|
|
|
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
|
|