Bill Text: FL H1317 | 2010 | Regular Session | Introduced


Bill Title: Community Associations

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Civil Justice & Courts Policy (CCJP), companion bill(s) passed, see CS/CS/CS/CS/HB 663 (Ch. 2010-176), CS/CS/CS/SB 1196 (Ch. 2010-174) [H1317 Detail]

Download: Florida-2010-H1317-Introduced.html
HB 1317
1
A bill to be entitled
2An act relating to community associations; creating s.
3627.714, F.S.; requiring that coverage under a unit
4owner's policy for certain assessments include at least a
5minimum amount of loss assessment coverage; requiring that
6every property insurance policy to an individual unit
7owner contain a specified provision; amending s. 633.0215,
8F.S.; providing an exemption for certain condominiums from
9installing a manual fire alarm system as required in the
10Life Safety Code if certain conditions are met; amending
11s. 718.110, F.S.; providing for the application of certain
12amendments to a declaration of condominium to certain unit
13owners; amending s. 718.111, F.S.; providing penalties for
14any person who knowingly or intentionally defaces or
15destroys certain records of an association with the intent
16to harm the association or any of its members; providing
17that an association is not responsible for the use or
18misuse of certain information obtained pursuant to state
19law requiring the maintenance of certain records of an
20association; providing an exception; providing that,
21notwithstanding the other requirements, certain records
22are not accessible to unit owners; requiring that any
23rules adopted for the purpose of setting forth accounting
24principles or addressing financial reporting requirements
25include certain provisions and standards; extending the
26deadline by which an association must mail a copy of its
27annual financial report; revising the ranges of annual
28revenue upon which certain requirements relating to an
29association's financial statements are based; amending s.
30718.112, F.S.; revising requirements for the reappointment
31of certain board members; revising board eligibility
32requirements; revising notice requirements for board
33candidates; establishing requirements for newly elected
34board members; providing that a director or officer
35delinquent in the payment of a fee, fine, regular
36assessment, or special assessment by more than a specified
37number of days is deemed to have abandoned the office;
38requiring that a director charged by information or
39indictment of certain offenses involving an association's
40funds or property be removed from office; amending s.
41718.115, F.S.; requiring that certain services obtained
42pursuant to a bulk contract as provided in the declaration
43be deemed a common expense; requiring that such contracts
44contain certain provisions; authorizing the cancellation
45of certain contracts; amending s. 718.116, F.S.; limiting
46the amount of certain costs to the unit owner; providing
47an exception; authorizing an association to demand future
48regular assessments related to the condominium unit under
49specified conditions; providing that the demand is
50continuing in nature; requiring that a tenant continue to
51pay assessments until the occurrence of specified events;
52requiring the delivery of notice of such demand; limiting
53the liability of a tenant; amending s. 718.303, F.S.;
54authorizing an association to suspend for a reasonable
55time the right of a unit owner or the unit's occupant,
56licensee, or invitee to use certain common elements under
57certain circumstances; excluding certain common elements
58from such authorization; prohibiting a fine from being
59levied or a suspension from being imposed unless the
60association meets certain notice requirements; providing
61circumstances under which such notice requirements do not
62apply; providing procedures and notice requirements for
63levying a fine or imposing a suspension; authorizing an
64association to suspend voting rights due to nonpayment of
65assessments, fines, or other charges delinquent by a
66specified number of days under certain circumstances;
67amending s. 718.103, F.S.; expanding the definition of
68"developer" to include a bulk assignee or bulk buyer;
69amending s. 718.301, F.S.; revising conditions under which
70unit owners other than the developer may elect not less
71than a majority of the members of the board of
72administration of an association; creating part VII of ch.
73718, F.S.; providing a short title; providing legislative
74findings and intent; defining the terms "bulk assignee"
75and "bulk buyer"; providing for the assignment of
76developer rights by a bulk assignee; specifying
77liabilities of bulk assignees and bulk buyers; providing
78exceptions; providing additional responsibilities of bulk
79assignees and bulk buyers; authorizing certain entities to
80assign developer rights to a bulk assignee; limiting the
81number of bulk assignees at any given time; providing for
82the transfer of control of a board of administration;
83providing effects of such transfer on parcels acquired by
84a bulk assignee; providing obligations of a bulk assignee
85upon the transfer of control of a board of administration;
86requiring that a bulk assignee certify certain information
87in writing; providing for the resolution of a conflict
88between specified provisions of state law; providing that
89the failure of a bulk assignee or bulk buyer to comply
90with specified provisions of state law results in the loss
91of certain protections and exemptions; requiring that a
92bulk assignee or bulk buyer file certain information with
93the Division of Florida Condominiums, Timeshares, and
94Mobile Homes of the Department of Business and
95Professional Regulation before offering any units for sale
96or lease in excess of a specified term; requiring that a
97copy of such information be provided to a prospective
98purchaser; requiring that certain contracts and disclosure
99statements contain specified statements; requiring that a
100bulk assignee or bulk buyer comply with certain disclosure
101requirements; prohibiting a bulk assignee from taking
102certain actions on behalf of an association while the bulk
103assignee is in control of the board of administration of
104the association and requiring that such bulk assignee
105comply with certain requirements; requiring that a bulk
106assignee or bulk buyer comply with certain requirements
107regarding certain contracts; providing unit owners with
108specified protections regarding certain contracts;
109requiring that a bulk buyer comply with certain
110requirements regarding the transfer of a unit; prohibiting
111a person from being classified as a bulk assignee or bulk
112buyer unless condominium parcels were acquired before a
113specified date; providing for the determination of the
114date of acquisition of a parcel; providing that the
115assignment of developer rights to a bulk assignee does not
116release a developer from certain liabilities; preserving
117certain liabilities for certain parties; amending s.
118719.108, F.S.; authorizing an association to recover
119charges incurred in connection with collecting a
120delinquent assessment up to a specified maximum amount;
121providing a prioritized list for disbursement of payments
122received by an association; providing for a lien by an
123association on a condominium unit for certain fees and
124costs; providing procedures and notice requirements for
125the filing of a lien by an association; authorizing an
126association to demand future regular assessments related
127to a unit under specified conditions; amending s. 720.304,
128F.S.; providing that a flagpole and any flagpole display
129are subject to certain codes and regulations; amending s.
130720.305, F.S.; authorizing the association to suspend
131certain rights under certain circumstances; providing that
132certain provisions regarding the suspension-of-use rights
133of an association do not apply to certain portions of
134common areas; providing procedures and notice requirements
135for levying a fine or imposing a suspension; amending s.
136720.3085, F.S.; authorizing an association to demand
137future regular assessments related to a parcel under
138specified conditions; amending s. 720.31, F.S.;
139authorizing an association to enter into certain
140agreements; requiring that certain items be stated and
141fully described in the declaration; limiting an
142association's power to enter into such agreements after a
143specified period following the recording of a declaration;
144requiring that certain agreements be approved by a
145specified percentage of voting interests of an association
146when the declaration is silent as to the authority of an
147association to enter into such agreement; authorizing an
148association to join with other associations or a master
149association under certain circumstances and for specified
150purposes; repealing s. 553.509(2), F.S., relating to
151public elevators and emergency operation plans in certain
152condominiums and multifamily dwellings; amending s.
153720.303, F.S.; revising provisions relating to homeowners'
154association board meetings, inspection and copying of
155records, and reserve accounts of budgets; prohibiting
156certain association personnel from receiving a salary or
157compensation; providing exceptions; amending s. 720.306,
158F.S.; providing requirements for secret ballots; creating
159s. 720.315, F.S.; prohibiting the board of directors of a
160homeowners' association from levying a special assessment
161before turnover of the association by the developer unless
162certain conditions are met; providing an effective date.
163
164Be It Enacted by the Legislature of the State of Florida:
165
166 Section 1. Section 627.714, Florida Statutes, is created
167to read:
168 627.714 Residential condominium unit owner coverage; loss
169assessment coverage required; excess coverage provision
170required.-For policies issued or renewed on or after July 1,
1712010, coverage under a unit owner's residential property policy
172shall include property loss assessment coverage of at least
173$2,000 for all assessments made as a result of the same direct
174loss to the property, regardless of the number of assessments,
175owned by all members of the association collectively when such
176loss is of the type of loss covered by the unit owner's
177residential property insurance policy, to which a deductible
178shall apply of no more than $250 per direct property loss. If a
179deductible was or will be applied to other property loss
180sustained by the unit owner resulting from the same direct loss
181to the property, no deductible shall apply to the loss
182assessment coverage. Every individual unit owner's residential
183property policy must contain a provision stating that the
184coverage afforded by such policy is excess coverage over the
185amount recoverable under any other policy covering the same
186property.
187 Section 2. Subsection (13) is added to section 633.0215,
188Florida Statutes, to read:
189 633.0215 Florida Fire Prevention Code.-
190 (13) A condominium that is one or two stories in height
191and has an exterior means of egress corridor is exempt from
192installing a manual fire alarm system as required in s. 9.6 of
193the most recent edition of the Life Safety Code adopted in the
194Florida Fire Prevention Code.
195 Section 3. Subsection (13) of section 718.110, Florida
196Statutes, is amended to read:
197 718.110 Amendment of declaration; correction of error or
198omission in declaration by circuit court.-
199 (13) Any amendment prohibiting restricting unit owners
200from renting their units or altering the duration of the rental
201term or the number of times unit owners are entitled to rent
202their units during a specified period owners' rights relating to
203the rental of units applies only to unit owners who consent to
204the amendment and unit owners who acquire title to purchase
205their units after the effective date of that amendment.
206 Section 4. Subsections (12) and (13) of section 718.111,
207Florida Statutes, are amended to read:
208 718.111 The association.-
209 (12) OFFICIAL RECORDS.-
210 (a) From the inception of the association, the association
211shall maintain each of the following items, when applicable,
212which shall constitute the official records of the association:
213 1. A copy of the plans, permits, warranties, and other
214items provided by the developer pursuant to s. 718.301(4).
215 2. A photocopy of the recorded declaration of condominium
216of each condominium operated by the association and of each
217amendment to each declaration.
218 3. A photocopy of the recorded bylaws of the association
219and of each amendment to the bylaws.
220 4. A certified copy of the articles of incorporation of
221the association, or other documents creating the association,
222and of each amendment thereto.
223 5. A copy of the current rules of the association.
224 6. A book or books which contain the minutes of all
225meetings of the association, of the board of administration, and
226of unit owners, which minutes shall be retained for a period of
227not less than 7 years.
228 7. A current roster of all unit owners and their mailing
229addresses, unit identifications, voting certifications, and, if
230known, telephone numbers. The association shall also maintain
231the electronic mailing addresses and the numbers designated by
232unit owners for receiving notice sent by electronic transmission
233of those unit owners consenting to receive notice by electronic
234transmission. The electronic mailing addresses and numbers
235provided by unit owners to receive notice by electronic
236transmission shall be removed from association records when
237consent to receive notice by electronic transmission is revoked.
238However, the association is not liable for an erroneous
239disclosure of the electronic mail address or the number for
240receiving electronic transmission of notices.
241 8. All current insurance policies of the association and
242condominiums operated by the association.
243 9. A current copy of any management agreement, lease, or
244other contract to which the association is a party or under
245which the association or the unit owners have an obligation or
246responsibility.
247 10. Bills of sale or transfer for all property owned by
248the association.
249 11. Accounting records for the association and separate
250accounting records for each condominium which the association
251operates. All accounting records shall be maintained for a
252period of not less than 7 years. Any person who knowingly or
253intentionally defaces or destroys accounting records required to
254be created and maintained by this chapter during the period for
255which such records are required to be maintained pursuant to
256this chapter, or who knowingly or intentionally fails to create
257or maintain accounting records required to be maintained by this
258chapter, with the intent of causing harm to the association or
259one or more of its members, is personally subject to a civil
260penalty pursuant to s. 718.501(1)(d). The accounting records
261shall include, but are not limited to:
262 a. Accurate, itemized, and detailed records of all
263receipts and expenditures.
264 b. A current account and a monthly, bimonthly, or
265quarterly statement of the account for each unit designating the
266name of the unit owner, the due date and amount of each
267assessment, the amount paid upon the account, and the balance
268due.
269 c. All audits, reviews, accounting statements, and
270financial reports of the association or condominium.
271 d. All contracts for work to be performed. Bids for work
272to be performed shall also be considered official records and
273shall be maintained by the association.
274 12. Ballots, sign-in sheets, voting proxies, and all other
275papers relating to voting by unit owners, which shall be
276maintained for a period of 1 year from the date of the election,
277vote, or meeting to which the document relates, notwithstanding
278paragraph (b).
279 13. All rental records, when the association is acting as
280agent for the rental of condominium units.
281 14. A copy of the current question and answer sheet as
282described by s. 718.504.
283 15. All other records of the association not specifically
284included in the foregoing which are related to the operation of
285the association.
286 16. A copy of the inspection report as provided for in s.
287718.301(4)(p).
288 (b) The official records of the association shall be
289maintained within the state for at least 7 years. The records of
290the association shall be made available to a unit owner within
29145 miles of the condominium property or within the county in
292which the condominium property is located within 5 working days
293after receipt of written request by the board or its designee.
294However, such distance requirement does not apply to an
295association governing a timeshare condominium. This paragraph
296may be complied with by having a copy of the official records of
297the association available for inspection or copying on the
298condominium property or association property, or the association
299may offer the option of making the records of the association
300available to a unit owner either electronically via the Internet
301or by allowing the records to be viewed in electronic format on
302a computer screen and printed upon request. The association is
303not responsible for the use or misuse of the information
304provided to an association member or his or her authorized
305representative pursuant to the compliance requirements of this
306chapter unless the association has an affirmative duty not to
307disclose such information pursuant to this chapter.
308 (c) The official records of the association are open to
309inspection by any association member or the authorized
310representative of such member at all reasonable times. The right
311to inspect the records includes the right to make or obtain
312copies, at the reasonable expense, if any, of the association
313member. The association may adopt reasonable rules regarding the
314frequency, time, location, notice, and manner of record
315inspections and copying. The failure of an association to
316provide the records within 10 working days after receipt of a
317written request shall create a rebuttable presumption that the
318association willfully failed to comply with this paragraph. A
319unit owner who is denied access to official records is entitled
320to the actual damages or minimum damages for the association's
321willful failure to comply with this paragraph. The minimum
322damages shall be $50 per calendar day up to 10 days, the
323calculation to begin on the 11th working day after receipt of
324the written request. The failure to permit inspection of the
325association records as provided herein entitles any person
326prevailing in an enforcement action to recover reasonable
327attorney's fees from the person in control of the records who,
328directly or indirectly, knowingly denied access to the records
329for inspection. Any person who knowingly or intentionally
330defaces or destroys accounting records that are required by this
331chapter to be maintained during the period for which such
332records are required to be maintained pursuant to this chapter,
333or who knowingly or intentionally fails to create or maintain
334accounting records that are required to be created or maintained
335by this chapter, with the intent of causing harm to the
336association or one or more of its members, is personally subject
337to a civil penalty pursuant to s. 718.501(1)(d). The association
338shall maintain an adequate number of copies of the declaration,
339articles of incorporation, bylaws, and rules, and all amendments
340to each of the foregoing, as well as the question and answer
341sheet provided for in s. 718.504 and year-end financial
342information required in this section, on the condominium
343property to ensure their availability to unit owners and
344prospective purchasers, and may charge its actual costs for
345preparing and furnishing these documents to those requesting the
346documents same. Notwithstanding the provisions of this
347paragraph, the following records shall not be accessible to unit
348owners:
349 1. Any record protected by the lawyer-client privilege as
350described in s. 90.502; and any record protected by the work-
351product privilege, including any record prepared by an
352association attorney or prepared at the attorney's express
353direction; which reflects a mental impression, conclusion,
354litigation strategy, or legal theory of the attorney or the
355association, and which was prepared exclusively for civil or
356criminal litigation or for adversarial administrative
357proceedings, or which was prepared in anticipation of imminent
358civil or criminal litigation or imminent adversarial
359administrative proceedings until the conclusion of the
360litigation or adversarial administrative proceedings.
361 2. Information obtained by an association in connection
362with the approval of the lease, sale, or other transfer of a
363unit.
364 3. Personnel records of association employees, including,
365but not limited to, disciplinary, payroll, health, and insurance
366records.
367 4.3. Medical records of unit owners.
368 5.4. Social security numbers, driver's license numbers,
369credit card numbers, e-mail addresses, telephone numbers,
370emergency contact information, any addresses of a unit owner
371other than as provided to fulfill the association's notice
372requirements, and other personal identifying information of any
373person, excluding the person's name, unit designation, mailing
374address, and property address.
375 6. Any electronic security measure that is used by the
376association to safeguard data, including passwords.
377 7. The software and operating system used by the
378association which allows manipulation of data, even if the owner
379owns a copy of the same software used by the association. The
380data is part of the official records of the association.
381 (13) FINANCIAL REPORTING.-Within 90 days after the end of
382the fiscal year, or annually on a date provided in the bylaws,
383the association shall prepare and complete, or contract for the
384preparation and completion of, a financial report for the
385preceding fiscal year. Within 21 days after the final financial
386report is completed by the association or received from the
387third party, but not later than 180 120 days after the end of
388the fiscal year or other date as provided in the bylaws, the
389association shall mail to each unit owner at the address last
390furnished to the association by the unit owner, or hand deliver
391to each unit owner, a copy of the financial report or a notice
392that a copy of the financial report will be mailed or hand
393delivered to the unit owner, without charge, upon receipt of a
394written request from the unit owner. The division shall adopt
395rules setting forth uniform accounting principles and standards
396to be used by all associations and shall adopt rules addressing
397financial reporting requirements for multicondominium
398associations. The rules shall include, but not be limited to,
399standards for presenting a summary of association reserves,
400including, but not limited to, a good faith estimate disclosing
401the annual amount of reserve funds that would be necessary for
402the association to fully fund reserves for each reserve item
403based on the straight-line accounting method. This disclosure is
404not applicable to reserves funded via the pooling method uniform
405accounting principles and standards for stating the disclosure
406of at least a summary of the reserves, including information as
407to whether such reserves are being funded at a level sufficient
408to prevent the need for a special assessment and, if not, the
409amount of assessments necessary to bring the reserves up to the
410level necessary to avoid a special assessment. The person
411preparing the financial reports shall be entitled to rely on an
412inspection report prepared for or provided to the association to
413meet the fiscal and fiduciary standards of this chapter. In
414adopting such rules, the division shall consider the number of
415members and annual revenues of an association. Financial reports
416shall be prepared as follows:
417 (a) An association that meets the criteria of this
418paragraph shall prepare or cause to be prepared a complete set
419of financial statements in accordance with generally accepted
420accounting principles. The financial statements shall be based
421upon the association's total annual revenues, as follows:
422 1. An association with total annual revenues of $400,000
423$100,000 or more, but less than $600,000 $200,000, shall prepare
424compiled financial statements.
425 2. An association with total annual revenues of at least
426$600,000 $200,000, but less than $800,000 $400,000, shall
427prepare reviewed financial statements.
428 3. An association with total annual revenues of $800,000
429$400,000 or more shall prepare audited financial statements.
430 (b)1. An association with total annual revenues of less
431than $400,000 $100,000 shall prepare a report of cash receipts
432and expenditures.
433 2. An association that which operates fewer less than 75
43450 units, regardless of the association's annual revenues, shall
435prepare a report of cash receipts and expenditures in lieu of
436financial statements required by paragraph (a).
437 3. A report of cash receipts and disbursements must
438disclose the amount of receipts by accounts and receipt
439classifications and the amount of expenses by accounts and
440expense classifications, including, but not limited to, the
441following, as applicable: costs for security, professional and
442management fees and expenses, taxes, costs for recreation
443facilities, expenses for refuse collection and utility services,
444expenses for lawn care, costs for building maintenance and
445repair, insurance costs, administration and salary expenses, and
446reserves accumulated and expended for capital expenditures,
447deferred maintenance, and any other category for which the
448association maintains reserves.
449 (c) An association may prepare or cause to be prepared,
450without a meeting of or approval by the unit owners:
451 1. Compiled, reviewed, or audited financial statements, if
452the association is required to prepare a report of cash receipts
453and expenditures;
454 2. Reviewed or audited financial statements, if the
455association is required to prepare compiled financial
456statements; or
457 3. Audited financial statements if the association is
458required to prepare reviewed financial statements.
459 (d) If approved by a majority of the voting interests
460present at a properly called meeting of the association, an
461association may prepare or cause to be prepared:
462 1. A report of cash receipts and expenditures in lieu of a
463compiled, reviewed, or audited financial statement;
464 2. A report of cash receipts and expenditures or a
465compiled financial statement in lieu of a reviewed or audited
466financial statement; or
467 3. A report of cash receipts and expenditures, a compiled
468financial statement, or a reviewed financial statement in lieu
469of an audited financial statement.
470
471Such meeting and approval must occur before prior to the end of
472the fiscal year and is effective only for the fiscal year in
473which the vote is taken, except that the approval also may be
474effective for the following fiscal year. With respect to an
475association to which the developer has not turned over control
476of the association, all unit owners, including the developer,
477may vote on issues related to the preparation of financial
478reports for the first 2 fiscal years of the association's
479operation, beginning with the fiscal year in which the
480declaration is recorded. Thereafter, all unit owners except the
481developer may vote on such issues until control is turned over
482to the association by the developer. Any audit or review
483prepared under this section shall be paid for by the developer
484if done prior to turnover of control of the association. An
485association may not waive the financial reporting requirements
486of this section for more than 3 consecutive years.
487 Section 5. Paragraphs (d), (n), and (o) of subsection (2)
488of section 718.112, Florida Statutes, are amended to read:
489 718.112 Bylaws.-
490 (2) REQUIRED PROVISIONS.-The bylaws shall provide for the
491following and, if they do not do so, shall be deemed to include
492the following:
493 (d) Unit owner meetings.-
494 1. There shall be an annual meeting of the unit owners
495held at the location provided in the association bylaws and, if
496the bylaws are silent as to the location, the meeting shall be
497held within 45 miles of the condominium property. However, such
498distance requirement does not apply to an association governing
499a timeshare condominium. Unless the bylaws provide otherwise, a
500vacancy on the board caused by the expiration of a director's
501term shall be filled by electing a new board member, and the
502election shall be by secret ballot; however, if the number of
503vacancies equals or exceeds the number of candidates, no
504election is required. The terms of all members of the board
505shall expire at the annual meeting and such board members may
506stand for reelection unless otherwise permitted by the bylaws.
507In the event that the bylaws permit staggered terms of no more
508than 2 years and upon approval of a majority of the total voting
509interests, the association board members may serve 2-year
510staggered terms. If the number no person is interested in or
511demonstrates an intention to run for the position of a board
512members member whose terms have term has expired according to
513the provisions of this subparagraph exceeds the number of
514eligible members showing interest in or demonstrating an
515intention to run for the vacant positions, each such board
516member whose term has expired shall become eligible for
517reappointment be automatically reappointed to the board of
518administration and need not stand for reelection. In a
519condominium association of more than 10 units, coowners of a
520unit may not serve as members of the board of directors at the
521same time unless they own more than one unit and are not co-
522occupants of a unit or unless there are not enough owners to
523fill the vacancies on the board. Any unit owner desiring to be a
524candidate for board membership shall comply with sub-
525subparagraph subparagraph 3.a. A person who has been suspended
526or removed by the division under this chapter, or who is
527delinquent in the payment of any fee, fine, or special or
528regular assessment as provided in paragraph (n), is not eligible
529for board membership. A person who has been convicted of any
530felony in this state or in a United States District or
531Territorial Court, or who has been convicted of any offense in
532another jurisdiction that would be considered a felony if
533committed in this state, is not eligible for board membership
534unless such felon's civil rights have been restored for a period
535of no less than 5 years as of the date on which such person
536seeks election to the board. The validity of an action by the
537board is not affected if it is later determined that a member of
538the board is ineligible for board membership due to having been
539convicted of a felony.
540 2. The bylaws shall provide the method of calling meetings
541of unit owners, including annual meetings. Written notice, which
542notice must include an agenda, shall be mailed, hand delivered,
543or electronically transmitted to each unit owner at least 14
544days prior to the annual meeting and shall be posted in a
545conspicuous place on the condominium property at least 14
546continuous days preceding the annual meeting. Upon notice to the
547unit owners, the board shall by duly adopted rule designate a
548specific location on the condominium property or association
549property upon which all notices of unit owner meetings shall be
550posted; however, if there is no condominium property or
551association property upon which notices can be posted, this
552requirement does not apply. In lieu of or in addition to the
553physical posting of notice of any meeting of the unit owners on
554the condominium property, the association may, by reasonable
555rule, adopt a procedure for conspicuously posting and repeatedly
556broadcasting the notice and the agenda on a closed-circuit cable
557television system serving the condominium association. However,
558if broadcast notice is used in lieu of a notice posted
559physically on the condominium property, the notice and agenda
560must be broadcast at least four times every broadcast hour of
561each day that a posted notice is otherwise required under this
562section. When broadcast notice is provided, the notice and
563agenda must be broadcast in a manner and for a sufficient
564continuous length of time so as to allow an average reader to
565observe the notice and read and comprehend the entire content of
566the notice and the agenda. Unless a unit owner waives in writing
567the right to receive notice of the annual meeting, such notice
568shall be hand delivered, mailed, or electronically transmitted
569to each unit owner. Notice for meetings and notice for all other
570purposes shall be mailed to each unit owner at the address last
571furnished to the association by the unit owner, or hand
572delivered to each unit owner. However, if a unit is owned by
573more than one person, the association shall provide notice, for
574meetings and all other purposes, to that one address which the
575developer initially identifies for that purpose and thereafter
576as one or more of the owners of the unit shall so advise the
577association in writing, or if no address is given or the owners
578of the unit do not agree, to the address provided on the deed of
579record. An officer of the association, or the manager or other
580person providing notice of the association meeting, shall
581provide an affidavit or United States Postal Service certificate
582of mailing, to be included in the official records of the
583association affirming that the notice was mailed or hand
584delivered, in accordance with this provision.
585 3.a. The members of the board shall be elected by written
586ballot or voting machine. Proxies shall in no event be used in
587electing the board, either in general elections or elections to
588fill vacancies caused by recall, resignation, or otherwise,
589unless otherwise provided in this chapter. Not less than 60 days
590before a scheduled election, the association shall mail,
591deliver, or electronically transmit, whether by separate
592association mailing or included in another association mailing,
593delivery, or transmission, including regularly published
594newsletters, to each unit owner entitled to a vote, a first
595notice of the date of the election along with a certification
596form provided by the division attesting that he or she has read
597and understands, to the best of his or her ability, the
598governing documents of the association and the provisions of
599this chapter and any applicable rules. Any unit owner or other
600eligible person desiring to be a candidate for the board must
601give written notice of his or her intent to be a candidate to
602the association not less than 40 days before a scheduled
603election. Together with the written notice and agenda as set
604forth in subparagraph 2., the association shall mail, deliver,
605or electronically transmit a second notice of the election to
606all unit owners entitled to vote therein, together with a ballot
607which shall list all candidates. Upon request of a candidate,
608the association shall include an information sheet, no larger
609than 8 1/2 inches by 11 inches, which must be furnished by the
610candidate not less than 35 days before the election, shall along
611with the signed certification form provided for in this
612subparagraph, to be included with the mailing, delivery, or
613transmission of the ballot, with the costs of mailing, delivery,
614or electronic transmission and copying to be borne by the
615association. The association is not liable for the contents of
616the information sheets prepared by the candidates. In order to
617reduce costs, the association may print or duplicate the
618information sheets on both sides of the paper. The division
619shall by rule establish voting procedures consistent with the
620provisions contained herein, including rules establishing
621procedures for giving notice by electronic transmission and
622rules providing for the secrecy of ballots. Elections shall be
623decided by a plurality of those ballots cast. There shall be no
624quorum requirement; however, at least 20 percent of the eligible
625voters must cast a ballot in order to have a valid election of
626members of the board. No unit owner shall permit any other
627person to vote his or her ballot, and any such ballots
628improperly cast shall be deemed invalid, provided any unit owner
629who violates this provision may be fined by the association in
630accordance with s. 718.303. A unit owner who needs assistance in
631casting the ballot for the reasons stated in s. 101.051 may
632obtain assistance in casting the ballot. The regular election
633shall occur on the date of the annual meeting. The provisions of
634this sub-subparagraph subparagraph shall not apply to timeshare
635condominium associations. Notwithstanding the provisions of this
636sub-subparagraph subparagraph, an election is not required
637unless more candidates file notices of intent to run or are
638nominated than board vacancies exist.
639 b. Within 90 days after being elected or appointed to the
640board, each newly elected or appointed director shall certify in
641writing to the secretary of the association that he or she has
642read the association's declaration of condominium, articles of
643incorporation, bylaws, and current written policies; that he or
644she will work to uphold such documents and policies to the best
645of his or her ability; and that he or she will faithfully
646discharge his or her fiduciary responsibility to the
647association's members. In lieu of this written certification,
648the newly elected or appointed director may submit a certificate
649of satisfactory completion of the educational curriculum
650administered by a division-approved condominium education
651provider. A director who fails to timely file the written
652certification or educational certificate is suspended from
653service on the board until he or she complies with the
654provisions of this subparagraph. The board may temporarily fill
655the vacancy during the period of suspension. The secretary shall
656cause the association to retain a director's written
657certification or educational certificate for inspection by the
658members for 5 years after a director's election. Failure to have
659such written certification or educational certificate on file
660does not affect the validity of any action.
661 4. Any approval by unit owners called for by this chapter
662or the applicable declaration or bylaws, including, but not
663limited to, the approval requirement in s. 718.111(8), shall be
664made at a duly noticed meeting of unit owners and shall be
665subject to all requirements of this chapter or the applicable
666condominium documents relating to unit owner decisionmaking,
667except that unit owners may take action by written agreement,
668without meetings, on matters for which action by written
669agreement without meetings is expressly allowed by the
670applicable bylaws or declaration or any statute that provides
671for such action.
672 5. Unit owners may waive notice of specific meetings if
673allowed by the applicable bylaws or declaration or any statute.
674If authorized by the bylaws, notice of meetings of the board of
675administration, unit owner meetings, except unit owner meetings
676called to recall board members under paragraph (j), and
677committee meetings may be given by electronic transmission to
678unit owners who consent to receive notice by electronic
679transmission.
680 6. Unit owners shall have the right to participate in
681meetings of unit owners with reference to all designated agenda
682items. However, the association may adopt reasonable rules
683governing the frequency, duration, and manner of unit owner
684participation.
685 7. Any unit owner may tape record or videotape a meeting
686of the unit owners subject to reasonable rules adopted by the
687division.
688 8. Unless otherwise provided in the bylaws, any vacancy
689occurring on the board before the expiration of a term may be
690filled by the affirmative vote of the majority of the remaining
691directors, even if the remaining directors constitute less than
692a quorum, or by the sole remaining director. In the alternative,
693a board may hold an election to fill the vacancy, in which case
694the election procedures must conform to the requirements of sub-
695subparagraph subparagraph 3.a. unless the association governs 10
696units or fewer less and has opted out of the statutory election
697process, in which case the bylaws of the association control.
698Unless otherwise provided in the bylaws, a board member
699appointed or elected under this section shall fill the vacancy
700for the unexpired term of the seat being filled. Filling
701vacancies created by recall is governed by paragraph (j) and
702rules adopted by the division.
703
704Notwithstanding subparagraph subparagraphs (b)2. and sub-
705subparagraph (d)3.a., an association of 10 or fewer units may,
706by the affirmative vote of a majority of the total voting
707interests, provide for different voting and election procedures
708in its bylaws, which vote may be by a proxy specifically
709delineating the different voting and election procedures. The
710different voting and election procedures may provide for
711elections to be conducted by limited or general proxy.
712 (n) Director or officer delinquencies.-A director or
713officer more than 90 days delinquent in the payment of any
714monetary obligation due the association regular assessments
715shall be deemed to have abandoned the office, creating a vacancy
716in the office to be filled according to law.
717 (o) Director or officer offenses.-A director or officer
718charged by information or indictment with a felony theft or
719embezzlement offense involving the association's funds or
720property shall be removed from office, creating a vacancy in the
721office to be filled according to law until the end of the period
722of the suspension or the end of the director's term of office,
723whichever occurs first. While such director or officer has such
724criminal charge pending, he or she may not be appointed or
725elected to a position as a director or officer. However, should
726the charges be resolved without a finding of guilt, the director
727or officer shall be reinstated for the remainder of his or her
728term of office, if any.
729 Section 6. Paragraph (d) of subsection (1) of section
730718.115, Florida Statutes, is amended to read:
731 718.115 Common expenses and common surplus.-
732 (1)
733 (d) If so provided in the declaration, the cost of
734communications services as defined in chapter 202, information
735services, or Internet services a master antenna television
736system or duly franchised cable television service obtained
737pursuant to a bulk contract shall be deemed a common expense. If
738the declaration does not provide for the cost of communications
739services as defined in chapter 202, information services, or
740Internet services a master antenna television system or duly
741franchised cable television service obtained under a bulk
742contract as a common expense, the board may enter into such a
743contract, and the cost of the service will be a common expense
744but allocated on a per-unit basis rather than a percentage basis
745if the declaration provides for other than an equal sharing of
746common expenses, and any contract entered into before July 1,
7471998, in which the cost of the service is not equally divided
748among all unit owners, may be changed by vote of a majority of
749the voting interests present at a regular or special meeting of
750the association, to allocate the cost equally among all units.
751The contract shall be for a term of not less than 2 years.
752 1. Any contract made by the board after the effective date
753hereof for communications services as defined in chapter 202,
754information services, or Internet services a community antenna
755system or duly franchised cable television service may be
756canceled by a majority of the voting interests present at the
757next regular or special meeting of the association. Any member
758may make a motion to cancel the said contract, but if no motion
759is made or if such motion fails to obtain the required majority
760at the next regular or special meeting, whichever occurs is
761sooner, following the making of the contract, then such contract
762shall be deemed ratified for the term therein expressed.
763 2. Any such contract shall provide, and shall be deemed to
764provide if not expressly set forth, that any hearing-impaired or
765legally blind unit owner who does not occupy the unit with a
766non-hearing-impaired or sighted person, or any unit owner
767receiving supplemental security income under Title XVI of the
768Social Security Act or food stamps as administered by the
769Department of Children and Family Services pursuant to s.
770414.31, may discontinue the cable or video service without
771incurring disconnect fees, penalties, or subsequent service
772charges, and, as to such units, the owners shall not be required
773to pay any common expenses charge related to such service. If
774fewer less than all members of an association share the expenses
775of cable or video service television, the expense shall be
776shared equally by all participating unit owners. The association
777may use the provisions of s. 718.116 to enforce payment of the
778shares of such costs by the unit owners receiving cable or video
779service television.
780 Section 7. Paragraph (b) of subsection (5) of section
781718.116, Florida Statutes, is amended, and subsection (11) is
782added to that section, to read:
783 718.116 Assessments; liability; lien and priority;
784interest; collection.-
785 (5)
786 (b) To be valid, a claim of lien must state the
787description of the condominium parcel, the name of the record
788owner, the name and address of the association, the amount due,
789and the due dates. It must be executed and acknowledged by an
790officer or authorized agent of the association. No such lien
791shall be effective longer than 1 year after the claim of lien
792was recorded unless, within that time, an action to enforce the
793lien is commenced. The 1-year period shall automatically be
794extended for any length of time during which the association is
795prevented from filing a foreclosure action by an automatic stay
796resulting from a bankruptcy petition filed by the parcel owner
797or any other person claiming an interest in the parcel. The
798claim of lien shall secure all unpaid assessments which are due
799and which may accrue subsequent to the recording of the claim of
800lien and before prior to the entry of a certificate of title, as
801well as interest and all reasonable costs and attorney's fees
802incurred by the association incident to the collection process.
803Costs to the unit owner secured by the association's claim of
804lien with regard to collection letters or any other collection
805efforts by management companies or licensed managers as to any
806delinquent installment of an assessment may not exceed $75
807unless the management company prepares any letter or estoppel
808certificate required by this chapter and charges a reasonable
809fee related to the preparation of such letter or estoppel
810certificate. Upon payment in full, the person making the payment
811is entitled to a satisfaction of the lien.
812
813After notice of contest of lien has been recorded, the clerk of
814the circuit court shall mail a copy of the recorded notice to
815the association by certified mail, return receipt requested, at
816the address shown in the claim of lien or most recent amendment
817to it and shall certify to the service on the face of the
818notice. Service is complete upon mailing. After service, the
819association has 90 days in which to file an action to enforce
820the lien; and, if the action is not filed within the 90-day
821period, the lien is void. However, the 90-day period shall be
822extended for any length of time that the association is
823prevented from filing its action because of an automatic stay
824resulting from the filing of a bankruptcy petition by the unit
825owner or by any other person claiming an interest in the parcel.
826 (11) If the unit is occupied by a tenant and the unit
827owner is delinquent in the payment of any monetary obligation
828due to the association, the association may demand that the
829tenant pay to the association the future monetary obligations
830related to the condominium unit. The demand is continuing in
831nature, and upon demand, the tenant shall continue to pay the
832monetary obligations to the association until the association
833releases the tenant or the tenant discontinues tenancy in the
834unit. The association shall mail written notice to the unit
835owner of the association's demand that the tenant make payments
836to the association. The tenant is not liable for increases in
837the amount of the monetary obligations due unless the tenant was
838reasonably notified of the increase before the day on which the
839rent is due. The liability of the tenant may not exceed the
840amount due from the tenant to the tenant's landlord. The
841tenant's landlord shall provide the tenant a credit against
842rents due to the unit owner in the amount of monies paid to the
843association under this section. The association shall, upon
844request, provide the tenant with written receipts for payments
845made. The association may issue notices under s. 83.56 and may
846sue for eviction under ss. 83.59-83.625 as if the association
847were a landlord under part II of chapter 83 if the tenant fails
848to pay a required assessment to the association. However, the
849association is not otherwise considered a landlord under chapter
85083 and specifically has no duties under s. 83.51. The tenant
851does not, by virtue of payment of monetary obligations to the
852association, have any of the rights of a unit owner to vote in
853any election or to examine the books and records of the
854association. A court may supersede the effect of this subsection
855by appointing a receiver.
856 Section 8. Section 718.303, Florida Statutes, is amended
857to read:
858 718.303 Obligations of owners and occupants; waiver; levy
859of fines, suspension of use or voting rights, and other
860nonexclusive remedies in law or equity fine against unit by an
861association.-
862 (1) Each unit owner, each tenant and other invitee, and
863each association shall be governed by, and shall comply with the
864provisions of, this chapter, the declaration, the documents
865creating the association, and the association bylaws and the
866provisions thereof shall be deemed expressly incorporated into
867any lease of a unit. Actions for damages or for injunctive
868relief, or both, for failure to comply with these provisions may
869be brought by the association or by a unit owner against:
870 (a) The association.
871 (b) A unit owner.
872 (c) Directors designated by the developer, for actions
873taken by them prior to the time control of the association is
874assumed by unit owners other than the developer.
875 (d) Any director who willfully and knowingly fails to
876comply with these provisions.
877 (e) Any tenant leasing a unit, and any other invitee
878occupying a unit.
879
880The prevailing party in any such action or in any action in
881which the purchaser claims a right of voidability based upon
882contractual provisions as required in s. 718.503(1)(a) is
883entitled to recover reasonable attorney's fees. A unit owner
884prevailing in an action between the association and the unit
885owner under this section, in addition to recovering his or her
886reasonable attorney's fees, may recover additional amounts as
887determined by the court to be necessary to reimburse the unit
888owner for his or her share of assessments levied by the
889association to fund its expenses of the litigation. This relief
890does not exclude other remedies provided by law. Actions arising
891under this subsection shall not be deemed to be actions for
892specific performance.
893 (2) A provision of this chapter may not be waived if the
894waiver would adversely affect the rights of a unit owner or the
895purpose of the provision, except that unit owners or members of
896a board of administration may waive notice of specific meetings
897in writing if provided by the bylaws. Any instruction given in
898writing by a unit owner or purchaser to an escrow agent may be
899relied upon by an escrow agent, whether or not such instruction
900and the payment of funds thereunder might constitute a waiver of
901any provision of this chapter.
902 (3) If a unit owner is delinquent for more than 90 days in
903the payment of a monetary obligation due to the association or
904if the declaration or bylaws so provide, the association may
905suspend, for a reasonable time, the right of a unit owner or a
906unit's occupant, licensee, or invitee to use common elements,
907common facilities, or any other association property. This
908subsection does not apply to limited common elements intended to
909be used only by that unit, common elements that must be used to
910access the unit, utility services provided to the unit, parking
911spaces, or elevators. The association may also levy reasonable
912fines against a unit for the failure of the owner of the unit,
913or its occupant, licensee, or invitee, to comply with any
914provision of the declaration, the association bylaws, or
915reasonable rules of the association. No fine will become a lien
916against a unit. A No fine may not exceed $100 per violation.
917However, a fine may be levied on the basis of each day of a
918continuing violation, with a single notice and opportunity for
919hearing, provided that no such fine shall in the aggregate
920exceed $1,000. A No fine may not be levied and a suspension may
921not be imposed unless the association first gives except after
922giving reasonable notice and opportunity for a hearing to the
923unit owner and, if applicable, its occupant, licensee, or
924invitee. The hearing must be held before a committee of other
925unit owners who are neither board members nor persons residing
926in a board member's household. If the committee does not agree
927with the fine or suspension, the fine or suspension may not be
928levied or imposed. The provisions of this subsection do not
929apply to unoccupied units.
930 (4) The notice and hearing requirements of subsection (3)
931do not apply to the imposition of suspensions or fines against a
932unit owner or a unit's occupant, licensee, or invitee because of
933the failure to pay any amounts due the association. If such a
934fine or suspension is imposed, the association must levy the
935fine or impose a reasonable suspension at a properly noticed
936board meeting, and after the imposition of such fine or
937suspension, the association must notify the unit owner and, if
938applicable, the unit's occupant, licensee, or invitee by mail or
939hand delivery.
940 (5) An association may also suspend the voting rights of a
941member due to nonpayment of any monetary obligation due to the
942association which is delinquent in excess of 90 days.
943 Section 9. Subsection (16) of section 718.103, Florida
944Statutes, is amended to read:
945 718.103 Definitions.-As used in this chapter, the term:
946 (16) "Developer" means a person who creates a condominium
947or offers condominium parcels for sale or lease in the ordinary
948course of business, but does not include:
949 (a) An owner or lessee of a condominium or cooperative
950unit who has acquired the unit for his or her own occupancy;,
951nor does it include
952 (b) A cooperative association that which creates a
953condominium by conversion of an existing residential cooperative
954after control of the association has been transferred to the
955unit owners if, following the conversion, the unit owners will
956be the same persons who were unit owners of the cooperative and
957no units are offered for sale or lease to the public as part of
958the plan of conversion;.
959 (c) A bulk assignee or bulk buyer as defined in s.
960718.703; or
961 (d) A state, county, or municipal entity is not a
962developer for any purposes under this act when it is acting as a
963lessor and not otherwise named as a developer in the declaration
964of condominium association.
965 Section 10. Subsection (1) of section 718.301, Florida
966Statutes, is amended to read:
967 718.301 Transfer of association control; claims of defect
968by association.-
969 (1) When unit owners other than the developer own 15
970percent or more of the units in a condominium that will be
971operated ultimately by an association, the unit owners other
972than the developer shall be entitled to elect no less than one-
973third of the members of the board of administration of the
974association. Unit owners other than the developer are entitled
975to elect not less than a majority of the members of the board of
976administration of an association:
977 (a) Three years after 50 percent of the units that will be
978operated ultimately by the association have been conveyed to
979purchasers;
980 (b) Three months after 90 percent of the units that will
981be operated ultimately by the association have been conveyed to
982purchasers;
983 (c) When all the units that will be operated ultimately by
984the association have been completed, some of them have been
985conveyed to purchasers, and none of the others are being offered
986for sale by the developer in the ordinary course of business;
987 (d) When some of the units have been conveyed to
988purchasers and none of the others are being constructed or
989offered for sale by the developer in the ordinary course of
990business;
991 (e) When the developer files a petition seeking protection
992in bankruptcy;
993 (f) When a receiver for the developer is appointed by a
994circuit court and is not discharged within 30 days after such
995appointment, unless the court determines within 30 days after
996appointment of the receiver that transfer of control would be
997detrimental to the association or its members; or
998 (g) Seven years after recordation of the declaration of
999condominium; or, in the case of an association which may
1000ultimately operate more than one condominium, 7 years after
1001recordation of the declaration for the first condominium it
1002operates; or, in the case of an association operating a phase
1003condominium created pursuant to s. 718.403, 7 years after
1004recordation of the declaration creating the initial phase,
1005whichever occurs first. The developer is entitled to elect at
1006least one member of the board of administration of an
1007association as long as the developer holds for sale in the
1008ordinary course of business at least 5 percent, in condominiums
1009with fewer than 500 units, and 2 percent, in condominiums with
1010more than 500 units, of the units in a condominium operated by
1011the association. Following the time the developer relinquishes
1012control of the association, the developer may exercise the right
1013to vote any developer-owned units in the same manner as any
1014other unit owner except for purposes of reacquiring control of
1015the association or selecting the majority members of the board
1016of administration.
1017 Section 11. Part VII of chapter 718, Florida Statutes,
1018consisting of sections 718.701, 718.702, 718.703, 718.704,
1019718.705, 718.706, 718.707, and 718.708, is created to read:
1020 718.701 Short title.-This part may be cited as the
1021"Distressed Condominium Relief Act."
1022 718.702 Legislative intent.-
1023 (1) The Legislature acknowledges the massive downturn in
1024the condominium market which has transpired throughout the state
1025and the impact of such downturn on developers, lenders, unit
1026owners, and condominium associations. Numerous condominium
1027projects have either failed or are in the process of failing,
1028whereby the condominium has a small percentage of third-party
1029unit owners as compared to the unsold inventory of units. As a
1030result of the inability to find purchasers for this inventory of
1031units, which results in part from the devaluing of real estate
1032in this state, developers are unable to satisfy the requirements
1033of their lenders, leading to defaults on mortgages.
1034Consequently, lenders are faced with the task of finding a
1035solution to the problem in order to be paid for their
1036investments.
1037 (2) The Legislature recognizes that all of the factors
1038listed in this section lead to condominiums becoming distressed,
1039resulting in detriment to the unit owners and the condominium
1040association on account of the resulting shortage of assessment
1041moneys available to support the financial requirements for
1042proper maintenance of the condominium. Such shortage and the
1043resulting lack of proper maintenance further erodes property
1044values. The Legislature finds that individuals and entities
1045within Florida and in other states have expressed interest in
1046purchasing unsold inventory in one or more condominium projects,
1047but are reticent to do so because of accompanying liabilities
1048inherited from the original developer, which are by definition
1049imputed to the successor purchaser, including a foreclosing
1050mortgagee. This results in the potential purchaser having
1051unknown and unquantifiable risks, and potential successor
1052purchasers are unwilling to accept such risks. The result is
1053that condominium projects stagnate, leaving all parties involved
1054at an impasse without the ability to find a solution.
1055 (3) The Legislature finds and declares that it is the
1056public policy of this state to protect the interests of
1057developers, lenders, unit owners, and condominium associations
1058with regard to distressed condominiums, and that there is a need
1059for relief from certain provisions of the Florida Condominium
1060Act geared toward enabling economic opportunities within these
1061condominiums for successor purchasers, including foreclosing
1062mortgagees. Such relief would benefit existing unit owners and
1063condominium associations. The Legislature further finds and
1064declares that this situation cannot be open-ended without
1065potentially prejudicing the rights of unit owners and
1066condominium associations, and thereby declares that the
1067provisions of this part shall be used by purchasers of
1068condominium inventory for a specific and defined period.
1069 718.703 Definitions.-As used in this part, the term:
1070 (1) "Bulk assignee" means a person who:
1071 (a) Acquires more than seven condominium parcels as set
1072forth in s. 718.707; and
1073 (b) Receives an assignment of some or all of the rights of
1074the developer as are set forth in the declaration of condominium
1075or in this chapter by a written instrument recorded as an
1076exhibit to the deed or as a separate instrument in the public
1077records of the county in which the condominium is located.
1078 (2) "Bulk buyer" means a person who acquires more than
1079seven condominium parcels as set forth in s. 718.707 but who
1080does not receive an assignment of any developer rights other
1081than the right to conduct sales, leasing, and marketing
1082activities within the condominium.
1083 718.704 Assignment and assumption of developer rights by
1084bulk assignee; bulk buyer.-
1085 (1) A bulk assignee shall be deemed to have assumed and is
1086liable for all duties and responsibilities of the developer
1087under the declaration and this chapter, except:
1088 (a) Warranties of the developer under s. 718.203(1) or s.
1089718.618, except for design, construction, development, or repair
1090work performed by or on behalf of such bulk assignee;
1091 (b) The obligation to:
1092 1. Fund converter reserves under s. 718.618 for a unit
1093that was not acquired by the bulk assignee; or
1094 2. Provide converter warranties on any portion of the
1095condominium property except as may be expressly provided by the
1096bulk assignee in the contract for purchase and sale executed
1097with a purchaser and pertaining to any design, construction,
1098development, or repair work performed by or on behalf of the
1099bulk assignee;
1100 (c) The requirement to provide the association with a
1101cumulative audit of the association's finances from the date of
1102formation of the condominium association as required by s.
1103718.301. However, the bulk assignee shall provide an audit for
1104the period for which the bulk assignee elects a majority of the
1105members of the board of administration;
1106 (d) Any liability arising out of or in connection with
1107actions taken by the board of administration or the developer-
1108appointed directors before the bulk assignee elects a majority
1109of the members of the board of administration; and
1110 (e) Any liability for or arising out of the developer's
1111failure to fund previous assessments or to resolve budgetary
1112deficits in relation to a developer's right to guarantee
1113assessments, except as otherwise provided in subsection (2).
1114
1115Further, the bulk assignee is responsible for delivering
1116documents and materials in accordance with s. 718.705(3). A bulk
1117assignee may expressly assume some or all of the obligations of
1118the developer described in paragraphs (a)-(e).
1119 (2) A bulk assignee receiving the assignment of the rights
1120of the developer to guarantee the level of assessments and fund
1121budgetary deficits pursuant to s. 718.116 shall be deemed to
1122have assumed and is liable for all obligations of the developer
1123with respect to such guarantee, including any applicable funding
1124of reserves to the extent required by law, for as long as the
1125guarantee remains in effect. A bulk assignee not receiving an
1126assignment of the right of the developer to guarantee the level
1127of assessments and fund budgetary deficits pursuant to s.
1128718.116 or a bulk buyer is not deemed to have assumed and is not
1129liable for the obligations of the developer with respect to such
1130guarantee, but is responsible for payment of assessments in the
1131same manner as all other owners of condominium parcels.
1132 (3) A bulk buyer is liable for the duties and
1133responsibilities of the developer under the declaration and this
1134chapter only to the extent provided in this part, together with
1135any other duties or responsibilities of the developer expressly
1136assumed in writing by the bulk buyer.
1137 (4) An acquirer of condominium parcels is not considered a
1138bulk assignee or a bulk buyer if the transfer to such acquirer
1139was made before the effective date of this part with the intent
1140to hinder, delay, or defraud any purchaser, unit owner, or the
1141association, or if the acquirer is a person who would constitute
1142an insider under s. 726.102(7).
1143 (5) An assignment of developer rights to a bulk assignee
1144may be made by the developer, a previous bulk assignee, or a
1145court of competent jurisdiction acting on behalf of the
1146developer or the previous bulk assignee. At any particular time,
1147there may be no more than one bulk assignee within a
1148condominium, but there may be more than one bulk buyer. If more
1149than one acquirer of condominium parcels in the same condominium
1150receives an assignment of developer rights from the same person,
1151the bulk assignee is the acquirer whose instrument of assignment
1152is recorded first in applicable public records.
1153 718.705 Board of administration; transfer of control.-
1154 (1) For purposes of determining the timing for transfer of
1155control of the board of administration of the association to
1156unit owners other than the developer under s. 718.301(1)(a) and
1157(b), if a bulk assignee is entitled to elect a majority of the
1158members of the board, a condominium parcel acquired by the bulk
1159assignee shall not be deemed to be conveyed to a purchaser, or
1160to be owned by an owner other than the developer, until such
1161condominium parcel is conveyed to an owner who is not a bulk
1162assignee.
1163 (2) Unless control of the board of administration of the
1164association has already been relinquished pursuant to s.
1165718.301(1), the bulk assignee is obligated to relinquish control
1166of the association in accordance with s. 718.301 and this part,
1167as if the bulk assignee were the developer.
1168 (3) When a bulk assignee relinquishes control of the board
1169of administration as set forth in s. 718.301, the bulk assignee
1170shall deliver all of those items required by s. 718.301(4).
1171However, the bulk assignee is not required to deliver items and
1172documents not in the possession of the bulk assignee during the
1173period during which the bulk assignee was entitled to elect not
1174less than a majority of the members of the board of
1175administration. In conjunction with acquisition of condominium
1176parcels, a bulk assignee shall undertake a good faith effort to
1177obtain the documents and materials required to be provided to
1178the association pursuant to s. 718.301(4). To the extent the
1179bulk assignee is not able to obtain all of such documents and
1180materials, the bulk assignee shall certify in writing to the
1181association the names or descriptions of the documents and
1182materials that were not obtainable by the bulk assignee.
1183Delivery of the certificate relieves the bulk assignee of
1184responsibility for the delivery of the documents and materials
1185referenced in the certificate as otherwise required under ss.
1186718.112 and 718.301 and this part. The responsibility of the
1187bulk assignee for the audit required by s. 718.301(4) shall
1188commence as of the date on which the bulk assignee elected a
1189majority of the members of the board of administration.
1190 (4) If a conflict arises between the provisions or
1191application of this section and s. 718.301, this section shall
1192prevail.
1193 (5) Failure of a bulk assignee or bulk buyer to
1194substantially comply with all the requirements contained in this
1195part shall result in the loss of any and all protections or
1196exemptions provided under this part.
1197 718.706 Specific provisions pertaining to offering of
1198units by a bulk assignee or bulk buyer.-
1199 (1) Before offering any units for sale or for lease for a
1200term exceeding 5 years, a bulk assignee or a bulk buyer shall
1201file the following documents with the division and provide such
1202documents to a prospective purchaser or tenant:
1203 (a) An updated prospectus or offering circular, or a
1204supplement to the prospectus or offering circular, filed by the
1205creating developer prepared in accordance with s. 718.504, which
1206shall include the form of contract for purchase and sale in
1207compliance with s. 718.503(2);
1208 (b) An updated Frequently Asked Questions and Answers
1209sheet;
1210 (c) The executed escrow agreement if required under s.
1211718.202; and
1212 (d) The financial information required by s. 718.111(13).
1213However, if a financial information report does not exist for
1214the fiscal year before acquisition of title by the bulk assignee
1215or bulk buyer, or accounting records cannot be obtained in good
1216faith by the bulk assignee or the bulk buyer which would permit
1217preparation of the required financial information report, the
1218bulk assignee or bulk buyer is excused from the requirement of
1219this paragraph. However, the bulk assignee or bulk buyer must
1220include in the purchase contract the following statement in
1221conspicuous type:
1222THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
1223718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR
1224OF THE ASSOCIATION IS NOT AVAILABLE OR CANNOT BE
1225CREATED BY THE SELLER AS A RESULT OF INSUFFICIENT
1226ACCOUNTING RECORDS OF THE ASSOCIATION.
1227 (2) Before offering any units for sale or for lease for a
1228term exceeding 5 years, a bulk assignee shall file with the
1229division and provide to a prospective purchaser a disclosure
1230statement that must include, but is not limited to:
1231 (a) A description of any rights of the developer which
1232have been assigned to the bulk assignee;
1233 (b) The following statement in conspicuous type:
1234THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
1235DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS
1236APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION,
1237DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
1238OF SELLER; and
1239 (c) If the condominium is a conversion subject to part VI,
1240the following statement in conspicuous type:
1241THE SELLER HAS NO OBLIGATION TO FUND CONVERTER
1242RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S.
1243718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY
1244EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN
1245THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE
1246SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO
1247ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK
1248PERFORMED BY OR ON BEHALF OF THE SELLER.
1249 (3) In addition to the requirements set forth in
1250subsection (1), a bulk assignee or bulk buyer must comply with
1251the nondeveloper disclosure requirements set forth in s.
1252718.503(2) before offering any units for sale or for lease for a
1253term exceeding 5 years.
1254 (4) A bulk assignee, while it is in control of the board
1255of administration of the association, may not authorize, on
1256behalf of the association:
1257 (a) The waiver of reserves or the reduction of funding of
1258the reserves in accordance with s. 718.112(2)(f)2., unless
1259approved by a majority of the voting interests not controlled by
1260the developer, bulk assignee, and bulk buyer; or
1261 (b) The use of reserve expenditures for other purposes in
1262accordance with s. 718.112(2)(f)3., unless approved by a
1263majority of the voting interests not controlled by the
1264developer, bulk assignee, and bulk buyer.
1265 (5) A bulk assignee or a bulk buyer shall comply with all
1266the requirements of s. 718.302 regarding any contracts entered
1267into by the association during the period the bulk assignee or
1268bulk buyer maintains control of the board of administration.
1269Unit owners shall be afforded all the protections contained in
1270s. 718.302 regarding agreements entered into by the association
1271before unit owners other than the developer, bulk assignee, or
1272bulk buyer elected a majority of the board of administration.
1273 (6) A bulk buyer shall comply with the requirements
1274contained in the declaration regarding any transfer of a unit,
1275including sales, leases, and subleases. A bulk buyer is not
1276entitled to any exemptions afforded a developer or successor
1277developer under this chapter regarding any transfer of a unit,
1278including sales, leases, or subleases.
1279 718.707 Time limitation for classification as bulk
1280assignee or bulk buyer.-A person acquiring condominium parcels
1281may not be classified as a bulk assignee or bulk buyer unless
1282the condominium parcels were acquired before July 1, 2012. The
1283date of such acquisition shall be determined by the date of
1284recording of a deed or other instrument of conveyance for such
1285parcels in the public records of the county in which the
1286condominium is located, or by the date of issuance of a
1287certificate of title in a foreclosure proceeding with respect to
1288such condominium parcels.
1289 718.708 Liability of developers and others.-An assignment
1290of developer rights to a bulk assignee or bulk buyer does not
1291release the creating developer from any liabilities under the
1292declaration or this chapter. This part does not limit the
1293liability of the creating developer for claims brought by unit
1294owners, bulk assignees, or bulk buyers for violations of this
1295chapter by the creating developer, unless specifically excluded
1296in this part. Nothing contained within this part waives,
1297releases, compromises, or limits the liability of contractors,
1298subcontractors, materialmen, manufacturers, architects,
1299engineers, or any participant in the design or construction of a
1300condominium for any claim brought by an association, unit
1301owners, bulk assignees, or bulk buyers arising from the design
1302of the condominium, construction defects, misrepresentations
1303associated with condominium property, or violations of this
1304chapter, unless specifically excluded in this part.
1305 Section 12. Subsections (3) and (4) of section 719.108,
1306Florida Statutes, are amended, and subsection (10) is added to
1307that section, to read:
1308 719.108 Rents and assessments; liability; lien and
1309priority; interest; collection; cooperative ownership.-
1310 (3) Rents and assessments, and installments on them, not
1311paid when due bear interest at the rate provided in the
1312cooperative documents from the date due until paid. This rate
1313may not exceed the rate allowed by law, and, if no rate is
1314provided in the cooperative documents, then interest shall
1315accrue at 18 percent per annum. Also, if the cooperative
1316documents or bylaws so provide, the association may charge an
1317administrative late fee in addition to such interest, in an
1318amount not to exceed the greater of $25 or 5 percent of each
1319installment of the assessment for each delinquent installment
1320that the payment is late. Costs to the unit owner secured by the
1321association's claim of lien with regard to collection letters or
1322any other collection efforts by management companies or licensed
1323managers as to any delinquent installment of an assessment may
1324not exceed $75 unless the management company prepares any letter
1325or estoppel certificate required by this chapter and charges a
1326reasonable fee related to the preparation of such letter or
1327estoppel certificate. Any payment received by an association
1328shall be applied first to any interest accrued by the
1329association, then to any administrative late fee, then to any
1330costs and reasonable attorney's fees incurred in collection,
1331then to any reasonable costs for collection services for which
1332the association has contracted, and then to the delinquent
1333assessment. The foregoing shall be applicable notwithstanding
1334any restrictive endorsement, designation, or instruction placed
1335on or accompanying a payment. A late fee is not subject to
1336chapter 687 or s. 719.303(3).
1337 (4) The association shall have a lien on each cooperative
1338parcel for any unpaid rents and assessments, plus interest, any
1339authorized administrative late fees, and any reasonable costs
1340for collection services for which the association has contracted
1341against the unit owner of the cooperative parcel. If authorized
1342by the cooperative documents, said lien shall also secure
1343reasonable attorney's fees incurred by the association incident
1344to the collection of the rents and assessments or enforcement of
1345such lien. The lien is effective from and after the recording of
1346a claim of lien in the public records in the county in which the
1347cooperative parcel is located which states the description of
1348the cooperative parcel, the name of the unit owner, the amount
1349due, and the due dates. The lien shall expire if a claim of lien
1350is not filed within 1 year after the date the assessment was
1351due, and no such lien shall continue for a longer period than 1
1352year after the claim of lien has been recorded unless, within
1353that time, an action to enforce the lien is commenced in a court
1354of competent jurisdiction. Except as otherwise provided in this
1355chapter, a lien may not be filed by the association against a
1356cooperative parcel until 30 days after the date on which a
1357notice of intent to file a lien has been delivered to the owner
1358by registered or certified mail, return receipt requested, and
1359by first-class United States mail to the owner at his or her
1360last address in the records of the association, if the address
1361is within the United States, and delivered to the owner at the
1362address of the unit if the owner's address as reflected in the
1363records of the association is not the unit address. If the
1364address in the records is outside the United States, notice
1365shall be sent to that address and to the unit address by first-
1366class United States mail. Delivery of the notice shall be deemed
1367given upon mailing as required by this subsection. No lien may
1368be filed by the association against a cooperative parcel until
136930 days after the date on which a notice of intent to file a
1370lien has been served on the unit owner of the cooperative parcel
1371by certified mail or by personal service in the manner
1372authorized by chapter 48 and the Florida Rules of Civil
1373Procedure.
1374 (10) If the share is occupied by a tenant and the share
1375owner is delinquent in the payment of regular assessments, the
1376association may demand that the tenant pay to the association
1377the future regular assessments related to the condominium share.
1378The demand is continuing in nature, and upon demand, the tenant
1379shall continue to pay the regular assessments to the association
1380until the association releases the tenant or the tenant
1381discontinues tenancy in the share. The association shall mail
1382written notice to the share owner of the association's demand
1383that the tenant pay regular assessments to the association. The
1384tenant is not liable for increases in the amount of the regular
1385assessment due unless the tenant was reasonably notified of the
1386increase before the day on which the rent is due. The liability
1387of the tenant may not exceed the amount due from the tenant to
1388the tenants' landlord. The tenant's landlord shall provide the
1389tenant a credit against rents due to the unit owner in the
1390amount of assessments paid to the association under this
1391section. The association shall, upon request, provide the tenant
1392with written receipts for payments made. The association may
1393issue notices under s. 83.56 and may sue for eviction under ss.
139483.59-83.625 as if the association were a landlord under part II
1395of chapter 83 if the tenant fails to pay an assessment. However,
1396the association is not otherwise considered a landlord under
1397chapter 83 and specifically has no duties under s. 83.51. The
1398tenant does not, by virtue of payment of assessments, have any
1399of the rights of a share owner to vote in any election or to
1400examine the books and records of the association. A court may
1401supersede the effect of this subsection by appointing a
1402receiver.
1403 Section 13. Paragraph (b) of subsection (2) of section
1404720.304, Florida Statutes, is amended to read:
1405 720.304 Right of owners to peaceably assemble; display of
1406flag; SLAPP suits prohibited.-
1407 (2)
1408 (b) Any homeowner may erect a freestanding flagpole no
1409more than 20 feet high on any portion of the homeowner's real
1410property, regardless of any covenants, restrictions, bylaws,
1411rules, or requirements of the association, if the flagpole does
1412not obstruct sightlines at intersections and is not erected
1413within or upon an easement. The homeowner may further display in
1414a respectful manner from that flagpole, regardless of any
1415covenants, restrictions, bylaws, rules, or requirements of the
1416association, one official United States flag, not larger than 4
14171/2 feet by 6 feet, and may additionally display one official
1418flag of the State of Florida or the United States Army, Navy,
1419Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such
1420additional flag must be equal in size to or smaller than the
1421United States flag. The flagpole and display are subject to all
1422building codes, zoning setbacks, and other applicable
1423governmental regulations, including, but not limited to, noise
1424and lighting ordinances in the county or municipality in which
1425the flagpole is erected and all setback and locational criteria
1426contained in the governing documents.
1427 Section 14. Subsection (2) of section 720.305, Florida
1428Statutes, is amended to read:
1429 720.305 Obligations of members; remedies at law or in
1430equity; levy of fines and suspension of use rights.-
1431 (2) If a member is delinquent for more than 90 days in the
1432payment of a monetary obligation due the association the
1433governing documents so provide, an association may suspend,
1434until such monetary obligation is paid for a reasonable period
1435of time, the rights of a member or a member's tenants, guests,
1436or invitees, or both, to use common areas and facilities and may
1437levy reasonable fines of up to, not to exceed $100 per
1438violation, against any member or any tenant, guest, or invitee.
1439A fine may be levied on the basis of each day of a continuing
1440violation, with a single notice and opportunity for hearing,
1441except that a no such fine may not shall exceed $1,000 in the
1442aggregate unless otherwise provided in the governing documents.
1443A fine of less than $1,000 may shall not become a lien against a
1444parcel. In any action to recover a fine, the prevailing party is
1445entitled to collect its reasonable attorney's fees and costs
1446from the nonprevailing party as determined by the court. The
1447provisions regarding the suspension-of-use rights do not apply
1448to the portion of common areas that must be used to provide
1449access to the parcel or utility services provided to the parcel.
1450 (a) A fine or suspension may not be imposed without notice
1451of at least 14 days to the person sought to be fined or
1452suspended and an opportunity for a hearing before a committee of
1453at least three members appointed by the board who are not
1454officers, directors, or employees of the association, or the
1455spouse, parent, child, brother, or sister of an officer,
1456director, or employee. If the committee, by majority vote, does
1457not approve a proposed fine or suspension, it may not be
1458imposed. If the association imposes a fine or suspension, the
1459association must provide written notice of such fine or
1460suspension by mail or hand delivery to the parcel owner and, if
1461applicable, to any tenant, licensee, or invitee of the parcel
1462owner.
1463 (b) The requirements of this subsection do not apply to
1464the imposition of suspensions or fines upon any member because
1465of the failure of the member to pay assessments or other charges
1466when due if such action is authorized by the governing
1467documents.
1468 (b)(c) Suspension of common-area-use rights shall not
1469impair the right of an owner or tenant of a parcel to have
1470vehicular and pedestrian ingress to and egress from the parcel,
1471including, but not limited to, the right to park.
1472 Section 15. Subsection (8) is added to section 720.3085,
1473Florida Statutes, to read:
1474 720.3085 Payment for assessments; lien claims.-
1475 (8) If the parcel is occupied by a tenant and the parcel
1476owner is delinquent in the payment of regular assessments, the
1477association may demand that the tenant pay to the association
1478the future regular assessments related to the parcel. The demand
1479is continuing in nature, and upon demand, the tenant shall
1480continue to pay the regular assessments to the association until
1481the association releases the tenant or the tenant discontinues
1482tenancy in the parcel. The association shall mail written notice
1483to the parcel owner of the association's demand that the tenant
1484pay regular assessments to the association. The tenant is not
1485liable for increases in the amount of the regular assessment due
1486unless the tenant was reasonably notified of the increase before
1487the day on which the rent is due. The tenant shall be given a
1488credit against rents due to the parcel owner in the amount of
1489assessments paid to the association. The association shall, upon
1490request, provide the tenant with written receipts for payments
1491made. The association may issue notices under s. 83.56 and may
1492sue for eviction under ss. 83.59-83.625 as if the association
1493were a landlord under part II of chapter 83 if the tenant fails
1494to pay an assessment. However, the association is not otherwise
1495considered a landlord under chapter 83 and specifically has no
1496duties under s. 83.51. The tenant does not, by virtue of payment
1497of assessments, have any of the rights of a parcel owner to vote
1498in any election or to examine the books and records of the
1499association. A court may supersede the effect of this subsection
1500by appointing a receiver.
1501 Section 16. Subsection (6) is added to section 720.31,
1502Florida Statutes, to read:
1503 720.31 Recreational leaseholds; right to acquire;
1504escalation clauses.-
1505 (6) An association may enter into agreements to acquire
1506leaseholds, memberships, and other possessory or use interests
1507in lands or facilities including, but not limited to, country
1508clubs, golf courses, marinas, submerged land, parking areas,
1509conservation areas, and other recreational facilities. An
1510association may enter into such agreements regardless of whether
1511the lands or facilities are contiguous to the lands of the
1512community or whether such lands or facilities are intended to
1513provide enjoyment, recreation, or other use or benefit to the
1514owners. All leaseholds, memberships, and other possessory or use
1515interests existing or created at the time of recording the
1516declaration must be stated and fully described in the
1517declaration. Subsequent to the recording of the declaration,
1518agreements acquiring leaseholds, memberships, or other
1519possessory or use interests not entered into within 12 months
1520following the recording of the declaration may be entered into
1521only if authorized by the declaration for material alterations
1522or substantial additions to the common areas or association
1523property. If the declaration is silent, any such transaction
1524requires the approval of 75 percent of the total voting
1525interests of the association. The declaration may provide that
1526the rental, membership fees, operations, replacements, or other
1527expenses are common expenses; impose covenants and restrictions
1528concerning their use; and contain other provisions not
1529inconsistent with this subsection. An association exercising its
1530rights under this subsection may join with other associations
1531that are part of the same development or with a master
1532association responsible for the enforcement of shared covenants,
1533conditions, and restrictions in carrying out the intent of this
1534subsection.
1535 Section 17. Subsection (2) of section 553.509, Florida
1536Statutes, is repealed.
1537 Section 18. Paragraph (b) of subsection (2), paragraphs
1538(a) and (c) of subsection (5), and paragraphs (b), (c), (d),
1539(f), and (g) of subsection (6) of section 720.303, Florida
1540Statutes, are amended, and subsection (12) is added to that
1541section, to read:
1542 720.303 Association powers and duties; meetings of board;
1543official records; budgets; financial reporting; association
1544funds; recalls.-
1545 (2) BOARD MEETINGS.-
1546 (b) Members have the right to attend all meetings of the
1547board and to speak on any matter placed on the agenda by
1548petition of the voting interests for at least 3 minutes. The
1549association may adopt written reasonable rules expanding the
1550right of members to speak and governing the frequency, duration,
1551and other manner of member statements, which rules must be
1552consistent with this paragraph and may include a sign-up sheet
1553for members wishing to speak. Notwithstanding any other law, the
1554requirement that board meetings and committee meetings be open
1555to the members is inapplicable to meetings between the board or
1556a committee and the association's attorney to discuss proposed
1557or pending litigation, or with respect to meetings of the board
1558held for the purpose of discussing personnel matters are not
1559required to be open to the members other than directors.
1560 (5) INSPECTION AND COPYING OF RECORDS.-The official
1561records shall be maintained within the state and must be open to
1562inspection and available for photocopying by members or their
1563authorized agents at reasonable times and places within 10
1564business days after receipt of a written request for access.
1565This subsection may be complied with by having a copy of the
1566official records available for inspection or copying in the
1567community. If the association has a photocopy machine available
1568where the records are maintained, it must provide parcel owners
1569with copies on request during the inspection if the entire
1570request is limited to no more than 25 pages.
1571 (a) The failure of an association to provide access to the
1572records within 10 business days after receipt of a written
1573request submitted by certified mail, return receipt requested,
1574creates a rebuttable presumption that the association willfully
1575failed to comply with this subsection.
1576 (c) The association may adopt reasonable written rules
1577governing the frequency, time, location, notice, records to be
1578inspected, and manner of inspections, but may not require impose
1579a requirement that a parcel owner to demonstrate any proper
1580purpose for the inspection, state any reason for the inspection,
1581or limit a parcel owner's right to inspect records to less than
1582one 8-hour business day per month. The association may impose
1583fees to cover the costs of providing copies of the official
1584records, including, without limitation, the costs of copying.
1585The association may charge up to 50 cents per page for copies
1586made on the association's photocopier. If the association does
1587not have a photocopy machine available where the records are
1588kept, or if the records requested to be copied exceed 25 pages
1589in length, the association may have copies made by an outside
1590vendor or association management company personnel and may
1591charge the actual cost of copying, including any reasonable
1592costs involving personnel fees and charges at an hourly rate for
1593vendor or employee time to cover administrative costs to the
1594vendor or association. The association shall maintain an
1595adequate number of copies of the recorded governing documents,
1596to ensure their availability to members and prospective members.
1597Notwithstanding the provisions of this paragraph, the following
1598records are shall not be accessible to members or parcel owners:
1599 1. Any record protected by the lawyer-client privilege as
1600described in s. 90.502 and any record protected by the work-
1601product privilege, including, but not limited to, any record
1602prepared by an association attorney or prepared at the
1603attorney's express direction which reflects a mental impression,
1604conclusion, litigation strategy, or legal theory of the attorney
1605or the association and which was prepared exclusively for civil
1606or criminal litigation or for adversarial administrative
1607proceedings or which was prepared in anticipation of imminent
1608civil or criminal litigation or imminent adversarial
1609administrative proceedings until the conclusion of the
1610litigation or adversarial administrative proceedings.
1611 2. Information obtained by an association in connection
1612with the approval of the lease, sale, or other transfer of a
1613parcel.
1614 3. Disciplinary, health, insurance, and personnel records,
1615including payroll records, of the association's employees.
1616 4. Medical records of parcel owners or community
1617residents.
1618 (6) BUDGETS.-
1619 (b) In addition to annual operating expenses, the budget
1620may include reserve accounts for capital expenditures and
1621deferred maintenance for which the association is responsible.
1622If reserve accounts are not established pursuant to paragraph
1623(d), funding of such reserves shall be limited to the extent
1624that the governing documents do not limit increases in
1625assessments, including reserves. If the budget of the
1626association includes reserve accounts established pursuant to
1627paragraph (d), such reserves shall be determined, maintained,
1628and waived in the manner provided in this subsection. Once an
1629association provides for reserve accounts pursuant to paragraph
1630(d) in the budget, the association shall thereafter determine,
1631maintain, and waive reserves in compliance with this subsection.
1632The provisions of this section do not preclude the termination
1633of a reserve account established pursuant to this paragraph upon
1634approval of a majority of the voting interests of the
1635association. Upon such approval, the terminating reserve account
1636shall be removed from the budget.
1637 (c)1. If the budget of the association does not provide
1638for reserve accounts pursuant to paragraph (d) governed by this
1639subsection and the association is responsible for the repair and
1640maintenance of capital improvements that may result in a special
1641assessment if reserves are not provided, each financial report
1642for the preceding fiscal year required by subsection (7) shall
1643contain the following statement in conspicuous type: THE BUDGET
1644OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
1645CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN
1646SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE
1647ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
1648FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A
1649MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY
1650VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
1651 2. If the budget of the association does provide for
1652funding accounts for deferred expenditures, including, but not
1653limited to, funds for capital expenditures and deferred
1654maintenance, but such accounts are not created or established
1655pursuant to paragraph (d), each financial report for the
1656preceding fiscal year required under subsection (7) must also
1657contain the following statement in conspicuous type: THE BUDGET
1658OF THE ASSOCIATION PROVIDES FOR LIMITED VOLUNTARY DEFERRED
1659EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
1660DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
1661OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
1662PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
1663FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
1664RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
1665ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
1666 (d) An association shall be deemed to have provided for
1667reserve accounts if when reserve accounts have been initially
1668established by the developer or if when the membership of the
1669association affirmatively elects to provide for reserves. If
1670reserve accounts are not initially provided for by the
1671developer, the membership of the association may elect to do so
1672upon the affirmative approval of not less than a majority of the
1673total voting interests of the association. Such approval may be
1674obtained attained by vote of the members at a duly called
1675meeting of the membership or by the upon a written consent of
1676executed by not less than a majority of the total voting
1677interests of the association in the community. The approval
1678action of the membership shall state that reserve accounts shall
1679be provided for in the budget and shall designate the components
1680for which the reserve accounts are to be established. Upon
1681approval by the membership, the board of directors shall include
1682provide for the required reserve accounts for inclusion in the
1683budget in the next fiscal year following the approval and in
1684each year thereafter. Once established as provided in this
1685subsection, the reserve accounts shall be funded or maintained
1686or shall have their funding waived in the manner provided in
1687paragraph (f).
1688 (f) After one or more Once a reserve account or reserve
1689accounts are established, the membership of the association,
1690upon a majority vote at a meeting at which a quorum is present,
1691may provide for no reserves or less reserves than required by
1692this section. If a meeting of the unit owners has been called to
1693determine whether to waive or reduce the funding of reserves and
1694no such result is achieved or a quorum is not present, the
1695reserves as included in the budget shall go into effect. After
1696the turnover, the developer may vote its voting interest to
1697waive or reduce the funding of reserves. Any vote taken pursuant
1698to this subsection to waive or reduce reserves is shall be
1699applicable only to one budget year.
1700 (g) Funding formulas for reserves authorized by this
1701section shall be based on either a separate analysis of each of
1702the required assets or a pooled analysis of two or more of the
1703required assets.
1704 1. If the association maintains separate reserve accounts
1705for each of the required assets, the amount of the contribution
1706to each reserve account is shall be the sum of the following two
1707calculations:
1708 a. The total amount necessary, if any, to bring a negative
1709component balance to zero.
1710 b. The total estimated deferred maintenance expense or
1711estimated replacement cost of the reserve component less the
1712estimated balance of the reserve component as of the beginning
1713of the period for which the budget will be in effect. The
1714remainder, if greater than zero, shall be divided by the
1715estimated remaining useful life of the component.
1716
1717The formula may be adjusted each year for changes in estimates
1718and deferred maintenance performed during the year and may
1719include factors such as inflation and earnings on invested
1720funds.
1721 2. If the association maintains a pooled account of two or
1722more of the required reserve assets, the amount of the
1723contribution to the pooled reserve account as disclosed on the
1724proposed budget may shall not be less than that required to
1725ensure that the balance on hand at the beginning of the period
1726for which the budget will go into effect plus the projected
1727annual cash inflows over the remaining estimated useful life of
1728all of the assets that make up the reserve pool are equal to or
1729greater than the projected annual cash outflows over the
1730remaining estimated useful lives of all of the assets that make
1731up the reserve pool, based on the current reserve analysis. The
1732projected annual cash inflows may include estimated earnings
1733from investment of principal and accounts receivable minus the
1734allowance for doubtful accounts. The reserve funding formula may
1735shall not include any type of balloon payments.
1736 (12) COMPENSATION PROHIBITED.-A director, officer, or
1737committee member of the association may not directly receive any
1738salary or compensation from the association for the performance
1739of duties as a director, officer, or committee member and may
1740not in any other way benefit financially from service to the
1741association. This subsection does not preclude:
1742 (a) Participation by such person in a financial benefit
1743accruing to all or a significant number of members as a result
1744of actions lawfully taken by the board or a committee of which
1745he or she is a member, including, but not limited to, routine
1746maintenance, repair, or replacement of community assets.
1747 (b) Reimbursement for out-of-pocket expenses incurred by
1748such person on behalf of the association, subject to approval in
1749accordance with procedures established by the association's
1750governing documents or, in the absence of such procedures, in
1751accordance with an approval process established by the board.
1752 (c) Any recovery of insurance proceeds derived from a
1753policy of insurance maintained by the association for the
1754benefit of its members.
1755 (d) Any fee or compensation authorized in the governing
1756documents.
1757 (e) Any fee or compensation authorized in advance by a
1758vote of a majority of the voting interests voting in person or
1759by proxy at a meeting of the members.
1760 (f) A developer or its representative from serving as a
1761director, officer, or committee member of the association and
1762benefitting financially from service to the association.
1763 Section 19. Subsections (8) and (9) of section 720.306,
1764Florida Statutes, are amended to read:
1765 720.306 Meetings of members; voting and election
1766procedures; amendments.-
1767 (8) PROXY VOTING.-The members have the right, unless
1768otherwise provided in this subsection or in the governing
1769documents, to vote in person or by proxy.
1770 (a) To be valid, a proxy must be dated, must state the
1771date, time, and place of the meeting for which it was given, and
1772must be signed by the authorized person who executed the proxy.
1773A proxy is effective only for the specific meeting for which it
1774was originally given, as the meeting may lawfully be adjourned
1775and reconvened from time to time, and automatically expires 90
1776days after the date of the meeting for which it was originally
1777given. A proxy is revocable at any time at the pleasure of the
1778person who executes it. If the proxy form expressly so provides,
1779any proxy holder may appoint, in writing, a substitute to act in
1780his or her place.
1781 (b) If the governing documents permit voting by secret
1782ballot by members who are not in attendance at a meeting of the
1783members for the election of directors, such ballots shall be
1784placed in an inner envelope with no identifying markings and
1785mailed or delivered to the association in an outer envelope
1786bearing identifying information reflecting the name of the
1787member, the lot or parcel for which the vote is being cast, and
1788the signature of the lot or parcel owner casting that ballot. If
1789the eligibility of the member to vote is confirmed and no other
1790ballot has been submitted for that lot or parcel, the inner
1791envelope shall be removed from the outer envelope bearing the
1792identification information, placed with the ballots which were
1793personally cast, and opened when the ballots are counted. If
1794more than one ballot is submitted for a lot or parcel, the
1795ballots for that lot or parcel shall be disqualified. Any vote
1796by ballot received after the closing of the balloting may not be
1797considered.
1798 (9) ELECTIONS.-Elections of directors must be conducted in
1799accordance with the procedures set forth in the governing
1800documents of the association. All members of the association are
1801shall be eligible to serve on the board of directors, and a
1802member may nominate himself or herself as a candidate for the
1803board at a meeting where the election is to be held or, if the
1804election process allows voting by absentee ballot, in advance of
1805the balloting. Except as otherwise provided in the governing
1806documents, boards of directors must be elected by a plurality of
1807the votes cast by eligible voters. Any election dispute between
1808a member and an association must be submitted to mandatory
1809binding arbitration with the division. Such proceedings shall be
1810conducted in the manner provided by s. 718.1255 and the
1811procedural rules adopted by the division.
1812 Section 20. Section 720.315, Florida Statutes, is created
1813to read:
1814 720.315 Passage of special assessments before turnover by
1815developer.-Before turnover, the board of directors controlled by
1816the developer may not levy a special assessment unless a
1817majority of the parcel owners other than the developer have
1818approved the special assessment by a majority vote at a duly
1819called special meeting of the membership at which a quorum is
1820present.
1821 Section 21. This act shall take effect July 1, 2010.
CODING: Words stricken are deletions; words underlined are additions.
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