred to as the "division" in this part, has the
898	power to enforce and ensure compliance with the provisions of
899	this chapter and rules relating to the development,
900	construction, sale, lease, ownership, operation, and management
901	of residential condominium units. In performing its duties, the
902	division has complete jurisdiction to investigate complaints and
903	enforce compliance with the provisions of this chapter with
904	respect to associations that are still under developer control
905	and complaints against developers involving improper turnover or
906	failure to turnover, pursuant to s. 718.301. However, after
907	turnover has occurred, the division shall only have jurisdiction
908	to investigate complaints related to financial issues, failure
909	to maintain common elements, elections, and unit owner access to
910	association records pursuant to s. 718.111(12).
911	(a)1. The division may make necessary public or private
912	investigations within or outside this state to determine whether
913	any person has violated this chapter or any rule or order
914	hereunder, to aid in the enforcement of this chapter, or to aid
915	in the adoption of rules or forms hereunder.
916	2. The division may submit any official written report,
917	worksheet, or other related paper, or a duly certified copy
918	thereof, compiled, prepared, drafted, or otherwise made by and
919	duly authenticated by a financial examiner or analyst to be
920	admitted as competent evidence in any hearing in which the
921	financial examiner or analyst is available for cross-examination
922	and attests under oath that such documents were prepared as a
923	result of an examination or inspection conducted pursuant to
924	this chapter.
925	(b) The division may require or permit any person to file
926	a statement in writing, under oath or otherwise, as the division
927	determines, as to the facts and circumstances concerning a
928	matter to be investigated.
929	(c) For the purpose of any investigation under this
930	chapter, the division director or any officer or employee
931	designated by the division director may administer oaths or
932	affirmations, subpoena witnesses and compel their attendance,
933	take evidence, and require the production of any matter which is
934	relevant to the investigation, including the existence,
935	description, nature, custody, condition, and location of any
936	books, documents, or other tangible things and the identity and
937	location of persons having knowledge of relevant facts or any
938	other matter reasonably calculated to lead to the discovery of
939	material evidence. Upon the failure by a person to obey a
940	subpoena or to answer questions propounded by the investigating
941	officer and upon reasonable notice to all persons affected
942	thereby, the division may apply to the circuit court for an
943	order compelling compliance.
944	(d) Notwithstanding any remedies available to unit owners
945	and associations, if the division has reasonable cause to
946	believe that a violation of any provision of this chapter or
947	related rule has occurred, the division may institute
948	enforcement proceedings in its own name against any developer,
949	association, officer, or member of the board of administration,
950	or its assignees or agents, as follows:
951	1. The division may permit a person whose conduct or
952	actions may be under investigation to waive formal proceedings
953	and enter into a consent proceeding whereby orders, rules, or
954	letters of censure or warning, whether formal or informal, may
955	be entered against the person.
956	2. The division may issue an order requiring the
957	developer, association, developer-designated officer, or
958	developer-designated member of the board of administration,
959	developer-designated assignees or agents, community association
960	manager, or community association management firm to cease and
961	desist from the unlawful practice and take such affirmative
962	action as in the judgment of the division will carry out the
963	purposes of this chapter. If the division finds that a
964	developer, association, officer, or member of the board of
965	administration, or its assignees or agents, is violating or is
966	about to violate any provision of this chapter, any rule adopted
967	or order issued by the division, or any written agreement
968	entered into with the division, and presents an immediate danger
969	to the public requiring an immediate final order, it may issue
970	an emergency cease and desist order reciting with particularity
971	the facts underlying such findings. The emergency cease and
972	desist order is effective for 90 days. If the division begins
973	nonemergency cease and desist proceedings, the emergency cease
974	and desist order remains effective until the conclusion of the
975	proceedings under ss. 120.569 and 120.57.
976	3. If a developer fails to pay any restitution determined
977	by the division to be owed, plus any accrued interest at the
978	highest rate permitted by law, within 30 days after expiration
979	of any appellate time period of a final order requiring payment
980	of restitution or the conclusion of any appeal thereof,
981	whichever is later, the division shall bring an action in
982	circuit or county court on behalf of any association, class of
983	unit owners, lessees, or purchasers for restitution, declaratory
984	relief, injunctive relief, or any other available remedy. The
985	division may also temporarily revoke its acceptance of the
986	filing for the developer to which the restitution relates until
987	payment of restitution is made.
988	4. The division may petition the court for the appointment
989	of a receiver or conservator. If appointed, the receiver or
990	conservator may take action to implement the court order to
991	ensure the performance of the order and to remedy any breach
992	thereof. In addition to all other means provided by law for the
993	enforcement of an injunction or temporary restraining order, the
994	circuit court may impound or sequester the property of a party
995	defendant, including books, papers, documents, and related
996	records, and allow the examination and use of the property by
997	the division and a court-appointed receiver or conservator.
998	5. The division may apply to the circuit court for an
999	order of restitution whereby the defendant in an action brought
1000	pursuant to subparagraph 4. shall be ordered to make restitution
1001	of those sums shown by the division to have been obtained by the
1002	defendant in violation of this chapter. Such restitution shall,
1003	at the option of the court, be payable to the conservator or
1004	receiver appointed pursuant to subparagraph 4. or directly to
1005	the persons whose funds or assets were obtained in violation of
1006	this chapter.
1007	6. The division may impose a civil penalty against a
1008	developer or association, or its assignee or agent, for any
1009	violation of this chapter or a rule adopted under this chapter.
1010	The division may impose a civil penalty individually against any
1011	officer or board member who willfully and knowingly violates a
1012	provision of this chapter, adopted rule, or a final order of the
1013	division; may order the removal of such individual as an officer
1014	or from the board of administration or as an officer of the
1015	association; and may prohibit such individual from serving as an
1016	officer or on the board of a community association for a period
1017	of time. The term "willfully and knowingly" means that the
1018	division informed the officer or board member that his or her
1019	action or intended action violates this chapter, a rule adopted
1020	under this chapter, or a final order of the division and that
1021	the officer or board member refused to comply with the
1022	requirements of this chapter, a rule adopted under this chapter,
1023	or a final order of the division. The division, prior to
1024	initiating formal agency action under chapter 120, shall afford
1025	the officer or board member an opportunity to voluntarily comply
1026	with this chapter, a rule adopted under this chapter, or a final
1027	order of the division. An officer or board member who complies
1028	within 10 days is not subject to a civil penalty. A penalty may
1029	be imposed on the basis of each day of continuing violation, but
1030	in no event shall the penalty for any offense exceed $5,000. By
1031	January 1, 1998, the division shall adopt, by rule, penalty
1032	guidelines applicable to possible violations or to categories of
1033	violations of this chapter or rules adopted by the division. The
1034	guidelines must specify a meaningful range of civil penalties
1035	for each such violation of the statute and rules and must be
1036	based upon the harm caused by the violation, the repetition of
1037	the violation, and upon such other factors deemed relevant by
1038	the division. For example, the division may consider whether the
1039	violations were committed by a developer or owner-controlled
1040	association, the size of the association, and other factors. The
1041	guidelines must designate the possible mitigating or aggravating
1042	circumstances that justify a departure from the range of
1043	penalties provided by the rules. It is the legislative intent
1044	that minor violations be distinguished from those which endanger
1045	the health, safety, or welfare of the condominium residents or
1046	other persons and that such guidelines provide reasonable and
1047	meaningful notice to the public of likely penalties that may be
1048	imposed for proscribed conduct. This subsection does not limit
1049	the ability of the division to informally dispose of
1050	administrative actions or complaints by stipulation, agreed
1051	settlement, or consent order. All amounts collected shall be
1052	deposited with the Chief Financial Officer to the credit of the
1053	Division of Florida Condominiums, Timeshares, and Mobile Homes
1054	Trust Fund. If a developer fails to pay the civil penalty and
1055	the amount deemed to be owed to the association, the division
1056	shall issue an order directing that such developer cease and
1057	desist from further operation until such time as the civil
1058	penalty is paid or may pursue enforcement of the penalty in a
1059	court of competent jurisdiction. If an association fails to pay
1060	the civil penalty, the division shall pursue enforcement in a
1061	court of competent jurisdiction, and the order imposing the
1062	civil penalty or the cease and desist order will not become
1063	effective until 20 days after the date of such order. Any action
1064	commenced by the division shall be brought in the county in
1065	which the division has its executive offices or in the county
1066	where the violation occurred.
1067	7. If a unit owner presents the division with proof that
1068	the unit owner has requested access to official records in
1069	writing by certified mail, and that after 10 days the unit owner
1070	again made the same request for access to official records in
1071	writing by certified mail, and that more than 10 days has
1072	elapsed since the second request and the association has still
1073	failed or refused to provide access to official records as
1074	required by this chapter, the division shall issue a subpoena
1075	requiring production of the requested records where the records
1076	are kept pursuant to s. 718.112.
1077	8. In addition to subparagraph 6., the division may seek
1078	the imposition of a civil penalty through the circuit court for
1079	any violation for which the division may issue a notice to show
1080	cause under paragraph (r). The civil penalty shall be at least
1081	$500 but no more than $5,000 for each violation. The court may
1082	also award to the prevailing party court costs and reasonable
1083	attorney's fees and, if the division prevails, may also award
1084	reasonable costs of investigation.
1085	9. Notwithstanding subparagraph 6., when the division
1086	finds that an officer or director has intentionally falsified
1087	association records with the intent to conceal material facts
1088	from the division, the board, or unit owners, the division shall
1089	prohibit the officer or director from acting as an officer or
1090	director of any condominium, cooperative, or homeowners'
1091	association for at least 1 year.
1092	10. When the division finds that any person has derived an
1093	improper personal benefit from a condominium association, the
1094	division shall order the person to pay restitution to the
1095	association and shall order the person to pay to the division
1096	the costs of investigation and prosecution.
1097	(e) The division may prepare and disseminate a prospectus
1098	and other information to assist prospective owners, purchasers,
1099	lessees, and developers of residential condominiums in assessing
1100	the rights, privileges, and duties pertaining thereto.
1101	(f) The division has authority to adopt rules pursuant to
1102	ss. 120.536(1) and 120.54 to implement and enforce the
1103	provisions of this chapter.
1104	(g) The division shall establish procedures for providing
1105	notice to an association and the developer during the period
1106	where the developer controls the association when the division
1107	is considering the issuance of a declaratory statement with
1108	respect to the declaration of condominium or any related
1109	document governing in such condominium community.
1110	(h) The division shall furnish each association which pays
1111	the fees required by paragraph (2)(a) a copy of this act,
1112	subsequent changes to this act on an annual basis, an amended
1113	version of this act as it becomes available from the Secretary
1114	of State's office on a biennial basis, and the rules adopted
1115	thereto on an annual basis.
1116	(i) The division shall annually provide each association
1117	with a summary of declaratory statements and formal legal
1118	opinions relating to the operations of condominiums which were
1119	rendered by the division during the previous year.
1120	(j) The division shall provide training and educational
1121	programs for condominium association board members and unit
1122	owners. The training may, in the division's discretion, include
1123	web-based electronic media, and live training and seminars in
1124	various locations throughout the state. The division shall have
1125	the authority to review and approve education and training
1126	programs for board members and unit owners offered by providers
1127	and shall maintain a current list of approved programs and
1128	providers and shall make such list available to board members
1129	and unit owners in a reasonable and cost-effective manner.
1130	(k) The division shall maintain a toll-free telephone
1131	number accessible to condominium unit owners.
1132	(l) The division shall develop a program to certify both
1133	volunteer and paid mediators to provide mediation of condominium
1134	disputes. The division shall provide, upon request, a list of
1135	such mediators to any association, unit owner, or other
1136	participant in arbitration proceedings under s. 718.1255
1137	requesting a copy of the list. The division shall include on the
1138	list of volunteer mediators only the names of persons who have
1139	received at least 20 hours of training in mediation techniques
1140	or who have mediated at least 20 disputes. In order to become
1141	initially certified by the division, paid mediators must be
1142	certified by the Supreme Court to mediate court cases in county
1143	or circuit courts. However, the division may adopt, by rule,
1144	additional factors for the certification of paid mediators,
1145	which factors must be related to experience, education, or
1146	background. Any person initially certified as a paid mediator by
1147	the division must, in order to continue to be certified, comply
1148	with the factors or requirements imposed by rules adopted by the
1149	division.
1150	(m) When a complaint is made, the division shall conduct
1151	its inquiry with due regard to the interests of the affected
1152	parties. Within 30 days after receipt of a complaint, the
1153	division shall acknowledge the complaint in writing and notify
1154	the complainant whether the complaint is within the jurisdiction
1155	of the division and whether additional information is needed by
1156	the division from the complainant. The division shall conduct
1157	its investigation and shall, within 90 days after receipt of the
1158	original complaint or of timely requested additional
1159	information, take action upon the complaint. However, the
1160	failure to complete the investigation within 90 days does not
1161	prevent the division from continuing the investigation,
1162	accepting or considering evidence obtained or received after 90
1163	days, or taking administrative action if reasonable cause exists
1164	to believe that a violation of this chapter or a rule of the
1165	division has occurred. If an investigation is not completed
1166	within the time limits established in this paragraph, the
1167	division shall, on a monthly basis, notify the complainant in
1168	writing of the status of the investigation. When reporting its
1169	action to the complainant, the division shall inform the
1170	complainant of any right to a hearing pursuant to ss. 120.569
1171	and 120.57.
1172	(n) Condominium association directors, officers, and
1173	employees; condominium developers; community association
1174	managers; and community association management firms have an
1175	ongoing duty to reasonably cooperate with the division in any
1176	investigation pursuant to this section. The division shall refer
1177	to local law enforcement authorities any person whom the
1178	division believes has altered, destroyed, concealed, or removed
1179	any record, document, or thing required to be kept or maintained
1180	by this chapter with the purpose to impair its verity or
1181	availability in the department's investigation.
1182	(o) The division may:
1183	1. Contract with agencies in this state or other
1184	jurisdictions to perform investigative functions; or
1185	2. Accept grants-in-aid from any source.
1186	(p) The division shall cooperate with similar agencies in
1187	other jurisdictions to establish uniform filing procedures and
1188	forms, public offering statements, advertising standards, and
1189	rules and common administrative practices.
1190	(q) The division shall consider notice to a developer to
1191	be complete when it is delivered to the developer's address
1192	currently on file with the division.
1193	(r) In addition to its enforcement authority, the division
1194	may issue a notice to show cause, which shall provide for a
1195	hearing, upon written request, in accordance with chapter 120.
1196	(s) The division shall submit to the Governor, the
1197	President of the Senate, the Speaker of the House of
1198	Representatives, and the chairs of the legislative
1199	appropriations committees an annual report that includes, but
1200	need not be limited to, the number of training programs provided
1201	for condominium association board members and unit owners, the
1202	number of complaints received by type, the number and percent of
1203	complaints acknowledged in writing within 30 days and the number
1204	and percent of investigations acted upon within 90 days in
1205	accordance with paragraph (m), and the number of investigations
1206	exceeding the 90-day requirement. The annual report shall also
1207	include an evaluation of the division's core business processes
1208	and make recommendations for improvements, including statutory
1209	changes. The report shall be submitted by September 30 following
1210	the end of the fiscal year.
1211	Section 12. Subsection (4) of section 718.5012, Florida
1212	Statutes, is amended to read:
1213	718.5012 Ombudsman; powers and duties.-The ombudsman shall
1214	have the powers that are necessary to carry out the duties of
1215	his or her office, including the following specific powers:
1216	(4) To act as liaison between the division, unit owners,
1217	boards of directors, board members, community association
1218	managers, and other affected parties. The ombudsman shall
1219	develop policies and procedures to assist unit owners, boards of
1220	directors, board members, community association managers, and
1221	other affected parties to understand their rights and
1222	responsibilities as set forth in this chapter and the
1223	condominium documents governing their respective association.
1224	The ombudsman shall coordinate and assist in the preparation and
1225	adoption of educational and reference material, and shall
1226	endeavor to coordinate with private or volunteer providers of
1227	these services, so that the availability of these resources is
1228	made known to the largest possible audience. In conjunction with
1229	the division, included in the preparation and adoption of
1230	educational and reference materials shall be the publishing and
1231	updating of a "Florida Condominium Handbook" to facilitate
1232	understanding of this chapter, the contents of which are stated
1233	in a clear, conspicuous, and easily understandable manner. The
1234	handbook shall be made publicly available on the ombudsman's
1235	Internet website.
1236	Section 13. Part VII of chapter 718, Florida Statutes,
1237	consisting of sections 718.701, 718.702, 718.703, 718.704,
1238	718.705, 718.706, 718.707, and 718.708, is created to read:
1239	PART VII
1240	DISTRESSED CONDOMINIUM RELIEF
1241	718.701 Short title.-This part may be cited as the
1242	"Distressed Condominium Relief Act."
1243	718.702 Legislative intent.-
1244	(1) The Legislature acknowledges the massive downturn in
1245	the condominium market which has transpired throughout the state
1246	and the impact of such downturn on developers, lenders, unit
1247	owners, and condominium associations. Numerous condominium
1248	projects have either failed or are in the process of failing,
1249	whereby the condominium has a small percentage of third-party
1250	unit owners as compared to the unsold inventory of units. As a
1251	result of the inability to find purchasers for this inventory of
1252	units, which results in part from the devaluing of real estate
1253	in this state, developers are unable to satisfy the requirements
1254	of their lenders, leading to defaults on mortgages.
1255	Consequently, lenders are faced with the task of finding a
1256	solution to the problem in order to be paid for their
1257	investments.
1258	(2) The Legislature recognizes that all of the factors
1259	listed in this section lead to condominiums becoming distressed,
1260	resulting in detriment to the unit owners and the condominium
1261	association on account of the resulting shortage of assessment
1262	moneys available to support the financial requirements for
1263	proper maintenance of the condominium. Such shortage and the
1264	resulting lack of proper maintenance further erode property
1265	values. The Legislature finds that individuals and entities
1266	within Florida and in other states have expressed interest in
1267	purchasing unsold inventory in one or more condominium projects,
1268	but are reticent to do so because of accompanying liabilities
1269	inherited from the original developer, which are by definition
1270	imputed to the successor purchaser, including a foreclosing
1271	mortgagee. This results in the potential purchaser having
1272	unknown and unquantifiable risks, and potential successor
1273	purchasers are unwilling to accept such risks. The result is
1274	that condominium projects stagnate, leaving all parties involved
1275	at an impasse without the ability to find a solution.
1276	(3) The Legislature finds and declares that it is the
1277	public policy of this state to protect the interests of
1278	developers, lenders, unit owners, and condominium associations
1279	with regard to distressed condominiums, and that there is a need
1280	for relief from certain provisions of the Florida Condominium
1281	Act geared toward enabling economic opportunities within these
1282	condominiums for successor purchasers, including foreclosing
1283	mortgagees. Such relief would benefit existing unit owners and
1284	condominium associations. The Legislature further finds and
1285	declares that this situation cannot be open-ended without
1286	potentially prejudicing the rights of unit owners and
1287	condominium associations, and thereby declares that the
1288	provisions of this part shall be used by purchasers of
1289	condominium inventory for a specific and defined period.
1290	718.703 Definitions.-As used in this part, the term:
1291	(1) "Bulk assignee" means a person who:
1292	(a) Acquires more than seven condominium parcels as set
1293	forth in s. 718.707; and
1294	(b) Receives an assignment of some or all of the rights of
1295	the developer as are set forth in the declaration of condominium
1296	or in this chapter by a written instrument recorded as an
1297	exhibit to the deed or as a separate instrument in the public
1298	records of the county in which the condominium is located.
1299	(2) "Bulk buyer" means a person who acquires more than
1300	seven condominium parcels as set forth in s. 718.707 but who
1301	does not receive an assignment of any developer rights other
1302	than the right to conduct sales, leasing, and marketing
1303	activities within the condominium.
1304	718.704 Assignment of developer rights to and assumption
1305	of developer rights by bulk assignee; bulk buyer.-
1306	(1) A bulk assignee shall be deemed to have assumed and is
1307	liable for all duties and responsibilities of the developer
1308	under the declaration and this chapter, except:
1309	(a) Warranties of the developer under s. 718.203(1) or s.
1310	718.618, except for design, construction, development, or repair
1311	work performed by or on behalf of such bulk assignee.
1312	(b) The obligation to:
1313	1. Fund converter reserves under s. 718.618 for a unit
1314	which was not acquired by the bulk assignee; or
1315	2. Provide converter warranties on any portion of the
1316	condominium property except as may be expressly provided by the
1317	bulk assignee in the contract for purchase and sale executed
1318	with a purchaser and pertaining to any design, construction,
1319	development, or repair work performed by or on behalf of the
1320	bulk assignee.
1321	(c) The requirement to provide the association with a
1322	cumulative audit of the association's finances from the date of
1323	formation of the condominium association as required by s.
1324	718.301. However, the bulk assignee shall provide an audit for
1325	the period for which the bulk assignee elects a majority of the
1326	members of the board of administration.
1327	(d) Any liability arising out of or in connection with
1328	actions taken by the board of administration or the developer-
1329	appointed directors before the bulk assignee elects a majority
1330	of the members of the board of administration.
1331	(e) Any liability for or arising out of the developer's
1332	failure to fund previous assessments or to resolve budgetary
1333	deficits in relation to a developer's right to guarantee
1334	assessments, except as otherwise provided in subsection (2).
1335
1336	Further, the bulk assignee is responsible for delivering
1337	documents and materials in accordance with s. 718.705(3). A bulk
1338	assignee may expressly assume some or all of the obligations of
1339	the developer described in paragraphs (a)-(e).
1340	(2) A bulk assignee receiving the assignment of the rights
1341	of the developer to guarantee the level of assessments and fund
1342	budgetary deficits pursuant to s. 718.116 shall be deemed to
1343	have assumed and is liable for all obligations of the developer
1344	with respect to such guarantee, including any applicable funding
1345	of reserves to the extent required by law, for as long as the
1346	guarantee remains in effect. A bulk assignee not receiving an
1347	assignment of the right of the developer to guarantee the level
1348	of assessments and fund budgetary deficits pursuant to s.
1349	718.116 or a bulk buyer is not deemed to have assumed and is not
1350	liable for the obligations of the developer with respect to such
1351	guarantee, but is responsible for payment of assessments in the
1352	same manner as all other owners of condominium parcels.
1353	(3) A bulk buyer is liable for the duties and
1354	responsibilities of the developer under the declaration and this
1355	chapter only to the extent provided in this part, together with
1356	any other duties or responsibilities of the developer expressly
1357	assumed in writing by the bulk buyer.
1358	(4) An acquirer of condominium parcels is not considered a
1359	bulk assignee or a bulk buyer if the transfer to such acquirer
1360	was made with the intent to hinder, delay, or defraud any
1361	purchaser, unit owner, or the association, or if the acquirer is
1362	a person who would constitute an insider under s. 726.102(7).
1363	(5) An assignment of developer rights to a bulk assignee
1364	may be made by the developer, a previous bulk assignee, or a
1365	court of competent jurisdiction acting on behalf of the
1366	developer or the previous bulk assignee. At any particular time,
1367	there may be no more than one bulk assignee within a
1368	condominium, but there may be more than one bulk buyer. If more
1369	than one acquirer of condominium parcels receives an assignment
1370	of developer rights from the same person, the bulk assignee is
1371	the acquirer whose instrument of assignment is recorded first in
1372	applicable public records.
1373	718.705 Board of administration; transfer of control.-
1374	(1) For purposes of determining the timing for transfer of
1375	control of the board of administration of the association to
1376	unit owners other than the developer under s. 718.301(1)(a) or
1377	(b), if a bulk assignee is entitled to elect a majority of the
1378	members of the board, a condominium parcel acquired by the bulk
1379	assignee shall not be deemed to be conveyed to a purchaser, or
1380	to be owned by an owner other than the developer, until such
1381	condominium parcel is conveyed to an owner who is not a bulk
1382	assignee.
1383	(2) Unless control of the board of administration of the
1384	association has already been relinquished pursuant to s.
1385	718.301(1), the bulk assignee is obligated to relinquish control
1386	of the association in accordance with s. 718.301 and this part.
1387	(3) When a bulk assignee relinquishes control of the board
1388	of administration as set forth in s. 718.301, the bulk assignee
1389	shall deliver all of those items required by s. 718.301(4).
1390	However, the bulk assignee is not required to deliver items and
1391	documents not in the possession of the bulk assignee during the
1392	period during which the bulk assignee was the owner of
1393	condominium parcels. In conjunction with the acquisition of
1394	condominium parcels, a bulk assignee shall undertake a good
1395	faith effort to obtain the documents and materials required to
1396	be provided to the association pursuant to s. 718.301(4). To the
1397	extent the bulk assignee is not able to obtain all of such
1398	documents and materials, the bulk assignee shall certify in
1399	writing to the association the names or descriptions of the
1400	documents and materials that were not obtainable by the bulk
1401	assignee. Delivery of the certificate relieves the bulk assignee
1402	of responsibility for the delivery of the documents and
1403	materials referenced in the certificate as otherwise required
1404	under ss. 718.112 and 718.301 and this part. The responsibility
1405	of the bulk assignee for the audit required by s. 718.301(4)
1406	shall commence as of the date on which the bulk assignee elected
1407	a majority of the members of the board of administration.
1408	(4) If a conflict arises between the provisions or
1409	application of this section and s. 718.301, this section shall
1410	prevail.
1411	(5) Failure of a bulk assignee or bulk buyer to comply
1412	with all the requirements contained in this part shall result in
1413	the loss of any and all protections or exemptions provided under
1414	this part.
1415	718.706 Specific provisions pertaining to offering of
1416	units by a bulk assignee or bulk buyer.-
1417	(1) Before offering any units for sale or for lease for a
1418	term exceeding 5 years, a bulk assignee or bulk buyer must file
1419	the following documents with the division and provide such
1420	documents to a prospective purchaser:
1421	(a) An updated prospectus or offering circular, or a
1422	supplement to the prospectus or offering circular, filed by the
1423	creating developer prepared in accordance with s. 718.504, which
1424	shall include the form of contract for purchase and sale in
1425	compliance with s. 718.503(2).
1426	(b) An updated Frequently Asked Questions and Answers
1427	sheet.
1428	(c) The executed escrow agreement if required under s.
1429	718.202.
1430	(d) The financial information required by s. 718.111(13).
1431	However, if a financial information report does not exist for
1432	the fiscal year before acquisition of title by the bulk assignee
1433	or bulk buyer, or accounting records cannot be obtained in good
1434	faith by the bulk assignee or bulk buyer which would permit
1435	preparation of the required financial information report, the
1436	bulk assignee or bulk buyer is excused from the requirement of
1437	this paragraph. However, the bulk assignee or bulk buyer must
1438	include in the purchase contract the following statement in
1439	conspicuous type:
1440
1441	THE FINANCIAL INFORMATION REPORT REQUIRED UNDER
1442	SECTION 718.111(13), FLORIDA STATUTES, FOR THE
1443	IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION
1444	IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER AS
1445	A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
1446	ASSOCIATION.
1447
1448	(2) Before offering any units for sale or for lease for a
1449	term exceeding 5 years, a bulk assignee must file with the
1450	division and provide to a prospective purchaser a disclosure
1451	statement that must include, but is not limited to:
1452	(a) A description to the purchaser of any rights of the
1453	developer which have been assigned to the bulk assignee.
1454	(b) The following statement in conspicuous type:
1455
1456	SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1457	DEVELOPER UNDER SECTION 718.203(1) OR SECTION 718.618,
1458	FLORIDA STATUTES, AS APPLICABLE, EXCEPT FOR DESIGN,
1459	CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
1460	OR ON BEHALF OF SELLER.
1461
1462	(c) If the condominium is a conversion subject to part VI,
1463	the following statement in conspicuous type:
1464
1465	SELLER HAS NO OBLIGATION TO FUND CONVERTER
1466	RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER
1467	SECTION 718.618, FLORIDA STATUTES, ON ANY PORTION OF
1468	THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY
1469	REQUIRED OF THE SELLER IN THE CONTRACT FOR PURCHASE
1470	AND SALE EXECUTED BY THE SELLER AND THE PREVIOUS
1471	DEVELOPER AND PERTAINING TO ANY DESIGN, CONSTRUCTION,
1472	DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
1473	OF THE SELLER.
1474
1475	(3) In addition to the requirements set forth in
1476	subsection (1), a bulk assignee or bulk buyer must comply with
1477	the nondeveloper disclosure requirements set forth in s.
1478	718.503(2) before offering any units for sale or for lease for a
1479	term exceeding 5 years.
1480	(4) A bulk assignee, while in control of the board of
1481	administration of the association, may not authorize, on behalf
1482	of the association:
1483	(a) The waiver of reserves or the reduction of funding of
1484	the reserves in accordance with s. 718.112(2)(f)2., unless
1485	approved by a majority of the voting interests not controlled by
1486	the developer, bulk assignee, or bulk buyer; or
1487	(b) The use of reserve expenditures for other purposes in
1488	accordance with s. 718.112(2)(f)3., unless approved by a
1489	majority of the voting interests not controlled by the
1490	developer, bulk assignee, or bulk buyer.
1491	(5) A bulk assignee, while in control of the board of
1492	administration of the association, must comply with the
1493	requirements imposed upon developers to transfer control of the
1494	association to the unit owners in accordance with s. 718.301.
1495	(6) A bulk assignee or bulk buyer must comply with all the
1496	requirements of s. 718.302 regarding any contracts entered into
1497	by the association during the period the bulk assignee or bulk
1498	buyer maintains control of the board of administration. Unit
1499	owners shall be afforded all the protections contained in s.
1500	718.302 regarding agreements entered into by the association
1501	before unit owners other than the developer, bulk assignee, or
1502	bulk buyer elected a majority of the board of administration.
1503	(7) A bulk buyer must comply with the requirements
1504	contained in the declaration regarding any transfer of a unit,
1505	including sales, leases, and subleases. A bulk buyer is not
1506	entitled to any exemptions afforded a developer or successor
1507	developer under this chapter regarding any transfer of a unit,
1508	including sales, leases, or subleases.
1509	718.707 Time limitation for classification as bulk
1510	assignee or bulk buyer.-A person acquiring condominium parcels
1511	may not be classified as a bulk assignee or bulk buyer unless
1512	the condominium parcels were acquired before July 1, 2012. The
1513	date of such acquisition shall be determined by the date of
1514	recording of a deed or other instrument of conveyance for such
1515	parcels in the public records of the county in which the
1516	condominium is located or by the date of issuance of a
1517	certificate of title in a foreclosure proceeding with respect to
1518	such condominium parcels.
1519	718.708 Liability of developers and others.-An assignment
1520	of developer rights to a bulk assignee or bulk buyer does not
1521	release the developer from any liabilities under the declaration
1522	or this chapter. This part does not limit the liability of the
1523	developer for claims brought by unit owners, bulk assignees, or
1524	bulk buyers for violations of this chapter by the developer,
1525	unless specifically excluded in this part. Nothing contained
1526	within this part waives, releases, compromises, or limits the
1527	liability of contractors, subcontractors, materialmen,
1528	manufacturers, architects, engineers, or any participant in the
1529	design or construction of a condominium for any claim brought by
1530	an association, unit owners, bulk assignees, or bulk buyers
1531	arising from the design of the condominium, construction
1532	defects, misrepresentations associated with condominium
1533	property, or violations of this chapter, unless specifically
1534	excluded in this part.
1535	Section 14. Subsection (2) of section 720.302, Florida
1536	Statutes, is amended to read:
1537	720.302 Purposes, scope, and application.-
1538	(2) The Legislature recognizes that it is not in the best
1539	interest of homeowners' associations or the individual
1540	association members thereof to create or impose a bureau or
1541	other agency of state government to regulate the affairs of
1542	homeowners' associations. However, in accordance with part IV of
1543	this chapter s. 720.311, the Legislature finds that homeowners'
1544	associations and their individual members will benefit from an
1545	expedited alternative process for resolution of election and
1546	recall disputes and presuit mediation of other disputes
1547	involving covenant enforcement in homeowners' associations and
1548	deed-restricted communities using the procedures provided in
1549	part IV of and authorizes the department to hear, administer,
1550	and determine these disputes as more fully set forth in this
1551	chapter. Further, the Legislature recognizes that certain
1552	contract rights have been created for the benefit of homeowners'
1553	associations and members thereof as well as deed-restricted
1554	communities before the effective date of this act and that part
1555	IV of this chapter is ss. 720.301-720.407 are not intended to
1556	impair such contract rights, including, but not limited to, the
1557	rights of the developer to complete the community as initially
1558	contemplated.
1559	Section 15. Paragraph (b) of subsection (2), paragraph (g)
1560	of subsection(4), paragraphs (a) and (c) of subsection (5),
1561	paragraphs (b), (c), (d), (f), and (g) of subsection (6), and
1562	paragraphs (c) and (d) of subsection (10) of section 720.303,
1563	Florida Statutes, are amended, and subsections (12), (13), and
1564	(14) are added to that section, to read:
1565	720.303 Association powers and duties; meetings of board;
1566	official records; budgets; financial reporting; association
1567	funds; recalls; prohibited compensation; borrowing; transfer
1568	fees.-
1569	(2) BOARD MEETINGS.-
1570	(b) Members have the right to attend all meetings of the
1571	board and to speak on any matter placed on the agenda by
1572	petition of the voting interests for at least 3 minutes. The
1573	association may adopt written reasonable rules expanding the
1574	right of members to speak and governing the frequency, duration,
1575	and other manner of member statements, which rules must be
1576	consistent with this paragraph and may include a sign-up sheet
1577	for members wishing to speak. Notwithstanding any other law, the
1578	requirement that board meetings and committee meetings be open
1579	to the members is inapplicable to meetings between the board or
1580	a committee and the association's attorney to discuss proposed
1581	or pending litigation, or with respect to meetings of the board
1582	held for the purpose of discussing personnel matters are not
1583	required to be open to the members.
1584	(4) OFFICIAL RECORDS.-The association shall maintain each
1585	of the following items, when applicable, which constitute the
1586	official records of the association:
1587	(g) A current roster of all members and their mailing
1588	addresses and parcel identifications. The association shall also
1589	maintain the electronic mailing addresses and the numbers
1590	designated by members for receiving notice sent by electronic
1591	transmission of those members consenting to receive notice by
1592	electronic transmission. The electronic mailing addresses and
1593	numbers provided by parcel unit owners to receive notice by
1594	electronic transmission shall be removed from association
1595	records when consent to receive notice by electronic
1596	transmission is revoked. However, the association is not liable
1597	for an erroneous disclosure of the electronic mail address or
1598	the number for receiving electronic transmission of notices.
1599	(5) INSPECTION AND COPYING OF RECORDS.-The official
1600	records shall be maintained within the state and must be open to
1601	inspection and available for photocopying by members or their
1602	authorized agents at reasonable times and places within 10
1603	business days after receipt of a written request for access.
1604	This subsection may be complied with by having a copy of the
1605	official records available for inspection or copying in the
1606	community. If the association has a photocopy machine available
1607	where the records are maintained, it must provide parcel owners
1608	with copies on request during the inspection if the entire
1609	request is limited to no more than 25 pages.
1610	(a) The failure of an association to provide access to the
1611	records within 10 business days after receipt of a written
1612	request submitted by certified mail, return receipt requested,
1613	creates a rebuttable presumption that the association willfully
1614	failed to comply with this subsection.
1615	(c) The association may adopt reasonable written rules
1616	governing the frequency, time, location, notice, records to be
1617	inspected, and manner of inspections, but may not require impose
1618	a requirement that a parcel owner to demonstrate any proper
1619	purpose for the inspection, state any reason for the inspection,
1620	or limit a parcel owner's right to inspect records to less than
1621	one 8-hour business day per month. The association may impose
1622	fees to cover the costs of providing copies of the official
1623	records, including, without limitation, the costs of copying.
1624	The association may charge up to 50 cents per page for copies
1625	made on the association's photocopier. If the association does
1626	not have a photocopy machine available where the records are
1627	kept, or if the records requested to be copied exceed 25 pages
1628	in length, the association may have copies made by an outside
1629	vendor or association management company personnel and may
1630	charge the actual cost of copying, including any reasonable
1631	costs involving personnel fees and charges at an hourly rate for
1632	employee time to cover administrative costs to the association.
1633	The association shall maintain an adequate number of copies of
1634	the recorded governing documents, to ensure their availability
1635	to members and prospective members. Notwithstanding the
1636	provisions of this paragraph, the following records are shall
1637	not be accessible to members or parcel owners:
1638	1. Any record protected by the lawyer-client privilege as
1639	described in s. 90.502 and any record protected by the work-
1640	product privilege, including, but not limited to, any record
1641	prepared by an association attorney or prepared at the
1642	attorney's express direction which reflects a mental impression,
1643	conclusion, litigation strategy, or legal theory of the attorney
1644	or the association and which was prepared exclusively for civil
1645	or criminal litigation or for adversarial administrative
1646	proceedings or which was prepared in anticipation of imminent
1647	civil or criminal litigation or imminent adversarial
1648	administrative proceedings until the conclusion of the
1649	litigation or adversarial administrative proceedings.
1650	2. Information obtained by an association in connection
1651	with the approval of the lease, sale, or other transfer of a
1652	parcel.
1653	3. Disciplinary, health, insurance, and personnel records
1654	of the association's employees.
1655	4. Medical records of parcel owners or community
1656	residents.
1657	(6) BUDGETS.-
1658	(b) In addition to annual operating expenses, the budget
1659	may include reserve accounts for capital expenditures and
1660	deferred maintenance for which the association is responsible.
1661	If reserve accounts are not established pursuant to paragraph
1662	(d), funding of such reserves shall be limited to the extent
1663	that the governing documents do not limit increases in
1664	assessments, including reserves. If the budget of the
1665	association includes reserve accounts established pursuant to
1666	paragraph (d), such reserves shall be determined, maintained,
1667	and waived in the manner provided in this subsection. Once an
1668	association provides for reserve accounts pursuant to paragraph
1669	(d) in the budget, the association shall thereafter determine,
1670	maintain, and waive reserves in compliance with this subsection.
1671	This section does not preclude the termination of a reserve
1672	account established pursuant to this paragraph upon approval of
1673	a majority of the voting interests of the association. Upon such
1674	approval, the terminating reserve account shall be removed from
1675	the budget.
1676	(c)1. If the budget of the association does not provide
1677	for reserve accounts pursuant to paragraph (d) governed by this
1678	subsection and the association is responsible for the repair and
1679	maintenance of capital improvements that may result in a special
1680	assessment if reserves are not provided, each financial report
1681	for the preceding fiscal year required under by subsection (7)
1682	shall contain the following statement in conspicuous type:
1683
1684	THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR
1685	RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED
1686	MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
1687	OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS
1688	PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
1689	FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT
1690	LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF
1691	THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR
1692	BY WRITTEN CONSENT.
1693
1694	2. If the budget of the association does provide for
1695	funding accounts for deferred expenditures, including, but not
1696	limited to, funds for capital expenditures and deferred
1697	maintenance, but such accounts are not created or established
1698	pursuant to paragraph (d), each financial report for the
1699	preceding fiscal year required under subsection (7) must also
1700	contain the following statement in conspicuous type:
1701
1702	THE BUDGET OF THE ASSOCIATION DOES PROVIDE FOR LIMITED
1703	VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING
1704	CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT
1705	TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING
1706	DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
1707	PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION
1708	720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT
1709	SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET
1710	FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN
1711	ACCORDANCE WITH THAT STATUTE.
1712
1713	(d) An association shall be deemed to have provided for
1714	reserve accounts if when reserve accounts have been initially
1715	established by the developer or if when the membership of the
1716	association affirmatively elects to provide for reserves. If
1717	reserve accounts are not initially provided for by the
1718	developer, the membership of the association may elect to do so
1719	upon the affirmative approval of not less than a majority of the
1720	total voting interests of the association. Such approval may be
1721	obtained attained by vote of the members at a duly called
1722	meeting of the membership or by the upon a written consent of
1723	executed by not less than a majority of the total voting
1724	interests in the community. The approval action of the
1725	membership shall state that reserve accounts shall be provided
1726	for in the budget and shall designate the components for which
1727	the reserve accounts are to be established. Upon approval by the
1728	membership, the board of directors shall include provide for the
1729	required reserve accounts for inclusion in the budget in the
1730	next fiscal year following the approval and in each year
1731	thereafter. Once established as provided in this subsection, the
1732	reserve accounts shall be funded or maintained or shall have
1733	their funding waived in the manner provided in paragraph (f).
1734	(f) After one or more Once a reserve account or reserve
1735	accounts are established, the membership of the association,
1736	upon a majority vote at a meeting at which a quorum is present,
1737	may provide for no reserves or less reserves than required by
1738	this section. If a meeting of the parcel unit owners has been
1739	called to determine whether to waive or reduce the funding of
1740	reserves and no such result is achieved or a quorum is not
1741	present, the reserves as included in the budget shall go into
1742	effect. After the turnover, the developer may vote its voting
1743	interest to waive or reduce the funding of reserves. Any vote
1744	taken pursuant to this subsection to waive or reduce reserves is
1745	shall be applicable only to one budget year.
1746	(g) Funding formulas for reserves authorized by this
1747	section shall be based on either a separate analysis of each of
1748	the required assets or a pooled analysis of two or more of the
1749	required assets.
1750	1. If the association maintains separate reserve accounts
1751	for each of the required assets, the amount of the contribution
1752	to each reserve account is shall be the sum of the following two
1753	calculations:
1754	a. The total amount necessary, if any, to bring a negative
1755	component balance to zero.
1756	b. The total estimated deferred maintenance expense or
1757	estimated replacement cost of the reserve component less the
1758	estimated balance of the reserve component as of the beginning
1759	of the period for which the budget will be in effect. The
1760	remainder, if greater than zero, shall be divided by the
1761	estimated remaining useful life of the component.
1762
1763	The formula may be adjusted each year for changes in estimates
1764	and deferred maintenance performed during the year and may
1765	include factors such as inflation and earnings on invested
1766	funds.
1767	2. If the association maintains a pooled account of two or
1768	more of the required reserve assets, the amount of the
1769	contribution to the pooled reserve account as disclosed on the
1770	proposed budget may shall not be less than that required to
1771	ensure that the balance on hand at the beginning of the period
1772	for which the budget will go into effect plus the projected
1773	annual cash inflows over the remaining estimated useful life of
1774	all of the assets that make up the reserve pool are equal to or
1775	greater than the projected annual cash outflows over the
1776	remaining estimated useful lives of all of the assets that make
1777	up the reserve pool, based on the current reserve analysis. The
1778	projected annual cash inflows may include estimated earnings
1779	from investment of principal and accounts receivable minus the
1780	allowance for doubtful accounts. The reserve funding formula may
1781	shall not include any type of balloon payments.
1782	(10) RECALL OF DIRECTORS.-
1783	(c)1. If the declaration, articles of incorporation, or
1784	bylaws specifically provide, the members may also recall and
1785	remove a board director or directors by a vote taken at a
1786	meeting. If so provided in the governing documents, a special
1787	meeting of the members to recall a director or directors of the
1788	board of administration may be called by 10 percent of the
1789	voting interests giving notice of the meeting as required for a
1790	meeting of members, and the notice shall state the purpose of
1791	the meeting. Electronic transmission may not be used as a method
1792	of giving notice of a meeting called in whole or in part for
1793	this purpose.
1794	2. The board shall duly notice and hold a board meeting
1795	within 5 full business days after the adjournment of the member
1796	meeting to recall one or more directors. At the meeting, the
1797	board shall certify the recall, in which case such member or
1798	members shall be recalled effective immediately and shall turn
1799	over to the board within 5 full business days any and all
1800	records and property of the association in their possession, or
1801	shall proceed as set forth in paragraph subparagraph (d).
1802	(d) If the board determines not to certify the written
1803	agreement or written ballots to recall a director or directors
1804	of the board or does not certify the recall by a vote at a
1805	meeting, the board shall, within 5 full business days after the
1806	meeting, initiate file with the department a petition for
1807	binding arbitration pursuant to the applicable procedures in s.
1808	720.507 ss. 718.112(2)(j) and 718.1255 and the rules adopted
1809	thereunder. For the purposes of this section, the members who
1810	voted at the meeting or who executed the agreement in writing
1811	shall constitute one party under the petition for arbitration.
1812	If the arbitrator certifies the recall as to any director or
1813	directors of the board, the recall will be effective upon
1814	mailing of the final order of arbitration to the association.
1815	The director or directors so recalled shall deliver to the board
1816	any and all records of the association in their possession
1817	within 5 full business days after the effective date of the
1818	recall.
1819	(12) COMPENSATION PROHIBITED.-A director, officer, or
1820	committee member of the association may not receive, directly or
1821	indirectly, any salary or compensation from the association for
1822	the performance of duties as a director, officer, or committee
1823	member and may not in any other way benefit financially from
1824	service to the association. This subsection does not preclude:
1825	(a) Participation by such person in a financial benefit
1826	accruing to all or a significant number of members as a result
1827	of actions lawfully taken by the board or a committee of which
1828	he or she is a member, including, but not limited to, routine
1829	maintenance, repair, or replacement of community assets.
1830	(b) Reimbursement for out-of-pocket expenses incurred by
1831	such person on behalf of the association, subject to approval in
1832	accordance with procedures established by the association's
1833	governing documents or, in the absence of such procedures, in
1834	accordance with an approval process established by the board.
1835	(c) Any recovery of insurance proceeds derived from a
1836	policy of insurance maintained by the association for the
1837	benefit of its members.
1838	(d) Any fee or compensation authorized in the governing
1839	documents.
1840	(e) Any fee or compensation authorized in advance by a
1841	vote of a majority of the voting interests voting in person or
1842	by proxy at a meeting of the members.
1843	(f) A developer or its representative from serving as a
1844	director, officer, or committee member of the association and
1845	benefiting financially from service to the association.
1846	(13) BORROWING.-The borrowing of funds or committing to a
1847	line of credit by the board of administration shall be
1848	considered a special assessment, and any meeting of the board of
1849	administration to discuss such matters must be noticed as
1850	provided in paragraph (2)(c). The board may not borrow funds or
1851	enter into a line of credit for any purpose unless the specific
1852	use of the funds from the loan or line of credit is set forth in
1853	the notice of meeting with the same specificity as required for
1854	a special assessment or unless the borrowing or line of credit
1855	has received the prior approval of at least two-thirds of the
1856	voting interests of the association.
1857	(14) TRANSFER FEES.-No charge may be made by the
1858	association or anyone on its behalf in connection with the sale,
1859	mortgage, lease, sublease, or other transfer of a parcel.
1860	Nothing in this subsection may be construed to prohibit an
1861	association from requiring as a condition to permitting the
1862	letting or renting of a parcel, when the association has such
1863	authority in the documents, the depositing into an escrow
1864	account maintained by the association of a security deposit in
1865	an amount not to exceed the equivalent of 1 month's rent. The
1866	security deposit shall protect against damages to the common
1867	areas or association property. Within 15 days after a tenant
1868	vacates the premises, the association shall refund the full
1869	security deposit or give written notice to the tenant of any
1870	claim made against the security. Disputes under this subsection
1871	shall be handled in the same fashion as disputes concerning
1872	security deposits under s. 83.49.
1873	Section 16. Paragraph (a) of subsection (2) of section
1874	720.304, Florida Statutes, is amended to read:
1875	720.304 Right of owners to peaceably assemble; display of
1876	flag; SLAPP suits prohibited.-
1877	(2)(a) Any homeowner may display within the boundaries of
1878	the homeowner's parcel one portable, removable United States
1879	flag or official flag of the State of Florida in a respectful
1880	manner, and one portable, removable official flag, in a
1881	respectful way and, on Armed Forces Day, Memorial Day, Flag Day,
1882	Independence Day, and Veterans' Day, may display in a respectful
1883	way portable, removable official flags manner, not larger than 4
1884	1/2 feet by 6 feet, that represent which represents the United
1885	States Army, Navy, Air Force, Marine Corps, or Coast Guard, or a
1886	POW-MIA flag, regardless of any declaration covenants,
1887	restrictions, bylaws, rules, or requirements dealing with flags
1888	or decorations of the association.
1889	Section 17. Subsection (2) of section 720.305, Florida
1890	Statutes, is amended to read:
1891	720.305 Obligations of members; remedies at law or in
1892	equity; levy of fines and suspension of use rights.-
1893	(2) If the governing documents so provide, an association
1894	may suspend, for a reasonable period of time, the rights of a
1895	member or a member's tenants, guests, or invitees, or both, to
1896	use common areas and facilities and may levy reasonable fines of
1897	up to, not to exceed $100 per violation, against any member or
1898	any tenant, guest, or invitee. A fine may be levied on the basis
1899	of each day of a continuing violation, with a single notice and
1900	opportunity for hearing, except that no such fine may shall
1901	exceed $1,000 in the aggregate unless otherwise provided in the
1902	governing documents. A fine of less than $1,000 may shall not
1903	become a lien against a parcel. In any action to
1904	the prevailing party is entitled to collect its
1905	attorney's fees and costs from the nonprevailing
1906	determined by the court.
1907	(a) A fine or suspension may not be imposed without notice
1908	of at least 14 days' notice days to the person sought to be
1909	fined or suspended and an opportunity for a hearing before a
1910	committee of at least three members appointed by the board who
1911	are not officers, directors, or employees of the association, or
1912	the spouse, parent, child, brother, or sister of an officer,
1913	director, or employee. If the committee, by majority vote, does
1914	not approve a proposed fine or suspension, it may not be
1915	imposed.
1916	(b) The requirements of this subsection do not apply to
1917	the imposition of suspensions or fines upon any member because
1918	of the failure of the member to pay assessments or other charges
1919	when due if such action is authorized by the governing
1920	documents.
1921	(c) Suspension of common-area-use rights do shall not
1922	impair the right of an owner or tenant of a parcel to have
1923	vehicular and pedestrian ingress to and egress from the parcel,
1924	including, but not limited to, the right to park.
1925	Section 18. Subsections (8) and (9) of section 720.306,
1926	Florida Statutes, are amended to read:
1927	720.306 Meetings of members; voting and election
1928	procedures; amendments.-
1929	(8) PROXY VOTING.-The members have the right, unless
1930	otherwise provided in this subsection or in the governing
1931	documents, to vote in person or by proxy.
1932	(a) To be valid, a proxy must be dated, must state the
1933	date, time, and place of the meeting for which it was given, and
1934	must be signed by the authorized person who executed the proxy.
1935	A proxy is effective only for the specific meeting for which it
1936	was originally given, as the meeting may lawfully be adjourned
1937	and reconvened from time to time, and automatically expires 90
1938	days after the date of the meeting for which it was originally
1939	given. A proxy is revocable at any time at the pleasure of the
1940	person who executes it. If the proxy form expressly so provides,
1941	any proxy holder may appoint, in writing, a substitute to act in
1942	his or her place.
1943	(b) If the governing documents permit voting by secret
1944	ballot by members who are not in attendance at a meeting of the
1945	members for the election of directors, such ballots shall be
1946	placed in an inner envelope with no identifying markings and
1947	mailed or delivered to the association in an outer envelope
1948	bearing identifying information reflecting the name of the
1949	member, the lot or parcel for which the vote is being cast, and
1950	the signature of the lot or parcel owner casting that ballot.
1951	After the eligibility of the member to vote and confirmation
1952	that no other ballot has been submitted for that lot or parcel,
1953	the inner envelope shall be removed from the outer envelope
1954	bearing the identification information, placed with the ballots
1955	which were personally cast, and opened when the ballots are
1956	counted. If more than one ballot is submitted for a lot or
1957	parcel, the ballots for that lot or parcel shall be
1958	disqualified. Any vote by ballot received after the closing of
1959	the balloting may not be considered.
1960	(9) ELECTIONS; BOARD MEMBER CERTIFICATION.-
1961	(a) Elections of directors must be conducted in accordance
1962	with the procedures set forth in the governing documents of the
1963	association. All members of the association are shall be
1964	eligible to serve on the board of directors, and a member may
1965	nominate himself or herself as a candidate for the board at a
1966	meeting where the election is to be held or, if the election
1967	process allows voting by absentee ballot, in advance of the
1968	balloting. Except as otherwise provided in the governing
1969	documents, boards of directors must be elected by a plurality of
1970	the votes cast by eligible voters. Any election dispute between
1971	a member and an association must be submitted to mandatory
1972	binding arbitration with the division. Such proceedings shall be
1973	conducted in the manner provided by s. 720.507 718.1255 and the
1974	procedural rules adopted by the division.
1975	(b) Within 30 days after being elected to the board of
1976	directors, a new director shall certify in writing to the
1977	secretary of the association that he or she has read the
1978	association's declarations of covenants and restrictions,
1979	articles of incorporation, bylaws, and current written policies
1980	and that he or she will work to uphold each to the best of his
1981	or her ability and will faithfully discharge his or her
1982	fiduciary responsibility to the association's members. Failure
1983	to timely file such statement shall automatically disqualify the
1984	director from service on the association's board of directors.
1985	The secretary shall cause the association to retain a director's
1986	certification for inspection by the members for 5 years after a
1987	director's election. Failure to have such certification on file
1988	does not affect the validity of any appropriate action.
1989	Section 19. Section (8) is added to section 720.3085,
1990	Florida Statutes, to read:
1991	720.3085 Payment for assessments; lien claims.-
1992	(8) During the pendency of any foreclosure action of a
1993	parcel within a homeowners' association, if the home is occupied
1994	by a tenant and the parcel owner is delinquent in the payment of
1995	regular assessments, the association may demand that the tenant
1996	pay to the association the future regular assessments related to
1997	the parcel. The demand shall be continuing in nature, and upon
1998	demand the tenant shall continue to pay the regular assessments
1999	to the association until the association releases the tenant or
2000	the tenant discontinues tenancy in the home. The association
2001	shall mail written notice to the parcel owner of the
2002	association's demand that the tenant pay regular assessments to
2003	the association. The tenant shall not be liable for increases in
2004	the amount of the regular assessment due unless the tenant was
2005	reasonably notified of the increase prior to the day that the
2006	rent is due. The tenant shall be given a credit against rents
2007	due to the parcel owner in the amount of assessments paid to the
2008	association. The association shall, upon request, provide the
2009	tenant with written receipts for payments made. The association
2010	may issue notices under s. 83.56 and may sue for eviction under
2011	ss. 83.59-83.625 as if the association were a landlord under
2012	part II of chapter 83 should the tenant fail to pay an
2013	assessment. However, the association shall not otherwise be
2014	considered a landlord under chapter 83 and shall specifically
2015	not have any duty under s. 83.51. The tenant shall not, by
2016	virtue of payment of assessments, have any of the rights of a
2017	parcel owner to vote in any election or to examine the books and
2018	records of the association. A court may supersede the effect of
2019	this subsection by appointing a receiver. Payments made by a
2020	tenant pursuant to this subsection in lieu of or as a credit
2021	against rent shall not be considered a breach of any lease
2022	between the tenant and the parcel owner nor serve as cause for
2023	eviction or other action for failure to pay rent. Under no
2024	circumstances shall the amount of assessments for which a tenant
2025	is held responsible under this subsection exceed the amount owed
2026	in rent to the parcel owner.
2027	Section 20. Section 720.3095, Florida Statutes, is created
2028	to read:
2029	720.3095 Management and maintenance agreements entered
2030	into by the association.-
2031	(1) A written contract between a party contracting to
2032	provide maintenance or management services and an association
2033	which provides for operation, maintenance, or management of a
2034	homeowners' association is not valid or enforceable unless the
2035	contract:
2036	(a) Specifies the services, obligations, and
2037	responsibilities of the party contracting to provide maintenance
2038	or management services to the parcel owners.
2039	(b) Specifies those costs incurred in the performance of
2040	those services, obligations, or responsibilities which are to be
2041	reimbursed by the association to the party contracting to
2042	provide maintenance or management services.
2043	(c) Provides an indication of how often each service,
2044	obligation, or responsibility is to be performed, whether stated
2045	for each service, obligation, or responsibility or in categories
2046	thereof.
2047	(d) Specifies a minimum number of personnel to be employed
2048	by the party contracting to provide maintenance or management
2049	services for the purpose of providing service to the
2050	association.
2051	(e) Discloses any financial or ownership interest which
2052	the developer, if the developer is in control of the
2053	association, holds with regard to the party contracting to
2054	provide maintenance or management services.
2055	(f) Discloses any financial or ownership interest a board
2056	member or any party providing maintenance or management services
2057	to the association holds with the contracting party.
2058	(2) In any case in which the party contracting to provide
2059	maintenance or management services fails to provide such
2060	services in accordance with the contract, the association is
2061	authorized to procure such services from some other party and
2062	shall be entitled to collect any fees or charges paid for
2063	services performed by another party from the party contracting
2064	to provide maintenance or management services.
2065	(3) Any services or obligations not stated on the face of
2066	the contract shall be unenforceable.
2067	(4) Notwithstanding the fact that certain vendors contract
2068	with associations to maintain equipment or property which is
2069	made available to serve parcel owners, it is the intent of the
2070	Legislature that this section applies to contracts for
2071	maintenance or management services for which the association
2072	pays compensation. This section does not apply to contracts for
2073	services or property made available for the convenience of
2074	parcel owners by lessees or licensees of the association, such
2075	as coin-operated laundry, food, soft drink, or telephone
2076	vendors; cable television operators; retail store operators;
2077	businesses; restaurants; or similar vendors.
2078	Section 21. Section 720.3096, Florida Statutes, is created
2079	to read:
2080	720.3096 Limitation on agreements entered into by the
2081	association.-As to any contract or other transaction between an
2082	association and one or more of its directors or any other
2083	corporation, firm, association, or entity in which one or more
2084	of its directors are directors or officers or are financially
2085	interested:
2086	(1) The association must comply with the requirements of
2087	s. 617.0832.
2088	(2) The disclosures required by s. 617.0832 must be
2089	entered into the written minutes of the meeting.
2090	(3) Approval of the contract or other transaction requires
2091	an affirmative vote of at least two-thirds of the directors
2092	present.
2093	(4) At the next regular or special meeting of the members,
2094	the existence of the contract or other transaction must be
2095	disclosed to the members. Upon motion of any member, the
2096	contract or transaction shall be brought up for a vote and may
2097	be canceled by a majority vote of the members present. If the
2098	members cancel the contract, the association is liable for only
2099	the reasonable value of goods and services provided up to the
2100	time of cancellation and is not liable for any termination fee,
2101	liquidated damages, or other form of penalty for such
2102	cancellation.
2103	Section 22. Section 720.311, Florida Statutes, is
2104	repealed.
2105	Section 23. Paragraph (a) of subsection (1) of section
2106	720.401, Florida Statutes, is amended to read:
2107	720.401 Prospective purchasers subject to association
2108	membership requirement; disclosure required; covenants;
2109	assessments; contract cancellation.-
2110	(1)(a) A prospective parcel owner in a community must be
2111	presented a disclosure summary before executing the contract for
2112	sale. The disclosure summary must be in a form substantially
2113	similar to the following form:
2114
2115	DISCLOSURE SUMMARY
2116	FOR
2117	(NAME OF COMMUNITY)
2118
2119	1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
2120	BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
2121	2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
2122	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
2123	COMMUNITY.
2124	3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
2125	ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
2126	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL
2127	ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
2128	ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
2129	IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
2130	4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
2131	RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
2132	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
2133	5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
2134	LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION MAY COULD RESULT
2135	IN A LIEN ON YOUR PROPERTY.
2136	6. THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
2137	FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
2138	OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
2139	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
2140	7. IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE
2141	DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
2142	RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
2143	MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
2144	8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
2145	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
2146	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
2147	DOCUMENTS BEFORE PURCHASING PROPERTY.
2148	9. THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
2149	CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
2150	PROPERTY IS LOCATED, OR, IF ARE NOT RECORDED, AND CAN BE
2151	OBTAINED FROM THE DEVELOPER.
2152	10. THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES
2153	OR FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR THE
2154	PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT
2155	INFRASTRUCTURE OR OTHER IMPROVEMENTS.
2156	11. YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS
2157	OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE
2158	UP TO THE TIME OF TRANSFER OF TITLE.
2159
2160	DATE: PURCHASER:
2161	PURCHASER:
2162
2163	The disclosure must be supplied by the developer, or by the
2164	parcel owner if the sale is by an owner that is not the
2165	developer. Any contract or agreement for sale shall refer to and
2166	incorporate the disclosure summary and shall include, in
2167	prominent language, a statement that the potential buyer should
2168	not execute the contract or agreement until he or she has they
2169	have received and read the disclosure summary required by this
2170	section.
2171	Section 24. Part IV of chapter 720, Florida Statutes,
2172	consisting of sections 720.501, 720.502, 720.503, 720.504,
2173	720.505, 720.506, 720.507, 720.508, 720.509, and 720.510, is
2174	created to read:
2175	PART IV
2176	DISPUTE RESOLUTION
2177	720.501 Short title.-This part may be cited as the "Home
2178	Court Advantage Dispute Resolution Act."
2179	720.502 Legislative findings.-The Legislature finds that
2180	alternative dispute resolution has made progress in reducing
2181	court dockets and trials and in offering a more efficient, cost-
2182	effective option to litigation.
2183	720.503 Applicability of this part.-
2184	(1) Unless otherwise provided in this part, before a
2185	dispute described in this part between a homeowners' association
2186	and a parcel owner or owners, or a dispute between parcel owners
2187	within the same homeowners' association, may be filed in court,
2188	the dispute is subject to presuit mediation pursuant to s.
2189	720.505 or presuit arbitration pursuant to s. 720.507, at the
2190	option of the aggrieved party who initiates the first formal
2191	action of alternative dispute resolution under this part. The
2192	parties may mutually agree to participate in both presuit
2193	mediation and presuit arbitration prior to suit being filed by
2194	either party.
2195	(2) Unless otherwise provided in this part, the mediation
2196	and arbitration provisions of this part are limited to disputes
2197	between an association and a parcel owner or owners or between
2198	parcel owners regarding the use of or changes to the parcel or
2199	the common areas under the governing documents and other
2200	disputes involving violations of the recorded declaration of
2201	covenants or other governing documents, disputes arising
2202	concerning enforcement of the governing documents or any
2203	amendments thereto, and disputes involving access to the
2204	official records of the association. A dispute concerning title
2205	to any parcel or common area, interpretation or enforcement of
2206	any warranty, the levy of a fee or assessment, the collection of
2207	an assessment levied against a party, the eviction or other
2208	removal of a tenant from a parcel, alleged breaches of fiduciary
2209	duty by one or more directors, or any action to collect mortgage
2210	indebtedness or to foreclosure a mortgage shall not be subject
2211	to the provisions of this part.
2212	(3) A dispute arising after the effective date of this
2213	part involving the election of the board of directors for an
2214	association or the recall of any member of the board or officer
2215	of the association is ineligible for presuit mediation under s.
2216	720.505 and subject to presuit arbitration under s. 720.507.
2217	(4) In any dispute subject to presuit mediation or presuit
2218	arbitration under this part for which emergency relief is
2219	required, a motion for temporary injunctive relief may be filed
2220	with the court without first complying with the presuit
2221	mediation or presuit arbitration requirements of this part.
2222	After any issues regarding emergency or temporary relief are
2223	resolved, the court may refer the parties to a mediation program
2224	administered by the courts or require mediation or arbitration
2225	under this part.
2226	(5) The mailing of a statutory notice of presuit mediation
2227	or presuit arbitration as provided in this part shall toll the
2228	applicable statute of limitations during the pendency of the
2229	mediation or arbitration and for a period of 30 days following
2230	the conclusion of either proceeding. The 30-day period shall
2231	start upon the filing of the mediator's notice of impasse or the
2232	arbitrator's written arbitration award. If the parties mutually
2233	agree to participate in both presuit mediation and presuit
2234	arbitration under this part, the tolling of the applicable
2235	statute of limitations for each such alternative dispute
2236	resolution proceeding shall be consecutive.
2237	720.504 Notice of dispute.-Prior to giving the statutory
2238	notice to proceed under presuit mediation or presuit arbitration
2239	under this part, the aggrieved association or parcel owner must
2240	first provide written notice of the dispute to the responding
2241	party in the manner provided by this section.
2242	(1) The notice of dispute shall be delivered to the
2243	responding party by certified mail, return receipt requested, or
2244	in person, and the person making delivery shall file with the
2245	notice of mediation either the proof of receipt of mailing or an
2246	affidavit stating the date and time of the delivery of the
2247	notice of dispute. If the notice is delivered by certified mail,
2248	return receipt requested, and the responding party fails or
2249	refuses to accept delivery, notice shall be considered properly
2250	delivered for purposes of this section on the date of the first
2251	attempted delivery.
2252	(2) The notice of dispute shall state with specificity the
2253	nature of the dispute, including the date, time, and location of
2254	each event that is the subject of the dispute and the action
2255	requested to resolve the dispute. The notice shall also include
2256	the text of any provision in the governing documents, including
2257	the rules and regulations, of the association which form the
2258	basis of the dispute.
2259	(3) Unless the parties otherwise agree in writing to a
2260	longer time period, the party receiving the notice of dispute
2261	shall have 10 days following the date of receipt of notice to
2262	resolve the dispute. If the alleged dispute has not been
2263	resolved within the 10-day period, the aggrieved party may
2264	proceed under this part at any time thereafter within the
2265	applicable statute of limitations.
2266	(4) A copy of the notice and the text of the provision in
2267	the governing documents, or the rules and regulations, of the
2268	association which are the basis of the dispute, along with proof
2269	of service of the notice of dispute and a copy of any written
2270	responses received from the responding party, shall be included
2271	as an exhibit to any demand for mediation or arbitration under
2272	this part.
2273	720.505 Presuit mediation.-
2274	(1) Disputes between an association and a parcel owner or
2275	owners or between parcel owners must be submitted to presuit
2276	mediation before the dispute may be filed in court; or, at the
2277	election of the party initiating the presuit procedures, such
2278	dispute may be submitted to presuit arbitration pursuant to s.
2279	720.507 before the dispute may be filed in court. An aggrieved
2280	party who elects to use the presuit mediation procedure under
2281	this section shall serve on the responding party a written
2282	notice of presuit mediation in substantially the following form:
2283
2284	STATUTORY NOTICE OF PRESUIT MEDIATION
2285
2286	THE ALLEGED AGGRIEVED PARTY, ____________________,
2287	HEREBY DEMANDS THAT ____________________, AS THE
2288	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
2289	MEDIATION IN CONNECTION WITH THE FOLLOWING DISPUTE(S)
2290	WITH YOU, WHICH BY STATUTE ARE OF A TYPE THAT ARE
2291	SUBJECT TO PRESUIT MEDIATION:
2292
2293	ATTACHED IS A COPY OF THE PRIOR NOTICE OF VIOLATION
2294	WHICH DETAILS THE SPECIFIC NATURE OF THE DISPUTE(S) TO
2295	BE MEDIATED AND THE AUTHORITY SUPPORTING A FINDING OF
2296	A VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
2297	LIMITED TO, THE APPLICABLE PROVISIONS OF THE GOVERNING
2298	DOCUMENTS OF THE ASSOCIATION BELIEVED TO APPLY TO THE
2299	DISPUTE BETWEEN THE PARTIES, AND A COPY OF THE NOTICE
2300	YOU RECEIVED OR REFUSED AND COPIES OF ANY WRITTEN
2301	RESPONSE(S) RECEIVED FROM YOU ABOUT THIS DISPUTE.
2302
2303	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
2304	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
2305	MEDIATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
2306	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
2307	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
2308	MEDIATION WITH A NEUTRAL THIRD-PARTY MEDIATOR IN ORDER
2309	TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
2310	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
2311	PARTICIPATE IN THIS PROCESS. UNLESS YOU RESPOND TO
2312	THIS NOTICE BY FILING WITH THE AGGRIEVED PARTY A
2313	NOTICE OF OPTING OUT AND DEMAND FOR ARBITRATION UNDER
2314	SECTION 720.506, FLORIDA STATUTES, YOUR FAILURE TO
2315	PARTICIPATE IN THE MEDIATION PROCESS MAY RESULT IN A
2316	LAWSUIT BEING FILED IN COURT AGAINST YOU WITHOUT
2317	FURTHER NOTICE.
2318
2319	THE PROCESS OF MEDIATION INVOLVES A SUPERVISED
2320	NEGOTIATION PROCESS IN WHICH A TRAINED, NEUTRAL THIRD-
2321	PARTY MEDIATOR MEETS WITH BOTH PARTIES AND ASSISTS
2322	THEM IN EXPLORING POSSIBLE OPPORTUNITIES FOR RESOLVING
2323	PART OR ALL OF THE DISPUTE. BY AGREEING TO PARTICIPATE
2324	IN PRESUIT MEDIATION, YOU ARE NOT BOUND IN ANY WAY TO
2325	CHANGE YOUR POSITION. FURTHERMORE, THE MEDIATOR HAS NO
2326	AUTHORITY TO MAKE ANY DECISIONS IN THIS MATTER OR TO
2327	DETERMINE WHO IS RIGHT OR WRONG AND MERELY ACTS AS A
2328	FACILITATOR TO ENSURE THAT EACH PARTY UNDERSTANDS THE
2329	POSITION OF THE OTHER PARTY AND THAT ALL OPTIONS FOR
2330	REASONABLE SETTLEMENT ARE FULLY EXPLORED.
2331
2332	IF AN AGREEMENT IS REACHED, IT SHALL BE REDUCED TO
2333	WRITING AND BECOME A BINDING AND ENFORCEABLE CONTRACT
2334	BETWEEN THE PARTIES. A RESOLUTION OF ONE OR MORE
2335	DISPUTES IN THIS FASHION AVOIDS THE NEED TO LITIGATE
2336	THESE ISSUES IN COURT. THE FAILURE TO REACH AN
2337	AGREEMENT, OR THE FAILURE OF A PARTY TO PARTICIPATE IN
2338	THE PROCESS, RESULTS IN THE MEDIATOR DECLARING AN
2339	IMPASSE IN THE MEDIATION, AFTER WHICH THE AGGRIEVED
2340	PARTY MAY PROCEED TO FILE A LAWSUIT ON ALL
2341	OUTSTANDING, UNSETTLED DISPUTES. IF YOU HAVE FAILED OR
2342	REFUSED TO PARTICIPATE IN THE ENTIRE MEDIATION
2343	PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER
2344	ATTORNEY'S FEES IF YOU PREVAIL IN A SUBSEQUENT COURT
2345	PROCEEDING INVOLVING THE SAME DISPUTE.
2346
2347	THE AGGRIEVED PARTY HAS SELECTED FROM A LIST OF
2348	ELIGIBLE, QUALIFIED MEDIATORS AT LEAST FIVE CERTIFIED
2349	MEDIATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
2350	NEUTRAL AND QUALIFIED TO MEDIATE THE DISPUTE. YOU HAVE
2351	THE RIGHT TO SELECT ANY ONE OF THESE MEDIATORS. THE
2352	FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR MORE
2353	OF THE LISTED MEDIATORS DOES NOT MEAN THAT THE
2354	MEDIATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
2355	FACILITATOR. THE NAMES OF THE MEDIATORS THAT THE
2356	AGGRIEVED PARTY HEREBY SUBMITS TO YOU FROM WHOM YOU
2357	MAY CHOOSE ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE
2358	NUMBERS, AND HOURLY RATES ARE AS FOLLOWS:
2359
2360	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
2361	HOURLY RATES OF THE MEDIATORS. OTHER PERTINENT
2362	INFORMATION ABOUT THE BACKGROUND OF THE MEDIATORS MAY
2363	BE INCLUDED AS AN ATTACHMENT.)
2364
2365	YOU MAY CONTACT THE OFFICES OF THESE MEDIATORS TO
2366	CONFIRM THAT EACH OF THE ABOVE-LISTED MEDIATORS WILL
2367	BE NEUTRAL AND WILL NOT SHOW ANY FAVORITISM TOWARD
2368	EITHER PARTY. UNLESS OTHERWISE AGREED TO BY THE
2369	PARTIES, PART IV OF CHAPTER 720, FLORIDA STATUTES,
2370	REQUIRES THAT THE PARTIES SHARE THE COSTS OF PRESUIT
2371	MEDIATION EQUALLY, INCLUDING THE FEE CHARGED BY THE
2372	MEDIATOR. AN AVERAGE MEDIATION MAY REQUIRE 3 TO 4
2373	HOURS OF THE MEDIATOR'S TIME, INCLUDING SOME
2374	PREPARATION TIME, AND THE PARTIES WOULD NEED TO
2375	EQUALLY SHARE THE MEDIATOR'S FEES AS WELL AS BE
2376	RESPONSIBLE FOR ALL OF THEIR OWN ATTORNEY'S FEES IF
2377	THEY CHOOSE TO EMPLOY AN ATTORNEY IN CONNECTION WITH
2378	THE MEDIATION. HOWEVER, USE OF AN ATTORNEY IS NOT
2379	REQUIRED AND IS AT THE OPTION OF EACH PARTY. THE
2380	MEDIATORS MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR
2381	ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY
2382	HEREBY AGREES TO PAY OR PREPAY ONE-HALF OF THE
2383	SELECTED MEDIATOR'S ESTIMATED FEES AND TO FORWARD THIS
2384	AMOUNT OR SUCH OTHER REASONABLE ADVANCE DEPOSITS AS
2385	THE MEDIATOR REQUIRES FOR THIS PURPOSE UPON THE
2386	SELECTION OF THE MEDIATOR. ANY FUNDS DEPOSITED WILL BE
2387	RETURNED TO YOU IF THESE FUNDS ARE IN EXCESS OF YOUR
2388	SHARE OF THE MEDIATOR FEES INCURRED.
2389
2390	TO BEGIN YOUR PARTICIPATION IN PRESUIT MEDIATION TO
2391	TRY TO RESOLVE THE DISPUTE WITH YOU AND AVOID FURTHER
2392	LEGAL ACTION, PLEASE SIGN BELOW AND CLEARLY INDICATE
2393	WHICH MEDIATOR IS ACCEPTABLE TO YOU FROM THE FIVE
2394	MEDIATORS LISTED BY THE AGGRIEVED PARTY ABOVE.
2395
2396	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
2397	OF PRESUIT MEDIATION WITHIN 20 DAYS. IN YOUR RESPONSE
2398	YOU MUST PROVIDE A LISTING OF AT LEAST THREE DATES AND
2399	TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE
2400	MEDIATION THAT ARE WITHIN 90 DAYS AFTER THE POSTMARKED
2401	DATE OF THE MAILING OF THIS NOTICE OF PRESUIT
2402	MEDIATION OR WITHIN 90 DAYS AFTER THE DATE YOU WERE
2403	SERVED WITH A COPY OF THIS NOTICE. THE AGGRIEVED PARTY
2404	WILL THEN ASK THE MEDIATOR TO SCHEDULE A MUTUALLY
2405	CONVENIENT TIME AND PLACE FOR THE MEDIATION CONFERENCE
2406	TO BE HELD. IF YOU DO NOT PROVIDE A LIST OF AVAILABLE
2407	DATES AND TIMES, THE MEDIATOR IS AUTHORIZED TO
2408	SCHEDULE A MEDIATION CONFERENCE WITHOUT TAKING YOUR
2409	SCHEDULE AND CONVENIENCE INTO CONSIDERATION. IN NO
2410	EVENT SHALL THE MEDIATION CONFERENCE BE LATER THAN 90
2411	DAYS AFTER THE NOTICE OF PRESUIT MEDIATION WAS FIRST
2412	SERVED UNLESS ALL PARTIES MUTUALLY AGREE OTHERWISE. IN
2413	THE EVENT THAT YOU FAIL TO RESPOND WITHIN 20 DAYS
2414	AFTER THE DATE OF THIS NOTICE, FAIL TO PROVIDE THE
2415	MEDIATOR WITH DATES AND TIMES IN WHICH YOU ARE
2416	AVAILABLE FOR THE MEDIATION CONFERENCE, FAIL TO AGREE
2417	TO ONE OF THE MEDIATORS THAT THE AGGRIEVED PARTY HAS
2418	LISTED, FAIL TO PAY OR PREPAY TO THE MEDIATOR ONE-HALF
2419	OF THE COSTS INVOLVED, OR FAIL TO APPEAR AND
2420	PARTICIPATE AT THE SCHEDULED MEDIATION, THE AGGRIEVED
2421	PARTY WILL BE AUTHORIZED TO PROCEED WITH THE FILING OF
2422	A LAWSUIT AGAINST YOU WITHOUT FURTHER NOTICE. IN ANY
2423	SUBSEQUENT COURT ACTION, THE AGGRIEVED PARTY MAY SEEK
2424	AN AWARD OF REASONABLE ATTORNEY'S FEES AND COSTS
2425	INCURRED IN ATTEMPTING TO OBTAIN MEDIATION.
2426
2427	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
2428	LAW, YOUR RESPONSE MUST BE MAILED BY CERTIFIED, FIRST-
2429	CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE AGGRIEVED
2430	PARTY LISTED ABOVE AT THE ADDRESS SHOWN ON THIS NOTICE
2431	AND POSTMARKED NO MORE THAN 20 DAYS AFTER THE DATE OF
2432	THE POSTMARKED DATE FOR THIS NOTICE OR WITHIN 20 DAYS
2433	AFTER THE DATE UPON WHICH YOU WERE SERVED WITH A COPY
2434	OF THIS NOTICE.
2435
2436	________________________
2437	SIGNATURE OF AGGRIEVED PARTY
2438
2439	______________________
2440	PRINTED NAME OF AGGRIEVED PARTY
2441
2442	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
2443	ACCEPTANCE OF THE AGREEMENT TO MEDIATE.
2444
2445	AGREEMENT TO MEDIATE
2446
2447	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
2448	PRESUIT MEDIATION AND AGREES TO ATTEND A MEDIATION
2449	CONDUCTED BY THE MEDIATOR LISTED BELOW AS ACCEPTABLE
2450	TO MEDIATE THIS DISPUTE:
2451
2452	(LIST ONE ACCEPTABLE MEDIATOR FROM THOSE LISTED BY THE
2453	AGGRIEVED PARTY.)
2454
2455	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE CAN
2456	ATTEND AND PARTICIPATE IN THE PRESUIT MEDIATION AT THE
2457	FOLLOWING DATES AND TIMES:
2458
2459	(LIST AT LEAST THREE AVAILABLE DATES AND TIMES WITHIN
2460	THE 90-DAY TIME LIMIT DESCRIBED ABOVE.)
2461
2462	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
2463	MEDIATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
2464	AS THE MEDIATOR MAY REQUIRE FOR THIS PURPOSE.
2465
2466	______________________________
2467	SIGNATURE OF RESPONDING PARTY #1
2468	______________________________
2469	TELEPHONE CONTACT INFORMATION
2470
2471	______________________________
2472	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
2473	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
2474	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
2475	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
2476	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
2477
2478	(2)(a) Service of the notice of presuit mediation shall be
2479	effected either by personal service, as provided in chapter 48,
2480	or by certified mail, return receipt requested, in a letter in
2481	substantial conformity with the form provided in subsection (1),
2482	with an additional copy being sent by regular first-class mail,
2483	to the address of the responding party as it last appears on the
2484	books and records of the association or, if not available, then
2485	as it last appears in the official records of the county
2486	property appraiser where the parcel in dispute is located. The
2487	responding party has 20 days after the postmarked date of the
2488	mailing of the statutory notice or the date the responding party
2489	is served with a copy of the notice to serve a written response
2490	to the aggrieved party. The response shall be served by
2491	certified mail, return receipt requested, with an additional
2492	copy being sent by regular first-class mail, to the address
2493	shown on the statutory notice. The date of the postmark on the
2494	envelope for the response shall constitute the date that the
2495	response is served. Once the parties have agreed on a mediator,
2496	the mediator may schedule or reschedule the mediation for a date
2497	and time mutually convenient to the parties within 90 days after
2498	the date of service of the statutory notice. After such 90-day
2499	period, the mediator may reschedule the mediation only upon the
2500	mutual written agreement of all the parties.
2501	(b) The parties shall share the costs of presuit mediation
2502	equally, including the fee charged by the mediator, if any,
2503	unless the parties agree otherwise, and the mediator may require
2504	advance payment of his or her reasonable fees and costs. Each
2505	party shall be responsible for that party's own attorney's fees
2506	if a party chooses to be represented by an attorney at the
2507	mediation.
2508	(c) The party responding to the aggrieved party may
2509	provide a notice of opting out under s. 720.506 and demand
2510	arbitration or may sign the agreement to mediate included in the
2511	notice of presuit mediation. A responding party signing the
2512	agreement to mediate must clearly indicate the name of the
2513	mediator who is acceptable from the five names provided by the
2514	aggrieved party and must provide a list of dates and times in
2515	which the responding party is available to participate in the
2516	mediation within 90 days after the date the responding party was
2517	served, either by process server or by certified mail, with the
2518	statutory notice of presuit mediation.
2519	(d) The mediator who has been selected and agreed to
2520	mediate must schedule the mediation conference at a mutually
2521	convenient time and place within that 90-day period; but, if the
2522	responding party does not provide a list of available dates and
2523	times, the mediator is authorized to schedule a mediation
2524	conference without taking the responding party's schedule and
2525	convenience into consideration. Within 10 days after the
2526	designation of the mediator, the mediator shall coordinate with
2527	the parties and notify the parties in writing of the date, time,
2528	and place of the mediation conference.
2529	(e) The mediation conference must be held on the scheduled
2530	date and may be rescheduled if a rescheduled date is approved by
2531	the mediator. However, in no event shall the mediation be held
2532	later than 90 days after the notice of presuit mediation was
2533	first served, unless all parties mutually agree in writing
2534	otherwise. If the presuit mediation is not completed within the
2535	required time limits, the mediator shall declare an impasse
2536	unless the mediation date is extended by mutual written
2537	agreement by all parties and approved by the mediator.
2538	(f) If the responding party fails to respond within 20
2539	days after the date of service of the statutory notice of
2540	presuit mediation, fails to agree to at least one of the
2541	mediators listed by the aggrieved party in the notice, fails to
2542	pay or prepay to the mediator one-half of the costs of the
2543	mediator, or fails to appear and participate at the scheduled
2544	mediation, the aggrieved party shall be authorized to proceed
2545	with the filing of a lawsuit without further notice.
2546	(g)1. The failure of any party to respond to the statutory
2547	notice of presuit mediation within 20 days, the failure to agree
2548	upon a mediator, the failure to provide a listing of dates and
2549	times in which the responding party is available to participate
2550	in the mediation within 90 days after the date the responding
2551	party was served with the statutory notice of presuit mediation,
2552	the failure to make payment of fees and costs within the time
2553	established by the mediator, or the failure to appear for a
2554	scheduled mediation session without the approval of the mediator
2555	shall in each instance constitute a failure or refusal to
2556	participate in the mediation process and shall operate as an
2557	impasse in the presuit mediation by such party, entitling the
2558	other party to file a lawsuit in court and to seek an award of
2559	the costs and attorney's fees associated with the mediation.
2560	2. Persons who fail or refuse to participate in the entire
2561	mediation process may not recover attorney's fees and costs in
2562	subsequent litigation relating to the same dispute between the
2563	same parties. If any presuit mediation session cannot be
2564	scheduled and conducted within 90 days after the offer to
2565	participate in mediation was filed, through no fault of either
2566	party, then an impasse shall be deemed to have occurred unless
2567	the parties mutually agree in writing to extend this deadline.
2568	In the event of such impasse, each party shall be responsible
2569	for its own costs and attorney's fees and one-half of any
2570	mediator fees and filing fees, and either party may file a
2571	lawsuit in court regarding the dispute.
2572	720.506 Opt-out of presuit mediation.-A party served with
2573	a notice of presuit mediation under s. 720.505 may opt out of
2574	presuit mediation and demand that the dispute proceed under
2575	nonbinding arbitration as follows:
2576	(1) In lieu of a response to the notice of presuit
2577	mediation as required under s. 720.505, the responding party may
2578	serve upon the aggrieved party, in the same manner as the
2579	response to a notice for presuit mediation under s. 720.505, a
2580	notice of opting out of mediation and demand that the dispute
2581	instead proceed to presuit arbitration under s. 720.507.
2582	(2) The aggrieved party shall be relieved from having to
2583	satisfy the requirements of s. 720.504 as a condition precedent
2584	to filing the demand for presuit arbitration.
2585	(3) Except as otherwise provided in this part, the choice
2586	of which presuit alternative dispute resolution procedure is
2587	used shall be at the election of the aggrieved party who first
2588	initiated such proceeding after complying with the provisions of
2589	s. 720.504.
2590	720.507 Presuit arbitration.-
2591	(1) Disputes between an association and a parcel owner or
2592	owners or between parcel owners are subject to a demand for
2593	presuit arbitration pursuant to this section before the dispute
2594	may be filed in court. A party who elects to use the presuit
2595	arbitration procedure under this part shall serve on the
2596	responding party a written notice of presuit arbitration in
2597	substantially the following form:
2598
2599	STATUTORY NOTICE OF PRESUIT ARBITRATION
2600
2601	THE ALLEGED AGGRIEVED PARTY, ____________________,
2602	HEREBY DEMANDS THAT ____________________, AS THE
2603	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
2604	ARBITRATION IN CONNECTION WITH THE FOLLOWING
2605	DISPUTE(S) WITH YOU, WHICH BY STATUTE ARE OF A TYPE
2606	THAT ARE SUBJECT TO PRESUIT ARBITRATION:
2607
2608	(LIST SPECIFIC NATURE OF THE DISPUTE OR DISPUTES TO BE
2609	ARBITRATED AND THE AUTHORITY SUPPORTING A FINDING OF A
2610	VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
2611	LIMITED TO, ALL APPLICABLE PROVISIONS OF THE GOVERNING
2612	DOCUMENTS BELIEVED TO APPLY TO THE DISPUTE BETWEEN THE
2613	PARTIES.)
2614
2615	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
2616	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
2617	ARBITRATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
2618	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
2619	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
2620	ARBITRATION WITH A NEUTRAL THIRD-PARTY ARBITRATOR IN
2621	ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
2622	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
2623	PARTICIPATE IN THIS PROCESS. IF YOU FAIL TO
2624	PARTICIPATE IN THE ARBITRATION PROCESS, A LAWSUIT MAY
2625	BE BROUGHT AGAINST YOU IN COURT WITHOUT FURTHER
2626	WARNING.
2627
2628	THE PROCESS OF ARBITRATION INVOLVES A NEUTRAL THIRD
2629	PERSON WHO CONSIDERS THE LAW AND FACTS PRESENTED BY
2630	THE PARTIES AND RENDERS A WRITTEN DECISION CALLED AN
2631	"ARBITRATION AWARD." PURSUANT TO SECTION 720.507,
2632	FLORIDA STATUTES, THE ARBITRATION AWARD SHALL BE FINAL
2633	UNLESS A LAWSUIT IS FILED IN A COURT OF COMPETENT
2634	JURISDICTION FOR THE JUDICIAL CIRCUIT IN WHICH THE
2635	PARCEL(S) GOVERNED BY THE HOMEOWNERS' ASSOCIATION
2636	IS/ARE LOCATED WITHIN 30 DAYS AFTER THE DATE OF THE
2637	ARBITRATION AWARD.
2638
2639	IF A SETTLEMENT AGREEMENT IS REACHED BEFORE THE
2640	ARBITRATION AWARD, IT SHALL BE REDUCED TO WRITING AND
2641	BECOME A BINDING AND ENFORCEABLE CONTRACT OF THE
2642	PARTIES. A RESOLUTION OF ONE OR MORE DISPUTES IN THIS
2643	FASHION AVOIDS THE NEED TO ARBITRATE THESE ISSUES OR
2644	TO LITIGATE THESE ISSUES IN COURT AND SHALL BE THE
2645	SAME AS A SETTLEMENT AGREEMENT REACHED BETWEEN THE
2646	PARTIES UNDER SECTION 720.505, FLORIDA STATUTES. THE
2647	FAILURE OF A PARTY TO PARTICIPATE IN THE ARBITRATION
2648	PROCESS MAY RESULT IN THE ARBITRATOR ISSUING AN
2649	ARBITRATION AWARD BY DEFAULT IN THE ARBITRATION. IF
2650	YOU HAVE FAILED OR REFUSED TO PARTICIPATE IN THE
2651	ENTIRE ARBITRATION PROCESS, YOU WILL NOT BE ENTITLED
2652	TO RECOVER ATTORNEY'S FEES IF YOU PREVAIL IN A
2653	SUBSEQUENT COURT PROCEEDING INVOLVING THE SAME
2654	DISPUTE.
2655
2656	THE AGGRIEVED PARTY HAS SELECTED AT LEAST FIVE
2657	ARBITRATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
2658	NEUTRAL AND QUALIFIED TO ARBITRATE THE DISPUTE. YOU
2659	HAVE THE RIGHT TO SELECT ANY ONE OF THE ARBITRATORS.
2660	THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR
2661	MORE OF THE LISTED ARBITRATORS DOES NOT MEAN THAT THE
2662	ARBITRATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
2663	ARBITRATOR. ANY ARBITRATOR WHO CANNOT ACT IN THIS
2664	CAPACITY IS REQUIRED ETHICALLY TO DECLINE TO ACCEPT
2665	ENGAGEMENT. THE NAMES OF THE FIVE ARBITRATORS THAT THE
2666	AGGRIEVED PARTY HAS CHOSEN FROM WHICH YOU MAY SELECT
2667	ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE NUMBERS,
2668	AND HOURLY RATES, ARE AS FOLLOWS:
2669
2670	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
2671	HOURLY RATES OF AT LEAST FIVE ARBITRATORS.)
2672
2673	YOU MAY CONTACT THE OFFICES OF THESE ARBITRATORS TO
2674	CONFIRM THAT THE LISTED ARBITRATORS WILL BE NEUTRAL
2675	AND WILL NOT SHOW ANY FAVORITISM TOWARD EITHER PARTY.
2676
2677	UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART IV OF
2678	CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE
2679	PARTIES SHARE THE COSTS OF PRESUIT ARBITRATION
2680	EQUALLY, INCLUDING THE FEE CHARGED BY THE ARBITRATOR.
2681	THE PARTIES SHALL BE RESPONSIBLE FOR THEIR OWN
2682	ATTORNEY'S FEES IF THEY CHOOSE TO EMPLOY AN ATTORNEY
2683	IN CONNECTION WITH THE ARBITRATION. HOWEVER, USE OF AN
2684	ATTORNEY TO REPRESENT YOU FOR THE ARBITRATION IS NOT
2685	REQUIRED. THE ARBITRATOR SELECTED MAY REQUIRE THE
2686	ADVANCE PAYMENT OF SOME OR ALL OF THE ANTICIPATED
2687	FEES. THE AGGRIEVED PARTY HEREBY AGREES TO PAY OR
2688	PREPAY ONE-HALF OF THE SELECTED ARBITRATOR'S ESTIMATED
2689	FEES AND TO FORWARD THIS AMOUNT OR SUCH OTHER
2690	REASONABLE ADVANCE DEPOSITS AS THE ARBITRATOR WHO IS
2691	SELECTED REQUIRES FOR THIS PURPOSE. ANY FUNDS
2692	DEPOSITED WILL BE RETURNED TO YOU IF THESE FUNDS ARE
2693	IN EXCESS OF YOUR SHARE OF THE FEES INCURRED.
2694
2695	PLEASE SIGN THE AGREEMENT TO ARBITRATE BELOW AND
2696	CLEARLY INDICATE THE NAME OF THE ARBITRATOR WHO IS
2697	ACCEPTABLE TO YOU FROM THE NAMES LISTED BY THE
2698	AGGRIEVED PARTY.
2699
2700	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
2701	WITHIN 20 DAYS AFTER THE DATE THAT THE NOTICE OF
2702	PRESUIT ARBITRATION WAS PERSONALLY SERVED ON YOU OR
2703	THE POSTMARKED DATE THAT THIS NOTICE OF PRESUIT
2704	ARBITRATION WAS SENT TO YOU BY CERTIFIED MAIL. YOU
2705	MUST ALSO PROVIDE A LIST OF AT LEAST THREE DATES AND
2706	TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE
2707	ARBITRATION THAT ARE WITHIN 90 DAYS AFTER THE DATE YOU
2708	WERE PERSONALLY SERVED OR WITHIN 90 DAYS AFTER THE
2709	POSTMARKED DATE OF THE CERTIFIED MAILING OF THIS
2710	STATUTORY NOTICE OF PRESUIT ARBITRATION. A COPY OF
2711	THIS NOTICE AND YOUR RESPONSE WILL BE PROVIDED BY THE
2712	AGGRIEVED PARTY TO THE ARBITRATOR SELECTED, AND THE
2713	ARBITRATOR WILL SCHEDULE A MUTUALLY CONVENIENT TIME
2714	AND PLACE FOR THE ARBITRATION CONFERENCE TO BE HELD.
2715	IF YOU DO NOT PROVIDE A LIST OF AVAILABLE DATES AND
2716	TIMES, THE ARBITRATOR IS AUTHORIZED TO SCHEDULE AN
2717	ARBITRATION CONFERENCE WITHOUT TAKING YOUR SCHEDULE
2718	AND CONVENIENCE INTO CONSIDERATION. THE ARBITRATION
2719	CONFERENCE MUST BE HELD ON THE SCHEDULED DATE, OR ANY
2720	RESCHEDULED DATE APPROVED BY THE ARBITRATOR. IN NO
2721	EVENT SHALL THE ARBITRATION CONFERENCE BE LATER THAN
2722	90 DAYS AFTER NOTICE OF THE PRESUIT ARBITRATION WAS
2723	FIRST SERVED, UNLESS ALL PARTIES MUTUALLY AGREE IN
2724	WRITING OTHERWISE. IF THE ARBITRATION IS NOT COMPLETED
2725	WITHIN THE REQUIRED TIME LIMITS, THE ARBITRATOR SHALL
2726	ISSUE AN ARBITRATION AWARD, UNLESS THE HEARING IS
2727	EXTENDED BY MUTUAL WRITTEN AGREEMENT OF THE PARTIES
2728	AND APPROVED BY THE ARBITRATOR. IN THE EVENT THAT YOU
2729	FAIL TO RESPOND WITHIN 20 DAYS AFTER THE DATE YOU WERE
2730	SERVED WITH A COPY OF THIS NOTICE, FAIL TO PROVIDE THE
2731	ARBITRATOR WITH DATES AND TIMES IN WHICH YOU ARE
2732	AVAILABLE FOR THE ARBITRATION CONFERENCE, FAIL TO
2733	AGREE TO ONE OF THE ARBITRATORS THAT THE AGGRIEVED
2734	PARTY HAS NAMED, FAIL TO PAY OR PREPAY TO THE
2735	ARBITRATOR ONE-HALF OF THE COSTS INVOLVED AS REQUIRED,
2736	OR FAIL TO APPEAR AND PARTICIPATE AT THE SCHEDULED
2737	ARBITRATION CONFERENCE, THE AGGRIEVED PARTY MAY
2738	REQUEST THE ARBITRATOR TO ISSUE AN ARBITRATION AWARD.
2739	IN ANY SUBSEQUENT COURT ACTION, THE AGGRIEVED PARTY
2740	SHALL BE ENTITLED TO RECOVER AN AWARD OF REASONABLE
2741	ATTORNEY'S FEES AND COSTS, INCLUDING ANY FEES PAID TO
2742	THE ARBITRATOR, INCURRED IN OBTAINING AN ARBITRATION
2743	AWARD PURSUANT TO SECTION 720.507, FLORIDA STATUTES.
2744
2745	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
2746	LAW, YOUR RESPONSE MUST BE POSTMARKED AND MAILED BY
2747	CERTIFIED, FIRST-CLASS MAIL, RETURN RECEIPT REQUESTED,
2748	TO THE ADDRESS SHOWN ON THIS NOTICE OF PRESUIT
2749	ARBITRATION.
2750
2751	_________________________
2752	SIGNATURE OF AGGRIEVED PARTY
2753
2754	______________________
2755	PRINTED NAME OF AGGRIEVED PARTY
2756
2757	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
2758	ACCEPTANCE OF THE AGREEMENT TO ARBITRATE.
2759
2760	AGREEMENT TO ARBITRATE
2761
2762	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
2763	PRESUIT ARBITRATION AND AGREES TO ATTEND AN
2764	ARBITRATION CONDUCTED BY THE FOLLOWING ARBITRATOR
2765	LISTED BELOW AS SOMEONE WHO WOULD BE ACCEPTABLE TO
2766	ARBITRATE THIS DISPUTE:
2767
2768	(IN YOUR RESPONSE, SELECT THE NAME OF ONE ARBITRATOR
2769	THAT IS ACCEPTABLE TO YOU FROM THOSE ARBITRATORS
2770	LISTED BY THE AGGRIEVED PARTY.)
2771
2772	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE IS
2773	AVAILABLE AND ABLE TO ATTEND AND PARTICIPATE IN THE
2774	PRESUIT ARBITRATION CONFERENCE AT THE FOLLOWING DATES
2775	AND TIMES:
2776
2777	(LIST ALL AVAILABLE DATES AND TIMES, OF WHICH THERE
2778	MUST BE AT LEAST THREE, WITHIN 90 DAYS AFTER THE DATE
2779	ON WHICH YOU WERE SERVED, EITHER BY PROCESS SERVER OR
2780	BY CERTIFIED MAIL, WITH THE NOTICE OF PRESUIT
2781	ARBITRATION.)
2782
2783	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
2784	ARBITRATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
2785	AS THE ARBITRATOR MAY REQUIRE FOR THIS PURPOSE.
2786
2787	______________________________
2788	SIGNATURE OF RESPONDING PARTY #1
2789	______________________________
2790	TELEPHONE CONTACT INFORMATION
2791
2792	______________________________
2793	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
2794	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
2795	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
2796	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
2797	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
2798
2799	(2)(a) Service of the notice of presuit arbitration shall
2800	be effected either by personal service, as provided in chapter
2801	48, or by certified mail, return receipt requested, in a letter
2802	in substantial conformity with the form provided in subsection
2803	(1), with an additional copy being sent by regular first-class
2804	mail, to the address of the responding party as it last appears
2805	on the books and records of the association or, if not
2806	available, the last address as it appears on the official
2807	records of the county property appraiser for the county in which
2808	the property is situated that is subject to the association
2809	documents. The responding party has 20 days after the postmarked
2810	date of the certified mailing of the statutory notice of presuit
2811	arbitration or the date the responding party is personally
2812	served with the statutory notice of presuit arbitration to serve
2813	a written response to the aggrieved party. The response shall be
2814	served by certified mail, return receipt requested, with an
2815	additional copy being sent by regular first-class mail, to the
2816	address shown on the statutory notice of presuit arbitration.
2817	The postmarked date on the envelope of the response shall
2818	constitute the date the response was served.
2819	(b) The parties shall share the costs of presuit
2820	arbitration equally, including the fee charged by the
2821	arbitrator, if any, unless the parties agree otherwise, and the
2822	arbitrator may require advance payment of his or her reasonable
2823	fees and costs. Each party shall be responsible for that party's
2824	own attorney's fees if a party chooses to be represented by an
2825	attorney for the arbitration proceedings.
2826	(c)1. The party responding to the aggrieved party must
2827	sign the agreement to arbitrate included in the notice of
2828	presuit arbitration and clearly indicate the name of the
2829	arbitrator who is acceptable of those arbitrators listed by the
2830	aggrieved party. The responding party must provide a list of at
2831	least three dates and times in which the responding party is
2832	available to participate in the arbitration conference within 90
2833	days after the date the responding party was served with the
2834	statutory notice of presuit arbitration.
2835	2. The arbitrator must schedule the arbitration conference
2836	at a mutually convenient time and place, but if the responding
2837	party does not provide a list of available dates and times, the
2838	arbitrator is authorized to schedule an arbitration conference
2839	without taking the responding party's schedule and convenience
2840	into consideration. Within 10 days after the designation of the
2841	arbitrator, the arbitrator shall notify the parties in writing
2842	of the date, time, and place of the arbitration conference.
2843	3. The arbitration conference must be held on the
2844	scheduled date and may be rescheduled if approved by the
2845	arbitrator. However, in no event shall the arbitration hearing
2846	be later than 90 days after the notice of presuit arbitration
2847	was first served, unless all parties mutually agree in writing
2848	otherwise. If the arbitration hearing is not completed within
2849	the required time limits, the arbitrator may issue an
2850	arbitration award unless the time for the hearing is extended as
2851	provided herein.
2852	4. If the responding party fails to respond within 20 days
2853	after the date of statutory notice of presuit arbitration, fails
2854	to agree to at least one of the arbitrators that have been
2855	listed by the aggrieved party in the presuit notice of
2856	arbitration, fails to pay or prepay to the arbitrator one-half
2857	of the costs involved, or fails to appear and participate at the
2858	scheduled arbitration, the aggrieved party is authorized to
2859	proceed with a request that the arbitrator issue an arbitration
2860	award.
2861	(d)1. The failure of any party to respond to the statutory
2862	notice of presuit arbitration within 20 days, the failure to
2863	select one of the arbitrators listed by the aggrieved party, the
2864	failure to provide a listing of dates and times in which the
2865	responding party is available to participate in the arbitration
2866	conference within 90 days after the date of the responding party
2867	being served with the statutory notice of presuit arbitration,
2868	the failure to make payment of fees and costs as required within
2869	the time established by the arbitrator, or the failure to appear
2870	for an arbitration conference without the approval of the
2871	arbitrator shall entitle the other party to request the
2872	arbitrator to enter an arbitration award, including an award of
2873	the reasonable costs and attorney's fees associated with the
2874	arbitration.
2875	2. Persons who fail or refuse to participate in the entire
2876	arbitration process may not recover attorney's fees and costs in
2877	any subsequent litigation proceeding relating to the same
2878	dispute involving the same parties.
2879	(3)(a) In an arbitration proceeding, the arbitrator may
2880	not consider any unsuccessful mediation of the dispute.
2881	(b) An arbitrator in a proceeding initiated pursuant to
2882	this part may shorten the time for discovery or otherwise limit
2883	discovery in a manner consistent with the policy goals of this
2884	part to reduce the time and expense of litigating homeowners'
2885	association disputes initiated pursuant to this chapter and to
2886	promote an expeditious alternative dispute resolution procedure
2887	for parties to such actions.
2888	(4) At the request of any party to the arbitration, the
2889	arbitrator may issue subpoenas for the attendance of witnesses
2890	and the production of books, records, documents, and other
2891	evidence, and any party on whose behalf a subpoena is issued may
2892	apply to the court for orders compelling such attendance and
2893	production. Subpoenas shall be served and are enforceable in the
2894	manner provided by the Florida Rules of Civil Procedure.
2895	Discovery may, at the discretion of the arbitrator, be permitted
2896	in the manner provided by the Florida Rules of Civil Procedure.
2897	(5) The final arbitration award shall be sent to the
2898	parties in writing no later than 30 days after the date of the
2899	arbitration hearing, absent extraordinary circumstances
2900	necessitating a later filing the reasons for which shall be
2901	stated in the final award if filed more than 30 days after the
2902	date of the final session of the arbitration conference. An
2903	agreed arbitration award is final in those disputes in which the
2904	parties have mutually agreed to be bound. An arbitration award
2905	decided by the arbitrator is final unless a lawsuit seeking a
2906	trial de novo is filed in a court of competent jurisdiction
2907	within 30 days after the date of the arbitration award. The
2908	right to file for a trial de novo entitles the parties to file a
2909	complaint in the appropriate trial court for a judicial
2910	resolution of the dispute. The prevailing party in an
2911	arbitration proceeding shall be awarded the costs of the
2912	arbitration and reasonable attorney's fees in an amount
2913	determined by the arbitrator.
2914	(6) The party filing a motion for a trial de novo shall be
2915	assessed the other party's arbitration costs, court costs, and
2916	other reasonable costs, including attorney's fees, investigation
2917	expenses, and expenses for expert or other testimony or evidence
2918	incurred after the arbitration hearing, if the judgment upon the
2919	trial de novo is not more favorable than the final arbitration
2920	award.
2921	720.508 Rules of procedure.-
2922	(1) Presuit mediation and presuit arbitration proceedings
2923	under this part must be conducted in accordance with the
2924	applicable Florida Rules of Civil Procedure and rules governing
2925	mediations and arbitrations under chapter 44, except that this
2926	part shall be controlling to the extent of any conflict with
2927	other applicable rules or statutes. The arbitrator may shorten
2928	any applicable time period and otherwise limit the scope of
2929	discovery on request of the parties or within the discretion of
2930	the arbitrator exercised consistent with the purpose and
2931	objective of reducing the expense and expeditiously concluding
2932	proceedings under this part.
2933	(2) Presuit mediation proceedings under s. 720.505 are
2934	privileged and confidential to the same extent as court-ordered
2935	mediation under chapter 44. An arbitrator or judge may not
2936	consider any information or evidence arising from the presuit
2937	mediation proceeding except in a proceeding to impose sanctions
2938	for failure to attend a presuit mediation session or to enforce
2939	a mediated settlement agreement.
2940	(3) Persons who are not parties to the dispute may not
2941	attend the presuit mediation conference without consent of all
2942	parties, with the exception of counsel for the parties and a
2943	corporate representative designated by the association. Presuit
2944	mediations under this part are not a board meeting for purposes
2945	of notice and participation set forth in this chapter.
2946	(4) Attendance at a mediation conference by the board of
2947	directors shall not require notice or participation by nonboard
2948	members as otherwise required by this chapter for meetings of
2949	the board.
2950	(5) Settlement agreements resulting from a mediation or
2951	arbitration proceeding do not have precedential value in
2952	proceedings involving parties other than those participating in
2953	the mediation or arbitration.
2954	(6) Arbitration awards by an arbitrator shall have
2955	precedential value in other proceedings involving the same
2956	association or with respect to the same parcel owner.
2957	720.509 Mediators and arbitrators; qualifications.-A
2958	person is authorized to conduct mediation or arbitration under
2959	this part if he or she has been certified as a circuit court
2960	civil mediator under the requirements adopted pursuant to s.
2961	44.106, is a member in good standing with The Florida Bar, and
2962	otherwise meets all other requirements imposed by chapter 44.
2963	720.510 Enforcement of mediation agreement or arbitration
2964	award.-
2965	(1) A mediation settlement may be enforced through the
2966	county or circuit court, as applicable, and any costs and
2967	attorney's fees incurred in the enforcement of a settlement
2968	agreement reached at mediation shall be awarded to the
2969	prevailing party in any enforcement action.
2970	(2) Any party to an arbitration proceeding may enforce an
2971	arbitration award by filing a petition in a court of competent
2972	jurisdiction in which the homeowners' association is located.
2973	The prevailing party in such proceeding shall be awarded
2974	reasonable attorney's fees and costs incurred in such
2975	proceeding.
2976	(3) If a complaint is filed seeking a trial de novo, the
2977	arbitration award shall be stayed and a petition to enforce the
2978	award may not be granted. Such award, however, shall be
2979	admissible in the court proceeding seeking a trial de novo.
2980	Section 25. All new residential construction in any deed-
2981	restricted community that requires mandatory membership in the
2982	association under chapter 718, chapter 719, or chapter 720,
2983	Florida Statutes, must comply with the provisions of Pub. L. No.
2984	110-140, Title XIV, ss. 1402 to 1406, 15 U.S.C. ss. 8001-8005.
2985	Section 26. This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.