CODING: Words stricken are deletions; words underlined are additions.House Bill 3193
Florida House of Representatives - 1998 HB 3193
By Representative Starks
1 A bill to be entitled
2 An act relating to homeowners' associations;
3 amending s. 617.303, F.S.; prohibiting the
4 commingling of certain funds; amending s.
5 617.307, F.S.; revising language with respect
6 to the transition of homeowners' association
7 control in a community; providing a list of
8 required documents which must be provided to
9 the board by the developer; creating s.
10 617.3075, F.S.; providing for prohibited
11 clauses in homeowners' association documents;
12 amending s. 689.26, F.S.; revising language
13 with respect to disclosure to prospective
14 purchasers; providing for the cancellation of
15 certain contracts; providing for the inclusion
16 of information on certain amenities; providing
17 an effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Subsection (8) of section 617.303, Florida
22 Statutes, is renumbered as subsection (9), and a new
23 subsection (8) is added to said section to read:
24 617.303 Association powers and duties; meetings of
25 board; official records; budgets; financial reporting.--
26 (8) ASSOCIATION FUNDS; COMMINGLING.--
27 (a) All association funds held by a developer shall be
28 maintained separately in the association's name. Reserve and
29 operating funds of the association shall not be commingled
30 prior to turnover except the association may jointly invest
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1 reserve funds; however, such jointly invested funds must be
2 accounted for separately.
3 (b) No developer in control of a homeowners'
4 association shall commingle any association funds with his or
5 her funds or with the funds of any other homeowners'
6 association or community association.
7 Section 2. Subsection (1) of section 617.307, Florida
8 Statutes, is amended, subsection (3) of said section is
9 renumbered as subsection (4), and a new subsection (3) is
10 added to said section to read:
11 617.307 Transition of homeowners' association control
12 in a community.--With respect to homeowners' associations as
13 defined in s. 617.301:
14 (1) Members other than the developer are entitled to
15 elect at least a majority of the members of the board of
16 directors of the homeowners' association when the earlier of
17 the following events occurs:
18 (a) Three months after 90 percent of the parcels that
19 are platted, have a site plan approved, are approved for land
20 use, or are otherwise approved by the appropriate governmental
21 authority, prior to the first unit sold, in all phases of the
22 community that will ultimately be operated by the homeowners'
23 association have been conveyed to members; or
24 (b) Such other percentage of the parcels has been
25 conveyed to members, or such other date or event has occurred,
26 as is set forth in the governing documents in order to comply
27 with the requirements of any governmentally chartered entity
28 with regard to the mortgage financing of parcels.
29
30 (c) For purposes of this section, the term "members other
31 than the developer" shall not include builders, contractors,
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1 or others who purchase a parcel for the purpose of
2 constructing improvements thereon for resale.
3 (3) At the time the members are entitled to elect at
4 least a majority of the board of directors of the homeowners'
5 association, the developer shall, at the developer's expense,
6 immediately deliver the following documents to the board:
7 (a) All deeds to common property owned by the
8 association.
9 (b) The original of the association's declarations of
10 covenants and restrictions.
11 (c) A certified copy of the articles of incorporation
12 of the association.
13 (d) A copy of the bylaws.
14 (e) The minute books, including all minutes.
15 (f) The books and records of the association.
16 (g) Policies, rules, and regulations, if any, which
17 have been adopted.
18 (h) Resignations of directors who are required to
19 resign because the developer is required to relinquish control
20 of the association.
21 (i) The financial records of the association from the
22 date of incorporation through the date of turnover.
23 (j) All association funds and control thereof.
24 (k) All tangible property of the association.
25 (l) A copy of all contracts which may be in force with
26 the association as one of the parties.
27 (m) A list of the names and addresses and telephone
28 numbers of all contractors, subcontractors, or others in the
29 employ of the association.
30 (n) Any and all insurance policies.
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1 (o) Any permits issued to the association by
2 governmental entities.
3 (p) Any and all warranties in effect.
4 (q) A roster of homeowners and their addresses and
5 telephone numbers and section and lot numbers.
6 (r) Employment and service contracts in effect.
7 (s) All other contracts to which the association is a
8 party.
9 Section 3. Section 617.3075, Florida Statutes, is
10 created to read:
11 617.3075 Prohibited clauses in homeowners' association
12 documents.--
13 (1) It is hereby declared that the public policy of
14 this state prohibits the inclusion or enforcement of certain
15 types of clauses in homeowners' association documents,
16 including declaration of covenants, articles of incorporation,
17 bylaws, or any other document of the association which binds
18 members of the association, which either have the effect of or
19 provide that:
20 (a) A developer has the right to veto any action taken
21 by the homeowners' association after the transition of
22 homeowners' association control in a community from the
23 developer to the nondeveloper members, as set forth in s.
24 617.307, has occurred.
25 (b) A developer has the unilateral ability and right
26 to make changes to the homeowners' association documents after
27 the transition of homeowners' association control in a
28 community from the developer to the nondeveloper members, as
29 set forth in s. 617.307, has occurred.
30 (c) A homeowners' association is prohibited or
31 restricted from filing a lawsuit against the developer, or the
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1 homeowners' association is otherwise effectively prohibited or
2 restricted from bringing a lawsuit against the developer.
3 (d) After the transition of homeowners' association
4 control in a community from the developer to the nondeveloper
5 members, as set forth in s. 617.307, has occurred, a developer
6 is entitled to cast votes in an amount that exceeds one vote
7 per lot.
8
9 Such clauses are hereby declared null and void as against the
10 public policy of this state.
11 (2) The public policy described in subsection (1)
12 prohibits the inclusion or enforcement of such clauses created
13 on or after the effective date of this section.
14 Section 4. Section 689.26, Florida Statutes, is
15 amended to read:
16 689.26 Prospective purchasers subject to association
17 membership requirement; disclosure required.--
18 (1) A prospective parcel owner in a community must be
19 presented a disclosure summary before executing the contract
20 for sale. The disclosure summary must be in a form
21 substantially similar to the following form:
22
23 DISCLOSURE SUMMARY
24 FOR
25 (NAME OF COMMUNITY)
26
27 1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU
28 WILL BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
29 2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
30 COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN
31 THIS COMMUNITY.
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1 3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
2 ASSOCIATION, WHICH ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
3 4. YOUR FAILURE TO PAY THESE ASSESSMENTS COULD RESULT
4 IN A LIEN ON YOUR PROPERTY.
5 5. THERE (IS) (IS NOT) AN OBLIGATION TO PAY RENT OR
6 LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED
7 FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS'
8 ASSOCIATION. (If such obligation exists, then the amount of
9 the current obligation shall be set forth.)
10 6. THE RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED
11 WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP.
12 7. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM
13 ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER,
14 YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION
15 GOVERNING DOCUMENTS.
16 8. THESE DOCUMENTS ARE MATTERS OF PUBLIC RECORD AND
17 CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
18 PROPERTY IS LOCATED.
19 DATE: PURCHASER:
20 PURCHASER:
21
22 The disclosure must be supplied by the developer, or by the
23 parcel owner if the sale is by an owner that is not the
24 developer. In the event that the seller fails to comply with
25 this subsection, the buyer shall have the right to cancel the
26 proposed contract for sale and purchase of the parcel for up
27 to 7 days following execution of a sales contract, without
28 penalty or forfeiture of any deposit or good faith moneys
29 advanced.
30 (2) The developer shall provide a specific written
31 description of all planned amenities to each prospective
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1 purchaser prior to the execution of a written contract.
2 Failure to comply with this subsection shall result in the
3 buyer having the right to cancel the proposed contract for
4 sale and purchase of the parcel for up to 7 days following
5 execution of a sales contract, without penalty or forfeiture
6 of any deposit or good faith moneys advanced.
7 (3)(2) This section does not apply to any association
8 regulated under chapter 718, chapter 719, chapter 721, or
9 chapter 723 or to a subdivider registered under chapter 498;
10 and also does not apply if disclosure regarding the
11 association is otherwise made in connection with the
12 requirements of chapter 718, chapter 719, chapter 721, or
13 chapter 723.
14 Section 5. This act shall take effect October 1 of the
15 year in which enacted.
16
17 *****************************************
18 HOUSE SUMMARY
19
Revises provisions of law relating to homeowners'
20 associations to:
1. Prohibit commingling of association funds held
21 by the developer.
2. Revise provisions relating to the transition of
22 the homeowners' association control in a community.
3. Require the developer to provide the board with
23 a list of documents at the time the members are entitled
to elect at least a majority of the members of the board
24 of directors of the homeowners' association.
4. Provide a list of prohibited clauses in
25 homeowners' association documents as void for being
against public policy.
26 5. Revise language with respect to disclosure to
prospective purchasers.
27
28 See bill for details.
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