November 19, 2019
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
       Florida Senate - 2010                                    SB 1196
       
       
       
       By Senator Fasano
       
       
       
       
       11-00506B-10                                          20101196__
    1                        A bill to be entitled                      
    2         An act relating to community associations; creating s.
    3         627.714, F.S.; requiring that coverage under a unit
    4         owner’s policy for certain assessments include at
    5         least a minimum amount of loss assessment coverage;
    6         requiring that every property insurance policy to an
    7         individual unit owner contain a specified provision;
    8         amending s. 633.0215, F.S.; providing an exemption for
    9         certain condominiums from installing a manual fire
   10         alarm system as required in the Life Safety Code if
   11         certain conditions are met; amending s. 718.110, F.S.;
   12         providing for the application of certain amendments to
   13         a declaration of condominium to certain unit owners;
   14         amending s. 718.111, F.S.; providing penalties for any
   15         person who knowingly or intentionally defaces or
   16         destroys certain records of an association with the
   17         intent to harm the association or any of its members;
   18         providing that an association is not responsible for
   19         the use or misuse of certain information obtained
   20         pursuant to state law requiring the maintenance of
   21         certain records of an association; providing an
   22         exception; providing that, notwithstanding the other
   23         requirements, certain records are not accessible to
   24         unit owners; requiring that any rules adopted for the
   25         purpose of setting forth accounting principles or
   26         addressing financial reporting requirements include
   27         certain provisions and standards; extending the
   28         deadline by which an association must mail a copy of
   29         its annual financial report; revising the ranges of
   30         annual revenue upon which certain requirements
   31         relating to an association's financial statements are
   32         based; amending s. 718.112, F.S.; revising
   33         requirements for the reappointment of certain board
   34         members; revising board eligibility requirements;
   35         revising notice requirements for board candidates;
   36         establishing requirements for newly elected board
   37         members; providing that a director or officer
   38         delinquent in the payment of a fee, fine, regular
   39         assessment, or special assessment by more than a
   40         specified number of days is deemed to have abandoned
   41         the office; requiring that a director charged by
   42         information or indictment of certain offenses
   43         involving an association’s funds or property be
   44         removed from office; amending s. 718.115, F.S.;
   45         requiring that certain services obtained pursuant to a
   46         bulk contract as provided in the declaration be deemed
   47         a common expense; requiring that such contracts
   48         contain certain provisions; authorizing the
   49         cancellation of certain contracts; amending s.
   50         718.116, F.S.; limiting the amount of certain costs to
   51         the unit owner; providing an exception; authorizing an
   52         association to demand future regular assessments
   53         related to the condominium unit under specified
   54         conditions; providing that the demand is continuing in
   55         nature; requiring that a tenant continue to pay
   56         assessments until the occurrence of specified events;
   57         requiring the delivery of notice of such demand;
   58         limiting the liability of a tenant; amending s.
   59         718.303, F.S.; authorizing an association to suspend
   60         for a reasonable time the right of a unit owner or the
   61         unit’s occupant, licensee, or invitee to use certain
   62         common elements under certain circumstances; excluding
   63         certain common elements from such authorization;
   64         prohibiting a fine from being levied or a suspension
   65         from being imposed unless the association meets
   66         certain notice requirements; providing circumstances
   67         under which such notice requirements do not apply;
   68         providing procedures and notice requirements for
   69         levying a fine or imposing a suspension; authorizing
   70         an association to suspend voting rights due to
   71         nonpayment of assessments, fines, or other charges
   72         delinquent by a specified number of days under certain
   73         circumstances; amending s. 718.103, F.S.; expanding
   74         the definition of “developer” to include a bulk
   75         assignee or bulk buyer; amending s. 718.301, F.S.;
   76         revising conditions under which unit owners other than
   77         the developer may elect not less than a majority of
   78         the members of the board of administration of an
   79         association; creating part VII of ch. 718, F.S.;
   80         providing a short title; providing legislative
   81         findings and intent; defining the terms “bulk
   82         assignee” and “bulk buyer”; providing for the
   83         assignment of developer rights by a bulk assignee;
   84         specifying liabilities of bulk assignees and bulk
   85         buyers; providing exceptions; providing additional
   86         responsibilities of bulk assignees and bulk buyers;
   87         authorizing certain entities to assign developer
   88         rights to a bulk assignee; limiting the number of bulk
   89         assignees at any given time; providing for the
   90         transfer of control of a board of administration;
   91         providing effects of such transfer on parcels acquired
   92         by a bulk assignee; providing obligations of a bulk
   93         assignee upon the transfer of control of a board of
   94         administration; requiring that a bulk assignee certify
   95         certain information in writing; providing for the
   96         resolution of a conflict between specified provisions
   97         of state law; providing that the failure of a bulk
   98         assignee or bulk buyer to comply with specified
   99         provisions of state law results in the loss of certain
  100         protections and exemptions; requiring that a bulk
  101         assignee or bulk buyer file certain information with
  102         the Division of Florida Condominiums, Timeshares, and
  103         Mobile Homes of the Department of Business and
  104         Professional Regulation before offering any units for
  105         sale or lease in excess of a specified term; requiring
  106         that a copy of such information be provided to a
  107         prospective purchaser; requiring that certain
  108         contracts and disclosure statements contain specified
  109         statements; requiring that a bulk assignee or bulk
  110         buyer comply with certain disclosure requirements;
  111         prohibiting a bulk assignee from taking certain
  112         actions on behalf of an association while the bulk
  113         assignee is in control of the board of administration
  114         of the association and requiring that such bulk
  115         assignee comply with certain requirements; requiring
  116         that a bulk assignee or bulk buyer comply with certain
  117         requirements regarding certain contracts; providing
  118         unit owners with specified protections regarding
  119         certain contracts; requiring that a bulk buyer comply
  120         with certain requirements regarding the transfer of a
  121         unit; prohibiting a person from being classified as a
  122         bulk assignee or bulk buyer unless condominium parcels
  123         were acquired before a specified date; providing for
  124         the determination of the date of acquisition of a
  125         parcel; providing that the assignment of developer
  126         rights to a bulk assignee does not release a developer
  127         from certain liabilities; preserving certain
  128         liabilities for certain parties; amending s. 719.108,
  129         F.S.; authorizing an association to recover charges
  130         incurred in connection with collecting a delinquent
  131         assessment up to a specified maximum amount; providing
  132         a prioritized list for disbursement of payments
  133         received by an association; providing for a lien by an
  134         association on a condominium unit for certain fees and
  135         costs; providing procedures and notice requirements
  136         for the filing of a lien by an association;
  137         authorizing an association to demand future regular
  138         assessments related to a unit under specified
  139         conditions; amending s. 720.304, F.S.; providing that
  140         a flagpole and any flagpole display are subject to
  141         certain codes and regulations; amending s. 720.305,
  142         F.S.; authorizing the association to suspend certain
  143         rights under certain circumstances; providing that
  144         certain provisions regarding the suspension-of-use
  145         rights of an association do not apply to certain
  146         portions of common areas; providing procedures and
  147         notice requirements for levying a fine or imposing a
  148         suspension; amending s. 720.3085, F.S.; authorizing an
  149         association to demand future regular assessments
  150         related to a parcel under specified conditions;
  151         amending s. 720.31, F.S.; authorizing an association
  152         to enter into certain agreements; requiring that
  153         certain items be stated and fully described in the
  154         declaration; limiting an association’s power to enter
  155         into such agreements after a specified period
  156         following the recording of a declaration; requiring
  157         that certain agreements be approved by a specified
  158         percentage of voting interests of an association when
  159         the declaration is silent as to the authority of an
  160         association to enter into such agreement; authorizing
  161         an association to join with other associations or a
  162         master association under certain circumstances and for
  163         specified purposes; repealing s. 553.509(2), F.S.,
  164         relating to public elevators and emergency operation
  165         plans in certain condominiums and multifamily
  166         dwellings; amending s. 720.303, F.S.; revising
  167         provisions relating to homeowners’ association board
  168         meetings, inspection and copying of records, and
  169         reserve accounts of budgets; prohibiting certain
  170         association personnel from receiving a salary or
  171         compensation; providing exceptions; amending s.
  172         720.306, F.S.; providing requirements for secret
  173         ballots; creating s. 720.315, F.S.; prohibiting the
  174         board of directors of a homeowners’ association from
  175         levying a special assessment before turnover of the
  176         association by the developer unless certain conditions
  177         are met; providing an effective date.
  178  
  179  Be It Enacted by the Legislature of the State of Florida:
  180  
  181         Section 1. Section 627.714, Florida Statutes, is created to
  182  read:
  183         627.714Residential condominium unit owner coverage; loss
  184  assessment coverage required; excess coverage provision
  185  required.—For policies issued or renewed on or after July 1,
  186  2010, coverage under a unit owner’s residential property policy
  187  shall include property loss assessment coverage of at least
  188  $2,000 for all assessments made as a result of the same direct
  189  loss to the property, regardless of the number of assessments,
  190  owned by all members of the association collectively when such
  191  loss is of the type of loss covered by the unit owner’s
  192  residential property insurance policy, to which a deductible
  193  shall apply of no more than $250 per direct property loss. If a
  194  deductible was or will be applied to other property loss
  195  sustained by the unit owner resulting from the same direct loss
  196  to the property, no deductible shall apply to the loss
  197  assessment coverage. Every individual unit owner’s residential
  198  property policy must contain a provision stating that the
  199  coverage afforded by such policy is excess coverage over the
  200  amount recoverable under any other policy covering the same
  201  property.
  202         Section 2. Subsection (13) is added to section 633.0215,
  203  Florida Statutes, to read:
  204         633.0215 Florida Fire Prevention Code.—
  205         (13) A condominium that is one or two stories in height and
  206  has an exterior means of egress corridor is exempt from
  207  installing a manual fire alarm system as required in s. 9.6 of
  208  the most recent edition of the Life Safety Code adopted in the
  209  Florida Fire Prevention Code.
  210         Section 3. Subsection (13) of section 718.110, Florida
  211  Statutes, is amended to read:
  212         718.110 Amendment of declaration; correction of error or
  213  omission in declaration by circuit court.—
  214         (13) Any amendment prohibiting restricting unit owners from
  215  renting their units or altering the duration of the rental term
  216  or the number of times unit owners are entitled to rent their
  217  units during a specified period owners’ rights relating to the
  218  rental of units applies only to unit owners who consent to the
  219  amendment and unit owners who acquire title to purchase their
  220  units after the effective date of that amendment.
  221         Section 4. Subsections (12) and (13) of section 718.111,
  222  Florida Statutes, are amended to read:
  223         718.111 The association.—
  224         (12) OFFICIAL RECORDS.—
  225         (a) From the inception of the association, the association
  226  shall maintain each of the following items, when applicable,
  227  which shall constitute the official records of the association:
  228         1. A copy of the plans, permits, warranties, and other
  229  items provided by the developer pursuant to s. 718.301(4).
  230         2. A photocopy of the recorded declaration of condominium
  231  of each condominium operated by the association and of each
  232  amendment to each declaration.
  233         3. A photocopy of the recorded bylaws of the association
  234  and of each amendment to the bylaws.
  235         4. A certified copy of the articles of incorporation of the
  236  association, or other documents creating the association, and of
  237  each amendment thereto.
  238         5. A copy of the current rules of the association.
  239         6. A book or books which contain the minutes of all
  240  meetings of the association, of the board of administration, and
  241  of unit owners, which minutes shall be retained for a period of
  242  not less than 7 years.
  243         7. A current roster of all unit owners and their mailing
  244  addresses, unit identifications, voting certifications, and, if
  245  known, telephone numbers. The association shall also maintain
  246  the electronic mailing addresses and the numbers designated by
  247  unit owners for receiving notice sent by electronic transmission
  248  of those unit owners consenting to receive notice by electronic
  249  transmission. The electronic mailing addresses and numbers
  250  provided by unit owners to receive notice by electronic
  251  transmission shall be removed from association records when
  252  consent to receive notice by electronic transmission is revoked.
  253  However, the association is not liable for an erroneous
  254  disclosure of the electronic mail address or the number for
  255  receiving electronic transmission of notices.
  256         8. All current insurance policies of the association and
  257  condominiums operated by the association.
  258         9. A current copy of any management agreement, lease, or
  259  other contract to which the association is a party or under
  260  which the association or the unit owners have an obligation or
  261  responsibility.
  262         10. Bills of sale or transfer for all property owned by the
  263  association.
  264         11. Accounting records for the association and separate
  265  accounting records for each condominium which the association
  266  operates. All accounting records shall be maintained for a
  267  period of not less than 7 years. Any person who knowingly or
  268  intentionally defaces or destroys accounting records required to
  269  be created and maintained by this chapter during the period for
  270  which such records are required to be maintained pursuant to
  271  this chapter, or who knowingly or intentionally fails to create
  272  or maintain accounting records required to be maintained by this
  273  chapter, with the intent of causing harm to the association or
  274  one or more of its members, is personally subject to a civil
  275  penalty pursuant to s. 718.501(1)(d). The accounting records
  276  shall include, but are not limited to:
  277         a. Accurate, itemized, and detailed records of all receipts
  278  and expenditures.
  279         b. A current account and a monthly, bimonthly, or quarterly
  280  statement of the account for each unit designating the name of
  281  the unit owner, the due date and amount of each assessment, the
  282  amount paid upon the account, and the balance due.
  283         c. All audits, reviews, accounting statements, and
  284  financial reports of the association or condominium.
  285         d. All contracts for work to be performed. Bids for work to
  286  be performed shall also be considered official records and shall
  287  be maintained by the association.
  288         12. Ballots, sign-in sheets, voting proxies, and all other
  289  papers relating to voting by unit owners, which shall be
  290  maintained for a period of 1 year from the date of the election,
  291  vote, or meeting to which the document relates, notwithstanding
  292  paragraph (b).
  293         13. All rental records, when the association is acting as
  294  agent for the rental of condominium units.
  295         14. A copy of the current question and answer sheet as
  296  described by s. 718.504.
  297         15. All other records of the association not specifically
  298  included in the foregoing which are related to the operation of
  299  the association.
  300         16. A copy of the inspection report as provided for in s.
  301  718.301(4)(p).
  302         (b) The official records of the association shall be
  303  maintained within the state for at least 7 years. The records of
  304  the association shall be made available to a unit owner within
  305  45 miles of the condominium property or within the county in
  306  which the condominium property is located within 5 working days
  307  after receipt of written request by the board or its designee.
  308  However, such distance requirement does not apply to an
  309  association governing a timeshare condominium. This paragraph
  310  may be complied with by having a copy of the official records of
  311  the association available for inspection or copying on the
  312  condominium property or association property, or the association
  313  may offer the option of making the records of the association
  314  available to a unit owner either electronically via the Internet
  315  or by allowing the records to be viewed in electronic format on
  316  a computer screen and printed upon request. The association is
  317  not responsible for the use or misuse of the information
  318  provided to an association member or his or her authorized
  319  representative pursuant to the compliance requirements of this
  320  chapter unless the association has an affirmative duty not to
  321  disclose such information pursuant to this chapter.
  322         (c) The official records of the association are open to
  323  inspection by any association member or the authorized
  324  representative of such member at all reasonable times. The right
  325  to inspect the records includes the right to make or obtain
  326  copies, at the reasonable expense, if any, of the association
  327  member. The association may adopt reasonable rules regarding the
  328  frequency, time, location, notice, and manner of record
  329  inspections and copying. The failure of an association to
  330  provide the records within 10 working days after receipt of a
  331  written request shall create a rebuttable presumption that the
  332  association willfully failed to comply with this paragraph. A
  333  unit owner who is denied access to official records is entitled
  334  to the actual damages or minimum damages for the association’s
  335  willful failure to comply with this paragraph. The minimum
  336  damages shall be $50 per calendar day up to 10 days, the
  337  calculation to begin on the 11th working day after receipt of
  338  the written request. The failure to permit inspection of the
  339  association records as provided herein entitles any person
  340  prevailing in an enforcement action to recover reasonable
  341  attorney’s fees from the person in control of the records who,
  342  directly or indirectly, knowingly denied access to the records
  343  for inspection. Any person who knowingly or intentionally
  344  defaces or destroys accounting records that are required by this
  345  chapter to be maintained during the period for which such
  346  records are required to be maintained pursuant to this chapter,
  347  or who knowingly or intentionally fails to create or maintain
  348  accounting records that are required to be created or maintained
  349  by this chapter, with the intent of causing harm to the
  350  association or one or more of its members, is personally subject
  351  to a civil penalty pursuant to s. 718.501(1)(d). The association
  352  shall maintain an adequate number of copies of the declaration,
  353  articles of incorporation, bylaws, and rules, and all amendments
  354  to each of the foregoing, as well as the question and answer
  355  sheet provided for in s. 718.504 and year-end financial
  356  information required in this section, on the condominium
  357  property to ensure their availability to unit owners and
  358  prospective purchasers, and may charge its actual costs for
  359  preparing and furnishing these documents to those requesting the
  360  documents same. Notwithstanding the provisions of this
  361  paragraph, the following records shall not be accessible to unit
  362  owners:
  363         1. Any record protected by the lawyer-client privilege as
  364  described in s. 90.502; and any record protected by the work
  365  product privilege, including any record prepared by an
  366  association attorney or prepared at the attorney’s express
  367  direction; which reflects a mental impression, conclusion,
  368  litigation strategy, or legal theory of the attorney or the
  369  association, and which was prepared exclusively for civil or
  370  criminal litigation or for adversarial administrative
  371  proceedings, or which was prepared in anticipation of imminent
  372  civil or criminal litigation or imminent adversarial
  373  administrative proceedings until the conclusion of the
  374  litigation or adversarial administrative proceedings.
  375         2. Information obtained by an association in connection
  376  with the approval of the lease, sale, or other transfer of a
  377  unit.
  378         3.Personnel records of association employees, including,
  379  but not limited to, disciplinary, payroll, health, and insurance
  380  records.
  381         4.3. Medical records of unit owners.
  382         5.4. Social security numbers, driver’s license numbers,
  383  credit card numbers, e-mail addresses, telephone numbers,
  384  emergency contact information, any addresses of a unit owner
  385  other than as provided to fulfill the association’s notice
  386  requirements, and other personal identifying information of any
  387  person, excluding the person’s name, unit designation, mailing
  388  address, and property address.
  389         6.Any electronic security measure that is used by the
  390  association to safeguard data, including passwords.
  391         7.The software and operating system used by the
  392  association which allows manipulation of data, even if the owner
  393  owns a copy of the same software used by the association. The
  394  data is part of the official records of the association.
  395         (13) FINANCIAL REPORTING.—Within 90 days after the end of
  396  the fiscal year, or annually on a date provided in the bylaws,
  397  the association shall prepare and complete, or contract for the
  398  preparation and completion of, a financial report for the
  399  preceding fiscal year. Within 21 days after the final financial
  400  report is completed by the association or received from the
  401  third party, but not later than 180 120 days after the end of
  402  the fiscal year or other date as provided in the bylaws, the
  403  association shall mail to each unit owner at the address last
  404  furnished to the association by the unit owner, or hand deliver
  405  to each unit owner, a copy of the financial report or a notice
  406  that a copy of the financial report will be mailed or hand
  407  delivered to the unit owner, without charge, upon receipt of a
  408  written request from the unit owner. The division shall adopt
  409  rules setting forth uniform accounting principles and standards
  410  to be used by all associations and shall adopt rules addressing
  411  financial reporting requirements for multicondominium
  412  associations. The rules shall include, but not be limited to,
  413  standards for presenting a summary of association reserves,
  414  including, but not limited to, a good faith estimate disclosing
  415  the annual amount of reserve funds that would be necessary for
  416  the association to fully fund reserves for each reserve item
  417  based on the straight-line accounting method. This disclosure is
  418  not applicable to reserves funded via the pooling method uniform
  419  accounting principles and standards for stating the disclosure
  420  of at least a summary of the reserves, including information as
  421  to whether such reserves are being funded at a level sufficient
  422  to prevent the need for a special assessment and, if not, the
  423  amount of assessments necessary to bring the reserves up to the
  424  level necessary to avoid a special assessment. The person
  425  preparing the financial reports shall be entitled to rely on an
  426  inspection report prepared for or provided to the association to
  427  meet the fiscal and fiduciary standards of this chapter. In
  428  adopting such rules, the division shall consider the number of
  429  members and annual revenues of an association. Financial reports
  430  shall be prepared as follows:
  431         (a) An association that meets the criteria of this
  432  paragraph shall prepare or cause to be prepared a complete set
  433  of financial statements in accordance with generally accepted
  434  accounting principles. The financial statements shall be based
  435  upon the association’s total annual revenues, as follows:
  436         1. An association with total annual revenues of $400,000
  437  $100,000 or more, but less than $600,000 $200,000, shall prepare
  438  compiled financial statements.
  439         2. An association with total annual revenues of at least
  440  $600,000 $200,000, but less than $800,000 $400,000, shall
  441  prepare reviewed financial statements.
  442         3. An association with total annual revenues of $800,000
  443  $400,000 or more shall prepare audited financial statements.
  444         (b)1. An association with total annual revenues of less
  445  than $400,000 $100,000 shall prepare a report of cash receipts
  446  and expenditures.
  447         2. An association that which operates fewer less than 75 50
  448  units, regardless of the association’s annual revenues, shall
  449  prepare a report of cash receipts and expenditures in lieu of
  450  financial statements required by paragraph (a).
  451         3. A report of cash receipts and disbursements must
  452  disclose the amount of receipts by accounts and receipt
  453  classifications and the amount of expenses by accounts and
  454  expense classifications, including, but not limited to, the
  455  following, as applicable: costs for security, professional and
  456  management fees and expenses, taxes, costs for recreation
  457  facilities, expenses for refuse collection and utility services,
  458  expenses for lawn care, costs for building maintenance and
  459  repair, insurance costs, administration and salary expenses, and
  460  reserves accumulated and expended for capital expenditures,
  461  deferred maintenance, and any other category for which the
  462  association maintains reserves.
  463         (c) An association may prepare or cause to be prepared,
  464  without a meeting of or approval by the unit owners:
  465         1. Compiled, reviewed, or audited financial statements, if
  466  the association is required to prepare a report of cash receipts
  467  and expenditures;
  468         2. Reviewed or audited financial statements, if the
  469  association is required to prepare compiled financial
  470  statements; or
  471         3. Audited financial statements if the association is
  472  required to prepare reviewed financial statements.
  473         (d) If approved by a majority of the voting interests
  474  present at a properly called meeting of the association, an
  475  association may prepare or cause to be prepared:
  476         1. A report of cash receipts and expenditures in lieu of a
  477  compiled, reviewed, or audited financial statement;
  478         2. A report of cash receipts and expenditures or a compiled
  479  financial statement in lieu of a reviewed or audited financial
  480  statement; or
  481         3. A report of cash receipts and expenditures, a compiled
  482  financial statement, or a reviewed financial statement in lieu
  483  of an audited financial statement.
  484  
  485  Such meeting and approval must occur before prior to the end of
  486  the fiscal year and is effective only for the fiscal year in
  487  which the vote is taken, except that the approval also may be
  488  effective for the following fiscal year. With respect to an
  489  association to which the developer has not turned over control
  490  of the association, all unit owners, including the developer,
  491  may vote on issues related to the preparation of financial
  492  reports for the first 2 fiscal years of the association’s
  493  operation, beginning with the fiscal year in which the
  494  declaration is recorded. Thereafter, all unit owners except the
  495  developer may vote on such issues until control is turned over
  496  to the association by the developer. Any audit or review
  497  prepared under this section shall be paid for by the developer
  498  if done prior to turnover of control of the association. An
  499  association may not waive the financial reporting requirements
  500  of this section for more than 3 consecutive years.
  501         Section 5. Paragraphs (d), (n), and (o) of subsection (2)
  502  of section 718.112, Florida Statutes, are amended to read:
  503         718.112 Bylaws.—
  504         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
  505  following and, if they do not do so, shall be deemed to include
  506  the following:
  507         (d) Unit owner meetings.—
  508         1. There shall be an annual meeting of the unit owners held
  509  at the location provided in the association bylaws and, if the
  510  bylaws are silent as to the location, the meeting shall be held
  511  within 45 miles of the condominium property. However, such
  512  distance requirement does not apply to an association governing
  513  a timeshare condominium. Unless the bylaws provide otherwise, a
  514  vacancy on the board caused by the expiration of a director’s
  515  term shall be filled by electing a new board member, and the
  516  election shall be by secret ballot; however, if the number of
  517  vacancies equals or exceeds the number of candidates, no
  518  election is required. The terms of all members of the board
  519  shall expire at the annual meeting and such board members may
  520  stand for reelection unless otherwise permitted by the bylaws.
  521  In the event that the bylaws permit staggered terms of no more
  522  than 2 years and upon approval of a majority of the total voting
  523  interests, the association board members may serve 2-year
  524  staggered terms. If the number no person is interested in or
  525  demonstrates an intention to run for the position of a board
  526  members member whose terms have term has expired according to
  527  the provisions of this subparagraph exceeds the number of
  528  eligible members showing interest in or demonstrating an
  529  intention to run for the vacant positions, each such board
  530  member whose term has expired shall become eligible for
  531  reappointment be automatically reappointed to the board of
  532  administration and need not stand for reelection. In a
  533  condominium association of more than 10 units, coowners of a
  534  unit may not serve as members of the board of directors at the
  535  same time unless they own more than one unit and are not co
  536  occupants of a unit or unless there are not enough owners to
  537  fill the vacancies on the board. Any unit owner desiring to be a
  538  candidate for board membership shall comply with sub
  539  subparagraph subparagraph 3.a. A person who has been suspended
  540  or removed by the division under this chapter, or who is
  541  delinquent in the payment of any fee, fine, or special or
  542  regular assessment as provided in paragraph (n), is not eligible
  543  for board membership. A person who has been convicted of any
  544  felony in this state or in a United States District or
  545  Territorial Court, or who has been convicted of any offense in
  546  another jurisdiction that would be considered a felony if
  547  committed in this state, is not eligible for board membership
  548  unless such felon’s civil rights have been restored for a period
  549  of no less than 5 years as of the date on which such person
  550  seeks election to the board. The validity of an action by the
  551  board is not affected if it is later determined that a member of
  552  the board is ineligible for board membership due to having been
  553  convicted of a felony.
  554         2. The bylaws shall provide the method of calling meetings
  555  of unit owners, including annual meetings. Written notice, which
  556  notice must include an agenda, shall be mailed, hand delivered,
  557  or electronically transmitted to each unit owner at least 14
  558  days prior to the annual meeting and shall be posted in a
  559  conspicuous place on the condominium property at least 14
  560  continuous days preceding the annual meeting. Upon notice to the
  561  unit owners, the board shall by duly adopted rule designate a
  562  specific location on the condominium property or association
  563  property upon which all notices of unit owner meetings shall be
  564  posted; however, if there is no condominium property or
  565  association property upon which notices can be posted, this
  566  requirement does not apply. In lieu of or in addition to the
  567  physical posting of notice of any meeting of the unit owners on
  568  the condominium property, the association may, by reasonable
  569  rule, adopt a procedure for conspicuously posting and repeatedly
  570  broadcasting the notice and the agenda on a closed-circuit cable
  571  television system serving the condominium association. However,
  572  if broadcast notice is used in lieu of a notice posted
  573  physically on the condominium property, the notice and agenda
  574  must be broadcast at least four times every broadcast hour of
  575  each day that a posted notice is otherwise required under this
  576  section. When broadcast notice is provided, the notice and
  577  agenda must be broadcast in a manner and for a sufficient
  578  continuous length of time so as to allow an average reader to
  579  observe the notice and read and comprehend the entire content of
  580  the notice and the agenda. Unless a unit owner waives in writing
  581  the right to receive notice of the annual meeting, such notice
  582  shall be hand delivered, mailed, or electronically transmitted
  583  to each unit owner. Notice for meetings and notice for all other
  584  purposes shall be mailed to each unit owner at the address last
  585  furnished to the association by the unit owner, or hand
  586  delivered to each unit owner. However, if a unit is owned by
  587  more than one person, the association shall provide notice, for
  588  meetings and all other purposes, to that one address which the
  589  developer initially identifies for that purpose and thereafter
  590  as one or more of the owners of the unit shall so advise the
  591  association in writing, or if no address is given or the owners
  592  of the unit do not agree, to the address provided on the deed of
  593  record. An officer of the association, or the manager or other
  594  person providing notice of the association meeting, shall
  595  provide an affidavit or United States Postal Service certificate
  596  of mailing, to be included in the official records of the
  597  association affirming that the notice was mailed or hand
  598  delivered, in accordance with this provision.
  599         3.a. The members of the board shall be elected by written
  600  ballot or voting machine. Proxies shall in no event be used in
  601  electing the board, either in general elections or elections to
  602  fill vacancies caused by recall, resignation, or otherwise,
  603  unless otherwise provided in this chapter. Not less than 60 days
  604  before a scheduled election, the association shall mail,
  605  deliver, or electronically transmit, whether by separate
  606  association mailing or included in another association mailing,
  607  delivery, or transmission, including regularly published
  608  newsletters, to each unit owner entitled to a vote, a first
  609  notice of the date of the election along with a certification
  610  form provided by the division attesting that he or she has read
  611  and understands, to the best of his or her ability, the
  612  governing documents of the association and the provisions of
  613  this chapter and any applicable rules. Any unit owner or other
  614  eligible person desiring to be a candidate for the board must
  615  give written notice of his or her intent to be a candidate to
  616  the association not less than 40 days before a scheduled
  617  election. Together with the written notice and agenda as set
  618  forth in subparagraph 2., the association shall mail, deliver,
  619  or electronically transmit a second notice of the election to
  620  all unit owners entitled to vote therein, together with a ballot
  621  which shall list all candidates. Upon request of a candidate,
  622  the association shall include an information sheet, no larger
  623  than 8 1/2 inches by 11 inches, which must be furnished by the
  624  candidate not less than 35 days before the election, shall along
  625  with the signed certification form provided for in this
  626  subparagraph, to be included with the mailing, delivery, or
  627  transmission of the ballot, with the costs of mailing, delivery,
  628  or electronic transmission and copying to be borne by the
  629  association. The association is not liable for the contents of
  630  the information sheets prepared by the candidates. In order to
  631  reduce costs, the association may print or duplicate the
  632  information sheets on both sides of the paper. The division
  633  shall by rule establish voting procedures consistent with the
  634  provisions contained herein, including rules establishing
  635  procedures for giving notice by electronic transmission and
  636  rules providing for the secrecy of ballots. Elections shall be
  637  decided by a plurality of those ballots cast. There shall be no
  638  quorum requirement; however, at least 20 percent of the eligible
  639  voters must cast a ballot in order to have a valid election of
  640  members of the board. No unit owner shall permit any other
  641  person to vote his or her ballot, and any such ballots
  642  improperly cast shall be deemed invalid, provided any unit owner
  643  who violates this provision may be fined by the association in
  644  accordance with s. 718.303. A unit owner who needs assistance in
  645  casting the ballot for the reasons stated in s. 101.051 may
  646  obtain assistance in casting the ballot. The regular election
  647  shall occur on the date of the annual meeting. The provisions of
  648  this sub-subparagraph subparagraph shall not apply to timeshare
  649  condominium associations. Notwithstanding the provisions of this
  650  sub-subparagraph subparagraph, an election is not required
  651  unless more candidates file notices of intent to run or are
  652  nominated than board vacancies exist.
  653         b.Within 90 days after being elected or appointed to the
  654  board, each newly elected or appointed director shall certify in
  655  writing to the secretary of the association that he or she has
  656  read the association’s declaration of condominium, articles of
  657  incorporation, bylaws, and current written policies; that he or
  658  she will work to uphold such documents and policies to the best
  659  of his or her ability; and that he or she will faithfully
  660  discharge his or her fiduciary responsibility to the
  661  association’s members. In lieu of this written certification,
  662  the newly elected or appointed director may submit a certificate
  663  of satisfactory completion of the educational curriculum
  664  administered by a division-approved condominium education
  665  provider. A director who fails to timely file the written
  666  certification or educational certificate is suspended from
  667  service on the board until he or she complies with the
  668  provisions of this subparagraph. The board may temporarily fill
  669  the vacancy during the period of suspension. The secretary shall
  670  cause the association to retain a director’s written
  671  certification or educational certificate for inspection by the
  672  members for 5 years after a director’s election. Failure to have
  673  such written certification or educational certificate on file
  674  does not affect the validity of any action.
  675         4. Any approval by unit owners called for by this chapter
  676  or the applicable declaration or bylaws, including, but not
  677  limited to, the approval requirement in s. 718.111(8), shall be
  678  made at a duly noticed meeting of unit owners and shall be
  679  subject to all requirements of this chapter or the applicable
  680  condominium documents relating to unit owner decisionmaking,
  681  except that unit owners may take action by written agreement,
  682  without meetings, on matters for which action by written
  683  agreement without meetings is expressly allowed by the
  684  applicable bylaws or declaration or any statute that provides
  685  for such action.
  686         5. Unit owners may waive notice of specific meetings if
  687  allowed by the applicable bylaws or declaration or any statute.
  688  If authorized by the bylaws, notice of meetings of the board of
  689  administration, unit owner meetings, except unit owner meetings
  690  called to recall board members under paragraph (j), and
  691  committee meetings may be given by electronic transmission to
  692  unit owners who consent to receive notice by electronic
  693  transmission.
  694         6. Unit owners shall have the right to participate in
  695  meetings of unit owners with reference to all designated agenda
  696  items. However, the association may adopt reasonable rules
  697  governing the frequency, duration, and manner of unit owner
  698  participation.
  699         7. Any unit owner may tape record or videotape a meeting of
  700  the unit owners subject to reasonable rules adopted by the
  701  division.
  702         8. Unless otherwise provided in the bylaws, any vacancy
  703  occurring on the board before the expiration of a term may be
  704  filled by the affirmative vote of the majority of the remaining
  705  directors, even if the remaining directors constitute less than
  706  a quorum, or by the sole remaining director. In the alternative,
  707  a board may hold an election to fill the vacancy, in which case
  708  the election procedures must conform to the requirements of sub
  709  subparagraph subparagraph 3.a. unless the association governs 10
  710  units or fewer less and has opted out of the statutory election
  711  process, in which case the bylaws of the association control.
  712  Unless otherwise provided in the bylaws, a board member
  713  appointed or elected under this section shall fill the vacancy
  714  for the unexpired term of the seat being filled. Filling
  715  vacancies created by recall is governed by paragraph (j) and
  716  rules adopted by the division.
  717  
  718  Notwithstanding subparagraph subparagraphs (b)2. and sub
  719  subparagraph (d)3.a., an association of 10 or fewer units may,
  720  by the affirmative vote of a majority of the total voting
  721  interests, provide for different voting and election procedures
  722  in its bylaws, which vote may be by a proxy specifically
  723  delineating the different voting and election procedures. The
  724  different voting and election procedures may provide for
  725  elections to be conducted by limited or general proxy.
  726         (n) Director or officer delinquencies.—A director or
  727  officer more than 90 days delinquent in the payment of any
  728  monetary obligation due the association regular assessments
  729  shall be deemed to have abandoned the office, creating a vacancy
  730  in the office to be filled according to law.
  731         (o) Director or officer offenses.—A director or officer
  732  charged by information or indictment with a felony theft or
  733  embezzlement offense involving the association’s funds or
  734  property shall be removed from office, creating a vacancy in the
  735  office to be filled according to law until the end of the period
  736  of the suspension or the end of the director’s term of office,
  737  whichever occurs first. While such director or officer has such
  738  criminal charge pending, he or she may not be appointed or
  739  elected to a position as a director or officer. However, should
  740  the charges be resolved without a finding of guilt, the director
  741  or officer shall be reinstated for the remainder of his or her
  742  term of office, if any.
  743         Section 6. Paragraph (d) of subsection (1) of section
  744  718.115, Florida Statutes, is amended to read:
  745         718.115 Common expenses and common surplus.—
  746         (1)
  747         (d) If so provided in the declaration, the cost of
  748  communications services as defined in chapter 202, information
  749  services, or Internet services a master antenna television
  750  system or duly franchised cable television service obtained
  751  pursuant to a bulk contract shall be deemed a common expense. If
  752  the declaration does not provide for the cost of communications
  753  services as defined in chapter 202, information services, or
  754  Internet services a master antenna television system or duly
  755  franchised cable television service obtained under a bulk
  756  contract as a common expense, the board may enter into such a
  757  contract, and the cost of the service will be a common expense
  758  but allocated on a per-unit basis rather than a percentage basis
  759  if the declaration provides for other than an equal sharing of
  760  common expenses, and any contract entered into before July 1,
  761  1998, in which the cost of the service is not equally divided
  762  among all unit owners, may be changed by vote of a majority of
  763  the voting interests present at a regular or special meeting of
  764  the association, to allocate the cost equally among all units.
  765  The contract shall be for a term of not less than 2 years.
  766         1. Any contract made by the board after the effective date
  767  hereof for communications services as defined in chapter 202,
  768  information services, or Internet services a community antenna
  769  system or duly franchised cable television service may be
  770  canceled by a majority of the voting interests present at the
  771  next regular or special meeting of the association. Any member
  772  may make a motion to cancel the said contract, but if no motion
  773  is made or if such motion fails to obtain the required majority
  774  at the next regular or special meeting, whichever occurs is
  775  sooner, following the making of the contract, then such contract
  776  shall be deemed ratified for the term therein expressed.
  777         2. Any such contract shall provide, and shall be deemed to
  778  provide if not expressly set forth, that any hearing-impaired or
  779  legally blind unit owner who does not occupy the unit with a
  780  non-hearing-impaired or sighted person, or any unit owner
  781  receiving supplemental security income under Title XVI of the
  782  Social Security Act or food stamps as administered by the
  783  Department of Children and Family Services pursuant to s.
  784  414.31, may discontinue the cable or video service without
  785  incurring disconnect fees, penalties, or subsequent service
  786  charges, and, as to such units, the owners shall not be required
  787  to pay any common expenses charge related to such service. If
  788  fewer less than all members of an association share the expenses
  789  of cable or video service television, the expense shall be
  790  shared equally by all participating unit owners. The association
  791  may use the provisions of s. 718.116 to enforce payment of the
  792  shares of such costs by the unit owners receiving cable or video
  793  service television.
  794         Section 7. Paragraph (b) of subsection (5) of section
  795  718.116, Florida Statutes, is amended, and subsection (11) is
  796  added to that section, to read:
  797         718.116 Assessments; liability; lien and priority;
  798  interest; collection.—
  799         (5)
  800         (b) To be valid, a claim of lien must state the description
  801  of the condominium parcel, the name of the record owner, the
  802  name and address of the association, the amount due, and the due
  803  dates. It must be executed and acknowledged by an officer or
  804  authorized agent of the association. No such lien shall be
  805  effective longer than 1 year after the claim of lien was
  806  recorded unless, within that time, an action to enforce the lien
  807  is commenced. The 1-year period shall automatically be extended
  808  for any length of time during which the association is prevented
  809  from filing a foreclosure action by an automatic stay resulting
  810  from a bankruptcy petition filed by the parcel owner or any
  811  other person claiming an interest in the parcel. The claim of
  812  lien shall secure all unpaid assessments which are due and which
  813  may accrue subsequent to the recording of the claim of lien and
  814  before prior to the entry of a certificate of title, as well as
  815  interest and all reasonable costs and attorney’s fees incurred
  816  by the association incident to the collection process. Costs to
  817  the unit owner secured by the association’s claim of lien with
  818  regard to collection letters or any other collection efforts by
  819  management companies or licensed managers as to any delinquent
  820  installment of an assessment may not exceed $75 unless the
  821  management company prepares any letter or estoppel certificate
  822  required by this chapter and charges a reasonable fee related to
  823  the preparation of such letter or estoppel certificate. Upon
  824  payment in full, the person making the payment is entitled to a
  825  satisfaction of the lien.
  826  
  827  After notice of contest of lien has been recorded, the clerk of
  828  the circuit court shall mail a copy of the recorded notice to
  829  the association by certified mail, return receipt requested, at
  830  the address shown in the claim of lien or most recent amendment
  831  to it and shall certify to the service on the face of the
  832  notice. Service is complete upon mailing. After service, the
  833  association has 90 days in which to file an action to enforce
  834  the lien; and, if the action is not filed within the 90-day
  835  period, the lien is void. However, the 90-day period shall be
  836  extended for any length of time that the association is
  837  prevented from filing its action because of an automatic stay
  838  resulting from the filing of a bankruptcy petition by the unit
  839  owner or by any other person claiming an interest in the parcel.
  840         (11)If the unit is occupied by a tenant and the unit owner
  841  is delinquent in the payment of any monetary obligation due to
  842  the association, the association may demand that the tenant pay
  843  to the association the future monetary obligations related to
  844  the condominium unit. The demand is continuing in nature, and
  845  upon demand, the tenant shall continue to pay the monetary
  846  obligations to the association until the association releases
  847  the tenant or the tenant discontinues tenancy in the unit. The
  848  association shall mail written notice to the unit owner of the
  849  association’s demand that the tenant make payments to the
  850  association. The tenant is not liable for increases in the
  851  amount of the monetary obligations due unless the tenant was
  852  reasonably notified of the increase before the day on which the
  853  rent is due. The liability of the tenant may not exceed the
  854  amount due from the tenant to the tenant’s landlord. The
  855  tenant’s landlord shall provide the tenant a credit against
  856  rents due to the unit owner in the amount of monies paid to the
  857  association under this section. The association shall, upon
  858  request, provide the tenant with written receipts for payments
  859  made. The association may issue notices under s. 83.56 and may
  860  sue for eviction under ss. 83.59-83.625 as if the association
  861  were a landlord under part II of chapter 83 if the tenant fails
  862  to pay a required assessment to the association. However, the
  863  association is not otherwise considered a landlord under chapter
  864  83 and specifically has no duties under s. 83.51. The tenant
  865  does not, by virtue of payment of monetary obligations to the
  866  association, have any of the rights of a unit owner to vote in
  867  any election or to examine the books and records of the
  868  association. A court may supersede the effect of this subsection
  869  by appointing a receiver.
  870         Section 8. Section 718.303, Florida Statutes, is amended to
  871  read:
  872         718.303 Obligations of owners and occupants; waiver; levy
  873  of fines, suspension of use or voting rights, and other
  874  nonexclusive remedies in law or equity fine against unit by an
  875  association.—
  876         (1) Each unit owner, each tenant and other invitee, and
  877  each association shall be governed by, and shall comply with the
  878  provisions of, this chapter, the declaration, the documents
  879  creating the association, and the association bylaws and the
  880  provisions thereof shall be deemed expressly incorporated into
  881  any lease of a unit. Actions for damages or for injunctive
  882  relief, or both, for failure to comply with these provisions may
  883  be brought by the association or by a unit owner against:
  884         (a) The association.
  885         (b) A unit owner.
  886         (c) Directors designated by the developer, for actions
  887  taken by them prior to the time control of the association is
  888  assumed by unit owners other than the developer.
  889         (d) Any director who willfully and knowingly fails to
  890  comply with these provisions.
  891         (e) Any tenant leasing a unit, and any other invitee
  892  occupying a unit.
  893  
  894  The prevailing party in any such action or in any action in
  895  which the purchaser claims a right of voidability based upon
  896  contractual provisions as required in s. 718.503(1)(a) is
  897  entitled to recover reasonable attorney’s fees. A unit owner
  898  prevailing in an action between the association and the unit
  899  owner under this section, in addition to recovering his or her
  900  reasonable attorney’s fees, may recover additional amounts as
  901  determined by the court to be necessary to reimburse the unit
  902  owner for his or her share of assessments levied by the
  903  association to fund its expenses of the litigation. This relief
  904  does not exclude other remedies provided by law. Actions arising
  905  under this subsection shall not be deemed to be actions for
  906  specific performance.
  907         (2) A provision of this chapter may not be waived if the
  908  waiver would adversely affect the rights of a unit owner or the
  909  purpose of the provision, except that unit owners or members of
  910  a board of administration may waive notice of specific meetings
  911  in writing if provided by the bylaws. Any instruction given in
  912  writing by a unit owner or purchaser to an escrow agent may be
  913  relied upon by an escrow agent, whether or not such instruction
  914  and the payment of funds thereunder might constitute a waiver of
  915  any provision of this chapter.
  916         (3) If a unit owner is delinquent for more than 90 days in
  917  the payment of a monetary obligation due to the association or
  918  if the declaration or bylaws so provide, the association may
  919  suspend, for a reasonable time, the right of a unit owner or a
  920  unit’s occupant, licensee, or invitee to use common elements,
  921  common facilities, or any other association property. This
  922  subsection does not apply to limited common elements intended to
  923  be used only by that unit, common elements that must be used to
  924  access the unit, utility services provided to the unit, parking
  925  spaces, or elevators. The association may also levy reasonable
  926  fines against a unit for the failure of the owner of the unit,
  927  or its occupant, licensee, or invitee, to comply with any
  928  provision of the declaration, the association bylaws, or
  929  reasonable rules of the association. No fine will become a lien
  930  against a unit. A No fine may not exceed $100 per violation.
  931  However, a fine may be levied on the basis of each day of a
  932  continuing violation, with a single notice and opportunity for
  933  hearing, provided that no such fine shall in the aggregate
  934  exceed $1,000. A No fine may not be levied and a suspension may
  935  not be imposed unless the association first gives except after
  936  giving reasonable notice and opportunity for a hearing to the
  937  unit owner and, if applicable, its occupant, licensee, or
  938  invitee. The hearing must be held before a committee of other
  939  unit owners who are neither board members nor persons residing
  940  in a board member’s household. If the committee does not agree
  941  with the fine or suspension, the fine or suspension may not be
  942  levied or imposed. The provisions of this subsection do not
  943  apply to unoccupied units.
  944         (4)The notice and hearing requirements of subsection (3)
  945  do not apply to the imposition of suspensions or fines against a
  946  unit owner or a unit’s occupant, licensee, or invitee because of
  947  the failure to pay any amounts due the association. If such a
  948  fine or suspension is imposed, the association must levy the
  949  fine or impose a reasonable suspension at a properly noticed
  950  board meeting, and after the imposition of such fine or
  951  suspension, the association must notify the unit owner and, if
  952  applicable, the unit’s occupant, licensee, or invitee by mail or
  953  hand delivery.
  954         (5)An association may also suspend the voting rights of a
  955  member due to nonpayment of any monetary obligation due to the
  956  association which is delinquent in excess of 90 days.
  957         Section 9. Subsection (16) of section 718.103, Florida
  958  Statutes, is amended to read:
  959         718.103 Definitions.—As used in this chapter, the term:
  960         (16) “Developer” means a person who creates a condominium
  961  or offers condominium parcels for sale or lease in the ordinary
  962  course of business, but does not include:
  963         (a) An owner or lessee of a condominium or cooperative unit
  964  who has acquired the unit for his or her own occupancy;, nor
  965  does it include
  966         (b) A cooperative association that which creates a
  967  condominium by conversion of an existing residential cooperative
  968  after control of the association has been transferred to the
  969  unit owners if, following the conversion, the unit owners will
  970  be the same persons who were unit owners of the cooperative and
  971  no units are offered for sale or lease to the public as part of
  972  the plan of conversion;.
  973         (c)A bulk assignee or bulk buyer as defined in s. 718.703;
  974  or
  975         (d) A state, county, or municipal entity is not a developer
  976  for any purposes under this act when it is acting as a lessor
  977  and not otherwise named as a developer in the declaration of
  978  condominium association.
  979         Section 10. Subsection (1) of section 718.301, Florida
  980  Statutes, is amended to read:
  981         718.301 Transfer of association control; claims of defect
  982  by association.—
  983         (1) When unit owners other than the developer own 15
  984  percent or more of the units in a condominium that will be
  985  operated ultimately by an association, the unit owners other
  986  than the developer shall be entitled to elect no less than one
  987  third of the members of the board of administration of the
  988  association. Unit owners other than the developer are entitled
  989  to elect not less than a majority of the members of the board of
  990  administration of an association:
  991         (a) Three years after 50 percent of the units that will be
  992  operated ultimately by the association have been conveyed to
  993  purchasers;
  994         (b) Three months after 90 percent of the units that will be
  995  operated ultimately by the association have been conveyed to
  996  purchasers;
  997         (c) When all the units that will be operated ultimately by
  998  the association have been completed, some of them have been
  999  conveyed to purchasers, and none of the others are being offered
 1000  for sale by the developer in the ordinary course of business;
 1001         (d) When some of the units have been conveyed to purchasers
 1002  and none of the others are being constructed or offered for sale
 1003  by the developer in the ordinary course of business;
 1004         (e) When the developer files a petition seeking protection
 1005  in bankruptcy;
 1006         (f) When a receiver for the developer is appointed by a
 1007  circuit court and is not discharged within 30 days after such
 1008  appointment, unless the court determines within 30 days after
 1009  appointment of the receiver that transfer of control would be
 1010  detrimental to the association or its members; or
 1011         (g) Seven years after recordation of the declaration of
 1012  condominium; or, in the case of an association which may
 1013  ultimately operate more than one condominium, 7 years after
 1014  recordation of the declaration for the first condominium it
 1015  operates; or, in the case of an association operating a phase
 1016  condominium created pursuant to s. 718.403, 7 years after
 1017  recordation of the declaration creating the initial phase,
 1018  whichever occurs first. The developer is entitled to elect at
 1019  least one member of the board of administration of an
 1020  association as long as the developer holds for sale in the
 1021  ordinary course of business at least 5 percent, in condominiums
 1022  with fewer than 500 units, and 2 percent, in condominiums with
 1023  more than 500 units, of the units in a condominium operated by
 1024  the association. Following the time the developer relinquishes
 1025  control of the association, the developer may exercise the right
 1026  to vote any developer-owned units in the same manner as any
 1027  other unit owner except for purposes of reacquiring control of
 1028  the association or selecting the majority members of the board
 1029  of administration.
 1030         Section 11. Part VII of chapter 718, Florida Statutes,
 1031  consisting of sections 718.701, 718.702, 718.703, 718.704,
 1032  718.705, 718.706, 718.707, and 718.708, is created to read:
 1033         718.701Short title.—This part may be cited as the
 1034  “Distressed Condominium Relief Act.”
 1035         718.702Legislative intent.—
 1036         (1)The Legislature acknowledges the massive downturn in
 1037  the condominium market which has transpired throughout the state
 1038  and the impact of such downturn on developers, lenders, unit
 1039  owners, and condominium associations. Numerous condominium
 1040  projects have either failed or are in the process of failing,
 1041  whereby the condominium has a small percentage of third-party
 1042  unit owners as compared to the unsold inventory of units. As a
 1043  result of the inability to find purchasers for this inventory of
 1044  units, which results in part from the devaluing of real estate
 1045  in this state, developers are unable to satisfy the requirements
 1046  of their lenders, leading to defaults on mortgages.
 1047  Consequently, lenders are faced with the task of finding a
 1048  solution to the problem in order to be paid for their
 1049  investments.
 1050         (2)The Legislature recognizes that all of the factors
 1051  listed in this section lead to condominiums becoming distressed,
 1052  resulting in detriment to the unit owners and the condominium
 1053  association on account of the resulting shortage of assessment
 1054  moneys available to support the financial requirements for
 1055  proper maintenance of the condominium. Such shortage and the
 1056  resulting lack of proper maintenance further erodes property
 1057  values. The Legislature finds that individuals and entities
 1058  within Florida and in other states have expressed interest in
 1059  purchasing unsold inventory in one or more condominium projects,
 1060  but are reticent to do so because of accompanying liabilities
 1061  inherited from the original developer, which are by definition
 1062  imputed to the successor purchaser, including a foreclosing
 1063  mortgagee. This results in the potential purchaser having
 1064  unknown and unquantifiable risks, and potential successor
 1065  purchasers are unwilling to accept such risks. The result is
 1066  that condominium projects stagnate, leaving all parties involved
 1067  at an impasse without the ability to find a solution.
 1068         (3)The Legislature finds and declares that it is the
 1069  public policy of this state to protect the interests of
 1070  developers, lenders, unit owners, and condominium associations
 1071  with regard to distressed condominiums, and that there is a need
 1072  for relief from certain provisions of the Florida Condominium
 1073  Act geared toward enabling economic opportunities within these
 1074  condominiums for successor purchasers, including foreclosing
 1075  mortgagees. Such relief would benefit existing unit owners and
 1076  condominium associations. The Legislature further finds and
 1077  declares that this situation cannot be open-ended without
 1078  potentially prejudicing the rights of unit owners and
 1079  condominium associations, and thereby declares that the
 1080  provisions of this part shall be used by purchasers of
 1081  condominium inventory for a specific and defined period.
 1082         718.703Definitions.—As used in this part, the term:
 1083         (1)“Bulk assignee” means a person who:
 1084         (a)Acquires more than seven condominium parcels as set
 1085  forth in s. 718.707; and
 1086         (b)Receives an assignment of some or all of the rights of
 1087  the developer as are set forth in the declaration of condominium
 1088  or in this chapter by a written instrument recorded as an
 1089  exhibit to the deed or as a separate instrument in the public
 1090  records of the county in which the condominium is located.
 1091         (2)“Bulk buyer” means a person who acquires more than
 1092  seven condominium parcels as set forth in s. 718.707 but who
 1093  does not receive an assignment of any developer rights other
 1094  than the right to conduct sales, leasing, and marketing
 1095  activities within the condominium.
 1096         718.704Assignment and assumption of developer rights by
 1097  bulk assignee; bulk buyer.—
 1098         (1)A bulk assignee shall be deemed to have assumed and is
 1099  liable for all duties and responsibilities of the developer
 1100  under the declaration and this chapter, except:
 1101         (a)Warranties of the developer under s. 718.203(1) or s.
 1102  718.618, except for design, construction, development, or repair
 1103  work performed by or on behalf of such bulk assignee;
 1104         (b)The obligation to:
 1105         1.Fund converter reserves under s. 718.618 for a unit that
 1106  was not acquired by the bulk assignee; or
 1107         2.Provide converter warranties on any portion of the
 1108  condominium property except as may be expressly provided by the
 1109  bulk assignee in the contract for purchase and sale executed
 1110  with a purchaser and pertaining to any design, construction,
 1111  development, or repair work performed by or on behalf of the
 1112  bulk assignee;
 1113         (c)The requirement to provide the association with a
 1114  cumulative audit of the association’s finances from the date of
 1115  formation of the condominium association as required by s.
 1116  718.301. However, the bulk assignee shall provide an audit for
 1117  the period for which the bulk assignee elects a majority of the
 1118  members of the board of administration;
 1119         (d)Any liability arising out of or in connection with
 1120  actions taken by the board of administration or the developer
 1121  appointed directors before the bulk assignee elects a majority
 1122  of the members of the board of administration; and
 1123         (e)Any liability for or arising out of the developer’s
 1124  failure to fund previous assessments or to resolve budgetary
 1125  deficits in relation to a developer’s right to guarantee
 1126  assessments, except as otherwise provided in subsection (2).
 1127  
 1128  Further, the bulk assignee is responsible for delivering
 1129  documents and materials in accordance with s. 718.705(3). A bulk
 1130  assignee may expressly assume some or all of the obligations of
 1131  the developer described in paragraphs (a)-(e).
 1132         (2)A bulk assignee receiving the assignment of the rights
 1133  of the developer to guarantee the level of assessments and fund
 1134  budgetary deficits pursuant to s. 718.116 shall be deemed to
 1135  have assumed and is liable for all obligations of the developer
 1136  with respect to such guarantee, including any applicable funding
 1137  of reserves to the extent required by law, for as long as the
 1138  guarantee remains in effect. A bulk assignee not receiving an
 1139  assignment of the right of the developer to guarantee the level
 1140  of assessments and fund budgetary deficits pursuant to s.
 1141  718.116 or a bulk buyer is not deemed to have assumed and is not
 1142  liable for the obligations of the developer with respect to such
 1143  guarantee, but is responsible for payment of assessments in the
 1144  same manner as all other owners of condominium parcels.
 1145         (3)A bulk buyer is liable for the duties and
 1146  responsibilities of the developer under the declaration and this
 1147  chapter only to the extent provided in this part, together with
 1148  any other duties or responsibilities of the developer expressly
 1149  assumed in writing by the bulk buyer.
 1150         (4)An acquirer of condominium parcels is not considered a
 1151  bulk assignee or a bulk buyer if the transfer to such acquirer
 1152  was made before the effective date of this part with the intent
 1153  to hinder, delay, or defraud any purchaser, unit owner, or the
 1154  association, or if the acquirer is a person who would constitute
 1155  an insider under s. 726.102(7).
 1156         (5)An assignment of developer rights to a bulk assignee
 1157  may be made by the developer, a previous bulk assignee, or a
 1158  court of competent jurisdiction acting on behalf of the
 1159  developer or the previous bulk assignee. At any particular time,
 1160  there may be no more than one bulk assignee within a
 1161  condominium, but there may be more than one bulk buyer. If more
 1162  than one acquirer of condominium parcels in the same condominium
 1163  receives an assignment of developer rights from the same person,
 1164  the bulk assignee is the acquirer whose instrument of assignment
 1165  is recorded first in applicable public records.
 1166         718.705Board of administration; transfer of control.—
 1167         (1)For purposes of determining the timing for transfer of
 1168  control of the board of administration of the association to
 1169  unit owners other than the developer under s. 718.301(1)(a) and
 1170  (b), if a bulk assignee is entitled to elect a majority of the
 1171  members of the board, a condominium parcel acquired by the bulk
 1172  assignee shall not be deemed to be conveyed to a purchaser, or
 1173  to be owned by an owner other than the developer, until such
 1174  condominium parcel is conveyed to an owner who is not a bulk
 1175  assignee.
 1176         (2)Unless control of the board of administration of the
 1177  association has already been relinquished pursuant to s.
 1178  718.301(1), the bulk assignee is obligated to relinquish control
 1179  of the association in accordance with s. 718.301 and this part,
 1180  as if the bulk assignee were the developer.
 1181         (3)When a bulk assignee relinquishes control of the board
 1182  of administration as set forth in s. 718.301, the bulk assignee
 1183  shall deliver all of those items required by s. 718.301(4).
 1184  However, the bulk assignee is not required to deliver items and
 1185  documents not in the possession of the bulk assignee during the
 1186  period during which the bulk assignee was entitled to elect not
 1187  less than a majority of the members of the board of
 1188  administration. In conjunction with acquisition of condominium
 1189  parcels, a bulk assignee shall undertake a good faith effort to
 1190  obtain the documents and materials required to be provided to
 1191  the association pursuant to s. 718.301(4). To the extent the
 1192  bulk assignee is not able to obtain all of such documents and
 1193  materials, the bulk assignee shall certify in writing to the
 1194  association the names or descriptions of the documents and
 1195  materials that were not obtainable by the bulk assignee.
 1196  Delivery of the certificate relieves the bulk assignee of
 1197  responsibility for the delivery of the documents and materials
 1198  referenced in the certificate as otherwise required under ss.
 1199  718.112 and 718.301 and this part. The responsibility of the
 1200  bulk assignee for the audit required by s. 718.301(4) shall
 1201  commence as of the date on which the bulk assignee elected a
 1202  majority of the members of the board of administration.
 1203         (4)If a conflict arises between the provisions or
 1204  application of this section and s. 718.301, this section shall
 1205  prevail.
 1206         (5)Failure of a bulk assignee or bulk buyer to
 1207  substantially comply with all the requirements contained in this
 1208  part shall result in the loss of any and all protections or
 1209  exemptions provided under this part.
 1210         718.706Specific provisions pertaining to offering of units
 1211  by a bulk assignee or bulk buyer.—
 1212         (1)Before offering any units for sale or for lease for a
 1213  term exceeding 5 years, a bulk assignee or a bulk buyer shall
 1214  file the following documents with the division and provide such
 1215  documents to a prospective purchaser or tenant:
 1216         (a)An updated prospectus or offering circular, or a
 1217  supplement to the prospectus or offering circular, filed by the
 1218  creating developer prepared in accordance with s. 718.504, which
 1219  shall include the form of contract for purchase and sale in
 1220  compliance with s. 718.503(2);
 1221         (b)An updated Frequently Asked Questions and Answers
 1222  sheet;
 1223         (c)The executed escrow agreement if required under s.
 1224  718.202; and
 1225         (d)The financial information required by s. 718.111(13).
 1226  However, if a financial information report does not exist for
 1227  the fiscal year before acquisition of title by the bulk assignee
 1228  or bulk buyer, or accounting records cannot be obtained in good
 1229  faith by the bulk assignee or the bulk buyer which would permit
 1230  preparation of the required financial information report, the
 1231  bulk assignee or bulk buyer is excused from the requirement of
 1232  this paragraph. However, the bulk assignee or bulk buyer must
 1233  include in the purchase contract the following statement in
 1234  conspicuous type:
 1235         THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
 1236         718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR
 1237         OF THE ASSOCIATION IS NOT AVAILABLE OR CANNOT BE
 1238         CREATED BY THE SELLER AS A RESULT OF INSUFFICIENT
 1239         ACCOUNTING RECORDS OF THE ASSOCIATION.
 1240         (2)Before offering any units for sale or for lease for a
 1241  term exceeding 5 years, a bulk assignee shall file with the
 1242  division and provide to a prospective purchaser a disclosure
 1243  statement that must include, but is not limited to:
 1244         (a)A description of any rights of the developer which have
 1245  been assigned to the bulk assignee;
 1246         (b)The following statement in conspicuous type:
 1247         THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE
 1248         DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS
 1249         APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION,
 1250         DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF
 1251         OF SELLER; and
 1252         (c)If the condominium is a conversion subject to part VI,
 1253  the following statement in conspicuous type:
 1254         THE SELLER HAS NO OBLIGATION TO FUND CONVERTER
 1255         RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S.
 1256         718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY
 1257         EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN
 1258         THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE
 1259         SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO
 1260         ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK
 1261         PERFORMED BY OR ON BEHALF OF THE SELLER.
 1262         (3)In addition to the requirements set forth in subsection
 1263  (1), a bulk assignee or bulk buyer must comply with the
 1264  nondeveloper disclosure requirements set forth in s. 718.503(2)
 1265  before offering any units for sale or for lease for a term
 1266  exceeding 5 years.
 1267         (4)A bulk assignee, while it is in control of the board of
 1268  administration of the association, may not authorize, on behalf
 1269  of the association:
 1270         (a)The waiver of reserves or the reduction of funding of
 1271  the reserves in accordance with s. 718.112(2)(f)2., unless
 1272  approved by a majority of the voting interests not controlled by
 1273  the developer, bulk assignee, and bulk buyer; or
 1274         (b)The use of reserve expenditures for other purposes in
 1275  accordance with s. 718.112(2)(f)3., unless approved by a
 1276  majority of the voting interests not controlled by the
 1277  developer, bulk assignee, and bulk buyer.
 1278         (5)A bulk assignee or a bulk buyer shall comply with all
 1279  the requirements of s. 718.302 regarding any contracts entered
 1280  into by the association during the period the bulk assignee or
 1281  bulk buyer maintains control of the board of administration.
 1282  Unit owners shall be afforded all the protections contained in
 1283  s. 718.302 regarding agreements entered into by the association
 1284  before unit owners other than the developer, bulk assignee, or
 1285  bulk buyer elected a majority of the board of administration.
 1286         (6)A bulk buyer shall comply with the requirements
 1287  contained in the declaration regarding any transfer of a unit,
 1288  including sales, leases, and subleases. A bulk buyer is not
 1289  entitled to any exemptions afforded a developer or successor
 1290  developer under this chapter regarding any transfer of a unit,
 1291  including sales, leases, or subleases.
 1292         718.707Time limitation for classification as bulk assignee
 1293  or bulk buyer.—A person acquiring condominium parcels may not be
 1294  classified as a bulk assignee or bulk buyer unless the
 1295  condominium parcels were acquired before July 1, 2012. The date
 1296  of such acquisition shall be determined by the date of recording
 1297  of a deed or other instrument of conveyance for such parcels in
 1298  the public records of the county in which the condominium is
 1299  located, or by the date of issuance of a certificate of title in
 1300  a foreclosure proceeding with respect to such condominium
 1301  parcels.
 1302         718.708Liability of developers and others.—An assignment
 1303  of developer rights to a bulk assignee or bulk buyer does not
 1304  release the creating developer from any liabilities under the
 1305  declaration or this chapter. This part does not limit the
 1306  liability of the creating developer for claims brought by unit
 1307  owners, bulk assignees, or bulk buyers for violations of this
 1308  chapter by the creating developer, unless specifically excluded
 1309  in this part. Nothing contained within this part waives,
 1310  releases, compromises, or limits the liability of contractors,
 1311  subcontractors, materialmen, manufacturers, architects,
 1312  engineers, or any participant in the design or construction of a
 1313  condominium for any claim brought by an association, unit
 1314  owners, bulk assignees, or bulk buyers arising from the design
 1315  of the condominium, construction defects, misrepresentations
 1316  associated with condominium property, or violations of this
 1317  chapter, unless specifically excluded in this part.
 1318         Section 12. Subsections (3) and (4) of section 719.108,
 1319  Florida Statutes, are amended, and subsection (10) is added to
 1320  that section, to read:
 1321         719.108 Rents and assessments; liability; lien and
 1322  priority; interest; collection; cooperative ownership.—
 1323         (3) Rents and assessments, and installments on them, not
 1324  paid when due bear interest at the rate provided in the
 1325  cooperative documents from the date due until paid. This rate
 1326  may not exceed the rate allowed by law, and, if no rate is
 1327  provided in the cooperative documents, then interest shall
 1328  accrue at 18 percent per annum. Also, if the cooperative
 1329  documents or bylaws so provide, the association may charge an
 1330  administrative late fee in addition to such interest, in an
 1331  amount not to exceed the greater of $25 or 5 percent of each
 1332  installment of the assessment for each delinquent installment
 1333  that the payment is late. Costs to the unit owner secured by the
 1334  association’s claim of lien with regard to collection letters or
 1335  any other collection efforts by management companies or licensed
 1336  managers as to any delinquent installment of an assessment may
 1337  not exceed $75 unless the management company prepares any letter
 1338  or estoppel certificate required by this chapter and charges a
 1339  reasonable fee related to the preparation of such letter or
 1340  estoppel certificate. Any payment received by an association
 1341  shall be applied first to any interest accrued by the
 1342  association, then to any administrative late fee, then to any
 1343  costs and reasonable attorney’s fees incurred in collection,
 1344  then to any reasonable costs for collection services for which
 1345  the association has contracted, and then to the delinquent
 1346  assessment. The foregoing shall be applicable notwithstanding
 1347  any restrictive endorsement, designation, or instruction placed
 1348  on or accompanying a payment. A late fee is not subject to
 1349  chapter 687 or s. 719.303(3).
 1350         (4) The association shall have a lien on each cooperative
 1351  parcel for any unpaid rents and assessments, plus interest, any
 1352  authorized administrative late fees, and any reasonable costs
 1353  for collection services for which the association has contracted
 1354  against the unit owner of the cooperative parcel. If authorized
 1355  by the cooperative documents, said lien shall also secure
 1356  reasonable attorney’s fees incurred by the association incident
 1357  to the collection of the rents and assessments or enforcement of
 1358  such lien. The lien is effective from and after the recording of
 1359  a claim of lien in the public records in the county in which the
 1360  cooperative parcel is located which states the description of
 1361  the cooperative parcel, the name of the unit owner, the amount
 1362  due, and the due dates. The lien shall expire if a claim of lien
 1363  is not filed within 1 year after the date the assessment was
 1364  due, and no such lien shall continue for a longer period than 1
 1365  year after the claim of lien has been recorded unless, within
 1366  that time, an action to enforce the lien is commenced in a court
 1367  of competent jurisdiction. Except as otherwise provided in this
 1368  chapter, a lien may not be filed by the association against a
 1369  cooperative parcel until 30 days after the date on which a
 1370  notice of intent to file a lien has been delivered to the owner
 1371  by registered or certified mail, return receipt requested, and
 1372  by first-class United States mail to the owner at his or her
 1373  last address in the records of the association, if the address
 1374  is within the United States, and delivered to the owner at the
 1375  address of the unit if the owner’s address as reflected in the
 1376  records of the association is not the unit address. If the
 1377  address in the records is outside the United States, notice
 1378  shall be sent to that address and to the unit address by first
 1379  class United States mail. Delivery of the notice shall be deemed
 1380  given upon mailing as required by this subsection. No lien may
 1381  be filed by the association against a cooperative parcel until
 1382  30 days after the date on which a notice of intent to file a
 1383  lien has been served on the unit owner of the cooperative parcel
 1384  by certified mail or by personal service in the manner
 1385  authorized by chapter 48 and the Florida Rules of Civil
 1386  Procedure.
 1387         (10)If the share is occupied by a tenant and the share
 1388  owner is delinquent in the payment of regular assessments, the
 1389  association may demand that the tenant pay to the association
 1390  the future regular assessments related to the condominium share.
 1391  The demand is continuing in nature, and upon demand, the tenant
 1392  shall continue to pay the regular assessments to the association
 1393  until the association releases the tenant or the tenant
 1394  discontinues tenancy in the share. The association shall mail
 1395  written notice to the share owner of the association’s demand
 1396  that the tenant pay regular assessments to the association. The
 1397  tenant is not liable for increases in the amount of the regular
 1398  assessment due unless the tenant was reasonably notified of the
 1399  increase before the day on which the rent is due. The liability
 1400  of the tenant may not exceed the amount due from the tenant to
 1401  the tenants’ landlord. The tenant’s landlord shall provide the
 1402  tenant a credit against rents due to the unit owner in the
 1403  amount of assessments paid to the association under this
 1404  section. The association shall, upon request, provide the tenant
 1405  with written receipts for payments made. The association may
 1406  issue notices under s. 83.56 and may sue for eviction under ss.
 1407  83.59-83.625 as if the association were a landlord under part II
 1408  of chapter 83 if the tenant fails to pay an assessment. However,
 1409  the association is not otherwise considered a landlord under
 1410  chapter 83 and specifically has no duties under s. 83.51. The
 1411  tenant does not, by virtue of payment of assessments, have any
 1412  of the rights of a share owner to vote in any election or to
 1413  examine the books and records of the association. A court may
 1414  supersede the effect of this subsection by appointing a
 1415  receiver.
 1416         Section 13. Paragraph (b) of subsection (2) of section
 1417  720.304, Florida Statutes, is amended to read:
 1418         720.304 Right of owners to peaceably assemble; display of
 1419  flag; SLAPP suits prohibited.—
 1420         (2)
 1421         (b) Any homeowner may erect a freestanding flagpole no more
 1422  than 20 feet high on any portion of the homeowner’s real
 1423  property, regardless of any covenants, restrictions, bylaws,
 1424  rules, or requirements of the association, if the flagpole does
 1425  not obstruct sightlines at intersections and is not erected
 1426  within or upon an easement. The homeowner may further display in
 1427  a respectful manner from that flagpole, regardless of any
 1428  covenants, restrictions, bylaws, rules, or requirements of the
 1429  association, one official United States flag, not larger than 4
 1430  1/2 feet by 6 feet, and may additionally display one official
 1431  flag of the State of Florida or the United States Army, Navy,
 1432  Air Force, Marines, or Coast Guard, or a POW-MIA flag. Such
 1433  additional flag must be equal in size to or smaller than the
 1434  United States flag. The flagpole and display are subject to all
 1435  building codes, zoning setbacks, and other applicable
 1436  governmental regulations, including, but not limited to, noise
 1437  and lighting ordinances in the county or municipality in which
 1438  the flagpole is erected and all setback and locational criteria
 1439  contained in the governing documents.
 1440         Section 14. Subsection (2) of section 720.305, Florida
 1441  Statutes, is amended to read:
 1442         720.305 Obligations of members; remedies at law or in
 1443  equity; levy of fines and suspension of use rights.—
 1444         (2) If a member is delinquent for more than 90 days in the
 1445  payment of a monetary obligation due the association the
 1446  governing documents so provide, an association may suspend,
 1447  until such monetary obligation is paid for a reasonable period
 1448  of time, the rights of a member or a member’s tenants, guests,
 1449  or invitees, or both, to use common areas and facilities and may
 1450  levy reasonable fines of up to, not to exceed $100 per
 1451  violation, against any member or any tenant, guest, or invitee.
 1452  A fine may be levied on the basis of each day of a continuing
 1453  violation, with a single notice and opportunity for hearing,
 1454  except that a no such fine may not shall exceed $1,000 in the
 1455  aggregate unless otherwise provided in the governing documents.
 1456  A fine of less than $1,000 may shall not become a lien against a
 1457  parcel. In any action to recover a fine, the prevailing party is
 1458  entitled to collect its reasonable attorney’s fees and costs
 1459  from the nonprevailing party as determined by the court. The
 1460  provisions regarding the suspension-of-use rights do not apply
 1461  to the portion of common areas that must be used to provide
 1462  access to the parcel or utility services provided to the parcel.
 1463         (a) A fine or suspension may not be imposed without notice
 1464  of at least 14 days to the person sought to be fined or
 1465  suspended and an opportunity for a hearing before a committee of
 1466  at least three members appointed by the board who are not
 1467  officers, directors, or employees of the association, or the
 1468  spouse, parent, child, brother, or sister of an officer,
 1469  director, or employee. If the committee, by majority vote, does
 1470  not approve a proposed fine or suspension, it may not be
 1471  imposed. If the association imposes a fine or suspension, the
 1472  association must provide written notice of such fine or
 1473  suspension by mail or hand delivery to the parcel owner and, if
 1474  applicable, to any tenant, licensee, or invitee of the parcel
 1475  owner.
 1476         (b) The requirements of this subsection do not apply to the
 1477  imposition of suspensions or fines upon any member because of
 1478  the failure of the member to pay assessments or other charges
 1479  when due if such action is authorized by the governing
 1480  documents.
 1481         (b)(c) Suspension of common-area-use rights shall not
 1482  impair the right of an owner or tenant of a parcel to have
 1483  vehicular and pedestrian ingress to and egress from the parcel,
 1484  including, but not limited to, the right to park.
 1485         Section 15. Subsection (8) is added to section 720.3085,
 1486  Florida Statutes, to read:
 1487         720.3085 Payment for assessments; lien claims.—
 1488         (8)If the parcel is occupied by a tenant and the parcel
 1489  owner is delinquent in the payment of regular assessments, the
 1490  association may demand that the tenant pay to the association
 1491  the future regular assessments related to the parcel. The demand
 1492  is continuing in nature, and upon demand, the tenant shall
 1493  continue to pay the regular assessments to the association until
 1494  the association releases the tenant or the tenant discontinues
 1495  tenancy in the parcel. The association shall mail written notice
 1496  to the parcel owner of the association’s demand that the tenant
 1497  pay regular assessments to the association. The tenant is not
 1498  liable for increases in the amount of the regular assessment due
 1499  unless the tenant was reasonably notified of the increase before
 1500  the day on which the rent is due. The tenant shall be given a
 1501  credit against rents due to the parcel owner in the amount of
 1502  assessments paid to the association. The association shall, upon
 1503  request, provide the tenant with written receipts for payments
 1504  made. The association may issue notices under s. 83.56 and may
 1505  sue for eviction under ss. 83.59-83.625 as if the association
 1506  were a landlord under part II of chapter 83 if the tenant fails
 1507  to pay an assessment. However, the association is not otherwise
 1508  considered a landlord under chapter 83 and specifically has no
 1509  duties under s. 83.51. The tenant does not, by virtue of payment
 1510  of assessments, have any of the rights of a parcel owner to vote
 1511  in any election or to examine the books and records of the
 1512  association. A court may supersede the effect of this subsection
 1513  by appointing a receiver.
 1514         Section 16. Subsection (6) is added to section 720.31,
 1515  Florida Statutes, to read:
 1516         720.31 Recreational leaseholds; right to acquire;
 1517  escalation clauses.—
 1518         (6)An association may enter into agreements to acquire
 1519  leaseholds, memberships, and other possessory or use interests
 1520  in lands or facilities including, but not limited to, country
 1521  clubs, golf courses, marinas, submerged land, parking areas,
 1522  conservation areas, and other recreational facilities. An
 1523  association may enter into such agreements regardless of whether
 1524  the lands or facilities are contiguous to the lands of the
 1525  community or whether such lands or facilities are intended to
 1526  provide enjoyment, recreation, or other use or benefit to the
 1527  owners. All leaseholds, memberships, and other possessory or use
 1528  interests existing or created at the time of recording the
 1529  declaration must be stated and fully described in the
 1530  declaration. Subsequent to the recording of the declaration,
 1531  agreements acquiring leaseholds, memberships, or other
 1532  possessory or use interests not entered into within 12 months
 1533  following the recording of the declaration may be entered into
 1534  only if authorized by the declaration for material alterations
 1535  or substantial additions to the common areas or association
 1536  property. If the declaration is silent, any such transaction
 1537  requires the approval of 75 percent of the total voting
 1538  interests of the association. The declaration may provide that
 1539  the rental, membership fees, operations, replacements, or other
 1540  expenses are common expenses; impose covenants and restrictions
 1541  concerning their use; and contain other provisions not
 1542  inconsistent with this subsection. An association exercising its
 1543  rights under this subsection may join with other associations
 1544  that are part of the same development or with a master
 1545  association responsible for the enforcement of shared covenants,
 1546  conditions, and restrictions in carrying out the intent of this
 1547  subsection.
 1548         Section 17. Subsection (2) of section 553.509, Florida
 1549  Statutes, is repealed.
 1550         Section 18. Paragraph (b) of subsection (2), paragraphs (a)
 1551  and (c) of subsection (5), and paragraphs (b), (c), (d), (f),
 1552  and (g) of subsection (6) of section 720.303, Florida Statutes,
 1553  are amended, and subsection (12) is added to that section, to
 1554  read:
 1555         720.303 Association powers and duties; meetings of board;
 1556  official records; budgets; financial reporting; association
 1557  funds; recalls.—
 1558         (2) BOARD MEETINGS.—
 1559         (b) Members have the right to attend all meetings of the
 1560  board and to speak on any matter placed on the agenda by
 1561  petition of the voting interests for at least 3 minutes. The
 1562  association may adopt written reasonable rules expanding the
 1563  right of members to speak and governing the frequency, duration,
 1564  and other manner of member statements, which rules must be
 1565  consistent with this paragraph and may include a sign-up sheet
 1566  for members wishing to speak. Notwithstanding any other law, the
 1567  requirement that board meetings and committee meetings be open
 1568  to the members is inapplicable to meetings between the board or
 1569  a committee and the association’s attorney to discuss proposed
 1570  or pending litigation, or with respect to meetings of the board
 1571  held for the purpose of discussing personnel matters are not
 1572  required to be open to the members other than directors.
 1573         (5) INSPECTION AND COPYING OF RECORDS.—The official records
 1574  shall be maintained within the state and must be open to
 1575  inspection and available for photocopying by members or their
 1576  authorized agents at reasonable times and places within 10
 1577  business days after receipt of a written request for access.
 1578  This subsection may be complied with by having a copy of the
 1579  official records available for inspection or copying in the
 1580  community. If the association has a photocopy machine available
 1581  where the records are maintained, it must provide parcel owners
 1582  with copies on request during the inspection if the entire
 1583  request is limited to no more than 25 pages.
 1584         (a) The failure of an association to provide access to the
 1585  records within 10 business days after receipt of a written
 1586  request submitted by certified mail, return receipt requested,
 1587  creates a rebuttable presumption that the association willfully
 1588  failed to comply with this subsection.
 1589         (c) The association may adopt reasonable written rules
 1590  governing the frequency, time, location, notice, records to be
 1591  inspected, and manner of inspections, but may not require impose
 1592  a requirement that a parcel owner to demonstrate any proper
 1593  purpose for the inspection, state any reason for the inspection,
 1594  or limit a parcel owner’s right to inspect records to less than
 1595  one 8-hour business day per month. The association may impose
 1596  fees to cover the costs of providing copies of the official
 1597  records, including, without limitation, the costs of copying.
 1598  The association may charge up to 50 cents per page for copies
 1599  made on the association’s photocopier. If the association does
 1600  not have a photocopy machine available where the records are
 1601  kept, or if the records requested to be copied exceed 25 pages
 1602  in length, the association may have copies made by an outside
 1603  vendor or association management company personnel and may
 1604  charge the actual cost of copying, including any reasonable
 1605  costs involving personnel fees and charges at an hourly rate for
 1606  vendor or employee time to cover administrative costs to the
 1607  vendor or association. The association shall maintain an
 1608  adequate number of copies of the recorded governing documents,
 1609  to ensure their availability to members and prospective members.
 1610  Notwithstanding the provisions of this paragraph, the following
 1611  records are shall not be accessible to members or parcel owners:
 1612         1. Any record protected by the lawyer-client privilege as
 1613  described in s. 90.502 and any record protected by the work
 1614  product privilege, including, but not limited to, any record
 1615  prepared by an association attorney or prepared at the
 1616  attorney’s express direction which reflects a mental impression,
 1617  conclusion, litigation strategy, or legal theory of the attorney
 1618  or the association and which was prepared exclusively for civil
 1619  or criminal litigation or for adversarial administrative
 1620  proceedings or which was prepared in anticipation of imminent
 1621  civil or criminal litigation or imminent adversarial
 1622  administrative proceedings until the conclusion of the
 1623  litigation or adversarial administrative proceedings.
 1624         2. Information obtained by an association in connection
 1625  with the approval of the lease, sale, or other transfer of a
 1626  parcel.
 1627         3. Disciplinary, health, insurance, and personnel records,
 1628  including payroll records, of the association’s employees.
 1629         4. Medical records of parcel owners or community residents.
 1630         (6) BUDGETS.—
 1631         (b) In addition to annual operating expenses, the budget
 1632  may include reserve accounts for capital expenditures and
 1633  deferred maintenance for which the association is responsible.
 1634  If reserve accounts are not established pursuant to paragraph
 1635  (d), funding of such reserves shall be limited to the extent
 1636  that the governing documents do not limit increases in
 1637  assessments, including reserves. If the budget of the
 1638  association includes reserve accounts established pursuant to
 1639  paragraph (d), such reserves shall be determined, maintained,
 1640  and waived in the manner provided in this subsection. Once an
 1641  association provides for reserve accounts pursuant to paragraph
 1642  (d) in the budget, the association shall thereafter determine,
 1643  maintain, and waive reserves in compliance with this subsection.
 1644  The provisions of this section do not preclude the termination
 1645  of a reserve account established pursuant to this paragraph upon
 1646  approval of a majority of the voting interests of the
 1647  association. Upon such approval, the terminating reserve account
 1648  shall be removed from the budget.
 1649         (c)1. If the budget of the association does not provide for
 1650  reserve accounts pursuant to paragraph (d) governed by this
 1651  subsection and the association is responsible for the repair and
 1652  maintenance of capital improvements that may result in a special
 1653  assessment if reserves are not provided, each financial report
 1654  for the preceding fiscal year required by subsection (7) shall
 1655  contain the following statement in conspicuous type: THE BUDGET
 1656  OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
 1657  CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN
 1658  SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE
 1659  ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
 1660  FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A
 1661  MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY
 1662  VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
 1663         2.If the budget of the association does provide for
 1664  funding accounts for deferred expenditures, including, but not
 1665  limited to, funds for capital expenditures and deferred
 1666  maintenance, but such accounts are not created or established
 1667  pursuant to paragraph (d), each financial report for the
 1668  preceding fiscal year required under subsection (7) must also
 1669  contain the following statement in conspicuous type: THE BUDGET
 1670  OF THE ASSOCIATION PROVIDES FOR LIMITED VOLUNTARY DEFERRED
 1671  EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
 1672  DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
 1673  OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
 1674  PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
 1675  FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
 1676  RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
 1677  ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
 1678         (d) An association shall be deemed to have provided for
 1679  reserve accounts if when reserve accounts have been initially
 1680  established by the developer or if when the membership of the
 1681  association affirmatively elects to provide for reserves. If
 1682  reserve accounts are not initially provided for by the
 1683  developer, the membership of the association may elect to do so
 1684  upon the affirmative approval of not less than a majority of the
 1685  total voting interests of the association. Such approval may be
 1686  obtained attained by vote of the members at a duly called
 1687  meeting of the membership or by the upon a written consent of
 1688  executed by not less than a majority of the total voting
 1689  interests of the association in the community. The approval
 1690  action of the membership shall state that reserve accounts shall
 1691  be provided for in the budget and shall designate the components
 1692  for which the reserve accounts are to be established. Upon
 1693  approval by the membership, the board of directors shall include
 1694  provide for the required reserve accounts for inclusion in the
 1695  budget in the next fiscal year following the approval and in
 1696  each year thereafter. Once established as provided in this
 1697  subsection, the reserve accounts shall be funded or maintained
 1698  or shall have their funding waived in the manner provided in
 1699  paragraph (f).
 1700         (f) After one or more Once a reserve account or reserve
 1701  accounts are established, the membership of the association,
 1702  upon a majority vote at a meeting at which a quorum is present,
 1703  may provide for no reserves or less reserves than required by
 1704  this section. If a meeting of the unit owners has been called to
 1705  determine whether to waive or reduce the funding of reserves and
 1706  no such result is achieved or a quorum is not present, the
 1707  reserves as included in the budget shall go into effect. After
 1708  the turnover, the developer may vote its voting interest to
 1709  waive or reduce the funding of reserves. Any vote taken pursuant
 1710  to this subsection to waive or reduce reserves is shall be
 1711  applicable only to one budget year.
 1712         (g) Funding formulas for reserves authorized by this
 1713  section shall be based on either a separate analysis of each of
 1714  the required assets or a pooled analysis of two or more of the
 1715  required assets.
 1716         1. If the association maintains separate reserve accounts
 1717  for each of the required assets, the amount of the contribution
 1718  to each reserve account is shall be the sum of the following two
 1719  calculations:
 1720         a. The total amount necessary, if any, to bring a negative
 1721  component balance to zero.
 1722         b. The total estimated deferred maintenance expense or
 1723  estimated replacement cost of the reserve component less the
 1724  estimated balance of the reserve component as of the beginning
 1725  of the period for which the budget will be in effect. The
 1726  remainder, if greater than zero, shall be divided by the
 1727  estimated remaining useful life of the component.
 1728  
 1729  The formula may be adjusted each year for changes in estimates
 1730  and deferred maintenance performed during the year and may
 1731  include factors such as inflation and earnings on invested
 1732  funds.
 1733         2. If the association maintains a pooled account of two or
 1734  more of the required reserve assets, the amount of the
 1735  contribution to the pooled reserve account as disclosed on the
 1736  proposed budget may shall not be less than that required to
 1737  ensure that the balance on hand at the beginning of the period
 1738  for which the budget will go into effect plus the projected
 1739  annual cash inflows over the remaining estimated useful life of
 1740  all of the assets that make up the reserve pool are equal to or
 1741  greater than the projected annual cash outflows over the
 1742  remaining estimated useful lives of all of the assets that make
 1743  up the reserve pool, based on the current reserve analysis. The
 1744  projected annual cash inflows may include estimated earnings
 1745  from investment of principal and accounts receivable minus the
 1746  allowance for doubtful accounts. The reserve funding formula may
 1747  shall not include any type of balloon payments.
 1748         (12)COMPENSATION PROHIBITED.—A director, officer, or
 1749  committee member of the association may not directly receive any
 1750  salary or compensation from the association for the performance
 1751  of duties as a director, officer, or committee member and may
 1752  not in any other way benefit financially from service to the
 1753  association. This subsection does not preclude:
 1754         (a)Participation by such person in a financial benefit
 1755  accruing to all or a significant number of members as a result
 1756  of actions lawfully taken by the board or a committee of which
 1757  he or she is a member, including, but not limited to, routine
 1758  maintenance, repair, or replacement of community assets.
 1759         (b)Reimbursement for out-of-pocket expenses incurred by
 1760  such person on behalf of the association, subject to approval in
 1761  accordance with procedures established by the association’s
 1762  governing documents or, in the absence of such procedures, in
 1763  accordance with an approval process established by the board.
 1764         (c)Any recovery of insurance proceeds derived from a
 1765  policy of insurance maintained by the association for the
 1766  benefit of its members.
 1767         (d)Any fee or compensation authorized in the governing
 1768  documents.
 1769         (e)Any fee or compensation authorized in advance by a vote
 1770  of a majority of the voting interests voting in person or by
 1771  proxy at a meeting of the members.
 1772         (f)A developer or its representative from serving as a
 1773  director, officer, or committee member of the association and
 1774  benefitting financially from service to the association.
 1775         Section 19. Subsections (8) and (9) of section 720.306,
 1776  Florida Statutes, are amended to read:
 1777         720.306 Meetings of members; voting and election
 1778  procedures; amendments.—
 1779         (8) PROXY VOTING.—The members have the right, unless
 1780  otherwise provided in this subsection or in the governing
 1781  documents, to vote in person or by proxy.
 1782         (a) To be valid, a proxy must be dated, must state the
 1783  date, time, and place of the meeting for which it was given, and
 1784  must be signed by the authorized person who executed the proxy.
 1785  A proxy is effective only for the specific meeting for which it
 1786  was originally given, as the meeting may lawfully be adjourned
 1787  and reconvened from time to time, and automatically expires 90
 1788  days after the date of the meeting for which it was originally
 1789  given. A proxy is revocable at any time at the pleasure of the
 1790  person who executes it. If the proxy form expressly so provides,
 1791  any proxy holder may appoint, in writing, a substitute to act in
 1792  his or her place.
 1793         (b)If the governing documents permit voting by secret
 1794  ballot by members who are not in attendance at a meeting of the
 1795  members for the election of directors, such ballots shall be
 1796  placed in an inner envelope with no identifying markings and
 1797  mailed or delivered to the association in an outer envelope
 1798  bearing identifying information reflecting the name of the
 1799  member, the lot or parcel for which the vote is being cast, and
 1800  the signature of the lot or parcel owner casting that ballot. If
 1801  the eligibility of the member to vote is confirmed and no other
 1802  ballot has been submitted for that lot or parcel, the inner
 1803  envelope shall be removed from the outer envelope bearing the
 1804  identification information, placed with the ballots which were
 1805  personally cast, and opened when the ballots are counted. If
 1806  more than one ballot is submitted for a lot or parcel, the
 1807  ballots for that lot or parcel shall be disqualified. Any vote
 1808  by ballot received after the closing of the balloting may not be
 1809  considered.
 1810         (9) ELECTIONS.—Elections of directors must be conducted in
 1811  accordance with the procedures set forth in the governing
 1812  documents of the association. All members of the association are
 1813  shall be eligible to serve on the board of directors, and a
 1814  member may nominate himself or herself as a candidate for the
 1815  board at a meeting where the election is to be held or, if the
 1816  election process allows voting by absentee ballot, in advance of
 1817  the balloting. Except as otherwise provided in the governing
 1818  documents, boards of directors must be elected by a plurality of
 1819  the votes cast by eligible voters. Any election dispute between
 1820  a member and an association must be submitted to mandatory
 1821  binding arbitration with the division. Such proceedings shall be
 1822  conducted in the manner provided by s. 718.1255 and the
 1823  procedural rules adopted by the division.
 1824         Section 20. Section 720.315, Florida Statutes, is created
 1825  to read:
 1826         720.315Passage of special assessments before turnover by
 1827  developer.—Before turnover, the board of directors controlled by
 1828  the developer may not levy a special assessment unless a
 1829  majority of the parcel owners other than the developer have
 1830  approved the special assessment by a majority vote at a duly
 1831  called special meeting of the membership at which a quorum is
 1832  present.
 1833         Section 21. This act shall take effect July 1, 2010.

Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2019 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader