CS/CS/HB 27

1	A bill to be entitled
2	An act relating to residential properties; amending s.
3	718.112, F.S.; requiring each newly elected director to
4	certify to the secretary of the association that he or she
5	has read the association's declarations of covenants and
6	restrictions, articles of incorporation, bylaws, and
7	current written policies and will work to uphold such
8	documents and policies to the best of his or her ability;
9	providing that a failure to timely file the statement
10	automatically disqualifies the director from service on
11	the association's board of directors; requiring the
12	secretary of the association to retain a director's
13	certification for inspection by the members for a
14	specified period of years after a director's election;
15	amending s. 720.303, F.S.; revising provisions relating to
16	homeowners' association board meetings, inspection and
17	copying of records, and reserve accounts of budgets;
18	prohibiting a salary or compensation for certain
19	association personnel; providing exceptions; amending s.
20	720.305, F.S.; authorizing fines assessed against members
21	which exceed a certain amount to become a lien against a
22	parcel; amending s. 720.306, F.S.; providing requirements
23	for secret ballots; requiring newly elected members of a
24	board of directors to make certain certifications in
25	writing to the association; providing for disqualification
26	for failure to make such certifications; requiring an
27	association to retain certifications for a specified time;
28	amending s. 720.401, F.S.; requiring that the disclosure
29	summary to prospective parcel owners include additional
30	provisions; amending s. 34.01, F.S.; correcting a cross-
31	reference to conform to changes made by the act; amending
32	s. 720.302, F.S.; correcting a cross-reference to conform
33	to changes made by the act; establishing legislative
34	intent; repealing s. 720.311, F.S., relating to a
35	procedure for dispute resolution in homeowners'
36	associations; providing that dispute resolution cases
37	pending on the date of repeal will continue under the
38	repealed provisions; creating part IV of ch. 720, F.S.,
39	relating to dispute resolution; creating s. 720.501, F.S.;
40	providing a short title; creating s. 720.502, F.S.;
41	providing legislative findings; creating s. 720.503, F.S.;
42	setting applicability of provisions for mediation and
43	arbitration applicable to disputes in homeowners'
44	associations; creating exceptions; providing
45	applicability; tolling applicable statutes of limitations;
46	creating s. 720.504, F.S.; requiring that the notice of
47	dispute be delivered before referral to mediation or
48	arbitration; creating s. 720.505, F.S.; creating a
49	statutory notice form for referral to mediation; requiring
50	delivery by certified mail or personal delivery; setting
51	deadlines; requiring parties to share costs; requiring the
52	selection of a mediator and times to meet; providing
53	penalties for failure to mediate; creating s. 720.506,
54	F.S.; creating an opt-out provision; creating s. 720.507,
55	F.S.; creating a statutory notice form for referral to
56	arbitration; requiring delivery by certified mail or
57	personal delivery; setting deadlines; requiring parties to
58	share costs; requiring the selection of an arbitrator and
59	times to meet; providing penalties for failure to
60	arbitrate; creating s. 720.508, F.S.; providing for rules
61	of procedure; providing for confidentiality; creating s.
62	720.509, F.S.; setting qualifications for mediators and
63	arbitrators; creating s. 720.510, F.S.; providing for
64	enforcement of mediation agreements and arbitration
65	awards; repealing ss. 720.303(10)(b) and 720.306(9), F.S.,
66	relating to the recall and election of directors, to the
67	extent that such provisions are inconsistent with part IV
68	of ch. 720, F.S., relating to dispute resolution;
69	providing an effective date.
70
71	Be It Enacted by the Legislature of the State of Florida:
72
73	Section 1.  Paragraph (d) of subsection (2) of section
74	718.112, Florida Statutes, is amended to read:
75	718.112  Bylaws.--
76	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
77	following and, if they do not do so, shall be deemed to include
78	the following:
79	(d)  Unit owner meetings.--
80	1.  There shall be an annual meeting of the unit owners
81	held at the location provided in the association bylaws and, if
82	the bylaws are silent as to the location, the meeting shall be
83	held within 45 miles of the condominium property. However, such
84	distance requirement does not apply to an association governing
85	a timeshare condominium. Unless the bylaws provide otherwise, a
86	vacancy on the board caused by the expiration of a director's
87	term shall be filled by electing a new board member, and the
88	election shall be by secret ballot; however, if the number of
89	vacancies equals or exceeds the number of candidates, no
90	election is required. The terms of all members of the board
91	shall expire at the annual meeting and such board members may
92	stand for reelection unless otherwise permitted by the bylaws.
93	In the event that the bylaws permit staggered terms of no more
94	than 2 years and upon approval of a majority of the total voting
95	interests, the association board members may serve 2-year
96	staggered terms. If no person is interested in or demonstrates
97	an intention to run for the position of a board member whose
98	term has expired according to the provisions of this
99	subparagraph, such board member whose term has expired shall be
100	automatically reappointed to the board of administration and
101	need not stand for reelection. In a condominium association of
102	more than 10 units, coowners of a unit may not serve as members
103	of the board of directors at the same time. Any unit owner
104	desiring to be a candidate for board membership shall comply
105	with subparagraph 3. A person who has been suspended or removed
106	by the division under this chapter, or who is delinquent in the
107	payment of any fee or assessment as provided in paragraph (n),
108	is not eligible for board membership. A person who has been
109	convicted of any felony in this state or in a United States
110	District or Territorial Court, or who has been convicted of any
111	offense in another jurisdiction that would be considered a
112	felony if committed in this state, is not eligible for board
113	membership unless such felon's civil rights have been restored
114	for a period of no less than 5 years as of the date on which
115	such person seeks election to the board. The validity of an
116	action by the board is not affected if it is later determined
117	that a member of the board is ineligible for board membership
118	due to having been convicted of a felony.
119	2.  The bylaws shall provide the method of calling meetings
120	of unit owners, including annual meetings. Written notice, which
121	notice must include an agenda, shall be mailed, hand delivered,
122	or electronically transmitted to each unit owner at least 14
123	days prior to the annual meeting and shall be posted in a
124	conspicuous place on the condominium property at least 14
125	continuous days preceding the annual meeting. Upon notice to the
126	unit owners, the board shall by duly adopted rule designate a
127	specific location on the condominium property or association
128	property upon which all notices of unit owner meetings shall be
129	posted; however, if there is no condominium property or
130	association property upon which notices can be posted, this
131	requirement does not apply. In lieu of or in addition to the
132	physical posting of notice of any meeting of the unit owners on
133	the condominium property, the association may, by reasonable
134	rule, adopt a procedure for conspicuously posting and repeatedly
135	broadcasting the notice and the agenda on a closed-circuit cable
136	television system serving the condominium association. However,
137	if broadcast notice is used in lieu of a notice posted
138	physically on the condominium property, the notice and agenda
139	must be broadcast at least four times every broadcast hour of
140	each day that a posted notice is otherwise required under this
141	section. When broadcast notice is provided, the notice and
142	agenda must be broadcast in a manner and for a sufficient
143	continuous length of time so as to allow an average reader to
144	observe the notice and read and comprehend the entire content of
145	the notice and the agenda. Unless a unit owner waives in writing
146	the right to receive notice of the annual meeting, such notice
147	shall be hand delivered, mailed, or electronically transmitted
148	to each unit owner. Notice for meetings and notice for all other
149	purposes shall be mailed to each unit owner at the address last
150	furnished to the association by the unit owner, or hand
151	delivered to each unit owner. However, if a unit is owned by
152	more than one person, the association shall provide notice, for
153	meetings and all other purposes, to that one address which the
154	developer initially identifies for that purpose and thereafter
155	as one or more of the owners of the unit shall so advise the
156	association in writing, or if no address is given or the owners
157	of the unit do not agree, to the address provided on the deed of
158	record. An officer of the association, or the manager or other
159	person providing notice of the association meeting, shall
160	provide an affidavit or United States Postal Service certificate
161	of mailing, to be included in the official records of the
162	association affirming that the notice was mailed or hand
163	delivered, in accordance with this provision.
164	3.  The members of the board shall be elected by written
165	ballot or voting machine. Proxies shall in no event be used in
166	electing the board, either in general elections or elections to
167	fill vacancies caused by recall, resignation, or otherwise,
168	unless otherwise provided in this chapter. Not less than 60 days
169	before a scheduled election, the association shall mail,
170	deliver, or electronically transmit, whether by separate
171	association mailing or included in another association mailing,
172	delivery, or transmission, including regularly published
173	newsletters, to each unit owner entitled to a vote, a first
174	notice of the date of the election along with a certification
175	form provided by the division attesting that he or she has read
176	and understands, to the best of his or her ability, the
177	governing documents of the association and the provisions of
178	this chapter and any applicable rules. Any unit owner or other
179	eligible person desiring to be a candidate for the board must
180	give written notice to the association not less than 40 days
181	before a scheduled election. Together with the written notice
182	and agenda as set forth in subparagraph 2., the association
183	shall mail, deliver, or electronically transmit a second notice
184	of the election to all unit owners entitled to vote therein,
185	together with a ballot which shall list all candidates. Upon
186	request of a candidate, the association shall include an
187	information sheet, no larger than 81/2 inches by 11 inches,
188	which must be furnished by the candidate not less than 35 days
189	before the election, along with the signed certification form
190	provided for in this subparagraph, to be included with the
191	mailing, delivery, or transmission of the ballot, with the costs
192	of mailing, delivery, or electronic transmission and copying to
193	be borne by the association. The association is not liable for
194	the contents of the information sheets prepared by the
195	candidates. In order to reduce costs, the association may print
196	or duplicate the information sheets on both sides of the paper.
197	The division shall by rule establish voting procedures
198	consistent with the provisions contained herein, including rules
199	establishing procedures for giving notice by electronic
200	transmission and rules providing for the secrecy of ballots.
201	Elections shall be decided by a plurality of those ballots cast.
202	There shall be no quorum requirement; however, at least 20
203	percent of the eligible voters must cast a ballot in order to
204	have a valid election of members of the board. No unit owner
205	shall permit any other person to vote his or her ballot, and any
206	such ballots improperly cast shall be deemed invalid, provided
207	any unit owner who violates this provision may be fined by the
208	association in accordance with s. 718.303. A unit owner who
209	needs assistance in casting the ballot for the reasons stated in
210	s. 101.051 may obtain assistance in casting the ballot. The
211	regular election shall occur on the date of the annual meeting.
212	The provisions of this subparagraph shall not apply to timeshare
213	condominium associations. Notwithstanding the provisions of this
214	subparagraph, an election is not required unless more candidates
215	file notices of intent to run or are nominated than board
216	vacancies exist.
217	4.  Any approval by unit owners called for by this chapter
218	or the applicable declaration or bylaws, including, but not
219	limited to, the approval requirement in s. 718.111(8), shall be
220	made at a duly noticed meeting of unit owners and shall be
221	subject to all requirements of this chapter or the applicable
222	condominium documents relating to unit owner decisionmaking,
223	except that unit owners may take action by written agreement,
224	without meetings, on matters for which action by written
225	agreement without meetings is expressly allowed by the
226	applicable bylaws or declaration or any statute that provides
227	for such action.
228	5.  Unit owners may waive notice of specific meetings if
229	allowed by the applicable bylaws or declaration or any statute.
230	If authorized by the bylaws, notice of meetings of the board of
231	administration, unit owner meetings, except unit owner meetings
232	called to recall board members under paragraph (j), and
233	committee meetings may be given by electronic transmission to
234	unit owners who consent to receive notice by electronic
235	transmission.
236	6.  Unit owners shall have the right to participate in
237	meetings of unit owners with reference to all designated agenda
238	items. However, the association may adopt reasonable rules
239	governing the frequency, duration, and manner of unit owner
240	participation.
241	7.  Any unit owner may tape record or videotape a meeting
242	of the unit owners subject to reasonable rules adopted by the
243	division.
244	8.  Unless otherwise provided in the bylaws, any vacancy
245	occurring on the board before the expiration of a term may be
246	filled by the affirmative vote of the majority of the remaining
247	directors, even if the remaining directors constitute less than
248	a quorum, or by the sole remaining director. In the alternative,
249	a board may hold an election to fill the vacancy, in which case
250	the election procedures must conform to the requirements of
251	subparagraph 3. unless the association governs 10 units or less
252	and has opted out of the statutory election process, in which
253	case the bylaws of the association control. Unless otherwise
254	provided in the bylaws, a board member appointed or elected
255	under this section shall fill the vacancy for the unexpired term
256	of the seat being filled. Filling vacancies created by recall is
257	governed by paragraph (j) and rules adopted by the division.
258	9.  Within 30 days after being elected to the board of
259	directors, a new director shall certify in writing to the
260	secretary of the association that he or she has read the
261	association's declarations of covenants and restrictions,
262	articles of incorporation, bylaws, and current written policies,
263	that he or she will work to uphold such documents and policies
264	to the best of his or her ability, and that he or she will
265	faithfully discharge his or her fiduciary responsibility to the
266	association's members. Failure to timely file the statement
267	automatically disqualifies the director from service on the
268	association's board of directors. The secretary shall cause the
269	association to retain a director's certification for inspection
270	by the members for 5 years after a director's election. Failure
271	to have such certification on file does not affect the validity
272	of any appropriate action.
273
274	Notwithstanding subparagraphs (b)2. and (d)3., an association of
275	10 or fewer units may, by the affirmative vote of a majority of
276	the total voting interests, provide for different voting and
277	election procedures in its bylaws, which vote may be by a proxy
278	specifically delineating the different voting and election
279	procedures. The different voting and election procedures may
280	provide for elections to be conducted by limited or general
281	proxy.
282	Section 2.  Paragraph (b) of subsection (2), paragraphs (a)
283	and (c) of subsection (5), paragraphs (b), (c), (d), (f), and
284	(g) of subsection (6) of section 720.303, Florida Statutes, are
285	amended, and subsection (12) is added to that section, to read:
286	720.303  Association powers and duties; meetings of board;
287	official records; budgets; financial reporting; association
288	funds; recalls.--
289	(2)  BOARD MEETINGS.--
290	(b)  Members have the right to attend all meetings of the
291	board and to speak on any matter placed on the agenda by
292	petition of the voting interests for at least 3 minutes. The
293	association may adopt written reasonable rules expanding the
294	right of members to speak and governing the frequency, duration,
295	and other manner of member statements, which rules must be
296	consistent with this paragraph and may include a sign-up sheet
297	for members wishing to speak. Notwithstanding any other law, the
298	requirement that board meetings and committee meetings be open
299	to the members is inapplicable to meetings between the board or
300	a committee to discuss proposed or pending litigation with and
301	the association's attorney, or with respect to meetings of the
302	board held for the purpose of discussing personnel matters are
303	not required to be open to the members.
304	(5)  INSPECTION AND COPYING OF RECORDS.--The official
305	records shall be maintained within the state and must be open to
306	inspection and available for photocopying by members or their
307	authorized agents at reasonable times and places within 10
308	business days after receipt of a written request for access.
309	This subsection may be complied with by having a copy of the
310	official records available for inspection or copying in the
311	community. If the association has a photocopy machine available
312	where the records are maintained, it must provide parcel owners
313	with copies on request during the inspection if the entire
314	request is limited to no more than 25 pages.
315	(a)  The failure of an association to provide access to the
316	records within 10 business days after receipt of a written
317	request submitted by certified mail, return receipt requested,
318	creates a rebuttable presumption that the association willfully
319	failed to comply with this subsection.
320	(c)  The association may adopt reasonable written rules
321	governing the frequency, time, location, notice, records to be
322	inspected, and manner of inspections, but may not require impose
323	a requirement that a parcel owner to demonstrate any proper
324	purpose for the inspection, state any reason for the inspection,
325	or limit a parcel owner's right to inspect records to less than
326	one 8-hour business day per month. The association may impose
327	fees to cover the costs of providing copies of the official
328	records, including, without limitation, the costs of copying.
329	The association may charge up to 50 cents per page for copies
330	made on the association's photocopier. If the association does
331	not have a photocopy machine available where the records are
332	kept, or if the records requested to be copied exceed 25 pages
333	in length, the association may have copies made by an outside
334	vendor or association management company personnel and may
335	charge the actual cost of copying, including any reasonable
336	costs involving personnel fees and charges at an hourly rate for
337	employee time to cover administrative costs to the association.
338	The association shall maintain an adequate number of copies of
339	the recorded governing documents, to ensure their availability
340	to members and prospective members. Notwithstanding the
341	provisions of this paragraph, the following records are shall
342	not be accessible to members or parcel owners:
343	1.  Any record protected by the lawyer-client privilege as
344	described in s. 90.502 and any record protected by the work-
345	product privilege, including, but not limited to, any record
346	prepared by an association attorney or prepared at the
347	attorney's express direction which reflects a mental impression,
348	conclusion, litigation strategy, or legal theory of the attorney
349	or the association and which was prepared exclusively for civil
350	or criminal litigation or for adversarial administrative
351	proceedings or which was prepared in anticipation of imminent
352	civil or criminal litigation or imminent adversarial
353	administrative proceedings until the conclusion of the
354	litigation or adversarial administrative proceedings.
355	2.  Information obtained by an association in connection
356	with the approval of the lease, sale, or other transfer of a
357	parcel.
358	3.  Disciplinary, health, insurance, and personnel records
359	of the association's employees.
360	4.  Medical records of parcel owners or community
361	residents.
362	(6)  BUDGETS.--
363	(b)  In addition to annual operating expenses, the budget
364	may include reserve accounts for capital expenditures and
365	deferred maintenance for which the association is responsible.
366	If reserve accounts are not established pursuant to paragraph
367	(d), funding of such reserves shall be limited to the extent
368	that the governing documents do not limit increases in
369	assessments, including reserves. If the budget of the
370	association includes reserve accounts established pursuant to
371	paragraph (d), such reserves shall be determined, maintained,
372	and waived in the manner provided in this subsection. Once an
373	association provides for reserve accounts pursuant to paragraph
374	(d) in the budget, the association shall thereafter determine,
375	maintain, and waive reserves in compliance with this subsection.
376	The provisions of this section do not preclude the termination
377	of a reserve account established pursuant to this paragraph upon
378	approval of a majority of the voting interests of the
379	association. Upon such approval, the terminating reserve account
380	shall be removed from the budget.
381	(c)1.  If the budget of the association does not provide
382	for reserve accounts pursuant to paragraph (d) governed by this
383	subsection and the association is responsible for the repair and
384	maintenance of capital improvements that may result in a special
385	assessment if reserves are not provided, each financial report
386	for the preceding fiscal year required by subsection (7) shall
387	contain the following statement in conspicuous type: THE BUDGET
388	OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
389	CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN
390	SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE
391	ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
392	FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A
393	MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY
394	VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
395	2.  If the budget of the association does provide for
396	funding accounts for deferred expenditures, including, but not
397	limited to, funds for capital expenditures and deferred
398	maintenance, but such accounts are not created or established
399	pursuant to paragraph (d), each financial report for the
400	preceding fiscal year required under subsection (7) must also
401	contain the following statement in conspicuous type: THE BUDGET
402	OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED
403	EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
404	DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
405	OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
406	PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
407	FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
408	RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
409	ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
410	(d)  An association shall be deemed to have provided for
411	reserve accounts if when reserve accounts have been initially
412	established by the developer or if when the membership of the
413	association affirmatively elects to provide for reserves. If
414	reserve accounts are not initially provided for by the
415	developer, the membership of the association may elect to do so
416	upon the affirmative approval of not less than a majority of the
417	total voting interests of the association. Such approval may be
418	obtained attained by vote of the members at a duly called
419	meeting of the membership or by the upon a written consent of
420	executed by not less than a majority of the total voting
421	interests in the community. The approval action of the
422	membership shall state that reserve accounts shall be provided
423	for in the budget and shall designate the components for which
424	the reserve accounts are to be established. Upon approval by the
425	membership, the board of directors shall include provide for the
426	required reserve accounts for inclusion in the budget in the
427	next fiscal year following the approval and in each year
428	thereafter. Once established as provided in this subsection, the
429	reserve accounts shall be funded or maintained or shall have
430	their funding waived in the manner provided in paragraph (f).
431	(f)  After one or more Once a reserve account or reserve
432	accounts are established, the membership of the association,
433	upon a majority vote at a meeting at which a quorum is present,
434	may provide for no reserves or less reserves than required by
435	this section. If a meeting of the unit owners has been called to
436	determine whether to waive or reduce the funding of reserves and
437	no such result is achieved or a quorum is not present, the
438	reserves as included in the budget shall go into effect. After
439	the turnover, the developer may vote its voting interest to
440	waive or reduce the funding of reserves. Any vote taken pursuant
441	to this subsection to waive or reduce reserves is shall be
442	applicable only to one budget year.
443	(g)  Funding formulas for reserves authorized by this
444	section shall be based on either a separate analysis of each of
445	the required assets or a pooled analysis of two or more of the
446	required assets.
447	1.  If the association maintains separate reserve accounts
448	for each of the required assets, the amount of the contribution
449	to each reserve account is shall be the sum of the following two
450	calculations:
451	a.  The total amount necessary, if any, to bring a negative
452	component balance to zero.
453	b.  The total estimated deferred maintenance expense or
454	estimated replacement cost of the reserve component less the
455	estimated balance of the reserve component as of the beginning
456	of the period for which the budget will be in effect. The
457	remainder, if greater than zero, shall be divided by the
458	estimated remaining useful life of the component.
459
460	The formula may be adjusted each year for changes in estimates
461	and deferred maintenance performed during the year and may
462	include factors such as inflation and earnings on invested
463	funds.
464	2.  If the association maintains a pooled account of two or
465	more of the required reserve assets, the amount of the
466	contribution to the pooled reserve account as disclosed on the
467	proposed budget may shall not be less than that required to
468	ensure that the balance on hand at the beginning of the period
469	for which the budget will go into effect plus the projected
470	annual cash inflows over the remaining estimated useful life of
471	all of the assets that make up the reserve pool are equal to or
472	greater than the projected annual cash outflows over the
473	remaining estimated useful lives of all of the assets that make
474	up the reserve pool, based on the current reserve analysis. The
475	projected annual cash inflows may include estimated earnings
476	from investment of principal and accounts receivable minus the
477	allowance for doubtful accounts. The reserve funding formula may
478	shall not include any type of balloon payments.
479	(12)  COMPENSATION PROHIBITED.--A director, officer, or
480	committee member of the association may not receive directly or
481	indirectly any salary or compensation from the association for
482	the performance of duties as a director, officer, or committee
483	member and may not in any other way benefit financially from
484	service to the association. This subsection does not preclude:
485	(a)  Participation by such person in a financial benefit
486	accruing to all or a significant number of members as a result
487	of actions lawfully taken by the board or a committee of which
488	he or she is a member, including, but not limited to, routine
489	maintenance, repair, or replacement of community assets.
490	(b)  Reimbursement for out-of-pocket expenses incurred by
491	such person on behalf of the association, subject to approval in
492	accordance with procedures established by the association's
493	governing documents or, in the absence of such procedures, in
494	accordance with an approval process established by the board.
495	(c)  Any recovery of insurance proceeds derived from a
496	policy of insurance maintained by the association for the
497	benefit of its members.
498	(d)  Any fee or compensation authorized in the governing
499	documents.
500	(e)  Any fee or compensation authorized in advance by a
501	vote of a majority of the voting interests voting in person or
502	by proxy at a meeting of the members.
503	Section 3.  Subsection (2) of section 720.305, Florida
504	Statutes, is amended to read:
505	720.305  Obligations of members; remedies at law or in
506	equity; levy of fines and suspension of use rights.--
507	(2)  If the governing documents so provide, an association
508	may suspend, for a reasonable period of time, the rights of a
509	member or a member's tenants, guests, or invitees, or both, to
510	use common areas and facilities and may levy reasonable fines of
511	up to, not to exceed $100 per violation, against any member or
512	any tenant, guest, or invitee. A fine may be levied on the basis
513	of each day of a continuing violation, with a single notice and
514	opportunity for hearing, except that no such fine may shall
515	exceed $1,000 in the aggregate unless otherwise provided in the
516	governing documents. A fine of less than $1,000 may shall not
517	become a lien against a parcel. In any action to recover a fine,
518	the prevailing party is entitled to collect its reasonable
519	attorney's fees and costs from the nonprevailing party as
520	determined by the court.
521	(a)  A fine or suspension may not be imposed without notice
522	of at least 14 days' notice days to the person sought to be
523	fined or suspended and an opportunity for a hearing before a
524	committee of at least three members appointed by the board who
525	are not officers, directors, or employees of the association, or
526	the spouse, parent, child, brother, or sister of an officer,
527	director, or employee. If the committee, by majority vote, does
528	not approve a proposed fine or suspension, it may not be
529	imposed.
530	(b)  The requirements of this subsection do not apply to
531	the imposition of suspensions or fines upon any member because
532	of the failure of the member to pay assessments or other charges
533	when due if such action is authorized by the governing
534	documents.
535	(c)  Suspension of common-area-use rights do shall not
536	impair the right of an owner or tenant of a parcel to have
537	vehicular and pedestrian ingress to and egress from the parcel,
538	including, but not limited to, the right to park.
539	Section 4.  Subsections (8) and (9) of section 720.306,
540	Florida Statutes, are amended to read:
541	720.306  Meetings of members; voting and election
542	procedures; amendments.--
543	(8)  PROXY VOTING.--The members have the right, unless
544	otherwise provided in this subsection or in the governing
545	documents, to vote in person or by proxy.
546	(a)  To be valid, a proxy must be dated, must state the
547	date, time, and place of the meeting for which it was given, and
548	must be signed by the authorized person who executed the proxy.
549	A proxy is effective only for the specific meeting for which it
550	was originally given, as the meeting may lawfully be adjourned
551	and reconvened from time to time, and automatically expires 90
552	days after the date of the meeting for which it was originally
553	given. A proxy is revocable at any time at the pleasure of the
554	person who executes it. If the proxy form expressly so provides,
555	any proxy holder may appoint, in writing, a substitute to act in
556	his or her place.
557	(b)  If the governing documents permit voting by secret
558	ballot by members who are not in attendance at a meeting of the
559	members for the election of directors, such ballots shall be
560	placed in an inner envelope with no identifying markings and
561	mailed or delivered to the association in an outer envelope
562	bearing identifying information reflecting the name of the
563	member, the lot or parcel for which the vote is being cast, and
564	the signature of the lot or parcel owner casting that ballot.
565	After the eligibility of the member to vote and confirmation
566	that no other ballot has been submitted for that lot or parcel,
567	the inner envelope shall be removed from the outer envelope
568	bearing the identification information, placed with the ballots
569	which were personally cast, and opened when the ballots are
570	counted. If more than one ballot is submitted for a lot or
571	parcel, the ballots for that lot or parcel shall be
572	disqualified. Any vote by ballot received after the closing of
573	the balloting may not be considered.
574	(9)  ELECTIONS; BOARD MEMBER CERTIFICATION.--
575	(a)  Elections of directors must be conducted in accordance
576	with the procedures set forth in the governing documents of the
577	association. All members of the association are shall be
578	eligible to serve on the board of directors, and a member may
579	nominate himself or herself as a candidate for the board at a
580	meeting where the election is to be held or, if the election
581	process allows voting by absentee ballot, in advance of the
582	balloting. Except as otherwise provided in the governing
583	documents, boards of directors must be elected by a plurality of
584	the votes cast by eligible voters. Any election dispute between
585	a member and an association must be submitted to mandatory
586	binding arbitration with the division. Such proceedings shall be
587	conducted in the manner provided by s. 718.1255 and the
588	procedural rules adopted by the division.
589	(b)  Within 30 days after being elected to the board of
590	directors, a new director shall certify in writing to the
591	secretary of the association that he or she has read the
592	association's declarations of covenants and restrictions,
593	articles of incorporation, bylaws, and current written policies
594	and that he or she will work to uphold each to the best of his
595	or her ability and will faithfully discharge his or her
596	fiduciary responsibility to the association's members. Failure
597	to timely file such statement shall automatically disqualify the
598	director from service on the association's board of directors.
599	The secretary shall cause the association to retain a director's
600	certification for inspection by the members for 5 years after a
601	director's election. Failure to have such certification on file
602	does not affect the validity of any appropriate action.
603	Section 5.  Paragraph (a) of subsection (1) of section
604	720.401, Florida Statutes, is amended to read:
605	720.401  Prospective purchasers subject to association
606	membership requirement; disclosure required; covenants;
607	assessments; contract cancellation.--
608	(1)(a)  A prospective parcel owner in a community must be
609	presented a disclosure summary before executing the contract for
610	sale. The disclosure summary must be in a form substantially
611	similar to the following form:
612
613	DISCLOSURE SUMMARY
614	FOR
615	(NAME OF COMMUNITY)
616
617	1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
618	BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
619	2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
620	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
621	COMMUNITY.
622	3.  YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
623	ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
624	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL
625	ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
626	ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
627	IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
628	4.  YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
629	RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
630	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
631	5.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
632	LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION MAY COULD RESULT
633	IN A LIEN ON YOUR PROPERTY.
634	6.  THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
635	FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
636	OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
637	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
638	7.  IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE
639	DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
640	RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
641	MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
642	8.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
643	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
644	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
645	DOCUMENTS BEFORE PURCHASING PROPERTY.
646	9.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
647	CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
648	PROPERTY IS LOCATED, OR, IF ARE NOT RECORDED, AND CAN BE
649	OBTAINED FROM THE DEVELOPER.
650	10.  THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES
651	OR FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR THE
652	PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT
653	INFRASTRUCTURE OR OTHER IMPROVEMENTS.
654	11.  YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS
655	OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE
656	UP TO THE TIME OF TRANSFER OF TITLE.
657
658	DATE:     PURCHASER:
659	PURCHASER:
660
661	The disclosure must be supplied by the developer, or by the
662	parcel owner if the sale is by an owner that is not the
663	developer. Any contract or agreement for sale shall refer to and
664	incorporate the disclosure summary and shall include, in
665	prominent language, a statement that the potential buyer should
666	not execute the contract or agreement until he or she has they
667	have received and read the disclosure summary required by this
668	section.
669	Section 6.  Effective July 1, 2010, paragraph (d) of
670	subsection (1) of section 34.01, Florida Statutes, is amended to
671	read:
672	34.01  Jurisdiction of county court.--
673	(1)  County courts shall have original jurisdiction:
674	(d)  Of disputes occurring in the homeowners' associations
675	as described in part IV of chapter 720 s. 720.311(2)(a), which
676	shall be concurrent with jurisdiction of the circuit courts.
677	Section 7.  Effective July 1, 2010, subsection (2) of
678	section 720.302, Florida Statutes, is amended to read:
679	720.302  Purposes, scope, and application.--
680	(2)  The Legislature recognizes that it is not in the best
681	interest of homeowners' associations or the individual
682	association members thereof to create or impose a bureau or
683	other agency of state government to regulate the affairs of
684	homeowners' associations. However, in accordance with part IV of
685	this chapter s. 720.311, the Legislature finds that homeowners'
686	associations and their individual members will benefit from an
687	expedited alternative process for resolution of election and
688	recall disputes and presuit mediation of other disputes
689	involving covenant enforcement in homeowner's associations and
690	deed-restricted communities using the procedures provided in
691	part IV of and authorizes the department to hear, administer,
692	and determine these disputes as more fully set forth in this
693	chapter. Further, the Legislature recognizes that certain
694	contract rights have been created for the benefit of homeowners'
695	associations and members thereof as well as deed-restricted
696	communities before the effective date of this act and that part
697	IV of this chapter is ss. 720.301-720.407 are not intended to
698	impair such contract rights, including, but not limited to, the
699	rights of the developer to complete the community as initially
700	contemplated.
701	Section 8.  Effective July 1, 2010, section 720.311,
702	Florida Statutes, is repealed.
703	Section 9.  Effective July 1, 2010, part IV of chapter 720,
704	Florida Statutes, to be entitled "Dispute Resolution,"
705	consisting of sections 720.501, 720.502, 720.503, 720.504,
706	720.505, 720.506, 720.507, 720.508, 720.509, and 720.510, is
707	created to read:
708	720.501  Short title.--This part may be cited as the "Home
709	Court Advantage Dispute Resolution Act."
710	720.502  Legislative findings.--The Legislature finds that
711	alternative dispute resolution has made progress in reducing
712	court dockets and trials and in offering a more efficient, cost-
713	effective option to litigation.
714	720.503  Applicability of this part.--
715	(1)  Unless otherwise provided in this part, before a
716	dispute described in this part between a homeowners' association
717	and a parcel owner or owners, or a dispute between parcel owners
718	within the same homeowners' association, may be filed in court,
719	the dispute is subject to presuit mediation pursuant to s.
720	720.505 or presuit arbitration pursuant to s. 720.507, at the
721	option of the aggrieved party who initiates the first formal
722	action of alternative dispute resolution under this part. The
723	parties may mutually agree to participate in both presuit
724	mediation and presuit arbitration prior to suit being filed by
725	either party.
726	(2)  Unless otherwise provided in this part, the mediation
727	and arbitration provisions of this part are limited to disputes
728	between an association and a parcel owner or owners or between
729	parcel owners regarding the use of or changes to the parcel or
730	the common areas under the governing documents and other
731	disputes involving violations of the recorded declaration of
732	covenants or other governing documents, disputes arising
733	concerning enforcement of the governing documents or any
734	amendments thereto, and disputes involving access to the
735	official records of the association. A dispute concerning title
736	to any parcel or common area, interpretation or enforcement of
737	any warranty, the levy of a fee or assessment, the collection of
738	an assessment levied against a party, the eviction or other
739	removal of a tenant from a parcel, alleged breaches of fiduciary
740	duty by one or more directors, or any action to collect mortgage
741	indebtedness or to foreclosure a mortgage shall not be subject
742	to the provisions of this part.
743	(3)  All disputes arising after the effective date of this
744	part involving the election of the board of directors for an
745	association or the recall of any member of the board or officer
746	of the association shall not be eligible for presuit mediation
747	under s. 720.505, but shall be subject to the provisions
748	concerning presuit arbitration under s. 720.507.
749	(4)  In any dispute subject to presuit mediation or presuit
750	arbitration under this part for which emergency relief is
751	required, a motion for temporary injunctive relief may be filed
752	with the court without first complying with the presuit
753	mediation or presuit arbitration requirements of this part.
754	After any issues regarding emergency or temporary relief are
755	resolved, the court may refer the parties to a mediation program
756	administered by the courts or require mediation or arbitration
757	under this part.
758	(5)  The mailing of a statutory notice of presuit mediation
759	or presuit arbitration as provided in this part shall toll the
760	applicable statute of limitations during the pendency of the
761	mediation or arbitration and for a period of 30 days following
762	the conclusion of either proceeding. The 30-day period shall
763	start upon the filing of the mediator's notice of impasse or the
764	arbitrator's written arbitration award. If the parties mutually
765	agree to participate in both presuit mediation and presuit
766	arbitration under this part, the tolling of the applicable
767	statute of limitations for each such alternative dispute
768	resolution proceeding shall be consecutive.
769	720.504  Notice of dispute.--Prior to giving the statutory
770	notice to proceed under presuit medication or presuit
771	arbitration under this part, the aggrieved association or parcel
772	owner shall first provide written notice of the dispute to the
773	responding party in the manner provided by this section.
774	(1)  The notice of dispute shall be delivered to the
775	responding party by certified mail, return receipt requested, or
776	the notice of dispute may be hand delivered, and the person
777	making delivery shall file with their notice of mediation either
778	the proof of receipt of mailing or an affidavit stating the date
779	and time of the delivery of the notice of dispute. If the notice
780	is delivered by certified mail, return receipt requested, and
781	the responding party fails or refuses to accept delivery, notice
782	shall be considered properly delivered for purposes of this
783	section on the date of the first attempted delivery.
784	(2)  The notice of dispute shall state with specificity the
785	nature of the dispute, including the date, time, and location of
786	each event that is the subject of the dispute and the action
787	requested to resolve the dispute. The notice shall also include
788	the text of any provision in the governing documents, including
789	the rules and regulations, of the association which form the
790	basis of the dispute.
791	(3)  Unless the parties otherwise agree in writing to a
792	longer time period, the party receiving the notice of dispute
793	shall have 10 days following the date of receipt of notice to
794	resolve the dispute. If the alleged dispute has not been
795	resolved within the 10-day period, the aggrieved party may
796	proceed under this part at any time thereafter within the
797	applicable statute of limitations.
798	(4)  A copy of the notice and the text of the provision in
799	the governing documents, or the rules and regulations, of the
800	association which are the basis of the dispute, along with proof
801	of service of the notice of dispute and a copy of any written
802	responses received from the responding party, shall be included
803	as an exhibit to any demand for mediation or arbitration under
804	this part.
805	720.505  Presuit mediation.--
806	(1)  Disputes between an association and a parcel owner or
807	owners and between parcel owners must be submitted to presuit
808	mediation before the dispute may be filed in court; or, at the
809	election of the party initiating the presuit procedures, such
810	dispute may be submitted to presuit arbitration pursuant to s.
811	720.507 before the dispute may be filed in court. An aggrieved
812	party who elects to use the presuit mediation procedure under
813	this section shall serve on the responding party a written
814	notice of presuit mediation in substantially the following form:
815
816	STATUTORY NOTICE OF PRESUIT MEDIATION
817
818	THE ALLEGED AGGRIEVED PARTY, ____________________,
819	HEREBY DEMANDS THAT ____________________, AS THE
820	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
821	MEDIATION IN CONNECTION WITH THE FOLLOWING DISPUTE(S)
822	WITH YOU, WHICH BY STATUTE ARE OF A TYPE THAT ARE
823	SUBJECT TO PRESUIT MEDIATION:
824
825	ATTACHED IS A COPY OF THE PRIOR NOTICE OF VIOLATION
826	WHICH DETAILS THE SPECIFIC NATURE OF THE DISPUTE(S) TO
827	BE MEDIATED AND THE AUTHORITY SUPPORTING A FINDING OF
828	A VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
829	LIMITED TO, THE APPLICABLE PROVISIONS OF THE GOVERNING
830	DOCUMENTS OF THE ASSOCIATION BELIEVED TO APPLY TO THE
831	DISPUTE BETWEEN THE PARTIES, AND A COPY OF THE NOTICE
832	YOU RECEIVED OR REFUSED AND COPIES OF ANY WRITTEN
833	RESPONSE(S) RECEIVED FROM YOU ABOUT THIS DISPUTE.
834
835	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
836	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
837	MEDIATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
838	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
839	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
840	MEDIATION WITH A NEUTRAL THIRD-PARTY MEDIATOR IN ORDER
841	TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
842	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
843	PARTICIPATE IN THIS PROCESS. UNLESS YOU RESPOND TO
844	THIS NOTICE BY FILING WITH THE AGGRIEVED PARTY A
845	NOTICE OF OPTING OUT AND DEMAND FOR ARBITRATION UNDER
846	S. 720.506, FLORIDA STATUTES, YOUR FAILURE TO
847	PARTICIPATE IN THE MEDIATION PROCESS MAY RESULT IN A
848	LAWSUIT BEING FILED IN COURT AGAINST YOU WITHOUT
849	FURTHER NOTICE.
850
851	THE PROCESS OF MEDIATION INVOLVES A SUPERVISED
852	NEGOTIATION PROCESS IN WHICH A TRAINED, NEUTRAL THIRD-
853	PARTY MEDIATOR MEETS WITH BOTH PARTIES AND ASSISTS
854	THEM IN EXPLORING POSSIBLE OPPORTUNITIES FOR RESOLVING
855	PART OR ALL OF THE DISPUTE. BY AGREEING TO PARTICIPATE
856	IN PRESUIT MEDIATION, YOU ARE NOT BOUND IN ANY WAY TO
857	CHANGE YOUR POSITION. FURTHERMORE, THE MEDIATOR HAS NO
858	AUTHORITY TO MAKE ANY DECISIONS IN THIS MATTER OR TO
859	DETERMINE WHO IS RIGHT OR WRONG AND MERELY ACTS AS A
860	FACILITATOR TO ENSURE THAT EACH PARTY UNDERSTANDS THE
861	POSITION OF THE OTHER PARTY AND THAT ALL OPTIONS FOR
862	REASONABLE SETTLEMENT ARE FULLY EXPLORED.
863
864	IF AN AGREEMENT IS REACHED, IT SHALL BE REDUCED TO
865	WRITING AND BECOME A BINDING AND ENFORCEABLE CONTRACT
866	BETWEEN THE PARTIES. A RESOLUTION OF ONE OR MORE
867	DISPUTES IN THIS FASHION AVOIDS THE NEED TO LITIGATE
868	THESE ISSUES IN COURT. THE FAILURE TO REACH AN
869	AGREEMENT, OR THE FAILURE OF A PARTY TO PARTICIPATE IN
870	THE PROCESS, RESULTS IN THE MEDIATOR DECLARING AN
871	IMPASSE IN THE MEDIATION, AFTER WHICH THE AGGRIEVED
872	PARTY MAY PROCEED TO FILE A LAWSUIT ON ALL
873	OUTSTANDING, UNSETTLED DISPUTES. IF YOU HAVE FAILED OR
874	REFUSED TO PARTICIPATE IN THE ENTIRE MEDIATION
875	PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER
876	ATTORNEY'S FEES IF YOU PREVAIL IN A SUBSEQUENT COURT
877	PROCEEDING INVOLVING THE SAME DISPUTE.
878
879	THE AGGRIEVED PARTY HAS SELECTED FROM A LIST OF
880	ELIGIBLE, QUALIFIED MEDIATORS AT LEAST FIVE CERTIFIED
881	MEDIATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
882	NEUTRAL AND QUALIFIED TO MEDIATE THE DISPUTE. YOU HAVE
883	THE RIGHT TO SELECT ANY ONE OF THESE MEDIATORS. THE
884	FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR MORE
885	OF THE LISTED MEDIATORS DOES NOT MEAN THAT THE
886	MEDIATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
887	FACILITATOR. THE NAMES OF THE MEDIATORS THAT THE
888	AGGRIEVED PARTY HEREBY SUBMITS TO YOU FROM WHOM YOU
889	MAY CHOOSE ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE
890	NUMBERS, AND HOURLY RATES ARE AS FOLLOWS:
891
892	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
893	HOURLY RATES OF THE MEDIATORS. OTHER PERTINENT
894	INFORMATION ABOUT THE BACKGROUND OF THE MEDIATORS MAY
895	BE INCLUDED AS AN ATTACHMENT.)
896
897	YOU MAY CONTACT THE OFFICES OF THESE MEDIATORS TO
898	CONFIRM THAT EACH OF THE ABOVE-LISTED MEDIATORS WILL
899	BE NEUTRAL AND WILL NOT SHOW ANY FAVORITISM TOWARD
900	EITHER PARTY. UNLESS OTHERWISE AGREED TO BY THE
901	PARTIES, PART IV OF CHAPTER 720, FLORIDA STATUTES,
902	REQUIRES THAT THE PARTIES SHARE THE COSTS OF PRESUIT
903	MEDIATION EQUALLY, INCLUDING THE FEE CHARGED BY THE
904	MEDIATOR. AN AVERAGE MEDIATION MAY REQUIRE 3 TO 4
905	HOURS OF THE MEDIATOR'S TIME, INCLUDING SOME
906	PREPARATION TIME, AND THE PARTIES WOULD NEED TO
907	EQUALLY SHARE THE MEDIATOR'S FEES AS WELL AS BE
908	RESPONSIBLE FOR ALL OF THEIR OWN ATTORNEY'S FEES IF
909	THEY CHOOSE TO EMPLOY AN ATTORNEY IN CONNECTION WITH
910	THE MEDIATION. HOWEVER, USE OF AN ATTORNEY IS NOT
911	REQUIRED AND IS AT THE OPTION OF EACH PARTY. THE
912	MEDIATORS MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR
913	ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY
914	HEREBY AGREES TO PAY OR PREPAY ONE-HALF OF THE
915	SELECTED MEDIATOR'S ESTIMATED FEES AND TO FORWARD THIS
916	AMOUNT OR SUCH OTHER REASONABLE ADVANCE DEPOSITS AS
917	THE MEDIATOR REQUIRES FOR THIS PURPOSE UPON THE
918	SELECTION OF THE MEDIATOR. ANY FUNDS DEPOSITED WILL BE
919	RETURNED TO YOU IF THESE FUNDS ARE IN EXCESS OF YOUR
920	SHARE OF THE MEDIATOR FEES INCURRED.
921
922	TO BEGIN YOUR PARTICIPATION IN PRESUIT MEDIATION TO
923	TRY TO RESOLVE THE DISPUTE WITH YOU AND AVOID FURTHER
924	LEGAL ACTION, PLEASE SIGN BELOW AND CLEARLY INDICATE
925	WHICH MEDIATOR IS ACCEPTABLE TO YOU FROM THE FIVE
926	MEDIATORS LISTED BY THE AGGRIEVED PARTY ABOVE.
927
928	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
929	OF PRESUIT MEDIATION WITHIN 20 DAYS. IN YOUR RESPONSE
930	YOU MUST PROVIDE A LISTING OF AT LEAST THREE DATES AND
931	TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE
932	MEDIATION THAT ARE WITHIN 90 DAYS AFTER THE POSTMARKED
933	DATE OF THE MAILING OF THIS NOTICE OF PRESUIT
934	MEDIATION OR WITHIN 90 DAYS AFTER THE DATE YOU WERE
935	SERVED WITH A COPY OF THIS NOTICE. THE AGGRIEVED PARTY
936	WILL THEN ASK THE MEDIATOR TO SCHEDULE A MUTUALLY
937	CONVENIENT TIME AND PLACE FOR THE MEDIATION CONFERENCE
938	TO BE HELD. IF YOU DO NOT PROVIDE A LIST OF AVAILABLE
939	DATES AND TIMES, THE MEDIATOR IS AUTHORIZED TO
940	SCHEDULE A MEDIATION CONFERENCE WITHOUT TAKING YOUR
941	SCHEDULE AND CONVENIENCE INTO CONSIDERATION. IN NO
942	EVENT SHALL THE MEDIATION CONFERENCE BE LATER THAN 90
943	DAYS AFTER THE NOTICE OF PRESUIT MEDIATION WAS FIRST
944	SERVED UNLESS ALL PARTIES MUTUALLY AGREE OTHERWISE. IN
945	THE EVENT THAT YOU FAIL TO RESPOND WITHIN 20 DAYS
946	AFTER THE DATE OF THIS NOTICE, FAIL TO PROVIDE THE
947	MEDIATOR WITH DATES AND TIMES IN WHICH YOU ARE
948	AVAILABLE FOR THE MEDIATION CONFERENCE, FAIL TO AGREE
949	TO AT LEAST ONE OF THE MEDIATORS THAT THE AGGRIEVED
950	PARTY HAS LISTED, FAIL TO PAY OR PREPAY TO THE
951	MEDIATOR ONE-HALF OF THE COSTS INVOLVED, OR FAIL TO
952	APPEAR AND PARTICIPATE AT THE SCHEDULED MEDIATION, THE
953	AGGRIEVED PARTY WILL BE AUTHORIZED TO PROCEED WITH THE
954	FILING OF A LAWSUIT AGAINST YOU WITHOUT FURTHER
955	NOTICE. IN ANY SUBSEQUENT COURT ACTION, THE AGGRIEVED
956	PARTY MAY SEEK AN AWARD OF REASONABLE ATTORNEY'S FEES
957	AND COSTS INCURRED IN ATTEMPTING TO OBTAIN MEDIATION.
958
959	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
960	LAW, YOUR RESPONSE MUST BE MAILED BY CERTIFIED, FIRST-
961	CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE AGGRIEVED
962	PARTY LISTED ABOVE AT THE ADDRESS SHOWN ON THIS NOTICE
963	AND POSTMARKED NO MORE THAN 20 DAYS AFTER THE DATE OF
964	THE POSTMARKED DATE FOR THIS NOTICE OR WITHIN 20 DAYS
965	AFTER THE DATE UPON WHICH YOU WERE SERVED WITH A COPY
966	OF THIS NOTICE.
967
968	________________________
969	SIGNATURE OF AGGRIEVED PARTY
970
971	______________________
972	PRINTED NAME OF AGGRIEVED PARTY
973
974	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
975	ACCEPTANCE OF THE AGREEMENT TO MEDIATE.
976
977	AGREEMENT TO MEDIATE
978
979	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
980	PRESUIT MEDIATION AND AGREES TO ATTEND A MEDIATION
981	CONDUCTED BY THE FOLLOWING MEDIATOR(S) LISTED BELOW AS
982	ACCEPTABLE TO MEDIATE THIS DISPUTE:
983
984	(LIST ONE ACCEPTABLE MEDIATOR FROM THOSE LISTED BY THE
985	AGGRIEVED PARTY.)
986
987	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE CAN
988	ATTEND AND PARTICIPATE IN THE PRESUIT MEDIATION AT THE
989	FOLLOWING DATES AND TIMES:
990
991	(LIST AT LEAST THREE AVAILABLE DATES AND TIMES WITHIN
992	THE 90-DAY TIME LIMIT DESCRIBED ABOVE.)
993
994	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
995	MEDIATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
996	AS THE MEDIATOR MAY REQUIRE FOR THIS PURPOSE.
997
998	______________________________
999	SIGNATURE OF RESPONDING PARTY #1
1000	______________________________
1001	TELEPHONE CONTACT INFORMATION
1002
1003	______________________________
1004	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
1005	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
1006	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
1007	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
1008	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
1009
1010	(2)(a)  Service of the notice of presuit mediation shall be
1011	effected either by personal service, as provided in chapter 48,
1012	or by certified mail, return receipt requested, in a letter in
1013	substantial conformity with the form provided in subsection (1),
1014	with an additional copy being sent by regular first-class mail,
1015	to the address of the responding party as it last appears on the
1016	books and records of the association or, if not available, then
1017	as it last appears in the official records of the county
1018	property appraiser where the parcel in dispute is located. The
1019	responding party has either 20 days after the postmarked date of
1020	the mailing of the statutory notice or 20 days after the date
1021	the responding party is served with a copy of the notice to
1022	serve a written response to the aggrieved party. The response
1023	shall be served by certified mail, return receipt requested,
1024	with an additional copy being sent by regular first-class mail,
1025	to the address shown on the statutory notice. The date of the
1026	postmark on the envelope for the response shall constitute the
1027	date that the response is served. Once the parties have agreed
1028	on a mediator, the mediator may schedule or reschedule the
1029	mediation for a date and time mutually convenient to the parties
1030	within 90 days after the date of service of the statutory
1031	notice. After such 90-day period, the mediator may reschedule
1032	the mediation only upon the mutual written agreement of all the
1033	parties.
1034	(b)  The parties shall share the costs of presuit mediation
1035	equally, including the fee charged by the mediator, if any,
1036	unless the parties agree otherwise, and the mediator may require
1037	advance payment of his or her reasonable fees and costs. Each
1038	party shall be responsible for that party's own attorney's fees
1039	if a party chooses to be represented by an attorney at the
1040	mediation.
1041	(c)  The party responding to the aggrieved party may
1042	provide a notice of opting out under s. 720.506 and demand
1043	arbitration or may sign the agreement to mediate included in the
1044	notice of presuit mediation. A responding party signing the
1045	agreement to mediate must clearly indicate the name of the
1046	mediator who is acceptable from the five names provided by the
1047	aggrieved party and must provide a list of dates and times in
1048	which the responding party is available to participate in the
1049	mediation within 90 days after the date the responding party was
1050	served, either by process server or by certified mail, with the
1051	statutory notice of presuit mediation.
1052	(d)  The mediator who has been selected and agreed to
1053	mediate must schedule the mediation conference at a mutually
1054	convenient time and place within that 90-day period; but, if the
1055	responding party does not provide a list of available dates and
1056	times, the mediator is authorized to schedule a mediation
1057	conference without taking the responding party's schedule and
1058	convenience into consideration. Within 10 days after the
1059	designation of the mediator, the mediator shall coordinate with
1060	the parties and notify the parties in writing of the date, time,
1061	and place of the mediation conference.
1062	(e)  The mediation conference must be held on the scheduled
1063	date and may be rescheduled if a rescheduled date is approved by
1064	the mediator. However, in no event shall the mediation be held
1065	later than 90 days after the notice of presuit mediation was
1066	first served, unless all parties mutually agree in writing
1067	otherwise. If the presuit mediation is not completed within the
1068	required time limits, the mediator shall declare an impasse
1069	unless the mediation date is extended by mutual written
1070	agreement by all parties and approved by the mediator.
1071	(f)  If the responding party fails to respond within 30
1072	days after the date of service of the statutory notice of
1073	presuit mediation, fails to agree to at least one of the
1074	mediators listed by the aggrieved party in the notice, fails to
1075	pay or prepay to the mediator one-half of the costs of the
1076	mediator, or fails to appear and participate at the scheduled
1077	mediation, the aggrieved party shall be authorized to proceed
1078	with the filing of a lawsuit without further notice.
1079	(g)1.  The failure of any party to respond to the statutory
1080	notice of presuit mediation within 20 days, the failure to agree
1081	upon a mediator, the failure to provide a listing of dates and
1082	times in which the responding party is available to participate
1083	in the mediation within 90 days after the date the responding
1084	party was served with the statutory notice of presuit mediation,
1085	the failure to make payment of fees and costs within the time
1086	established by the mediator, or the failure to appear for a
1087	scheduled mediation session without the approval of the
1088	mediator, shall in each instance constitute a failure or refusal
1089	to participate in the mediation process and shall operate as an
1090	impasse in the presuit mediation by such party, entitling the
1091	other party to file a lawsuit in court and to seek an award of
1092	the costs and attorney's fees associated with the mediation.
1093	2.  Persons who fail or refuse to participate in the entire
1094	mediation process may not recover attorney's fees and costs in
1095	subsequent litigation relating to the same dispute between the
1096	same parties. If any presuit mediation session cannot be
1097	scheduled and conducted within 90 days after the offer to
1098	participate in mediation was filed, through no fault of either
1099	party, then an impasse shall be deemed to have occurred unless
1100	the parties mutually agree in writing to extend this deadline.
1101	In the event of such impasse, each party shall be responsible
1102	for its own costs and attorney's fees and one-half of any
1103	mediator fees and filing fees, and either party may file a
1104	lawsuit in court regarding the dispute.
1105	720.506  Opt-out of presuit mediation.--A party served with
1106	a notice of presuit mediation under s. 720.505 may opt out of
1107	presuit mediation and demand that the dispute proceed under
1108	nonbinding arbitration as follows:
1109	(1)  In lieu of a response to the notice of presuit
1110	mediation as required under s. 720.505, the responding party may
1111	serve upon the aggrieved party, in the same manner as the
1112	response to a notice for presuit mediation under s. 720.505, a
1113	notice of opting out of mediation and demand that the dispute
1114	instead proceed to presuit arbitration under s. 720.507.
1115	(2)  The aggrieved party shall be relieved from having to
1116	satisfy the requirements of s. 720.504 as a condition precedent
1117	to filing the demand for presuit arbitration.
1118	(3)  Except as otherwise provided in this part, the choice
1119	of which presuit alternative dispute resolution procedure is
1120	used shall be at the election of the aggrieved party who first
1121	initiated such proceeding after complying with the provisions of
1122	s. 720.504.
1123	720.507  Presuit arbitration.--
1124	(1)  Disputes between an association and a parcel owner or
1125	owners and disputes between parcel owners are subject to a
1126	demand for presuit arbitration pursuant to this section before
1127	the dispute may be filed in court. A party who elects to use the
1128	presuit arbitration procedure under this part shall serve on the
1129	responding party a written notice of presuit arbitration in
1130	substantially the following form:
1131
1132	STATUTORY NOTICE OF PRESUIT ARBITRATION
1133
1134	THE ALLEGED AGGRIEVED PARTY, ____________________,
1135	HEREBY DEMANDS THAT ____________________, AS THE
1136	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
1137	ARBITRATION IN CONNECTION WITH THE FOLLOWING
1138	DISPUTE(S) WITH YOU, WHICH BY STATUTE ARE OF A TYPE
1139	THAT ARE SUBJECT TO PRESUIT ARBITRATION:
1140
1141	(LIST SPECIFIC NATURE OF THE DISPUTE OR DISPUTES TO BE
1142	ARBITRATED AND THE AUTHORITY SUPPORTING A FINDING OF A
1143	VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
1144	LIMITED TO, ALL APPLICABLE PROVISIONS OF THE GOVERNING
1145	DOCUMENTS BELIEVED TO APPLY TO THE DISPUTE BETWEEN THE
1146	PARTIES.)
1147
1148	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
1149	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
1150	ARBITRATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
1151	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
1152	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
1153	ARBITRATION WITH A NEUTRAL THIRD-PARTY ARBITRATOR IN
1154	ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
1155	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
1156	PARTICIPATE IN THIS PROCESS. IF YOU FAIL TO
1157	PARTICIPATE IN THE ARBITRATION PROCESS, A LAWSUIT MAY
1158	BE BROUGHT AGAINST YOU IN COURT WITHOUT FURTHER
1159	WARNING.
1160
1161	THE PROCESS OF ARBITRATION INVOLVES A NEUTRAL THIRD
1162	PERSON WHO CONSIDERS THE LAW AND FACTS PRESENTED BY
1163	THE PARTIES AND RENDERS A WRITTEN DECISION CALLED AN
1164	"ARBITRATION AWARD." PURSUANT TO S. 720.507, FLORIDA
1165	STATUTES, THE ARBITRATION AWARD SHALL BE FINAL UNLESS
1166	A LAWSUIT IS FILED IN A COURT OF COMPETENT
1167	JURISDICTION FOR THE JUDICIAL CIRCUIT IN WHICH THE
1168	PARCEL(S) GOVERNED BY THE HOMEOWNERS' ASSOCIATION
1169	IS/ARE LOCATED WITHIN 30 DAYS AFTER THE DATE OF THE
1170	ARBITRATION AWARD.
1171
1172	IF A SETTLEMENT AGREEMENT IS REACHED BEFORE THE
1173	ARBITRATION AWARD, IT SHALL BE REDUCED TO WRITING AND
1174	BECOME A BINDING AND ENFORCEABLE CONTRACT OF THE
1175	PARTIES. A RESOLUTION OF ONE OR MORE DISPUTES IN THIS
1176	FASHION AVOIDS THE NEED TO ARBITRATE THESE ISSUES OR
1177	TO LITIGATE THESE ISSUES IN COURT AND SHALL BE THE
1178	SAME AS A SETTLEMENT AGREEMENT REACHED BETWEEN THE
1179	PARTIES UNDER S. 720.505, FLORIDA STATUTES. THE
1180	FAILURE OF A PARTY TO PARTICIPATE IN THE ARBITRATION
1181	PROCESS MAY RESULT IN THE ARBITRATOR ISSUING AN
1182	ARBITRATION AWARD BY DEFAULT IN THE ARBITRATION. IF
1183	YOU HAVE FAILED OR REFUSED TO PARTICIPATE IN THE
1184	ENTIRE ARBITRATION PROCESS, YOU WILL NOT BE ENTITLED
1185	TO RECOVER ATTORNEY'S FEES, EVEN IF YOU PREVAIL IN A
1186	SUBSEQUENT COURT PROCEEDING INVOLVING THE SAME DISPUTE
1187	BETWEEN THE SAME PARTIES.
1188
1189	THE AGGRIEVED PARTY HAS SELECTED AT LEAST FIVE
1190	ARBITRATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
1191	NEUTRAL AND QUALIFIED TO ARBITRATE THE DISPUTE. YOU
1192	HAVE THE RIGHT TO SELECT ANY ONE OF THE ARBITRATORS.
1193	THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR
1194	MORE OF THE LISTED ARBITRATORS DOES NOT MEAN THAT THE
1195	ARBITRATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
1196	ARBITRATOR. ANY ARBITRATOR WHO CANNOT ACT IN THIS
1197	CAPACITY IS REQUIRED ETHICALLY TO DECLINE TO ACCEPT
1198	ENGAGEMENT. THE NAMES OF THE FIVE ARBITRATORS THAT THE
1199	AGGRIEVED PARTY HAS CHOSEN FROM WHICH YOU MAY SELECT
1200	ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE NUMBERS,
1201	AND HOURLY RATES, ARE AS FOLLOWS:
1202
1203	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
1204	HOURLY RATES OF AT LEAST FIVE ARBITRATORS.
1205
1206	YOU MAY CONTACT THE OFFICES OF THESE ARBITRATORS TO
1207	CONFIRM THAT THE LISTED ARBITRATORS WILL BE NEUTRAL
1208	AND WILL NOT SHOW ANY FAVORITISM TOWARD EITHER PARTY.
1209
1210	UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART IV OF
1211	CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE
1212	PARTIES SHARE THE COSTS OF PRESUIT ARBITRATION
1213	EQUALLY, INCLUDING THE FEE CHARGED BY THE ARBITRATOR.
1214	THE PARTIES SHALL BE RESPONSIBLE FOR THEIR OWN
1215	ATTORNEY'S FEES IF THEY CHOOSE TO EMPLOY AN ATTORNEY
1216	IN CONNECTION WITH THE ARBITRATION. HOWEVER, USE OF AN
1217	ATTORNEY TO REPRESENT YOU FOR THE ARBITRATION IS NOT
1218	REQUIRED. THE ARBITRATOR SELECTED MAY REQUIRE THE
1219	ADVANCE PAYMENT OF SOME OR ALL OF THE ANTICIPATED
1220	FEES. THE AGGRIEVED PARTY HEREBY AGREES TO PAY OR
1221	PREPAY ONE-HALF OF THE SELECTED ARBITRATOR'S ESTIMATED
1222	FEES AND TO FORWARD THIS AMOUNT OR SUCH OTHER
1223	REASONABLE ADVANCE DEPOSITS AS THE ARBITRATOR WHO IS
1224	SELECTED REQUIRES FOR THIS PURPOSE. ANY FUNDS
1225	DEPOSITED WILL BE RETURNED TO YOU IF THESE FUNDS ARE
1226	IN EXCESS OF YOUR SHARE OF THE FEES INCURRED.
1227
1228	PLEASE SIGN THE AGREEMENT TO ARBITRATE BELOW AND
1229	CLEARLY INDICATE THE NAME OF THE ARBITRATOR WHO IS
1230	ACCEPTABLE TO YOU FROM THE NAMES LISTED BY THE
1231	AGGRIEVED PARTY.
1232
1233	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
1234	WITHIN 20 DAYS AFTER THE DATE THAT THE NOTICE OF
1235	PRESUIT ARBITRATION WAS EITHER PERSONALLY SERVED ON
1236	YOU OR 20 DAYS AFTER THE POSTMARKED DATE THAT THIS
1237	NOTICE OF PRESUIT ARBITRATION WAS SENT TO YOU BY
1238	CERTIFIED MAIL. YOU MUST ALSO PROVIDE A LIST OF AT
1239	LEAST THREE DATES AND TIMES IN WHICH YOU ARE AVAILABLE
1240	TO PARTICIPATE IN THE ARBITRATION THAT ARE WITHIN 90
1241	DAYS AFTER THE DATE YOU WERE PERSONALLY SERVED OR
1242	WITHIN 90 DAYS AFTER THE POSTMARKED DATE OF THE
1243	CERTIFIED MAILING OF THIS STATUTORY NOTICE OF PRESUIT
1244	ARBITRATION. A COPY OF THIS NOTICE AND YOUR RESPONSE
1245	WILL BE PROVIDED BY THE AGGRIEVED PARTY TO THE
1246	ARBITRATOR SELECTED, AND THE ARBITRATOR WILL SCHEDULE
1247	A MUTUALLY CONVENIENT TIME AND PLACE FOR THE
1248	ARBITRATION CONFERENCE TO BE HELD. IF YOU DO NOT
1249	PROVIDE A LIST OF AVAILABLE DATES AND TIMES, THE
1250	ARBITRATOR IS AUTHORIZED TO SCHEDULE AN ARBITRATION
1251	CONFERENCE WITHOUT TAKING YOUR SCHEDULE AND
1252	CONVENIENCE INTO CONSIDERATION. THE ARBITRATION
1253	CONFERENCE MUST BE HELD ON THE SCHEDULED DATE, OR ANY
1254	RESCHEDULED DATE APPROVED BY THE ARBITRATOR. IN NO
1255	EVENT SHALL THE ARBITRATION CONFERENCE BE LATER THAN
1256	90 DAYS AFTER NOTICE OF THE PRESUIT ARBITRATION WAS
1257	FIRST SERVED, UNLESS ALL PARTIES MUTUALLY AGREE IN
1258	WRITING OTHERWISE. IF THE ARBITRATION IS NOT COMPLETED
1259	WITHIN THE REQUIRED TIME LIMITS, THE ARBITRATOR SHALL
1260	ISSUE AN ARBITRATION AWARD, UNLESS THE HEARING IS
1261	EXTENDED BY MUTUAL WRITTEN AGREEMENT OF THE PARTIES
1262	AND APPROVED BY THE ARBITRATOR. IN THE EVENT THAT YOU
1263	FAIL TO RESPOND WITHIN 20 DAYS AFTER THE DATE YOU WERE
1264	SERVED WITH A COPY OF THIS NOTICE, FAIL TO PROVIDE THE
1265	ARBITRATOR WITH DATES AND TIMES IN WHICH YOU ARE
1266	AVAILABLE FOR THE ARBITRATION CONFERENCE, FAIL TO
1267	AGREE EITHER TO ONE OF THE ARBITRATORS THAT THE
1268	AGGRIEVED PARTY HAS NAMED, FAIL TO PAY OR PREPAY TO
1269	THE ARBITRATOR ONE-HALF OF THE COSTS INVOLVED AS
1270	REQUIRED, OR FAIL TO APPEAR AND PARTICIPATE AT THE
1271	SCHEDULED ARBITRATION CONFERENCE, THE AGGRIEVED PARTY
1272	MAY REQUEST THE ARBITRATOR TO ISSUE AN ARBITRATION
1273	AWARD. IN THE SUBSEQUENT COURT ACTION, THE AGGRIEVED
1274	PARTY SHALL BE ENTITLED TO RECOVER AN AWARD OF
1275	REASONABLE ATTORNEY'S FEES AND COSTS, INCLUDING ANY
1276	FEES PAID TO THE ARBITRATOR, INCURRED IN OBTAINING AN
1277	ARBITRATION AWARD PURSUANT TO S. 720.507, FLORIDA
1278	STATUTES.
1279
1280	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
1281	LAW, YOUR RESPONSE MUST BE POSTMARKED AND MAILED BY
1282	CERTIFIED, FIRST-CLASS MAIL, RETURN RECEIPT REQUESTED,
1283	TO THE ADDRESS SHOWN ON THIS NOTICE OF PRESUIT
1284	ARBITRATION.
1285
1286	_________________________
1287	SIGNATURE OF AGGRIEVED PARTY
1288
1289	______________________
1290	PRINTED NAME OF AGGRIEVED PARTY
1291
1292	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
1293	ACCEPTANCE OF THE AGREEMENT TO ARBITRATE.
1294
1295	AGREEMENT TO ARBITRATE
1296
1297	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
1298	PRESUIT ARBITRATION AND AGREES TO ATTEND AN
1299	ARBITRATION CONDUCTED BY THE FOLLOWING ARBITRATOR
1300	LISTED BELOW AS SOMEONE WHO WOULD BE ACCEPTABLE TO
1301	ARBITRATE THIS DISPUTE:
1302
1303	(IN YOUR RESPONSE, SELECT THE NAME OF ONE ARBITRATOR
1304	THAT IS ACCEPTABLE TO YOU FROM THOSE ARBITRATORS
1305	LISTED BY THE AGGRIEVED PARTY.)
1306
1307	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE IS
1308	AVAILABLE AND ABLE TO ATTEND AND PARTICIPATE IN THE
1309	PRESUIT ARBITRATION CONFERENCE AT THE FOLLOWING DATES
1310	AND TIMES:
1311
1312	(LIST ALL AVAILABLE DATES AND TIMES, OF WHICH THERE
1313	MUST BE AT LEAST THREE, WITHIN 90 DAYS AFTER THE DATE
1314	ON WHICH YOU WERE SERVED, EITHER BY PROCESS SERVER OR
1315	BY CERTIFIED MAIL, WITH THE NOTICE OF PRESUIT
1316	ARBITRATION.)
1317
1318	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
1319	ARBITRATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
1320	AS THE ARBITRATOR MAY REQUIRE FOR THIS PURPOSE.
1321
1322	______________________________
1323	SIGNATURE OF RESPONDING PARTY #1
1324	______________________________
1325	TELEPHONE CONTACT INFORMATION
1326
1327	______________________________
1328	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
1329	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
1330	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
1331	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
1332	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
1333
1334	(2)(a)  Service of the statutory notice of presuit
1335	arbitration shall be effected either by personal service, as
1336	provided in chapter 48, or by certified mail, return receipt
1337	requested, in a letter in substantial conformity with the form
1338	provided in subsection (1), with an additional copy being sent
1339	by regular first-class mail, to the address of the responding
1340	party as it last appears on the books and records of the
1341	association, or if not available, the last address as it appears
1342	on the official records of the county property appraiser for the
1343	county in which the property is situated that is subject to the
1344	association documents. The responding party has 20 days after
1345	the postmarked date of the certified mailing of the statutory
1346	notice of presuit arbitration or 20 days after the date the
1347	responding party is personally served with the statutory notice
1348	of presuit arbitration by to serve a written response to the
1349	aggrieved party. The response shall be served by certified mail,
1350	return receipt requested, with an additional copy being sent by
1351	regular first-class mail, to the address shown on the statutory
1352	notice of presuit arbitration. The postmarked date on the
1353	envelope of the response shall constitute the date the response
1354	was served.
1355	(b)  The parties shall share the costs of presuit
1356	arbitration equally, including the fee charged by the
1357	arbitrator, if any, unless the parties agree otherwise, and the
1358	arbitrator may require advance payment of his or her reasonable
1359	fees and costs. Each party shall be responsible for all of their
1360	own attorney's fees if a party chooses to be represented by an
1361	attorney for the arbitration proceedings.
1362	(c)1.  The party responding to the aggrieved party must
1363	sign the agreement to arbitrate included in the notice of
1364	presuit arbitration and clearly indicate the name of the
1365	arbitrator who is acceptable of those arbitrators listed by the
1366	aggrieved party. The responding party must provide a list of at
1367	least three dates and times in which the responding party is
1368	available to participate in the arbitration conference within 90
1369	days after the date the responding party was served with the
1370	statutory notice of presuit arbitration.
1371	2.  The arbitrator must schedule the arbitration conference
1372	at a mutually convenient time and place, but if the responding
1373	party does not provide a list of available dates and times, the
1374	arbitrator is authorized to schedule an arbitration conference
1375	without taking the responding party's schedule and convenience
1376	into consideration. Within 10 days after the designation of the
1377	arbitrator, the arbitrator shall notify the parties in writing
1378	of the date, time, and place of the arbitration conference.
1379	3.  The arbitration conference must be held on the
1380	scheduled date and may be rescheduled if approved by the
1381	arbitrator. However, in no event shall the arbitration hearing
1382	be later than 90 days after the notice of presuit arbitration
1383	was first served, unless all parties mutually agree in writing
1384	otherwise. If the arbitration hearing is not completed within
1385	the required time limits, the arbitrator may issue an
1386	arbitration award unless the time for the hearing is extended as
1387	provided herein. If the responding party fails to respond within
1388	20 days after the date of statutory notice of presuit
1389	arbitration, fails to agree to at least one of the arbitrators
1390	that have been listed by the aggrieved party in the presuit
1391	notice of arbitration, fails to pay or prepay to the arbitrator
1392	one-half of the costs involved, or fails to appear and
1393	participate at the scheduled arbitration, the aggrieved party is
1394	authorized to proceed with a request that the arbitrator issue
1395	an arbitration award.
1396	(d)1.  The failure of any party to respond to the statutory
1397	notice of presuit arbitration within 20 days, the failure to
1398	either select one of the five arbitrators listed by the
1399	aggrieved party, the failure to provide a listing of dates and
1400	times in which the responding party is available to participate
1401	in the arbitration conference within 90 days after the date of
1402	the responding party being served with the statutory notice of
1403	presuit arbitration, the failure to make payment of fees and
1404	costs as required within the time established by the arbitrator,
1405	or the failure to appear for an arbitration conference without
1406	the approval of the arbitrator, shall entitle the other party to
1407	request the arbitrator to enter an arbitration award, including
1408	an award of the reasonable costs and attorney's fees associated
1409	with the arbitration.
1410	2.  Persons who fail or refuse to participate in the entire
1411	arbitration process may not recover attorney's fees and costs in
1412	any subsequent litigation proceeding relating to the same
1413	dispute involving the same parties.
1414	(3)(a)  In an arbitration proceeding, the arbitrator may
1415	not consider any unsuccessful mediation of the dispute.
1416	(b)  An arbitrator in a proceeding initiated pursuant to
1417	the provisions of this part may shorten the time for discovery
1418	or otherwise limit discovery in a manner consistent with the
1419	policy goals of this part to reduce the time and expense of
1420	litigating homeowners' association disputes initiated pursuant
1421	to this chapter and promoting an expeditious alternative dispute
1422	resolution procedure for parties to such actions.
1423	(4)  At the request of any party to the arbitration, the
1424	arbitrator may issue subpoenas for the attendance of witnesses
1425	and the production of books, records, documents, and other
1426	evidence, and any party on whose behalf a subpoena is issued may
1427	apply to the court for orders compelling such attendance and
1428	production. Subpoenas shall be served and are enforceable in the
1429	manner provided by the Florida Rules of Civil Procedure.
1430	Discovery may, at the discretion of the arbitrator, be permitted
1431	in the manner provided by the Florida Rules of Civil Procedure.
1432	(5)  The final arbitration award shall be sent to the
1433	parties in writing no later than 30 days after the date of the
1434	arbitration hearing, absent extraordinary circumstances
1435	necessitating a later filing the reasons for which shall be
1436	stated in the final award if filed more than 30 days after the
1437	date of the final session of the arbitration conference. An
1438	agreed arbitration award is final in those disputes in which the
1439	parties have mutually agreed to be bound. An arbitration award
1440	decided by the arbitrator is final unless a lawsuit seeking a
1441	trial de novo is filed in a court of competent jurisdiction
1442	within 30 days after the date of the arbitration award. The
1443	right to file for a trial de novo entitles the parties to file a
1444	complaint in the appropriate trial court for a judicial
1445	resolution of the dispute. The prevailing party in an
1446	arbitration proceeding shall be awarded the costs of the
1447	arbitration and reasonable attorney's fees in an amount
1448	determined by the arbitrator.
1449	(6)  The party filing a motion for a trial de novo shall be
1450	assessed the other party's arbitration costs, court costs, and
1451	other reasonable costs, including attorney's fees, investigation
1452	expenses, and expenses for expert or other testimony or evidence
1453	incurred after the arbitration hearing, if the judgment upon the
1454	trial de novo is not more favorable than the final arbitration
1455	award.
1456	720.508  Rules of procedure.--
1457	(1)  Presuit mediation and presuit arbitration proceedings
1458	under this part must be conducted in accordance with the
1459	applicable Florida Rules of Civil Procedure and rules governing
1460	mediations and arbitrations under chapter 44, except that this
1461	part shall be controlling to the extent of any conflict with
1462	other applicable rules or statutes. The arbitrator may shorten
1463	any applicable time period and otherwise limit the scope of
1464	discovery on request of the parties or within the discretion of
1465	the arbitrator exercised consistent with the purpose and
1466	objective of reducing the expense and expeditiously concluding
1467	proceedings under this part.
1468	(2)  Presuit mediation proceedings under s. 720.505 are
1469	privileged and confidential to the same extent as court-ordered
1470	mediation under chapter 44. An arbitrator or judge may not
1471	consider any information or evidence arising from the presuit
1472	mediation proceeding except in a proceeding to impose sanctions
1473	for failure to attend a presuit mediation session or to enforce
1474	a mediated settlement agreement.
1475	(3)  Persons who are not parties to the dispute may not
1476	attend the presuit mediation conference without consent of all
1477	parties, with the exception of counsel for the parties and a
1478	corporate representative designated by the association. Presuit
1479	mediations under this part are not a board meeting for purposes
1480	of notice and participation set forth in this chapter.
1481	(4)  Attendance at a mediation conference by the board of
1482	directors shall not require notice or participation by nonboard
1483	members as otherwise required by this chapter for meetings of
1484	the board.
1485	(5)  Settlement agreements resulting from a mediation or
1486	arbitration proceeding do not have precedential value in
1487	proceedings involving parties other than those participating in
1488	the mediation or arbitration.
1489	(6)  Arbitration awards by an arbitrator shall have
1490	precedential value in other proceedings involving the same
1491	association or with respect to the same parcel owner.
1492	720.509  Mediators and arbitrators; qualifications and
1493	registration.--A person is authorized to conduct mediation or
1494	arbitration under this part if he or she has been certified as a
1495	circuit court civil mediator under the requirements adopted
1496	pursuant to s. 44.106, is a member in good standing with The
1497	Florida Bar, and otherwise meets all other requirements imposed
1498	by chapter 44.
1499	720.510  Enforcement of mediation agreement or arbitration
1500	award.--
1501	(1)  A mediation settlement may be enforced through the
1502	county or circuit court, as applicable, and any costs and
1503	attorney's fees incurred in the enforcement of a settlement
1504	agreement reached at mediation shall be awarded to the
1505	prevailing party in any enforcement action.
1506	(2)  Any party to an arbitration proceeding may enforce an
1507	arbitration award by filing a petition in a court of competent
1508	jurisdiction in which the homeowners' association is located.
1509	The prevailing party in such proceeding shall be awarded
1510	reasonable attorney's fees and costs incurred in such
1511	proceeding.
1512	(3)  If a complaint is filed seeking a trial de novo, the
1513	arbitration award shall be stayed and a petition to enforce the
1514	award may not be granted. Such award, however, shall be
1515	admissible in the court proceeding seeking a trial de novo.
1516	Section 10.  Sections 720.303(10)(b) and 720.306(9),
1517	Florida Statutes, are repealed to the extent that they are
1518	inconsistent with part IV of chapter 720, Florida Statutes.
1519	Section 11.  Except as otherwise expressly provided in this
1520	act, this act shall take effect July 1, 2009.

CODING: Words stricken are deletions; words underlined are additions.