Bill Text: FL S1196 | 2010 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Community Associations [CPSC]

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Passed) 2010-06-01 - Approved by Governor; Chapter No. 2010-174; companion bill(s) passed, see CS/CS/CS/CS/HB 663 (Ch. 2010-176), CS/HB 1035 (Ch. 2010-110) [S1196 Detail]

Download: Florida-2010-S1196-Comm_Sub.html

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Florida Senate - 2010             CS for CS for SB's 1196 & 1222 
 
By the Committees on Military Affairs and Domestic Security; and 
Regulated Industries; and Senators Fasano, Ring, and Gaetz 
583-03052A-10                                         20101196c2 
1                        A bill to be entitled 
2         An act relating to community associations; amending s. 
3         399.02, F.S.; exempting certain elevators from 
4         specific code update requirements; providing a phase 
5         in period for such elevators; amending s. 617.0721, 
6         F.S.; revising the limitations on the right of members 
7         to vote on corporate matters for certain corporations 
8         not for profit that are regulated under ch. 718 or ch. 
9         719, F.S.; amending s. 617.0808, F.S.; excepting 
10         certain corporations not for profit that are an 
11         association as defined in s. 720.301, F.S., or a 
12         corporation regulated under ch. 718 or ch. 719, F.S., 
13         from certain provisions relating to the removal of a 
14         director; amending s. 617.1606, F.S.; providing that 
15         certain statutory provisions providing for the 
16         inspection of corporate records do not apply to a 
17         corporation not for profit that is an association as 
18         defined in s. 720.301, or a corporation regulated 
19         under ch. 718 or ch. 719, F.S.; creating s. 627.714, 
20         F.S.; requiring that coverage under a unit owner’s 
21         policy for certain assessments include at least a 
22         minimum amount of loss assessment coverage; requiring 
23         that every property insurance policy to an individual 
24         unit owner contain a specified provision; amending s. 
25         633.0215, F.S.; exempting certain residential 
26         buildings from a requirement to install a manual fire 
27         alarm system; amending s. 718.103, F.S.; redefining 
28         the term “developer”; amending s. 718.110, F.S.; 
29         allowing the condominium association to have the 
30         authority to restrict through an amendment to a 
31         declaration of condominium, rather than prohibit, the 
32         rental of condominium units; amending s. 718.111, 
33         F.S.; deleting a requirement for the board of a 
34         condominium to hold a meeting open to unit owners to 
35         establish the amount of an insurance deductible; 
36         revising the property to which a property insurance 
37         policy for a condominium association applies; revising 
38         the requirements for a condominium unit owner’s 
39         property insurance policy; limiting the circumstances 
40         under which a person who violates requirements to 
41         maintain association records may be personally liable 
42         for a civil penalty; providing that a condominium 
43         association is not responsible for the use of certain 
44         information provided to an association member under 
45         certain circumstances; specifying records of a 
46         condominium association that are exempt from a 
47         requirement for records to be available for inspection 
48         by an association member; increasing the amount of 
49         time within which a condominium association must 
50         provide unit owners with a copy of the association’s 
51         annual financial report; revising the requirements for 
52         rules relating to the financial report that must be 
53         adopted by the Division of Florida Condominiums, 
54         Timeshares, and Mobile Homes of the Department of 
55         Business and Professional Regulation; revising the 
56         requirements for a financial report based on the 
57         amount of a condominium’s revenues; amending s. 
58         718.112, F.S.; revising provisions relating to the 
59         terms or appointment or election of condominium 
60         members to a board of administration; creating 
61         exceptions to such provisions for condominiums that 
62         contain timeshares; specifying a certification that a 
63         person who is appointed or elected to a board of 
64         administration must make or educational requirements 
65         such board member must satisfy; conforming cross 
66         references to changes made by the act; deleting a 
67         provision prohibiting an association from foregoing 
68         the retrofitting with a fire sprinkler system of 
69         common areas in a high-rise building; prohibiting 
70         local authorities having jurisdiction from requiring 
71         retrofitting with a sprinkler system or other 
72         engineered lifesafety system before a specified date; 
73         authorizing an association to forgo retrofitting under 
74         certain circumstances; providing requirements for a 
75         special meeting of unit owners which may be called 
76         every 3 years in order to vote to forgo retrofitting 
77         of the sprinkler system or other engineered lifesafety 
78         systems; providing meeting notice requirements; 
79         expanding the monetary obligations that a director or 
80         officer must satisfy to avoid abandoning his or her 
81         office; amending s. 718.115, F.S.; specifying certain 
82         services provided in a declaration of condominium 
83         which are obtained pursuant to a bulk contract to be 
84         deemed a common expense; specifying provisions that 
85         must be contained in a bulk contract; specifying 
86         cancellation procedures for bulk contracts; amending 
87         s. 718.116, F.S.; specifying the types of costs that 
88         may be charged against assessment payments made by a 
89         unit owner; requiring a tenant in a unit owned by a 
90         person who is delinquent in the payment of a monetary 
91         obligation to the condominium association to pay rent 
92         to the association under certain circumstances; 
93         authorizing the condominium association to sue such 
94         tenant who fails to pay rent for eviction under 
95         certain circumstances; providing that the tenant is 
96         immune from claims from the unit owner as the result 
97         of paying rent to the association under certain 
98         circumstances; amending s. 718.117, F.S.; revising the 
99         circumstances under which a condominium association 
100         may be terminated due to economic waste or 
101         impossibility; revising provisions specifying the 
102         effect of a termination of condominium; amending s. 
103         718.301, F.S.; revising conditions under which unit 
104         owners other than the developer may elect at least a 
105         majority of the members of the board of administration 
106         of an association; amending s. 718.303, F.S.; 
107         authorizing an association to suspend for a reasonable 
108         time the right of a unit owner or the unit’s occupant, 
109         licensee, or invitee to use certain common elements 
110         under certain circumstances; prohibiting a fine from 
111         being levied or a suspension from being imposed unless 
112         the association meets certain requirements for notice 
113         and provides an opportunity for a hearing; authorizing 
114         an association to suspend voting rights of a member 
115         due to nonpayment of assessments, fines, or other 
116         charges under certain circumstances; amending s. 
117         718.501, F.S.; specifying that the jurisdiction of the 
118         Division of Florida Condominiums, Timeshares, and 
119         Mobile Homes includes bulk assignees and bulk buyers; 
120         creating part VII of ch. 718, F.S.; creating the 
121         “Distressed Condominium Relief Act”; providing 
122         legislative findings and intent; defining the terms 
123         “bulk assignee” and “bulk buyer”; providing for the 
124         assignment of developer rights by a bulk assignee; 
125         specifying liabilities of bulk assignees and bulk 
126         buyers; providing exceptions; providing additional 
127         responsibilities of bulk assignees and bulk buyers; 
128         authorizing certain entities to assign developer 
129         rights to a bulk assignee; limiting the number of bulk 
130         assignees at any given time; providing for the 
131         transfer of control of a board of administration to 
132         unit owners; providing effects of such transfer on 
133         parcels acquired by a bulk assignee; providing 
134         obligations of a bulk assignee upon the transfer of 
135         control of a board of administration; requiring that a 
136         bulk assignee certify certain information in writing; 
137         providing for the resolution of a conflict between 
138         specified provisions of state law; providing that the 
139         failure of a bulk assignee or bulk buyer to comply 
140         with specified provisions of state law results in the 
141         loss of certain protections and exemptions; requiring 
142         that a bulk assignee or bulk buyer file certain 
143         information with the Division of Florida Condominiums, 
144         Timeshares, and Mobile Homes of the Department of 
145         Business and Professional Regulation before offering 
146         any units for sale or lease in excess of a specified 
147         term; requiring that a copy of such information be 
148         provided to a prospective purchaser or tenant; 
149         requiring that certain contracts and disclosure 
150         statements contain specified statements; requiring 
151         that a bulk assignee or bulk buyer comply with certain 
152         disclosure requirements; prohibiting a bulk assignee 
153         from authorizing certain actions on behalf of an 
154         association while the bulk assignee is in control of 
155         the board of administration of the association; 
156         requiring that a bulk assignee or bulk buyer comply 
157         with certain laws with respect to contracts entered 
158         into by the association while the bulk assignee or 
159         bulk buyer was in control of the board of 
160         administration; providing parcel owners with specified 
161         protections regarding certain contracts; requiring 
162         that a bulk buyer comply with certain requirements 
163         regarding the transfer of a parcel; prohibiting a 
164         person from being classified as a bulk assignee or 
165         bulk buyer unless condominium parcels were acquired 
166         before a specified date; providing that the assignment 
167         of developer rights to a bulk assignee does not 
168         release a developer from certain liabilities; amending 
169         s. 719.106, F.S.; providing for the filling of 
170         vacancies on the condominium board of administration; 
171         amending s. 719.1055, F.S.; providing an additional 
172         required provision in cooperative bylaws; deleting a 
173         provision prohibiting an association from foregoing 
174         the retrofitting with a fire sprinkler system of 
175         common areas in a high-rise building; prohibiting 
176         local authorities having jurisdiction from requiring 
177         retrofitting with a sprinkler system or other 
178         engineered lifesafety system before a specified date; 
179         providing requirements for a special meeting of unit 
180         owners which may be called every 3 years in order to 
181         vote to require retrofitting of the sprinkler system 
182         or other engineered lifesafety system; providing 
183         meeting notice requirements; amending s. 719.108, 
184         F.S.; specifying the types of costs that may be 
185         charged against assessment payments made by a unit 
186         owner; providing a prioritized list for disbursement 
187         of payments received by an association; providing for 
188         a lien by an association on a condominium unit for 
189         certain fees and costs; providing procedures and 
190         notice requirements for the filing of a lien by an 
191         association; requiring a tenant in a unit owned by a 
192         person who is delinquent in the payment of a monetary 
193         obligation to the condominium association to pay rent 
194         to the association under certain circumstances; 
195         amending s. 720.304, F.S.; providing that a flagpole 
196         and any flagpole display are subject to certain codes 
197         and regulations; amending s. 720.305, F.S.; 
198         authorizing the association to suspend rights to use 
199         common areas and facilities if the member is 
200         delinquent on the payment of a monetary obligation due 
201         for a certain period of time; providing procedures and 
202         notice requirements for levying a fine or imposing a 
203         suspension; amending s. 720.306, F.S.; providing 
204         procedures for filling a vacancy on the board of 
205         directors; amending s. 720.3085, F.S.; requiring a 
206         tenant in a property owned by a person who is 
207         delinquent in the payment of a monetary obligation to 
208         the condominium association to pay rent to the 
209         association under certain circumstances; amending s. 
210         720.31, F.S.; authorizing an association to enter into 
211         certain agreements to use lands or facilities; 
212         requiring that certain items be stated and fully 
213         described in the declaration; limiting an 
214         association’s power to enter into such agreements 
215         after a specified period following the recording of a 
216         declaration; requiring that certain agreements be 
217         approved by a specified percentage of voting interests 
218         of an association when the declaration is silent as to 
219         the authority of an association to enter into such 
220         agreement; authorizing an association to join with 
221         other associations or a master association under 
222         certain circumstances and for specified purposes; 
223         amending s. 720.303, F.S.; revising provisions 
224         relating to homeowners’ association board meetings, 
225         inspection and copying of records, and reserve 
226         accounts of budgets; expanding the list of association 
227         records that are not accessible to members and parcel 
228         owners; prohibiting certain association personnel from 
229         receiving a salary or compensation; providing 
230         exceptions; amending s. 720.306, F.S.; providing 
231         requirements for secret ballots; providing for filling 
232         vacancies on the homeowners’ association board; 
233         amending s. 720.3085, F.S.; specifying the types of 
234         costs that may be charged against assessment payments 
235         made by a unit owner; creating s. 720.315, F.S.; 
236         prohibiting the board of directors of a homeowners’ 
237         association from levying a special assessment before 
238         turnover of the association by the developer unless 
239         certain conditions are met; providing an effective 
240         date. 
241 
242  Be It Enacted by the Legislature of the State of Florida: 
243 
244         Section 1. Subsection (8) is added to section 399.02, 
245  Florida Statutes, to read: 
246         399.02 General requirements.— 
247         (8) Updates to the code requiring modifications for Phase 
248  II Firefighters’ Service on existing elevators, as amended into 
249  the Safety Code for Existing Elevators and Escalators, ASME 
250  A17.1 and A17.3, may not be enforced on elevators in 
251  condominiums or cooperatives issued a certificate of occupancy 
252  by the local building authority as of July 1, 2008, for 5 years 
253  or until the elevator is replaced or requires major 
254  modification, whichever occurs first. This exception does not 
255  apply to a building for which a certificate of occupancy was 
256  issued after July 1, 2008. This exception does not prevent an 
257  elevator owner from requesting a variance from the applicable 
258  codes before or after the expiration of the 5-year term. This 
259  subsection does not prohibit the division from granting 
260  variances pursuant to s. 120.542. The division shall adopt rules 
261  to administer this subsection. 
262         Section 2. Subsection (7) of section 617.0721, Florida 
263  Statutes, is amended to read: 
264         617.0721 Voting by members.— 
265         (7) Subsections (1), (2), (5), and (6) do not apply to a 
266  corporation that is an association, as defined in s. 720.301, or 
267  a corporation regulated by chapter 718 or chapter 719. 
268         Section 3. Subsection (3) is added to section 617.0808, 
269  Florida Statutes, to read: 
270         617.0808 Removal of directors.— 
271         (3) This section does not apply to any corporation that is 
272  an association, as defined in s. 720.301, or a corporation 
273  regulated under chapter 718 or chapter 719. 
274         Section 4. Section 617.1606, Florida Statutes, is created 
275  to read: 
276         617.1606 Access to records.—Sections 617.1601-617.1605 do 
277  not apply to a corporation that is an association, as defined in 
278  s. 720.301, or a corporation regulated under chapter 718 or 
279  chapter 719. 
280         Section 5. Section 627.714, Florida Statutes, is created to 
281  read: 
282         627.714 Residential condominium unit owner coverage; loss 
283  assessment coverage required.—For policies issued or renewed on 
284  or after July 1, 2010, coverage under a unit owner’s residential 
285  property policy must include at least $2,000 in property loss 
286  assessment coverage for all assessments made as a result of the 
287  same direct loss to the property, regardless of the number of 
288  assessments, owned by all members of the association 
289  collectively if such loss is of the type of loss covered by the 
290  unit owner’s residential property insurance policy, to which a 
291  deductible of no more than $250 per direct property loss 
292  applies. If a deductible was or will be applied to other 
293  property loss sustained by the unit owner resulting from the 
294  same direct loss to the property, no deductible applies to the 
295  loss assessment coverage. Every individual unit owner’s 
296  residential property policy must contain a provision stating 
297  that the coverage afforded by such policy is excess coverage 
298  over the amount recoverable under any other policy covering the 
299  same property. 
300         Section 6. Subsection (13) is added to section 633.0215, 
301  Florida Statutes, to read: 
302         633.0215 Florida Fire Prevention Code.— 
303         (13) A condominium, cooperative, or multifamily residential 
304  building that is less than four stories in height and has a 
305  corridor providing an exterior means of egress is exempt from 
306  the requirement to install a manual fire alarm system under s. 
307  9.6 of the Life Safety Code adopted in the Florida Fire 
308  Prevention Code. 
309         Section 7. Subsection (16) of section 718.103, Florida 
310  Statutes, is amended to read: 
311         718.103 Definitions.—As used in this chapter, the term: 
312         (16) “Developer” means a person who creates a condominium 
313  or offers condominium parcels for sale or lease in the ordinary 
314  course of business, but does not include: 
315         (a) An owner or lessee of a condominium or cooperative unit 
316  who has acquired the unit for his or her own occupancy;, nor 
317  does it include 
318         (b) A cooperative association that which creates a 
319  condominium by conversion of an existing residential cooperative 
320  after control of the association has been transferred to the 
321  unit owners if, following the conversion, the unit owners are 
322  will be the same persons who were unit owners of the cooperative 
323  and no units are offered for sale or lease to the public as part 
324  of the plan of conversion;. 
325         (c) A bulk assignee or bulk buyer as defined in s. 718.703; 
326  or 
327         (d) A state, county, or municipal entity is not a developer 
328  for any purposes under this act when it is acting as a lessor 
329  and not otherwise named as a developer in the declaration of 
330  condominium association. 
331         Section 8. Subsection (13) of section 718.110, Florida 
332  Statutes, is amended to read: 
333         718.110 Amendment of declaration; correction of error or 
334  omission in declaration by circuit court.— 
335         (13) An Any amendment prohibiting restricting unit owners 
336  from renting their units or altering the duration of the rental 
337  term or specifying or limiting the number of times unit owners 
338  are entitled to rent their units during a specified period 
339  owners’ rights relating to the rental of units applies only to 
340  unit owners who consent to the amendment and unit owners who 
341  acquire title to purchase their units after the effective date 
342  of that amendment. 
343         Section 9. Paragraphs (a), (b), (c), (d), (f), (g), (j), 
344  and (n) of subsection (11) and subsections (12) and (13) of 
345  section 718.111, Florida Statutes, are amended to read: 
346         718.111 The association.— 
347         (11) INSURANCE.—In order to protect the safety, health, and 
348  welfare of the people of the State of Florida and to ensure 
349  consistency in the provision of insurance coverage to 
350  condominiums and their unit owners, this subsection applies to 
351  every residential condominium in the state, regardless of the 
352  date of its declaration of condominium. It is the intent of the 
353  Legislature to encourage lower or stable insurance premiums for 
354  associations described in this subsection. 
355         (a) Adequate property hazard insurance, regardless of any 
356  requirement in the declaration of condominium for coverage by 
357  the association for full insurable value, replacement cost, or 
358  similar coverage, must shall be based on upon the replacement 
359  cost of the property to be insured as determined by an 
360  independent insurance appraisal or update of a prior appraisal. 
361  The replacement cost must full insurable value shall be 
362  determined at least once every 36 months. 
363         1. An association or group of associations may provide 
364  adequate property hazard insurance through a self-insurance fund 
365  that complies with the requirements of ss. 624.460-624.488. 
366         2. The association may also provide adequate property 
367  hazard insurance coverage for a group of at least no fewer than 
368  three communities created and operating under this chapter, 
369  chapter 719, chapter 720, or chapter 721 by obtaining and 
370  maintaining for such communities insurance coverage sufficient 
371  to cover an amount equal to the probable maximum loss for the 
372  communities for a 250-year windstorm event. Such probable 
373  maximum loss must be determined through the use of a competent 
374  model that has been accepted by the Florida Commission on 
375  Hurricane Loss Projection Methodology. A No policy or program 
376  providing such coverage may not shall be issued or renewed after 
377  July 1, 2008, unless it has been reviewed and approved by the 
378  Office of Insurance Regulation. The review and approval must 
379  shall include approval of the policy and related forms pursuant 
380  to ss. 627.410 and 627.411, approval of the rates pursuant to s. 
381  627.062, a determination that the loss model approved by the 
382  commission was accurately and appropriately applied to the 
383  insured structures to determine the 250-year probable maximum 
384  loss, and a determination that complete and accurate disclosure 
385  of all material provisions is provided to condominium unit 
386  owners before prior to execution of the agreement by a 
387  condominium association. 
388         3. When determining the adequate amount of property hazard 
389  insurance coverage, the association may consider deductibles as 
390  determined by this subsection. 
391         (b) If an association is a developer-controlled 
392  association, the association shall exercise its best efforts to 
393  obtain and maintain insurance as described in paragraph (a). 
394  Failure to obtain and maintain adequate property hazard 
395  insurance during any period of developer control constitutes a 
396  breach of fiduciary responsibility by the developer-appointed 
397  members of the board of directors of the association, unless the 
398  members can show that despite such failure, they have made their 
399  best efforts to maintain the required coverage. 
400         (c) Policies may include deductibles as determined by the 
401  board. 
402         1. The deductibles must shall be consistent with industry 
403  standards and prevailing practice for communities of similar 
404  size and age, and having similar construction and facilities in 
405  the locale where the condominium property is situated. 
406         2. The deductibles may be based upon available funds, 
407  including reserve accounts, or predetermined assessment 
408  authority at the time the insurance is obtained. 
409         3. The board shall establish the amount of deductibles 
410  based upon the level of available funds and predetermined 
411  assessment authority at a meeting of the board. Such meeting 
412  shall be open to all unit owners in the manner set forth in s. 
413  718.112(2)(e). The notice of such meeting must state the 
414  proposed deductible and the available funds and the assessment 
415  authority relied upon by the board and estimate any potential 
416  assessment amount against each unit, if any. The meeting 
417  described in this paragraph may be held in conjunction with a 
418  meeting to consider the proposed budget or an amendment thereto. 
419         (d) An association controlled by unit owners operating as a 
420  residential condominium shall use its best efforts to obtain and 
421  maintain adequate property insurance to protect the association, 
422  the association property, the common elements, and the 
423  condominium property that must is required to be insured by the 
424  association pursuant to this subsection. 
425         (f) Every property hazard insurance policy issued or 
426  renewed on or after January 1, 2009, for the purpose of 
427  protecting the condominium must shall provide primary coverage 
428  for: 
429         1. All portions of the condominium property as originally 
430  installed or replacement of like kind and quality, in accordance 
431  with the original plans and specifications. 
432         2. All alterations or additions made to the condominium 
433  property or association property pursuant to s. 718.113(2). 
434         3. The coverage must shall exclude all personal property 
435  within the unit or limited common elements, and floor, wall, and 
436  ceiling coverings, electrical fixtures, appliances, water 
437  heaters, water filters, built-in cabinets and countertops, and 
438  window treatments, including curtains, drapes, blinds, hardware, 
439  and similar window treatment components, or replacements of any 
440  of the foregoing which are located within the boundaries of the 
441  unit and serve only such unit. Such property and any insurance 
442  thereupon is the responsibility of the unit owner. 
443         (g) A condominium unit owner’s policy must conform to the 
444  requirements of s. 627.714. Every hazard insurance policy issued 
445  or renewed on or after January 1, 2009, to an individual unit 
446  owner must contain a provision stating that the coverage 
447  afforded by such policy is excess coverage over the amount 
448  recoverable under any other policy covering the same property. 
449  Such policies must include special assessment coverage of no 
450  less than $2,000 per occurrence. An insurance policy issued to 
451  an individual unit owner providing such coverage does not 
452  provide rights of subrogation against the condominium 
453  association operating the condominium in which such individual’s 
454  unit is located. 
455         1. All improvements or additions to the condominium 
456  property that benefit fewer than all unit owners shall be 
457  insured by the unit owner or owners having the use thereof, or 
458  may be insured by the association at the cost and expense of the 
459  unit owners having the use thereof. 
460         2. The association shall require each owner to provide 
461  evidence of a currently effective policy of hazard and liability 
462  insurance upon request, but not more than once per year. Upon 
463  the failure of an owner to provide a certificate of insurance 
464  issued by an insurer approved to write such insurance in this 
465  state within 30 days after the date on which a written request 
466  is delivered, the association may purchase a policy of insurance 
467  on behalf of an owner. The cost of such a policy, together with 
468  reconstruction costs undertaken by the association but which are 
469  the responsibility of the unit owner, may be collected in the 
470  manner provided for the collection of assessments in s. 718.116. 
471         1.3. All reconstruction work after a property casualty loss 
472  must shall be undertaken by the association except as otherwise 
473  authorized in this section. A unit owner may undertake 
474  reconstruction work on portions of the unit with the prior 
475  written consent of the board of administration. However, such 
476  work may be conditioned upon the approval of the repair methods, 
477  the qualifications of the proposed contractor, or the contract 
478  that is used for that purpose. A unit owner must shall obtain 
479  all required governmental permits and approvals before prior to 
480  commencing reconstruction. 
481         2.4. Unit owners are responsible for the cost of 
482  reconstruction of any portions of the condominium property for 
483  which the unit owner is required to carry property casualty 
484  insurance, and any such reconstruction work undertaken by the 
485  association is shall be chargeable to the unit owner and 
486  enforceable as an assessment pursuant to s. 718.116. The 
487  association must be an additional named insured and loss payee 
488  on all casualty insurance policies issued to unit owners in the 
489  condominium operated by the association. 
490         3.5. A multicondominium association may elect, by a 
491  majority vote of the collective members of the condominiums 
492  operated by the association, to operate the such condominiums as 
493  a single condominium for purposes of insurance matters, 
494  including, but not limited to, the purchase of the property 
495  hazard insurance required by this section and the apportionment 
496  of deductibles and damages in excess of coverage. The election 
497  to aggregate the treatment of insurance premiums, deductibles, 
498  and excess damages constitutes an amendment to the declaration 
499  of all condominiums operated by the association, and the costs 
500  of insurance must shall be stated in the association budget. The 
501  amendments must shall be recorded as required by s. 718.110. 
502         (j) Any portion of the condominium property that must 
503  required to be insured by the association against property 
504  casualty loss pursuant to paragraph (f) which is damaged by 
505  casualty shall be reconstructed, repaired, or replaced as 
506  necessary by the association as a common expense. All property 
507  hazard insurance deductibles, uninsured losses, and other 
508  damages in excess of property hazard insurance coverage under 
509  the property hazard insurance policies maintained by the 
510  association are a common expense of the condominium, except 
511  that: 
512         1. A unit owner is responsible for the costs of repair or 
513  replacement of any portion of the condominium property not paid 
514  by insurance proceeds, if such damage is caused by intentional 
515  conduct, negligence, or failure to comply with the terms of the 
516  declaration or the rules of the association by a unit owner, the 
517  members of his or her family, unit occupants, tenants, guests, 
518  or invitees, without compromise of the subrogation rights of the 
519  any insurer as set forth in paragraph (g). 
520         2. The provisions of subparagraph 1. regarding the 
521  financial responsibility of a unit owner for the costs of 
522  repairing or replacing other portions of the condominium 
523  property also apply to the costs of repair or replacement of 
524  personal property of other unit owners or the association, as 
525  well as other property, whether real or personal, which the unit 
526  owners are required to insure under paragraph (g). 
527         3. To the extent the cost of repair or reconstruction for 
528  which the unit owner is responsible under this paragraph is 
529  reimbursed to the association by insurance proceeds, and, to the 
530  extent the association has collected the cost of such repair or 
531  reconstruction from the unit owner, the association shall 
532  reimburse the unit owner without the waiver of any rights of 
533  subrogation. 
534         4. The association is not obligated to pay for 
535  reconstruction or repairs of property casualty losses as a 
536  common expense if the property casualty losses were known or 
537  should have been known to a unit owner and were not reported to 
538  the association until after the insurance claim of the 
539  association for that property casualty was settled or resolved 
540  with finality, or denied because on the basis that it was 
541  untimely filed. 
542         (n) The association is not obligated to pay for any 
543  reconstruction or repair expenses due to property casualty loss 
544  to any improvements installed by a current or former owner of 
545  the unit or by the developer if the improvement benefits only 
546  the unit for which it was installed and is not part of the 
547  standard improvements installed by the developer on all units as 
548  part of original construction, whether or not such improvement 
549  is located within the unit. This paragraph does not relieve any 
550  party of its obligations regarding recovery due under any 
551  insurance implemented specifically for any such improvements. 
552         (12) OFFICIAL RECORDS.— 
553         (a) From the inception of the association, the association 
554  shall maintain each of the following items, if when applicable, 
555  which shall constitute the official records of the association: 
556         1. A copy of the plans, permits, warranties, and other 
557  items provided by the developer pursuant to s. 718.301(4). 
558         2. A photocopy of the recorded declaration of condominium 
559  of each condominium operated by the association and of each 
560  amendment to each declaration. 
561         3. A photocopy of the recorded bylaws of the association 
562  and of each amendment to the bylaws. 
563         4. A certified copy of the articles of incorporation of the 
564  association, or other documents creating the association, and of 
565  each amendment thereto. 
566         5. A copy of the current rules of the association. 
567         6. A book or books which contain the minutes of all 
568  meetings of the association, of the board of administration, and 
569  of unit owners, which minutes must shall be retained for at 
570  least a period of not less than 7 years. 
571         7. A current roster of all unit owners and their mailing 
572  addresses, unit identifications, voting certifications, and, if 
573  known, telephone numbers. The association shall also maintain 
574  the electronic mailing addresses and the numbers designated by 
575  unit owners for receiving notice sent by electronic transmission 
576  of those unit owners consenting to receive notice by electronic 
577  transmission. The electronic mailing addresses and numbers must 
578  provided by unit owners to receive notice by electronic 
579  transmission shall be removed from association records if when 
580  consent to receive notice by electronic transmission is revoked. 
581  However, the association is not liable for an erroneous 
582  disclosure of the electronic mail address or the number for 
583  receiving electronic transmission of notices. 
584         8. All current insurance policies of the association and 
585  condominiums operated by the association. 
586         9. A current copy of any management agreement, lease, or 
587  other contract to which the association is a party or under 
588  which the association or the unit owners have an obligation or 
589  responsibility. 
590         10. Bills of sale or transfer for all property owned by the 
591  association. 
592         11. Accounting records for the association and separate 
593  accounting records for each condominium which the association 
594  operates. All accounting records shall be maintained for at 
595  least a period of not less than 7 years. Any person who 
596  knowingly or intentionally defaces or destroys accounting 
597  records required to be created and maintained by this chapter 
598  during the period for which such records are required to be 
599  maintained, or who knowingly or intentionally fails to create or 
600  maintain such accounting records required to be maintained by 
601  this chapter, with the intent of causing harm to the association 
602  or one or more of its members, is personally subject to a civil 
603  penalty pursuant to s. 718.501(1)(d). The accounting records 
604  must shall include, but are not limited to: 
605         a. Accurate, itemized, and detailed records of all receipts 
606  and expenditures. 
607         b. A current account and a monthly, bimonthly, or quarterly 
608  statement of the account for each unit designating the name of 
609  the unit owner, the due date and amount of each assessment, the 
610  amount paid upon the account, and the balance due. 
611         c. All audits, reviews, accounting statements, and 
612  financial reports of the association or condominium. 
613         d. All contracts for work to be performed. Bids for work to 
614  be performed are shall also be considered official records and 
615  must shall be maintained by the association. 
616         12. Ballots, sign-in sheets, voting proxies, and all other 
617  papers relating to voting by unit owners, which must shall be 
618  maintained for a period of 1 year from the date of the election, 
619  vote, or meeting to which the document relates, notwithstanding 
620  paragraph (b). 
621         13. All rental records if, when the association is acting 
622  as agent for the rental of condominium units. 
623         14. A copy of the current question and answer sheet as 
624  described in by s. 718.504. 
625         15. All other records of the association not specifically 
626  included in the foregoing which are related to the operation of 
627  the association. 
628         16. A copy of the inspection report as provided for in s. 
629  718.301(4)(p). 
630         (b) The official records of the association must shall be 
631  maintained within the state for at least 7 years. The records of 
632  the association shall be made available to a unit owner within 
633  45 miles of the condominium property or within the county in 
634  which the condominium property is located within 5 working days 
635  after receipt of a written request by the board or its designee. 
636  However, such distance requirement does not apply to an 
637  association governing a timeshare condominium. This paragraph 
638  may be complied with by having a copy of the official records of 
639  the association available for inspection or copying on the 
640  condominium property or association property, or the association 
641  may offer the option of making the records of the association 
642  available to a unit owner either electronically via the Internet 
643  or by allowing the records to be viewed in electronic format on 
644  a computer screen and printed upon request. The association is 
645  not responsible for the use or misuse of the information 
646  provided to an association member or his or her authorized 
647  representative pursuant to the compliance requirements of this 
648  chapter unless the association has an affirmative duty not to 
649  disclose such information pursuant to this chapter. 
650         (c) The official records of the association are open to 
651  inspection by any association member or the authorized 
652  representative of such member at all reasonable times. The right 
653  to inspect the records includes the right to make or obtain 
654  copies, at the reasonable expense, if any, of the association 
655  member. The association may adopt reasonable rules regarding the 
656  frequency, time, location, notice, and manner of record 
657  inspections and copying. The failure of an association to 
658  provide the records within 10 working days after receipt of a 
659  written request creates shall create a rebuttable presumption 
660  that the association willfully failed to comply with this 
661  paragraph. A unit owner who is denied access to official records 
662  is entitled to the actual damages or minimum damages for the 
663  association’s willful failure to comply with this paragraph. The 
664  Minimum damages shall be $50 per calendar day up to 10 days, the 
665  calculation to begin on the 11th working day after receipt of 
666  the written request. The failure to permit inspection of the 
667  association records as provided herein entitles any person 
668  prevailing in an enforcement action to recover reasonable 
669  attorney’s fees from the person in control of the records who, 
670  directly or indirectly, knowingly denied access to the records 
671  for inspection. Any person who knowingly or intentionally 
672  defaces or destroys accounting records that are required by this 
673  chapter to be maintained during the period for which such 
674  records are required to be maintained, or who knowingly or 
675  intentionally fails to create or maintain accounting records 
676  that are required to be created or maintained by this chapter, 
677  with the intent of causing harm to the association or one or 
678  more of its members, is personally subject to a civil penalty 
679  pursuant to s. 718.501(1)(d). The association shall maintain an 
680  adequate number of copies of the declaration, articles of 
681  incorporation, bylaws, and rules, and all amendments to each of 
682  the foregoing, as well as the question and answer sheet provided 
683  for in s. 718.504 and year-end financial information required in 
684  this section, on the condominium property to ensure their 
685  availability to unit owners and prospective purchasers, and may 
686  charge its actual costs for preparing and furnishing these 
687  documents to those requesting the documents same. 
688  Notwithstanding the provisions of this paragraph, the following 
689  records are shall not be accessible to unit owners: 
690         1. Any record protected by the lawyer-client privilege as 
691  described in s. 90.502; and any record protected by the work 
692  product privilege, including any record prepared by an 
693  association attorney or prepared at the attorney’s express 
694  direction; which reflects a mental impression, conclusion, 
695  litigation strategy, or legal theory of the attorney or the 
696  association, and which was prepared exclusively for civil or 
697  criminal litigation or for adversarial administrative 
698  proceedings, or which was prepared in anticipation of imminent 
699  civil or criminal litigation or imminent adversarial 
700  administrative proceedings until the conclusion of the 
701  litigation or adversarial administrative proceedings. 
702         2. Information obtained by an association in connection 
703  with the approval of the lease, sale, or other transfer of a 
704  unit. 
705         3. Personnel records of association employees, including, 
706  but not limited to, disciplinary, payroll, health, and insurance 
707  records. 
708         4.3. Medical records of unit owners. 
709         5.4. Social security numbers, driver’s license numbers, 
710  credit card numbers, e-mail addresses, telephone numbers, 
711  emergency contact information, any addresses of a unit owner 
712  other than as provided to fulfill the association’s notice 
713  requirements, and other personal identifying information of any 
714  person, excluding the person’s name, unit designation, mailing 
715  address, and property address. 
716         6. Any electronic security measure that is used by the 
717  association to safeguard data, including passwords. 
718         7. The software and operating system used by the 
719  association which allows manipulation of data, even if the owner 
720  owns a copy of the same software used by the association. The 
721  data is part of the official records of the association. 
722         (13) FINANCIAL REPORTING.—Within 90 days after the end of 
723  the fiscal year, or annually on a date provided in the bylaws, 
724  the association shall prepare and complete, or contract for the 
725  preparation and completion of, a financial report for the 
726  preceding fiscal year. Within 21 days after the final financial 
727  report is completed by the association or received from the 
728  third party, but not later than 120 days after the end of the 
729  fiscal year or other date as provided in the bylaws, the 
730  association shall mail to each unit owner at the address last 
731  furnished to the association by the unit owner, or hand deliver 
732  to each unit owner, a copy of the financial report or a notice 
733  that a copy of the financial report will be mailed or hand 
734  delivered to the unit owner, without charge, upon receipt of a 
735  written request from the unit owner. The division shall adopt 
736  rules setting forth uniform accounting principles and standards 
737  to be used by all associations and shall adopt rules addressing 
738  the financial reporting requirements for multicondominium 
739  associations. The rules must shall include, but not be limited 
740  to, standards for presenting a summary of association reserves, 
741  including a good faith estimate disclosing the annual amount of 
742  reserve funds that would be necessary for the association to 
743  fully fund reserves for each reserve item based on the straight 
744  line accounting method. This disclosure is not applicable to 
745  reserves funded via the pooling method. uniform accounting 
746  principles and standards for stating the disclosure of at least 
747  a summary of the reserves, including information as to whether 
748  such reserves are being funded at a level sufficient to prevent 
749  the need for a special assessment and, if not, the amount of 
750  assessments necessary to bring the reserves up to the level 
751  necessary to avoid a special assessment. The person preparing 
752  the financial reports shall be entitled to rely on an inspection 
753  report prepared for or provided to the association to meet the 
754  fiscal and fiduciary standards of this chapter. In adopting such 
755  rules, the division shall consider the number of members and 
756  annual revenues of an association. Financial reports shall be 
757  prepared as follows: 
758         (a) An association that meets the criteria of this 
759  paragraph shall prepare or cause to be prepared a complete set 
760  of financial statements in accordance with generally accepted 
761  accounting principles. The financial statements must shall be 
762  based upon the association’s total annual revenues, as follows: 
763         1. An association with total annual revenues of $100,000 or 
764  more, but less than $200,000, shall prepare compiled financial 
765  statements. 
766         2. An association with total annual revenues of at least 
767  $200,000, but less than $400,000, shall prepare reviewed 
768  financial statements. 
769         3. An association with total annual revenues of $400,000 or 
770  more shall prepare audited financial statements. 
771         (b)1. An association with total annual revenues of less 
772  than $100,000 shall prepare a report of cash receipts and 
773  expenditures. 
774         2. An association that which operates fewer less than 75 50 
775  units, regardless of the association’s annual revenues, shall 
776  prepare a report of cash receipts and expenditures in lieu of 
777  financial statements required by paragraph (a). 
778         3. A report of cash receipts and disbursements must 
779  disclose the amount of receipts by accounts and receipt 
780  classifications and the amount of expenses by accounts and 
781  expense classifications, including, but not limited to, the 
782  following, as applicable: costs for security, professional and 
783  management fees and expenses, taxes, costs for recreation 
784  facilities, expenses for refuse collection and utility services, 
785  expenses for lawn care, costs for building maintenance and 
786  repair, insurance costs, administration and salary expenses, and 
787  reserves accumulated and expended for capital expenditures, 
788  deferred maintenance, and any other category for which the 
789  association maintains reserves. 
790         (c) An association may prepare or cause to be prepared, 
791  without a meeting of or approval by the unit owners: 
792         1. Compiled, reviewed, or audited financial statements, if 
793  the association is required to prepare a report of cash receipts 
794  and expenditures; 
795         2. Reviewed or audited financial statements, if the 
796  association is required to prepare compiled financial 
797  statements; or 
798         3. Audited financial statements if the association is 
799  required to prepare reviewed financial statements. 
800         (d) If approved by a majority of the voting interests 
801  present at a properly called meeting of the association, an 
802  association may prepare or cause to be prepared: 
803         1. A report of cash receipts and expenditures in lieu of a 
804  compiled, reviewed, or audited financial statement; 
805         2. A report of cash receipts and expenditures or a compiled 
806  financial statement in lieu of a reviewed or audited financial 
807  statement; or 
808         3. A report of cash receipts and expenditures, a compiled 
809  financial statement, or a reviewed financial statement in lieu 
810  of an audited financial statement. 
811 
812  Such meeting and approval must occur before prior to the end of 
813  the fiscal year and is effective only for the fiscal year in 
814  which the vote is taken, except that the approval may also may 
815  be effective for the following fiscal year. With respect to an 
816  association to which the developer has not turned over control 
817  of the association, all unit owners, including the developer, 
818  may vote on issues related to the preparation of financial 
819  reports for the first 2 fiscal years of the association’s 
820  operation, beginning with the fiscal year in which the 
821  declaration is recorded. Thereafter, all unit owners except the 
822  developer may vote on such issues until control is turned over 
823  to the association by the developer. Any audit or review 
824  prepared under this section shall be paid for by the developer 
825  if done before prior to turnover of control of the association. 
826  An association may not waive the financial reporting 
827  requirements of this section for more than 3 consecutive years. 
828         Section 10. Paragraphs (d), (l), (n), and (o) of subsection 
829  (2) of section 718.112, Florida Statutes, are amended to read: 
830         718.112 Bylaws.— 
831         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the 
832  following and, if they do not do so, shall be deemed to include 
833  the following: 
834         (d) Unit owner meetings.— 
835         1. There shall be An annual meeting of the unit owners 
836  shall be held at the location provided in the association bylaws 
837  and, if the bylaws are silent as to the location, the meeting 
838  shall be held within 45 miles of the condominium property. 
839  However, such distance requirement does not apply to an 
840  association governing a timeshare condominium. Unless the bylaws 
841  provide otherwise, a vacancy on the board caused by the 
842  expiration of a director’s term shall be filled by electing a 
843  new board member, and the election must shall be by secret 
844  ballot.; However, if the number of vacancies equals or exceeds 
845  the number of candidates, an no election is not required. Except 
846  in a timeshare condominium, the terms of all members of the 
847  board shall expire at the annual meeting and such board members 
848  may stand for reelection unless otherwise permitted by the 
849  bylaws. If In the event that the bylaws permit staggered terms 
850  of no more than 2 years and upon approval of a majority of the 
851  total voting interests, the association board members may serve 
852  2-year staggered terms. If the number of board members whose 
853  terms have expired exceeds the number of eligible members 
854  showing interest in or demonstrating an intention to run for the 
855  vacant positions no person is interested in or demonstrates an 
856  intention to run for the position of a board member whose term 
857  has expired according to the provisions of this subparagraph, 
858  each such board member whose term has expired is eligible for 
859  reappointment shall be automatically reappointed to the board of 
860  administration and need not stand for reelection. In a 
861  condominium association of more than 10 units or in a 
862  condominium association that does not include timeshare units or 
863  timeshare interests, coowners of a unit may not serve as members 
864  of the board of directors at the same time unless they own more 
865  than one unit or unless there are not enough eligible candidates 
866  to fill the vacancies on the board at the time of the vacancy. 
867  Any unit owner desiring to be a candidate for board membership 
868  must shall comply with sub-subparagraph subparagraph 3.a. A 
869  person who has been suspended or removed by the division under 
870  this chapter, or who is delinquent in the payment of any fee, 
871  fine, or special or regular assessment as provided in paragraph 
872  (n), is not eligible for board membership. A person who has been 
873  convicted of any felony in this state or in a United States 
874  District or Territorial Court, or who has been convicted of any 
875  offense in another jurisdiction that would be considered a 
876  felony if committed in this state, is not eligible for board 
877  membership unless such felon’s civil rights have been restored 
878  for at least a period of no less than 5 years as of the date on 
879  which such person seeks election to the board. The validity of 
880  an action by the board is not affected if it is later determined 
881  that a member of the board is ineligible for board membership 
882  due to having been convicted of a felony. 
883         2. The bylaws must shall provide the method of calling 
884  meetings of unit owners, including annual meetings. Written 
885  notice, which notice must include an agenda, shall be mailed, 
886  hand delivered, or electronically transmitted to each unit owner 
887  at least 14 days before prior to the annual meeting and must 
888  shall be posted in a conspicuous place on the condominium 
889  property at least 14 continuous days preceding the annual 
890  meeting. Upon notice to the unit owners, the board shall, by 
891  duly adopted rule, designate a specific location on the 
892  condominium property or association property upon which all 
893  notices of unit owner meetings shall be posted.; However, if 
894  there is no condominium property or association property upon 
895  which notices can be posted, this requirement does not apply. In 
896  lieu of or in addition to the physical posting of meeting 
897  notices notice of any meeting of the unit owners on the 
898  condominium property, the association may, by reasonable rule, 
899  adopt a procedure for conspicuously posting and repeatedly 
900  broadcasting the notice and the agenda on a closed-circuit cable 
901  television system serving the condominium association. However, 
902  if broadcast notice is used in lieu of a notice posted 
903  physically on the condominium property, the notice and agenda 
904  must be broadcast at least four times every broadcast hour of 
905  each day that a posted notice is otherwise required under this 
906  section. If When broadcast notice is provided, the notice and 
907  agenda must be broadcast in a manner and for a sufficient 
908  continuous length of time so as to allow an average reader to 
909  observe the notice and read and comprehend the entire content of 
910  the notice and the agenda. Unless a unit owner waives in writing 
911  the right to receive notice of the annual meeting, such notice 
912  must shall be hand delivered, mailed, or electronically 
913  transmitted to each unit owner. Notice for meetings and notice 
914  for all other purposes must shall be mailed to each unit owner 
915  at the address last furnished to the association by the unit 
916  owner, or hand delivered to each unit owner. However, if a unit 
917  is owned by more than one person, the association shall provide 
918  notice, for meetings and all other purposes, to that one address 
919  which the developer initially identifies for that purpose and 
920  thereafter as one or more of the owners of the unit shall so 
921  advise the association in writing, or if no address is given or 
922  the owners of the unit do not agree, to the address provided on 
923  the deed of record. An officer of the association, or the 
924  manager or other person providing notice of the association 
925  meeting, shall provide an affidavit or United States Postal 
926  Service certificate of mailing, to be included in the official 
927  records of the association affirming that the notice was mailed 
928  or hand delivered, in accordance with this provision. 
929         3. The members of the board shall be elected by written 
930  ballot or voting machine. Proxies may not shall in no event be 
931  used in electing the board, either in general elections or 
932  elections to fill vacancies caused by recall, resignation, or 
933  otherwise, unless otherwise provided in this chapter. 
934         a. At least Not less than 60 days before a scheduled 
935  election, the association shall mail, deliver, or electronically 
936  transmit, whether by separate association mailing or included in 
937  another association mailing, delivery, or transmission, 
938  including regularly published newsletters, to each unit owner 
939  entitled to a vote, a first notice of the date of the election 
940  along with a certification form provided by the division 
941  attesting that he or she has read and understands, to the best 
942  of his or her ability, the governing documents of the 
943  association and the provisions of this chapter and any 
944  applicable rules. Any unit owner or other eligible person 
945  desiring to be a candidate for the board must give written 
946  notice of his or her intent to be a candidate to the association 
947  at least not less than 40 days before a scheduled election. 
948  Together with the written notice and agenda as set forth in 
949  subparagraph 2., the association shall mail, deliver, or 
950  electronically transmit a second notice of the election to all 
951  unit owners entitled to vote therein, together with a ballot 
952  that lists which shall list all candidates. Upon request of a 
953  candidate, the association shall include an information sheet, 
954  no larger than 8 1/2 inches by 11 inches, which must be 
955  furnished by the candidate at least not less than 35 days before 
956  the election, must along with the signed certification form 
957  provided for in this subparagraph, to be included with the 
958  mailing, delivery, or transmission of the ballot, with the costs 
959  of mailing, delivery, or electronic transmission and copying to 
960  be borne by the association. The association is not liable for 
961  the contents of the information sheets prepared by the 
962  candidates. In order to reduce costs, the association may print 
963  or duplicate the information sheets on both sides of the paper. 
964  The division shall by rule establish voting procedures 
965  consistent with this sub-subparagraph the provisions contained 
966  herein, including rules establishing procedures for giving 
967  notice by electronic transmission and rules providing for the 
968  secrecy of ballots. Elections shall be decided by a plurality of 
969  those ballots cast. There is shall be no quorum requirement; 
970  however, at least 20 percent of the eligible voters must cast a 
971  ballot in order to have a valid election of members of the 
972  board. A No unit owner may not shall permit any other person to 
973  vote his or her ballot, and any such ballots improperly cast are 
974  shall be deemed invalid, provided any unit owner who violates 
975  this provision may be fined by the association in accordance 
976  with s. 718.303. A unit owner who needs assistance in casting 
977  the ballot for the reasons stated in s. 101.051 may obtain such 
978  assistance in casting the ballot. The regular election must 
979  shall occur on the date of the annual meeting. The provisions of 
980  This sub-subparagraph does subparagraph shall not apply to 
981  timeshare condominium associations. Notwithstanding the 
982  provisions of this sub-subparagraph subparagraph, an election is 
983  not required unless more candidates file notices of intent to 
984  run or are nominated than board vacancies exist. 
985         b. Within 90 days after being elected or appointed to the 
986  board, each newly elected or appointed director shall certify in 
987  writing to the secretary of the association that he or she has 
988  read the association’s declaration of condominium, articles of 
989  incorporation, bylaws, and current written policies; that he or 
990  she will work to uphold such documents and policies to the best 
991  of his or her ability; and that he or she will faithfully 
992  discharge his or her fiduciary responsibility to the 
993  association’s members. In lieu of this written certification, 
994  the newly elected or appointed director may submit a certificate 
995  of satisfactory completion of the educational curriculum 
996  administered by a division-approved condominium education 
997  provider. A director who fails to timely file the written 
998  certification or educational certificate is suspended from 
999  service on the board until he or she complies with this sub 
1000  subparagraph. The board may temporarily fill the vacancy during 
1001  the period of suspension. The secretary shall cause the 
1002  association to retain a director’s written certification or 
1003  educational certificate for inspection by the members for 5 
1004  years after a director’s election. Failure to have such written 
1005  certification or educational certificate on file does not affect 
1006  the validity of any action. 
1007         4. Any approval by unit owners called for by this chapter 
1008  or the applicable declaration or bylaws, including, but not 
1009  limited to, the approval requirement in s. 718.111(8), shall be 
1010  made at a duly noticed meeting of unit owners and is shall be 
1011  subject to all requirements of this chapter or the applicable 
1012  condominium documents relating to unit owner decisionmaking, 
1013  except that unit owners may take action by written agreement, 
1014  without meetings, on matters for which action by written 
1015  agreement without meetings is expressly allowed by the 
1016  applicable bylaws or declaration or any statute that provides 
1017  for such action. 
1018         5. Unit owners may waive notice of specific meetings if 
1019  allowed by the applicable bylaws or declaration or any statute. 
1020  If authorized by the bylaws, notice of meetings of the board of 
1021  administration, unit owner meetings, except unit owner meetings 
1022  called to recall board members under paragraph (j), and 
1023  committee meetings may be given by electronic transmission to 
1024  unit owners who consent to receive notice by electronic 
1025  transmission. 
1026         6. Unit owners shall have the right to participate in 
1027  meetings of unit owners with reference to all designated agenda 
1028  items. However, the association may adopt reasonable rules 
1029  governing the frequency, duration, and manner of unit owner 
1030  participation. 
1031         7. Any unit owner may tape record or videotape a meeting of 
1032  the unit owners subject to reasonable rules adopted by the 
1033  division. 
1034         8. Unless otherwise provided in the bylaws, any vacancy 
1035  occurring on the board before the expiration of a term may be 
1036  filled by the affirmative vote of the majority of the remaining 
1037  directors, even if the remaining directors constitute less than 
1038  a quorum, or by the sole remaining director. In the alternative, 
1039  a board may hold an election to fill the vacancy, in which case 
1040  the election procedures must conform to the requirements of sub 
1041  subparagraph subparagraph 3.a. unless the association governs 10 
1042  units or fewer less and has opted out of the statutory election 
1043  process, in which case the bylaws of the association control. 
1044  Unless otherwise provided in the bylaws, a board member 
1045  appointed or elected under this section shall fill the vacancy 
1046  for the unexpired term of the seat being filled. Filling 
1047  vacancies created by recall is governed by paragraph (j) and 
1048  rules adopted by the division. 
1049 
1050  Notwithstanding subparagraph subparagraphs (b)2. and sub 
1051  subparagraph (d)3.a., an association of 10 or fewer units may, 
1052  by the affirmative vote of a majority of the total voting 
1053  interests, provide for different voting and election procedures 
1054  in its bylaws, which vote may be by a proxy specifically 
1055  delineating the different voting and election procedures. The 
1056  different voting and election procedures may provide for 
1057  elections to be conducted by limited or general proxy. 
1058         (l) Certificate of compliance.—There shall be A provision 
1059  that a certificate of compliance from a licensed electrical 
1060  contractor or electrician may be accepted by the association’s 
1061  board as evidence of compliance of the condominium units with 
1062  the applicable fire and life safety code must be included. 
1063  Notwithstanding the provisions of chapter 633 or of any other 
1064  code, statute, ordinance, administrative rule, or regulation, or 
1065  any interpretation of the foregoing, an association, 
1066  condominium, or unit owner is not obligated to retrofit the 
1067  common elements, common areas, association property, or units of 
1068  a residential condominium with a fire sprinkler system or any 
1069  other form of engineered lifesafety system in a building that 
1070  has been certified for occupancy by the applicable governmental 
1071  entity, if the unit owners have voted to forego such 
1072  retrofitting and engineered lifesafety system by the affirmative 
1073  vote of two-thirds of all voting interests in the affected 
1074  condominium. However, a condominium association may not vote to 
1075  forego the retrofitting with a fire sprinkler system of common 
1076  areas in a high-rise building. For purposes of this subsection, 
1077  the term “high-rise building” means a building that is greater 
1078  than 75 feet in height where the building height is measured 
1079  from the lowest level of fire department access to the floor of 
1080  the highest occupiable story. For purposes of this subsection, 
1081  the term “common areas” means any enclosed hallway, corridor, 
1082  lobby, stairwell, or entryway. In no event shall The local 
1083  authority having jurisdiction may not require completion of 
1084  retrofitting of common areas with a sprinkler system or any 
1085  other form of engineered lifesafety system before the end of 
1086  2019 2014. 
1087         1. A vote to forego retrofitting may be obtained by limited 
1088  proxy or by a ballot personally cast at a duly called membership 
1089  meeting, or by execution of a written consent by the member, and 
1090  is shall be effective upon the recording of a certificate 
1091  attesting to such vote in the public records of the county where 
1092  the condominium is located. The association shall mail or, hand 
1093  deliver, or electronically transmit to each unit owner written 
1094  notice at least 14 days before the prior to such membership 
1095  meeting in which the vote to forego retrofitting of the required 
1096  fire sprinkler system or any other form of engineered lifesafety 
1097  system is to take place. Within 30 days after the association’s 
1098  opt-out vote, notice of the results of the opt-out vote must 
1099  shall be mailed or, hand delivered, or electronically 
1100  transmitted to all unit owners. Evidence of compliance with this 
1101  30-day notice requirement must shall be made by an affidavit 
1102  executed by the person providing the notice and filed among the 
1103  official records of the association. After such notice is 
1104  provided to each owner, a copy must of such notice shall be 
1105  provided by the current owner to a new owner before prior to 
1106  closing and shall be provided by a unit owner to a renter before 
1107  prior to signing a lease. 
1108         2. If there has been a previous vote to forego 
1109  retrofitting, a vote to require retrofitting may be obtained at 
1110  a special meeting of the unit owners called by a petition of 
1111  least 10 percent of the voting interests. Such a vote may only 
1112  be called once every 3 years. Notice shall be provided as 
1113  required for any regularly called meeting of the unit owners, 
1114  and must state the purpose of the meeting. Electronic 
1115  transmission may not be used to provide notice of a meeting 
1116  called in whole or in part for this purpose. 
1117         3.2. As part of the information collected annually from 
1118  condominiums, the division shall require condominium 
1119  associations to report the membership vote and recording of a 
1120  certificate under this subsection and, if retrofitting has been 
1121  undertaken, the per-unit cost of such work. The division shall 
1122  annually report to the Division of State Fire Marshal of the 
1123  Department of Financial Services the number of condominiums that 
1124  have elected to forego retrofitting. 
1125         4. Notwithstanding s. 553.509, an association may not be 
1126  obligated to, and may forego the retrofitting of, any 
1127  improvements required by s. 553.509(2) upon an affirmative vote 
1128  of a majority of the voting interests in the affected 
1129  condominium. 
1130         (n) Director or officer delinquencies.—A director or 
1131  officer more than 90 days delinquent in the payment of any 
1132  monetary obligation due the association regular assessments 
1133  shall be deemed to have abandoned the office, creating a vacancy 
1134  in the office to be filled according to law. 
1135         (o) Director or officer offenses.—A director or officer 
1136  charged by information or indictment with a felony theft or 
1137  embezzlement offense involving the association’s funds or 
1138  property must shall be removed from office, creating a vacancy 
1139  in the office to be filled according to law until the end of the 
1140  period of the suspension or the end of the director’s term of 
1141  office, whichever occurs first. While such director or officer 
1142  has such criminal charge pending, he or she may not be appointed 
1143  or elected to a position as a director or officer. However, if 
1144  should the charges are be resolved without a finding of guilt, 
1145  the director or officer shall be reinstated for the remainder of 
1146  his or her term of office, if any. 
1147         Section 11. Paragraph (d) of subsection (1) of section 
1148  718.115, Florida Statutes, is amended to read: 
1149         718.115 Common expenses and common surplus.— 
1150         (1) 
1151         (d) If so provided in the declaration, the cost of 
1152  communications services as defined in chapter 202, information 
1153  services, or Internet services a master antenna television 
1154  system or duly franchised cable television service obtained 
1155  pursuant to a bulk contract is shall be deemed a common expense. 
1156  If the declaration does not provide for the cost of such 
1157  services a master antenna television system or duly franchised 
1158  cable television service obtained under a bulk contract as a 
1159  common expense, the board may enter into such a contract, and 
1160  the cost of the service will be a common expense. The cost for 
1161  the services under a bulk-rate contract may be but allocated on 
1162  a per-unit basis rather than a percentage basis if the 
1163  declaration provides for other than an equal sharing of common 
1164  expenses, and any contract entered into before July 1, 1998, in 
1165  which the cost of the service is not equally divided among all 
1166  unit owners, may be changed by vote of a majority of the voting 
1167  interests present at a regular or special meeting of the 
1168  association, to allocate the cost equally among all units. The 
1169  contract must be for at least shall be for a term of not less 
1170  than 2 years. 
1171         1. Any contract made by the board on or after July 1, 1998, 
1172  the effective date hereof for a community antenna system or duly 
1173  franchised cable television service may be canceled by a 
1174  majority of the voting interests present at the next regular or 
1175  special meeting of the association. Any member may make a motion 
1176  to cancel the said contract, but if no motion is made or if such 
1177  motion fails to obtain the required majority at the next regular 
1178  or special meeting, whichever occurs first is sooner, following 
1179  the making of the contract, then such contract shall be deemed 
1180  ratified for the term therein expressed. 
1181         2. Any Such contract must shall provide, and is shall be 
1182  deemed to provide if not expressly set forth, that any hearing 
1183  impaired or legally blind unit owner who does not occupy the 
1184  unit with a non-hearing-impaired or sighted person, or any unit 
1185  owner receiving supplemental security income under Title XVI of 
1186  the Social Security Act or food stamps as administered by the 
1187  Department of Children and Family Services pursuant to s. 
1188  414.31, may discontinue the cable or video service without 
1189  incurring disconnect fees, penalties, or subsequent service 
1190  charges, and, as to such units, the owners are shall not be 
1191  required to pay any common expenses charge related to such 
1192  service. If fewer less than all members of an association share 
1193  the expenses of cable or video service television, the expense 
1194  shall be shared equally by all participating unit owners. The 
1195  association may use the provisions of s. 718.116 to enforce 
1196  payment of the shares of such costs by the unit owners receiving 
1197  cable or video service television. 
1198         Section 12. Subsection (3) and paragraph (b) of subsection 
1199  (5) of section 718.116, Florida Statutes, is amended, and 
1200  subsection (11) is added to that section, to read: 
1201         718.116 Assessments; liability; lien and priority; 
1202  interest; collection.— 
1203         (3) Assessments and installments on assessments them which 
1204  are not paid when due bear interest at the rate provided in the 
1205  declaration, from the due date until paid. This rate may not 
1206  exceed the rate allowed by law, and, if no rate is provided in 
1207  the declaration, interest accrues shall accrue at the rate of 18 
1208  percent per year. Also, if provided by the declaration or bylaws 
1209  so provide, the association may, in addition to such interest, 
1210  charge an administrative late fee of up to in addition to such 
1211  interest, in an amount not to exceed the greater of $25 or 5 
1212  percent of each installment of the assessment for each 
1213  delinquent installment for which that the payment is late. Any 
1214  payment received by an association must shall be applied first 
1215  to any interest accrued by the association, then to any 
1216  administrative late fee, then to any costs and reasonable 
1217  attorney’s fees incurred in collection, and then to the 
1218  delinquent assessment. Costs may include delinquency letters and 
1219  other collections efforts by a licensed management company or a 
1220  licensed manager relating to a delinquent installment of an 
1221  assessment incurred before filing a claim of lien that does not 
1222  exceed $75. The foregoing is shall be applicable notwithstanding 
1223  any restrictive endorsement, designation, or instruction placed 
1224  on or accompanying a payment. A late fee is shall not be subject 
1225  to the provisions in chapter 687 or s. 718.303(3). 
1226         (5) 
1227         (b) To be valid, a claim of lien must state the description 
1228  of the condominium parcel, the name of the record owner, the 
1229  name and address of the association, the amount due, and the due 
1230  dates. It must be executed and acknowledged by an officer or 
1231  authorized agent of the association. The No such lien is not 
1232  shall be effective longer than 1 year after the claim of lien 
1233  was recorded unless, within that time, an action to enforce the 
1234  lien is commenced. The 1-year period is shall automatically be 
1235  extended for any length of time during which the association is 
1236  prevented from filing a foreclosure action by an automatic stay 
1237  resulting from a bankruptcy petition filed by the parcel owner 
1238  or any other person claiming an interest in the parcel. The 
1239  claim of lien secures shall secure all unpaid assessments that 
1240  which are due and that which may accrue after subsequent to the 
1241  recording of the claim of lien is recorded and through prior to 
1242  the entry of a final judgment certificate of title, as well as 
1243  interest and all reasonable costs and attorney’s fees incurred 
1244  by the association incident to the collection process. Upon 
1245  payment in full, the person making the payment is entitled to a 
1246  satisfaction of the lien. 
1247 
1248  After notice of contest of lien has been recorded, the clerk of 
1249  the circuit court shall mail a copy of the recorded notice to 
1250  the association by certified mail, return receipt requested, at 
1251  the address shown in the claim of lien or most recent amendment 
1252  to it and shall certify to the service on the face of the 
1253  notice. Service is complete upon mailing. After service, the 
1254  association has 90 days in which to file an action to enforce 
1255  the lien; and, if the action is not filed within the 90-day 
1256  period, the lien is void. However, the 90-day period shall be 
1257  extended for any length of time that the association is 
1258  prevented from filing its action because of an automatic stay 
1259  resulting from the filing of a bankruptcy petition by the unit 
1260  owner or by any other person claiming an interest in the parcel. 
1261         (11) If the unit is occupied by a tenant and the unit owner 
1262  is delinquent in paying any monetary obligation due to the 
1263  association, the association may make a written demand that the 
1264  tenant pay the future monetary obligations related to the 
1265  condominium unit to the association, and the tenant must make 
1266  such payment. The demand is continuing in nature and, upon 
1267  demand, the tenant must pay the monetary obligations to the 
1268  association until the association releases the tenant or the 
1269  tenant discontinues tenancy in the unit. The association must 
1270  mail written notice to the unit owner of the association’s 
1271  demand that the tenant make payments to the association. The 
1272  association shall, upon request, provide the tenant with written 
1273  receipts for payments made. A tenant who acts in good faith in 
1274  response to a written demand from an association is immune from 
1275  any claim from the unit owner. 
1276         (a) If the tenant prepaid rent to the unit owner before 
1277  receiving the demand from the association and provides written 
1278  evidence of paying the rent to the association within 14 days 
1279  after receiving the demand, the tenant must make any subsequent 
1280  rental payments to the association to be credited against the 
1281  monetary obligations of the unit owner to the association. 
1282         (b) The tenant is not liable for increases in the amount of 
1283  the monetary obligations due unless the tenant was notified in 
1284  writing of the increase at least 10 days before the date the 
1285  rent is due. The liability of the tenant may not exceed the 
1286  amount due from the tenant to the tenant’s landlord. The 
1287  tenant’s landlord shall provide the tenant a credit against 
1288  rents due to the unit owner in the amount of monies paid to the 
1289  association under this section. 
1290         (c) The association may issue notices under s. 83.56 and 
1291  may sue for eviction under ss. 83.59-83.625 as if the 
1292  association were a landlord under part II of chapter 83 if the 
1293  tenant fails to pay a required payment to the association. 
1294  However, the association is not otherwise considered a landlord 
1295  under chapter 83 and specifically has no duties under s. 83.51. 
1296         (d) The tenant does not, by virtue of payment of monetary 
1297  obligations to the association, have any of the rights of a unit 
1298  owner to vote in any election or to examine the books and 
1299  records of the association. 
1300         (e) A court may supersede the effect of this subsection by 
1301  appointing a receiver. 
1302         Section 13. Subsections (2) and (19) of section 718.117, 
1303  Florida Statutes, are amended to read: 
1304         718.117 Termination of condominium.— 
1305         (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR 
1306  IMPOSSIBILITY.— 
1307         (a) Notwithstanding any provision to the contrary in the 
1308  declaration, the condominium form of ownership of a property may 
1309  be terminated by a plan of termination approved by the lesser of 
1310  the lowest percentage of voting interests necessary to amend the 
1311  declaration or as otherwise provided in the declaration for 
1312  approval of termination if when: 
1313         1. The total estimated cost of construction or repairs 
1314  necessary to construct the intended improvements or restore the 
1315  improvements to their former condition or bring them into 
1316  compliance with applicable laws or regulations exceeds the 
1317  combined fair market value of the all units in the condominium 
1318  after completion of the construction or repairs; or 
1319         2. It becomes impossible to operate or reconstruct a 
1320  condominium to in its prior physical configuration because of 
1321  land use laws or regulations. 
1322         (b) Notwithstanding paragraph (a), a condominium in which 
1323  75 percent or more of the units are timeshare units may be 
1324  terminated only pursuant to a plan of termination approved by 80 
1325  percent of the total voting interests of the association and the 
1326  holders of 80 percent of the original principal amount of 
1327  outstanding recorded mortgage liens of timeshare estates in the 
1328  condominium, unless the declaration provides for a lower voting 
1329  percentage. 
1330         (19) CREATION OF ANOTHER CONDOMINIUM.—The termination of a 
1331  condominium does not bar the filing of a declaration of 
1332  condominium or an amended and restated declaration of 
1333  condominium creation by the termination trustee of another 
1334  condominium affecting any portion of the same property. 
1335         Section 14. Subsection (1) of section 718.301, Florida 
1336  Statutes, is amended to read: 
1337         718.301 Transfer of association control; claims of defect 
1338  by association.— 
1339         (1) If When unit owners other than the developer own 15 
1340  percent or more of the units in a condominium that will be 
1341  operated ultimately by an association, the unit owners other 
1342  than the developer are shall be entitled to elect at least no 
1343  less than one-third of the members of the board of 
1344  administration of the association. Unit owners other than the 
1345  developer are entitled to elect at least not less than a 
1346  majority of the members of the board of administration of an 
1347  association: 
1348         (a) Three years after 50 percent of the units that will be 
1349  operated ultimately by the association have been conveyed to 
1350  purchasers; 
1351         (b) Three months after 90 percent of the units that will be 
1352  operated ultimately by the association have been conveyed to 
1353  purchasers; 
1354         (c) When all the units that will be operated ultimately by 
1355  the association have been completed, some of them have been 
1356  conveyed to purchasers, and none of the others are being offered 
1357  for sale by the developer in the ordinary course of business; 
1358         (d) When some of the units have been conveyed to purchasers 
1359  and none of the others are being constructed or offered for sale 
1360  by the developer in the ordinary course of business; 
1361         (e) When the developer files a petition seeking protection 
1362  in bankruptcy; 
1363         (f) When a receiver for the developer is appointed by a 
1364  circuit court and is not discharged within 30 days after such 
1365  appointment, unless the court determines within 30 days after 
1366  appointment of the receiver that transfer of control would be 
1367  detrimental to the association or its members; or 
1368         (g) Seven years after recordation of the declaration of 
1369  condominium; or, in the case of an association that which may 
1370  ultimately operate more than one condominium, 7 years after 
1371  recordation of the declaration for the first condominium it 
1372  operates; or, in the case of an association operating a phase 
1373  condominium created pursuant to s. 718.403, 7 years after 
1374  recordation of the declaration creating the initial phase, 
1375  whichever occurs first. The developer is entitled to elect at 
1376  least one member of the board of administration of an 
1377  association as long as the developer holds for sale in the 
1378  ordinary course of business at least 5 percent, in condominiums 
1379  with fewer than 500 units, and 2 percent, in condominiums with 
1380  more than 500 units, of the units in a condominium operated by 
1381  the association. After Following the time the developer 
1382  relinquishes control of the association, the developer may 
1383  exercise the right to vote any developer-owned units in the same 
1384  manner as any other unit owner except for purposes of 
1385  reacquiring control of the association or selecting the majority 
1386  members of the board of administration. 
1387         Section 15. Section 718.303, Florida Statutes, is amended 
1388  to read: 
1389         718.303 Obligations of owners and occupants; remedies 
1390  waiver; levy of fine against unit by association.— 
1391         (1) Each unit owner, each tenant and other invitee, and 
1392  each association is shall be governed by, and must shall comply 
1393  with the provisions of, this chapter, the declaration, the 
1394  documents creating the association, and the association bylaws 
1395  which and the provisions thereof shall be deemed expressly 
1396  incorporated into any lease of a unit. Actions for damages or 
1397  for injunctive relief, or both, for failure to comply with these 
1398  provisions may be brought by the association or by a unit owner 
1399  against: 
1400         (a) The association. 
1401         (b) A unit owner. 
1402         (c) Directors designated by the developer, for actions 
1403  taken by them before prior to the time control of the 
1404  association is assumed by unit owners other than the developer. 
1405         (d) Any director who willfully and knowingly fails to 
1406  comply with these provisions. 
1407         (e) Any tenant leasing a unit, and any other invitee 
1408  occupying a unit. 
1409 
1410  The prevailing party in any such action or in any action in 
1411  which the purchaser claims a right of voidability based upon 
1412  contractual provisions as required in s. 718.503(1)(a) is 
1413  entitled to recover reasonable attorney’s fees. A unit owner 
1414  prevailing in an action between the association and the unit 
1415  owner under this section, in addition to recovering his or her 
1416  reasonable attorney’s fees, may recover additional amounts as 
1417  determined by the court to be necessary to reimburse the unit 
1418  owner for his or her share of assessments levied by the 
1419  association to fund its expenses of the litigation. This relief 
1420  does not exclude other remedies provided by law. Actions arising 
1421  under this subsection may shall not be deemed to be actions for 
1422  specific performance. 
1423         (2) A provision of this chapter may not be waived if the 
1424  waiver would adversely affect the rights of a unit owner or the 
1425  purpose of the provision, except that unit owners or members of 
1426  a board of administration may waive notice of specific meetings 
1427  in writing if provided by the bylaws. Any instruction given in 
1428  writing by a unit owner or purchaser to an escrow agent may be 
1429  relied upon by an escrow agent, whether or not such instruction 
1430  and the payment of funds thereunder might constitute a waiver of 
1431  any provision of this chapter. 
1432         (3) If a unit owner is delinquent for more than 90 days in 
1433  paying a monetary obligation due to the association the 
1434  declaration or bylaws so provide, the association may suspend 
1435  the right of a unit owner or a unit’s occupant, licensee, or 
1436  invitee to use common elements, common facilities, or any other 
1437  association property until the monetary obligation is paid. This 
1438  subsection does not apply to limited common elements intended to 
1439  be used only by that unit, common elements that must be used to 
1440  access the unit, utility services provided to the unit, parking 
1441  spaces, or elevators. The association may also levy reasonable 
1442  fines against a unit for the failure of the owner of the unit, 
1443  or its occupant, licensee, or invitee, to comply with any 
1444  provision of the declaration, the association bylaws, or 
1445  reasonable rules of the association. A No fine does not will 
1446  become a lien against a unit. A No fine may not exceed $100 per 
1447  violation. However, a fine may be levied on the basis of each 
1448  day of a continuing violation, with a single notice and 
1449  opportunity for hearing. However, the provided that no such fine 
1450  may not shall in the aggregate exceed $1,000. A No fine may not 
1451  be levied and a suspension may not be imposed unless the 
1452  association first provides at least 14 days’ written except 
1453  after giving reasonable notice and an opportunity for a hearing 
1454  to the unit owner and, if applicable, its occupant, licensee, or 
1455  invitee. The hearing must be held before a committee of other 
1456  unit owners who are neither board members nor persons residing 
1457  in a board member’s household. If the committee does not agree 
1458  with the fine or suspension, the fine or suspension may not be 
1459  levied or imposed. The provisions of this subsection do not 
1460  apply to unoccupied units. 
1461         (4) The notice and hearing requirements of subsection (3) 
1462  do not apply to the imposition of suspensions or fines against a 
1463  unit owner or a unit’s occupant, licensee, or invitee because of 
1464  failing to pay any amounts due the association. If such a fine 
1465  or suspension is imposed, the association must levy the fine or 
1466  impose a reasonable suspension at a properly noticed board 
1467  meeting, and after the imposition of such fine or suspension, 
1468  the association must notify the unit owner and, if applicable, 
1469  the unit’s occupant, licensee, or invitee by mail or hand 
1470  delivery. 
1471         (5) An association may also suspend the voting rights of a 
1472  member due to nonpayment of any monetary obligation due to the 
1473  association which is more than 90 days delinquent. The 
1474  suspension ends upon full payment of all obligations currently 
1475  due or overdue the association. 
1476         Section 16. Subsection (1) of section 718.501, Florida 
1477  Statutes, is amended to read: 
1478         718.501 Authority, responsibility, and duties of Division 
1479  of Florida Condominiums, Timeshares, and Mobile Homes.— 
1480         (1) The division may of Florida Condominiums, Timeshares, 
1481  and Mobile Homes of the Department of Business and Professional 
1482  Regulation, referred to as the “division” in this part, has the 
1483  power to enforce and ensure compliance with the provisions of 
1484  this chapter and rules relating to the development, 
1485  construction, sale, lease, ownership, operation, and management 
1486  of residential condominium units. In performing its duties, the 
1487  division has complete jurisdiction to investigate complaints and 
1488  enforce compliance with the provisions of this chapter with 
1489  respect to associations that are still under developer control 
1490  or the control of a bulk assignee or bulk buyer pursuant to part 
1491  VII of this chapter and complaints against developers, bulk 
1492  assignees, or bulk buyers involving improper turnover or failure 
1493  to turnover, pursuant to s. 718.301. However, after turnover has 
1494  occurred, the division has shall only have jurisdiction to 
1495  investigate complaints related only to financial issues, 
1496  elections, and unit owner access to association records pursuant 
1497  to s. 718.111(12). 
1498         (a)1. The division may make necessary public or private 
1499  investigations within or outside this state to determine whether 
1500  any person has violated this chapter or any rule or order 
1501  hereunder, to aid in the enforcement of this chapter, or to aid 
1502  in the adoption of rules or forms hereunder. 
1503         2. The division may submit any official written report, 
1504  worksheet, or other related paper, or a duly certified copy 
1505  thereof, compiled, prepared, drafted, or otherwise made by and 
1506  duly authenticated by a financial examiner or analyst to be 
1507  admitted as competent evidence in any hearing in which the 
1508  financial examiner or analyst is available for cross-examination 
1509  and attests under oath that such documents were prepared as a 
1510  result of an examination or inspection conducted pursuant to 
1511  this chapter. 
1512         (b) The division may require or permit any person to file a 
1513  statement in writing, under oath or otherwise, as the division 
1514  determines, as to the facts and circumstances concerning a 
1515  matter to be investigated. 
1516         (c) For the purpose of any investigation under this 
1517  chapter, the division director or any officer or employee 
1518  designated by the division director may administer oaths or 
1519  affirmations, subpoena witnesses and compel their attendance, 
1520  take evidence, and require the production of any matter which is 
1521  relevant to the investigation, including the existence, 
1522  description, nature, custody, condition, and location of any 
1523  books, documents, or other tangible things and the identity and 
1524  location of persons having knowledge of relevant facts or any 
1525  other matter reasonably calculated to lead to the discovery of 
1526  material evidence. Upon the failure by a person to obey a 
1527  subpoena or to answer questions propounded by the investigating 
1528  officer and upon reasonable notice to all persons affected 
1529  persons thereby, the division may apply to the circuit court for 
1530  an order compelling compliance. 
1531         (d) Notwithstanding any remedies available to unit owners 
1532  and associations, if the division has reasonable cause to 
1533  believe that a violation of any provision of this chapter or 
1534  related rule has occurred, the division may institute 
1535  enforcement proceedings in its own name against any developer, 
1536  bulk assignee, bulk buyer, association, officer, or member of 
1537  the board of administration, or its assignees or agents, as 
1538  follows: 
1539         1. The division may permit a person whose conduct or 
1540  actions may be under investigation to waive formal proceedings 
1541  and enter into a consent proceeding whereby orders, rules, or 
1542  letters of censure or warning, whether formal or informal, may 
1543  be entered against the person. 
1544         2. The division may issue an order requiring the developer, 
1545  bulk assignee, bulk buyer, association, developer-designated 
1546  officer, or developer-designated member of the board of 
1547  administration, developer-designated assignees or agents, bulk 
1548  assignee-designated assignees or agents, bulk buyer-designated 
1549  assignees or agents, community association manager, or community 
1550  association management firm to cease and desist from the 
1551  unlawful practice and take such affirmative action as in the 
1552  judgment of the division will carry out the purposes of this 
1553  chapter. If the division finds that a developer, bulk assignee, 
1554  bulk buyer, association, officer, or member of the board of 
1555  administration, or its assignees or agents, is violating or is 
1556  about to violate any provision of this chapter, any rule adopted 
1557  or order issued by the division, or any written agreement 
1558  entered into with the division, and presents an immediate danger 
1559  to the public requiring an immediate final order, it may issue 
1560  an emergency cease and desist order reciting with particularity 
1561  the facts underlying such findings. The emergency cease and 
1562  desist order is effective for 90 days. If the division begins 
1563  nonemergency cease and desist proceedings, the emergency cease 
1564  and desist order remains effective until the conclusion of the 
1565  proceedings under ss. 120.569 and 120.57. 
1566         3. If a developer, bulk assignee, or bulk buyer, fails to 
1567  pay any restitution determined by the division to be owed, plus 
1568  any accrued interest at the highest rate permitted by law, 
1569  within 30 days after expiration of any appellate time period of 
1570  a final order requiring payment of restitution or the conclusion 
1571  of any appeal thereof, whichever is later, the division must 
1572  shall bring an action in circuit or county court on behalf of 
1573  any association, class of unit owners, lessees, or purchasers 
1574  for restitution, declaratory relief, injunctive relief, or any 
1575  other available remedy. The division may also temporarily revoke 
1576  its acceptance of the filing for the developer to which the 
1577  restitution relates until payment of restitution is made. 
1578         4. The division may petition the court for the appointment 
1579  of a receiver or conservator. If appointed, the receiver or 
1580  conservator may take action to implement the court order to 
1581  ensure the performance of the order and to remedy any breach 
1582  thereof. In addition to all other means provided by law for the 
1583  enforcement of an injunction or temporary restraining order, the 
1584  circuit court may impound or sequester the property of a party 
1585  defendant, including books, papers, documents, and related 
1586  records, and allow the examination and use of the property by 
1587  the division and a court-appointed receiver or conservator. 
1588         5. The division may apply to the circuit court for an order 
1589  of restitution whereby the defendant in an action brought 
1590  pursuant to subparagraph 4. is shall be ordered to make 
1591  restitution of those sums shown by the division to have been 
1592  obtained by the defendant in violation of this chapter. Such 
1593  restitution shall, At the option of the court, such restitution 
1594  is be payable to the conservator or receiver appointed pursuant 
1595  to subparagraph 4. or directly to the persons whose funds or 
1596  assets were obtained in violation of this chapter. 
1597         6. The division may impose a civil penalty against a 
1598  developer, bulk assignee, or bulk buyer, or association, or its 
1599  assignee or agent, for any violation of this chapter or related 
1600  a rule adopted under this chapter. The division may impose a 
1601  civil penalty individually against an any officer or board 
1602  member who willfully and knowingly violates a provision of this 
1603  chapter, adopted rule, or a final order of the division; may 
1604  order the removal of such individual as an officer or from the 
1605  board of administration or as an officer of the association; and 
1606  may prohibit such individual from serving as an officer or on 
1607  the board of a community association for a period of time. The 
1608  term “willfully and knowingly” means that the division informed 
1609  the officer or board member that his or her action or intended 
1610  action violates this chapter, a rule adopted under this chapter, 
1611  or a final order of the division and that the officer or board 
1612  member refused to comply with the requirements of this chapter, 
1613  a rule adopted under this chapter, or a final order of the 
1614  division. The division, before prior to initiating formal agency 
1615  action under chapter 120, must shall afford the officer or board 
1616  member an opportunity to voluntarily comply and with this 
1617  chapter, a rule adopted under this chapter, or a final order of 
1618  the division. an officer or board member who complies within 10 
1619  days is not subject to a civil penalty. A penalty may be imposed 
1620  on the basis of each day of continuing violation, but in no 
1621  event shall the penalty for any offense may not exceed $5,000. 
1622  By January 1, 1998, the division shall adopt, by rule, penalty 
1623  guidelines applicable to possible violations or to categories of 
1624  violations of this chapter or rules adopted by the division. The 
1625  guidelines must specify a meaningful range of civil penalties 
1626  for each such violation of the statute and rules and must be 
1627  based upon the harm caused by the violation, the repetition of 
1628  the violation, and upon such other factors deemed relevant by 
1629  the division. For example, the division may consider whether the 
1630  violations were committed by a developer, bulk assignee, or bulk 
1631  buyer, or owner-controlled association, the size of the 
1632  association, and other factors. The guidelines must designate 
1633  the possible mitigating or aggravating circumstances that 
1634  justify a departure from the range of penalties provided by the 
1635  rules. It is the legislative intent that minor violations be 
1636  distinguished from those which endanger the health, safety, or 
1637  welfare of the condominium residents or other persons and that 
1638  such guidelines provide reasonable and meaningful notice to the 
1639  public of likely penalties that may be imposed for proscribed 
1640  conduct. This subsection does not limit the ability of the 
1641  division to informally dispose of administrative actions or 
1642  complaints by stipulation, agreed settlement, or consent order. 
1643  All amounts collected shall be deposited with the Chief 
1644  Financial Officer to the credit of the Division of Florida 
1645  Condominiums, Timeshares, and Mobile Homes Trust Fund. If a 
1646  developer, bulk assignee, or bulk buyer fails to pay the civil 
1647  penalty and the amount deemed to be owed to the association, the 
1648  division shall issue an order directing that such developer, 
1649  bulk assignee, or bulk buyer cease and desist from further 
1650  operation until such time as the civil penalty is paid or may 
1651  pursue enforcement of the penalty in a court of competent 
1652  jurisdiction. If an association fails to pay the civil penalty, 
1653  the division shall pursue enforcement in a court of competent 
1654  jurisdiction, and the order imposing the civil penalty or the 
1655  cease and desist order is will not become effective until 20 
1656  days after the date of such order. Any action commenced by the 
1657  division shall be brought in the county in which the division 
1658  has its executive offices or in the county where the violation 
1659  occurred. 
1660         7. If a unit owner presents the division with proof that 
1661  the unit owner has requested access to official records in 
1662  writing by certified mail, and that after 10 days the unit owner 
1663  again made the same request for access to official records in 
1664  writing by certified mail, and that more than 10 days has 
1665  elapsed since the second request and the association has still 
1666  failed or refused to provide access to official records as 
1667  required by this chapter, the division shall issue a subpoena 
1668  requiring production of the requested records where the records 
1669  are kept pursuant to s. 718.112. 
1670         8. In addition to subparagraph 6., the division may seek 
1671  the imposition of a civil penalty through the circuit court for 
1672  any violation for which the division may issue a notice to show 
1673  cause under paragraph (r). The civil penalty shall be at least 
1674  $500 but no more than $5,000 for each violation. The court may 
1675  also award to the prevailing party court costs and reasonable 
1676  attorney’s fees and, if the division prevails, may also award 
1677  reasonable costs of investigation. 
1678         (e) The division may prepare and disseminate a prospectus 
1679  and other information to assist prospective owners, purchasers, 
1680  lessees, and developers of residential condominiums in assessing 
1681  the rights, privileges, and duties pertaining thereto. 
1682         (f) The division may has authority to adopt rules pursuant 
1683  to ss. 120.536(1) and 120.54 to administer implement and enforce 
1684  the provisions of this chapter. 
1685         (g) The division shall establish procedures for providing 
1686  notice to an association and the developer, bulk assignee, or 
1687  bulk buyer during the period in which where the developer, bulk 
1688  assignee, or bulk buyer controls the association if when the 
1689  division is considering the issuance of a declaratory statement 
1690  with respect to the declaration of condominium or any related 
1691  document governing in such condominium community. 
1692         (h) The division shall furnish each association that which 
1693  pays the fees required by paragraph (2)(a) a copy of this 
1694  chapter, as amended act, subsequent changes to this act on an 
1695  annual basis, an amended version of this act as it becomes 
1696  available from the Secretary of State’s office on a biennial 
1697  basis, and the rules adopted thereto on an annual basis. 
1698         (i) The division shall annually provide each association 
1699  with a summary of declaratory statements and formal legal 
1700  opinions relating to the operations of condominiums which were 
1701  rendered by the division during the previous year. 
1702         (j) The division shall provide training and educational 
1703  programs for condominium association board members and unit 
1704  owners. The training may, in the division’s discretion, include 
1705  web-based electronic media, and live training and seminars in 
1706  various locations throughout the state. The division may shall 
1707  have the authority to review and approve education and training 
1708  programs for board members and unit owners offered by providers 
1709  and shall maintain a current list of approved programs and 
1710  providers and shall make such list available to board members 
1711  and unit owners in a reasonable and cost-effective manner. 
1712         (k) The division shall maintain a toll-free telephone 
1713  number accessible to condominium unit owners. 
1714         (l) The division shall develop a program to certify both 
1715  volunteer and paid mediators to provide mediation of condominium 
1716  disputes. The division shall provide, upon request, a list of 
1717  such mediators to any association, unit owner, or other 
1718  participant in arbitration proceedings under s. 718.1255 
1719  requesting a copy of the list. The division shall include on the 
1720  list of volunteer mediators only the names of persons who have 
1721  received at least 20 hours of training in mediation techniques 
1722  or who have mediated at least 20 disputes. In order to become 
1723  initially certified by the division, paid mediators must be 
1724  certified by the Supreme Court to mediate court cases in county 
1725  or circuit courts. However, the division may adopt, by rule, 
1726  additional factors for the certification of paid mediators, 
1727  which factors must be related to experience, education, or 
1728  background. Any person initially certified as a paid mediator by 
1729  the division must, in order to continue to be certified, comply 
1730  with the factors or requirements adopted by rule imposed by 
1731  rules adopted by the division. 
1732         (m) If When a complaint is made, the division must shall 
1733  conduct its inquiry with due regard for to the interests of the 
1734  affected parties. Within 30 days after receipt of a complaint, 
1735  the division shall acknowledge the complaint in writing and 
1736  notify the complainant whether the complaint is within the 
1737  jurisdiction of the division and whether additional information 
1738  is needed by the division from the complainant. The division 
1739  shall conduct its investigation and shall, within 90 days after 
1740  receipt of the original complaint or of timely requested 
1741  additional information, take action upon the complaint. However, 
1742  the failure to complete the investigation within 90 days does 
1743  not prevent the division from continuing the investigation, 
1744  accepting or considering evidence obtained or received after 90 
1745  days, or taking administrative action if reasonable cause exists 
1746  to believe that a violation of this chapter or a rule of the 
1747  division has occurred. If an investigation is not completed 
1748  within the time limits established in this paragraph, the 
1749  division shall, on a monthly basis, notify the complainant in 
1750  writing of the status of the investigation. When reporting its 
1751  action to the complainant, the division shall inform the 
1752  complainant of any right to a hearing pursuant to ss. 120.569 
1753  and 120.57. 
1754         (n) Condominium association directors, officers, and 
1755  employees; condominium developers; bulk assignees, bulk buyers, 
1756  and community association managers; and community association 
1757  management firms have an ongoing duty to reasonably cooperate 
1758  with the division in any investigation pursuant to this section. 
1759  The division shall refer to local law enforcement authorities 
1760  any person whom the division believes has altered, destroyed, 
1761  concealed, or removed any record, document, or thing required to 
1762  be kept or maintained by this chapter with the purpose to impair 
1763  its verity or availability in the department’s investigation. 
1764         (o) The division may: 
1765         1. Contract with agencies in this state or other 
1766  jurisdictions to perform investigative functions; or 
1767         2. Accept grants-in-aid from any source. 
1768         (p) The division shall cooperate with similar agencies in 
1769  other jurisdictions to establish uniform filing procedures and 
1770  forms, public offering statements, advertising standards, and 
1771  rules and common administrative practices. 
1772         (q) The division shall consider notice to a developer, bulk 
1773  assignee, or bulk buyer to be complete when it is delivered to 
1774  the developer’s address of the developer, bulk assignee, or bulk 
1775  buyer currently on file with the division. 
1776         (r) In addition to its enforcement authority, the division 
1777  may issue a notice to show cause, which must shall provide for a 
1778  hearing, upon written request, in accordance with chapter 120. 
1779         (s) The division shall submit to the Governor, the 
1780  President of the Senate, the Speaker of the House of 
1781  Representatives, and the chairs of the legislative 
1782  appropriations committees an annual report that includes, but 
1783  need not be limited to, the number of training programs provided 
1784  for condominium association board members and unit owners, the 
1785  number of complaints received by type, the number and percent of 
1786  complaints acknowledged in writing within 30 days and the number 
1787  and percent of investigations acted upon within 90 days in 
1788  accordance with paragraph (m), and the number of investigations 
1789  exceeding the 90-day requirement. The annual report must shall 
1790  also include an evaluation of the division’s core business 
1791  processes and make recommendations for improvements, including 
1792  statutory changes. The report shall be submitted by September 30 
1793  following the end of the fiscal year. 
1794         Section 17. Part VII of chapter 718, Florida Statutes, 
1795  consisting of sections 718.701, 718.702, 718.703, 718.704, 
1796  718.705, 718.706, 718.707, and 718.708, is created to read: 
1797         718.701 Short title.—This part may be cited as the 
1798  “Distressed Condominium Relief Act.” 
1799         718.702 Legislative intent.— 
1800         (1) The Legislature acknowledges the massive downturn in 
1801  the condominium market which has occurred throughout the state 
1802  and the impact of such downturn on developers, lenders, unit 
1803  owners, and condominium associations. Numerous condominium 
1804  projects have failed or are in the process of failing such that 
1805  the condominium has a small percentage of third-party unit 
1806  owners as compared to the unsold inventory of units. As a result 
1807  of the inability to find purchasers for this inventory of units, 
1808  which results in part from the devaluing of real estate in this 
1809  state, developers are unable to satisfy the requirements of 
1810  their lenders, leading to defaults on mortgages. Consequently, 
1811  lenders are faced with the task of finding a solution to the 
1812  problem in order to receive payment for their investments. 
1813         (2) The Legislature recognizes that all of the factors 
1814  listed in this section lead to condominiums becoming distressed, 
1815  resulting in detriment to the unit owners and the condominium 
1816  association due to the resulting shortage of assessment moneys 
1817  available for proper maintenance of the condominium. Such 
1818  shortage and the resulting lack of proper maintenance further 
1819  erodes property values. The Legislature finds that individuals 
1820  and entities within this state and in other states have 
1821  expressed interest in purchasing unsold inventory in one or more 
1822  condominium projects, but are reticent to do so because of 
1823  accompanying liabilities inherited from the original developer, 
1824  which are by definition imputed to the successor purchaser, 
1825  including a foreclosing mortgagee. This results in the potential 
1826  successor purchaser having unknown and unquantifiable risks that 
1827  the potential purchaser is unwilling to accept. As a result, 
1828  condominium projects stagnate, leaving all parties involved at 
1829  an impasse and without the ability to find a solution. 
1830         (3) The Legislature declares that it is the public policy 
1831  of this state to protect the interests of developers, lenders, 
1832  unit owners, and condominium associations with regard to 
1833  distressed condominiums, and that there is a need for relief 
1834  from certain provisions of the Florida Condominium Act geared 
1835  toward enabling economic opportunities for successor purchasers, 
1836  including foreclosing mortgagees. Such relief would benefit 
1837  existing unit owners and condominium associations. The 
1838  Legislature further finds and declares that this situation 
1839  cannot be open-ended without potentially prejudicing the rights 
1840  of unit owners and condominium associations, and thereby 
1841  declares that the provisions of this part may be used by 
1842  purchasers of condominium inventory for only a specific and 
1843  defined period. 
1844         718.703 Definitions.—As used in this part, the term: 
1845         (1) “Bulk assignee” means a person who: 
1846         (a) Acquires more than seven condominium parcels as set 
1847  forth in s. 718.707; and 
1848         (b) Receives an assignment of some or all of the rights of 
1849  the developer as set forth in the declaration of condominium or 
1850  this chapter by a written instrument recorded as an exhibit to 
1851  the deed or as a separate instrument in the public records of 
1852  the county in which the condominium is located. 
1853         (2) “Bulk buyer” means a person who acquires more than 
1854  seven condominium parcels as set forth in s. 718.707, but who 
1855  does not receive an assignment of developer rights other than 
1856  the right to conduct sales, leasing, and marketing activities 
1857  within the condominium; the right to be exempt from the payment 
1858  of working capital contributions to the condominium association 
1859  arising out of, or in connection with, the bulk buyer’s 
1860  acquisition of a bulk number of units; and the right to be 
1861  exempt from any rights of first refusal which may be held by the 
1862  condominium association and would otherwise be applicable to 
1863  subsequent transfers of title from the bulk buyer to a third 
1864  party purchaser concerning one or more units. 
1865         718.704 Assignment and assumption of developer rights by 
1866  bulk assignee; bulk buyer.— 
1867         (1) A bulk assignee assumes and is liable for all duties 
1868  and responsibilities of the developer under the declaration and 
1869  this chapter, except: 
1870         (a) Warranties of the developer under s. 718.203(1) or s. 
1871  718.618, except for design, construction, development, or repair 
1872  work performed by or on behalf of such bulk assignee; 
1873         (b) The obligation to: 
1874         1. Fund converter reserves under s. 718.618 for a unit that 
1875  was not acquired by the bulk assignee; or 
1876         2. Provide converter warranties on any portion of the 
1877  condominium property except as expressly provided by the bulk 
1878  assignee in the contract for purchase and sale executed with a 
1879  purchaser and pertaining to any design, construction, 
1880  development, or repair work performed by or on behalf of the 
1881  bulk assignee; 
1882         (c) The requirement to provide the association with a 
1883  cumulative audit of the association’s finances from the date of 
1884  formation of the condominium association as required by s. 
1885  718.301(4)(c). However, the bulk assignee must provide an audit 
1886  for the period during which the bulk assignee elects a majority 
1887  of the members of the board of administration; 
1888         (d) Any liability arising out of or in connection with 
1889  actions taken by the board of administration or the developer 
1890  appointed directors before the bulk assignee elects a majority 
1891  of the members of the board of administration; and 
1892         (e) Any liability for or arising out of the developer’s 
1893  failure to fund previous assessments or to resolve budgetary 
1894  deficits in relation to a developer’s right to guarantee 
1895  assessments, except as otherwise provided in subsection (2). 
1896 
1897  The bulk assignee is also responsible for delivering documents 
1898  and materials in accordance with s. 718.705(3). A bulk assignee 
1899  may expressly assume some or all of the obligations of the 
1900  developer described in paragraphs (a)-(e). 
1901         (2) A bulk assignee receiving the assignment of the rights 
1902  of the developer to guarantee the level of assessments and fund 
1903  budgetary deficits pursuant to s. 718.116 assumes and is liable 
1904  for all obligations of the developer with respect to such 
1905  guarantee, including any applicable funding of reserves to the 
1906  extent required by law, for as long as the guarantee remains in 
1907  effect. A bulk assignee not receiving such assignment or a bulk 
1908  buyer does not assume and is not liable for the obligations of 
1909  the developer with respect to such guarantee, but is responsible 
1910  for payment of assessments in the same manner as all other 
1911  owners of condominium parcels. 
1912         (3) A bulk buyer is liable for the duties and 
1913  responsibilities of the developer under the declaration and this 
1914  chapter only to the extent provided in this part, together with 
1915  any other duties or responsibilities of the developer expressly 
1916  assumed in writing by the bulk buyer. 
1917         (4) An acquirer of condominium parcels is not a bulk 
1918  assignee or a bulk buyer if the transfer to such acquirer was 
1919  made before the effective date of this part with the intent to 
1920  hinder, delay, or defraud any purchaser, unit owner, or the 
1921  association, or if the acquirer is a person who would be 
1922  considered an insider under s. 726.102(7). 
1923         (5) An assignment of developer rights to a bulk assignee 
1924  may be made by the developer, a previous bulk assignee, or a 
1925  court acting on behalf of the developer or the previous bulk 
1926  assignee. At any particular time, there may be no more than one 
1927  bulk assignee within a condominium, but there may be more than 
1928  one bulk buyer. If more than one acquirer of condominium parcels 
1929  in the same condominium receives an assignment of developer 
1930  rights from the same person, the bulk assignee is the acquirer 
1931  whose instrument of assignment is recorded first. 
1932         718.705 Board of administration; transfer of control.— 
1933         (1) For purposes of determining the timing for transfer of 
1934  control of the board of administration of the association to 
1935  unit owners other than the developer under s. 718.301(1)(a) and 
1936  (b), if a bulk assignee is entitled to elect a majority of the 
1937  members of the board, a condominium parcel acquired by the bulk 
1938  assignee is conveyed to a purchaser, or owned by an owner other 
1939  than the developer, until the condominium parcel is conveyed to 
1940  an owner who is not a bulk assignee. 
1941         (2) Unless control of the board of administration of the 
1942  association has already been relinquished pursuant to s. 
1943  718.301(1), the bulk assignee must relinquish control of the 
1944  association pursuant to s. 718.301 and this part, as if the bulk 
1945  assignee were the developer. 
1946         (3) If a bulk assignee relinquishes control of the board of 
1947  administration as set forth in s. 718.301, the bulk assignee 
1948  must deliver all of those items required by s. 718.301(4). 
1949  However, the bulk assignee is not required to deliver items and 
1950  documents not in the possession of the bulk assignee during the 
1951  period during which the bulk assignee was entitled to elect at 
1952  least a majority of the members of the board of administration. 
1953  In conjunction with acquisition of condominium parcels, a bulk 
1954  assignee shall undertake a good faith effort to obtain the 
1955  documents and materials that must be provided to the association 
1956  pursuant to s. 718.301(4). If the bulk assignee is not able to 
1957  obtain all of such documents and materials, the bulk assignee 
1958  must certify in writing to the association the names or 
1959  descriptions of the documents and materials that were not 
1960  obtainable by the bulk assignee. Delivery of the certificate 
1961  relieves the bulk assignee of responsibility for delivering the 
1962  documents and materials referenced in the certificate as 
1963  otherwise required under ss. 718.112 and 718.301 and this part. 
1964  The responsibility of the bulk assignee for the audit required 
1965  by s. 718.301(4) commences as of the date on which the bulk 
1966  assignee elected a majority of the members of the board of 
1967  administration. 
1968         (4) If a conflict arises between the provisions or 
1969  application of this section and s. 718.301, this section 
1970  prevails. 
1971         (5) Failure of a bulk assignee or bulk buyer to 
1972  substantially comply with all the requirements in this part 
1973  results in the loss of any and all protections or exemptions 
1974  provided under this part. 
1975         718.706 Specific provisions pertaining to offering of units 
1976  by a bulk assignee or bulk buyer.— 
1977         (1) Before offering any units for sale or for lease for a 
1978  term exceeding 5 years, a bulk assignee or a bulk buyer must 
1979  file the following documents with the division and provide such 
1980  documents to a prospective purchaser or tenant: 
1981         (a) An updated prospectus or offering circular, or a 
1982  supplement to the prospectus or offering circular, filed by the 
1983  creating developer prepared in accordance with s. 718.504, which 
1984  must include the form of contract for sale and for lease in 
1985  compliance with s. 718.503(2); 
1986         (b) An updated Frequently Asked Questions and Answers 
1987  sheet; 
1988         (c) The executed escrow agreement if required under s. 
1989  718.202; and 
1990         (d) The financial information required by s. 718.111(13). 
1991  However, if a financial information report does not exist for 
1992  the fiscal year before acquisition of title by the bulk assignee 
1993  or bulk buyer, or accounting records cannot be obtained in good 
1994  faith by the bulk assignee or the bulk buyer which would permit 
1995  preparation of the required financial information report, the 
1996  bulk assignee or bulk buyer is excused from the requirement of 
1997  this paragraph. However, the bulk assignee or bulk buyer must 
1998  include in the purchase contract the following statement in 
1999  conspicuous type: 
2000 
2001         THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S. 
2002         718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR 
2003         OF THE ASSOCIATION IS NOT AVAILABLE OR CANNOT BE 
2004         CREATED BY THE SELLER DUE TO THE INSUFFICIENT 
2005         ACCOUNTING RECORDS OF THE ASSOCIATION. 
2006 
2007         (2) Before offering any units for sale or for lease for a 
2008  term exceeding 5 years, a bulk assignee must file with the 
2009  division and provide to a prospective purchaser a disclosure 
2010  statement that includes, but is not limited to: 
2011         (a) A description of any rights of the developer which have 
2012  been assigned to the bulk assignee; 
2013         (b) The following statement in conspicuous type: 
2014 
2015         THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE 
2016         DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS 
2017         APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION, 
2018         DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF 
2019         OF SELLER; and 
2020         (c) If the condominium is a conversion subject to part VI, 
2021  the following statement in conspicuous type: 
2022 
2023         THE SELLER HAS NO OBLIGATION TO FUND CONVERTER 
2024         RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S. 
2025         718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY 
2026         EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN 
2027         THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE 
2028         SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO 
2029         ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK 
2030         PERFORMED BY OR ON BEHALF OF THE SELLER. 
2031         (3) A bulk assignee, while it is in control of the board of 
2032  administration of the association, may not authorize, on behalf 
2033  of the association: 
2034         (a) The waiver of reserves or the reduction of funding of 
2035  the reserves pursuant to s. 718.112(2)(f)2., unless approved by 
2036  a majority of the voting interests not controlled by the 
2037  developer, bulk assignee, and bulk buyer; or 
2038         (b) The use of reserve expenditures for other purposes 
2039  pursuant to s. 718.112(2)(f)3., unless approved by a majority of 
2040  the voting interests not controlled by the developer, bulk 
2041  assignee, and bulk buyer. 
2042         (4) A bulk assignee or a bulk buyer must comply with all 
2043  the requirements of s. 718.302 regarding any contracts entered 
2044  into by the association during the period the bulk assignee or 
2045  bulk buyer maintains control of the board of administration. 
2046  Unit owners shall be afforded all the protections contained in 
2047  s. 718.302 regarding agreements entered into by the association 
2048  before unit owners other than the developer, bulk assignee, or 
2049  bulk buyer elected a majority of the board of administration. 
2050         (5) A bulk buyer must comply with the requirements 
2051  contained in the declaration regarding any transfer of a unit, 
2052  including sales, leases, and subleases. A bulk buyer is not 
2053  entitled to any exemptions afforded a developer or successor 
2054  developer under this chapter regarding the transfer of a unit, 
2055  including sales, leases, or subleases. 
2056         718.707 Time limitation for classification as bulk assignee 
2057  or bulk buyer.—A person acquiring condominium parcels may not be 
2058  classified as a bulk assignee or bulk buyer unless the 
2059  condominium parcels were acquired before July 1, 2012. The date 
2060  of such acquisition shall be determined by the date of recording 
2061  of a deed or other instrument of conveyance for such parcels in 
2062  the public records of the county in which the condominium is 
2063  located, or by the date of issuance of a certificate of title in 
2064  a foreclosure proceeding with respect to such condominium 
2065  parcels. 
2066         718.708 Liability of developers and others.—An assignment 
2067  of developer rights to a bulk assignee or bulk buyer does not 
2068  release the creating developer from liabilities under the 
2069  declaration or this chapter. This part does not limit the 
2070  liability of the creating developer for claims brought by unit 
2071  owners, bulk assignees, or bulk buyers for violations of this 
2072  chapter by the creating developer, unless specifically excluded 
2073  in this part. This part does not waive, release, compromise, or 
2074  limit liability established under chapter 718 except as 
2075  specifically excluded under this part. 
2076         Section 18. Paragraph (d) of subsection (1) of section 
2077  719.106, Florida Statutes, is amended to read: 
2078         719.106 Bylaws; cooperative ownership.— 
2079         (1) MANDATORY PROVISIONS.—The bylaws or other cooperative 
2080  documents shall provide for the following, and if they do not, 
2081  they shall be deemed to include the following: 
2082         (d) Shareholder meetings.—There shall be an annual meeting 
2083  of the shareholders. All members of the board of administration 
2084  shall be elected at the annual meeting unless the bylaws provide 
2085  for staggered election terms or for their election at another 
2086  meeting. Any unit owner desiring to be a candidate for board 
2087  membership must shall comply with subparagraph 1. The bylaws 
2088  must shall provide the method for calling meetings, including 
2089  annual meetings. Written notice, which must notice shall 
2090  incorporate an identification of agenda items, shall be given to 
2091  each unit owner at least 14 days before prior to the annual 
2092  meeting and shall be posted in a conspicuous place on the 
2093  cooperative property at least 14 continuous days preceding the 
2094  annual meeting. Upon notice to the unit owners, the board must 
2095  shall by duly adopted rule designate a specific location on the 
2096  cooperative property upon which all notice of unit owner 
2097  meetings are shall be posted. In lieu of or in addition to the 
2098  physical posting of the meeting notice of any meeting of the 
2099  shareholders on the cooperative property, the association may, 
2100  by reasonable rule, adopt a procedure for conspicuously posting 
2101  and repeatedly broadcasting the notice and the agenda on a 
2102  closed-circuit cable television system serving the cooperative 
2103  association. However, if broadcast notice is used in lieu of a 
2104  posted notice posted physically on the cooperative property, the 
2105  notice and agenda must be broadcast at least four times every 
2106  broadcast hour of each day that a posted notice is otherwise 
2107  required under this section. If When broadcast notice is 
2108  provided, the notice and agenda must be broadcast in a manner 
2109  and for a sufficient continuous length of time so as to allow an 
2110  average reader to observe the notice and read and comprehend the 
2111  entire content of the notice and the agenda. Unless a unit owner 
2112  waives in writing the right to receive notice of the annual 
2113  meeting, the notice of the annual meeting must shall be sent by 
2114  mail, hand delivered, or electronically transmitted to each unit 
2115  owner. An officer of the association must shall provide an 
2116  affidavit or United States Postal Service certificate of 
2117  mailing, to be included in the official records of the 
2118  association, affirming that notices of the association meeting 
2119  were mailed, hand delivered, or electronically transmitted, in 
2120  accordance with this provision, to each unit owner at the 
2121  address last furnished to the association. 
2122         1. After January 1, 1992, The board of administration shall 
2123  be elected by written ballot or voting machine. A proxy may not 
2124  Proxies shall in no event be used in electing the board of 
2125  administration, either in general elections or elections to fill 
2126  vacancies caused by recall, resignation, or otherwise unless 
2127  otherwise provided in this chapter. At least Not less than 60 
2128  days before a scheduled election, the association shall mail, 
2129  deliver, or transmit, whether by separate association mailing, 
2130  delivery, or electronic transmission or included in another 
2131  association mailing, delivery, or electronic transmission, 
2132  including regularly published newsletters, to each unit owner 
2133  entitled to vote, a first notice of the date of the election. 
2134  Any unit owner or other eligible person desiring to be a 
2135  candidate for the board of administration must shall give 
2136  written notice to the association at least not less than 40 days 
2137  before a scheduled election. Together with the written notice 
2138  and agenda as set forth in this section, the association shall 
2139  mail, deliver, or electronically transmit a second notice of 
2140  election to all unit owners entitled to vote therein, together 
2141  with a ballot which lists shall list all candidates. Upon 
2142  request of a candidate, the association shall include an 
2143  information sheet, no larger than 8 1/2 inches by 11 inches, 
2144  which must be furnished by the candidate at least not less than 
2145  35 days before prior to the election, to be included with the 
2146  mailing, delivery, or electronic transmission of the ballot, 
2147  with the costs of mailing, delivery, or transmission and copying 
2148  to be borne by the association. The association is not liable 
2149  has no liability for the contents of the information sheets 
2150  provided by the candidates. In order to reduce costs, the 
2151  association may print or duplicate the information sheets on 
2152  both sides of the paper. The division shall by rule establish 
2153  voting procedures consistent with this subparagraph the 
2154  provisions contained herein, including rules establishing 
2155  procedures for giving notice by electronic transmission and 
2156  rules providing for the secrecy of ballots. Elections shall be 
2157  decided by a plurality of those ballots cast. There is shall be 
2158  no quorum requirement. However, at least 20 percent of the 
2159  eligible voters must cast a ballot in order to have a valid 
2160  election of members of the board of administration. A No unit 
2161  owner may not shall permit any other person to vote his or her 
2162  ballot, and any such ballots improperly cast are shall be deemed 
2163  invalid. A unit owner who needs assistance in casting the ballot 
2164  for the reasons stated in s. 101.051 may obtain assistance in 
2165  casting the ballot. Any unit owner violating this provision may 
2166  be fined by the association in accordance with s. 719.303. The 
2167  regular election must shall occur on the date of the annual 
2168  meeting. The provisions of This subparagraph does shall not 
2169  apply to timeshare cooperatives. Notwithstanding the provisions 
2170  of this subparagraph, an election and balloting are not required 
2171  unless more candidates file a notice of intent to run or are 
2172  nominated than vacancies exist on the board. 
2173         2. Any approval by unit owners called for by this chapter, 
2174  or the applicable cooperative documents, must shall be made at a 
2175  duly noticed meeting of unit owners and is shall be subject to 
2176  all requirements of this chapter or the applicable cooperative 
2177  documents relating to unit owner decisionmaking, except that 
2178  unit owners may take action by written agreement, without 
2179  meetings, on matters for which action by written agreement 
2180  without meetings is expressly allowed by the applicable 
2181  cooperative documents or law any Florida statute which provides 
2182  for the unit owner action. 
2183         3. Unit owners may waive notice of specific meetings if 
2184  allowed by the applicable cooperative documents or law any 
2185  Florida statute. If authorized by the bylaws, notice of meetings 
2186  of the board of administration, shareholder meetings, except 
2187  shareholder meetings called to recall board members under 
2188  paragraph (f), and committee meetings may be given by electronic 
2189  transmission to unit owners who consent to receive notice by 
2190  electronic transmission. 
2191         4. Unit owners shall have the right to participate in 
2192  meetings of unit owners with reference to all designated agenda 
2193  items. However, the association may adopt reasonable rules 
2194  governing the frequency, duration, and manner of unit owner 
2195  participation. 
2196         5. Any unit owner may tape record or videotape meetings of 
2197  the unit owners subject to reasonable rules adopted by the 
2198  division. 
2199         6. Unless otherwise provided in the bylaws, a vacancy 
2200  occurring on the board before the expiration of a term may be 
2201  filled by the affirmative vote of the majority of the remaining 
2202  directors, even if the remaining directors constitute less than 
2203  a quorum, or by the sole remaining director. In the alternative, 
2204  a board may hold an election to fill the vacancy, in which case 
2205  the election procedures must conform to the requirements of 
2206  subparagraph 1. unless the association has opted out of the 
2207  statutory election process, in which case the bylaws of the 
2208  association control. Unless otherwise provided in the bylaws, a 
2209  board member appointed or elected under this subparagraph shall 
2210  fill the vacancy for the unexpired term of the seat being 
2211  filled. Filling vacancies created by recall is governed by 
2212  paragraph (f) and rules adopted by the division. 
2213 
2214  Notwithstanding subparagraphs (b)2. and (d)1., an association 
2215  may, by the affirmative vote of a majority of the total voting 
2216  interests, provide for a different voting and election procedure 
2217  in its bylaws, which vote may be by a proxy specifically 
2218  delineating the different voting and election procedures. The 
2219  different voting and election procedures may provide for 
2220  elections to be conducted by limited or general proxy. 
2221         Section 19. Subsection (5) of section 719.1055, Florida 
2222  Statutes, is amended to read: 
2223         719.1055 Amendment of cooperative documents; alteration and 
2224  acquisition of property.— 
2225         (5) The bylaws must include a provision whereby a 
2226  certificate of compliance from a licensed electrical contractor 
2227  or electrician may be accepted by the association’s board as 
2228  evidence of compliance of the cooperative units with the 
2229  applicable fire and life safety code. Notwithstanding the 
2230  provisions of chapter 633 or of any other code, statute, 
2231  ordinance, administrative rule, or regulation, or any 
2232  interpretation of the foregoing, a cooperative or unit owner is 
2233  not obligated to retrofit the common elements, common areas, 
2234  association property, or units of a residential cooperative with 
2235  a fire sprinkler system or any other form of engineered 
2236  lifesafety life safety system in a building that has been 
2237  certified for occupancy by the applicable governmental entity, 
2238  if the unit owners have voted to forego such retrofitting and 
2239  engineered lifesafety life safety system by the affirmative vote 
2240  of two-thirds of all voting interests in the affected 
2241  cooperative. However, a cooperative may not forego the 
2242  retrofitting with a fire sprinkler system of common areas in a 
2243  high-rise building. For purposes of this subsection, the term 
2244  “high-rise building” means a building that is greater than 75 
2245  feet in height where the building height is measured from the 
2246  lowest level of fire department access to the floor of the 
2247  highest occupiable story. For purposes of this subsection, the 
2248  term “common areas” means any enclosed hallway, corridor, lobby, 
2249  stairwell, or entryway. In no event shall The local authority 
2250  having jurisdiction may not require completion of retrofitting 
2251  of common areas with a sprinkler system or other form of 
2252  engineered lifesafety system before the end of 2019 2014. 
2253         (a) A vote to forego retrofitting may be obtained by 
2254  limited proxy or by a ballot personally cast at a duly called 
2255  membership meeting, or by execution of a written consent by the 
2256  member, and is shall be effective upon the recording of a 
2257  certificate attesting to such vote in the public records of the 
2258  county where the cooperative is located. The association shall 
2259  mail or, hand deliver, or electronically transmit to each unit 
2260  owner written notice at least 14 days before prior to such 
2261  membership meeting in which the vote to forego retrofitting of 
2262  the required fire sprinkler system or any other form of 
2263  engineered lifesafety system is to take place. Within 30 days 
2264  after the association’s opt-out vote, notice of the results of 
2265  the opt-out vote shall be mailed or, hand delivered, or 
2266  electronically transmitted to all unit owners. Evidence of 
2267  compliance with this 30-day notice must shall be made by an 
2268  affidavit executed by the person providing the notice and filed 
2269  among the official records of the association. After such notice 
2270  is provided to each owner, a copy of the such notice shall be 
2271  provided by the current owner to a new owner before prior to 
2272  closing and shall be provided by a unit owner to a renter before 
2273  prior to signing a lease. 
2274         (b) If there has been a previous vote to forego 
2275  retrofitting, a vote to require retrofitting may be obtained at 
2276  a special meeting of the unit owners called by a petition of 
2277  least 10 percent of the voting interests. Such vote may only be 
2278  called once every 3 years. Notice must be provided as required 
2279  for any regularly called meeting of the unit owners, and the 
2280  notice must state the purpose of the meeting. Electronic 
2281  transmission may not be used to provide notice of a meeting 
2282  called in whole or in part for this purpose. 
2283         (c)(b) As part of the information collected annually from 
2284  cooperatives, the division shall require associations to report 
2285  the membership vote and recording of a certificate under this 
2286  subsection and, if retrofitting has been undertaken, the per 
2287  unit cost of such work. The division shall annually report to 
2288  the Division of State Fire Marshal of the Department of 
2289  Financial Services the number of cooperatives that have elected 
2290  to forego retrofitting. 
2291         Section 20. Subsections (3) and (4) of section 719.108, 
2292  Florida Statutes, are amended, and subsection (10) is added to 
2293  that section, to read: 
2294         719.108 Rents and assessments; liability; lien and 
2295  priority; interest; collection; cooperative ownership.— 
2296         (3) Rents and assessments, and installments on them, not 
2297  paid when due bear interest at the rate provided in the 
2298  cooperative documents from the date due until paid. This rate 
2299  may not exceed the rate allowed by law, and, if a no rate is not 
2300  provided in the cooperative documents, then interest accrues 
2301  shall accrue at 18 percent per annum. Also, If the cooperative 
2302  documents or bylaws so provide, the association may charge an 
2303  administrative late fee in addition to such interest, in an 
2304  amount not to exceed the greater of $25 or 5 percent of each 
2305  installment of the assessment for each delinquent installment 
2306  that the payment is late. Any payment received by an association 
2307  must shall be applied first to any interest accrued by the 
2308  association, then to any administrative late fee, then to any 
2309  costs and reasonable attorney’s fees incurred in collection, and 
2310  then to the delinquent assessment. Costs may include delinquency 
2311  letters and other collections efforts by a licensed management 
2312  company or a licensed manager relating to a delinquent 
2313  installment of an assessment incurred before filing a claim of 
2314  lien that does not exceed $75. The foregoing applies shall be 
2315  applicable notwithstanding any restrictive endorsement, 
2316  designation, or instruction placed on or accompanying a payment. 
2317  A late fee is not subject to chapter 687 or s. 719.303(3). 
2318         (4) The association has shall have a lien on each 
2319  cooperative parcel for any unpaid rents and assessments, plus 
2320  interest, any authorized administrative late fees, and any 
2321  reasonable costs for collection services for which the 
2322  association has contracted against the unit owner of the 
2323  cooperative parcel. If authorized by the cooperative documents, 
2324  the said lien shall also secures secure reasonable attorney’s 
2325  fees incurred by the association incident to the collection of 
2326  the rents and assessments or enforcement of such lien. The lien 
2327  is effective from and after the recording of a claim of lien in 
2328  the public records in the county in which the cooperative parcel 
2329  is located which states the description of the cooperative 
2330  parcel, the name of the unit owner, the amount due, and the due 
2331  dates. The lien expires shall expire if a claim of lien is not 
2332  filed within 1 year after the date the assessment was due, and 
2333  the no such lien does not shall continue for a longer period 
2334  than 1 year after the claim of lien has been recorded unless, 
2335  within that time, an action to enforce the lien is commenced in 
2336  a court of competent jurisdiction. Except as otherwise provided 
2337  in this chapter, a lien may not be filed by the association 
2338  against a cooperative parcel until 30 days after the date on 
2339  which a notice of intent to file a lien has been delivered to 
2340  the owner. 
2341         (a) The notice must be sent to the unit owner at the 
2342  address of the unit by first-class United States mail and: 
2343         1. If the most recent address of the unit owner on the 
2344  records of the association is the address of the unit, the 
2345  notice must be sent by registered or certified mail, return 
2346  receipt requested, to the unit owner at the address of the unit. 
2347         2. If the most recent address of the unit owner on the 
2348  records of the association is in the United States, but is not 
2349  the address of the unit, the notice must be sent by registered 
2350  or certified mail, return receipt requested, to the unit owner 
2351  at his or her most recent address. 
2352         3. If the most recent address of the unit owner on the 
2353  records of the association is not in the United States, the 
2354  notice must be sent by first-class United States mail to the 
2355  unit owner at his or her most recent address. 
2356         (b) A notice that is sent pursuant to this subsection is 
2357  deemed delivered upon mailing. No lien may be filed by the 
2358  association against a cooperative parcel until 30 days after the 
2359  date on which a notice of intent to file a lien has been served 
2360  on the unit owner of the cooperative parcel by certified mail or 
2361  by personal service in the manner authorized by chapter 48 and 
2362  the Florida Rules of Civil Procedure. 
2363         (10) If the unit is occupied by a tenant and the share 
2364  owner is delinquent in paying any monetary obligation due to the 
2365  association, the association may make a written demand that the 
2366  tenant pay the future monetary obligations related to the 
2367  cooperative share to the association and the tenant must make 
2368  such payment. The demand is continuing in nature, and upon 
2369  demand, the tenant must pay the monetary obligations to the 
2370  association until the association releases the tenant or the 
2371  tenant discontinues tenancy in the unit. The association must 
2372  mail written notice to the unit owner of the association’s 
2373  demand that the tenant make payments to the association. The 
2374  association shall, upon request, provide the tenant with written 
2375  receipts for payments made. A tenant who acts in good faith in 
2376  response to a written demand from an association is immune from 
2377  any claim from the unit owner. 
2378         (a) If the tenant prepaid rent to the unit owner before 
2379  receiving the demand from the association and provides written 
2380  evidence of paying the rent to the association within 14 days 
2381  after receiving the demand, the tenant must make any subsequent 
2382  rental payments to the association to be credited against the 
2383  monetary obligations of the unit owner to the association. 
2384         (b) The tenant is not liable for increases in the amount of 
2385  the regular monetary obligations due unless the tenant was 
2386  notified in writing of the increase at least 10 days before the 
2387  date on which the rent is due. The liability of the tenant may 
2388  not exceed the amount due from the tenant to the tenants’ 
2389  landlord. The tenant’s landlord shall provide the tenant a 
2390  credit against rents due to the unit owner in the amount of 
2391  monies paid to the association under this section. 
2392         (c) The association may issue notices under s. 83.56 and 
2393  may sue for eviction under ss. 83.59-83.625 as if the 
2394  association were a landlord under part II of chapter 83 if the 
2395  tenant fails to pay a required payment. However, the association 
2396  is not otherwise considered a landlord under chapter 83 and 
2397  specifically has no duties under s. 83.51. 
2398         (d) The tenant does not, by virtue of payment of monetary 
2399  obligations, have any of the rights of a unit owner to vote in 
2400  any election or to examine the books and records of the 
2401  association. 
2402         (e) A court may supersede the effect of this subsection by 
2403  appointing a receiver. 
2404         Section 21. Paragraph (b) of subsection (2) of section 
2405  720.304, Florida Statutes, is amended to read: 
2406         720.304 Right of owners to peaceably assemble; display of 
2407  flag; SLAPP suits prohibited.— 
2408         (2) 
2409         (b) Any homeowner may erect a freestanding flagpole no more 
2410  than 20 feet high on any portion of the homeowner’s real 
2411  property, regardless of any covenants, restrictions, bylaws, 
2412  rules, or requirements of the association, if the flagpole does 
2413  not obstruct sightlines at intersections and is not erected 
2414  within or upon an easement. The homeowner may further display in 
2415  a respectful manner from that flagpole, regardless of any 
2416  covenants, restrictions, bylaws, rules, or requirements of the 
2417  association, one official United States flag, not larger than 4 
2418  1/2 feet by 6 feet, and may additionally display one official 
2419  flag of the State of Florida or the United States Army, Navy, 
2420  Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such 
2421  additional flag must be equal in size to or smaller than the 
2422  United States flag. The flagpole and display are subject to all 
2423  building codes, zoning setbacks, and other applicable 
2424  governmental regulations, including, but not limited to, noise 
2425  and lighting ordinances in the county or municipality in which 
2426  the flagpole is erected and all setback and locational criteria 
2427  contained in the governing documents. 
2428         Section 22. Subsection (2) of section 720.305, Florida 
2429  Statutes, is amended to read: 
2430         720.305 Obligations of members; remedies at law or in 
2431  equity; levy of fines and suspension of use rights.— 
2432         (2) If a member is delinquent for more than 90 days in 
2433  paying a monetary obligation due the association the governing 
2434  documents so provide, an association may suspend, until such 
2435  monetary obligation is paid for a reasonable period of time, the 
2436  rights of a member or a member’s tenants, guests, or invitees, 
2437  or both, to use common areas and facilities and may levy 
2438  reasonable fines of up to, not to exceed $100 per violation, 
2439  against any member or any tenant, guest, or invitee. A fine may 
2440  be levied for on the basis of each day of a continuing 
2441  violation, with a single notice and opportunity for hearing, 
2442  except that a no such fine may not shall exceed $1,000 in the 
2443  aggregate unless otherwise provided in the governing documents. 
2444  A fine of less than $1,000 may shall not become a lien against a 
2445  parcel. In any action to recover a fine, the prevailing party is 
2446  entitled to collect its reasonable attorney’s fees and costs 
2447  from the nonprevailing party as determined by the court. The 
2448  provisions regarding the suspension-of-use rights do not apply 
2449  to the portion of common areas that must be used to provide 
2450  access to the parcel or utility services provided to the parcel. 
2451         (a) A fine or suspension may not be imposed without notice 
2452  of at least 14 days notice to the person sought to be fined or 
2453  suspended and an opportunity for a hearing before a committee of 
2454  at least three members appointed by the board who are not 
2455  officers, directors, or employees of the association, or the 
2456  spouse, parent, child, brother, or sister of an officer, 
2457  director, or employee. If the committee, by majority vote, does 
2458  not approve a proposed fine or suspension, it may not be 
2459  imposed. If the association imposes a fine or suspension, the 
2460  association must provide written notice of such fine or 
2461  suspension by mail or hand delivery to the parcel owner and, if 
2462  applicable, to any tenant, licensee, or invitee of the parcel 
2463  owner. 
2464         (b) The requirements of this subsection do not apply to the 
2465  imposition of suspensions or fines upon any member because of 
2466  the failure of the member to pay assessments or other charges 
2467  when due if such action is authorized by the governing 
2468  documents. 
2469         (b)(c) Suspension of common-area-use rights do shall not 
2470  impair the right of an owner or tenant of a parcel to have 
2471  vehicular and pedestrian ingress to and egress from the parcel, 
2472  including, but not limited to, the right to park. 
2473         Section 23. Subsections (7) and (9) of section 720.306, 
2474  Florida Statutes, are amended to read: 
2475         720.306 Meetings of members; voting and election 
2476  procedures; amendments.— 
2477         (7) ADJOURNMENT.—Unless the bylaws require otherwise, 
2478  adjournment of an annual or special meeting to a different date, 
2479  time, or place must be announced at that meeting before an 
2480  adjournment is taken, or notice must be given of the new date, 
2481  time, or place pursuant to s. 720.303(2). Any business that 
2482  might have been transacted on the original date of the meeting 
2483  may be transacted at the adjourned meeting. If a new record date 
2484  for the adjourned meeting is or must be fixed under s. 607.0707 
2485  s. 617.0707, notice of the adjourned meeting must be given to 
2486  persons who are entitled to vote and are members as of the new 
2487  record date but were not members as of the previous record date. 
2488         (9) ELECTIONS AND BOARD VACANCIES.—Elections of directors 
2489  must be conducted in accordance with the procedures set forth in 
2490  the governing documents of the association. All members of the 
2491  association are shall be eligible to serve on the board of 
2492  directors, and a member may nominate himself or herself as a 
2493  candidate for the board at a meeting where the election is to be 
2494  held. Except as otherwise provided in the governing documents, 
2495  boards of directors must be elected by a plurality of the votes 
2496  cast by eligible voters. Any election dispute between a member 
2497  and an association must be submitted to mandatory binding 
2498  arbitration with the division. Such proceedings must shall be 
2499  conducted in the manner provided by s. 718.1255 and the 
2500  procedural rules adopted by the division. Unless otherwise 
2501  provided in the bylaws, any vacancy occurring on the board 
2502  before the expiration of a term may be filled by an affirmative 
2503  vote of the majority of the remaining directors, even if the 
2504  remaining directors constitute less than a quorum, or by the 
2505  sole remaining director. In the alternative, a board may hold an 
2506  election to fill the vacancy, in which case the election 
2507  procedures must conform to the requirements of the governing 
2508  documents. Unless otherwise provided in the bylaws, a board 
2509  member appointed or elected under this section is appointed for 
2510  the unexpired term of the seat being filled. Filling vacancies 
2511  created by recall is governed by s. 720.303(10) and rules 
2512  adopted by the division. 
2513         Section 24. Subsection (8) is added to section 720.3085, 
2514  Florida Statutes, to read: 
2515         720.3085 Payment for assessments; lien claims.— 
2516         (8) If the parcel is occupied by a tenant and the parcel 
2517  owner is delinquent in paying any monetary obligation due to the 
2518  association, the association may demand that the tenant pay to 
2519  the association the future monetary obligations related to the 
2520  parcel. The demand is continuing in nature, and upon demand, the 
2521  tenant must continue to pay the monetary obligations until the 
2522  association releases the tenant or the tenant discontinues 
2523  tenancy in the parcel. A tenant who acts in good faith in 
2524  response to a written demand from an association is immune from 
2525  any claim from the parcel owner. 
2526         (a) If the tenant prepaid rent to the parcel owner before 
2527  receiving the demand from the association and provides written 
2528  evidence of paying the rent to the association within 14 days 
2529  after receiving the demand, the tenant must make any subsequent 
2530  rental payments to the association to be credited against the 
2531  monetary obligations of the parcel owner to the association. The 
2532  association shall, upon request, provide the tenant with written 
2533  receipts for payments made. The association shall mail written 
2534  notice to the parcel owner of the association’s demand that the 
2535  tenant pay monetary obligations to the association. 
2536         (b) The tenant is not liable for increases in the amount of 
2537  the monetary obligations due unless the tenant was notified in 
2538  writing of the increase at least 10 days before the date on 
2539  which the rent is due. The tenant shall be given a credit 
2540  against rents due to the parcel owner in the amount of 
2541  assessments paid to the association. 
2542         (c) The association may issue notices under s. 83.56 and 
2543  may sue for eviction under ss. 83.59-83.625 as if the 
2544  association were a landlord under part II of chapter 83 if the 
2545  tenant fails to pay a monetary obligation. However, the 
2546  association is not otherwise considered a landlord under chapter 
2547  83 and specifically has no duties under s. 83.51. 
2548         (d) The tenant does not, by virtue of payment of monetary 
2549  obligations, have any of the rights of a parcel owner to vote in 
2550  any election or to examine the books and records of the 
2551  association. 
2552         (e) A court may supersede the effect of this subsection by 
2553  appointing a receiver. 
2554         Section 25. Subsection (6) is added to section 720.31, 
2555  Florida Statutes, to read: 
2556         720.31 Recreational leaseholds; right to acquire; 
2557  escalation clauses.— 
2558         (6) An association may enter into agreements to acquire 
2559  leaseholds, memberships, and other possessory or use interests 
2560  in lands or facilities, including, but not limited to, country 
2561  clubs, golf courses, marinas, submerged land, parking areas, 
2562  conservation areas, and other recreational facilities. An 
2563  association may enter into such agreements regardless of whether 
2564  the lands or facilities are contiguous to the lands of the 
2565  community or whether such lands or facilities are intended to 
2566  provide enjoyment, recreation, or other use or benefit to the 
2567  owners. All leaseholds, memberships, and other possessory or use 
2568  interests existing or created at the time of recording the 
2569  declaration must be stated and fully described in the 
2570  declaration. Subsequent to recording the declaration, agreements 
2571  acquiring leaseholds, memberships, or other possessory or use 
2572  interests not entered into within 12 months after recording the 
2573  declaration may be entered into only if authorized by the 
2574  declaration as a material alteration or substantial addition to 
2575  the common areas or association property. If the declaration is 
2576  silent, any such transaction requires the approval of 75 percent 
2577  of the total voting interests of the association. The 
2578  declaration may provide that the rental, membership fees, 
2579  operations, replacements, or other expenses are common expenses; 
2580  impose covenants and restrictions concerning their use; and 
2581  contain other provisions not inconsistent with this subsection. 
2582  An association exercising its rights under this subsection may 
2583  join with other associations that are part of the same 
2584  development or with a master association responsible for the 
2585  enforcement of shared covenants, conditions, and restrictions in 
2586  carrying out the intent of this subsection. This subsection is 
2587  intended to clarify law in existence before July 1, 2010. 
2588         Section 26. Paragraph (b) of subsection (2), paragraphs (a) 
2589  and (c) of subsection (5), and paragraphs (b), (c), (d), (f), 
2590  and (g) of subsection (6) of section 720.303, Florida Statutes, 
2591  are amended, and subsection (12) is added to that section, to 
2592  read: 
2593         720.303 Association powers and duties; meetings of board; 
2594  official records; budgets; financial reporting; association 
2595  funds; recalls.— 
2596         (2) BOARD MEETINGS.— 
2597         (b) Members have the right to attend all meetings of the 
2598  board and to speak on any matter placed on the agenda by 
2599  petition of the voting interests for at least 3 minutes. The 
2600  association may adopt written reasonable rules expanding the 
2601  right of members to speak and governing the frequency, duration, 
2602  and other manner of member statements, which rules must be 
2603  consistent with this paragraph and may include a sign-up sheet 
2604  for members wishing to speak. Notwithstanding any other law, the 
2605  requirement that board meetings and committee meetings be open 
2606  to the members is inapplicable to meetings between the board or 
2607  a committee and the association’s attorney to discuss proposed 
2608  or pending litigation, or with respect to meetings of the board 
2609  held for the purpose of discussing personnel matters are not 
2610  required to be open to the members other than directors. 
2611         (5) INSPECTION AND COPYING OF RECORDS.—The official records 
2612  shall be maintained within the state and must be open to 
2613  inspection and available for photocopying by members or their 
2614  authorized agents at reasonable times and places within 10 
2615  business days after receipt of a written request for access. 
2616  This subsection may be complied with by having a copy of the 
2617  official records available for inspection or copying in the 
2618  community. If the association has a photocopy machine available 
2619  where the records are maintained, it must provide parcel owners 
2620  with copies on request during the inspection if the entire 
2621  request is limited to no more than 25 pages. 
2622         (a) The failure of an association to provide access to the 
2623  records within 10 business days after receipt of a written 
2624  request submitted by certified mail, return receipt requested, 
2625  creates a rebuttable presumption that the association willfully 
2626  failed to comply with this subsection. 
2627         (c) The association may adopt reasonable written rules 
2628  governing the frequency, time, location, notice, records to be 
2629  inspected, and manner of inspections, but may not require impose 
2630  a requirement that a parcel owner to demonstrate any proper 
2631  purpose for the inspection, state any reason for the inspection, 
2632  or limit a parcel owner’s right to inspect records to less than 
2633  one 8-hour business day per month. The association may impose 
2634  fees to cover the costs of providing copies of the official 
2635  records, including, without limitation, the costs of copying. 
2636  The association may charge up to 50 cents per page for copies 
2637  made on the association’s photocopier. If the association does 
2638  not have a photocopy machine available where the records are 
2639  kept, or if the records requested to be copied exceed 25 pages 
2640  in length, the association may have copies made by an outside 
2641  vendor or association management company personnel and may 
2642  charge the actual cost of copying, including any reasonable 
2643  costs involving personnel fees and charges at an hourly rate for 
2644  vendor or employee time to cover administrative costs to the 
2645  vendor or association. The association shall maintain an 
2646  adequate number of copies of the recorded governing documents, 
2647  to ensure their availability to members and prospective members. 
2648  Notwithstanding the provisions of this paragraph, the following 
2649  records are shall not be accessible to members or parcel owners: 
2650         1. Any record protected by the lawyer-client privilege as 
2651  described in s. 90.502 and any record protected by the work 
2652  product privilege, including, but not limited to, any record 
2653  prepared by an association attorney or prepared at the 
2654  attorney’s express direction which reflects a mental impression, 
2655  conclusion, litigation strategy, or legal theory of the attorney 
2656  or the association and which was prepared exclusively for civil 
2657  or criminal litigation or for adversarial administrative 
2658  proceedings or which was prepared in anticipation of imminent 
2659  civil or criminal litigation or imminent adversarial 
2660  administrative proceedings until the conclusion of the 
2661  litigation or adversarial administrative proceedings. 
2662         2. Information obtained by an association in connection 
2663  with the approval of the lease, sale, or other transfer of a 
2664  parcel. 
2665         3. Disciplinary, health, insurance, and Personnel records 
2666  of the association’s employees, including, but not limited to, 
2667  disciplinary, payroll, health, and insurance records. 
2668         4. Medical records of parcel owners or community residents. 
2669         5. Social security numbers, driver’s license numbers, 
2670  credit card numbers, electronic mailing addresses, telephone 
2671  numbers, emergency contact information, any addresses for a 
2672  parcel owner other than as provided for association notice 
2673  requirements, and other personal identifying information of any 
2674  person, excluding the person’s name, parcel designation, mailing 
2675  address, and property address. 
2676         6. Any electronic security measure that is used by the 
2677  association to safeguard data, including passwords. 
2678         7. The software and operating system used by the 
2679  association which allows the manipulation of data, even if the 
2680  owner owns a copy of the same software used by the association. 
2681  The data is part of the official records of the association. 
2682         (6) BUDGETS.— 
2683         (b) In addition to annual operating expenses, the budget 
2684  may include reserve accounts for capital expenditures and 
2685  deferred maintenance for which the association is responsible. 
2686  If reserve accounts are not established pursuant to paragraph 
2687  (d), funding of such reserves is limited to the extent that the 
2688  governing documents do not limit increases in assessments, 
2689  including reserves. If the budget of the association includes 
2690  reserve accounts established pursuant to paragraph (d), such 
2691  reserves shall be determined, maintained, and waived in the 
2692  manner provided in this subsection. Once an association provides 
2693  for reserve accounts pursuant to paragraph (d) in the budget, 
2694  the association shall thereafter determine, maintain, and waive 
2695  reserves in compliance with this subsection. This section does 
2696  not preclude the termination of a reserve account established 
2697  pursuant to this paragraph upon approval of a majority of the 
2698  total voting interests of the association. Upon such approval, 
2699  the terminating reserve account shall be removed from the 
2700  budget. 
2701         (c)1. If the budget of the association does not provide for 
2702  reserve accounts pursuant to paragraph (d) governed by this 
2703  subsection and the association is responsible for the repair and 
2704  maintenance of capital improvements that may result in a special 
2705  assessment if reserves are not provided, each financial report 
2706  for the preceding fiscal year required by subsection (7) must 
2707  shall contain the following statement in conspicuous type: 
2708 
2709         THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR 
2710         RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED 
2711         MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS. 
2712         OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS 
2713         PURSUANT TO THE PROVISIONS OF SECTION 720.303(6), 
2714         FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT 
2715         LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF 
2716         THE ASSOCIATION BY VOTE OF THE MEMBERS AT A MEETING OR 
2717         BY WRITTEN CONSENT. 
2718         2. If the budget of the association does provide for 
2719  funding accounts for deferred expenditures, including, but not 
2720  limited to, funds for capital expenditures and deferred 
2721  maintenance, but such accounts are not created or established 
2722  pursuant to paragraph (d), each financial report for the 
2723  preceding fiscal year required under subsection (7) must also 
2724  contain the following statement in conspicuous type: 
2725 
2726         THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED 
2727         VOLUNTARY DEFERRED EXPENDITURE ACCOUNTS, INCLUDING 
2728         CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE, SUBJECT 
2729         TO LIMITS ON FUNDING CONTAINED IN OUR GOVERNING 
2730         DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO 
2731         PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 
2732         720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT 
2733         SUBJECT TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET 
2734         FORTH IN THAT STATUTE, NOR ARE RESERVES CALCULATED IN 
2735         ACCORDANCE WITH THAT STATUTE. 
2736         (d) An association is shall be deemed to have provided for 
2737  reserve accounts if when reserve accounts have been initially 
2738  established by the developer or if when the membership of the 
2739  association affirmatively elects to provide for reserves. If 
2740  reserve accounts are not initially provided for by the 
2741  developer, the membership of the association may elect to do so 
2742  upon the affirmative approval of not less than a majority of the 
2743  total voting interests of the association. Such approval may be 
2744  obtained attained by vote of the members at a duly called 
2745  meeting of the membership or by the upon a written consent of 
2746  executed by not less than a majority of the total voting 
2747  interests of the association in the community. The approval 
2748  action of the membership must shall state that reserve accounts 
2749  shall be provided for in the budget and must designate the 
2750  components for which the reserve accounts are to be established. 
2751  Upon approval by the membership, the board of directors shall 
2752  include provide for the required reserve accounts for inclusion 
2753  in the budget in the next fiscal year following the approval and 
2754  in each year thereafter. Once established as provided in this 
2755  subsection, the reserve accounts must shall be funded or 
2756  maintained or shall have their funding waived in the manner 
2757  provided in paragraph (f). 
2758         (f) After one or more Once a reserve account or reserve 
2759  accounts are established, the membership of the association, 
2760  upon a majority vote at a meeting at which a quorum is present, 
2761  may provide for no reserves or less reserves than required by 
2762  this section. If a meeting of the unit owners has been called to 
2763  determine whether to waive or reduce the funding of reserves and 
2764  no such result is not achieved or a quorum is not present, the 
2765  reserves as included in the budget shall go into effect. After 
2766  the turnover, the developer may vote its voting interest to 
2767  waive or reduce the funding of reserves. Any vote taken pursuant 
2768  to this subsection to waive or reduce reserves is shall be 
2769  applicable only to one budget year. 
2770         (g) Funding formulas for reserves authorized by this 
2771  section must shall be based on either a separate analysis of 
2772  each of the required assets or a pooled analysis of two or more 
2773  of the required assets. 
2774         1. If the association maintains separate reserve accounts 
2775  for each of the required assets, the amount of the contribution 
2776  to each reserve account is shall be the sum of the following two 
2777  calculations: 
2778         a. The total amount necessary, if any, to bring a negative 
2779  component balance to zero. 
2780         b. The total estimated deferred maintenance expense or 
2781  estimated replacement cost of the reserve component less the 
2782  estimated balance of the reserve component as of the beginning 
2783  of the period for which the budget will be in effect. The 
2784  remainder, if greater than zero, shall be divided by the 
2785  estimated remaining useful life of the component. 
2786 
2787  The formula may be adjusted each year for changes in estimates 
2788  and deferred maintenance performed during the year and may 
2789  include factors such as inflation and earnings on invested 
2790  funds. 
2791         2. If the association maintains a pooled account of two or 
2792  more of the required reserve assets, the amount of the 
2793  contribution to the pooled reserve account as disclosed on the 
2794  proposed budget may shall not be less than that required to 
2795  ensure that the balance on hand at the beginning of the period 
2796  for which the budget will go into effect plus the projected 
2797  annual cash inflows over the remaining estimated useful life of 
2798  all of the assets that make up the reserve pool are equal to or 
2799  greater than the projected annual cash outflows over the 
2800  remaining estimated useful lives of all of the assets that make 
2801  up the reserve pool, based on the current reserve analysis. The 
2802  projected annual cash inflows may include estimated earnings 
2803  from investment of principal and accounts receivable minus the 
2804  allowance for doubtful accounts. The reserve funding formula may 
2805  shall not include any type of balloon payments. 
2806         (12) COMPENSATION PROHIBITED.—A director, officer, or 
2807  committee member of the association may not directly receive any 
2808  salary or compensation from the association for the performance 
2809  of duties as a director, officer, or committee member and may 
2810  not in any other way benefit financially from service to the 
2811  association. This subsection does not preclude: 
2812         (a) Participation by such person in a financial benefit 
2813  accruing to all or a significant number of members as a result 
2814  of actions lawfully taken by the board or a committee of which 
2815  he or she is a member, including, but not limited to, routine 
2816  maintenance, repair, or replacement of community assets. 
2817         (b) Reimbursement for out-of-pocket expenses incurred by 
2818  such person on behalf of the association, subject to approval in 
2819  accordance with procedures established by the association’s 
2820  governing documents or, in the absence of such procedures, in 
2821  accordance with an approval process established by the board. 
2822         (c) Any recovery of insurance proceeds derived from a 
2823  policy of insurance maintained by the association for the 
2824  benefit of its members. 
2825         (d) Any fee or compensation authorized in the governing 
2826  documents. 
2827         (e) Any fee or compensation authorized in advance by a vote 
2828  of a majority of the voting interests voting in person or by 
2829  proxy at a meeting of the members. 
2830         (f) A developer or its representative from serving as a 
2831  director, officer, or committee member of the association and 
2832  benefitting financially from service to the association. 
2833         Section 27. Subsections (8) and (9) of section 720.306, 
2834  Florida Statutes, are amended to read: 
2835         720.306 Meetings of members; voting and election 
2836  procedures; amendments.— 
2837         (8) PROXY VOTING.—The members have the right, unless 
2838  otherwise provided in this subsection or in the governing 
2839  documents, to vote in person or by proxy. 
2840         (a) To be valid, a proxy must be dated, must state the 
2841  date, time, and place of the meeting for which it was given, and 
2842  must be signed by the authorized person who executed the proxy. 
2843  A proxy is effective only for the specific meeting for which it 
2844  was originally given, as the meeting may lawfully be adjourned 
2845  and reconvened from time to time, and automatically expires 90 
2846  days after the date of the meeting for which it was originally 
2847  given. A proxy is revocable at any time at the pleasure of the 
2848  person who executes it. If the proxy form expressly so provides, 
2849  any proxy holder may appoint, in writing, a substitute to act in 
2850  his or her place. 
2851         (b) If the governing documents permit voting by secret 
2852  ballot by members who are not in attendance at a meeting of the 
2853  members for the election of directors, such ballots must be 
2854  placed in an inner envelope with no identifying markings and 
2855  mailed or delivered to the association in an outer envelope 
2856  bearing identifying information reflecting the name of the 
2857  member, the lot or parcel for which the vote is being cast, and 
2858  the signature of the lot or parcel owner casting that ballot. If 
2859  the eligibility of the member to vote is confirmed and no other 
2860  ballot has been submitted for that lot or parcel, the inner 
2861  envelope shall be removed from the outer envelope bearing the 
2862  identification information, placed with the ballots which were 
2863  personally cast, and opened when the ballots are counted. If 
2864  more than one ballot is submitted for a lot or parcel, the 
2865  ballots for that lot or parcel shall be disqualified. Any vote 
2866  by ballot received after the closing of the balloting may not be 
2867  considered. 
2868         (9) ELECTIONS.—Elections of directors must be conducted in 
2869  accordance with the procedures set forth in the governing 
2870  documents of the association. All members of the association are 
2871  shall be eligible to serve on the board of directors, and a 
2872  member may nominate himself or herself as a candidate for the 
2873  board at a meeting where the election is to be held or, if the 
2874  election process allows voting by absentee ballot, in advance of 
2875  the balloting. Except as otherwise provided in the governing 
2876  documents, boards of directors must be elected by a plurality of 
2877  the votes cast by eligible voters. Any election dispute between 
2878  a member and an association must be submitted to mandatory 
2879  binding arbitration with the division. Such proceedings must 
2880  shall be conducted in the manner provided by s. 718.1255 and the 
2881  procedural rules adopted by the division. 
2882         Section 28. Paragraph (a) of subsection (5) of section 
2883  720.3085, Florida Statutes, is amended to read: 
2884         720.3085 Payment for assessments; lien claims.— 
2885         (5) The association may bring an action in its name to 
2886  foreclose a lien for unpaid assessments secured by a lien in the 
2887  same manner that a mortgage of real property is foreclosed and 
2888  may also bring an action to recover a money judgment for the 
2889  unpaid assessments without waiving any claim of lien. The action 
2890  to foreclose the lien may not be brought until 45 days after the 
2891  parcel owner has been provided notice of the association’s 
2892  intent to foreclose and collect the unpaid amount. The notice 
2893  must be given in the manner provided in paragraph (4)(b), and 
2894  the notice may not be provided until the passage of the 45 days 
2895  required in paragraph (4)(a). 
2896         (a) The association may recover any interest, late charges, 
2897  costs, and reasonable attorney’s fees incurred in a lien 
2898  foreclosure action or in an action to recover a money judgment 
2899  for the unpaid assessments. Costs may include delinquency 
2900  letters and other collections efforts by a licensed management 
2901  company or a licensed manager relating to a delinquent 
2902  installment of an assessment incurred before filing a claim of 
2903  lien that does not exceed $75. 
2904         Section 29. Section 720.315, Florida Statutes, is created 
2905  to read: 
2906         720.315 Passage of special assessments.—Before turnover, 
2907  the board of directors controlled by the developer may not levy 
2908  a special assessment unless a majority of the parcel owners 
2909  other than the developer have approved the special assessment by 
2910  a majority vote at a duly called special meeting of the 
2911  membership at which a quorum is present. 
2912         Section 30. This act shall take effect July 1, 2010.