Florida Senate - 2017                                     SB 318
       
       
        
       By Senator Passidomo
       
       28-00349-17                                            2017318__
    1                        A bill to be entitled                      
    2         An act relating to covenants and restrictions of
    3         property owners’ associations; creating s. 712.001,
    4         F.S.; providing a short title; amending s. 712.01,
    5         F.S.; defining and redefining terms; amending s.
    6         712.05, F.S.; revising the interests and rights
    7         protected by filing for record within a specified
    8         timeframe; authorizing a property owners’ association
    9         to preserve and protect certain covenants or
   10         restrictions from extinguishment, subject to specified
   11         requirements; providing that a failure in indexing
   12         does not affect the validity of the notice; extending
   13         the length of time certain covenants or restrictions
   14         are preserved; deleting a provision requiring a two
   15         thirds vote by members of an incorporated homeowners’
   16         association to file certain notices; conforming
   17         provisions to changes made by the act; amending s.
   18         712.06, F.S.; exempting a specified summary notice
   19         from certain notice content requirements; revising the
   20         contents required to be specified by certain notices;
   21         conforming provisions to changes made by the act;
   22         amending s. 712.11, F.S.; conforming provisions to
   23         changes made by the act; amending s. 720.303, F.S.;
   24         requiring a board to take up certain provisions
   25         relating to notice filings at the first board meeting;
   26         creating s. 720.3032, F.S.; providing recording
   27         requirements for an association; providing a document
   28         form for recording by an association to preserve
   29         certain covenants or restrictions; providing that
   30         failure to file one or more notices does not affect
   31         the validity or enforceability of a covenant or
   32         restriction or alter the time before extinguishment
   33         under certain circumstances; requiring a copy of the
   34         filed notice to be sent to all members; requiring the
   35         original signed notice to be recorded with the clerk
   36         of the circuit court or other recorder; amending ss.
   37         702.09 and 702.10, F.S.; conforming provisions to
   38         changes made by the act; amending s. 712.095, F.S.;
   39         conforming a cross-reference; amending ss. 720.403,
   40         720.404, 720.405, and 720.407, F.S.; conforming
   41         provisions to changes made by the act; providing an
   42         effective date.
   43          
   44  Be It Enacted by the Legislature of the State of Florida:
   45  
   46         Section 1. Section 712.001, Florida Statutes, is created to
   47  read:
   48         712.001 Short title.—This chapter may be cited as the
   49  “Marketable Record Titles Act.”
   50         Section 2. Section 712.01, Florida Statutes, is reordered
   51  and amended to read:
   52         712.01 Definitions.—As used in this chapter, the term law:
   53         (1) “Community covenant or restriction” means any agreement
   54  or limitation contained in a document recorded in the public
   55  records of the county in which a parcel is located which:
   56         (a) Subjects the parcel to any use restriction that may be
   57  enforced by a property owners’ association;
   58         (b) Authorizes a property owners’ association to impose a
   59  charge or assessment against the parcel or the parcel owner; or
   60         (c) May be enforced by the Department of Environmental
   61  Protection pursuant to chapter 376 or chapter 403.
   62         (4)(1)The term “Person” includes the as used herein
   63  denotes singular or plural, natural or corporate, private or
   64  governmental, including the state and any political subdivision
   65  or agency thereof as the context for the use thereof requires or
   66  denotes and including any property owners’ homeowners’
   67  association.
   68         (6)(2) “Root of title” means any title transaction
   69  purporting to create or transfer the estate claimed by any
   70  person and which is the last title transaction to have been
   71  recorded at least 30 years before prior to the time when
   72  marketability is being determined. The effective date of the
   73  root of title is the date on which it was recorded.
   74         (7)(3) “Title transaction” means any recorded instrument or
   75  court proceeding that which affects title to any estate or
   76  interest in land and that which describes the land sufficiently
   77  to identify its location and boundaries.
   78         (5)(4)Property owners’ association” The termhomeowners’
   79  association” means a homeowners’ association as defined in s.
   80  720.301, a corporation or other entity responsible for the
   81  operation of property in which the voting membership is made up
   82  of the owners of the property or their agents, or a combination
   83  thereof, and in which membership is a mandatory condition of
   84  property ownership, or an association of parcel owners which is
   85  authorized to enforce a community covenant or restriction use
   86  restrictions that is are imposed on the parcels.
   87         (3)(5)The term “Parcel” means real property that which is
   88  used for residential purposes and that is subject to exclusive
   89  ownership and which is subject to any covenant or restriction of
   90  a property owners’ homeowners’ association.
   91         (2)(6)The term “Covenant or restriction” means any
   92  agreement or limitation contained in a document recorded in the
   93  public records of the county in which a parcel is located which
   94  subjects the parcel to any use or other restriction or
   95  obligation which may be enforced by a homeowners’ association or
   96  which authorizes a homeowners’ association to impose a charge or
   97  assessment against the parcel or the owner of the parcel or
   98  which may be enforced by the Florida Department of Environmental
   99  Protection pursuant to chapter 376 or chapter 403.
  100         Section 3. Section 712.05, Florida Statutes, is amended to
  101  read:
  102         712.05 Effect of filing notice.—
  103         (1) A person claiming an interest in land or other right
  104  subject to extinguishment under this chapter a homeowners’
  105  association desiring to preserve a covenant or restriction may
  106  preserve and protect such interest or right the same from
  107  extinguishment by the operation of this chapter act by filing
  108  for record, at any time during the 30-year period immediately
  109  following the effective date of the root of title, a written
  110  notice in accordance with s. 712.06 this chapter.
  111         (2) A property owners’ association may preserve and protect
  112  a community covenant or restriction from extinguishment by the
  113  operation of this chapter by filing for record, at any time
  114  during the 30-year period immediately following the effective
  115  date of the root of title:
  116         (a) A written notice in accordance with s. 712.06; or
  117         (b) A summary notice in substantial form and content as
  118  required under s. 720.3032(2). Failure of a summary notice to be
  119  indexed to the current owners of the affected property does not
  120  affect the validity of the notice or vitiate the effect of the
  121  filing of such notice.
  122         (3)A Such notice under subsection (1) or subsection (2)
  123  preserves an interest in land or other such claim of right
  124  subject to extinguishment under this chapter, or a such covenant
  125  or restriction or portion of such covenant or restriction, for
  126  not less than up to 30 years after filing the notice unless the
  127  notice is filed again as required in this chapter. A person’s
  128  disability or lack of knowledge of any kind may not delay the
  129  commencement of or suspend the running of the 30-year period.
  130  Such notice may be filed for record by the claimant or by any
  131  other person acting on behalf of a claimant who is:
  132         (a) Under a disability;
  133         (b) Unable to assert a claim on his or her behalf; or
  134         (c) One of a class, but whose identity cannot be
  135  established or is uncertain at the time of filing such notice of
  136  claim for record.
  137  
  138  Such notice may be filed by a homeowners’ association only if
  139  the preservation of such covenant or restriction or portion of
  140  such covenant or restriction is approved by at least two-thirds
  141  of the members of the board of directors of an incorporated
  142  homeowners’ association at a meeting for which a notice, stating
  143  the meeting’s time and place and containing the statement of
  144  marketable title action described in s. 712.06(1)(b), was mailed
  145  or hand delivered to members of the homeowners’ association at
  146  least 7 days before such meeting. The property owners’
  147  homeowners’ association or clerk of the circuit court is not
  148  required to provide additional notice pursuant to s. 712.06(3).
  149  The preceding sentence is intended to clarify existing law.
  150         (4)(2) It is shall not be necessary for the owner of the
  151  marketable record title, as described in s. 712.02 herein
  152  defined, to file a notice to protect his or her marketable
  153  record title.
  154         Section 4. Subsections (1) and (3) of section 712.06,
  155  Florida Statutes, are amended to read:
  156         712.06 Contents of notice; recording and indexing.—
  157         (1) To be effective, the notice referred to in s. 712.05,
  158  other than the summary notice referred to in s. 712.05(2)(b),
  159  must shall contain:
  160         (a) The name or description and mailing address of the
  161  claimant or the property owners’ homeowners’ association
  162  desiring to preserve any covenant or restriction and the name
  163  and particular post office address of the person filing the
  164  claim or the homeowners’ association.
  165         (b) The name and mailing post office address of an owner,
  166  or the name and mailing post office address of the person in
  167  whose name the said property is assessed on the last completed
  168  tax assessment roll of the county at the time of filing, who,
  169  for purpose of such notice, shall be deemed to be an owner;
  170  provided, however, if a property owners’ homeowners’ association
  171  is filing the notice, then the requirements of this paragraph
  172  may be satisfied by attaching to and recording with the notice
  173  an affidavit executed by the appropriate member of the board of
  174  directors of the property owners’ homeowners’ association
  175  affirming that the board of directors of the property owners’
  176  homeowners’ association caused a statement in substantially the
  177  following form to be mailed or hand delivered to the members of
  178  that property owners’ homeowners’ association:
  179  
  180                STATEMENT OF MARKETABLE TITLE ACTION               
  181  
  182         The [name of property owners’ homeowners’ association] (the
  183  “Association”) has taken action to ensure that the [name of
  184  declaration, covenant, or restriction], recorded in Official
  185  Records Book ...., Page ...., of the public records of ....
  186  County, Florida, as may be amended from time to time, currently
  187  burdening the property of each and every member of the
  188  Association, retains its status as the source of marketable
  189  title with regard to the affected real property the transfer of
  190  a member’s residence. To this end, the Association shall cause
  191  the notice required by chapter 712, Florida Statutes, to be
  192  recorded in the public records of .... County, Florida. Copies
  193  of this notice and its attachments are available through the
  194  Association pursuant to the Association’s governing documents
  195  regarding official records of the Association.
  196  
  197         (c) A full and complete description of all land affected by
  198  such notice, which description shall be set forth in particular
  199  terms and not by general reference, but if said claim is founded
  200  upon a recorded instrument or a covenant or a restriction, then
  201  the description in such notice may be the same as that contained
  202  in such recorded instrument or covenant or restriction, provided
  203  the same shall be sufficient to identify the property.
  204         (d) A statement of the claim showing the nature,
  205  description, and extent of such claim or other right subject to
  206  extinguishment under this chapter or, in the case of a covenant
  207  or restriction, a copy of the covenant or restriction, except
  208  that it is shall not be necessary to show the amount of any
  209  claim for money or the terms of payment.
  210         (e) If such claim or other right subject to extinguishment
  211  under this chapter is based upon an instrument of record or a
  212  recorded covenant or restriction, such instrument of record or
  213  recorded covenant or restriction shall be deemed sufficiently
  214  described to identify the same if the notice includes a
  215  reference to the book and page in which the same is recorded.
  216         (f) Such notice shall be acknowledged in the same manner as
  217  deeds are acknowledged for record.
  218         (3) The person providing the notice referred to in s.
  219  712.05, other than a notice for preservation of a community
  220  covenant or restriction, shall:
  221         (a) Cause the clerk of the circuit court to mail by
  222  registered or certified mail to the purported owner of said
  223  property, as stated in such notice, a copy thereof and shall
  224  enter on the original, before recording the same, a certificate
  225  showing such mailing. For preparing the certificate, the
  226  claimant shall pay to the clerk the service charge as prescribed
  227  in s. 28.24(8) and the necessary costs of mailing, in addition
  228  to the recording charges as prescribed in s. 28.24(12). If the
  229  notice names purported owners having more than one address, the
  230  person filing the same shall furnish a true copy for each of the
  231  several addresses stated, and the clerk shall send one such copy
  232  to the purported owners named at each respective address. Such
  233  certificate shall be sufficient if the same reads substantially
  234  as follows:
  235  
  236         I hereby certify that I did on this ...., mail by
  237  registered (or certified) mail a copy of the foregoing notice to
  238  each of the following at the address stated:
  239  
  240  ...(Clerk of the circuit court)...
  241  of .... County, Florida,
  242  By...(Deputy clerk)...
  243  
  244  The clerk of the circuit court is not required to mail to the
  245  purported owner of such property any such notice that pertains
  246  solely to the preserving of any covenant or restriction or any
  247  portion of a covenant or restriction; or
  248         (b) Publish once a week, for 2 consecutive weeks, the
  249  notice referred to in s. 712.05, with the official record book
  250  and page number in which such notice was recorded, in a
  251  newspaper as defined in chapter 50 in the county in which the
  252  property is located.
  253         Section 5. Section 712.11, Florida Statutes, is amended to
  254  read:
  255         712.11 Covenant revitalization.—A property owners’
  256  homeowners’ association not otherwise subject to chapter 720 may
  257  use the procedures set forth in ss. 720.403-720.407 to revive
  258  covenants that have lapsed under the terms of this chapter.
  259         Section 6. Paragraph (e) is added to subsection (2) of
  260  section 720.303, Florida Statutes, to read:
  261         720.303 Association powers and duties; meetings of board;
  262  official records; budgets; financial reporting; association
  263  funds; recalls.—
  264         (2) BOARD MEETINGS.—
  265         (e) At the first board meeting, excluding the
  266  organizational meeting, which follows the annual meeting of the
  267  members, the board shall consider the desirability of filing
  268  notices to preserve the covenants or restrictions affecting the
  269  community or association from extinguishment under the
  270  Marketable Record Titles Act, chapter 712, and to authorize and
  271  direct the appropriate officer to file notice in accordance with
  272  s. 720.3032.
  273         Section 7. Section 720.3032, Florida Statutes, is created
  274  to read:
  275         720.3032 Notice of association information; preservation
  276  from Marketable Record Titles Act.—
  277         (1)Not less than once every 5 years, each association
  278  shall record in the official records of each county in which the
  279  community is located a notice specifying:
  280         (a)The legal name of the association.
  281         (b)The mailing and physical addresses of the association.
  282         (c)The names of the affected subdivision plats and
  283  condominiums or, if not applicable, the common name of the
  284  community.
  285         (d)The name, address, and telephone number for the current
  286  community association management firm or community association
  287  manager, if any.
  288         (e)Indication as to whether the association desires to
  289  preserve the covenants or restrictions affecting the community
  290  or association from extinguishment under the Marketable Record
  291  Titles Act, chapter 712.
  292         (f)A listing by name and recording information of those
  293  covenants or restrictions affecting the community which the
  294  association desires to be preserved from extinguishment.
  295         (g)The legal description of the community affected by the
  296  covenants or restrictions, which may be satisfied by a reference
  297  to a recorded plat.
  298         (h)The signature of a duly authorized officer of the
  299  association, acknowledged in the same manner as deeds are
  300  acknowledged for record.
  301         (2)Recording a document in substantially the following
  302  form satisfies the notice obligation and constitutes a summary
  303  notice as specified in s. 712.05(2)(b) sufficient to preserve
  304  and protect the referenced covenants and restrictions from
  305  extinguishment under the Marketable Record Titles Act, chapter
  306  712.
  307  
  308  Notice of ...(name of association)... under s. 720.3032, Florida 
  309     Statutes, and notice to preserve and protect covenants and    
  310    restrictions from extinguishment under the Marketable Record   
  311             Titles Act, chapter 712, Florida Statutes.            
  312  
  313         Instructions to recorder: Please index both the legal name
  314  of the association and the names shown in item 3.
  315         1. Legal name of association: ....
  316         2. Mailing and physical addresses of association: .... ....
  317         3.Names of the subdivision plats, or, if none, common name
  318  of community: ....
  319         4. Name, address, and telephone number for management
  320  company, if any: ................
  321         5. This notice does .... does not .... constitute a notice
  322  to preserve and protect covenants or restrictions from
  323  extinguishment under the Marketable Record Titles Act.
  324         6. The following covenants or restrictions affecting the
  325  community which the association desires to be preserved from
  326  extinguishment:
  327  ...(Name of instrument)...
  328  ...(Official Records Book where recorded & page)...
  329  ...(List of instruments)...
  330  ...(List of recording information)...
  331         7. The legal description of the community affected by the
  332  listed covenants or restrictions is: ...(Legal description,
  333  which may be satisfied by reference to a recorded plat)...
  334         This notice is filed on behalf of ...(Name of
  335  association)... as of ...(Date)....
  336  ...(Name of association)...
  337  
  338  By: ....
  339  ...(Name of individual officer)...
  340  ...(Title of officer)...
  341  ...(Notary acknowledgment)...
  342  
  343         (3) The failure to file one or more notices does not affect
  344  the validity or enforceability of any covenant or restriction
  345  nor in any way alter the remaining time before extinguishment by
  346  the Marketable Record Titles Act, chapter 712.
  347         (4)A copy of the notice, as filed, must be included as
  348  part of the next notice of meeting or other mailing sent to all
  349  members.
  350         (5)The original signed notice must be recorded in the
  351  official records of the clerk of the circuit court or other
  352  recorder for the county.
  353         Section 8. Section 702.09, Florida Statutes, is amended to
  354  read:
  355         702.09 Definitions.—For the purposes of ss. 702.07 and
  356  702.08, the words “decree of foreclosure” shall include a
  357  judgment or order rendered or passed in the foreclosure
  358  proceedings in which the decree of foreclosure shall be
  359  rescinded, vacated, and set aside; the word “mortgage” shall
  360  mean any written instrument securing the payment of money or
  361  advances and includes liens to secure payment of assessments
  362  arising under chapters 718 and 719 and liens created pursuant to
  363  the recorded covenants of a property owners’ homeowners’
  364  association as defined in s. 712.01; the word “debt” shall
  365  include promissory notes, bonds, and all other written
  366  obligations given for the payment of money; the words
  367  “foreclosure proceedings” shall embrace every action in the
  368  circuit or county courts of this state wherein it is sought to
  369  foreclose a mortgage and sell the property covered by the same;
  370  and the word “property” shall mean and include both real and
  371  personal property.
  372         Section 9. Subsection (1) of section 702.10, Florida
  373  Statutes, is amended to read:
  374         702.10 Order to show cause; entry of final judgment of
  375  foreclosure; payment during foreclosure.—
  376         (1) A lienholder may request an order to show cause for the
  377  entry of final judgment in a foreclosure action. For purposes of
  378  this section, the term “lienholder” includes the plaintiff and a
  379  defendant to the action who holds a lien encumbering the
  380  property or a defendant who, by virtue of its status as a
  381  condominium association, cooperative association, or property
  382  owners’ homeowners’ association, may file a lien against the
  383  real property subject to foreclosure. Upon filing, the court
  384  shall immediately review the request and the court file in
  385  chambers and without a hearing. If, upon examination of the
  386  court file, the court finds that the complaint is verified,
  387  complies with s. 702.015, and alleges a cause of action to
  388  foreclose on real property, the court shall promptly issue an
  389  order directed to the other parties named in the action to show
  390  cause why a final judgment of foreclosure should not be entered.
  391         (a) The order shall:
  392         1. Set the date and time for a hearing to show cause. The
  393  date for the hearing may not occur sooner than the later of 20
  394  days after service of the order to show cause or 45 days after
  395  service of the initial complaint. When service is obtained by
  396  publication, the date for the hearing may not be set sooner than
  397  30 days after the first publication.
  398         2. Direct the time within which service of the order to
  399  show cause and the complaint must be made upon the defendant.
  400         3. State that the filing of defenses by a motion, a
  401  responsive pleading, an affidavit, or other papers before the
  402  hearing to show cause that raise a genuine issue of material
  403  fact which would preclude the entry of summary judgment or
  404  otherwise constitute a legal defense to foreclosure shall
  405  constitute cause for the court not to enter final judgment.
  406         4. State that a defendant has the right to file affidavits
  407  or other papers before the time of the hearing to show cause and
  408  may appear personally or by way of an attorney at the hearing.
  409         5. State that, if a defendant files defenses by a motion, a
  410  verified or sworn answer, affidavits, or other papers or appears
  411  personally or by way of an attorney at the time of the hearing,
  412  the hearing time will be used to hear and consider whether the
  413  defendant’s motion, answer, affidavits, other papers, and other
  414  evidence and argument as may be presented by the defendant or
  415  the defendant’s attorney raise a genuine issue of material fact
  416  which would preclude the entry of summary judgment or otherwise
  417  constitute a legal defense to foreclosure. The order shall also
  418  state that the court may enter an order of final judgment of
  419  foreclosure at the hearing and order the clerk of the court to
  420  conduct a foreclosure sale.
  421         6. State that, if a defendant fails to appear at the
  422  hearing to show cause or fails to file defenses by a motion or
  423  by a verified or sworn answer or files an answer not contesting
  424  the foreclosure, such defendant may be considered to have waived
  425  the right to a hearing, and in such case, the court may enter a
  426  default against such defendant and, if appropriate, a final
  427  judgment of foreclosure ordering the clerk of the court to
  428  conduct a foreclosure sale.
  429         7. State that if the mortgage provides for reasonable
  430  attorney fees and the requested attorney fees do not exceed 3
  431  percent of the principal amount owed at the time of filing the
  432  complaint, it is unnecessary for the court to hold a hearing or
  433  adjudge the requested attorney fees to be reasonable.
  434         8. Attach the form of the proposed final judgment of
  435  foreclosure which the movant requests the court to enter at the
  436  hearing on the order to show cause.
  437         9. Require the party seeking final judgment to serve a copy
  438  of the order to show cause on the other parties in the following
  439  manner:
  440         a. If a party has been served pursuant to chapter 48 with
  441  the complaint and original process, or the other party is the
  442  plaintiff in the action, service of the order to show cause on
  443  that party may be made in the manner provided in the Florida
  444  Rules of Civil Procedure.
  445         b. If a defendant has not been served pursuant to chapter
  446  48 with the complaint and original process, the order to show
  447  cause, together with the summons and a copy of the complaint,
  448  shall be served on the party in the same manner as provided by
  449  law for original process.
  450  
  451  Any final judgment of foreclosure entered under this subsection
  452  is for in rem relief only. This subsection does not preclude the
  453  entry of a deficiency judgment where otherwise allowed by law.
  454  The Legislature intends that this alternative procedure may run
  455  simultaneously with other court procedures.
  456         (b) The right to be heard at the hearing to show cause is
  457  waived if a defendant, after being served as provided by law
  458  with an order to show cause, engages in conduct that clearly
  459  shows that the defendant has relinquished the right to be heard
  460  on that order. The defendant’s failure to file defenses by a
  461  motion or by a sworn or verified answer, affidavits, or other
  462  papers or to appear personally or by way of an attorney at the
  463  hearing duly scheduled on the order to show cause presumptively
  464  constitutes conduct that clearly shows that the defendant has
  465  relinquished the right to be heard. If a defendant files
  466  defenses by a motion, a verified answer, affidavits, or other
  467  papers or presents evidence at or before the hearing which raise
  468  a genuine issue of material fact which would preclude entry of
  469  summary judgment or otherwise constitute a legal defense to
  470  foreclosure, such action constitutes cause and precludes the
  471  entry of a final judgment at the hearing to show cause.
  472         (c) In a mortgage foreclosure proceeding, when a final
  473  judgment of foreclosure has been entered against the mortgagor
  474  and the note or mortgage provides for the award of reasonable
  475  attorney fees, it is unnecessary for the court to hold a hearing
  476  or adjudge the requested attorney fees to be reasonable if the
  477  fees do not exceed 3 percent of the principal amount owed on the
  478  note or mortgage at the time of filing, even if the note or
  479  mortgage does not specify the percentage of the original amount
  480  that would be paid as liquidated damages.
  481         (d) If the court finds that all defendants have waived the
  482  right to be heard as provided in paragraph (b), the court shall
  483  promptly enter a final judgment of foreclosure without the need
  484  for further hearing if the plaintiff has shown entitlement to a
  485  final judgment and upon the filing with the court of the
  486  original note, satisfaction of the conditions for establishment
  487  of a lost note, or upon a showing to the court that the
  488  obligation to be foreclosed is not evidenced by a promissory
  489  note or other negotiable instrument. If the court finds that a
  490  defendant has not waived the right to be heard on the order to
  491  show cause, the court shall determine whether there is cause not
  492  to enter a final judgment of foreclosure. If the court finds
  493  that the defendant has not shown cause, the court shall promptly
  494  enter a judgment of foreclosure. If the time allotted for the
  495  hearing is insufficient, the court may announce at the hearing a
  496  date and time for the continued hearing. Only the parties who
  497  appear, individually or through an attorney, at the initial
  498  hearing must be notified of the date and time of the continued
  499  hearing.
  500         Section 10. Section 712.095, Florida Statutes, is amended
  501  to read:
  502         712.095 Notice required by July 1, 1983.—Any person whose
  503  interest in land is derived from an instrument or court
  504  proceeding recorded subsequent to the root of title, which
  505  instrument or proceeding did not contain a description of the
  506  land as specified by s. 712.01(7) s. 712.01(3), and whose
  507  interest had not been extinguished prior to July 1, 1981, shall
  508  have until July 1, 1983, to file a notice in accordance with s.
  509  712.06 to preserve the interest.
  510         Section 11. Section 720.403, Florida Statutes, is amended
  511  to read:
  512         720.403 Preservation of residential communities; revival of
  513  declaration of covenants.—
  514         (1) Consistent with required and optional elements of local
  515  comprehensive plans and other applicable provisions of the
  516  Community Planning Act, property owners homeowners are
  517  encouraged to preserve existing residential and other
  518  communities, promote available and affordable housing, protect
  519  structural and aesthetic elements of their residential
  520  community, and, as applicable, maintain roads and streets,
  521  easements, water and sewer systems, utilities, drainage
  522  improvements, conservation and open areas, recreational
  523  amenities, and other infrastructure and common areas that serve
  524  and support the residential community by the revival of a
  525  previous declaration of covenants and other governing documents
  526  that may have ceased to govern some or all parcels in the
  527  community.
  528         (2) In order to preserve a residential community and the
  529  associated infrastructure and common areas for the purposes
  530  described in this section, the parcel owners in a community that
  531  was previously subject to a declaration of covenants that has
  532  ceased to govern one or more parcels in the community may revive
  533  the declaration and the homeowners’ association for the
  534  community upon approval by the parcel owners to be governed
  535  thereby as provided in this act, and upon approval of the
  536  declaration and the other governing documents for the
  537  association by the Department of Economic Opportunity in a
  538  manner consistent with this act.
  539         (3) Part III of this chapter is intended to provide
  540  mechanisms for the revitalization of covenants or restrictions
  541  for all types of communities and property associations and is
  542  not limited to residential communities.
  543         Section 12. Section 720.404, Florida Statutes, is amended
  544  to read:
  545         720.404 Eligible residential communities; requirements for
  546  revival of declaration.—Parcel owners in a community are
  547  eligible to seek approval from the Department of Economic
  548  Opportunity to revive a declaration of covenants under this act
  549  if all of the following requirements are met:
  550         (1) All parcels to be governed by the revived declaration
  551  must have been once governed by a previous declaration that has
  552  ceased to govern some or all of the parcels in the community;
  553         (2) The revived declaration must be approved in the manner
  554  provided in s. 720.405(6); and
  555         (3) The revived declaration may not contain covenants that
  556  are more restrictive on the parcel owners than the covenants
  557  contained in the previous declaration, except that the
  558  declaration may:
  559         (a) Have an effective term of longer duration than the term
  560  of the previous declaration;
  561         (b) Omit restrictions contained in the previous
  562  declaration;
  563         (c) Govern fewer than all of the parcels governed by the
  564  previous declaration;
  565         (d) Provide for amendments to the declaration and other
  566  governing documents; and
  567         (e) Contain provisions required by this chapter for new
  568  declarations that were not contained in the previous
  569  declaration.
  570         Section 13. Subsections (1), (3), (5), and (6) of section
  571  720.405, Florida Statutes, are amended to read:
  572         720.405 Organizing committee; parcel owner approval.—
  573         (1) The proposal to revive a declaration of covenants and
  574  an a homeowners’ association for a community under the terms of
  575  this act shall be initiated by an organizing committee
  576  consisting of not less than three parcel owners located in the
  577  community that is proposed to be governed by the revived
  578  declaration. The name, address, and telephone number of each
  579  member of the organizing committee must be included in any
  580  notice or other document provided by the committee to parcel
  581  owners to be affected by the proposed revived declaration.
  582         (3) The organizing committee shall prepare the full text of
  583  the proposed articles of incorporation and bylaws of the revived
  584  homeowners’ association to be submitted to the parcel owners for
  585  approval, unless the association is then an existing
  586  corporation, in which case the organizing committee shall
  587  prepare the existing articles of incorporation and bylaws to be
  588  submitted to the parcel owners.
  589         (5) A copy of the complete text of the proposed revised
  590  declaration of covenants, the proposed new or existing articles
  591  of incorporation and bylaws of the homeowners’ association, and
  592  a graphic depiction of the property to be governed by the
  593  revived declaration shall be presented to all of the affected
  594  parcel owners by mail or hand delivery not less than 14 days
  595  before the time that the consent of the affected parcel owners
  596  to the proposed governing documents is sought by the organizing
  597  committee.
  598         (6) A majority of the affected parcel owners must agree in
  599  writing to the revived declaration of covenants and governing
  600  documents of the homeowners’ association or approve the revived
  601  declaration and governing documents by a vote at a meeting of
  602  the affected parcel owners noticed and conducted in the manner
  603  prescribed by s. 720.306. Proof of notice of the meeting to all
  604  affected owners of the meeting and the minutes of the meeting
  605  recording the votes of the property owners shall be certified by
  606  a court reporter or an attorney licensed to practice in the
  607  state.
  608         Section 14. Subsection (3) of section 720.407, Florida
  609  Statutes, is amended to read:
  610         720.407 Recording; notice of recording; applicability and
  611  effective date.—
  612         (3) The recorded documents shall include the full text of
  613  the approved declaration of covenants, the articles of
  614  incorporation and bylaws of the homeowners’ association, the
  615  letter of approval by the department, and the legal description
  616  of each affected parcel of property. For purposes of chapter
  617  712, the association is deemed to be and shall be indexed as the
  618  grantee in a title transaction and the parcel owners named in
  619  the revived declaration are deemed to be and shall be indexed as
  620  the grantors in the title transaction.
  621         Section 15. This act shall take effect October 1, 2017.