HB 0165 2003
   
1 CHAMBER ACTION
2         
3         
4         
5         
6          The Committee on Judiciary recommends the following:
7         
8          Committee Substitute
9          Remove the entire bill and insert:
10 A bill to be entitled
11          An act relating to homeowners’ associations; amending s.
12    702.09, F.S.; redefining the term “mortgage” to include
13    liens created pursuant to a homeowners’ association as
14    defined in s. 712.01, F.S.; amending s. 718.111, F.S.;
15    revising language with respect to official records of the
16    condominium association authorizing the association to
17    provide certain information to prospective purchasers or
18    lienholders under certain circumstances; providing for
19    immunity from liability; authorizing fees; establishing
20    insurance requirements for condominium associations and
21    individual unit owners; amending s. 718.112, F.S.;
22    revising language with respect to condominium bylaws to
23    allow the use of limited proxies for votes taken to waive
24    certain financial reporting requirements; prohibiting the
25    requirement of retrofitting condominiums for enhanced fire
26    protection systems under certain circumstances; amending
27    s. 718.303, F.S.; providing that certain actions with
28    respect to the obligation of condominium owners shall not
29    be deemed actions for specific performance; amending s.
30    719.104, F.S.; revising language with respect to official
31    records of the cooperative association authorizing the
32    association to provide certain information to prospective
33    purchasers or lienholders under certain circumstances;
34    providing for immunity from liability; authorizing fees;
35    amending s. 719.303, F.S.; providing that certain actions
36    with respect to the obligation of cooperative owners shall
37    not be deemed actions for specific performance; amending
38    s. 720.302, F.S.; providing that corporations not for
39    profit that operate residential homeowners’ associations
40    shall be governed by and subject to the provisions of ch.
41    617, F.S.; amending s. 719.1055, F.S.; prohibiting the
42    requirement of retrofitting cooperatives for enhanced fire
43    protection under certain circumstances; providing an
44    effective date.
45         
46          Be It Enacted by the Legislature of the State of Florida:
47         
48          Section 1. Section 702.09, Florida Statutes, is amended to
49    read:
50          702.09 Definitions.--For the purposes of ss. 702.07 and
51    702.08 the words "decree of foreclosure" shall include a
52    judgment or order rendered or passed in the foreclosure
53    proceedings in which the decree of foreclosure shall be
54    rescinded, vacated, and set aside; the word "mortgage" shall
55    mean any written instrument securing the payment of money or
56    advances and includes liens to secure payment of assessments
57    arising under chapters 718 and 719 and liens created pursuant to
58    the recorded covenants of a homeowners’ association as defined
59    in s. 712.01; the word "debt" shall include promissory notes,
60    bonds, and all other written obligations given for the payment
61    of money; the words "foreclosure proceedings" shall embrace
62    every action in the circuit or county courts of this state
63    wherein it is sought to foreclose a mortgage and sell the
64    property covered by the same; and the word "property" shall mean
65    and include both real and personal property.
66          Section 2. Subsections (11) and (12) of section 718.111,
67    Florida Statutes, are amended to read:
68          718.111 The association.--
69          (11) INSURANCE.--In order to protect the safety, health,
70    and welfare of the citizens of the State of Florida and to
71    ensure consistency in the provision of insurance coverage to
72    condominiums and their unit owners, paragraphs (b) and (c) are
73    deemed to apply to every condominium in the state regardless of
74    the date of its declaration of condominium.
75          (a) A unit-owner controlled association shall use its best
76    efforts to obtain and maintain adequate insurance to protect the
77    association, the association property, the common elements, and
78    the condominium property required to be insured by the
79    association pursuant to paragraph (b). If the association is
80    developer controlled, the association shall exercise due
81    diligence to obtain and maintain such insurance. Failure to
82    obtain and maintain adequate insurance during any period of
83    developer control shall constitute a breach of fiduciary
84    responsibility by the developer-appointed members of the board
85    of directors of the association, unless said members can show
86    that despite such failure, they have exercised due diligence.
87    The declaration of condominium as originally recorded, or
88    amended pursuant to the procedures provided therein, may require
89    that condominium property consisting of freestanding buildings,
90    where there is no more than one building in or on such unit,
91    need not be insured by the association if the declaration
92    requires the unit owner to obtain adequate insurance for the
93    condominium property.An association may also obtain and
94    maintain liability insurance for directors and officers,
95    insurance for the benefit of association employees, and flood
96    insurance for common elements, association property, and units.
97    Adequate insurance, regardless of any requirement in the
98    declaration of condominium for coverage by the association for
99    “full insurable value,” “replacement cost,” or the like, may
100    include reasonable deductibles, as determined by the board.An
101    association or group of associations may self-insure against
102    claims against the association, the association property, and
103    the condominium property required to be insured by an
104    association, upon compliance with ss. 624.460-624.488. A copy of
105    each policy of insurance in effect shall be made available for
106    inspection by unit owners at reasonable times.
107          (b) Every hazard insurance policy which is issued or
108    renewed on or after January 1, 2004, to protect thea
109    condominium building shall provide primary coverage for:
110          1. Portions of the condominium property located outside
111    the units;
112          2. The condominium property located inside the units as
113    such property was initially installed, or replacements thereof
114    of like kind and quality, and in accordance with the original
115    plans and specifications, or if the original plans and
116    specifications are not available, as they existed at the time
117    the unit was initially conveyed; and
118          3. Portions of the condominium property for which the
119    declaration of condominium requires coverage by the association.
120         
121          Anything to the contrary notwithstanding, the terms “condominium
122    property,” “building,” “improvements,” “insurable improvements,”
123    “common elements,” “association property,” and any other term
124    found in the declaration of condominium which defines the scope
125    of property or casualty insurance which a condominium
126    association must obtain shall exclude all floor, wall, and
127    ceiling coverings,that the word "building" wherever used in the
128    policy include, but not necessarily be limited to, fixtures,
129    installations, or additions comprising that part of the building
130    within the unfinished interior surfaces of the perimeter walls,
131    floors, and ceilings of the individual units initially
132    installed, or replacements thereof of like kind or quality, in
133    accordance with the original plans and specifications, or as
134    they existed at the time the unit was initially conveyed if the
135    original plans and specifications are not available. However,
136    unless prior to October 1, 1986, the association is required by
137    the declaration to provide coverage therefor, the word
138    "building" does not include unit floor coverings, wall
139    coverings, or ceiling coverings, and, as to contracts entered
140    into after July 1, 1992, does not include the following
141    equipment if it is located within a unit and the unit owner is
142    required to repair or replace such equipment:electrical
143    fixtures, appliances, air conditioner or heating equipment,
144    water heaters, water filters,or built-in cabinets and
145    countertops and window treatments, including curtains, drapes,
146    blinds, hardware and similar window treatment components, or
147    replacements of any of the foregoing, which are located within
148    the boundaries of a unit and serve only one unit and all air
149    conditioning compressors that service only an individual unit,
150    whether or not located within the unit boundaries. The foregoing
151    is intended to establish the property or casualty insuring
152    responsibilities of the association and those of the individual
153    unit owner and do not serve to broaden or extend the perils of
154    coverage afforded by any insurance contract provided to the
155    individual unit owner. From and after January 1, 2004, the
156    association shall have the authority to amend the declaration of
157    condominium, without regard to any requirement for mortgagee
158    approval of amendments affecting insurance requirements, to
159    conform the declaration of condominium to the coverage
160    requirements of this section.With respect to the coverage
161    provided for by this paragraph, the unit owners shall be
162    considered additional insureds under the policy.
163          (c) Every hazard insurance policy issued or renewed on or
164    after January 1, 2004,to an individual unit owner shall provide
165    that the coverage afforded by such policy is excess over the
166    amount recoverable under any other policy covering the same
167    property. Every insurance policy issued to an individual unit
168    owner providing such coverage shall bewithout rights of
169    subrogation against the condominium association which operates
170    the condominium in which such unit owner’s unit is located. All
171    real or personal property located within the boundaries of the
172    unit owner’s unit which are excluded from the coverage to be
173    provided by the association as set forth in paragraph (b) are to
174    be insured by the individual unit owner.
175          (d) The association shall obtain and maintain adequate
176    insurance or fidelity bonding of all persons who control or
177    disburse funds of the association. The insurance policy or
178    fidelity bond must cover the maximum funds that will be in the
179    custody of the association or its management agent at any one
180    time. As used in this paragraph, the term "persons who control
181    or disburse funds of the association" includes, but is not
182    limited to, those individuals authorized to sign checks and the
183    president, secretary, and treasurer of the association. The
184    association shall bear the cost of bonding.
185          (12) OFFICIAL RECORDS.--
186          (a) From the inception of the association, the association
187    shall maintain each of the following items, when applicable,
188    which shall constitute the official records of the association:
189          1. A copy of the plans, permits, warranties, and other
190    items provided by the developer pursuant to s. 718.301(4).
191          2. A photocopy of the recorded declaration of condominium
192    of each condominium operated by the association and of each
193    amendment to each declaration.
194          3. A photocopy of the recorded bylaws of the association
195    and of each amendment to the bylaws.
196          4. A certified copy of the articles of incorporation of
197    the association, or other documents creating the association,
198    and of each amendment thereto.
199          5. A copy of the current rules of the association.
200          6. A book or books which contain the minutes of all
201    meetings of the association, of the board of directors, and of
202    unit owners, which minutes shall be retained for a period of not
203    less than 7 years.
204          7. A current roster of all unit owners and their mailing
205    addresses, unit identifications, voting certifications, and, if
206    known, telephone numbers.
207          8. All current insurance policies of the association and
208    condominiums operated by the association.
209          9. A current copy of any management agreement, lease, or
210    other contract to which the association is a party or under
211    which the association or the unit owners have an obligation or
212    responsibility.
213          10. Bills of sale or transfer for all property owned by
214    the association.
215          11. Accounting records for the association and separate
216    accounting records for each condominium which the association
217    operates. All accounting records shall be maintained for a
218    period of not less than 7 years. The accounting records shall
219    include, but are not limited to:
220          a. Accurate, itemized, and detailed records of all
221    receipts and expenditures.
222          b. A current account and a monthly, bimonthly, or
223    quarterly statement of the account for each unit designating the
224    name of the unit owner, the due date and amount of each
225    assessment, the amount paid upon the account, and the balance
226    due.
227          c. All audits, reviews, accounting statements, and
228    financial reports of the association or condominium.
229          d. All contracts for work to be performed. Bids for work
230    to be performed shall also be considered official records and
231    shall be maintained for a period of 1 year.
232          12. Ballots, sign-in sheets, voting proxies, and all other
233    papers relating to voting by unit owners, which shall be
234    maintained for a period of 1 year from the date of the election,
235    vote, or meeting to which the document relates.
236          13. All rental records, when the association is acting as
237    agent for the rental of condominium units.
238          14. A copy of the current question and answer sheet as
239    described by s. 718.504.
240          15. All other records of the association not specifically
241    included in the foregoing which are related to the operation of
242    the association.
243          (b) The official records of the association shall be
244    maintained within the state. The records of the association
245    shall be made available to a unit owner within 5 working days
246    after receipt of written request by the board or its designee.
247    This paragraph may be complied with by having a copy of the
248    official records of the association available for inspection or
249    copying on the condominium property or association property.
250          (c) The official records of the association are open to
251    inspection by any association member or the authorized
252    representative of such member at all reasonable times. The right
253    to inspect the records includes the right to make or obtain
254    copies, at the reasonable expense, if any, of the association
255    member. The association may adopt reasonable rules regarding the
256    frequency, time, location, notice, and manner of record
257    inspections and copying. The failure of an association to
258    provide the records within 10 working days after receipt of a
259    written request shall create a rebuttable presumption that the
260    association willfully failed to comply with this paragraph. A
261    unit owner who is denied access to official records is entitled
262    to the actual damages or minimum damages for the association's
263    willful failure to comply with this paragraph. The minimum
264    damages shall be $50 per calendar day up to 10 days, the
265    calculation to begin on the 11th working day after receipt of
266    the written request. The failure to permit inspection of the
267    association records as provided herein entitles any person
268    prevailing in an enforcement action to recover reasonable
269    attorney's fees from the person in control of the records who,
270    directly or indirectly, knowingly denied access to the records
271    for inspection. The association shall maintain an adequate
272    number of copies of the declaration, articles of incorporation,
273    bylaws, and rules, and all amendments to each of the foregoing,
274    as well as the question and answer sheet provided for in s.
275    718.504 and year-end financial information required in this
276    section on the condominium property to ensure their availability
277    to unit owners and prospective purchasers, and may charge its
278    actual costs for preparing and furnishing these documents to
279    those requesting the same. Notwithstanding the provisions of
280    this paragraph, the following records shall not be accessible to
281    unit owners:
282          1. Any record protected by the lawyer-client privilege as
283    described in s. 90.502; and any record protected by the work-
284    product privilege, including any record prepared by an
285    association attorney or prepared at the attorney's express
286    direction; which reflects a mental impression, conclusion,
287    litigation strategy, or legal theory of the attorney or the
288    association, and which was prepared exclusively for civil or
289    criminal litigation or for adversarial administrative
290    proceedings, or which was prepared in anticipation of imminent
291    civil or criminal litigation or imminent adversarial
292    administrative proceedings until the conclusion of the
293    litigation or adversarial administrative proceedings.
294          2. Information obtained by an association in connection
295    with the approval of the lease, sale, or other transfer of a
296    unit.
297          3. Medical records of unit owners.
298          (d) The association shall prepare a question and answer
299    sheet as described in s. 718.504, and shall update it annually.
300          (e) The association or its authorized agent shall not be
301    required to provide a prospective purchaser or lienholder with
302    information about the condominium or the association other than
303    information or documents required by this chapter to be made
304    available or disclosed.
305          1. If, for the convenience of the members, the association
306    elects to provide requested information not required by law to
307    be made available or disclosed to prospective purchasers or
308    lienholders, the association may do so, and the association and
309    its authorized agent shall be immune from suit by any person or
310    entity for information given in good faith if the association or
311    its authorized agent accompanies such information with a written
312    statement in substantially the following form:
313         
314          The information contained herein, to the extent not
315    required to be provided by the Florida Condominium
316    Act, is provided without warranty or certification of
317    any sort. Reliance on the accuracy of this
318    information, if provided in good faith, is at the sole
319    risk of the person or entity choosing to rely thereon.
320    You are encouraged to review original documentation
321    that may be available rather than relying on
322    summaries, compilations, statements of opinion, or
323    anecdotal information which may be the source of our
324    information. Florida law provides immunity from suit
325    for good faith information, even if it is later
326    determined to be inaccurate.
327         
328          2. The association or its authorized agent shall be
329    entitled to charge a reasonable fee to the prospective
330    purchaser, lienholder, or the current unit owner for its time in
331    providing good faith responses to requests for information by or
332    on behalf of a prospective purchaser or lienholder, other than
333    that required by law, provided that such fee shall not exceed
334    $150 plus the reasonable cost of photocopying and any attorney’s
335    fees incurred by the association.
336          Section 3. Paragraphs (b) and (l) of subsection (2) of
337    section 718.112, Florida Statutes, are amended to read:
338          718.112 Bylaws.--
339          (2) REQUIRED PROVISIONS.--The bylaws shall provide for the
340    following and, if they do not do so, shall be deemed to include
341    the following:
342          (b) Quorum; voting requirements; proxies.--
343          1. Unless a lower number is provided in the bylaws, the
344    percentage of voting interests required to constitute a quorum
345    at a meeting of the members shall be a majority of the voting
346    interests. Unless otherwise provided in this chapter or in the
347    declaration, articles of incorporation, or bylaws, and except as
348    provided in subparagraph (d)3., decisions shall be made by
349    owners of a majority of the voting interests represented at a
350    meeting at which a quorum is present.
351          2. Except as specifically otherwise provided herein, after
352    January 1, 1992, unit owners may not vote by general proxy, but
353    may vote by limited proxies substantially conforming to a
354    limited proxy form adopted by the division. Limited proxies and
355    general proxies may be used to establish a quorum. Limited
356    proxies shall be used for votes taken to waive or reduce
357    reserves in accordance with subparagraph (f)2.; for votes taken
358    to waive the financial reporting requirements of s. 718.111(13);
359    for votes taken to amend the declaration pursuant to s. 718.110;
360    for votes taken to amend the articles of incorporation or bylaws
361    pursuant to this section; and for any other matter for which
362    this chapter requires or permits a vote of the unit owners.
363    Except as provided in paragraph (d), after January 1, 1992, no
364    proxy, limited or general, shall be used in the election of
365    board members. General proxies may be used for other matters for
366    which limited proxies are not required, and may also be used in
367    voting for nonsubstantive changes to items for which a limited
368    proxy is required and given. Notwithstanding the provisions of
369    this subparagraph, unit owners may vote in person at unit owner
370    meetings. Nothing contained herein shall limit the use of
371    general proxies or require the use of limited proxies for any
372    agenda item or election at any meeting of a timeshare
373    condominium association.
374          3. Any proxy given shall be effective only for the
375    specific meeting for which originally given and any lawfully
376    adjourned meetings thereof. In no event shall any proxy be valid
377    for a period longer than 90 days after the date of the first
378    meeting for which it was given. Every proxy is revocable at any
379    time at the pleasure of the unit owner executing it.
380          4. A member of the board of administration or a committee
381    may submit in writing his or her agreement or disagreement with
382    any action taken at a meeting that the member did not attend.
383    This agreement or disagreement may not be used as a vote for or
384    against the action taken and may not be used for the purposes of
385    creating a quorum.
386          5. When any of the board or committee members meet by
387    telephone conference, those board or committee members attending
388    by telephone conference may be counted toward obtaining a quorum
389    and may vote by telephone. A telephone speaker must be used so
390    that the conversation of those board or committee members
391    attending by telephone may be heard by the board or committee
392    members attending in person as well as by any unit owners
393    present at a meeting.
394          (l) Certificate of compliance.--There shall be a provision
395    that a certificate of compliance from a licensed electrical
396    contractor or electrician may be accepted by the association's
397    board as evidence of compliance of the condominium units to the
398    applicable fire and life safety code. Notwithstanding the
399    provisions of chapter 633 or of any other statute, ordinance,
400    administrative rule, or regulation, or any interpretation of the
401    foregoing, no association, condominium, or unit owner shall be
402    obligated to retrofit the common elements or units of a
403    residential condominium with a fire sprinkler system in a
404    building that has been certified for occupancy by the applicable
405    governmental entity, provided that the unit owners have voted to
406    forego such retrofitting by the affirmative vote of two-thirds
407    of all voting interests. Such vote may be taken at a duly
408    noticed meeting or by written consent without a meeting, and
409    shall be effective upon the recording of a duly executed
410    certificate attesting to such vote in the public records for the
411    county where the condominium is located. Such vote shall be held
412    biannually or, by majority vote of the board of directors of the
413    condominium association, at the next annual meeting. As part of
414    the information collected annually from condominiums by the
415    division, it shall require condominium associations to report
416    the membership vote and recording of a certificate under this
417    subsection and, if retrofitting has been undertaken, the per-
418    unit cost of such work. The division shall annually report to
419    the Department of Insurance, State Fire Marshal’s Office, the
420    number of condominiums that have elected to forego retrofitting.
421          Section 4. Subsection (1) of section 718.303, Florida
422    Statutes, is amended to read:
423          718.303 Obligations of owners; waiver; levy of fine
424    against unit by association.--
425          (1) Each unit owner, each tenant and other invitee, and
426    each association shall be governed by, and shall comply with the
427    provisions of, this chapter, the declaration, the documents
428    creating the association, and the association bylaws and the
429    provisions thereof shall be deemed expressly incorporated into
430    any lease of a unit. Actions for damages or for injunctive
431    relief, or both, for failure to comply with these provisions may
432    be brought by the association or by a unit owner against:
433          (a) The association.
434          (b) A unit owner.
435          (c) Directors designated by the developer, for actions
436    taken by them prior to the time control of the association is
437    assumed by unit owners other than the developer.
438          (d) Any director who willfully and knowingly fails to
439    comply with these provisions.
440          (e) Any tenant leasing a unit, and any other invitee
441    occupying a unit.
442         
443          The prevailing party in any such action or in any action in
444    which the purchaser claims a right of voidability based upon
445    contractual provisions as required in s. 718.503(1)(a) is
446    entitled to recover reasonable attorney's fees. A unit owner
447    prevailing in an action between the association and the unit
448    owner under this section, in addition to recovering his or her
449    reasonable attorney's fees, may recover additional amounts as
450    determined by the court to be necessary to reimburse the unit
451    owner for his or her share of assessments levied by the
452    association to fund its expenses of the litigation. This relief
453    does not exclude other remedies provided by law. Actions arising
454    under this subsection shall not be deemed to be actions for
455    specific performance.
456          Section 5. Subsection (2) of section 719.104, Florida
457    Statutes, is amended to read:
458          719.104 Cooperatives; access to units; records; financial
459    reports; assessments; purchase of leases.--
460          (2) OFFICIAL RECORDS.--
461          (a) From the inception of the association, the association
462    shall maintain a copy of each of the following, where
463    applicable, which shall constitute the official records of the
464    association:
465          1. The plans, permits, warranties, and other items
466    provided by the developer pursuant to s. 719.301(4).
467          2. A photocopy of the cooperative documents.
468          3. A copy of the current rules of the association.
469          4. A book or books containing the minutes of all meetings
470    of the association, of the board of directors, and of the unit
471    owners, which minutes shall be retained for a period of not less
472    than 7 years.
473          5. A current roster of all unit owners and their mailing
474    addresses, unit identifications, voting certifications, and, if
475    known, telephone numbers.
476          6. All current insurance policies of the association.
477          7. A current copy of any management agreement, lease, or
478    other contract to which the association is a party or under
479    which the association or the unit owners have an obligation or
480    responsibility.
481          8. Bills of sale or transfer for all property owned by the
482    association.
483          9. Accounting records for the association and separate
484    accounting records for each unit it operates, according to good
485    accounting practices. All accounting records shall be maintained
486    for a period of not less than 7 years. The accounting records
487    shall include, but not be limited to:
488          a. Accurate, itemized, and detailed records of all
489    receipts and expenditures.
490          b. A current account and a monthly, bimonthly, or
491    quarterly statement of the account for each unit designating the
492    name of the unit owner, the due date and amount of each
493    assessment, the amount paid upon the account, and the balance
494    due.
495          c. All audits, reviews, accounting statements, and
496    financial reports of the association.
497          d. All contracts for work to be performed. Bids for work
498    to be performed shall also be considered official records and
499    shall be maintained for a period of 1 year.
500          10. Ballots, sign-in sheets, voting proxies, and all other
501    papers relating to voting by unit owners, which shall be
502    maintained for a period of 1 year after the date of the
503    election, vote, or meeting to which the document relates.
504          11. All rental records where the association is acting as
505    agent for the rental of units.
506          12. A copy of the current question and answer sheet as
507    described in s. 719.504.
508          13. All other records of the association not specifically
509    included in the foregoing which are related to the operation of
510    the association.
511          (b) The official records of the association shall be
512    maintained within the state. The records of the association
513    shall be made available to a unit owner within 5 working days
514    after receipt of written request by the board or its designee.
515    This paragraph may be complied with by having a copy of the
516    official records available for inspection or copying on the
517    cooperative property.
518          (c) The official records of the association shall be open
519    to inspection by any association member or the authorized
520    representative of such member at all reasonable times. Failure
521    to permit inspection of the association records as provided
522    herein entitles any person prevailing in an enforcement action
523    to recover reasonable attorney's fees from the person in control
524    of the records who, directly or indirectly, knowingly denies
525    access to the records for inspection. The right to inspect the
526    records includes the right to make or obtain copies, at the
527    reasonable expense, if any, of the association member. The
528    association may adopt reasonable rules regarding the frequency,
529    time, location, notice, and manner of record inspections and
530    copying. The failure of an association to provide the records
531    within 10 working days after receipt of a written request
532    creates a rebuttable presumption that the association willfully
533    failed to comply with this paragraph. A unit owner who is denied
534    access to official records is entitled to the actual damages or
535    minimum damages for the association's willful failure to comply
536    with this paragraph. The minimum damages shall be $50 per
537    calendar day up to 10 days, the calculation to begin on the 11th
538    day after receipt of the written request. The association shall
539    maintain an adequate number of copies of the declaration,
540    articles of incorporation, bylaws, and rules, and all amendments
541    to each of the foregoing, as well as the question and answer
542    sheet provided for in s. 719.504, on the cooperative property to
543    ensure their availability to unit owners and prospective
544    purchasers, and may charge its actual costs for preparing and
545    furnishing these documents to those requesting the same.
546    Notwithstanding the provisions of this paragraph, the following
547    records shall not be accessible to unit owners:
548          1. A record that was prepared by an association attorney
549    or prepared at the attorney's express direction; that reflects a
550    mental impression, conclusion, litigation strategy, or legal
551    theory of the attorney or the association; or that was prepared
552    exclusively for civil or criminal litigation or for adversarial
553    administrative proceedings or in anticipation of imminent civil
554    or criminal litigation or imminent adversarial administrative
555    proceedings, until the conclusion of the litigation or
556    adversarial administrative proceedings.
557          2. Information obtained by an association in connection
558    with the approval of the lease, sale, or other transfer of a
559    unit.
560          3. Medical records of unit owners.
561          (d) The association or its authorized agent shall not be
562    required to provide a prospective purchaser or lienholder with
563    information about the cooperative or association other than the
564    information or documents required by this chapter to be made
565    available or disclosed.
566          1. If, for the convenience of the members, the association
567    elects to provide requested information not required by law to
568    be made available or disclosed to prospective purchasers or
569    lienholders, the association may do so, and the association and
570    its authorized agent shall be immune from suit by any person or
571    entity for information given in good faith if the association or
572    its authorized agent accompanies such information with a written
573    statement in substantially the following form:
574         
575          The information contained herein, to the extent not
576    required to be provided by the Florida Cooperative
577    Act, is provided without warranty or certification of
578    any sort. Reliance on the accuracy of this
579    information, if provided in good faith, is at the sole
580    risk of the person or entity choosing to rely thereon.
581    You are encouraged to review original documentation
582    that may be available rather than relying on
583    summaries, compilations, statements of opinion, or
584    anecdotal information which may be the source of our
585    information. Florida law provides immunity from suit
586    for good faith information, even if it is later
587    determined to be inaccurate.
588         
589          2. The association or its authorized agent shall be
590    entitled to charge a reasonable fee to the prospective
591    purchaser, lienholder, or the current unit owner for its time in
592    providing good faith responses to requests for information by or
593    on behalf of a prospective purchaser or lienholder, other than
594    that required by law, provided that such fee shall not exceed
595    $150 plus the reasonable cost of photocopying and any attorney’s
596    fees incurred by the association.
597          Section 6. Subsection (1) of section 719.303, Florida
598    Statutes, is amended to read:
599          719.303 Obligations of owners.--
600          (1) Each unit owner, each tenant and other invitee, and
601    each association shall be governed by, and shall comply with the
602    provisions of, this chapter, the cooperative documents, the
603    documents creating the association, and the association bylaws,
604    and the provisions thereof shall be deemed expressly
605    incorporated into any lease of a unit. Actions for damages or
606    for injunctive relief, or both, for failure to comply with these
607    provisions may be brought by the association or by a unit owner
608    against:
609          (a) The association.
610          (b) A unit owner.
611          (c) Directors designated by the developer, for actions
612    taken by them prior to the time control of the association is
613    assumed by unit owners other than the developer.
614          (d) Any director who willfully and knowingly fails to
615    comply with these provisions.
616          (e) Any tenant leasing a unit, and any other invitee
617    occupying a unit.
618         
619          The prevailing party in any such action or in any action in
620    which the purchaser claims a right of voidability based upon
621    contractual provisions as required in s. 719.503(1)(a) is
622    entitled to recover reasonable attorney's fees. A unit owner
623    prevailing in an action between the association and the unit
624    owner under this section, in addition to recovering his or her
625    reasonable attorney's fees, may recover additional amounts as
626    determined by the court to be necessary to reimburse the unit
627    owner for his or her share of assessments levied by the
628    association to fund its expenses of the litigation. This relief
629    does not exclude other remedies provided by law. Actions arising
630    under this subsection shall not be deemed to be actions for
631    specific performance.
632          Section 7. Section 720.302, Florida Statutes, is amended
633    to read:
634          720.302 Purposes, scope, and application.--
635          (1) The purposes of ss. 720.301-720.312 are to give
636    statutory recognition to corporations not for profitthat
637    operate residential communities in this state, to provide
638    procedures for operating homeowners' associations, and to
639    protect the rights of association members without unduly
640    impairing the ability of such associations to perform their
641    functions.
642          (2) The Legislature recognizes that it is not in the best
643    interest of homeowners' associations or the individual
644    association members thereof to create or impose a bureau or
645    other agency of state government to regulate the affairs of
646    homeowners' associations. Further, the Legislature recognizes
647    that certain contract rights have been created for the benefit
648    of homeowners' associations and members thereof before the
649    effective date of this act and that ss. 720.301-720.312 are not
650    intended to impair such contract rights, including, but not
651    limited to, the rights of the developer to complete the
652    community as initially contemplated.
653          (3) Sections 720.301-720.312 do not apply to:
654          (a) A community that is composed of property primarily
655    intended for commercial, industrial, or other nonresidential
656    use; or
657          (b) The commercial or industrial parcels in a community
658    that contains both residential parcels and parcels intended for
659    commercial or industrial use.
660          (4) Sections 720.301-720.312 do not apply to any
661    association that is subject to regulation under chapter 718,
662    chapter 719, or chapter 721; or to any nonmandatory association
663    formed under chapter 723.
664          (5) Unless expressly stated to the contrary, corporations
665    not for profit that operate residential homeowners’ associations
666    in this state shall be governed by and subject to the provisions
667    of chapter 617. This provision is intended to clarify existing
668    law.
669          Section 8. Subsection (5) is added to section 719.1055,
670    Florida Statutes, to read:
671          719.1055 Amendment of cooperative documents; alteration
672    and acquisition of property.--
673          (5) Notwithstanding the provisions of chapter 633 or of
674    any other statute, ordinance, administrative rule, or
675    regulation, or any interpretation of the foregoing, no
676    association, cooperative, or unit owner shall be obligated to
677    retrofit the common areas or units of a residential cooperative
678    with a fire sprinkler system or other enhanced fire protection
679    system in a building that has been certified for occupancy by
680    the applicable governmental entity, provided that the unit
681    owners have voted to forego such retrofitting by the affirmative
682    vote of two-thirds of all voting interests. Such vote may be
683    taken at a duly noticed meeting or by written consent without a
684    meeting, and shall be effective upon the recording of a duly
685    executed certificate attesting to such vote in the public
686    records for the county where the cooperative is located. As part
687    of the information collected from cooperatives by the division,
688    it shall require cooperative associations to report the
689    membership vote and recording of a certificate under this
690    subsection and, if retrofitting has been undertaken, the per-
691    unit cost of such work. The division shall annually report to
692    the Department of Financial Services, Division of State Fire
693    Marshal, the number of cooperatives that have elected to forego
694    retrofitting.
695         
696          Section 9. This act shall take effect upon becoming a law.
697