Bill Text: FL S1516 | 2011 | Regular Session | Introduced
Bill Title: Community Associations
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1516 Detail]
Download: Florida-2011-S1516-Introduced.html
Florida Senate - 2011 SB 1516 By Senator Ring 32-01556C-11 20111516__ 1 A bill to be entitled 2 An act relating to community associations; amending s. 3 718.111, F.S.; requiring an insurance company insuring 4 condominium association property to provide notice to 5 unit owners if the insurance will be cancelled or not 6 renewed by the association; authorizing a majority of 7 the voting interests of the association to direct the 8 board to obtain substitute coverage; amending s. 9 718.113, F.S.; authorizing the board of a condominium 10 association to install impact glass or other code 11 compliant windows under certain circumstances; 12 amending s. 718.116, F.S.; providing that a 13 condominium association may not be deemed to be the 14 previous owner of a condominium unit under certain 15 circumstances; requiring a tenant to pay all of a unit 16 owner’s outstanding monetary obligations relating to 17 the unit to the condominium association under certain 18 circumstances; amending s. 720.303, F.S.; providing 19 that a member of a homeowners’ association has the 20 right to speak on any matter placed on the agenda of 21 the board of the association for at least 3 minutes; 22 amending s. 720.306, F.S.; specifying additional 23 requirements for elections for members of the board of 24 a homeowners’ association; specifying additional 25 requirements for candidates to be a member of the 26 board of a homeowners’ association; amending s. 27 720.3085, F.S.; providing that a condominium 28 homeowners’ association may not be deemed to be the 29 previous owner of a parcel under certain 30 circumstances; providing an effective date. 31 32 Be It Enacted by the Legislature of the State of Florida: 33 34 Section 1. Paragraph (d) of subsection (11) of section 35 718.111, Florida Statutes, is amended to read: 36 718.111 The association.— 37 (11) INSURANCE.—In order to protect the safety, health, and 38 welfare of the people of the State of Florida and to ensure 39 consistency in the provision of insurance coverage to 40 condominiums and their unit owners, this subsection applies to 41 every residential condominium in the state, regardless of the 42 date of its declaration of condominium. It is the intent of the 43 Legislature to encourage lower or stable insurance premiums for 44 associations described in this subsection. 45 (d) An association controlled by unit owners operating as a 46 residential condominium shall use its best efforts to obtain and 47 maintain adequate property insurance to protect the association, 48 the association property, the common elements, and the 49 condominium property that must be insured by the association 50 pursuant to this subsection. However, if an association having 51 50 or fewer units cancels or does not renew insurance coverage 52 required or permitted under this subsection, the insurance 53 company must notify all unit owners by certified and regular 54 mail at least 30 days before the effective date of a termination 55 of coverage. Upon receipt of the notice, a majority of the 56 voting interests may agree in writing to direct the board to 57 obtain substitute coverage for the association as a common 58 expense. 59 Section 2. Subsection (5) of section 718.113, Florida 60 Statutes, is amended to read: 61 718.113 Maintenance; limitation upon improvement; display 62 of flag; hurricane shutters; display of religious decorations.— 63 (5) Each board of administration shall adopt hurricane 64 shutter specifications for each building within each condominium 65 operated by the association which shall include color, style, 66 and other factors deemed relevant by the board. All 67 specifications adopted by the board mustshallcomply with the 68 applicable building code. 69 (a) The board may, subject to the provisions of s. 70 718.3026, and the approval of a majority of voting interests of 71 the condominium, install hurricane shutters, impact glass or 72 other code-compliant windows, or hurricane protection that 73 complies with or exceeds the applicable building code. However,74or both,except thata vote of the owners is not required if the 75 maintenance, repair, and replacement of hurricane shutters, 76 impact glass, or other code-compliant windowsor other forms of77hurricane protectionare the responsibility of the association 78 pursuant to the declaration of condominium. IfHowever, where79 hurricane protection or laminated glass or window film 80 architecturally designed to function as hurricane protection 81 which complies with or exceeds the current applicable building 82 code has been previously installed, the board may not install 83 hurricane shutters,or otherhurricane protection, or impact 84 glass or other code-compliant windows except upon approval by a 85 majority vote of the voting interests. 86 (b) The association isshall beresponsible for the 87 maintenance, repair, and replacement of the hurricane shutters 88 or other hurricane protection authorized by this subsection if 89 such hurricane shutters or other hurricane protection is the 90 responsibility of the association pursuant to the declaration of 91 condominium. If the hurricane shutters or other hurricane 92 protection authorized by this subsection are the responsibility 93 of the unit owners pursuant to the declaration of condominium, 94 the responsibility for the maintenance, repair, and replacement 95 of such items areshall bethe responsibility of the unit owner. 96 (c) The board may operate shutters installed pursuant to 97 this subsection without permission of the unit owners only if 98wheresuch operation is necessary to preserve and protect the 99 condominium property and association property. The installation, 100 replacement, operation, repair, and maintenance of such shutters 101 in accordance with the procedures set forth in this paragraph 102 areherein shallnotbe deemeda material alteration to the 103 common elements or association property within the meaning of 104 this section. 105 (d) Notwithstanding any provision to the contrary in the 106 condominium documents, if approval is required by the documents, 107 a board mayshallnot refuse to approve the installation or 108 replacement of hurricane shutters by a unit owner conforming to 109 the specifications adopted by the board. 110 Section 3. Subsections (1) and (11) of section 718.116, 111 Florida Statutes, are amended to read: 112 718.116 Assessments; liability; lien and priority; 113 interest; collection.— 114 (1)(a) A unit owner, regardless of how his or her title has 115 been acquired, including by purchase at a foreclosure sale or by 116 deed in lieu of foreclosure, is liable for all assessments which 117 come due while he or she is the unit owner. Additionally, a unit 118 owner is jointly and severally liable with the previous owner 119 for all unpaid assessments that came due up to the time of 120 transfer of title. This liability is without prejudice to any 121 right the owner may have to recover from the previous owner the 122 amounts paid by the owner. Notwithstanding the provisions of 123 this paragraph, the association may not be deemed the previous 124 owner for purposes of joint and several liability for 125 assessments which came due while the association owned the unit 126 or units on which it has foreclosed or taken title via deed in 127 lieu of foreclosure. 128 (b) The liability of a first mortgagee or its successor or 129 assignees who acquire title to a unit by foreclosure or by deed 130 in lieu of foreclosure for the unpaid assessments that became 131 due before the mortgagee’s acquisition of title is limited to 132 the lesser of: 133 1. The unit’s unpaid common expenses and regular periodic 134 assessments which accrued or came due during the 12 months 135 immediately preceding the acquisition of title and for which 136 payment in full has not been received by the association; or 137 2. One percent of the original mortgage debt. The 138 provisions of this paragraph apply only if the first mortgagee 139 joined the association as a defendant in the foreclosure action. 140 Joinder of the association is not required if, on the date the 141 complaint is filed, the association was dissolved or did not 142 maintain an office or agent for service of process at a location 143 which was known to or reasonably discoverable by the mortgagee. 144 (c) The person acquiring title shall pay the amount owed to 145 the association within 30 days after transfer of title. Failure 146 to pay the full amount when due shall entitle the association to 147 record a claim of lien against the parcel and proceed in the 148 same manner as provided in this section for the collection of 149 unpaid assessments. 150 (d) With respect to each timeshare unit, each owner of a 151 timeshare estate therein is jointly and severally liable for the 152 payment of all assessments and other charges levied against or 153 with respect to that unit pursuant to the declaration or bylaws, 154 except to the extent that the declaration or bylaws may provide 155 to the contrary. 156 (e) Notwithstanding the provisions of paragraph (b), a 157 first mortgagee or its successor or assignees who acquire title 158 to a condominium unit as a result of the foreclosure of the 159 mortgage or by deed in lieu of foreclosure of the mortgage shall 160 be exempt from liability for all unpaid assessments attributable 161 to the parcel or chargeable to the previous owner which came due 162 prior to acquisition of title if the first mortgage was recorded 163 prior to April 1, 1992. If, however, the first mortgage was 164 recorded on or after April 1, 1992, or on the date the mortgage 165 was recorded, the declaration included language incorporating by 166 reference future amendments to this chapter, the provisions of 167 paragraph (b) shall apply. 168 (f) The provisions of this subsection are intended to 169 clarify existing law, and shall not be available in any case 170 where the unpaid assessments sought to be recovered by the 171 association are secured by a lien recorded prior to the 172 recording of the mortgage. Notwithstanding the provisions of 173 chapter 48, the association shall be a proper party to intervene 174 in any foreclosure proceeding to seek equitable relief. 175 (g) For purposes of this subsection, the term “successor or 176 assignee” as used with respect to a first mortgagee includes 177 only a subsequent holder of the first mortgage. 178 (11) If the unit is occupied by a tenant and the unit owner 179 is delinquent in paying any monetary obligation due to the 180 association, the association may make a written demand that the 181 tenant pay the outstanding and future monetary obligations 182 related to the condominium unit to the association, and the 183 tenant must make such payment. The demand is continuing in 184 nature and, upon demand, the tenant must pay the monetary 185 obligations to the association until the association releases 186 the tenant or the tenant discontinues tenancy in the unit. The 187 association must mail written notice to the unit owner of the 188 association’s demand that the tenant make payments to the 189 association. The association shall, upon request, provide the 190 tenant with written receipts for payments made. A tenant who 191 acts in good faith in response to a written demand from an 192 association is immune from any claim from the unit owner. 193 (a) If the tenant prepaid rent to the unit owner before 194 receiving the demand from the association and provides written 195 evidence of paying the rent to the association within 14 days 196 after receiving the demand, the tenant shall receive credit for 197 the prepaid rent for the applicable period and must make any 198 subsequent rental payments to the association to be credited 199 against the monetary obligations of the unit owner to the 200 association. 201 (b) The tenant is not liable for increases in the amount of 202 the monetary obligations due unless the tenant was notified in 203 writing of the increase at least 10 days before the date the 204 rent is due. The liability of the tenant may not exceed the 205 amount due from the tenant to the tenant’s landlord. The 206 tenant’s landlord shall provide the tenant a credit against 207 rents due to the unit owner in the amount of moneys paid to the 208 association under this section. 209 (c) The association may issue notices under s. 83.56 and 210 may sue for eviction under ss. 83.59-83.625 as if the 211 association were a landlord under part II of chapter 83 if the 212 tenant fails to pay a required payment to the association. 213 However, the association is not otherwise considered a landlord 214 under chapter 83 and specifically has no duties under s. 83.51. 215 (d) The tenant does not, by virtue of payment of monetary 216 obligations to the association, have any of the rights of a unit 217 owner to vote in any election or to examine the books and 218 records of the association. 219 (e) A court may supersede the effect of this subsection by 220 appointing a receiver. 221 Section 4. Paragraph (b) of subsection (2) of section 222 720.303, Florida Statutes, is amended to read: 223 720.303 Association powers and duties; meetings of board; 224 official records; budgets; financial reporting; association 225 funds; recalls.— 226 (2) BOARD MEETINGS.— 227 (b) Members have the right to attend all meetings of the 228 board and to speak on any matter placed on the agendaby229petition of the voting interestsfor at least 3 minutes. The 230 association may adopt written reasonable rules expanding the 231 right of members to speak and governing the frequency, duration, 232 and other manner of member statements, which rules must be 233 consistent with this paragraph and may include a sign-up sheet 234 for members wishing to speak. Notwithstanding any other law, 235 meetings between the board or a committee and the association’s 236 attorney to discuss proposed or pending litigation or meetings 237 of the board held for the purpose of discussing personnel 238 matters are not required to be open to the members other than 239 directors. 240 Section 5. Subsection (9) of section 720.306, Florida 241 Statutes, is amended to read: 242 720.306 Meetings of members; voting and election 243 procedures; amendments.— 244 (9)(a) ELECTIONS AND BOARD VACANCIES.—Notwithstanding the 245 governing documents of the association, elections of directors 246 must be conducted in accordance with the procedures set forth in 247 s. 718.112(2)(d)3.the governing documents of the association.248 All members of the association are eligible to serve on the 249 board of directors, and a member may nominate himself or herself250as a candidate for the board at a meeting where the election is251to be held or, if the election process allows voting by absentee252ballot, in advance of the balloting.except as otherwise 253 provided in this sectionthe governing documents, boards of254directors must be elected by a plurality of the votes cast by255eligible voters. 256 (b) Co-owners of a parcel may not serve as members of the 257 board of directors at the same time unless they own more than 258 one parcel or unless there are not enough eligible candidates to 259 fill the vacancies on the board at the time of the vacancy. A 260 person who is delinquent in the payment of any fee, fine, or 261 other obligation to the association by more than 90 days is not 262 eligible for board membership. A person who has been convicted 263 of any felony in this state or in a United States District or 264 Territorial Court, or who has been convicted of any offense in 265 another jurisdiction which would be considered a felony if 266 committed in this state, is not eligible for board membership 267 unless such felon’s civil rights have been restored for at least 268 5 years as of the date on which such person seeks election to 269 the board. The validity of an action by the board is not 270 affected if it is later determined that a member of the board is 271 ineligible for board membership due to having been convicted of 272 a felony. 273 (c) Any election dispute between a member and an 274 association must be submitted to mandatory binding arbitration 275 with the division. Such proceedings must be conducted in the 276 manner provided by s. 718.1255 and the procedural rules adopted 277 by the division. Unless otherwise provided in the bylaws, any 278 vacancy occurring on the board before the expiration of a term 279 may be filled by an affirmative vote of the majority of the 280 remaining directors, even if the remaining directors constitute 281 less than a quorum, or by the sole remaining director. In the 282 alternative, a board may hold an election to fill the vacancy, 283 in which case the election procedures must conform to the 284 requirements of the governing documents. Unless otherwise 285 provided in the bylaws, a board member appointed or elected 286 under this section is appointed for the unexpired term of the 287 seat being filled. Filling vacancies created by recall is 288 governed by s. 720.303(10) and rules adopted by the division. 289 Section 6. Subsection (2) of section 720.3085, Florida 290 Statutes, is amended to read: 291 720.3085 Payment for assessments; lien claims.— 292 (2)(a) A parcel owner, regardless of how his or her title 293 to property has been acquired, including by purchase at a 294 foreclosure sale or by deed in lieu of foreclosure, is liable 295 for all assessments that come due while he or she is the parcel 296 owner. The parcel owner’s liability for assessments may not be 297 avoided by waiver or suspension of the use or enjoyment of any 298 common area or by abandonment of the parcel upon which the 299 assessments are made. Notwithstanding the provisions of this 300 paragraph, the association may not be deemed the previous owner 301 for purposes of joint and several liability for assessments 302 which came due while the association owned the parcel or parcels 303 on which it has foreclosed or taken title via deed in lieu of 304 foreclosure. 305 (b) A parcel owner is jointly and severally liable with the 306 previous parcel owner for all unpaid assessments that came due 307 up to the time of transfer of title. This liability is without 308 prejudice to any right the present parcel owner may have to 309 recover any amounts paid by the present owner from the previous 310 owner. 311 (c) Notwithstanding anything to the contrarycontainedin 312 this section, the liability of a first mortgagee, or its 313 successor or assignee as a subsequent holder of the first 314 mortgage who acquires title to a parcel by foreclosure or by 315 deed in lieu of foreclosure for the unpaid assessments that 316 became due before the mortgagee’s acquisition of title, shall be 317 the lesser of: 318 1. The parcel’s unpaid common expenses and regular periodic 319 or special assessments that accrued or came due during the 12 320 months immediately preceding the acquisition of title and for 321 which payment in full has not been received by the association; 322 or 323 2. One percent of the original mortgage debt. 324 325 The limitations on first mortgagee liability provided by this 326 paragraph apply only if the first mortgagee filed suit against 327 the parcel owner and initially joined the association as a 328 defendant in the mortgagee foreclosure action. Joinder of the 329 association is not required if, on the date the complaint is 330 filed, the association was dissolved or did not maintain an 331 office or agent for service of process at a location that was 332 known to or reasonably discoverable by the mortgagee. 333 Section 7. This act shall take effect July 1, 2011.