HB 0165 2003
   
1 CHAMBER ACTION
2         
3         
4         
5         
6          The Committee on Commerce 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; providing
27    for voting conditions; providing for notice; amending s.
28    718.303, F.S.; providing that certain actions with respect
29    to the obligation of condominium owners shall not be
30    deemed actions for specific performance; amending s.
31    719.104, F.S.; revising language with respect to official
32    records of the cooperative association authorizing the
33    association to provide certain information to prospective
34    purchasers or lienholders under certain circumstances;
35    providing for immunity from liability; authorizing fees;
36    amending s. 719.303, F.S.; providing that certain actions
37    with respect to the obligation of cooperative owners shall
38    not be deemed actions for specific performance; amending
39    s. 720.302, F.S.; providing that corporations not for
40    profit that operate residential homeowners’ associations
41    shall be governed by and subject to the provisions of ch.
42    617, F.S.; amending s. 719.1055, F.S.; prohibiting the
43    requirement of retrofitting cooperatives for enhanced fire
44    protection under certain circumstances; providing for
45    voting conditions; providing for notice; requiring certain
46    reports; providing an effective date.
47         
48          Be It Enacted by the Legislature of the State of Florida:
49         
50          Section 1. Section 702.09, Florida Statutes, is amended to
51    read:
52          702.09 Definitions.--For the purposes of ss. 702.07 and
53    702.08 the words "decree of foreclosure" shall include a
54    judgment or order rendered or passed in the foreclosure
55    proceedings in which the decree of foreclosure shall be
56    rescinded, vacated, and set aside; the word "mortgage" shall
57    mean any written instrument securing the payment of money or
58    advances and includes liens to secure payment of assessments
59    arising under chapters 718 and 719 and liens created pursuant to
60    the recorded covenants of a homeowners’ association as defined
61    in s. 712.01; the word "debt" shall include promissory notes,
62    bonds, and all other written obligations given for the payment
63    of money; the words "foreclosure proceedings" shall embrace
64    every action in the circuit or county courts of this state
65    wherein it is sought to foreclose a mortgage and sell the
66    property covered by the same; and the word "property" shall mean
67    and include both real and personal property.
68          Section 2. Subsections (11) and (12) of section 718.111,
69    Florida Statutes, are amended to read:
70          718.111 The association.--
71          (11) INSURANCE.--In order to protect the safety, health,
72    and welfare of the citizens of the State of Florida and to
73    ensure consistency in the provision of insurance coverage to
74    condominiums and their unit owners, paragraphs (b) and (c) are
75    deemed to apply to every condominium in the state regardless of
76    the date of its declaration of condominium.
77          (a) A unit-owner controlled association shall use its best
78    efforts to obtain and maintain adequate insurance to protect the
79    association, the association property, the common elements, and
80    the condominium property required to be insured by the
81    association pursuant to paragraph (b). If the association is
82    developer controlled, the association shall exercise due
83    diligence to obtain and maintain such insurance. Failure to
84    obtain and maintain adequate insurance during any period of
85    developer control shall constitute a breach of fiduciary
86    responsibility by the developer-appointed members of the board
87    of directors of the association, unless said members can show
88    that despite such failure, they have exercised due diligence.
89    The declaration of condominium as originally recorded, or
90    amended pursuant to the procedures provided therein, may require
91    that condominium property consisting of freestanding buildings,
92    where there is no more than one building in or on such unit,
93    need not be insured by the association if the declaration
94    requires the unit owner to obtain adequate insurance for the
95    condominium property.An association may also obtain and
96    maintain liability insurance for directors and officers,
97    insurance for the benefit of association employees, and flood
98    insurance for common elements, association property, and units.
99    Adequate insurance, regardless of any requirement in the
100    declaration of condominium for coverage by the association for
101    “full insurable value,” “replacement cost,” or the like, may
102    include reasonable deductibles, as determined by the board.An
103    association or group of associations may self-insure against
104    claims against the association, the association property, and
105    the condominium property required to be insured by an
106    association, upon compliance with ss. 624.460-624.488. A copy of
107    each policy of insurance in effect shall be made available for
108    inspection by unit owners at reasonable times.
109          (b) Every hazard insurance policy which is issued or
110    renewed on or after January 1, 2004, to protect thea
111    condominium building shall provide primary coverage for:
112          1. Portions of the condominium property located outside
113    the units;
114          2. The condominium property located inside the units as
115    such property was initially installed, or replacements thereof
116    of like kind and quality, and in accordance with the original
117    plans and specifications, or if the original plans and
118    specifications are not available, as they existed at the time
119    the unit was initially conveyed; and
120          3. Portions of the condominium property for which the
121    declaration of condominium requires coverage by the association.
122         
123          Anything to the contrary notwithstanding, the terms “condominium
124    property,” “building,” “improvements,” “insurable improvements,”
125    “common elements,” “association property,” and any other term
126    found in the declaration of condominium which defines the scope
127    of property or casualty insurance which a condominium
128    association must obtain shall exclude all floor, wall, and
129    ceiling coverings,that the word "building" wherever used in the
130    policy include, but not necessarily be limited to, fixtures,
131    installations, or additions comprising that part of the building
132    within the unfinished interior surfaces of the perimeter walls,
133    floors, and ceilings of the individual units initially
134    installed, or replacements thereof of like kind or quality, in
135    accordance with the original plans and specifications, or as
136    they existed at the time the unit was initially conveyed if the
137    original plans and specifications are not available. However,
138    unless prior to October 1, 1986, the association is required by
139    the declaration to provide coverage therefor, the word
140    "building" does not include unit floor coverings, wall
141    coverings, or ceiling coverings, and, as to contracts entered
142    into after July 1, 1992, does not include the following
143    equipment if it is located within a unit and the unit owner is
144    required to repair or replace such equipment:electrical
145    fixtures, appliances, air conditioner or heating equipment,
146    water heaters, water filters,or built-in cabinets and
147    countertops and window treatments, including curtains, drapes,
148    blinds, hardware and similar window treatment components, or
149    replacements of any of the foregoing, which are located within
150    the boundaries of a unit and serve only one unit and all air
151    conditioning compressors that service only an individual unit,
152    whether or not located within the unit boundaries. The foregoing
153    is intended to establish the property or casualty insuring
154    responsibilities of the association and those of the individual
155    unit owner and do not serve to broaden or extend the perils of
156    coverage afforded by any insurance contract provided to the
157    individual unit owner. From and after January 1, 2004, the
158    association shall have the authority to amend the declaration of
159    condominium, without regard to any requirement for mortgagee
160    approval of amendments affecting insurance requirements, to
161    conform the declaration of condominium to the coverage
162    requirements of this section.With respect to the coverage
163    provided for by this paragraph, the unit owners shall be
164    considered additional insureds under the policy.
165          (c) Every hazard insurance policy issued or renewed on or
166    after January 1, 2004,to an individual unit owner shall provide
167    that the coverage afforded by such policy is excess over the
168    amount recoverable under any other policy covering the same
169    property. Every insurance policy issued to an individual unit
170    owner providing such coverage shall bewithout rights of
171    subrogation against the condominium association which operates
172    the condominium in which such unit owner’s unit is located. All
173    real or personal property located within the boundaries of the
174    unit owner’s unit which are excluded from the coverage to be
175    provided by the association as set forth in paragraph (b) are to
176    be insured by the individual unit owner.
177          (d) The association shall obtain and maintain adequate
178    insurance or fidelity bonding of all persons who control or
179    disburse funds of the association. The insurance policy or
180    fidelity bond must cover the maximum funds that will be in the
181    custody of the association or its management agent at any one
182    time. As used in this paragraph, the term "persons who control
183    or disburse funds of the association" includes, but is not
184    limited to, those individuals authorized to sign checks and the
185    president, secretary, and treasurer of the association. The
186    association shall bear the cost of bonding.
187          (12) OFFICIAL RECORDS.--
188          (a) From the inception of the association, the association
189    shall maintain each of the following items, when applicable,
190    which shall constitute the official records of the association:
191          1. A copy of the plans, permits, warranties, and other
192    items provided by the developer pursuant to s. 718.301(4).
193          2. A photocopy of the recorded declaration of condominium
194    of each condominium operated by the association and of each
195    amendment to each declaration.
196          3. A photocopy of the recorded bylaws of the association
197    and of each amendment to the bylaws.
198          4. A certified copy of the articles of incorporation of
199    the association, or other documents creating the association,
200    and of each amendment thereto.
201          5. A copy of the current rules of the association.
202          6. A book or books which contain the minutes of all
203    meetings of the association, of the board of directors, and of
204    unit owners, which minutes shall be retained for a period of not
205    less than 7 years.
206          7. A current roster of all unit owners and their mailing
207    addresses, unit identifications, voting certifications, and, if
208    known, telephone numbers.
209          8. All current insurance policies of the association and
210    condominiums operated by the association.
211          9. A current copy of any management agreement, lease, or
212    other contract to which the association is a party or under
213    which the association or the unit owners have an obligation or
214    responsibility.
215          10. Bills of sale or transfer for all property owned by
216    the association.
217          11. Accounting records for the association and separate
218    accounting records for each condominium which the association
219    operates. All accounting records shall be maintained for a
220    period of not less than 7 years. The accounting records shall
221    include, but are not limited to:
222          a. Accurate, itemized, and detailed records of all
223    receipts and expenditures.
224          b. A current account and a monthly, bimonthly, or
225    quarterly statement of the account for each unit designating the
226    name of the unit owner, the due date and amount of each
227    assessment, the amount paid upon the account, and the balance
228    due.
229          c. All audits, reviews, accounting statements, and
230    financial reports of the association or condominium.
231          d. All contracts for work to be performed. Bids for work
232    to be performed shall also be considered official records and
233    shall be maintained for a period of 1 year.
234          12. Ballots, sign-in sheets, voting proxies, and all other
235    papers relating to voting by unit owners, which shall be
236    maintained for a period of 1 year from the date of the election,
237    vote, or meeting to which the document relates.
238          13. All rental records, when the association is acting as
239    agent for the rental of condominium units.
240          14. A copy of the current question and answer sheet as
241    described by s. 718.504.
242          15. All other records of the association not specifically
243    included in the foregoing which are related to the operation of
244    the association.
245          (b) The official records of the association shall be
246    maintained within the state. The records of the association
247    shall be made available to a unit owner within 5 working days
248    after receipt of written request by the board or its designee.
249    This paragraph may be complied with by having a copy of the
250    official records of the association available for inspection or
251    copying on the condominium property or association property.
252          (c) The official records of the association are open to
253    inspection by any association member or the authorized
254    representative of such member at all reasonable times. The right
255    to inspect the records includes the right to make or obtain
256    copies, at the reasonable expense, if any, of the association
257    member. The association may adopt reasonable rules regarding the
258    frequency, time, location, notice, and manner of record
259    inspections and copying. The failure of an association to
260    provide the records within 10 working days after receipt of a
261    written request shall create a rebuttable presumption that the
262    association willfully failed to comply with this paragraph. A
263    unit owner who is denied access to official records is entitled
264    to the actual damages or minimum damages for the association's
265    willful failure to comply with this paragraph. The minimum
266    damages shall be $50 per calendar day up to 10 days, the
267    calculation to begin on the 11th working day after receipt of
268    the written request. The failure to permit inspection of the
269    association records as provided herein entitles any person
270    prevailing in an enforcement action to recover reasonable
271    attorney's fees from the person in control of the records who,
272    directly or indirectly, knowingly denied access to the records
273    for inspection. The association shall maintain an adequate
274    number of copies of the declaration, articles of incorporation,
275    bylaws, and rules, and all amendments to each of the foregoing,
276    as well as the question and answer sheet provided for in s.
277    718.504 and year-end financial information required in this
278    section on the condominium property to ensure their availability
279    to unit owners and prospective purchasers, and may charge its
280    actual costs for preparing and furnishing these documents to
281    those requesting the same. Notwithstanding the provisions of
282    this paragraph, the following records shall not be accessible to
283    unit owners:
284          1. Any record protected by the lawyer-client privilege as
285    described in s. 90.502; and any record protected by the work-
286    product privilege, including any record prepared by an
287    association attorney or prepared at the attorney's express
288    direction; which reflects a mental impression, conclusion,
289    litigation strategy, or legal theory of the attorney or the
290    association, and which was prepared exclusively for civil or
291    criminal litigation or for adversarial administrative
292    proceedings, or which was prepared in anticipation of imminent
293    civil or criminal litigation or imminent adversarial
294    administrative proceedings until the conclusion of the
295    litigation or adversarial administrative proceedings.
296          2. Information obtained by an association in connection
297    with the approval of the lease, sale, or other transfer of a
298    unit.
299          3. Medical records of unit owners.
300          (d) The association shall prepare a question and answer
301    sheet as described in s. 718.504, and shall update it annually.
302          (e) The association or its authorized agent shall not be
303    required to provide a prospective purchaser or lienholder with
304    information about the condominium or the association other than
305    information or documents required by this chapter to be made
306    available or disclosed.
307          1. If, for the convenience of the members, the association
308    elects to provide requested information not required by law to
309    be made available or disclosed to prospective purchasers or
310    lienholders, the association may do so, and the association and
311    its authorized agent shall be immune from suit by any person or
312    entity for information given in good faith if the association or
313    its authorized agent accompanies such information with a written
314    statement in substantially the following form:
315         
316          The information contained herein, to the extent not
317    required to be provided by the Florida Condominium
318    Act, is provided without warranty or certification of
319    any sort. Reliance on the accuracy of this
320    information, if provided in good faith, is at the sole
321    risk of the person or entity choosing to rely thereon.
322    You are encouraged to review original documentation
323    that may be available rather than relying on
324    summaries, compilations, statements of opinion, or
325    anecdotal information which may be the source of our
326    information. Florida law provides immunity from suit
327    for good faith information, even if it is later
328    determined to be inaccurate.
329         
330          2. The association or its authorized agent shall be
331    entitled to charge a reasonable fee to the prospective
332    purchaser, lienholder, or the current unit owner for its time in
333    providing good faith responses to requests for information by or
334    on behalf of a prospective purchaser or lienholder, other than
335    that required by law, provided that such fee shall not exceed
336    $150 plus the reasonable cost of photocopying and any attorney’s
337    fees incurred by the association.
338          Section 3. Paragraphs (b) and (l) of subsection (2) of
339    section 718.112, Florida Statutes, are amended to read:
340          718.112 Bylaws.--
341          (2) REQUIRED PROVISIONS.--The bylaws shall provide for the
342    following and, if they do not do so, shall be deemed to include
343    the following:
344          (b) Quorum; voting requirements; proxies.--
345          1. Unless a lower number is provided in the bylaws, the
346    percentage of voting interests required to constitute a quorum
347    at a meeting of the members shall be a majority of the voting
348    interests. Unless otherwise provided in this chapter or in the
349    declaration, articles of incorporation, or bylaws, and except as
350    provided in subparagraph (d)3., decisions shall be made by
351    owners of a majority of the voting interests represented at a
352    meeting at which a quorum is present.
353          2. Except as specifically otherwise provided herein, after
354    January 1, 1992, unit owners may not vote by general proxy, but
355    may vote by limited proxies substantially conforming to a
356    limited proxy form adopted by the division. Limited proxies and
357    general proxies may be used to establish a quorum. Limited
358    proxies shall be used for votes taken to waive or reduce
359    reserves in accordance with subparagraph (f)2.; for votes taken
360    to waive the financial reporting requirements of s. 718.111(13);
361    for votes taken to amend the declaration pursuant to s. 718.110;
362    for votes taken to amend the articles of incorporation or bylaws
363    pursuant to this section; and for any other matter for which
364    this chapter requires or permits a vote of the unit owners.
365    Except as provided in paragraph (d), after January 1, 1992, no
366    proxy, limited or general, shall be used in the election of
367    board members. General proxies may be used for other matters for
368    which limited proxies are not required, and may also be used in
369    voting for nonsubstantive changes to items for which a limited
370    proxy is required and given. Notwithstanding the provisions of
371    this subparagraph, unit owners may vote in person at unit owner
372    meetings. Nothing contained herein shall limit the use of
373    general proxies or require the use of limited proxies for any
374    agenda item or election at any meeting of a timeshare
375    condominium association.
376          3. Any proxy given shall be effective only for the
377    specific meeting for which originally given and any lawfully
378    adjourned meetings thereof. In no event shall any proxy be valid
379    for a period longer than 90 days after the date of the first
380    meeting for which it was given. Every proxy is revocable at any
381    time at the pleasure of the unit owner executing it.
382          4. A member of the board of administration or a committee
383    may submit in writing his or her agreement or disagreement with
384    any action taken at a meeting that the member did not attend.
385    This agreement or disagreement may not be used as a vote for or
386    against the action taken and may not be used for the purposes of
387    creating a quorum.
388          5. When any of the board or committee members meet by
389    telephone conference, those board or committee members attending
390    by telephone conference may be counted toward obtaining a quorum
391    and may vote by telephone. A telephone speaker must be used so
392    that the conversation of those board or committee members
393    attending by telephone may be heard by the board or committee
394    members attending in person as well as by any unit owners
395    present at a meeting.
396          (l) Certificate of compliance.--There shall be a provision
397    that a certificate of compliance from a licensed electrical
398    contractor or electrician may be accepted by the association's
399    board as evidence of compliance of the condominium units to the
400    applicable fire and life safety code. Notwithstanding the
401    provisions of chapter 633 or of any other statute, ordinance,
402    administrative rule, or regulation, or any interpretation of the
403    foregoing, no association, condominium, or unit owner shall be
404    obligated to retrofit the common elements or units of a
405    residential condominium with a fire sprinkler system in a
406    building that has been certified for occupancy by the applicable
407    governmental entity, provided that the unit owners have voted to
408    forego such retrofitting by the affirmative vote of two-thirds
409    of all voting interests. Such vote may not be obtained by
410    general proxy or limited proxy. Such vote may be taken at a duly
411    noticed meeting or by written consent without a meeting, and
412    shall be effective upon the recording of a duly executed
413    certificate attesting to such vote in the public records for the
414    county where the condominium is located. The association shall
415    provide each unit owner written notice of the vote to forego
416    retrofitting of the required fire sprinkler system, in at least
417    16-point bold type, by certified mail within 20 days after the
418    association’s vote. Such notice shall also be provided to new
419    owners at closing or to renters upon signing a lease. Such vote
420    shall be held biannually or, by majority vote of the board of
421    directors of the condominium association, at the next annual
422    meeting. As part of the information collected annually from
423    condominiums by the division, it shall require condominium
424    associations to report the membership vote and recording of a
425    certificate under this subsection and, if retrofitting has been
426    undertaken, the per-unit cost of such work. The division shall
427    annually report to the Department of Insurance, State Fire
428    Marshal’s Office, the number of condominiums that have elected
429    to forego retrofitting.
430          Section 4. Subsection (1) of section 718.303, Florida
431    Statutes, is amended to read:
432          718.303 Obligations of owners; waiver; levy of fine
433    against unit by association.--
434          (1) Each unit owner, each tenant and other invitee, and
435    each association shall be governed by, and shall comply with the
436    provisions of, this chapter, the declaration, the documents
437    creating the association, and the association bylaws and the
438    provisions thereof shall be deemed expressly incorporated into
439    any lease of a unit. Actions for damages or for injunctive
440    relief, or both, for failure to comply with these provisions may
441    be brought by the association or by a unit owner against:
442          (a) The association.
443          (b) A unit owner.
444          (c) Directors designated by the developer, for actions
445    taken by them prior to the time control of the association is
446    assumed by unit owners other than the developer.
447          (d) Any director who willfully and knowingly fails to
448    comply with these provisions.
449          (e) Any tenant leasing a unit, and any other invitee
450    occupying a unit.
451         
452          The prevailing party in any such action or in any action in
453    which the purchaser claims a right of voidability based upon
454    contractual provisions as required in s. 718.503(1)(a) is
455    entitled to recover reasonable attorney's fees. A unit owner
456    prevailing in an action between the association and the unit
457    owner under this section, in addition to recovering his or her
458    reasonable attorney's fees, may recover additional amounts as
459    determined by the court to be necessary to reimburse the unit
460    owner for his or her share of assessments levied by the
461    association to fund its expenses of the litigation. This relief
462    does not exclude other remedies provided by law. Actions arising
463    under this subsection shall not be deemed to be actions for
464    specific performance.
465          Section 5. Subsection (2) of section 719.104, Florida
466    Statutes, is amended to read:
467          719.104 Cooperatives; access to units; records; financial
468    reports; assessments; purchase of leases.--
469          (2) OFFICIAL RECORDS.--
470          (a) From the inception of the association, the association
471    shall maintain a copy of each of the following, where
472    applicable, which shall constitute the official records of the
473    association:
474          1. The plans, permits, warranties, and other items
475    provided by the developer pursuant to s. 719.301(4).
476          2. A photocopy of the cooperative documents.
477          3. A copy of the current rules of the association.
478          4. A book or books containing the minutes of all meetings
479    of the association, of the board of directors, and of the unit
480    owners, which minutes shall be retained for a period of not less
481    than 7 years.
482          5. A current roster of all unit owners and their mailing
483    addresses, unit identifications, voting certifications, and, if
484    known, telephone numbers.
485          6. All current insurance policies of the association.
486          7. A current copy of any management agreement, lease, or
487    other contract to which the association is a party or under
488    which the association or the unit owners have an obligation or
489    responsibility.
490          8. Bills of sale or transfer for all property owned by the
491    association.
492          9. Accounting records for the association and separate
493    accounting records for each unit it operates, according to good
494    accounting practices. All accounting records shall be maintained
495    for a period of not less than 7 years. The accounting records
496    shall include, but not be limited to:
497          a. Accurate, itemized, and detailed records of all
498    receipts and expenditures.
499          b. A current account and a monthly, bimonthly, or
500    quarterly statement of the account for each unit designating the
501    name of the unit owner, the due date and amount of each
502    assessment, the amount paid upon the account, and the balance
503    due.
504          c. All audits, reviews, accounting statements, and
505    financial reports of the association.
506          d. All contracts for work to be performed. Bids for work
507    to be performed shall also be considered official records and
508    shall be maintained for a period of 1 year.
509          10. Ballots, sign-in sheets, voting proxies, and all other
510    papers relating to voting by unit owners, which shall be
511    maintained for a period of 1 year after the date of the
512    election, vote, or meeting to which the document relates.
513          11. All rental records where the association is acting as
514    agent for the rental of units.
515          12. A copy of the current question and answer sheet as
516    described in s. 719.504.
517          13. All other records of the association not specifically
518    included in the foregoing which are related to the operation of
519    the association.
520          (b) The official records of the association shall be
521    maintained within the state. The records of the association
522    shall be made available to a unit owner within 5 working days
523    after receipt of written request by the board or its designee.
524    This paragraph may be complied with by having a copy of the
525    official records available for inspection or copying on the
526    cooperative property.
527          (c) The official records of the association shall be open
528    to inspection by any association member or the authorized
529    representative of such member at all reasonable times. Failure
530    to permit inspection of the association records as provided
531    herein entitles any person prevailing in an enforcement action
532    to recover reasonable attorney's fees from the person in control
533    of the records who, directly or indirectly, knowingly denies
534    access to the records for inspection. The right to inspect the
535    records includes the right to make or obtain copies, at the
536    reasonable expense, if any, of the association member. The
537    association may adopt reasonable rules regarding the frequency,
538    time, location, notice, and manner of record inspections and
539    copying. The failure of an association to provide the records
540    within 10 working days after receipt of a written request
541    creates a rebuttable presumption that the association willfully
542    failed to comply with this paragraph. A unit owner who is denied
543    access to official records is entitled to the actual damages or
544    minimum damages for the association's willful failure to comply
545    with this paragraph. The minimum damages shall be $50 per
546    calendar day up to 10 days, the calculation to begin on the 11th
547    day after receipt of the written request. The association shall
548    maintain an adequate number of copies of the declaration,
549    articles of incorporation, bylaws, and rules, and all amendments
550    to each of the foregoing, as well as the question and answer
551    sheet provided for in s. 719.504, on the cooperative property to
552    ensure their availability to unit owners and prospective
553    purchasers, and may charge its actual costs for preparing and
554    furnishing these documents to those requesting the same.
555    Notwithstanding the provisions of this paragraph, the following
556    records shall not be accessible to unit owners:
557          1. A record that was prepared by an association attorney
558    or prepared at the attorney's express direction; that reflects a
559    mental impression, conclusion, litigation strategy, or legal
560    theory of the attorney or the association; or that was prepared
561    exclusively for civil or criminal litigation or for adversarial
562    administrative proceedings or in anticipation of imminent civil
563    or criminal litigation or imminent adversarial administrative
564    proceedings, until the conclusion of the litigation or
565    adversarial administrative proceedings.
566          2. Information obtained by an association in connection
567    with the approval of the lease, sale, or other transfer of a
568    unit.
569          3. Medical records of unit owners.
570          (d) The association or its authorized agent shall not be
571    required to provide a prospective purchaser or lienholder with
572    information about the cooperative or association other than the
573    information or documents required by this chapter to be made
574    available or disclosed.
575          1. If, for the convenience of the members, the association
576    elects to provide requested information not required by law to
577    be made available or disclosed to prospective purchasers or
578    lienholders, the association may do so, and the association and
579    its authorized agent shall be immune from suit by any person or
580    entity for information given in good faith if the association or
581    its authorized agent accompanies such information with a written
582    statement in substantially the following form:
583         
584          The information contained herein, to the extent not
585    required to be provided by the Florida Cooperative
586    Act, is provided without warranty or certification of
587    any sort. Reliance on the accuracy of this
588    information, if provided in good faith, is at the sole
589    risk of the person or entity choosing to rely thereon.
590    You are encouraged to review original documentation
591    that may be available rather than relying on
592    summaries, compilations, statements of opinion, or
593    anecdotal information which may be the source of our
594    information. Florida law provides immunity from suit
595    for good faith information, even if it is later
596    determined to be inaccurate.
597         
598          2. The association or its authorized agent shall be
599    entitled to charge a reasonable fee to the prospective
600    purchaser, lienholder, or the current unit owner for its time in
601    providing good faith responses to requests for information by or
602    on behalf of a prospective purchaser or lienholder, other than
603    that required by law, provided that such fee shall not exceed
604    $150 plus the reasonable cost of photocopying and any attorney’s
605    fees incurred by the association.
606          Section 6. Subsection (1) of section 719.303, Florida
607    Statutes, is amended to read:
608          719.303 Obligations of owners.--
609          (1) Each unit owner, each tenant and other invitee, and
610    each association shall be governed by, and shall comply with the
611    provisions of, this chapter, the cooperative documents, the
612    documents creating the association, and the association bylaws,
613    and the provisions thereof shall be deemed expressly
614    incorporated into any lease of a unit. Actions for damages or
615    for injunctive relief, or both, for failure to comply with these
616    provisions may be brought by the association or by a unit owner
617    against:
618          (a) The association.
619          (b) A unit owner.
620          (c) Directors designated by the developer, for actions
621    taken by them prior to the time control of the association is
622    assumed by unit owners other than the developer.
623          (d) Any director who willfully and knowingly fails to
624    comply with these provisions.
625          (e) Any tenant leasing a unit, and any other invitee
626    occupying a unit.
627         
628          The prevailing party in any such action or in any action in
629    which the purchaser claims a right of voidability based upon
630    contractual provisions as required in s. 719.503(1)(a) is
631    entitled to recover reasonable attorney's fees. A unit owner
632    prevailing in an action between the association and the unit
633    owner under this section, in addition to recovering his or her
634    reasonable attorney's fees, may recover additional amounts as
635    determined by the court to be necessary to reimburse the unit
636    owner for his or her share of assessments levied by the
637    association to fund its expenses of the litigation. This relief
638    does not exclude other remedies provided by law. Actions arising
639    under this subsection shall not be deemed to be actions for
640    specific performance.
641          Section 7. Section 720.302, Florida Statutes, is amended
642    to read:
643          720.302 Purposes, scope, and application.--
644          (1) The purposes of ss. 720.301-720.312 are to give
645    statutory recognition to corporations not for profitthat
646    operate residential communities in this state, to provide
647    procedures for operating homeowners' associations, and to
648    protect the rights of association members without unduly
649    impairing the ability of such associations to perform their
650    functions.
651          (2) The Legislature recognizes that it is not in the best
652    interest of homeowners' associations or the individual
653    association members thereof to create or impose a bureau or
654    other agency of state government to regulate the affairs of
655    homeowners' associations. Further, the Legislature recognizes
656    that certain contract rights have been created for the benefit
657    of homeowners' associations and members thereof before the
658    effective date of this act and that ss. 720.301-720.312 are not
659    intended to impair such contract rights, including, but not
660    limited to, the rights of the developer to complete the
661    community as initially contemplated.
662          (3) Sections 720.301-720.312 do not apply to:
663          (a) A community that is composed of property primarily
664    intended for commercial, industrial, or other nonresidential
665    use; or
666          (b) The commercial or industrial parcels in a community
667    that contains both residential parcels and parcels intended for
668    commercial or industrial use.
669          (4) Sections 720.301-720.312 do not apply to any
670    association that is subject to regulation under chapter 718,
671    chapter 719, or chapter 721; or to any nonmandatory association
672    formed under chapter 723.
673          (5) Unless expressly stated to the contrary, corporations
674    not for profit that operate residential homeowners’ associations
675    in this state shall be governed by and subject to the provisions
676    of chapter 617. This provision is intended to clarify existing
677    law.
678          Section 8. Subsection (5) is added to section 719.1055,
679    Florida Statutes, to read:
680          719.1055 Amendment of cooperative documents; alteration
681    and acquisition of property.--
682          (5) Notwithstanding the provisions of chapter 633 or of
683    any other statute, ordinance, administrative rule, or
684    regulation, or any interpretation of the foregoing, no
685    association, cooperative, or unit owner shall be obligated to
686    retrofit the common areas or units of a residential cooperative
687    with a fire sprinkler system or other enhanced fire protection
688    system in a building that has been certified for occupancy by
689    the applicable governmental entity, provided that the unit
690    owners have voted to forego such retrofitting by the affirmative
691    vote of two-thirds of all voting interests. Such vote may not be
692    obtained by general proxy or limited proxy. Such vote may be
693    taken at a duly noticed meeting or by written consent without a
694    meeting, and shall be effective upon the recording of a duly
695    executed certificate attesting to such vote in the public
696    records for the county where the cooperative is located. The
697    association shall provide each unit owner written notice of the
698    vote to forego retrofitting of the required fire sprinkler
699    system, in at least 16-point bold type, by certified mail within
700    20 days after the association’s vote. Such notice shall also be
701    provided to new owners at closing or to renters upon signing a
702    lease. As part of the information collected from cooperatives by
703    the division, it shall require cooperative associations to
704    report the membership vote and recording of a certificate under
705    this subsection and, if retrofitting has been undertaken, the
706    per-unit cost of such work. The division shall annually report
707    to the Department of Financial Services, Division of State Fire
708    Marshal, the number of cooperatives that have elected to forego
709    retrofitting.
710          Section 9. This act shall take effect upon becoming a law.
711