Bill Text: FL H1035 | 2011 | Regular Session | Introduced


Bill Title: Condominium/Cooperative/Homeowners' Associations

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H1035 Detail]

Download: Florida-2011-H1035-Introduced.html
HB 1035

1
A bill to be entitled
2An act relating to condominium, cooperative, and
3homeowners' associations; amending s. 718.111, F.S.;
4revising provisions relating to the official records of
5condominium associations; providing for disclosure of
6employment agreements or compensation paid to association
7employees; amending s. 718.112, F.S.; revising provisions
8relating to board of administration and unit owner
9meetings; providing that board of administration meetings
10discussing personnel matters are not open to unit members;
11requiring that certain educational curriculum be completed
12within a specified time before the election or appointment
13of a board director; amending s. 718.114, F.S.; requiring
14the vote or written consent of a majority of the voting
15interests before a condominium association may enter into
16certain agreements to acquire leaseholds, memberships, or
17other possessory or use interests; amending s. 718.116,
18F.S.; revising provisions relating to condominium
19assessments; authorizing the association to charge for
20collection services for delinquent accounts; authorizing a
21claim of lien to secure reasonable expenses for collection
22services for a delinquent account; requiring any rent
23payments received by an association from a tenant to be
24applied to the most delinquent monetary obligation of a
25unit owner; amending s. 718.117, F.S.; providing
26procedures and requirements for partial termination of a
27condominium property; requiring that a lien against a
28condominium unit being terminated be transferred to the
29proceeds of sale for that property; amending s. 718.303,
30F.S.; revising provisions relating to imposing remedies
31against a delinquent unit owner; requiring that the
32suspension of certain rights of use or voting rights be
33approved at a noticed board meeting; amending s. 718.703.
34F.S.; redefining the term "bulk assignee" for purposes of
35the Distressed Condominium Relief Act; amending s.
36718.704, F.S.; revising provisions relating to the
37assignment of developer rights by a bulk assignee;
38amending s. 718.705, F.S.; revising provisions relating to
39the transfer of control of a condominium board of
40administration to unit owners; amending s. 718.706, F.S.;
41revising provisions relating to the offering of units by a
42bulk assignee or bulk buyer; amending s. 718.707, F.S.;
43revising the time limitation for classification as a bulk
44assignee or bulk buyer; amending s. 719.108, F.S.;
45requiring any rent payments received by a cooperative
46association from a tenant to be applied to the most
47delinquent monetary obligation of a unit owner; amending
48s. 719.303, F.S.; revising provisions relating to imposing
49remedies against a delinquent unit owner in a cooperative;
50requiring that the suspension of certain rights of use or
51voting rights be approved at a noticed board meeting;
52amending s. 720.303, F.S.; revising provisions relating to
53records that are not accessible to members of a
54homeowners' association; providing for disclosure of
55employment agreements and compensation paid to association
56employees; amending s. 720.305, F.S.; revising provisions
57relating to imposing remedies against a delinquent member
58of a homeowners' association; requiring that the
59suspension of certain rights of use or voting rights be
60approved at a noticed board meeting; amending s. 720.3085,
61F.S.; authorizing a claim of lien to secure expenses for
62collection services for a delinquent account; requiring
63any rent payments received by an association from a tenant
64to be applied to the most delinquent monetary obligation
65of a parcel owner; amending s. 720.309, F.S.; providing
66for the allocation of communication services by a
67homeowners' association; providing for the cancellation of
68communication contracts; providing that hearing-impaired
69or legally blind owners and owners receiving certain
70supplemental security income or food stamps may
71discontinue the service without incurring costs; providing
72that residents may not be denied access to available
73franchised, licensed, or certificated cable or video
74service providers; providing an effective date.
75
76Be It Enacted by the Legislature of the State of Florida:
77
78     Section 1.  Paragraphs (a) and (c) of subsection (12) of
79section 718.111, Florida Statutes, are amended to read:
80     718.111  The association.-
81     (12)  OFFICIAL RECORDS.-
82     (a)  From the inception of the association, the association
83shall maintain each of the following items, if applicable, which
84constitutes shall constitute the official records of the
85association:
86     1.  A copy of the plans, permits, warranties, and other
87items provided by the developer pursuant to s. 718.301(4).
88     2.  A photocopy of the recorded declaration of condominium
89of each condominium operated by the association and of each
90amendment to each declaration.
91     3.  A photocopy of the recorded bylaws of the association
92and of each amendment to the bylaws.
93     4.  A certified copy of the articles of incorporation of
94the association, or other documents creating the association,
95and of each amendment thereto.
96     5.  A copy of the current rules of the association.
97     6.  A book or books that which contain the minutes of all
98meetings of the association, of the board of administration, and
99the of unit owners, which minutes must be retained for at least
1007 years.
101     7.  A current roster of all unit owners and their mailing
102addresses, unit identifications, voting certifications, and, if
103known, telephone numbers. The association shall also maintain
104the e-mail the electronic mailing addresses and facsimile the
105numbers designated by unit owners for receiving notice sent by
106electronic transmission of those unit owners consenting to
107receive notice by electronic transmission. The e-mail electronic
108mailing addresses and facsimile telephone numbers may not be
109accessible to unit owners must be removed from association
110records if consent to receive notice by electronic transmission
111is not provided in accordance with subparagraph (c)5 revoked.
112However, the association is not liable for an erroneous
113disclosure of an e-mail the electronic mail address or facsimile
114the number for receiving electronic transmission of notices.
115     8.  All current insurance policies of the association and
116condominiums operated by the association.
117     9.  A current copy of any management agreement, lease, or
118other contract to which the association is a party or under
119which the association or the unit owners have an obligation or
120responsibility.
121     10.  Bills of sale or transfer for all property owned by
122the association.
123     11.  Accounting records for the association and separate
124accounting records for each condominium that which the
125association operates. All accounting records must shall be
126maintained for at least 7 years. Any person who knowingly or
127intentionally defaces or destroys such accounting records
128required to be created and maintained by this chapter during the
129period for which such records are required to be maintained, or
130who knowingly or intentionally fails to create or maintain such
131records, with the intent of causing harm to the association or
132one or more of its members, is personally subject to a civil
133penalty pursuant to s. 718.501(1)(d). The accounting records
134must include, but are not limited to:
135     a.  Accurate, itemized, and detailed records of all
136receipts and expenditures.
137     b.  A current account and a monthly, bimonthly, or
138quarterly statement of the account for each unit designating the
139name of the unit owner, the due date and amount of each
140assessment, the amount paid on upon the account, and the balance
141due.
142     c.  All audits, reviews, accounting statements, and
143financial reports of the association or condominium.
144     d.  All contracts for work to be performed. Bids for work
145to be performed are also considered official records and must be
146maintained by the association.
147     12.  Ballots, sign-in sheets, voting proxies, and all other
148papers relating to voting by unit owners, which must be
149maintained for 1 year from the date of the election, vote, or
150meeting to which the document relates, notwithstanding paragraph
151(b).
152     13.  All rental records if the association is acting as
153agent for the rental of condominium units.
154     14.  A copy of the current question and answer sheet as
155described in s. 718.504.
156     15.  All other records of the association not specifically
157included in the foregoing which are related to the operation of
158the association.
159     16.  A copy of the inspection report as described provided
160in s. 718.301(4)(p).
161     (c)  The official records of the association are open to
162inspection by any association member or the authorized
163representative of such member at all reasonable times. The right
164to inspect the records includes the right to make or obtain
165copies, at the reasonable expense, if any, of the member. The
166association may adopt reasonable rules regarding the frequency,
167time, location, notice, and manner of record inspections and
168copying. The failure of an association to provide the records
169within 10 working days after receipt of a written request
170creates a rebuttable presumption that the association willfully
171failed to comply with this paragraph. A unit owner who is denied
172access to official records is entitled to the actual damages or
173minimum damages for the association's willful failure to comply.
174Minimum damages are shall be $50 per calendar day for up to 10
175days, beginning the calculation to begin on the 11th working day
176after receipt of the written request. The failure to permit
177inspection of the association records as provided herein
178entitles any person prevailing in an enforcement action to
179recover reasonable attorney's fees from the person in control of
180the records who, directly or indirectly, knowingly denied access
181to the records. Any person who knowingly or intentionally
182defaces or destroys accounting records that are required by this
183chapter to be maintained during the period for which such
184records are required to be maintained, or who knowingly or
185intentionally fails to create or maintain accounting records
186that are required to be created or maintained, with the intent
187of causing harm to the association or one or more of its
188members, is personally subject to a civil penalty pursuant to s.
189718.501(1)(d). The association shall maintain an adequate number
190of copies of the declaration, articles of incorporation, bylaws,
191and rules, and all amendments to each of the foregoing, as well
192as the question and answer sheet as described provided for in s.
193718.504 and year-end financial information required under in
194this section, on the condominium property to ensure their
195availability to unit owners and prospective purchasers, and may
196charge its actual costs for preparing and furnishing these
197documents to those requesting the documents. Notwithstanding the
198provisions of this paragraph, the following records are not
199accessible to unit owners:
200     1.  Any record protected by the lawyer-client privilege as
201described in s. 90.502; and any record protected by the work-
202product privilege, including a any record prepared by an
203association attorney, or prepared at the attorney's express
204direction,; which reflects a mental impression, conclusion,
205litigation strategy, or legal theory of the attorney or the
206association, and which was prepared exclusively for civil or
207criminal litigation or for adversarial administrative
208proceedings, or which was prepared in anticipation of such
209imminent civil or criminal litigation or imminent adversarial
210administrative proceedings until the conclusion of the
211litigation or adversarial administrative proceedings.
212     2.  Information obtained by an association in connection
213with the approval of the lease, sale, or other transfer of a
214unit.
215     3.  Personnel records of association employees, including,
216but not limited to, disciplinary, payroll, health, and insurance
217records, but not including written employment agreements with an
218association employee or budgetary or financial records that
219indicate the compensation paid to an association employee.
220     4.  Medical records of unit owners.
221     5.  Social security numbers, driver's license numbers,
222credit card numbers, e-mail addresses, telephone numbers,
223facsimile numbers, emergency contact information, any addresses
224of a unit owner other than as provided to fulfill the
225association's notice requirements, and other personal
226identifying information of any person, excluding the person's
227name, unit designation, mailing address, and property address,
228and any address, e-mail address, or facsimile number provided to
229the association to fulfill the association's notice
230requirements. However, an owner may consent to the disclosure of
231protected information described in this subparagraph. The
232association is not liable for the disclosure of information that
233is protected under this subparagraph if the information is
234included in other official records of the association which are
235not protected.
236     6.  Any Electronic security measures measure that are is
237used by the association to safeguard data, including passwords.
238     7.  The software and operating system used by the
239association which allows the manipulation of data, even if the
240owner owns a copy of the same software used by the association.
241The data is part of the official records of the association.
242     Section 2.  Paragraphs (b), (c), and (d) of subsection (2)
243of section 718.112, Florida Statutes, are amended to read:
244     718.112  Bylaws.-
245     (2)  REQUIRED PROVISIONS.-The bylaws shall provide for the
246following and, if they do not do so, shall be deemed to include
247the following:
248     (b)  Quorum; voting requirements; proxies.-
249     1.  Unless a lower number is provided in the bylaws, the
250percentage of voting interests required to constitute a quorum
251at a meeting of the members is shall be a majority of the voting
252interests. Unless otherwise provided in this chapter or in the
253declaration, articles of incorporation, or bylaws, and except as
254provided in subparagraph (d)4. (d)3., decisions shall be made by
255owners of a majority of the voting interests represented at a
256meeting at which a quorum is present.
257     2.  Except as specifically otherwise provided herein, after
258January 1, 1992, unit owners may not vote by general proxy, but
259may vote by limited proxies substantially conforming to a
260limited proxy form adopted by the division. A No voting interest
261or consent right allocated to a unit owned by the association
262may not shall be exercised or considered for any purpose,
263whether for a quorum, an election, or otherwise. Limited proxies
264and general proxies may be used to establish a quorum. Limited
265proxies shall be used for votes taken to waive or reduce
266reserves in accordance with subparagraph (f)2.; for votes taken
267to waive the financial reporting requirements of s. 718.111(13);
268for votes taken to amend the declaration pursuant to s. 718.110;
269for votes taken to amend the articles of incorporation or bylaws
270pursuant to this section; and for any other matter for which
271this chapter requires or permits a vote of the unit owners.
272Except as provided in paragraph (d), a after January 1, 1992, no
273proxy, limited or general, may not shall be used in the election
274of board members. General proxies may be used for other matters
275for which limited proxies are not required, and may also be used
276in voting for nonsubstantive changes to items for which a
277limited proxy is required and given. Notwithstanding the
278provisions of this subparagraph, unit owners may vote in person
279at unit owner meetings. This subparagraph does not Nothing
280contained herein shall limit the use of general proxies or
281require the use of limited proxies for any agenda item or
282election at any meeting of a timeshare condominium association.
283     3.  Any proxy given is shall be effective only for the
284specific meeting for which originally given and any lawfully
285adjourned meetings thereof. A In no event shall any proxy is not
286be valid for a period longer than 90 days after the date of the
287first meeting for which it was given. Every proxy is revocable
288at any time at the pleasure of the unit owner executing it.
289     4.  A member of the board of administration or a committee
290may submit in writing his or her agreement or disagreement with
291any action taken at a meeting that the member did not attend.
292This agreement or disagreement may not be used as a vote for or
293against the action taken or to create and may not be used for
294the purposes of creating a quorum.
295     5.  If When any of the board or committee members meet by
296telephone conference, those board or committee members attending
297by telephone conference may be counted toward obtaining a quorum
298and may vote by telephone. A telephone speaker must be used so
299that the conversation of those board or committee members
300attending by telephone may be heard by the board or committee
301members attending in person as well as by any unit owners
302present at a meeting.
303     (c)  Board of administration meetings.-Meetings of the
304board of administration at which a quorum of the members is
305present are shall be open to all unit owners. A Any unit owner
306may tape record or videotape the meetings of the board of
307administration. The right to attend such meetings includes the
308right to speak at such meetings with reference to all designated
309agenda items. The division shall adopt reasonable rules
310governing the tape recording and videotaping of the meeting. The
311association may adopt written reasonable rules governing the
312frequency, duration, and manner of unit owner statements.
313     1.  Adequate notice of all board meetings, which must
314notice shall specifically identify all incorporate an
315identification of agenda items, must shall be posted
316conspicuously on the condominium property at least 48 continuous
317hours before preceding the meeting except in an emergency. If 20
318percent of the voting interests petition the board to address an
319item of business, the board shall at its next regular board
320meeting or at a special meeting of the board, but not later than
32160 days after the receipt of the petition, shall place the item
322on the agenda. Any item not included on the notice may be taken
323up on an emergency basis by at least a majority plus one of the
324board members of the board. Such emergency action must shall be
325noticed and ratified at the next regular board meeting of the
326board. However, written notice of any meeting at which
327nonemergency special assessments, or at which amendment to rules
328regarding unit use, will be considered must shall be mailed,
329delivered, or electronically transmitted to the unit owners and
330posted conspicuously on the condominium property at least not
331less than 14 days before prior to the meeting. Evidence of
332compliance with this 14-day notice requirement must shall be
333made by an affidavit executed by the person providing the notice
334and filed with among the official records of the association.
335Upon notice to the unit owners, the board shall, by duly adopted
336rule, designate a specific location on the condominium property
337or association property where upon which all notices of board
338meetings are to shall be posted. If there is no condominium
339property or association property where upon which notices can be
340posted, notices of board meetings shall be mailed, delivered, or
341electronically transmitted at least 14 days before the meeting
342to the owner of each unit. In lieu of or in addition to the
343physical posting of the notice of any meeting of the board of
344administration on the condominium property, the association may,
345by reasonable rule, adopt a procedure for conspicuously posting
346and repeatedly broadcasting the notice and the agenda on a
347closed-circuit cable television system serving the condominium
348association. However, if broadcast notice is used in lieu of a
349notice posted physically posted on the condominium property, the
350notice and agenda must be broadcast at least four times every
351broadcast hour of each day that a posted notice is otherwise
352required under this section. If When broadcast notice is
353provided, the notice and agenda must be broadcast in a manner
354and for a sufficient continuous length of time so as to allow an
355average reader to observe the notice and read and comprehend the
356entire content of the notice and the agenda. Notice of any
357meeting in which regular or special assessments against unit
358owners are to be considered for any reason must shall
359specifically state that assessments will be considered and
360provide the nature, estimated cost, and description of the
361purposes for such assessments.
362     2.  Meetings of a committee to take final action on behalf
363of the board or make recommendations to the board regarding the
364association budget are subject to the provisions of this
365paragraph. Meetings of a committee that does not take final
366action on behalf of the board or make recommendations to the
367board regarding the association budget are subject to the
368provisions of this section, unless those meetings are exempted
369from this section by the bylaws of the association.
370     3.  Notwithstanding any other law, the requirement that
371board meetings and committee meetings be open to the unit owners
372does not apply is inapplicable to:
373     a.  Meetings between the board or a committee and the
374association's attorney, with respect to proposed or pending
375litigation, if when the meeting is held for the purpose of
376seeking or rendering legal advice; or
377     b.  Board meetings held for the purpose of discussing
378personnel matters.
379     (d)  Unit owner meetings.-
380     1.  An annual meeting of the unit owners shall be held at
381the location provided in the association bylaws and, if the
382bylaws are silent as to the location, the meeting shall be held
383within 45 miles of the condominium property. However, such
384distance requirement does not apply to an association governing
385a timeshare condominium.
386     2.  Unless the bylaws provide otherwise, a vacancy on the
387board caused by the expiration of a director's term shall be
388filled by electing a new board member, and the election must be
389by secret ballot. An election is not required However, if the
390number of vacancies equals or exceeds the number of candidates,
391an election is not required. Except in a timeshare condominium,
392the terms of all board members of the board expire at the annual
393meeting and such board members may stand for reelection unless
394otherwise permitted by the bylaws. If the bylaws permit
395staggered terms of no more than 2 years and upon approval of a
396majority of the total voting interests, the association board
397members may serve 2-year staggered terms. If the number of board
398members whose terms have expired exceeds the number of eligible
399members showing interest in or demonstrating an intention to run
400for the vacant positions, each board member whose term has
401expired is eligible for reappointment to the board of
402administration and need not stand for reelection. In a
403condominium association of more than 10 units or in a
404condominium association that does not include timeshare units or
405timeshare interests, coowners of a unit may not serve as members
406of the board of directors at the same time unless they own more
407than one unit or unless there are not enough eligible candidates
408to fill the vacancies on the board at the time of the vacancy.
409Any unit owner desiring to be a candidate for board membership
410must comply with sub-subparagraph 4.a. 3.a. A person who has
411been suspended or removed by the division under this chapter, or
412who is delinquent in the payment of any fee, fine, or special or
413regular assessment as provided in paragraph (n), is not eligible
414for board membership. A person who has been convicted of any
415felony in this state or in a United States District or
416Territorial Court, or who has been convicted of any offense in
417another jurisdiction which that would be considered a felony if
418committed in this state, is not eligible for board membership
419unless such felon's civil rights have been restored for at least
4205 years as of the date on which such person seeks election to
421the board. The validity of an action by the board is not
422affected if it is later determined that a board member of the
423board is ineligible for board membership due to having been
424convicted of a felony.
425     3.2.  The bylaws must provide the method of calling
426meetings of unit owners, including annual meetings. Written
427notice, which must include an agenda, must shall be mailed, hand
428delivered, or electronically transmitted to each unit owner at
429least 14 days before the annual meeting, and must be posted in a
430conspicuous place on the condominium property at least 14
431continuous days before preceding the annual meeting. Upon notice
432to the unit owners, the board shall, by duly adopted rule,
433designate a specific location on the condominium property or
434association property where upon which all notices of unit owner
435meetings shall be posted. This requirement does not apply
436However, if there is no condominium property or association
437property for posting upon which notices can be posted, this
438requirement does not apply. In lieu of, or in addition to, the
439physical posting of meeting notices, the association may, by
440reasonable rule, adopt a procedure for conspicuously posting and
441repeatedly broadcasting the notice and the agenda on a closed-
442circuit cable television system serving the condominium
443association. However, if broadcast notice is used in lieu of a
444notice posted physically on the condominium property, the notice
445and agenda must be broadcast at least four times every broadcast
446hour of each day that a posted notice is otherwise required
447under this section. If broadcast notice is provided, the notice
448and agenda must be broadcast in a manner and for a sufficient
449continuous length of time so as to allow an average reader to
450observe the notice and read and comprehend the entire content of
451the notice and the agenda. Unless a unit owner waives in writing
452the right to receive notice of the annual meeting in writing,
453such notice must be hand delivered, mailed, or electronically
454transmitted to each unit owner. Notice for meetings and notice
455for all other purposes must be mailed to each unit owner at the
456address last furnished to the association by the unit owner, or
457hand delivered to each unit owner. However, if a unit is owned
458by more than one person, the association must shall provide
459notice, for meetings and all other purposes, to the that one
460address that which the developer initially identified identifies
461for that purpose and thereafter as one or more of the owners of
462the unit shall advise the association in writing, or if no
463address is given or the owners of the unit do not agree, to the
464address provided on the deed of record. An officer of the
465association, or the manager or other person providing notice of
466the association meeting, must shall provide an affidavit or
467United States Postal Service certificate of mailing, to be
468included in the official records of the association affirming
469that the notice was mailed or hand delivered, in accordance with
470this provision.
471     4.3.  The members of the board shall be elected by written
472ballot or voting machine. Proxies may not be used in electing
473the board in general elections or elections to fill vacancies
474caused by recall, resignation, or otherwise, unless otherwise
475provided in this chapter.
476     a.  At least 60 days before a scheduled election, the
477association shall mail, deliver, or electronically transmit,
478whether by separate association mailing or included in another
479association mailing, delivery, or transmission, including
480regularly published newsletters, to each unit owner entitled to
481a vote, a first notice of the date of the election. Any unit
482owner or other eligible person desiring to be a candidate for
483the board must give written notice of his or her intent to be a
484candidate to the association at least 40 days before a scheduled
485election. Together with the written notice and agenda as set
486forth in subparagraph 3. 2., the association shall mail,
487deliver, or electronically transmit a second notice of the
488election to all unit owners entitled to vote, together with a
489ballot that lists all candidates. Upon request of a candidate,
490an information sheet, no larger than 8 1/2 inches by 11 inches,
491which must be furnished by the candidate at least 35 days before
492the election, must be included with the mailing, delivery, or
493transmission of the ballot, with the costs of mailing, delivery,
494or electronic transmission and copying to be borne by the
495association. The association is not liable for the contents of
496the information sheets prepared by the candidates. In order to
497reduce costs, the association may print or duplicate the
498information sheets on both sides of the paper. The division
499shall by rule establish voting procedures consistent with this
500sub-subparagraph, including rules establishing procedures for
501giving notice by electronic transmission and rules providing for
502the secrecy of ballots. Elections shall be decided by a
503plurality of those ballots cast. There is no quorum requirement;
504however, at least 20 percent of the eligible voters must cast a
505ballot in order to have a valid election of members of the
506board. A unit owner may not permit any other person to vote his
507or her ballot, and any ballots improperly cast are invalid. A,
508provided any unit owner who violates this provision may be fined
509by the association in accordance with s. 718.303. A unit owner
510who needs assistance in casting the ballot for the reasons
511stated in s. 101.051 may obtain such assistance. The regular
512election must occur on the date of the annual meeting. This sub-
513subparagraph does not apply to timeshare condominium
514associations. Notwithstanding this sub-subparagraph, an election
515is not required unless more candidates file notices of intent to
516run or are nominated than board vacancies exist.
517     b.  Within 90 days after being elected or appointed to the
518board, each newly elected or appointed director shall certify in
519writing to the secretary of the association that he or she has
520read the association's declaration of condominium, articles of
521incorporation, bylaws, and current written policies; that he or
522she will work to uphold such documents and policies to the best
523of his or her ability; and that he or she will faithfully
524discharge his or her fiduciary responsibility to the
525association's members. In lieu of this written certification,
526within 90 days after being elected or appointed to the board,
527the newly elected or appointed director may submit a certificate
528of having satisfactorily completed satisfactory completion of
529the educational curriculum administered by a division-approved
530condominium education provider within 1 year before the date of
531election or appointment. The written certification or
532educational certificate is valid and does not have to be
533resubmitted as long as the director continuously serves on the
534board. A director who fails to timely file the written
535certification or educational certificate is suspended from
536service on the board until he or she complies with this sub-
537subparagraph. The board may temporarily fill the vacancy during
538the period of suspension. The secretary shall cause the
539association to retain a director's written certification or
540educational certificate for inspection by the members for 5
541years after a director's election. Failure to have such written
542certification or educational certificate on file does not affect
543the validity of any board action.
544     5.4.  Any approval by unit owners called for by this
545chapter or the applicable declaration or bylaws, including, but
546not limited to, the approval requirement in s. 718.111(8), must
547shall be made at a duly noticed meeting of unit owners and is
548subject to all requirements of this chapter or the applicable
549condominium documents relating to unit owner decisionmaking,
550except that unit owners may take action by written agreement,
551without meetings, on matters for which action by written
552agreement without meetings is expressly allowed by the
553applicable bylaws or declaration or any law statute that
554provides for such action.
555     6.5.  Unit owners may waive notice of specific meetings if
556allowed by the applicable bylaws or declaration or any law
557statute. If authorized by the bylaws, notice of meetings of the
558board of administration, unit owner meetings, except unit owner
559meetings called to recall board members under paragraph (j), and
560committee meetings may be given by e-mail electronic
561transmission to unit owners who consent to receive notice by
562electronic transmission.
563     7.6.  Unit owners may shall have the right to participate
564in meetings of unit owners with reference to all designated
565agenda items. However, the association may adopt reasonable
566rules governing the frequency, duration, and manner of unit
567owner participation.
568     8.7.  A Any unit owner may tape record or videotape a
569meeting of the unit owners subject to reasonable rules adopted
570by the division.
571     9.8.  Unless otherwise provided in the bylaws, any vacancy
572occurring on the board before the expiration of a term may be
573filled by the affirmative vote of the majority of the remaining
574directors, even if the remaining directors constitute less than
575a quorum, or by the sole remaining director. In the alternative,
576a board may hold an election to fill the vacancy, in which case
577the election procedures must conform to the requirements of sub-
578subparagraph 4.a. 3.a. unless the association governs 10 units
579or fewer and has opted out of the statutory election process, in
580which case the bylaws of the association control. Unless
581otherwise provided in the bylaws, a board member appointed or
582elected under this section shall fill the vacancy for the
583unexpired term of the seat being filled. Filling vacancies
584created by recall is governed by paragraph (j) and rules adopted
585by the division.
586
587Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a.
588(d)3.a., an association of 10 or fewer units may, by affirmative
589vote of a majority of the total voting interests, provide for
590different voting and election procedures in its bylaws, which
591vote may be by a proxy specifically delineating the different
592voting and election procedures. The different voting and
593election procedures may provide for elections to be conducted by
594limited or general proxy.
595     Section 3.  Section 718.114, Florida Statutes, is amended
596to read:
597     718.114  Association powers.-An association may has the
598power to enter into agreements, to acquire leaseholds,
599memberships, and other possessory or use interests in lands or
600facilities such as country clubs, golf courses, marinas, and
601other recreational facilities,. It has this power whether or not
602the lands or facilities are contiguous to the lands of the
603condominium, if such lands and facilities they are intended to
604provide enjoyment, recreation, or other use or benefit to the
605unit owners. All of these leaseholds, memberships, and other
606possessory or use interests existing or created at the time of
607recording the declaration must be stated and fully described in
608the declaration. Subsequent to the recording of the declaration,
609agreements acquiring these leaseholds, memberships, or other
610possessory or use interests which are not entered into within 12
611months following the recording of the declaration are shall be
612considered a material alteration or substantial addition to the
613real property that is association property, and the association
614may not acquire or enter into such agreements acquiring these
615leaseholds, memberships, or other possessory or use interests
616except upon a vote of, or written consent by, a majority of the
617total voting interests as authorized by the declaration as
618provided in s. 718.113. The declaration may provide that the
619rental, membership fees, operations, replacements, and other
620expenses are common expenses and may impose covenants and
621restrictions concerning their use and may contain other
622provisions not inconsistent with this chapter. A condominium
623association may conduct bingo games as provided in s. 849.0931.
624     Section 4.  Subsection (3), paragraph (b) of subsection
625(5), and subsection (11) of section 718.116, Florida Statutes,
626are amended to read:
627     718.116  Assessments; liability; lien and priority;
628interest; collection.-
629     (3)  Assessments and installments on assessments which are
630not paid when due bear interest at the rate provided in the
631declaration, from the due date until paid. The This rate may not
632exceed the rate allowed by law, and, if no rate is provided in
633the declaration, interest accrues at the rate of 18 percent per
634year. Also, If provided by the declaration or bylaws, the
635association may, in addition to such interest, charge an
636administrative late fee of up to the greater of $25 or 5 percent
637of each installment of the assessment for each delinquent
638installment for which the payment is late. The association may
639also charge for any reasonable expenses for collection services
640incurred relating to the delinquent account. Any payment
641received by an association must be applied first to any interest
642accrued by the association, then to any administrative late fee,
643then to any expenses for collection services, then to any costs
644and reasonable attorney's fees incurred in collection, and then
645to the delinquent assessment. The foregoing is applicable
646notwithstanding any restrictive endorsement, designation, or
647instruction placed on or accompanying a payment. A late fee is
648not subject to chapter 687 or s. 718.303(4) 718.303(3).
649     (5)
650     (b)  To be valid, a claim of lien must state the
651description of the condominium parcel, the name of the record
652owner, the name and address of the association, the amount due,
653and the due dates. It must be executed and acknowledged by an
654officer or authorized agent of the association. The lien is not
655effective longer than 1 year after the claim of lien was
656recorded unless, within that time, an action to enforce the lien
657is commenced. The 1-year period is automatically extended for
658any length of time during which the association is prevented
659from filing a foreclosure action by an automatic stay resulting
660from a bankruptcy petition filed by the parcel owner or any
661other person claiming an interest in the parcel. The claim of
662lien secures all unpaid assessments that are due and that may
663accrue after the claim of lien is recorded and through the entry
664of a final judgment, as well as interest and all reasonable
665costs and attorney's fees incurred by the association incident
666to the collection process. The claim of lien also secures any
667reasonable expenses for collection services relating to the
668delinquent account which the association incurred before filing
669a claim. Upon payment in full, the person making the payment is
670entitled to a satisfaction of the lien.
671
672After notice of contest of lien has been recorded, the clerk of
673the circuit court shall mail a copy of the recorded notice to
674the association by certified mail, return receipt requested, at
675the address shown in the claim of lien or most recent amendment
676to it and shall certify to the service on the face of the
677notice. Service is complete upon mailing. After service, the
678association has 90 days in which to file an action to enforce
679the lien; and, if the action is not filed within the 90-day
680period, the lien is void. However, the 90-day period shall be
681extended for any length of time during which that the
682association is prevented from filing its action because of an
683automatic stay resulting from the filing of a bankruptcy
684petition by the unit owner or by any other person claiming an
685interest in the parcel.
686     (11)  If the unit is occupied by a tenant and the unit
687owner is delinquent in paying any monetary obligation due to the
688association, the association may make a written demand that the
689tenant pay all unpaid rent due to the association the future
690monetary obligations related to the condominium unit to the
691association, and continue to the tenant must make such payment
692until all monetary obligations of the unit owner related to the
693unit have been paid in full to the association. The demand is
694continuing in nature and, upon demand, The tenant must pay the
695rent the monetary obligations to the association until the
696association releases the tenant or the tenant discontinues
697tenancy in the unit. The association must mail written notice to
698the unit owner of the association's demand that the tenant make
699payments to the association. The association shall, upon
700request, provide the tenant with written receipts for payments
701made. A tenant who acts in good faith in response to a written
702demand from an association is immune from any claim by from the
703unit owner. Any payment received from a tenant must be applied
704to the unit owner's most delinquent monetary obligation.
705     (a)  If the tenant prepaid rent to the unit owner before
706receiving the demand from the association and provides written
707evidence of prepaying paying the rent to the association within
70814 days after receiving the demand, the tenant shall receive
709credit for the prepaid rent for the applicable period but and
710must make any subsequent rental payments to the association to
711be credited against the monetary obligations of the unit owner
712to the association.
713     (b)  The tenant is not liable for increases in the amount
714of the monetary obligations due unless the tenant was notified
715in writing of the increase at least 10 days before the date the
716rent is due. The liability of the tenant may not exceed the
717amount due from the tenant to the tenant's landlord. The
718tenant's landlord shall provide the tenant a credit against
719rents due to the unit owner in the amount of moneys paid to the
720association under this section.
721     (c)  The association may issue notices under s. 83.56 and
722may sue for eviction under ss. 83.59-83.625 as if the
723association were a landlord under part II of chapter 83 if the
724tenant fails to pay a required payment to the association.
725However, the association is not otherwise considered a landlord
726under chapter 83 and specifically has no obligations duties
727under s. 83.51.
728     (d)  The tenant does not, by virtue of payment of rent
729monetary obligations to the association, have any of the rights
730of a unit owner to vote in any election or to examine the books
731and records of the association.
732     (e)  A court may supersede the effect of this subsection by
733appointing a receiver.
734     Section 5.  Subsections (3), (4), and (11), paragraphs (a)
735and (d) of subsection (12), subsection (14), paragraph (a) of
736subsection (17), and subsections (18) and (19) of section
737718.117, Florida Statutes, are amended to read:
738     718.117  Termination of condominium.-
739     (3)  OPTIONAL TERMINATION.-Except as provided in subsection
740(2) or unless the declaration provides for a lower percentage,
741the condominium form of ownership of the property may be
742terminated for all or a portion of the condominium property
743pursuant to a plan of termination approved by at least 80
744percent of the total voting interests of the condominium if no
745not more than 10 percent of the total voting interests of the
746condominium have rejected the plan of termination by negative
747vote or by providing written objections thereto. This subsection
748does not apply to condominiums in which 75 percent or more of
749the units are timeshare units.
750     (4)  EXEMPTION.-A plan of termination is not an amendment
751subject to s. 718.110(4). In a partial termination, a plan of
752termination is not an amendment subject to s. 718.110(4) if the
753ownership share of the common elements of a surviving unit in
754the condominium remains in the same proportion to the surviving
755units as it was before the partial termination.
756     (11)  PLAN OF TERMINATION; OPTIONAL PROVISIONS; CONDITIONAL
757TERMINATION.-
758     (a)  The plan of termination may provide that each unit
759owner retains the exclusive right of possession to the portion
760of the real estate which that formerly constituted the unit if,
761in which case the plan specifies must specify the conditions of
762possession. In a partial termination, the plan of termination as
763specified in subsection (10) must also identify the units that
764survive the partial termination and provide that such units
765remain in the condominium form of ownership pursuant to an
766amendment to the declaration of condominium or an amended and
767restated declaration. In a partial termination, title to the
768surviving units and common elements that remain part of the
769condominium property specified in the plan of termination remain
770vested in the ownership shown in the public records and do not
771vest in the termination trustee.
772     (b)  In a conditional termination, the plan must specify
773the conditions for termination. A conditional plan does not vest
774title in the termination trustee until the plan and a
775certificate executed by the association with the formalities of
776a deed, confirming that the conditions in the conditional plan
777have been satisfied or waived by the requisite percentage of the
778voting interests, have been recorded. In a partial termination,
779the plan does not vest title to the surviving units or common
780elements that remain part of the condominium property in the
781termination trustee.
782     (12)  ALLOCATION OF PROCEEDS OF SALE OF CONDOMINIUM
783PROPERTY.-
784     (a)  Unless the declaration expressly provides for the
785allocation of the proceeds of sale of condominium property, the
786plan of termination must first apportion the proceeds between
787the aggregate value of all units and the value of the common
788elements, based on their respective fair market values
789immediately before the termination, as determined by one or more
790independent appraisers selected by the association or
791termination trustee. In a partial termination, the aggregate
792values of the units and common elements that are being
793terminated must be separately determined, and the plan of
794termination must specify the allocation of the proceeds of sale
795for the units and common elements.
796     (d)  Liens that encumber a unit shall be transferred to the
797proceeds of sale of the condominium property and the proceeds of
798sale or other distribution of association property, common
799surplus, or other association assets attributable to such unit
800in their same priority. In a partial termination, liens that
801encumber a unit being terminated must be transferred to the
802proceeds of sale of that portion of the condominium property
803being terminated which are attributable to such unit. The
804proceeds of any sale of condominium property pursuant to a plan
805of termination may not be deemed to be common surplus or
806association property.
807     (14)  TITLE VESTED IN TERMINATION TRUSTEE.-If termination
808is pursuant to a plan of termination under subsection (2) or
809subsection (3), the unit owners' rights and title to as tenants
810in common in undivided interests in the condominium property
811being terminated vests vest in the termination trustee when the
812plan is recorded or at a later date specified in the plan. The
813unit owners thereafter become the beneficiaries of the proceeds
814realized from the plan of termination as set forth in the plan.
815The termination trustee may deal with the condominium property
816being terminated or any interest therein if the plan confers on
817the trustee the authority to protect, conserve, manage, sell, or
818dispose of the condominium property. The trustee, on behalf of
819the unit owners, may contract for the sale of real property
820being terminated, but the contract is not binding on the unit
821owners until the plan is approved pursuant to subsection (2) or
822subsection (3).
823     (17)  DISTRIBUTION.-
824     (a)  Following termination of the condominium, the
825condominium property, association property, common surplus, and
826other assets of the association shall be held by the termination
827trustee pursuant to the plan of termination, as trustee for unit
828owners and holders of liens on the units, in their order of
829priority unless otherwise set forth in the plan of termination.
830     (18)  ASSOCIATION STATUS.-The termination of a condominium
831does not change the corporate status of the association that
832operated the condominium property. The association continues to
833exist to conclude its affairs, prosecute and defend actions by
834or against it, collect and discharge obligations, dispose of and
835convey its property, and collect and divide its assets, but not
836to act except as necessary to conclude its affairs. In a partial
837termination, the association may continue as the condominium
838association for the property that remains subject to a
839declaration of condominium.
840     (19)  CREATION OF ANOTHER CONDOMINIUM.-The termination or
841partial termination of a condominium does not bar the filing of
842a declaration of condominium or an amended and restated
843declaration of condominium by the termination trustee or the
844trustee's successor in interest which affects affecting any
845portion of the same property that does not continue under the
846condominium form of ownership pursuant to the plan of
847termination. The partial termination may provide for the
848simultaneous filing of an amendment to the declaration of
849condominium or an amended and restated declaration of
850condominium by the condominium association for any portion of
851the property remaining in the condominium form of ownership.
852     Section 6.  Subsections (3), (4), and (5) of section
853718.303, Florida Statutes, are amended, and subsection (6) is
854added to that section, to read:
855     718.303  Obligations of owners and occupants; remedies.-
856     (3)  If a unit owner is delinquent for more than 90 days in
857paying a monetary obligation due to the association, the
858association may suspend the right of a unit owner or a unit's
859occupant, licensee, or invitee to use common elements, common
860facilities, or any other association property until the monetary
861obligation is paid. This subsection does not apply to limited
862common elements intended to be used only by that unit, common
863elements that must be used to access the unit, utility services
864provided to the unit, parking spaces, or elevators. The
865association may also levy reasonable fines for the failure of
866the owner of the unit, or its occupant, licensee, or invitee, to
867comply with any provision of the declaration, the association
868bylaws, or reasonable rules of the association. A fine may does
869not become a lien against a unit. A fine may not exceed $100 per
870violation. However, A fine may be levied on the basis of each
871day of a continuing violation, with a single notice and
872opportunity for hearing. However, the fine may not exceed $100
873per violation, or $1,000 in the aggregate exceed $1,000. A fine
874may not be levied and a suspension may not be imposed unless the
875association first provides at least 14 days' written notice and
876an opportunity for a hearing to the unit owner and, if
877applicable, its occupant, licensee, or invitee. The hearing must
878be held before a committee of other unit owners who are neither
879board members nor persons residing in a board member's
880household. If the committee does not agree with the fine or
881suspension, the fine or suspension may not be levied or imposed.
882     (4)  If a unit owner is more than 90 days delinquent in
883paying a monetary obligation due to the association, the
884association may suspend the right of the unit owner or the
885unit's occupant, licensee, or invitee to use common elements,
886common facilities, or any other association property until the
887monetary obligation is paid. This subsection does not apply to
888limited common elements intended to be used only by that unit,
889common elements needed to access the unit, utility services
890provided to the unit, parking spaces, or elevators. The notice
891and hearing requirements under subsection (3) do not apply to
892suspensions imposed under this subsection.
893     (4)  The notice and hearing requirements of subsection (3)
894do not apply to the imposition of suspensions or fines against a
895unit owner or a unit's occupant, licensee, or invitee because of
896failing to pay any amounts due the association. If such a fine
897or suspension is imposed, the association must levy the fine or
898impose a reasonable suspension at a properly noticed board
899meeting, and after the imposition of such fine or suspension,
900the association must notify the unit owner and, if applicable,
901the unit's occupant, licensee, or invitee by mail or hand
902delivery.
903     (5)  An association may also suspend the voting rights of a
904member due to nonpayment of any monetary obligation due to the
905association which is more than 90 days delinquent. The
906suspension ends upon full payment of all obligations currently
907due or overdue the association. The notice and hearing
908requirements under subsection (3) do not apply to a suspension
909imposed under this subsection.
910     (6)  All suspensions imposed pursuant to subsection (4) or
911subsection (5) must be approved at a properly noticed board
912meeting. Upon approval, the association must notify the unit
913owner and, if applicable, the unit's occupant, licensee, or
914invitee by mail or hand delivery.
915     Section 7.  Section 718.703, Florida Statutes, is amended
916to read:
917     718.703  Definitions.-As used in this part, the term:
918     (1)  "Bulk assignee" means a person who is not a bulk buyer
919and who:
920     (a)  Acquires more than seven condominium parcels in a
921single condominium as set forth in s. 718.707; and
922     (b)  Receives an assignment of any of the developer rights,
923other than or in addition to those rights described in
924subsection (2), some or all of the rights of the developer as
925set forth in the declaration of condominium or this chapter: by
926     1.  By a written instrument recorded as part of, or an
927exhibit to the deed; or as
928     2.  By a separate instrument recorded in the public records
929of the county in which the condominium is located; or
930     3.  Pursuant to a final judgment or certificate of title
931issued in favor of a purchaser at a foreclosure sale.
932
933A mortgagee or its assignee may not be deemed a bulk assignee or
934a developer by reason of the acquisition of condominium units
935and receipt of an assignment of some or all of a developer
936rights unless the mortgagee or its assignee exercises any of the
937developer rights other than those described in subsection (2).
938     (2)  "Bulk buyer" means a person who acquires more than
939seven condominium parcels in a single condominium as set forth
940in s. 718.707, but who does not receive an assignment of any
941developer rights, or receives only some or all of the following
942rights: other than
943     (a)  The right to conduct sales, leasing, and marketing
944activities within the condominium;
945     (b)  The right to be exempt from the payment of working
946capital contributions to the condominium association arising out
947of, or in connection with, the bulk buyer's acquisition of the a
948bulk number of units; and
949     (c)  The right to be exempt from any rights of first
950refusal which may be held by the condominium association and
951would otherwise be applicable to subsequent transfers of title
952from the bulk buyer to a third party purchaser concerning one or
953more units.
954     Section 8.  Section 718.704, Florida Statutes, is amended
955to read:
956     718.704  Assignment and assumption of developer rights by
957bulk assignee; bulk buyer.-
958     (1)  A bulk assignee is deemed to have assumed assumes and
959is liable for all duties and responsibilities of the developer
960under the declaration and this chapter upon its acquisition of
961title to units, except that it is not liable for:
962     (a)  Warranties of the developer under s. 718.203(1) or s.
963718.618, except as expressly provided by the bulk assignee in a
964prospectus or offering circular, or the contract for purchase
965and sale executed with a purchaser, or for design, construction,
966development, or repair work performed by or on behalf of the
967such bulk assignee.;
968     (b)  The obligation to:
969     1.  Fund converter reserves under s. 718.618 for a unit
970that was not acquired by the bulk assignee; or
971     2.  Provide implied converter warranties on any portion of
972the condominium property except as expressly provided by the
973bulk assignee in a prospectus or offering circular, or the
974contract for purchase and sale executed with a purchaser, or for
975and pertaining to any design, construction, development, or
976repair work performed by or on behalf of the bulk assignee.;
977     (c)  The requirement to provide the association with a
978cumulative audit of the association's finances from the date of
979formation of the condominium association as required by s.
980718.301(4)(c). However, the bulk assignee must provide an audit
981for the period during which the bulk assignee elects or appoints
982a majority of the members of the board of administration.;
983     (d)  Any liability arising out of or in connection with
984actions taken by the board of administration or the developer-
985appointed directors before the bulk assignee elects or appoints
986a majority of the members of the board of administration.; and
987     (e)  Any liability for or arising out of the developer's
988failure to fund previous assessments or to resolve budgetary
989deficits in relation to a developer's right to guarantee
990assessments, except as otherwise provided in subsection (2).
991
992The bulk assignee is also responsible only for delivering
993documents and materials in accordance with s. 718.705(3). A bulk
994assignee may expressly assume some or all of the developer
995obligations of the developer described in paragraphs (a)-(e).
996     (2)  A bulk assignee assigned the developer rights
997receiving the assignment of the rights of the developer to
998guarantee the level of assessments and fund budgetary deficits
999pursuant to s. 718.116 assumes and is liable for all obligations
1000of the developer with respect to such guarantee upon its
1001acquisition of title to the units, including any applicable
1002funding of reserves to the extent required by law, for as long
1003as the guarantee remains in effect. A bulk assignee not
1004receiving such assignment, or a bulk buyer, does not assume and
1005is not liable for the obligations of the developer with respect
1006to such guarantee, but is responsible for payment of assessments
1007due on or after acquisition of the units in the same manner as
1008all other owners of condominium parcels or as otherwise provided
1009in s. 718.116.
1010     (3)  A bulk buyer is liable for the duties and
1011responsibilities of a the developer under the declaration and
1012this chapter only to the extent that such provided in this part,
1013together with any other duties or responsibilities are of the
1014developer expressly assumed in writing by the bulk buyer.
1015     (4)  An acquirer of condominium parcels is not a bulk
1016assignee or a bulk buyer if the transfer to such acquirer was
1017made:
1018     (a)  Before the effective date of this part;
1019     (b)  With the intent to hinder, delay, or defraud any
1020purchaser, unit owner, or the association;, or if the acquirer
1021is
1022     (c)  By a person who would be considered an insider under
1023s. 726.102(7).
1024     (5)  An assignment of developer rights to a bulk assignee
1025may be made by a the developer, a previous bulk assignee, a
1026mortgagee or assignee who has acquired title to the units and
1027received an assignment of rights, or a court acting on behalf of
1028the developer or the previous bulk assignee if such developer
1029rights are held by the predecessor in title to the bulk
1030assignee. At any particular time, there may not be no more than
1031one bulk assignee within a condominium; however, but there may
1032be more than one bulk buyer. If more than one acquirer of
1033condominium parcels in the same condominium receives an
1034assignment of developer rights in addition to those rights
1035described in s. 718.703(2) from the same person, the bulk
1036assignee is the acquirer whose instrument of assignment is
1037recorded first in the public records of the county in which the
1038condominium is located, and any subsequent purported bulk
1039assignee may still qualify as a bulk buyer.
1040     Section 9.  Subsections (1) and (3) of section 718.705,
1041Florida Statutes, are amended to read:
1042     718.705  Board of administration; transfer of control.-
1043     (1)  If, at the time the bulk assignee acquires title to
1044the units and receives an assignment of developer rights, the
1045developer has not relinquished control of the board of
1046administration, for purposes of determining the timing for
1047transfer of control of the board of administration of the
1048association to unit owners other than the developer under s.
1049718.301(1)(a) and (b), if a bulk assignee is entitled to elect a
1050majority of the members of the board, a condominium parcel
1051acquired by the bulk assignee is not deemed to be conveyed to a
1052purchaser, or owned by an owner other than the developer, until
1053the condominium parcel is conveyed to an owner who is not a bulk
1054assignee.
1055     (3)  If a bulk assignee relinquishes control of the board
1056of administration as set forth in s. 718.301, the bulk assignee
1057must deliver all of those items required by s. 718.301(4).
1058However, the bulk assignee is not required to deliver items and
1059documents not in the possession of the bulk assignee if some
1060items were or should have been in existence before the bulk
1061assignee's acquisition of the units during the period during
1062which the bulk assignee was entitled to elect at least a
1063majority of the members of the board of administration. In
1064conjunction with the acquisition of units condominium parcels, a
1065bulk assignee shall undertake a good faith effort to obtain the
1066documents and materials that must be provided to the association
1067pursuant to s. 718.301(4). If the bulk assignee is not able to
1068obtain all of such documents and materials, the bulk assignee
1069must certify in writing to the association the names or
1070descriptions of the documents and materials that were not
1071obtainable by the bulk assignee. Delivery of the certificate
1072relieves the bulk assignee of responsibility for delivering the
1073documents and materials referenced in the certificate as
1074otherwise required under ss. 718.112 and 718.301 and this part.
1075The responsibility of the bulk assignee for the audit required
1076by s. 718.301(4) commences as of the date on which the bulk
1077assignee elected or appointed a majority of the members of the
1078board of administration.
1079     Section 10.  Section 718.706, Florida Statutes, is amended
1080to read:
1081     718.706  Specific provisions pertaining to offering of
1082units by a bulk assignee or bulk buyer.-
1083     (1)  Before offering more than seven any units in a single
1084condominium for sale or for lease for a term exceeding 5 years,
1085a bulk assignee or a bulk buyer must file the following
1086documents with the division and provide such documents to a
1087prospective purchaser or tenant:
1088     (a)  An updated prospectus or offering circular, or a
1089supplement to the prospectus or offering circular, filed by the
1090original developer prepared in accordance with s. 718.504, which
1091must include the form of contract for sale and for lease in
1092compliance with s. 718.503(2);
1093     (b)  An updated Frequently Asked Questions and Answers
1094sheet;
1095     (c)  The executed escrow agreement if required under s.
1096718.202; and
1097     (d)  The financial information required by s. 718.111(13).
1098However, if a financial information report did does not exist
1099for the fiscal year before the acquisition of title by the bulk
1100assignee or bulk buyer, and or accounting records that cannot be
1101obtained in good faith by the bulk assignee or the bulk buyer
1102which would permit preparation of the required financial
1103information report for that period cannot be obtained despite
1104good faith efforts by the bulk assignee or the bulk buyer, the
1105bulk assignee or bulk buyer is excused from the requirement of
1106this paragraph. However, the bulk assignee or bulk buyer must
1107include in the purchase contract the following statement in
1108conspicuous type:
1109
1110ALL OR A PORTION OF THE FINANCIAL INFORMATION REPORT
1111REQUIRED UNDER S. 718.111(13) FOR THE TIME PERIOD
1112BEFORE THE SELLER'S ACQUISITION OF THE UNIT
1113IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION
1114IS NOT AVAILABLE OR CANNOT BE OBTAINED DESPITE THE
1115GOOD FAITH EFFORTS OF CREATED BY THE SELLER DUE TO THE
1116INSUFFICIENT ACCOUNTING RECORDS OF THE ASSOCIATION.
1117
1118     (2)  Before offering more than seven any units in a single
1119condominium for sale or for lease for a term exceeding 5 years,
1120a bulk assignee or a bulk buyer must file with the division and
1121provide to a prospective purchaser or tenant under a lease for a
1122term exceeding 5 years a disclosure statement that includes, but
1123is not limited to:
1124     (a)  A description of any rights of the developer rights
1125that developer which have been assigned to the bulk assignee or
1126bulk buyer;
1127     (b)  The following statement in conspicuous type:
1128
1129THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1130DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS
1131APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION,
1132DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
1133OF THE SELLER; and
1134
1135     (c)  If the condominium is a conversion subject to part VI,
1136the following statement in conspicuous type:
1137
1138THE SELLER HAS NO OBLIGATION TO FUND CONVERTER
1139RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S.
1140718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY
1141EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN
1142THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE
1143SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO
1144ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK
1145PERFORMED BY OR ON BEHALF OF THE SELLER.
1146
1147     (3)  A bulk assignee, while it is in control of the board
1148of administration of the association, may not authorize, on
1149behalf of the association:
1150     (a)  The waiver of reserves or the reduction of funding of
1151the reserves pursuant to s. 718.112(2)(f)2., unless approved by
1152a majority of the voting interests not controlled by the
1153developer, bulk assignee, and bulk buyer; or
1154     (b)  The use of reserve expenditures for other purposes
1155pursuant to s. 718.112(2)(f)3., unless approved by a majority of
1156the voting interests not controlled by the developer, bulk
1157assignee, and bulk buyer.
1158     (4)  A bulk assignee or a bulk buyer must comply with all
1159the requirements of s. 718.302 regarding any contracts entered
1160into by the association during the period the bulk assignee or
1161bulk buyer maintains control of the board of administration.
1162Unit owners shall be provided afforded all of the rights and the
1163protections contained in s. 718.302 regarding agreements entered
1164into by the association which are under the control of before
1165unit owners other than the developer, bulk assignee, or bulk
1166buyer elected a majority of the board of administration.
1167     (5)  Notwithstanding any other provision of this part, a
1168bulk assignee or a bulk buyer is not required to comply with the
1169filing or disclosure requirements of subsections (1) and (2) if
1170all of the units owned by the bulk assignee or bulk buyer are
1171offered and conveyed to a single purchaser in a single
1172transaction. A bulk buyer must comply with the requirements
1173contained in the declaration regarding any transfer of a unit,
1174including sales, leases, and subleases. A bulk buyer is not
1175entitled to any exemptions afforded a developer or successor
1176developer under this chapter regarding the transfer of a unit,
1177including sales, leases, or subleases.
1178     Section 11.  Section 718.707, Florida Statutes, is amended
1179to read:
1180     718.707  Time limitation for classification as bulk
1181assignee or bulk buyer.-A person acquiring condominium parcels
1182may not be classified as a bulk assignee or bulk buyer unless
1183the condominium parcels were acquired on or after July 1, 2010,
1184but before July 1, 2012. The date of such acquisition shall be
1185determined by the date of recording of a deed or other
1186instrument of conveyance for such parcels in the public records
1187of the county in which the condominium is located, or by the
1188date of issuing issuance of a certificate of title in a
1189foreclosure proceeding with respect to such condominium parcels.
1190     Section 12.  Subsection (10) of section 719.108, Florida
1191Statutes, is amended to read:
1192     719.108  Rents and assessments; liability; lien and
1193priority; interest; collection; cooperative ownership.-
1194     (10)  If the unit is occupied by a tenant and the unit
1195owner is delinquent in paying any monetary obligation due to the
1196association, the association may make a written demand that the
1197tenant pay all unpaid rent due to the association the future
1198monetary obligations related to the unit cooperative share to
1199the association and continue to the tenant must make such
1200payment until all monetary obligations of the unit owner related
1201to the unit have been paid in full to the association. The
1202demand is continuing in nature, and upon demand, The tenant must
1203pay the rent the monetary obligations to the association until
1204the association releases the tenant or the tenant discontinues
1205tenancy in the unit. The association must mail written notice to
1206the unit owner of the association's demand that the tenant make
1207payments to the association. The association shall, upon
1208request, provide the tenant with written receipts for payments
1209made. A tenant who acts in good faith in response to a written
1210demand from an association is immune from any claim by from the
1211unit owner. Any payment received from a tenant by the
1212association must be applied to the unit owner's most delinquent
1213monetary obligation.
1214     (a)  If the tenant prepaid rent to the unit owner before
1215receiving the demand from the association and provides written
1216evidence of prepaying paying the rent to the association within
121714 days after receiving the demand, the tenant shall receive
1218credit for the prepaid rent for the applicable period but and
1219must make any subsequent rental payments to the association to
1220be credited against the monetary obligations of the unit owner
1221to the association.
1222     (b)  The tenant is not liable for increases in the amount
1223of the regular monetary obligations due unless the tenant was
1224notified in writing of the increase at least 10 days before the
1225date on which the rent is due. The liability of the tenant may
1226not exceed the amount due from the tenant to the tenant's
1227landlord. The tenant's landlord shall provide the tenant a
1228credit against rents due to the unit owner in the amount of
1229moneys paid to the association under this section.
1230     (c)  The association may issue notices under s. 83.56 and
1231may sue for eviction under ss. 83.59-83.625 as if the
1232association were a landlord under part II of chapter 83 if the
1233tenant fails to pay a required payment. However, the association
1234is not otherwise considered a landlord under chapter 83 and
1235specifically has no obligations duties under s. 83.51.
1236     (d)  The tenant does not, by virtue of payment of monetary
1237obligations, have any of the rights of a unit owner to vote in
1238any election or to examine the books and records of the
1239association.
1240     (e)  A court may supersede the effect of this subsection by
1241appointing a receiver.
1242     Section 13.  Subsection (3) of section 719.303, Florida
1243Statutes, is amended, and subsections (4), (5), and (6) are
1244added to that section, to read:
1245     719.303  Obligations of owners.-
1246     (3)  If the cooperative documents so provide, The
1247association may levy reasonable fines against a unit owner for
1248failure of the unit owner or the unit's occupant, his or her
1249licensee, or invitee or the unit's occupant to comply with any
1250provision of the cooperative documents or reasonable rules of
1251the association. A fine may not No fine shall become a lien
1252against a unit. No fine shall exceed $100 per violation.
1253However, A fine may be levied on the basis of each day of a
1254continuing violation, with a single notice and opportunity for
1255hearing. However, the fine may not exceed $100 per violation, or
1256$1,000 provided that no such fine shall in the aggregate exceed
1257$1,000. A No fine may not be levied except after giving
1258reasonable notice and opportunity for a hearing to the unit
1259owner and, if applicable, the unit's his or her licensee or
1260invitee. The hearing must shall be held before a committee of
1261other unit owners. If the committee does not agree with the
1262fine, it may shall not be levied. This subsection does not apply
1263to unoccupied units.
1264     (4)  If a unit owner is more than 90 days delinquent in
1265paying a monetary obligation due to the association, the
1266association may suspend the right of the unit owner or the
1267unit's occupant, licensee, or invitee to use common elements,
1268common facilities, or any other association property until the
1269monetary obligation is paid. This subsection does not apply to
1270limited common elements intended to be used only by that unit,
1271common elements needed to access the unit, utility services
1272provided to the unit, parking spaces, or elevators. The notice
1273and hearing requirements under subsection (3) do not apply to
1274suspensions imposed under this subsection.
1275     (5)  An association may suspend the voting rights of a
1276member due to nonpayment of any monetary obligation due to the
1277association which is more than 90 days delinquent. The
1278suspension ends upon full payment of all obligations currently
1279due or overdue the association. The notice and hearing
1280requirements under subsection (3) do not apply to a suspension
1281imposed under this subsection.
1282     (6)  All suspensions imposed pursuant to subsection (4) or
1283subsection (5) must be approved at a properly noticed board
1284meeting. Upon approval, the association must notify the unit
1285owner and, if applicable, the unit's occupant, licensee, or
1286invitee by mail or hand delivery.
1287     Section 14.  Paragraph (c) of subsection (5) of section
1288720.303, Florida Statutes, is amended to read:
1289     720.303  Association powers and duties; meetings of board;
1290official records; budgets; financial reporting; association
1291funds; recalls.-
1292     (5)  INSPECTION AND COPYING OF RECORDS.-The official
1293records shall be maintained within the state and must be open to
1294inspection and available for photocopying by members or their
1295authorized agents at reasonable times and places within 10
1296business days after receipt of a written request for access.
1297This subsection may be complied with by having a copy of the
1298official records available for inspection or copying in the
1299community. If the association has a photocopy machine available
1300where the records are maintained, it must provide parcel owners
1301with copies on request during the inspection if the entire
1302request is limited to no more than 25 pages.
1303     (c)  The association may adopt reasonable written rules
1304governing the frequency, time, location, notice, records to be
1305inspected, and manner of inspections, but may not require a
1306parcel owner to demonstrate any proper purpose for the
1307inspection, state any reason for the inspection, or limit a
1308parcel owner's right to inspect records to less than one 8-hour
1309business day per month. The association may impose fees to cover
1310the costs of providing copies of the official records,
1311including, without limitation, the costs of copying. The
1312association may charge up to 50 cents per page for copies made
1313on the association's photocopier. If the association does not
1314have a photocopy machine available where the records are kept,
1315or if the records requested to be copied exceed 25 pages in
1316length, the association may have copies made by an outside
1317vendor or association management company personnel and may
1318charge the actual cost of copying, including any reasonable
1319costs involving personnel fees and charges at an hourly rate for
1320vendor or employee time to cover administrative costs to the
1321vendor or association. The association shall maintain an
1322adequate number of copies of the recorded governing documents,
1323to ensure their availability to members and prospective members.
1324Notwithstanding this paragraph, the following records are not
1325accessible to members or parcel owners:
1326     1.  Any record protected by the lawyer-client privilege as
1327described in s. 90.502 and any record protected by the work-
1328product privilege, including, but not limited to, a any record
1329prepared by an association attorney or prepared at the
1330attorney's express direction which reflects a mental impression,
1331conclusion, litigation strategy, or legal theory of the attorney
1332or the association and which was prepared exclusively for civil
1333or criminal litigation or for adversarial administrative
1334proceedings or which was prepared in anticipation of such
1335imminent civil or criminal litigation or imminent adversarial
1336administrative proceedings until the conclusion of the
1337litigation or administrative proceedings.
1338     2.  Information obtained by an association in connection
1339with the approval of the lease, sale, or other transfer of a
1340parcel.
1341     3.  Personnel records of the association's employees,
1342including, but not limited to, disciplinary, payroll, health,
1343and insurance records, but not including written employment
1344agreements with an association employee or budgetary or
1345financial records that indicate the compensation paid to an
1346association employee.
1347     4.  Medical records of parcel owners or community
1348residents.
1349     5.  Social security numbers, driver's license numbers,
1350credit card numbers, e-mail electronic mailing addresses,
1351telephone numbers, facsimile numbers, emergency contact
1352information, any addresses for a parcel owner other than as
1353provided for association notice requirements, and other personal
1354identifying information of any person, excluding the person's
1355name, parcel designation, mailing address, and property address.
1356     6.  Any electronic security measure that is used by the
1357association to safeguard data, including passwords.
1358     7.  The software and operating system used by the
1359association which allows the manipulation of data, even if the
1360owner owns a copy of the same software used by the association.
1361The data is part of the official records of the association.
1362     Section 15.  Subsections (2) and (3) of section 720.305,
1363Florida Statutes, are amended and renumbered as subsections (3)
1364and (4), respectively, and subsection (5) is added to that
1365section, to read:
1366     720.305  Obligations of members; remedies at law or in
1367equity; levy of fines and suspension of use rights.-
1368     (2)  The association If a member is delinquent for more
1369than 90 days in paying a monetary obligation due the
1370association, an association may suspend, until such monetary
1371obligation is paid, the rights of a member or a member's
1372tenants, guests, or invitees, or both, to use common areas and
1373facilities and may levy reasonable fines of up to $100 per
1374violation, against any member or any member's tenant, guest, or
1375invitee for the failure of the owner of the parcel, or its
1376occupant, licensee, or invitee, to comply with any provision of
1377the declaration, the association bylaws, or reasonable rules of
1378the association. A fine may be levied for each day of a
1379continuing violation, with a single notice and opportunity for
1380hearing, except that the a fine may not exceed $1,000 in the
1381aggregate unless otherwise provided in the governing documents.
1382A fine of less than $1,000 may not become a lien against a
1383parcel. In any action to recover a fine, the prevailing party is
1384entitled to collect its reasonable attorney's fees and costs
1385from the nonprevailing party as determined by the court.
1386     (a)  If the governing documents so provide, an association
1387may suspend, for a reasonable period of time, the rights of a
1388member or a member's tenant, guest, or invitee, to use common
1389areas and facilities for the failure of the owner of the parcel,
1390or its occupant, licensee, or invitee, to comply with any
1391provision of the declaration, the association bylaws, or
1392reasonable rules of the association. The provisions regarding
1393the suspension-of-use rights do not apply to the portion of
1394common areas that must be used to provide access to the parcel
1395or utility services provided to the parcel.
1396     (b)(a)  A fine or suspension may not be imposed without at
1397least 14 days' notice to the person sought to be fined or
1398suspended and an opportunity for a hearing before a committee of
1399at least three members appointed by the board who are not
1400officers, directors, or employees of the association, or the
1401spouse, parent, child, brother, or sister of an officer,
1402director, or employee. If the committee, by majority vote, does
1403not approve a proposed fine or suspension, it may not be
1404imposed. If the association imposes a fine or suspension, the
1405association must provide written notice of such fine or
1406suspension by mail or hand delivery to the parcel owner and, if
1407applicable, to any tenant, licensee, or invitee of the parcel
1408owner.
1409     (3)  If a member is more than 90 days delinquent in paying
1410a monetary obligation due the association, the association may
1411suspend the rights of a member, or a member's tenant, guest, or
1412invitee, to use common areas and facilities until the monetary
1413obligation is paid. The subsection does not apply to that
1414portion of common areas used to provide access to the parcel or
1415to utility services provided to the parcel.
1416     (b)  Suspension does of common-area-use rights do not
1417impair the right of an owner or tenant of a parcel to have
1418vehicular and pedestrian ingress to and egress from the parcel,
1419including, but not limited to, the right to park. The notice and
1420hearing requirements under subsection (2) do not apply to a
1421suspension imposed under this subsection.
1422     (4)(3)  If the governing documents so provide, An
1423association may suspend the voting rights of a member for the
1424nonpayment of any monetary obligation that is more than regular
1425annual assessments that are delinquent in excess of 90 days
1426delinquent. The notice and hearing requirements under subsection
1427(2) do not apply to a suspension imposed under this subsection.
1428The suspension ends upon full payment of all obligations
1429currently due or overdue the association.
1430     (5)  All suspensions imposed pursuant to subsection (3) or
1431subsection (4) must be approved at a properly noticed board
1432meeting. Upon approval, the association must notify the parcel
1433owner and, if applicable, the parcel's occupant, licensee, or
1434invitee by mail or hand delivery.
1435     Section 16.  Paragraph (a) of subsection (1) and subsection
1436(8) of section 720.3085, Florida Statutes, are amended to read:
1437     720.3085  Payment for assessments; lien claims.-
1438     (1)  When authorized by the governing documents, the
1439association has a lien on each parcel to secure the payment of
1440assessments and other amounts provided for by this section.
1441Except as otherwise set forth in this section, the lien is
1442effective from and shall relate back to the date on which the
1443original declaration of the community was recorded. However, as
1444to first mortgages of record, the lien is effective from and
1445after recording of a claim of lien in the public records of the
1446county in which the parcel is located. This subsection does not
1447bestow upon any lien, mortgage, or certified judgment of record
1448on July 1, 2008, including the lien for unpaid assessments
1449created in this section, a priority that, by law, the lien,
1450mortgage, or judgment did not have before July 1, 2008.
1451     (a)  To be valid, a claim of lien must state the
1452description of the parcel, the name of the record owner, the
1453name and address of the association, the assessment amount due,
1454and the due date. The claim of lien secures shall secure all
1455unpaid assessments that are due and that may accrue subsequent
1456to the recording of the claim of lien and before entry of a
1457certificate of title, as well as interest, late charges, and
1458reasonable costs and attorney's fees incurred by the association
1459incident to the collection process. The claim of lien also
1460secures any reasonable expenses for collection services relating
1461to the delinquent account which the association incurred before
1462filing a claim. The person making the payment is entitled to a
1463satisfaction of the lien upon payment in full.
1464     (8)  If the parcel is occupied by a tenant and the parcel
1465owner is delinquent in paying any monetary obligation due to the
1466association, the association may demand that the tenant pay all
1467unpaid rent due to the association the future monetary
1468obligations related to the parcel until all the monetary
1469obligations of the parcel owner related to the parcel have been
1470paid. The demand is continuing in nature, and upon demand, the
1471tenant must continue to pay the rent to the association the
1472monetary obligations until the association releases the tenant
1473or the tenant discontinues tenancy in the parcel. A tenant who
1474acts in good faith in response to a written demand from an
1475association is immune from any claim by from the parcel owner.
1476Any payment received from a tenant by the association must be
1477applied to the parcel owner's most delinquent monetary
1478obligation.
1479     (a)  If the tenant prepaid rent to the parcel owner before
1480receiving the demand from the association and provides written
1481evidence of prepaying paying the rent to the association within
148214 days after receiving the demand, the tenant shall receive
1483credit for the prepaid rent for the applicable period but and
1484must make any subsequent rental payments to the association to
1485be credited against the monetary obligations of the parcel owner
1486to the association. The association shall, upon request, provide
1487the tenant with written receipts for payments made. The
1488association shall mail written notice to the parcel owner of the
1489association's demand that the tenant pay monetary obligations to
1490the association.
1491     (b)  The tenant is not liable for increases in the amount
1492of the monetary obligations due unless the tenant was notified
1493in writing of the increase at least 10 days before the date on
1494which the rent is due. The tenant shall be given a credit
1495against rents due to the parcel owner in the amount of
1496assessments paid to the association.
1497     (c)  The association may issue notices under s. 83.56 and
1498may sue for eviction under ss. 83.59-83.625 as if the
1499association were a landlord under part II of chapter 83 if the
1500tenant fails to pay a monetary obligation. However, the
1501association is not otherwise considered a landlord under chapter
150283 and specifically has no obligations duties under s. 83.51.
1503     (d)  The tenant does not, by virtue of payment of monetary
1504obligations, have any of the rights of a parcel owner to vote in
1505any election or to examine the books and records of the
1506association.
1507     (e)  A court may supersede the effect of this subsection by
1508appointing a receiver.
1509     Section 17.  Section 720.309, Florida Statutes, is amended
1510to read:
1511     720.309  Agreements entered into by the association.-
1512     (1)  Any grant or reservation made by any document, and any
1513contract that has with a term greater than in excess of 10
1514years, that is made by an association before control of the
1515association is turned over to the members other than the
1516developer, and that provides which provide for the operation,
1517maintenance, or management of the association or common areas,
1518must be fair and reasonable.
1519     (2)  If the governing documents provide for the cost of
1520communication services as defined in s. 202.11, information
1521services, or Internet services obtained pursuant to a bulk
1522contract shall be deemed an operating expense of the
1523association. If the governing documents do not provide for such
1524services, the board may contract for the services and the cost
1525shall be deemed an operating expense of the association but must
1526be allocated on a per-parcel basis rather than a percentage
1527basis notwithstanding that the governing documents provide for
1528other than an equal sharing of operating expenses. Any contract
1529entered into before July 1, 2011, in which the cost of the
1530service is not equally divided among all parcel owners may be
1531changed by a majority of the voting interests present at a
1532regular or special meeting of the association in order to
1533allocate the cost equally among all parcels.
1534     (a)  Any contract entered into may be canceled by a
1535majority of the voting interests present at the next regular or
1536special meeting of the association, whichever occurs first. Any
1537member may make a motion to cancel such contract, but if no
1538motion is made or if such motion fails to obtain the required
1539vote, the contract shall be deemed ratified for the term
1540expressed therein.
1541     (b)  Any contract entered into must provide, and shall be
1542deemed to provide if not expressly set forth therein, that a
1543hearing-impaired or legally blind parcel owner who does not
1544occupy the parcel with a non-hearing-impaired or sighted person,
1545or any parcel owner receiving supplemental security income under
1546Title XVI of the Social Security Act or food stamps as
1547administered by the Department of Children and Family Services
1548pursuant to s. 414.31, may discontinue the service without
1549incurring disconnect fees, penalties, or subsequent service
1550charges, and may not be required to pay any operating expenses
1551charge related to such service for those parcels. If fewer than
1552all parcel owners share the expenses of the communication
1553services, information services, or Internet services, the
1554expense must be shared by all participating parcel owners. The
1555association may use the provisions of s. 720.3085 to enforce
1556payment by the parcel owners receiving such services.
1557     (c)  A resident of any parcel, whether a tenant or parcel
1558owner, may not be denied access to available franchised,
1559licensed, or certificated cable or video service providers if
1560the resident pays the provider directly for services. A resident
1561or cable or video service provider may not be required to pay
1562anything of value in order to obtain or provide such service
1563except for the charges normally paid for like services by
1564residents of single-family homes located outside the community
1565but within the same franchised, licensed, or certificated area,
1566and except for installation charges agreed to between the
1567resident and the service provider.
1568     Section 18.  This act shall take effect July 1, 2011.


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