HB 0861 2003
1	CHAMBER ACTION
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6	The Committee on Business Regulation recommends the following:
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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	712.05, F.S.; providing that a recorded notice to preserve
13	a claim of right or covenant or restriction, or a part
14	thereof, may be filed by a homeowners’ association upon
15	approval by two-thirds of that association’s board of
16	directors; amending s. 712.06, F.S.; providing that
17	content requirements of a recorded notice to preserve a
18	claim of right may be satisfied by a homeowners’
19	association’s affidavit affirming the delivery of a
20	statement to its members; providing a form of said
21	statement of marketable title action; providing that
22	recorded notice of a claim of right is deemed sufficient
23	description of property if it cites official records
24	describing said property by book and page; amending s.
25	720.303, F.S.; providing powers for associations
26	controlled by unit owners other than the developer;
27	providing a limitation on the ability to initiate certain
28	litigation; amending s. 720.306, F.S.; prohibiting certain
29	amendments to bylaws of the associations; providing for a
30	limitation on the applicability of certain provisions of
31	the act; providing an effective date.
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33	Be It Enacted by the Legislature of the State of Florida:
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35	Section 1. Subsection (1) of section 712.05, Florida
36	Statutes, is amended to read:
37	712.05. Effect of filing notice.--
38	(1) Any person claiming an interest in land or a
39	homeowners’ association desiring to preserve any covenant or
40	restriction may preserve and protect the same from
41	extinguishment by the operation of this act by filing for
42	record, during the 30-year period immediately following the
43	effective date of the root of title, a notice, in writing, in
44	accordance with the provisions hereof, which notice shall have
45	the effect of so preserving such claim of right or such covenant
46	or restriction or portion of such covenant or restriction for a
47	period of not longer than 30 years after filing the same unless
48	again filed as required herein. No disability or lack of
49	knowledge of any kind on the part of anyone shall delay the
50	commencement of or suspend the running of said 30-year period.
51	Such notice may be filed for record by the claimant or by any
52	other person acting on behalf of any claimant who is:
53	(a) Under a disability,
54	(b) Unable to assert a claim on his or her behalf, or
55	(c) One of a class, but whose identity cannot be
56	established or is uncertain at the time of filing such notice of
57	claim for record.
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59	Such notice may be filed by a homeowners’ association only if
60	the preservation of such covenant or restriction or portion of
61	such covenant or restriction is approved by at least two-thirds
62	of the members of the board of directors of an incorporated
63	homeowners’ association at a meeting for which a notice, stating
64	the meeting’s time and place and containing the statement of
65	marketable title action described in s. 712.06(1)(b), was mailed
66	or hand delivered to members of the homeowners’ association not
67	less than 7 days prior to such meetinga majority vote at a
68	meeting of the membership where a quorum is present.
69	Section 2. Paragraphs (b) and (e) of subsection (1) of
70	section 712.06, Florida Statutes, are amended to read:
71	712.06 Contents of notice; recording and indexing.--
72	(1) To be effective, the notice above referred to in s.
73	712.05shall contain:
74	(b) The name and post office address of an owner, or the
75	name and post office address of the person in whose name said
76	property is assessed on the last completed tax assessment roll
77	of the county at the time of filing, who, for purpose of such
78	notice, shall be deemed to be an owner; provided, however, if a
79	homeowners’ association is filing the notice, then the
80	requirements of this paragraph may be satisfied by attaching to
81	and recording with the notice an affidavit executed by the
82	appropriate member of the board of directors of the homeowners’
83	association affirming that the board of directors of the
84	homeowners’ association caused a statement in substantially the
85	following form to be mailed or hand delivered to the members of
86	that homeowners’ association:
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88	STATEMENT OF MARKETABLE TITLE ACTION
89	The [name of homeowners’ association] (the “Association”)
90	has taken action to ensure that the [name of declaration,
91	covenant, or restriction], recorded in Official Records Book
92	_____, Page _____, of the public records of _____ County,
93	Florida, as may be amended from time to time, currently
94	burdening the property of each and every member of the
95	Association, retains its status as the source of marketable
96	title with regard to the transfer of a member’s residence. To
97	this end, the Association shall cause the notice required by
98	chapter 712, Florida Statutes, to be recorded in the public
99	records of _____ County, Florida. Copies of this notice and its
100	attachments are available through the Association pursuant to
101	the Association’s governing documents regarding official records
102	of the Association.
103	(e) If such claim is based upon an instrument of record or
104	a recorded covenant or restriction, such instrument of record or
105	recorded covenant or restriction shall be deemedshall be
106	sufficiently described to identify the same if the notice
107	includes a, includingreference to the book and page in which
108	the same is recorded.
109	Section 3. Subsection (1) of section 720.303, Florida
110	Statutes, is amended to read:
111	720.303 Association powers and duties; meetings of board;
112	official records; budgets; financial reporting.--
113	(1) POWERS AND DUTIES.--An association which operates a
114	community as defined in s. 720.301, must be operated by an
115	association that is a Florida corporation. After October 1,
116	1995, the association must be incorporated and the initial
117	governing documents must be recorded in the official records of
118	the county in which the community is located. An association may
119	operate more than one community. The officers and directors of
120	an association have a fiduciary relationship to the members who
121	are served by the association. The powers and duties of an
122	association include those set forth in this chapter and, except
123	as expressly limited or restricted in this chapter, those set
124	forth in the governing documents. After control of the
125	association is obtained by unit owners other than the developer,
126	the association may institute, maintain, settle, or appeal
127	actions or hearings in its name on behalf of all members
128	concerning matters of common interest to the members, including,
129	but not limited to, the common areas; roof or structural
130	components of a building, or other improvements for which the
131	association is responsible; mechanical, electrical, or plumbing
132	elements serving an improvement or building for which the
133	association is responsible; representations of the developer
134	pertaining to any existing or proposed commonly used facility;
135	and protesting ad valorem taxes on commonly used facilities. The
136	association may defend actions in eminent domain or bring
137	inverse condemnation actions. Before commencing litigation
138	against any party in the name of the association involving
139	amounts in controversy in excess of $100,000, the association
140	must obtain the affirmative approval of a majority of the voting
141	interests at a meeting of the membership at which a quorum has
142	been attained. This subsection does not limit any statutory or
143	common-law right of any individual member or class of members to
144	bring any action without participation by the association.A
145	member does not have authority to act for the association by
146	virtue of being a member. An association may have more than one
147	class of members and may issue membership certificates.
148	Section 4. Subsection (1) of section 720.306, Florida
149	Statutes, is amended to read:
150	720.306 Meetings of members; voting and election
151	procedures; amendments.--
152	(1) QUORUM; AMENDMENTS.--
153	(a) Unless a lower number is provided in the bylaws, the
154	percentage of voting interests required to constitute a quorum
155	at a meeting of the members shall be 30 percent of the total
156	voting interests. Unless otherwise provided in this chapter or
157	in the articles of incorporation or bylaws, decisions that
158	require a vote of the members must be made by the concurrence of
159	at least a majority of the voting interests present, in person
160	or by proxy, at a meeting at which a quorum has been attained.
161	(b) Unless otherwise provided in the governing documents
162	or required by law, and other than those matters set forth in
163	paragraph (c), any governing document of an association may be
164	amended by the affirmative vote of two-thirds of the voting
165	interests of the association.
166	(c) Unless otherwise provided in the governing documents
167	as originally recorded or permitted by this chapter or chapter
168	617, an amendment may not materially and adversely alter the
169	proportionate voting interest appurtenant to a parcel or
170	increase the proportion or percentage by which a parcel shares
171	in the common expenses of the associationaffect vested rights
172	unless the record parcel owner of the affected parceland all
173	record owners of liens on the affectedparcels join in the
174	execution of the amendment. For purposes of this section, a
175	change in quorum requirements is not an alteration of voting
176	interests.
177	Section 5. The amendments to s. 720.306, Florida Statutes,
178	provided in this act shall not apply to or affect any vested
179	rights recognized by any court order or judgment in any action
180	commenced prior to July 1, 2003, and any such vested rights so
181	recognized may not be subsequently altered without the consent
182	of the affected parcel owner or owners.
183	Section 6. This act shall take effect July 1, 2003.