HB 1317

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

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