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Senate Bill 2498

Senate Bill sb2498

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2004                                  SB 2498

    By Senator Garcia





    7-1506-04                                          See HB 1223

  1                      A bill to be entitled

  2         An act relating to condominium associations;

  3         amending s. 718.103, F.S.; defining the term

  4         "immediate family member"; amending s. 718.104,

  5         F.S.; prohibiting the exercise of multiple

  6         votes by owners of multiple units; amending s.

  7         718.110, F.S.; providing for grandfathering and

  8         modification of rental rights; providing for

  9         certain application of the amendment of unit

10         owners' rental rights; providing certain voting

11         and approval criteria for amendments depriving

12         owners of certain rights; amending s. 718.112,

13         F.S.; requiring super majority votes to reduce

14         certain required reserves; creating s.

15         718.1125, F.S.; imposing eligibility

16         restrictions on association members;

17         authorizing the Division of Florida Land Sales,

18         Condominiums, and Mobile Homes to adopt rules;

19         amending s. 718.116, F.S.; increasing

20         percentage of mortgage debt used as a limit on

21         liability in certain foreclosure actions;

22         requiring notice of intent to record a claim of

23         lien; designating liens inoperative and

24         unenforceable if requirements are not

25         fulfilled; changing priority of claims to which

26         payments for delinquent assessments are made;

27         providing that certain late fees and interest

28         shall not be the sole basis for a lien;

29         providing limitations on recording a claim of

30         lien; requiring a claim of lien and notice for

31         collections to contain a certain statement;

                                  1

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         providing criminal penalties for willful and

 2         malicious imposition, enforcement, or

 3         overvaluation of a lien; requiring a super

 4         majority board approval for excess funds from a

 5         special assessment to be credited against

 6         future assessments; requiring board actions

 7         imposing financial hardships to be ratified by

 8         a majority of all voting interests; amending s.

 9         718.3025, F.S.; requiring additional

10         disclosures for contract validity or

11         enforceability; providing that certain business

12         entities may be contracted by the association

13         to provide certain services if approved by a

14         majority of all unit owners; amending s.

15         718.3026, F.S.; deleting a provision

16         authorizing associations with fewer than 100

17         units to opt out of certain products and

18         services contracting requirements; lowering a

19         threshold percentage to require competitive

20         bidding; requiring a minimum number of bids;

21         specifying nonapplication to all employment

22         contracts; creating s. 718.305, F.S.;

23         authorizing the association to conduct criminal

24         background checks of potential unit owners and

25         tenants; amending s. 718.501, F.S.; requiring

26         mandatory training for certain board members;

27         creating s. 718.5011, F.S.; creating an Office

28         of the Condominium Ombudsman within the

29         division of Florida Land Sales, Condominiums,

30         and Mobile Homes; providing for the office's

31         independence from the division; authorizing the

                                  2

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         Joint Legislative Auditing Committee to appoint

 2         the ombudsman; requiring the ombudsman to be an

 3         attorney; providing for the filling of a vacant

 4         ombudsman position; requiring the ombudsman and

 5         staff to subscribe to the oath of office

 6         required of state officers; prohibiting the

 7         ombudsman and staff from engaging in any other

 8         profession, serving as a representative or

 9         employee of any political party, or receiving

10         remuneration for activities on behalf of

11         political candidates; prohibiting the ombudsman

12         and staff from seeking public office unless

13         resigned from the Office of the Condominium

14         Ombudsman; providing requirements and

15         limitations on office staff; creating s.

16         718.5012, F.S.; providing for powers and duties

17         of the ombudsman; creating s. 718.5013, F.S.;

18         providing for compensation and expenses for the

19         office; authorizing the ombudsman to employ

20         clerical and technical assistants for certain

21         purposes; creating s. 718.5014, F.S.; providing

22         for the location of the ombudsman's office;

23         creating s. 718.5015, F.S.; creating the

24         Advisory Council on Condominiums; providing for

25         membership, functions, meetings, and offices of

26         the council; amending s. 718.504, F.S.;

27         revising provisions relating to certain

28         prospectus and offering circulars; requiring

29         developers of certain condominiums to provide a

30         prospectus including a "Frequently Asked

31         Questions and Answers" document; requiring the

                                  3

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         document to contain certain information;

 2         reducing the threshold amount to be required to

 3         be disclosed in controversy for litigation;

 4         requiring certain information to be included in

 5         the prospectus or offering circular; providing

 6         for a type two transfer of all records,

 7         personnel, property, and unexpended balances of

 8         appropriations, allocations, or other funds for

 9         the administration of pt. VIIII of ch. 468,

10         F.S., from the Division of Professions to the

11         Division of Florida Land Sales, Condominiums,

12         and Mobile Homes within the Department of

13         Business and Professional Regulation;

14         preserving the department's authority to pursue

15         certain remedies; creating s. 718.510, F.S.;

16         requiring the creation of a Condominium Owners'

17         Bill of Rights; providing an effective date.

18  

19  Be It Enacted by the Legislature of the State of Florida:

20  

21         Section 1.  Subsections (18) through (30) of section

22  718.103, Florida Statutes, are renumbered as subsections (19)

23  through (31), respectively, and a new subsection (18) is added

24  to that section, to read:

25         718.103  Definitions.--As used in this chapter, the

26  term:

27         (18)  "Immediate family member" means a parent, child,

28  spouse, sibling, grandparent, grandchild, uncle, aunt, niece,

29  nephew, great-uncle, great-aunt, great-nephew, great-niece,

30  first cousin, or second cousin by blood, marriage, or adoption

31  and includes half and step relatives.

                                  4

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         Section 2.  Paragraph (j) of subsection (4) of section

 2  718.104, Florida Statutes, is amended to read:

 3         718.104  Creation of condominiums; contents of

 4  declaration.--Every condominium created in this state shall be

 5  created pursuant to this chapter.

 6         (4)  The declaration must contain or provide for the

 7  following matters:

 8         (j)  Unit owners' membership and voting rights in the

 9  association. However, any provision in a declaration or bylaws

10  allowing an owner of multiple units in the same condominium to

11  exercise multiple votes shall be void.

12         Section 3.  Subsection (13) is added to section

13  718.110, Florida Statutes, to read:

14         718.110  Amendment of declaration; correction of error

15  or omission in declaration by circuit court; grandfathering

16  and modification of certain rights.--

17         (13)(a)  Unless expressly stated in the amendment, any

18  amendment restricting unit owners' rights relating to the

19  rental of units, keeping of pets, or allocation of parking

20  spaces shall apply only to unit owners who purchase their unit

21  after the effective date of that amendment.

22         (b)  Notwithstanding any other provision of law, or of

23  the declaration or bylaws, if an amendment expressly deprives

24  current unit owners of any part of their rights mentioned in

25  subsection (a), it must be approved by at least three-fourths

26  of the voting interests. A declaration or an amendment to a

27  declaration may provide for a higher super majority vote

28  requirement.

29         Section 4.  Paragraph (f) of subsection (2) of section

30  718.112, Florida Statutes, is amended to read:

31         718.112  Bylaws.--

                                  5

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         (2)  REQUIRED PROVISIONS.--The bylaws shall provide for

 2  the following and, if they do not do so, shall be deemed to

 3  include the following:

 4         (f)  Annual budget.--

 5         1.  The proposed annual budget of common expenses shall

 6  be detailed and shall show the amounts budgeted by accounts

 7  and expense classifications, including, if applicable, but not

 8  limited to, those expenses listed in s. 718.504(21). A

 9  multicondominium association shall adopt a separate budget of

10  common expenses for each condominium the association operates

11  and shall adopt a separate budget of common expenses for the

12  association. In addition, if the association maintains limited

13  common elements with the cost to be shared only by those

14  entitled to use the limited common elements as provided for in

15  s. 718.113(1), the budget or a schedule attached thereto shall

16  show amounts budgeted therefor. If, after turnover of control

17  of the association to the unit owners, any of the expenses

18  listed in s. 718.504(21) are not applicable, they need not be

19  listed.

20         2.  In addition to annual operating expenses, the

21  budget shall include reserve accounts for capital expenditures

22  and deferred maintenance. These accounts shall include, but

23  are not limited to, roof replacement, building painting, and

24  pavement resurfacing, regardless of the amount of deferred

25  maintenance expense or replacement cost, and for any other

26  item for which the deferred maintenance expense or replacement

27  cost exceeds $10,000. The amount to be reserved shall be

28  computed by means of a formula which is based upon estimated

29  remaining useful life and estimated replacement cost or

30  deferred maintenance expense of each reserve item. The

31  association may adjust replacement reserve assessments

                                  6

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  annually to take into account any changes in estimates or

 2  extension of the useful life of a reserve item caused by

 3  deferred maintenance. This subsection does not apply to an

 4  adopted budget in which the members of an association have

 5  determined, by a two-thirds majority vote at a duly called

 6  meeting of the association, to provide no reserves or less

 7  reserves than required by this subsection. However, prior to

 8  turnover of control of an association by a developer to unit

 9  owners other than a developer pursuant to s. 718.301, the

10  developer may vote to waive the reserves or reduce the funding

11  of reserves for the first 2 fiscal years of the association's

12  operation, beginning with the fiscal year in which the initial

13  declaration is recorded, after which time reserves may be

14  waived or reduced only upon the vote of a majority of all

15  nondeveloper voting interests voting in person or by limited

16  proxy at a duly called meeting of the association. If a

17  meeting of the unit owners has been called to determine

18  whether to waive or reduce the funding of reserves, and no

19  such result is achieved or a quorum is not attained, the

20  reserves as included in the budget shall go into effect. After

21  the turnover, the developer may vote its voting interest to

22  waive or reduce the funding of reserves.

23         3.  Reserve funds and any interest accruing thereon

24  shall remain in the reserve account or accounts, and shall be

25  used only for authorized reserve expenditures unless their use

26  for other purposes is approved in advance by a majority vote

27  at a duly called meeting of the association. Prior to turnover

28  of control of an association by a developer to unit owners

29  other than the developer pursuant to s. 718.301, the

30  developer-controlled association shall not vote to use

31  reserves for purposes other than that for which they were

                                  7

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  intended without the approval of a majority of all

 2  nondeveloper voting interests, voting in person or by limited

 3  proxy at a duly called meeting of the association.

 4         4.  In a multicondominium association, the only voting

 5  interests which are eligible to vote on questions that involve

 6  waiving or reducing the funding of reserves, or using existing

 7  reserve funds for purposes other than purposes for which the

 8  reserves were intended, are the voting interests of the units

 9  subject to assessment to fund the reserves in question.

10         Section 5.  Section 718.1125, Florida Statutes, is

11  created to read:

12         718.1125  Board eligibility restrictions.--

13         (1)  Notwithstanding any provision of the declaration

14  or bylaws, no one may serve on the board of the same

15  association:

16         (a)  Alongside an immediate family member who is also

17  on that board. If this paragraph is violated, the

18  later-elected immediate family member's election shall be

19  deemed void. Good-faith ignorance of such a relationship shall

20  prevent the operation of this paragraph, but only until such a

21  relationship is discovered.

22         (b)  Unless actually resident in the condominium for at

23  least 3 months out of the year prior to the annual meeting at

24  which he or she was elected.

25         (c)  Unless subjected to a criminal background check by

26  the Department of Law Enforcement, the results of which shall

27  be available to all unit owners in that condominium

28  notwithstanding any public records exemption.

29         (d)  For more than 2 consecutive years. A person barred

30  from serving on a board under this paragraph may seek

31  reelection after an intervening 2 years or may seek to be

                                  8

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  reelected immediately, only if, no other candidate seeks to be

 2  elected and the person otherwise barred is approved by a

 3  majority of the voting interests.

 4         (2)  The Department of Law Enforcement shall, in

 5  coordination with the division, adopt rules pursuant to

 6  chapter 120 to provide for criminal background checks required

 7  by paragraph (1)(e) and for recovering the costs of such

 8  checks from associations.

 9         Section 6.  Paragraphs (b) and (c) of subsection (1),

10  subsection (3), paragraphs (a) and (b) of subsection (5),

11  paragraph (b) of subsection (6), and subsection (10) of

12  section 718.116, Florida Statutes, are amended, paragraph (e)

13  is added to subsection (6) of that section, and subsection

14  (11) is added to that section, to read:

15         718.116  Assessments; liability; lien and priority;

16  interest; collection.--

17         (1)

18         (b)  The liability of a first mortgagee or its

19  successor or assignees who acquire title to a unit by

20  foreclosure or by deed in lieu of foreclosure for the unpaid

21  assessments that became due prior to the mortgagee's

22  acquisition of title is limited to the lesser of:

23         1.  The unit's unpaid common expenses and regular

24  periodic assessments which accrued or came due during the 6

25  months immediately preceding the acquisition of title and for

26  which payment in full has not been received by the

27  association; or

28         2.  Five One percent of the original mortgage debt. The

29  provisions of this paragraph apply only if the first mortgagee

30  joined the association as a defendant in the foreclosure

31  action. Joinder of the association is not required if, on the

                                  9

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  date the complaint is filed, the association was dissolved or

 2  did not maintain an office or agent for service of process at

 3  a location which was known to or reasonably discoverable by

 4  the mortgagee.

 5         (c)  The person acquiring title shall pay the amount

 6  owed to the association within 30 days after transfer of

 7  title. Failure to pay the full amount when due shall entitle

 8  the association to record a claim of lien against the parcel

 9  and proceed in the same manner as provided in this section for

10  the collection of unpaid assessments. Such a lien may not be

11  recorded until 30 days after the association posts notice by

12  certified mail to the person acquiring title of its intent to

13  record the lien.

14         (3)  Assessments and installments on them which are not

15  paid when due bear interest at the rate provided in the

16  declaration, from the due date until paid. This rate may not

17  exceed the rate allowed by law, and, if no rate is provided in

18  the declaration, interest shall accrue at the rate of 18

19  percent per year. Also, if the declaration or bylaws so

20  provide, the association may charge an administrative late fee

21  in addition to such interest, in an amount not to exceed the

22  greater of $25 or 5 percent of each installment of the

23  assessment for each delinquent installment that the payment is

24  late. Any payment received by an association shall be applied

25  first to the delinquent assessment, then to any interest

26  accrued by the association, then to any administrative late

27  fee, and then to any costs and reasonable attorney's fees

28  incurred in collection, and then to the delinquent assessment.

29  The foregoing shall be applicable notwithstanding any

30  restrictive endorsement, designation, or instruction placed on

31  

                                  10

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  or accompanying a payment. A late fee shall not be subject to

 2  the provisions in chapter 687 or s. 718.303(3).

 3         (5)(a)  The association has a lien on each condominium

 4  parcel to secure the payment of assessments. No administrative

 5  late fee or interest shall be the sole basis for a lien.

 6  Except as otherwise provided in subsection (1) and as set

 7  forth below, the lien is effective from and shall relate back

 8  to the recording of the original declaration of condominium,

 9  or, in the case of lien on a parcel located in a phase

10  condominium, the last to occur of the recording of the

11  original declaration or amendment thereto creating the parcel.

12  However, as to first mortgages of record, the lien is

13  effective from and after recording of a claim of lien in the

14  public records of the county in which the condominium parcel

15  is located. Nothing in this subsection shall be construed to

16  bestow upon any lien, mortgage, or certified judgment of

17  record on April 1, 1992, including the lien for unpaid

18  assessments created herein, a priority which, by law, the

19  lien, mortgage, or judgment did not have before that date.

20         (b)  To be valid, a claim of lien must state the

21  description of the condominium parcel, the name of the record

22  owner, the name and address of the association, the amount

23  due, and the due dates. It must be executed and acknowledged

24  by an officer or authorized agent of the association. The

25  claim of lien may not be recorded until 45 days after the

26  association posts notice of its intent to record the claim by

27  certified or registered mail to the record owner or delivers

28  such notice to the record owner by hand. Failure to comply

29  with this requirement renders the claim of lien inoperative

30  and unenforceable until compliance. No such lien shall be

31  effective longer than 1 year after the claim of lien was

                                  11

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  recorded unless, within that time, an action to enforce the

 2  lien is commenced. The 1-year period shall automatically be

 3  extended for any length of time during which the association

 4  is prevented from filing a foreclosure action by an automatic

 5  stay resulting from a bankruptcy petition filed by the parcel

 6  owner or any other person claiming an interest in the parcel.

 7  The claim of lien shall secure all unpaid assessments which

 8  are due and which may accrue subsequent to the recording of

 9  the claim of lien and prior to the entry of a certificate of

10  title, as well as interest and all reasonable costs and

11  attorney's fees incurred by the association incident to the

12  collection process. Upon payment in full, the person making

13  the payment is entitled to a satisfaction of the lien.

14         (6)

15         (b)  No foreclosure judgment may be entered until at

16  least 30 days after the association gives written notice to

17  the unit owner of its intention to foreclose its lien to

18  collect the unpaid assessments. If this notice is not given at

19  least 30 days before the foreclosure action is filed, and if

20  the unpaid assessments, including those coming due after the

21  claim of lien is recorded, are paid before the entry of a

22  final judgment of foreclosure or money judgment, the

23  association shall not recover attorney's fees or costs. The

24  notice must be given by delivery of a copy of it to the unit

25  owner or by certified or registered mail, return receipt

26  requested, addressed to the unit owner at his or her last

27  known address; and, upon such mailing, the notice shall be

28  deemed to have been given, and the court shall proceed with

29  the foreclosure action and may award attorney's fees and costs

30  as permitted by law. The notice requirements of this

31  subsection are satisfied if the unit owner records a notice of

                                  12

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  contest of lien as provided in subsection (5). The notice

 2  requirements of this subsection do not apply if an action to

 3  foreclose a mortgage on the condominium unit is pending before

 4  any court; if the rights of the association would be affected

 5  by such foreclosure; and if actual, constructive, or

 6  substitute service of process has been made on the unit owner.

 7  Each claim of lien as well as each 30-day written notice for

 8  collections shall contain the following statement

 9  distinguished in conspicuous bold, enlarged, or italicized

10  type:

11  

12  UNDER FLORIDA LAW, YOUR CONDOMINIUM UNIT, EVEN IF NOT YOUR

13  HOMESTEAD RESIDENCE, IS SUBJECT TO FORECLOSURE FOR FAILING TO

14  MAKE MAINTENANCE ASSESSMENT PAYMENTS.

15         (e)  A board member or officer of an association, or

16  his or her immediate family member, who willfully and

17  maliciously acts to impose, enforce, or increase the overall

18  value of a lien for the payment of assessments with the intent

19  to purchase or assist in the purchase of a condominium unit at

20  foreclosure commits a misdemeanor of the first degree,

21  punishable as provided in s. 775.082 or s. 775.083.

22         (10)  The specific purpose or purposes of any special

23  assessment approved in accordance with the condominium

24  documents shall be set forth in a written notice of such

25  assessment sent or delivered to each unit owner. The funds

26  collected pursuant to a special assessment shall be used only

27  for the specific purpose or purposes set forth in such notice.

28  However, upon completion of such specific purpose or purposes,

29  any excess funds will be considered common surplus, and may,

30  at the discretion of the board, either be returned to the unit

31  

                                  13

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  owners or, upon approval of two-thirds of the board, be

 2  applied as a credit toward future assessments.

 3         (11)  Notwithstanding any provision of the declaration

 4  or bylaws, any action of the board, even those characterized

 5  as special assessments, that imposes a financial hardship on

 6  any or all of the unit owners must be ratified by a majority

 7  of the voting interests at a duly convened meeting of the

 8  association to be held within 60 days of such action or such

 9  action shall be void.

10         Section 7.  Paragraph (e) of subsection (1) of section

11  718.3025, Florida Statutes, is amended, subsection (4) of that

12  section is renumbered as subsection (5), and a new subsection

13  (4) is added to that section, to read:

14         718.3025  Agreements for operation, maintenance, or

15  management of condominiums; specific requirements.--

16         (1)  No written contract between a party contracting to

17  provide maintenance or management services and an association

18  which contract provides for operation, maintenance, or

19  management of a condominium association or property serving

20  the unit owners of a condominium shall be valid or enforceable

21  unless the contract:

22         (e)  Discloses any financial or ownership interest

23  which the developer, if the developer is in control of the

24  association, any officer of the association, or any member of

25  the board holds with regard to the party contracting to

26  provide maintenance or management services.

27         (4)  A business entity of which an association's board

28  member or officer or his or her immediate family member is an

29  employee, or in which an association's board member or officer

30  or any or all of his or her immediate family members together

31  hold an ownership interest of 10 percent or more, may be

                                  14

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  contracted to provide maintenance or management services to

 2  that association only if approved by a majority of all unit

 3  owners. A contract in violation of this subsection shall be

 4  void.

 5         Section 8.  Section 718.3026, Florida Statutes, is

 6  amended to read:

 7         718.3026  Contracts for products and services; in

 8  writing; bids; exceptions.--Associations with less than 100

 9  units may opt out of the provisions of this section if

10  two-thirds of the unit owners vote to do so, which opt-out may

11  be accomplished by a proxy specifically setting forth the

12  exception from this section.

13         (1)  All contracts as further described herein or any

14  contract that is not to be fully performed within 1 year after

15  the making thereof, for the purchase, lease, or renting of

16  materials or equipment to be used by the association in

17  accomplishing its purposes under this chapter, and all

18  contracts for the provision of services, shall be in writing.

19  If a contract for the purchase, lease, or renting of materials

20  or equipment, or for the provision of services, requires

21  payment by the association on behalf of any condominium

22  operated by the association in the aggregate that exceeds 2.5

23  5 percent of the total annual budget of the association,

24  including reserves, the association shall obtain no fewer than

25  three competitive bids for the materials, equipment, or

26  services. Nothing contained herein shall be construed to

27  require the association to accept the lowest bid.

28         (2)(a)1.  Notwithstanding the foregoing, employment

29  contracts with employees of the association, and contracts for

30  attorney, accountant, architect, community association

31  manager, timeshare management firm, engineering, and landscape

                                  15

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  architect services are not subject to the provisions of this

 2  section.

 3         2.  A contract executed before January 1, 1992, and any

 4  renewal thereof, is not subject to the competitive bid

 5  requirements of this section. If a contract was awarded under

 6  the competitive bid procedures of this section, any renewal of

 7  that contract is not subject to such competitive bid

 8  requirements if the contract contains a provision that allows

 9  the board to cancel the contract on 30 days' notice.

10  Materials, equipment, or services provided to a condominium

11  under a local government franchise agreement by a franchise

12  holder are not subject to the competitive bid requirements of

13  this section. A contract with a manager, if made by a

14  competitive bid, may be made for up to 3 years. A condominium

15  whose declaration or bylaws provides for competitive bidding

16  for services may operate under the provisions of that

17  declaration or bylaws in lieu of this section if those

18  provisions are not less stringent than the requirements of

19  this section.

20         (b)  Nothing contained herein is intended to limit the

21  ability of an association to obtain needed products and

22  services in an emergency.

23         (c)  This section shall not apply if the business

24  entity with which the association desires to enter into a

25  contract is the only source of supply within the county

26  serving the association.

27         (d)  Nothing contained herein shall excuse a party

28  contracting to provide maintenance or management services from

29  compliance with s. 718.3025.

30         Section 9.  Section 718.305, Florida Statutes, is

31  created to read:

                                  16

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         718.305  Criminal background checks for potential unit

 2  owners and tenants.--Upon receiving notice of a potential unit

 3  owner or tenant, the association shall, at the expense of the

 4  applicant, conduct a criminal background check of all persons

 5  seeking to own or rent a unit.

 6         Section 10.  Paragraph (j) of subsection (1) of section

 7  718.501, Florida Statutes, is amended to read:

 8         718.501  Powers and duties of Division of Florida Land

 9  Sales, Condominiums, and Mobile Homes.--

10         (1)  The Division of Florida Land Sales, Condominiums,

11  and Mobile Homes of the Department of Business and

12  Professional Regulation, referred to as the "division" in this

13  part, in addition to other powers and duties prescribed by

14  chapter 498, has the power to enforce and ensure compliance

15  with the provisions of this chapter and rules promulgated

16  pursuant hereto relating to the development, construction,

17  sale, lease, ownership, operation, and management of

18  residential condominium units. In performing its duties, the

19  division has the following powers and duties:

20         (j)  The division shall provide training programs for

21  condominium association board members and unit owners.

22  Training shall be mandatory for newly elected board members

23  and members currently serving on a board who have not

24  previously voluntarily attended training.

25         Section 11.  Section 718.5011, Florida Statutes, is

26  created to read:

27         718.5011  Ombudsman; appointment; oath; restrictions on

28  ombudsman and his or her employees.--

29         (1)  There is created an Office of the Condominium

30  Ombudsman that for administrative purposes shall be located

31  within the Division of Florida Land Sales, Condominiums, and

                                  17

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  Mobile Homes. However, the office shall be independent of the

 2  division.

 3         (2)  The Joint Legislative Auditing Committee shall

 4  appoint an ombudsman by majority vote of the members of that

 5  committee. The ombudsman shall be an attorney admitted to

 6  practice before the Florida Supreme Court and shall serve at

 7  the pleasure of the Joint Legislative Auditing Committee.

 8  Vacancies in the office shall be filled in the same manner as

 9  the original appointment. The ombudsman and attorneys under

10  his staff shall take and subscribe to the oath of office

11  required of state officers by the State Constitution. No

12  officer or full-time employee of the ombudsman's office shall

13  actively engage in any other business or profession; serve as

14  the representative of any political party, executive

15  committee, or other governing body thereof; serve as an

16  executive, officer, or employee of any political party,

17  committee, organization, or association; receive remuneration

18  for activities on behalf of any candidate for public office;

19  or engage on behalf of any candidate for public office in the

20  solicitation of votes or other activities on behalf of such

21  candidacy. Neither the ombudsman nor any employee of his or

22  her office shall become a candidate for election to public

23  office unless he or she first resigns from his or her office

24  or employment.

25         Section 12.  Section 718.5012, Florida Statutes, is

26  created to read:

27         718.5012  Ombudsman; powers and duties.--The ombudsman

28  shall have such powers as are necessary to carry out the

29  duties of his or her office, including, but not limited to,

30  the following specific powers:

31  

                                  18

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         (1)  To have access to and use of all files and records

 2  of the division.

 3         (2)  To prepare and issue reports, recommendations, and

 4  proposed orders to the division, the Governor, the Advisory

 5  Council on Condominiums, the President of the Senate, the

 6  Speaker of the House of Representatives, and minority leaders

 7  of the Senate and the House of Representatives on any matter

 8  or subject within the jurisdiction of the division, and to

 9  make such recommendations as he or she deems appropriate for

10  legislation relative to division procedures, rules,

11  jurisdiction, personnel, and functions.

12         (3)  To act as liaison between the division and unit

13  owners, and to assist any unit owner in the preparation and

14  filing of a complaint to be investigated by the division. The

15  ombudsman shall establish procedures for receiving complaints.

16  Any complaint deemed valid by the ombudsman and properly

17  falling within the jurisdiction of the division and requiring

18  remedial action shall be identified and promptly filed with

19  the division. Upon the concurrence of the division, the

20  ombudsman shall establish target dates for concluding an

21  investigation and for taking appropriate specified remedial

22  action. The ombudsman may recommend that the division initiate

23  enforcement proceedings in accordance with chapter 120. The

24  department and the ombudsman may take findings of a criminal

25  nature and submit them as evidence to the state attorney's

26  office, and work with them to bring charges against the

27  alleged parties involved.

28         (4)  To make recommendations to the division for

29  changes in rules and procedures for the filing, investigation,

30  and resolution of complaints filed by unit owners.

31  

                                  19

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         Section 13.  Section 718.5013, Florida Statutes, is

 2  created to read:

 3         718.5013  Ombudsman; compensation and expenses.--

 4         (1)  All costs and expenses incurred by the Office of

 5  the Condominium Ombudsman shall be paid from disbursements

 6  from the Division of Florida Land Sales, Condominiums, and

 7  Mobile Homes Trust Fund and shall require approval of the

 8  Joint Legislative Auditing Committee.

 9         (2)  The Joint Legislative Auditing Committee may

10  authorize the ombudsman to employ clerical and technical

11  assistants whose qualifications, duties, and responsibilities

12  the committee shall from time to time prescribe, and to enter

13  into such contracts as necessary. The committee may authorize

14  retention of the services of additional attorneys or experts

15  to the extent that the best interests of the people of the

16  state will be better served thereby, including the retention

17  of expert witnesses and other technical personnel for

18  participation in contested proceedings before the division.

19         Section 14.  Section 718.5014, Florida Statutes, is

20  created to read:

21         718.5014  Ombudsman; location.--The ombudsman shall

22  maintain his or her principal office in Leon County on the

23  premises of the division or, if suitable space cannot be

24  provided there, at such other place convenient to the offices

25  of the division as will enable the ombudsman to expeditiously

26  carry out the duties and functions of his or her office. The

27  ombudsman may establish branch offices upon the concurrence of

28  the Joint Legislative Auditing Committee

29         Section 15.  Section 718.5015, Florida Statutes, is

30  created to read:

31         718.5015  Advisory council; membership functions.--

                                  20

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         (1)  There is created the Advisory Council on

 2  Condominiums. The council shall consist of seven members. Two

 3  members shall be appointed by the Speaker of the House of

 4  Representatives, two members shall be appointed by the

 5  President of the Senate, and three members shall be appointed

 6  by the Governor. At least one member shall represent timeshare

 7  condominiums. Members shall be appointed to 2-year terms;

 8  however, of the initial appointments, one of the members

 9  appointed by each of the Governor, the Speaker of the House of

10  Representatives, and the President of the Senate shall be

11  appointed to 1-year terms. In addition to these appointed

12  members, the director of the Division of Florida Land Sales,

13  Condominiums, and Mobile Homes shall serve as an ex officio

14  member of the council. It is the intent of the Legislature

15  that the persons appointed to this council represent a

16  cross-section of persons interested in condominium issues. For

17  administrative purposes, the council shall be located in the

18  Division of Florida Land Sales, Condominiums, and Mobile Homes

19  of the Department of Business and Professional Regulation.

20  Members of the council shall serve without compensation, but

21  shall be entitled to receive per diem and travel expenses

22  pursuant to s. 112.061 while on official business.

23         (2)  The functions of the advisory council shall be to:

24         (a)  Receive input from the public regarding issues of

25  concern with respect to condominiums and to receive

26  recommendations for any changes to be made in the condominium

27  law. The issues that the council shall consider shall include,

28  but shall not be limited to, the rights and responsibilities

29  of the unit owners in relation to the rights and

30  responsibilities of the association.

31  

                                  21

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         (b)  Review, evaluate, and advise the division

 2  concerning revisions and adoption of rules affecting

 3  condominiums.

 4         (c)  Recommend improvements, if needed, in the

 5  education programs offered by the division.

 6         (3)  The council is authorized to elect a chair and

 7  vice chair and such other offices as it may deem advisable.

 8  The council shall meet at the call of its chair, at the

 9  request of a majority of its membership, at the request of the

10  division, or at such times as may be prescribed by its rules.

11  A majority of the members of the council shall constitute a

12  quorum for the transaction of all business and the carrying

13  out of the duties of the council.

14         Section 16.  Section 718.504, Florida Statutes, is

15  amended to read:

16         718.504  Prospectus or offering circular; "Frequently

17  Asked Questions and Answers".--Every developer of a

18  residential condominium which contains more than 20

19  residential units, or which is part of a group of residential

20  condominiums which will be served by property to be used in

21  common by unit owners of more than 20 residential units, shall

22  prepare a prospectus or offering circular and file it with the

23  Division of Florida Land Sales, Condominiums, and Mobile Homes

24  prior to entering into an enforceable contract of purchase and

25  sale of any unit or lease of a unit for more than 5 years and

26  shall furnish a copy of the prospectus or offering circular to

27  each buyer. In addition to the prospectus or offering

28  circular, any prospective each buyer from the developer or a

29  current unit owner shall be furnished a separate document page

30  entitled "Frequently Asked Questions and Answers," which shall

31  be in accordance with a format approved by the division and a

                                  22

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  copy of the financial information required by s. 718.111. This

 2  document page shall, in readable language, inform prospective

 3  purchasers regarding their voting rights and unit use

 4  restrictions, including restrictions on the leasing of a unit;

 5  shall indicate whether and in what amount the unit owners or

 6  the association is obligated to pay rent or land use fees for

 7  recreational or other commonly used facilities; shall contain

 8  a statement identifying that amount of assessment which,

 9  pursuant to the budget, would be levied upon each unit type,

10  exclusive of any special assessments, and which shall further

11  identify the basis upon which assessments are levied, whether

12  monthly, quarterly, or otherwise; shall state and identify any

13  court cases in which the association is currently a party of

14  record in which the association may face liability in excess

15  of $25,000 or more $100,000; and which shall further state

16  whether membership in a recreational facilities association is

17  mandatory, and if so, shall identify the fees currently

18  charged per unit type. The division shall by rule require such

19  other disclosure as in its judgment will assist prospective

20  purchasers. The prospectus or offering circular may include

21  more than one condominium, although not all such units are

22  being offered for sale as of the date of the prospectus or

23  offering circular. The prospectus or offering circular must

24  contain the following information:

25         (1)  The front cover or the first page must contain

26  only:

27         (a)  The name of the condominium.

28         (b)  The following statements in conspicuous type:

29         1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS

30  IMPORTANT MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM

31  UNIT.

                                  23

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

 2  NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL

 3  REFERENCES, ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND

 4  SALES MATERIALS.

 5         3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS

 6  CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER

 7  TO THIS PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR

 8  CORRECT REPRESENTATIONS.

 9         (2)  Summary: The next page must contain all statements

10  required to be in conspicuous type in the prospectus or

11  offering circular.

12         (3)  A separate index of the contents and exhibits of

13  the prospectus.

14         (4)  Beginning on the first page of the text (not

15  including the summary and index), a description of the

16  condominium, including, but not limited to, the following

17  information:

18         (a)  Its name and location.

19         (b)  A description of the condominium property,

20  including, without limitation:

21         1.  The number of buildings, the number of units in

22  each building, the number of bathrooms and bedrooms in each

23  unit, and the total number of units, if the condominium is not

24  a phase condominium, or the maximum number of buildings that

25  may be contained within the condominium, the minimum and

26  maximum numbers of units in each building, the minimum and

27  maximum numbers of bathrooms and bedrooms that may be

28  contained in each unit, and the maximum number of units that

29  may be contained within the condominium, if the condominium is

30  a phase condominium.

31  

                                  24

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         2.  The page in the condominium documents where a copy

 2  of the plot plan and survey of the condominium is located.

 3         3.  The estimated latest date of completion of

 4  constructing, finishing, and equipping. In lieu of a date, the

 5  description shall include a statement that the estimated date

 6  of completion of the condominium is in the purchase agreement

 7  and a reference to the article or paragraph containing that

 8  information.

 9         (c)  The maximum number of units that will use

10  facilities in common with the condominium. If the maximum

11  number of units will vary, a description of the basis for

12  variation and the minimum amount of dollars per unit to be

13  spent for additional recreational facilities or enlargement of

14  such facilities. If the addition or enlargement of facilities

15  will result in a material increase of a unit owner's

16  maintenance expense or rental expense, if any, the maximum

17  increase and limitations thereon shall be stated.

18         (5)(a)  A statement in conspicuous type describing

19  whether the condominium is created and being sold as fee

20  simple interests or as leasehold interests. If the condominium

21  is created or being sold on a leasehold, the location of the

22  lease in the disclosure materials shall be stated.

23         (b)  If timeshare estates are or may be created with

24  respect to any unit in the condominium, a statement in

25  conspicuous type stating that timeshare estates are created

26  and being sold in units in the condominium.

27         (6)  A description of the recreational and other

28  commonly used facilities that will be used only by unit owners

29  of the condominium, including, but not limited to, the

30  following:

31  

                                  25

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         (a)  Each room and its intended purposes, location,

 2  approximate floor area, and capacity in numbers of people.

 3         (b)  Each swimming pool, as to its general location,

 4  approximate size and depths, approximate deck size and

 5  capacity, and whether heated.

 6         (c)  Additional facilities, as to the number of each

 7  facility, its approximate location, approximate size, and

 8  approximate capacity.

 9         (d)  A general description of the items of personal

10  property and the approximate number of each item of personal

11  property that the developer is committing to furnish for each

12  room or other facility or, in the alternative, a

13  representation as to the minimum amount of expenditure that

14  will be made to purchase the personal property for the

15  facility.

16         (e)  The estimated date when each room or other

17  facility will be available for use by the unit owners.

18         (f)1.  An identification of each room or other facility

19  to be used by unit owners that will not be owned by the unit

20  owners or the association;

21         2.  A reference to the location in the disclosure

22  materials of the lease or other agreements providing for the

23  use of those facilities; and

24         3.  A description of the terms of the lease or other

25  agreements, including the length of the term; the rent

26  payable, directly or indirectly, by each unit owner, and the

27  total rent payable to the lessor, stated in monthly and annual

28  amounts for the entire term of the lease; and a description of

29  any option to purchase the property leased under any such

30  lease, including the time the option may be exercised, the

31  purchase price or how it is to be determined, the manner of

                                  26

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  payment, and whether the option may be exercised for a unit

 2  owner's share or only as to the entire leased property.

 3         (g)  A statement as to whether the developer may

 4  provide additional facilities not described above; their

 5  general locations and types; improvements or changes that may

 6  be made; the approximate dollar amount to be expended; and the

 7  maximum additional common expense or cost to the individual

 8  unit owners that may be charged during the first annual period

 9  of operation of the modified or added facilities.

10  

11  Descriptions as to locations, areas, capacities, numbers,

12  volumes, or sizes may be stated as approximations or minimums.

13         (7)  A description of the recreational and other

14  facilities that will be used in common with other

15  condominiums, community associations, or planned developments

16  which require the payment of the maintenance and expenses of

17  such facilities, either directly or indirectly, by the unit

18  owners. The description shall include, but not be limited to,

19  the following:

20         (a)  Each building and facility committed to be built.

21         (b)  Facilities not committed to be built except under

22  certain conditions, and a statement of those conditions or

23  contingencies.

24         (c)  As to each facility committed to be built, or

25  which will be committed to be built upon the happening of one

26  of the conditions in paragraph (b), a statement of whether it

27  will be owned by the unit owners having the use thereof or by

28  an association or other entity which will be controlled by

29  them, or others, and the location in the exhibits of the lease

30  or other document providing for use of those facilities.

31  

                                  27

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         (d)  The year in which each facility will be available

 2  for use by the unit owners or, in the alternative, the maximum

 3  number of unit owners in the project at the time each of all

 4  of the facilities is committed to be completed.

 5         (e)  A general description of the items of personal

 6  property, and the approximate number of each item of personal

 7  property, that the developer is committing to furnish for each

 8  room or other facility or, in the alternative, a

 9  representation as to the minimum amount of expenditure that

10  will be made to purchase the personal property for the

11  facility.

12         (f)  If there are leases, a description thereof,

13  including the length of the term, the rent payable, and a

14  description of any option to purchase.

15  

16  Descriptions shall include location, areas, capacities,

17  numbers, volumes, or sizes and may be stated as approximations

18  or minimums.

19         (8)  Recreation lease or associated club membership:

20         (a)  If any recreational facilities or other facilities

21  offered by the developer and available to, or to be used by,

22  unit owners are to be leased or have club membership

23  associated, the following statement in conspicuous type shall

24  be included: THERE IS A RECREATIONAL FACILITIES LEASE

25  ASSOCIATED WITH THIS CONDOMINIUM; or, THERE IS A CLUB

26  MEMBERSHIP ASSOCIATED WITH THIS CONDOMINIUM. There shall be a

27  reference to the location in the disclosure materials where

28  the recreation lease or club membership is described in

29  detail.

30         (b)  If it is mandatory that unit owners pay a fee,

31  rent, dues, or other charges under a recreational facilities

                                  28

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  lease or club membership for the use of facilities, there

 2  shall be in conspicuous type the applicable statement:

 3         1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS

 4  MANDATORY FOR UNIT OWNERS; or

 5         2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF

 6  OWNERSHIP, TO BE LESSEES UNDER THE RECREATIONAL FACILITIES

 7  LEASE; or

 8         3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE

 9  COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,

10  REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES

11  LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or

12         4.  A similar statement of the nature of the

13  organization or the manner in which the use rights are

14  created, and that unit owners are required to pay.

15  

16  Immediately following the applicable statement, the location

17  in the disclosure materials where the development is described

18  in detail shall be stated.

19         (c)  If the developer, or any other person other than

20  the unit owners and other persons having use rights in the

21  facilities, reserves, or is entitled to receive, any rent,

22  fee, or other payment for the use of the facilities, then

23  there shall be the following statement in conspicuous type:

24  THE UNIT OWNERS OR THE ASSOCIATION(S) MUST PAY RENT OR LAND

25  USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES.

26  Immediately following this statement, the location in the

27  disclosure materials where the rent or land use fees are

28  described in detail shall be stated.

29         (d)  If, in any recreation format, whether leasehold,

30  club, or other, any person other than the association has the

31  right to a lien on the units to secure the payment of

                                  29

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  assessments, rent, or other exactions, there shall appear a

 2  statement in conspicuous type in substantially the following

 3  form:

 4         1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

 5  SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE

 6  RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE

 7  PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or

 8         2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO

 9  SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING

10  DUE FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE

11  RECREATIONAL OR COMMONLY USED FACILITIES. THE UNIT OWNER'S

12  FAILURE TO MAKE THESE PAYMENTS MAY RESULT IN FORECLOSURE OF

13  THE LIEN.

14  

15  Immediately following the applicable statement, the location

16  in the disclosure materials where the lien or lien right is

17  described in detail shall be stated.

18         (9)  If the developer or any other person has the right

19  to increase or add to the recreational facilities at any time

20  after the establishment of the condominium whose unit owners

21  have use rights therein, without the consent of the unit

22  owners or associations being required, there shall appear a

23  statement in conspicuous type in substantially the following

24  form: RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT

25  CONSENT OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately

26  following this statement, the location in the disclosure

27  materials where such reserved rights are described shall be

28  stated.

29         (10)  A statement of whether the developer's plan

30  includes a program of leasing units rather than selling them,

31  or leasing units and selling them subject to such leases. If

                                  30

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  so, there shall be a description of the plan, including the

 2  number and identification of the units and the provisions and

 3  term of the proposed leases, and a statement in boldfaced type

 4  that: THE UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.

 5         (11)  The arrangements for management of the

 6  association and maintenance and operation of the condominium

 7  property and of other property that will serve the unit owners

 8  of the condominium property, and a description of the

 9  management contract and all other contracts for these purposes

10  having a term in excess of 1 year, including the following:

11         (a)  The names of contracting parties.

12         (b)  The term of the contract.

13         (c)  The nature of the services included.

14         (d)  The compensation, stated on a monthly and annual

15  basis, and provisions for increases in the compensation.

16         (e)  A reference to the volumes and pages of the

17  condominium documents and of the exhibits containing copies of

18  such contracts.

19  

20  Copies of all described contracts shall be attached as

21  exhibits. If there is a contract for the management of the

22  condominium property, then a statement in conspicuous type in

23  substantially the following form shall appear, identifying the

24  proposed or existing contract manager: THERE IS (IS TO BE) A

25  CONTRACT FOR THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH

26  (NAME OF THE CONTRACT MANAGER). Immediately following this

27  statement, the location in the disclosure materials of the

28  contract for management of the condominium property shall be

29  stated.

30         (12)  If the developer or any other person or persons

31  other than the unit owners has the right to retain control of

                                  31

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  the board of administration of the association for a period of

 2  time which can exceed 1 year after the closing of the sale of

 3  a majority of the units in that condominium to persons other

 4  than successors or alternate developers, then a statement in

 5  conspicuous type in substantially the following form shall be

 6  included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO

 7  RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE

 8  UNITS HAVE BEEN SOLD. Immediately following this statement,

 9  the location in the disclosure materials where this right to

10  control is described in detail shall be stated.

11         (13)  If there are any restrictions upon the sale,

12  transfer, conveyance, or leasing of a unit, then a statement

13  in conspicuous type in substantially the following form shall

14  be included: THE SALE, LEASE, OR TRANSFER OF UNITS IS

15  RESTRICTED OR CONTROLLED. Immediately following this

16  statement, the location in the disclosure materials where the

17  restriction, limitation, or control on the sale, lease, or

18  transfer of units is described in detail shall be stated.

19         (14)  If the condominium is part of a phase project,

20  the following information shall be stated:

21         (a)  A statement in conspicuous type in substantially

22  the following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL

23  LAND AND UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately

24  following this statement, the location in the disclosure

25  materials where the phasing is described shall be stated.

26         (b)  A summary of the provisions of the declaration

27  which provide for the phasing.

28         (c)  A statement as to whether or not residential

29  buildings and units which are added to the condominium may be

30  substantially different from the residential buildings and

31  units originally in the condominium. If the added residential

                                  32

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  buildings and units may be substantially different, there

 2  shall be a general description of the extent to which such

 3  added residential buildings and units may differ, and a

 4  statement in conspicuous type in substantially the following

 5  form shall be included: BUILDINGS AND UNITS WHICH ARE ADDED TO

 6  THE CONDOMINIUM MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER

 7  BUILDINGS AND UNITS IN THE CONDOMINIUM. Immediately following

 8  this statement, the location in the disclosure materials where

 9  the extent to which added residential buildings and units may

10  substantially differ is described shall be stated.

11         (d)  A statement of the maximum number of buildings

12  containing units, the maximum and minimum numbers of units in

13  each building, the maximum number of units, and the minimum

14  and maximum square footage of the units that may be contained

15  within each parcel of land which may be added to the

16  condominium.

17         (15)  If a condominium created on or after July 1,

18  2000, is or may become part of a multicondominium, the

19  following information must be provided:

20         (a)  A statement in conspicuous type in substantially

21  the following form: THIS CONDOMINIUM IS (MAY BE) PART OF A

22  MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL

23  (MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately

24  following this statement, the location in the prospectus or

25  offering circular and its exhibits where the multicondominium

26  aspects of the offering are described must be stated.

27         (b)  A summary of the provisions in the declaration,

28  articles of incorporation, and bylaws which establish and

29  provide for the operation of the multicondominium, including a

30  statement as to whether unit owners in the condominium will

31  have the right to use recreational or other facilities located

                                  33

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  or planned to be located in other condominiums operated by the

 2  same association, and the manner of sharing the common

 3  expenses related to such facilities.

 4         (c)  A statement of the minimum and maximum number of

 5  condominiums, and the minimum and maximum number of units in

 6  each of those condominiums, which will or may be operated by

 7  the association, and the latest date by which the exact number

 8  will be finally determined.

 9         (d)  A statement as to whether any of the condominiums

10  in the multicondominium may include units intended to be used

11  for nonresidential purposes and the purpose or purposes

12  permitted for such use.

13         (e)  A general description of the location and

14  approximate acreage of any land on which any additional

15  condominiums to be operated by the association may be located.

16         (16)  If the condominium is created by conversion of

17  existing improvements, the following information shall be

18  stated:

19         (a)  The information required by s. 718.616.

20         (b)  A caveat that there are no express warranties

21  unless they are stated in writing by the developer.

22         (17)  A summary of the restrictions, if any, to be

23  imposed on units concerning the use of any of the condominium

24  property, including statements as to whether there are

25  restrictions upon children and pets, and reference to the

26  volumes and pages of the condominium documents where such

27  restrictions are found, or if such restrictions are contained

28  elsewhere, then a copy of the documents containing the

29  restrictions shall be attached as an exhibit.

30         (18)  If there is any land that is offered by the

31  developer for use by the unit owners and that is neither owned

                                  34

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  by them nor leased to them, the association, or any entity

 2  controlled by unit owners and other persons having the use

 3  rights to such land, a statement shall be made as to how such

 4  land will serve the condominium. If any part of such land will

 5  serve the condominium, the statement shall describe the land

 6  and the nature and term of service, and the declaration or

 7  other instrument creating such servitude shall be included as

 8  an exhibit.

 9         (19)  The manner in which utility and other services,

10  including, but not limited to, sewage and waste disposal,

11  water supply, and storm drainage, will be provided and the

12  person or entity furnishing them.

13         (20)  An explanation of the manner in which the

14  apportionment of common expenses and ownership of the common

15  elements has been determined.

16         (21)  An estimated operating budget for the condominium

17  and the association, and a schedule of the unit owner's

18  expenses shall be attached as an exhibit and shall contain the

19  following information:

20         (a)  The estimated monthly and annual expenses of the

21  condominium and the association that are collected from unit

22  owners by assessments.

23         (b)  The estimated monthly and annual expenses of each

24  unit owner for a unit, other than common expenses paid by all

25  unit owners, payable by the unit owner to persons or entities

26  other than the association, as well as to the association,

27  including fees assessed pursuant to s. 718.113(1) for

28  maintenance of limited common elements where such costs are

29  shared only by those entitled to use the limited common

30  element, and the total estimated monthly and annual expense.

31  There may be excluded from this estimate expenses which are

                                  35

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1  not provided for or contemplated by the condominium documents,

 2  including, but not limited to, the costs of private telephone;

 3  maintenance of the interior of condominium units, which is not

 4  the obligation of the association; maid or janitorial services

 5  privately contracted for by the unit owners; utility bills

 6  billed directly to each unit owner for utility services to his

 7  or her unit; insurance premiums other than those incurred for

 8  policies obtained by the condominium; and similar personal

 9  expenses of the unit owner. A unit owner's estimated payments

10  for assessments shall also be stated in the estimated amounts

11  for the times when they will be due.

12         (c)  The estimated items of expenses of the condominium

13  and the association, except as excluded under paragraph (b),

14  including, but not limited to, the following items, which

15  shall be stated either as an association expense collectible

16  by assessments or as unit owners' expenses payable to persons

17  other than the association:

18         1.  Expenses for the association and condominium:

19         a.  Administration of the association.

20         b.  Management fees.

21         c.  Maintenance.

22         d.  Rent for recreational and other commonly used

23  facilities.

24         e.  Taxes upon association property.

25         f.  Taxes upon leased areas.

26         g.  Insurance.

27         h.  Security provisions.

28         i.  Other expenses.

29         j.  Operating capital.

30         k.  Reserves.

31         l.  Fees payable to the division.

                                  36

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         2.  Expenses for a unit owner:

 2         a.  Rent for the unit, if subject to a lease.

 3         b.  Rent payable by the unit owner directly to the

 4  lessor or agent under any recreational lease or lease for the

 5  use of commonly used facilities, which use and payment is a

 6  mandatory condition of ownership and is not included in the

 7  common expense or assessments for common maintenance paid by

 8  the unit owners to the association.

 9         (d)  The estimated amounts shall be stated for a period

10  of at least 12 months and may distinguish between the period

11  prior to the time unit owners other than the developer elect a

12  majority of the board of administration and the period after

13  that date.

14         (22)  A schedule of estimated closing expenses to be

15  paid by a buyer or lessee of a unit and a statement of whether

16  title opinion or title insurance policy is available to the

17  buyer and, if so, at whose expense.

18         (23)  The identity of the developer and the chief

19  operating officer or principal directing the creation and sale

20  of the condominium and a statement of its and his or her

21  experience in this field.

22         (24)  Copies of the following, to the extent they are

23  applicable, shall be included as exhibits:

24         (a)  The declaration of condominium, or the proposed

25  declaration if the declaration has not been recorded.

26         (b)  The articles of incorporation creating the

27  association.

28         (c)  The bylaws of the association.

29         (d)  The ground lease or other underlying lease of the

30  condominium.

31  

                                  37

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         (e)  The management agreement and all maintenance and

 2  other contracts for management of the association and

 3  operation of the condominium and facilities used by the unit

 4  owners having a service term in excess of 1 year.

 5         (f)  The estimated operating budget for the condominium

 6  and the required schedule of unit owners' expenses.

 7         (g)  A copy of the floor plan of the unit and the plot

 8  plan showing the location of the residential buildings and the

 9  recreation and other common areas.

10         (h)  The lease of recreational and other facilities

11  that will be used only by unit owners of the subject

12  condominium.

13         (i)  The lease of facilities used by owners and others.

14         (j)  The form of unit lease, if the offer is of a

15  leasehold.

16         (k)  A declaration of servitude of properties serving

17  the condominium but not owned by unit owners or leased to them

18  or the association.

19         (l)  The statement of condition of the existing

20  building or buildings, if the offering is of units in an

21  operation being converted to condominium ownership.

22         (m)  The statement of inspection for termite damage and

23  treatment of the existing improvements, if the condominium is

24  a conversion.

25         (n)  The form of agreement for sale or lease of units.

26         (o)  A copy of the agreement for escrow of payments

27  made to the developer prior to closing.

28         (p)  A copy of the documents containing any

29  restrictions on use of the property required by subsection

30  (17).

31  

                                  38

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         (25)  Any prospectus or offering circular complying,

 2  prior to the effective date of this act, with the provisions

 3  of former ss. 711.69 and 711.802 may continue to be used

 4  without amendment or may be amended to comply with the

 5  provisions of this chapter.

 6         (26)  A brief narrative description of the location and

 7  effect of all existing and intended easements located or to be

 8  located on the condominium property other than those described

 9  in the declaration.

10         (27)  If the developer is required by state or local

11  authorities to obtain acceptance or approval of any dock or

12  marina facilities intended to serve the condominium, a copy of

13  any such acceptance or approval acquired by the time of filing

14  with the division under s. 718.502(1) or a statement that such

15  acceptance or approval has not been acquired or received.

16         (28)  Evidence demonstrating that the developer has an

17  ownership, leasehold, or contractual interest in the land upon

18  which the condominium is to be developed.

19         (29)  Whether the association is currently a party of

20  record in litigation in which the association may face

21  liability of $25,000 or more and, if so, the nature and title

22  of that litigation.

23         Section 17.  All of the records, personnel, property,

24  and unexpended balances of appropriations, allocations, or

25  other funds for the administration of part VIII of chapter

26  468, Florida Statutes, shall be transferred by a type two

27  transfer as defined in section 20.06(2), Florida Statutes,

28  from the Division of Professions of the Department of Business

29  and Professional Regulation to the Division of Florida Land

30  Sales, Condominiums, and Mobile Homes of the Department of

31  Business and Professional Regulation.

                                  39

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    Florida Senate - 2004                                  SB 2498
    7-1506-04                                          See HB 1223




 1         Section 18.  The Department of Business and

 2  Professional Regulation may continue to prosecute any existing

 3  legal proceedings and related administrative cases that are in

 4  existence on the effective date of this act.

 5         Section 19.  Section 718.510, Florida Statutes, is

 6  created to read:

 7         718.510  Condominium Owners' Bill of Rights.--The

 8  division shall adopt rules to provide for a brochure entitled

 9  "Condominium Owners' Bill of Rights," which shall explain what

10  rights are afforded to condominium owners and potential

11  purchasers of condominiums under this chapter. It is the

12  intent of the Legislature that this brochure be widely

13  distributed and as conveniently available as possible.

14         Section 20.  This act shall take effect upon becoming a

15  law.

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  40

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