HB 1223

1	A bill to be entitled
2	An act relating to condominium associations; amending s.
3	718.103, F.S.; defining the term "immediate family
4	member"; amending s. 718.104, F.S.; prohibiting the
5	exercise of multiple votes by owners of multiple units;
6	amending s. 718.110, F.S.; providing for grandfathering
7	and modification of rental rights; providing for certain
8	application of the amendment of unit owners' rental
9	rights; providing certain voting and approval criteria for
10	amendments depriving owners of certain rights; amending s.
11	718.112, F.S.; requiring super majority votes to reduce
12	certain required reserves; creating s. 718.1125, F.S.;
13	imposing eligibility restrictions on association members;
14	authorizing the Division of Florida Land Sales,
15	Condominiums, and Mobile Homes to adopt rules; amending s.
16	718.116, F.S.; increasing percentage of mortgage debt used
17	as a limit on liability in certain foreclosure actions;
18	requiring notice of intent to record a claim of lien;
19	designating liens inoperative and unenforceable if
20	requirements are not fulfilled; changing priority of
21	claims to which payments for delinquent assessments are
22	made; providing that certain late fees and interest shall
23	not be the sole basis for a lien; providing limitations on
24	recording a claim of lien; requiring a claim of lien and
25	notice for collections to contain a certain statement;
26	providing criminal penalties for willful and malicious
27	imposition, enforcement, or overvaluation of a lien;
28	requiring a super majority board approval for excess funds
29	from a special assessment to be credited against future
30	assessments; requiring board actions imposing financial
31	hardships to be ratified by a majority of all voting
32	interests; amending s. 718.3025, F.S.; requiring
33	additional disclosures for contract validity or
34	enforceability; providing that certain business entities
35	may be contracted by the association to provide certain
36	services if approved by a majority of all unit owners;
37	amending s. 718.3026, F.S.; deleting a provision
38	authorizing associations with fewer than 100 units to opt
39	out of certain products and services contracting
40	requirements; lowering a threshold percentage to require
41	competitive bidding; requiring a minimum number of bids;
42	specifying nonapplication to all employment contracts;
43	creating s. 718.305, F.S.; authorizing the association to
44	conduct criminal background checks of potential unit
45	owners and tenants; amending s. 718.501, F.S.; requiring
46	mandatory training for certain board members; creating s.
47	718.5011, F.S.; creating an Office of the Condominium
48	Ombudsman within the division of Florida Land Sales,
49	Condominiums, and Mobile Homes; providing for the office's
50	independence from the division; authorizing the Joint
51	Legislative Auditing Committee to appoint the ombudsman;
52	requiring the ombudsman to be an attorney; providing for
53	the filling of a vacant ombudsman position; requiring the
54	ombudsman and staff to subscribe to the oath of office
55	required of state officers; prohibiting the ombudsman and
56	staff from engaging in any other profession, serving as a
57	representative or employee of any political party, or
58	receiving remuneration for activities on behalf of
59	political candidates; prohibiting the ombudsman and staff
60	from seeking public office unless resigned from the Office
61	of the Condominium Ombudsman; providing requirements and
62	limitations on office staff; creating s. 718.5012, F.S.;
63	providing for powers and duties of the ombudsman; creating
64	s. 718.5013, F.S.; providing for compensation and expenses
65	for the office; authorizing the ombudsman to employ
66	clerical and technical assistants for certain purposes;
67	creating s. 718.5014, F.S.; providing for the location of
68	the ombudsman's office; creating s. 718.5015, F.S.;
69	creating the Advisory Council on Condominiums; providing
70	for membership, functions, meetings, and offices of the
71	council; amending s. 718.504, F.S.; revising provisions
72	relating to certain prospectus and offering circulars;
73	requiring developers of certain condominiums to provide a
74	prospectus including a "Frequently Asked Questions and
75	Answers" document; requiring the document to contain
76	certain information; reducing the threshold amount to be
77	required to be disclosed in controversy for litigation;
78	requiring certain information to be included in the
79	prospectus or offering circular; providing for a type two
80	transfer of all records, personnel, property, and
81	unexpended balances of appropriations, allocations, or
82	other funds for the administration of pt. VIIII of ch.
83	468, F.S., from the Division of Professions to the
84	Division of Florida Land Sales, Condominiums, and Mobile
85	Homes within the Department of Business and Professional
86	Regulation; preserving the department's authority to
87	pursue certain remedies; creating s. 718.510, F.S.;
88	requiring the creation of a Condominium Owners' Bill of
89	Rights; providing an effective date.
90
91	Be It Enacted by the Legislature of the State of Florida:
92
93	Section 1.  Subsections (18) through (30) of section
94	718.103, Florida Statutes, are renumbered as subsections (19)
95	through (31), respectively, and a new subsection (18) is added
96	to said section, to read:
97	718.103  Definitions.--As used in this chapter, the term:
98	(18)  "Immediate family member" means a parent, child,
99	spouse, sibling, grandparent, grandchild, uncle, aunt, niece,
100	nephew, great-uncle, great-aunt, great-nephew, great-niece,
101	first cousin, or second cousin by blood, marriage, or adoption
102	and includes half and step relatives.
103	Section 2.  Paragraph (j) of subsection (4) of section
104	718.104, Florida Statutes, is amended to read:
105	718.104  Creation of condominiums; contents of
106	declaration.--Every condominium created in this state shall be
107	created pursuant to this chapter.
108	(4)  The declaration must contain or provide for the
109	following matters:
110	(j)  Unit owners' membership and voting rights in the
111	association. However, any provision in a declaration or bylaws
112	allowing an owner of multiple units in the same condominium to
113	exercise multiple votes shall be void.
114	Section 3.  Subsection (13) is added to section 718.110,
115	Florida Statutes, to read:
116	718.110  Amendment of declaration; correction of error or
117	omission in declaration by circuit court; grandfathering and
118	modification of certain rights.--
119	(13)(a)  Unless expressly stated in the amendment, any
120	amendment restricting unit owners' rights relating to the rental
121	of units, keeping of pets, or allocation of parking spaces shall
122	apply only to unit owners who purchase their unit after the
123	effective date of that amendment.
124	(b)  Notwithstanding any other provision of law, or of the
125	declaration or bylaws, if an amendment expressly deprives
126	current unit owners of any part of their rights mentioned in
127	subsection (a), it must be approved by at least three-fourths of
128	the voting interests. A declaration or an amendment to a
129	declaration may provide for a higher super majority vote
130	requirement.
131	Section 4.  Paragraph (f) of subsection (2) of section
132	718.112, Florida Statutes, is amended to read:
133	718.112  Bylaws.--
134	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
135	following and, if they do not do so, shall be deemed to include
136	the following:
137	(f)  Annual budget.--
138	1.  The proposed annual budget of common expenses shall be
139	detailed and shall show the amounts budgeted by accounts and
140	expense classifications, including, if applicable, but not
141	limited to, those expenses listed in s. 718.504(21). A
142	multicondominium association shall adopt a separate budget of
143	common expenses for each condominium the association operates
144	and shall adopt a separate budget of common expenses for the
145	association. In addition, if the association maintains limited
146	common elements with the cost to be shared only by those
147	entitled to use the limited common elements as provided for in
148	s. 718.113(1), the budget or a schedule attached thereto shall
149	show amounts budgeted therefor. If, after turnover of control of
150	the association to the unit owners, any of the expenses listed
151	in s. 718.504(21) are not applicable, they need not be listed.
152	2.  In addition to annual operating expenses, the budget
153	shall include reserve accounts for capital expenditures and
154	deferred maintenance. These accounts shall include, but are not
155	limited to, roof replacement, building painting, and pavement
156	resurfacing, regardless of the amount of deferred maintenance
157	expense or replacement cost, and for any other item for which
158	the deferred maintenance expense or replacement cost exceeds
159	$10,000. The amount to be reserved shall be computed by means of
160	a formula which is based upon estimated remaining useful life
161	and estimated replacement cost or deferred maintenance expense
162	of each reserve item. The association may adjust replacement
163	reserve assessments annually to take into account any changes in
164	estimates or extension of the useful life of a reserve item
165	caused by deferred maintenance. This subsection does not apply
166	to an adopted budget in which the members of an association have
167	determined, by a two-thirds majority vote at a duly called
168	meeting of the association, to provide no reserves or less
169	reserves than required by this subsection. However, prior to
170	turnover of control of an association by a developer to unit
171	owners other than a developer pursuant to s. 718.301, the
172	developer may vote to waive the reserves or reduce the funding
173	of reserves for the first 2 fiscal years of the association's
174	operation, beginning with the fiscal year in which the initial
175	declaration is recorded, after which time reserves may be waived
176	or reduced only upon the vote of a majority of all nondeveloper
177	voting interests voting in person or by limited proxy at a duly
178	called meeting of the association. If a meeting of the unit
179	owners has been called to determine whether to waive or reduce
180	the funding of reserves, and no such result is achieved or a
181	quorum is not attained, the reserves as included in the budget
182	shall go into effect. After the turnover, the developer may vote
183	its voting interest to waive or reduce the funding of reserves.
184	3.  Reserve funds and any interest accruing thereon shall
185	remain in the reserve account or accounts, and shall be used
186	only for authorized reserve expenditures unless their use for
187	other purposes is approved in advance by a majority vote at a
188	duly called meeting of the association. Prior to turnover of
189	control of an association by a developer to unit owners other
190	than the developer pursuant to s. 718.301, the developer-
191	controlled association shall not vote to use reserves for
192	purposes other than that for which they were intended without
193	the approval of a majority of all nondeveloper voting interests,
194	voting in person or by limited proxy at a duly called meeting of
195	the association.
196	4.  In a multicondominium association, the only voting
197	interests which are eligible to vote on questions that involve
198	waiving or reducing the funding of reserves, or using existing
199	reserve funds for purposes other than purposes for which the
200	reserves were intended, are the voting interests of the units
201	subject to assessment to fund the reserves in question.
202	Section 5.  Section 718.1125, Florida Statutes, is created
203	to read:
204	718.1125  Board eligibility restrictions.--
205	(1)  Notwithstanding any provision of the declaration or
206	bylaws, no one may serve on the board of the same association:
207	(a)  Alongside an immediate family member who is also on
208	that board. If this paragraph is violated, the later-elected
209	immediate family member's election shall be deemed void. Good-
210	faith ignorance of such a relationship shall prevent the
211	operation of this paragraph, but only until such a relationship
212	is discovered.
213	(b)  Unless actually resident in the condominium for at
214	least 3 months out of the year prior to the annual meeting at
215	which he or she was elected.
216	(c)  Unless subjected to a criminal background check by the
217	Department of Law Enforcement, the results of which shall be
218	available to all unit owners in that condominium notwithstanding
219	any public records exemption.
220	(d)  For more than 2 consecutive years. A person barred
221	from serving on a board under this paragraph may seek reelection
222	after an intervening 2 years or may seek to be reelected
223	immediately, only if, no other candidate seeks to be elected and
224	the person otherwise barred is approved by a majority of the
225	voting interests.
226	(2)  The Department of Law Enforcement shall, in
227	coordination with the division, adopt rules pursuant to chapter
228	120 to provide for criminal background checks required by
229	paragraph (1)(e) and for recovering the costs of such checks
230	from associations.
231	Section 6.  Paragraphs (b) and (c) of subsection (1),
232	subsection (3), paragraphs (a) and (b) of subsection (5),
233	paragraph (b) of subsection (6), and subsection (10) of section
234	718.116, Florida Statutes, are amended, paragraph (e) is added
235	to subsection (6) of said section, and subsection (11) is added
236	to said section, to read:
237	718.116  Assessments; liability; lien and priority;
238	interest; collection.--
239	(1)
240	(b)  The liability of a first mortgagee or its successor or
241	assignees who acquire title to a unit by foreclosure or by deed
242	in lieu of foreclosure for the unpaid assessments that became
243	due prior to the mortgagee's acquisition of title is limited to
244	the lesser of:
245	1.  The unit's unpaid common expenses and regular periodic
246	assessments which accrued or came due during the 6 months
247	immediately preceding the acquisition of title and for which
248	payment in full has not been received by the association; or
249	2.  Five One percent of the original mortgage debt. The
250	provisions of this paragraph apply only if the first mortgagee
251	joined the association as a defendant in the foreclosure action.
252	Joinder of the association is not required if, on the date the
253	complaint is filed, the association was dissolved or did not
254	maintain an office or agent for service of process at a location
255	which was known to or reasonably discoverable by the mortgagee.
256	(c)  The person acquiring title shall pay the amount owed
257	to the association within 30 days after transfer of title.
258	Failure to pay the full amount when due shall entitle the
259	association to record a claim of lien against the parcel and
260	proceed in the same manner as provided in this section for the
261	collection of unpaid assessments. Such a lien may not be
262	recorded until 30 days after the association posts notice by
263	certified mail to the person acquiring title of its intent to
264	record the lien.
265	(3)  Assessments and installments on them which are not
266	paid when due bear interest at the rate provided in the
267	declaration, from the due date until paid. This rate may not
268	exceed the rate allowed by law, and, if no rate is provided in
269	the declaration, interest shall accrue at the rate of 18 percent
270	per year. Also, if the declaration or bylaws so provide, the
271	association may charge an administrative late fee in addition to
272	such interest, in an amount not to exceed the greater of $25 or
273	5 percent of each installment of the assessment for each
274	delinquent installment that the payment is late. Any payment
275	received by an association shall be applied first to the
276	delinquent assessment, then to any interest accrued by the
277	association, then to any administrative late fee, and then to
278	any costs and reasonable attorney's fees incurred in collection,
279	and then to the delinquent assessment. The foregoing shall be
280	applicable notwithstanding any restrictive endorsement,
281	designation, or instruction placed on or accompanying a payment.
282	A late fee shall not be subject to the provisions in chapter 687
283	or s. 718.303(3).
284	(5)(a)  The association has a lien on each condominium
285	parcel to secure the payment of assessments. No administrative
286	late fee or interest shall be the sole basis for a lien. Except
287	as otherwise provided in subsection (1) and as set forth below,
288	the lien is effective from and shall relate back to the
289	recording of the original declaration of condominium, or, in the
290	case of lien on a parcel located in a phase condominium, the
291	last to occur of the recording of the original declaration or
292	amendment thereto creating the parcel. However, as to first
293	mortgages of record, the lien is effective from and after
294	recording of a claim of lien in the public records of the county
295	in which the condominium parcel is located. Nothing in this
296	subsection shall be construed to bestow upon any lien, mortgage,
297	or certified judgment of record on April 1, 1992, including the
298	lien for unpaid assessments created herein, a priority which, by
299	law, the lien, mortgage, or judgment did not have before that
300	date.
301	(b)  To be valid, a claim of lien must state the
302	description of the condominium parcel, the name of the record
303	owner, the name and address of the association, the amount due,
304	and the due dates. It must be executed and acknowledged by an
305	officer or authorized agent of the association. The claim of
306	lien may not be recorded until 45 days after the association
307	posts notice of its intent to record the claim by certified or
308	registered mail to the record owner or delivers such notice to
309	the record owner by hand. Failure to comply with this
310	requirement renders the claim of lien inoperative and
311	unenforceable until compliance. No such lien shall be effective
312	longer than 1 year after the claim of lien was recorded unless,
313	within that time, an action to enforce the lien is commenced.
314	The 1-year period shall automatically be extended for any length
315	of time during which the association is prevented from filing a
316	foreclosure action by an automatic stay resulting from a
317	bankruptcy petition filed by the parcel owner or any other
318	person claiming an interest in the parcel. The claim of lien
319	shall secure all unpaid assessments which are due and which may
320	accrue subsequent to the recording of the claim of lien and
321	prior to the entry of a certificate of title, as well as
322	interest and all reasonable costs and attorney's fees incurred
323	by the association incident to the collection process. Upon
324	payment in full, the person making the payment is entitled to a
325	satisfaction of the lien.
326	(6)
327	(b)  No foreclosure judgment may be entered until at least
328	30 days after the association gives written notice to the unit
329	owner of its intention to foreclose its lien to collect the
330	unpaid assessments. If this notice is not given at least 30 days
331	before the foreclosure action is filed, and if the unpaid
332	assessments, including those coming due after the claim of lien
333	is recorded, are paid before the entry of a final judgment of
334	foreclosure or money judgment, the association shall not recover
335	attorney's fees or costs. The notice must be given by delivery
336	of a copy of it to the unit owner or by certified or registered
337	mail, return receipt requested, addressed to the unit owner at
338	his or her last known address; and, upon such mailing, the
339	notice shall be deemed to have been given, and the court shall
340	proceed with the foreclosure action and may award attorney's
341	fees and costs as permitted by law. The notice requirements of
342	this subsection are satisfied if the unit owner records a notice
343	of contest of lien as provided in subsection (5). The notice
344	requirements of this subsection do not apply if an action to
345	foreclose a mortgage on the condominium unit is pending before
346	any court; if the rights of the association would be affected by
347	such foreclosure; and if actual, constructive, or substitute
348	service of process has been made on the unit owner. Each claim
349	of lien as well as each 30-day written notice for collections
350	shall contain the following statement distinguished in
351	conspicuous bold, enlarged, or italicized type:
352
353	UNDER FLORIDA LAW, YOUR CONDOMINIUM UNIT, EVEN IF NOT YOUR
354	HOMESTEAD RESIDENCE, IS SUBJECT TO FORECLOSURE FOR FAILING TO
355	MAKE MAINTENANCE ASSESSMENT PAYMENTS.
356	(e)  A board member or officer of an association, or his or
357	her immediate family member, who willfully and maliciously acts
358	to impose, enforce, or increase the overall value of a lien for
359	the payment of assessments with the intent to purchase or assist
360	in the purchase of a condominium unit at foreclosure commits a
361	misdemeanor of the first degree, punishable as provided in s.
362	775.082 or s. 775.083.
363	(10)  The specific purpose or purposes of any special
364	assessment approved in accordance with the condominium documents
365	shall be set forth in a written notice of such assessment sent
366	or delivered to each unit owner. The funds collected pursuant to
367	a special assessment shall be used only for the specific purpose
368	or purposes set forth in such notice. However, upon completion
369	of such specific purpose or purposes, any excess funds will be
370	considered common surplus, and may, at the discretion of the
371	board, either be returned to the unit owners or, upon approval
372	of two-thirds of the board, be applied as a credit toward future
373	assessments.
374	(11)  Notwithstanding any provision of the declaration or
375	bylaws, any action of the board, even those characterized as
376	special assessments, that imposes a financial hardship on any or
377	all of the unit owners must be ratified by a majority of the
378	voting interests at a duly convened meeting of the association
379	to be held within 60 days of such action or such action shall be
380	void.
381	Section 7.  Paragraph (e) of subsection (1) of section
382	718.3025, Florida Statutes, is amended, subsection (4) of said
383	section is renumbered as subsection (5), and a new subsection
384	(4) is added to said section, to read:
385	718.3025  Agreements for operation, maintenance, or
386	management of condominiums; specific requirements.--
387	(1)  No written contract between a party contracting to
388	provide maintenance or management services and an association
389	which contract provides for operation, maintenance, or
390	management of a condominium association or property serving the
391	unit owners of a condominium shall be valid or enforceable
392	unless the contract:
393	(e)  Discloses any financial or ownership interest which
394	the developer, if the developer is in control of the
395	association, any officer of the association, or any member of
396	the board holds with regard to the party contracting to provide
397	maintenance or management services.
398	(4)  A business entity of whom an association's board
399	member or officer or his or her immediate family member is an
400	employee, or in which an association's board member or officer
401	or any or all of his or her immediate family members together
402	hold an ownership interest of 10 percent or more, may be
403	contracted to provide maintenance or management services to that
404	association only if approved by a majority of all unit owners. A
405	contract in violation of this subsection shall be void.
406	Section 8.  Section 718.3026, Florida Statutes, is amended
407	to read:
408	718.3026  Contracts for products and services; in writing;
409	bids; exceptions.--Associations with less than 100 units may opt
410	out of the provisions of this section if two-thirds of the unit
411	owners vote to do so, which opt-out may be accomplished by a
412	proxy specifically setting forth the exception from this
413	section.
414	(1)  All contracts as further described herein or any
415	contract that is not to be fully performed within 1 year after
416	the making thereof, for the purchase, lease, or renting of
417	materials or equipment to be used by the association in
418	accomplishing its purposes under this chapter, and all contracts
419	for the provision of services, shall be in writing. If a
420	contract for the purchase, lease, or renting of materials or
421	equipment, or for the provision of services, requires payment by
422	the association on behalf of any condominium operated by the
423	association in the aggregate that exceeds 2.5 5 percent of the
424	total annual budget of the association, including reserves, the
425	association shall obtain no fewer than three competitive bids
426	for the materials, equipment, or services. Nothing contained
427	herein shall be construed to require the association to accept
428	the lowest bid.
429	(2)(a)1.  Notwithstanding the foregoing, employment
430	contracts with employees of the association, and contracts for
431	attorney, accountant, architect, community association manager,
432	timeshare management firm, engineering, and landscape architect
433	services are not subject to the provisions of this section.
434	2.  A contract executed before January 1, 1992, and any
435	renewal thereof, is not subject to the competitive bid
436	requirements of this section. If a contract was awarded under
437	the competitive bid procedures of this section, any renewal of
438	that contract is not subject to such competitive bid
439	requirements if the contract contains a provision that allows
440	the board to cancel the contract on 30 days' notice. Materials,
441	equipment, or services provided to a condominium under a local
442	government franchise agreement by a franchise holder are not
443	subject to the competitive bid requirements of this section. A
444	contract with a manager, if made by a competitive bid, may be
445	made for up to 3 years. A condominium whose declaration or
446	bylaws provides for competitive bidding for services may operate
447	under the provisions of that declaration or bylaws in lieu of
448	this section if those provisions are not less stringent than the
449	requirements of this section.
450	(b)  Nothing contained herein is intended to limit the
451	ability of an association to obtain needed products and services
452	in an emergency.
453	(c)  This section shall not apply if the business entity
454	with which the association desires to enter into a contract is
455	the only source of supply within the county serving the
456	association.
457	(d)  Nothing contained herein shall excuse a party
458	contracting to provide maintenance or management services from
459	compliance with s. 718.3025.
460	Section 9.  Section 718.305, Florida Statutes, is created
461	to read:
462	718.305  Criminal background checks for potential unit
463	owners and tenants.--Upon receiving notice of a potential unit
464	owner or tenant, the association shall, at the expense of the
465	applicant, conduct a criminal background check of all persons
466	seeking to own or rent a unit.
467	Section 10.  Paragraph (j) of subsection (1) of section
468	718.501, Florida Statutes, is amended to read:
469	718.501  Powers and duties of Division of Florida Land
470	Sales, Condominiums, and Mobile Homes.--
471	(1)  The Division of Florida Land Sales, Condominiums, and
472	Mobile Homes of the Department of Business and Professional
473	Regulation, referred to as the "division" in this part, in
474	addition to other powers and duties prescribed by chapter 498,
475	has the power to enforce and ensure compliance with the
476	provisions of this chapter and rules promulgated pursuant hereto
477	relating to the development, construction, sale, lease,
478	ownership, operation, and management of residential condominium
479	units. In performing its duties, the division has the following
480	powers and duties:
481	(j)  The division shall provide training programs for
482	condominium association board members and unit owners. Training
483	shall be mandatory for newly elected board members and members
484	currently serving on a board who have not previously voluntarily
485	attended training.
486	Section 11.  Section 718.5011, Florida Statutes, is created
487	to read:
488	718.5011  Ombudsman; appointment; oath; restrictions on
489	ombudsman and his or her employees.--
490	(1)  There is created an Office of the Condominium
491	Ombudsman that for administrative purposes shall be located
492	within the Division of Florida Land Sales, Condominiums, and
493	Mobile Homes. However, the office shall be independent of the
494	division.
495	(2)  The Joint Legislative Auditing Committee shall appoint
496	an ombudsman by majority vote of the members of that committee.
497	The ombudsman shall be an attorney admitted to practice before
498	the Florida Supreme Court and shall serve at the pleasure of the
499	Joint Legislative Auditing Committee. Vacancies in the office
500	shall be filled in the same manner as the original appointment.
501	The ombudsman and attorneys under his staff shall take and
502	subscribe to the oath of office required of state officers by
503	the State Constitution. No officer or full-time employee of the
504	ombudsman's office shall actively engage in any other business
505	or profession; serve as the representative of any political
506	party, executive committee, or other governing body thereof;
507	serve as an executive, officer, or employee of any political
508	party, committee, organization, or association; receive
509	remuneration for activities on behalf of any candidate for
510	public office; or engage on behalf of any candidate for public
511	office in the solicitation of votes or other activities on
512	behalf of such candidacy. Neither the ombudsman nor any employee
513	of his or her office shall become a candidate for election to
514	public office unless he or she first resigns from his or her
515	office or employment.
516	Section 12.  Section 718.5012, Florida Statutes, is created
517	to read:
518	718.5012  Ombudsman; powers and duties.--The ombudsman
519	shall have such powers as are necessary to carry out the duties
520	of his or her office, including, but not limited to, the
521	following specific powers:
522	(1)  To have access to and use of all files and records of
523	the division.
524	(2)  To prepare and issue reports, recommendations, and
525	proposed orders to the division, the Governor, the Advisory
526	Council on Condominiums, the President of the Senate, the
527	Speaker of the House of Representatives, and minority leaders of
528	the Senate and the House of Representatives on any matter or
529	subject within the jurisdiction of the division, and to make
530	such recommendations as he or she deems appropriate for
531	legislation relative to division procedures, rules,
532	jurisdiction, personnel, and functions.
533	(3)  To act as liaison between the division and unit
534	owners, and to assist any unit owner in the preparation and
535	filing of a complaint to be investigated by the division. The
536	ombudsman shall establish procedures for receiving complaints.
537	Any complaint deemed valid by the ombudsman and properly falling
538	within the jurisdiction of the division and requiring remedial
539	action shall be identified and promptly filed with the division.
540	Upon the concurrence of the division, the ombudsman shall
541	establish target dates for concluding an investigation and for
542	taking appropriate specified remedial action. The ombudsman may
543	recommend that the division initiate enforcement proceedings in
544	accordance with chapter 120. The department and the ombudsman
545	may take findings of a criminal nature and submit them as
546	evidence to the State Attorneys office, and work with them to
547	bring charges against the alleged parties involved.
548	(4)  To make recommendations to the division for changes in
549	rules and procedures for the filing, investigation, and
550	resolution of complaints filed by unit owners.
551	Section 13.  Section 718.5013, Florida Statutes, is created
552	to read:
553	718.5013  Ombudsman; compensation and expenses.--
554	(1)  All costs and expenses incurred by the Office of the
555	Condominium Ombudsman shall be paid from disbursements from the
556	Division of Florida Land Sales, Condominiums, and Mobile Homes
557	Trust Fund and shall require approval of the Joint Legislative
558	Auditing Committee.
559	(2)  The Joint Legislative Auditing Committee may authorize
560	the ombudsman to employ clerical and technical assistants whose
561	qualifications, duties, and responsibilities the committee shall
562	from time to time prescribe, and to enter into such contracts as
563	necessary. The committee may authorize retention of the services
564	of additional attorneys or experts to the extent that the best
565	interests of the people of the state will be better served
566	thereby, including the retention of expert witnesses and other
567	technical personnel for participation in contested proceedings
568	before the division.
569	Section 14.  Section 718.5014, Florida Statutes, is created
570	to read:
571	718.5014  Ombudsman; location.--The ombudsman shall
572	maintain his or her principal office in Leon County on the
573	premises of the division or, if suitable space cannot be
574	provided there, at such other place convenient to the offices of
575	the division as will enable the ombudsman to expeditiously carry
576	out the duties and functions of his or her office. The ombudsman
577	may establish branch offices upon the concurrence of the Joint
578	Legislative Auditing Committee
579	Section 15.  Section 718.5015, Florida Statutes, is created
580	to read:
581	718.5015  Advisory council; membership functions.--
582	(1)  There is created the Advisory Council on Condominiums.
583	The council shall consist of seven members. Two members shall be
584	appointed by the Speaker of the House of Representatives, two
585	members shall be appointed by the President of the Senate, and
586	three members shall be appointed by the Governor. At least one
587	member shall represent timeshare condominiums. Members shall be
588	appointed to 2-year terms; however, of the initial appointments,
589	one of the members appointed by each of the Governor, the
590	Speaker of the House of Representatives, and the President of
591	the Senate shall be appointed to 1-year terms. In addition to
592	these appointed members, the director of the Division of Florida
593	Land Sales, Condominiums, and Mobile Homes shall serve as an ex
594	officio member of the council. It is the intent of the
595	Legislature that the persons appointed to this council represent
596	a cross-section of persons interested in condominium issues. For
597	administrative purposes, the council shall be located in the
598	Division of Florida Land Sales, Condominiums, and Mobile Homes
599	of the Department of Business and Professional Regulation.
600	Members of the council shall serve without compensation, but
601	shall be entitled to receive per diem and travel expenses
602	pursuant to s. 112.061 while on official business.
603	(2)  The functions of the advisory council shall be to:
604	(a)  Receive input from the public regarding issues of
605	concern with respect to condominiums and to receive
606	recommendations for any changes to be made in the condominium
607	law. The issues that the council shall consider shall include,
608	but shall not be limited to, the rights and responsibilities of
609	the unit owners in relation to the rights and responsibilities
610	of the association.
611	(b)  Review, evaluate, and advise the division concerning
612	revisions and adoption of rules affecting condominiums.
613	(c)  Recommend improvements, if needed, in the education
614	programs offered by the division.
615	(3)  The council is authorized to elect a chair and vice
616	chair and such other offices as it may deem advisable. The
617	council shall meet at the call of its chair, at the request of a
618	majority of its membership, at the request of the division, or
619	at such times as may be prescribed by its rules. A majority of
620	the members of the council shall constitute a quorum for the
621	transaction of all business and the carrying out of the duties
622	of the council.
623	Section 16.  Section 718.504, Florida Statutes, is amended,
624	and subsection (29) is added to said section, to read:
625	718.504  Prospectus or offering circular; "Frequently Asked
626	Questions and Answers".--Every developer of a residential
627	condominium which contains more than 20 residential units, or
628	which is part of a group of residential condominiums which will
629	be served by property to be used in common by unit owners of
630	more than 20 residential units, shall prepare a prospectus or
631	offering circular and file it with the Division of Florida Land
632	Sales, Condominiums, and Mobile Homes prior to entering into an
633	enforceable contract of purchase and sale of any unit or lease
634	of a unit for more than 5 years and shall furnish a copy of the
635	prospectus or offering circular to each buyer. In addition to
636	the prospectus or offering circular, any prospective each buyer
637	from the developer or a current unit owner shall be furnished a
638	separate document page entitled "Frequently Asked Questions and
639	Answers," which shall be in accordance with a format approved by
640	the division and a copy of the financial information required by
641	s. 718.111. This document page shall, in readable language,
642	inform prospective purchasers regarding their voting rights and
643	unit use restrictions, including restrictions on the leasing of
644	a unit; shall indicate whether and in what amount the unit
645	owners or the association is obligated to pay rent or land use
646	fees for recreational or other commonly used facilities; shall
647	contain a statement identifying that amount of assessment which,
648	pursuant to the budget, would be levied upon each unit type,
649	exclusive of any special assessments, and which shall further
650	identify the basis upon which assessments are levied, whether
651	monthly, quarterly, or otherwise; shall state and identify any
652	court cases in which the association is currently a party of
653	record in which the association may face liability in excess of
654	$25,000 or more $100,000; and which shall further state whether
655	membership in a recreational facilities association is
656	mandatory, and if so, shall identify the fees currently charged
657	per unit type. The division shall by rule require such other
658	disclosure as in its judgment will assist prospective
659	purchasers. The prospectus or offering circular may include more
660	than one condominium, although not all such units are being
661	offered for sale as of the date of the prospectus or offering
662	circular. The prospectus or offering circular must contain the
663	following information:
664	(1)  The front cover or the first page must contain only:
665	(a)  The name of the condominium.
666	(b)  The following statements in conspicuous type:
667	1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
668	MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.
669	2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
670	NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
671	ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
672	MATERIALS.
673	3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
674	STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
675	PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
676	REPRESENTATIONS.
677	(2)  Summary: The next page must contain all statements
678	required to be in conspicuous type in the prospectus or offering
679	circular.
680	(3)  A separate index of the contents and exhibits of the
681	prospectus.
682	(4)  Beginning on the first page of the text (not including
683	the summary and index), a description of the condominium,
684	including, but not limited to, the following information:
685	(a)  Its name and location.
686	(b)  A description of the condominium property, including,
687	without limitation:
688	1.  The number of buildings, the number of units in each
689	building, the number of bathrooms and bedrooms in each unit, and
690	the total number of units, if the condominium is not a phase
691	condominium, or the maximum number of buildings that may be
692	contained within the condominium, the minimum and maximum
693	numbers of units in each building, the minimum and maximum
694	numbers of bathrooms and bedrooms that may be contained in each
695	unit, and the maximum number of units that may be contained
696	within the condominium, if the condominium is a phase
697	condominium.
698	2.  The page in the condominium documents where a copy of
699	the plot plan and survey of the condominium is located.
700	3.  The estimated latest date of completion of
701	constructing, finishing, and equipping. In lieu of a date, the
702	description shall include a statement that the estimated date of
703	completion of the condominium is in the purchase agreement and a
704	reference to the article or paragraph containing that
705	information.
706	(c)  The maximum number of units that will use facilities
707	in common with the condominium. If the maximum number of units
708	will vary, a description of the basis for variation and the
709	minimum amount of dollars per unit to be spent for additional
710	recreational facilities or enlargement of such facilities. If
711	the addition or enlargement of facilities will result in a
712	material increase of a unit owner's maintenance expense or
713	rental expense, if any, the maximum increase and limitations
714	thereon shall be stated.
715	(5)(a)  A statement in conspicuous type describing whether
716	the condominium is created and being sold as fee simple
717	interests or as leasehold interests. If the condominium is
718	created or being sold on a leasehold, the location of the lease
719	in the disclosure materials shall be stated.
720	(b)  If timeshare estates are or may be created with
721	respect to any unit in the condominium, a statement in
722	conspicuous type stating that timeshare estates are created and
723	being sold in units in the condominium.
724	(6)  A description of the recreational and other commonly
725	used facilities that will be used only by unit owners of the
726	condominium, including, but not limited to, the following:
727	(a)  Each room and its intended purposes, location,
728	approximate floor area, and capacity in numbers of people.
729	(b)  Each swimming pool, as to its general location,
730	approximate size and depths, approximate deck size and capacity,
731	and whether heated.
732	(c)  Additional facilities, as to the number of each
733	facility, its approximate location, approximate size, and
734	approximate capacity.
735	(d)  A general description of the items of personal
736	property and the approximate number of each item of personal
737	property that the developer is committing to furnish for each
738	room or other facility or, in the alternative, a representation
739	as to the minimum amount of expenditure that will be made to
740	purchase the personal property for the facility.
741	(e)  The estimated date when each room or other facility
742	will be available for use by the unit owners.
743	(f)1.  An identification of each room or other facility to
744	be used by unit owners that will not be owned by the unit owners
745	or the association;
746	2.  A reference to the location in the disclosure materials
747	of the lease or other agreements providing for the use of those
748	facilities; and
749	3.  A description of the terms of the lease or other
750	agreements, including the length of the term; the rent payable,
751	directly or indirectly, by each unit owner, and the total rent
752	payable to the lessor, stated in monthly and annual amounts for
753	the entire term of the lease; and a description of any option to
754	purchase the property leased under any such lease, including the
755	time the option may be exercised, the purchase price or how it
756	is to be determined, the manner of payment, and whether the
757	option may be exercised for a unit owner's share or only as to
758	the entire leased property.
759	(g)  A statement as to whether the developer may provide
760	additional facilities not described above; their general
761	locations and types; improvements or changes that may be made;
762	the approximate dollar amount to be expended; and the maximum
763	additional common expense or cost to the individual unit owners
764	that may be charged during the first annual period of operation
765	of the modified or added facilities.
766
767	Descriptions as to locations, areas, capacities, numbers,
768	volumes, or sizes may be stated as approximations or minimums.
769	(7)  A description of the recreational and other facilities
770	that will be used in common with other condominiums, community
771	associations, or planned developments which require the payment
772	of the maintenance and expenses of such facilities, either
773	directly or indirectly, by the unit owners. The description
774	shall include, but not be limited to, the following:
775	(a)  Each building and facility committed to be built.
776	(b)  Facilities not committed to be built except under
777	certain conditions, and a statement of those conditions or
778	contingencies.
779	(c)  As to each facility committed to be built, or which
780	will be committed to be built upon the happening of one of the
781	conditions in paragraph (b), a statement of whether it will be
782	owned by the unit owners having the use thereof or by an
783	association or other entity which will be controlled by them, or
784	others, and the location in the exhibits of the lease or other
785	document providing for use of those facilities.
786	(d)  The year in which each facility will be available for
787	use by the unit owners or, in the alternative, the maximum
788	number of unit owners in the project at the time each of all of
789	the facilities is committed to be completed.
790	(e)  A general description of the items of personal
791	property, and the approximate number of each item of personal
792	property, that the developer is committing to furnish for each
793	room or other facility or, in the alternative, a representation
794	as to the minimum amount of expenditure that will be made to
795	purchase the personal property for the facility.
796	(f)  If there are leases, a description thereof, including
797	the length of the term, the rent payable, and a description of
798	any option to purchase.
799
800	Descriptions shall include location, areas, capacities, numbers,
801	volumes, or sizes and may be stated as approximations or
802	minimums.
803	(8)  Recreation lease or associated club membership:
804	(a)  If any recreational facilities or other facilities
805	offered by the developer and available to, or to be used by,
806	unit owners are to be leased or have club membership associated,
807	the following statement in conspicuous type shall be included:
808	THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
809	CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
810	CONDOMINIUM. There shall be a reference to the location in the
811	disclosure materials where the recreation lease or club
812	membership is described in detail.
813	(b)  If it is mandatory that unit owners pay a fee, rent,
814	dues, or other charges under a recreational facilities lease or
815	club membership for the use of facilities, there shall be in
816	conspicuous type the applicable statement:
817	1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
818	MANDATORY FOR UNIT OWNERS; or
819	2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
820	TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
821	3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
822	COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
823	REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
824	LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
825	4.  A similar statement of the nature of the organization
826	or the manner in which the use rights are created, and that unit
827	owners are required to pay.
828
829	Immediately following the applicable statement, the location in
830	the disclosure materials where the development is described in
831	detail shall be stated.
832	(c)  If the developer, or any other person other than the
833	unit owners and other persons having use rights in the
834	facilities, reserves, or is entitled to receive, any rent, fee,
835	or other payment for the use of the facilities, then there shall
836	be the following statement in conspicuous type: THE UNIT OWNERS
837	OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
838	RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately
839	following this statement, the location in the disclosure
840	materials where the rent or land use fees are described in
841	detail shall be stated.
842	(d)  If, in any recreation format, whether leasehold, club,
843	or other, any person other than the association has the right to
844	a lien on the units to secure the payment of assessments, rent,
845	or other exactions, there shall appear a statement in
846	conspicuous type in substantially the following form:
847	1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
848	SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
849	RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
850	PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
851	2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
852	SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
853	FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
854	OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE
855	THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
856
857	Immediately following the applicable statement, the location in
858	the disclosure materials where the lien or lien right is
859	described in detail shall be stated.
860	(9)  If the developer or any other person has the right to
861	increase or add to the recreational facilities at any time after
862	the establishment of the condominium whose unit owners have use
863	rights therein, without the consent of the unit owners or
864	associations being required, there shall appear a statement in
865	conspicuous type in substantially the following form:
866	RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
867	OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
868	statement, the location in the disclosure materials where such
869	reserved rights are described shall be stated.
870	(10)  A statement of whether the developer's plan includes
871	a program of leasing units rather than selling them, or leasing
872	units and selling them subject to such leases. If so, there
873	shall be a description of the plan, including the number and
874	identification of the units and the provisions and term of the
875	proposed leases, and a statement in boldfaced type that: THE
876	UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
877	(11)  The arrangements for management of the association
878	and maintenance and operation of the condominium property and of
879	other property that will serve the unit owners of the
880	condominium property, and a description of the management
881	contract and all other contracts for these purposes having a
882	term in excess of 1 year, including the following:
883	(a)  The names of contracting parties.
884	(b)  The term of the contract.
885	(c)  The nature of the services included.
886	(d)  The compensation, stated on a monthly and annual
887	basis, and provisions for increases in the compensation.
888	(e)  A reference to the volumes and pages of the
889	condominium documents and of the exhibits containing copies of
890	such contracts.
891
892	Copies of all described contracts shall be attached as exhibits.
893	If there is a contract for the management of the condominium
894	property, then a statement in conspicuous type in substantially
895	the following form shall appear, identifying the proposed or
896	existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
897	THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
898	CONTRACT MANAGER). Immediately following this statement, the
899	location in the disclosure materials of the contract for
900	management of the condominium property shall be stated.
901	(12)  If the developer or any other person or persons other
902	than the unit owners has the right to retain control of the
903	board of administration of the association for a period of time
904	which can exceed 1 year after the closing of the sale of a
905	majority of the units in that condominium to persons other than
906	successors or alternate developers, then a statement in
907	conspicuous type in substantially the following form shall be
908	included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
909	RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
910	HAVE BEEN SOLD. Immediately following this statement, the
911	location in the disclosure materials where this right to control
912	is described in detail shall be stated.
913	(13)  If there are any restrictions upon the sale,
914	transfer, conveyance, or leasing of a unit, then a statement in
915	conspicuous type in substantially the following form shall be
916	included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
917	CONTROLLED. Immediately following this statement, the location
918	in the disclosure materials where the restriction, limitation,
919	or control on the sale, lease, or transfer of units is described
920	in detail shall be stated.
921	(14)  If the condominium is part of a phase project, the
922	following information shall be stated:
923	(a)  A statement in conspicuous type in substantially the
924	following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND
925	UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following
926	this statement, the location in the disclosure materials where
927	the phasing is described shall be stated.
928	(b)  A summary of the provisions of the declaration which
929	provide for the phasing.
930	(c)  A statement as to whether or not residential buildings
931	and units which are added to the condominium may be
932	substantially different from the residential buildings and units
933	originally in the condominium. If the added residential
934	buildings and units may be substantially different, there shall
935	be a general description of the extent to which such added
936	residential buildings and units may differ, and a statement in
937	conspicuous type in substantially the following form shall be
938	included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM
939	MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
940	UNITS IN THE CONDOMINIUM. Immediately following this statement,
941	the location in the disclosure materials where the extent to
942	which added residential buildings and units may substantially
943	differ is described shall be stated.
944	(d)  A statement of the maximum number of buildings
945	containing units, the maximum and minimum numbers of units in
946	each building, the maximum number of units, and the minimum and
947	maximum square footage of the units that may be contained within
948	each parcel of land which may be added to the condominium.
949	(15)  If a condominium created on or after July 1, 2000, is
950	or may become part of a multicondominium, the following
951	information must be provided:
952	(a)  A statement in conspicuous type in substantially the
953	following form: THIS CONDOMINIUM IS (MAY BE) PART OF A
954	MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
955	(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following
956	this statement, the location in the prospectus or offering
957	circular and its exhibits where the multicondominium aspects of
958	the offering are described must be stated.
959	(b)  A summary of the provisions in the declaration,
960	articles of incorporation, and bylaws which establish and
961	provide for the operation of the multicondominium, including a
962	statement as to whether unit owners in the condominium will have
963	the right to use recreational or other facilities located or
964	planned to be located in other condominiums operated by the same
965	association, and the manner of sharing the common expenses
966	related to such facilities.
967	(c)  A statement of the minimum and maximum number of
968	condominiums, and the minimum and maximum number of units in
969	each of those condominiums, which will or may be operated by the
970	association, and the latest date by which the exact number will
971	be finally determined.
972	(d)  A statement as to whether any of the condominiums in
973	the multicondominium may include units intended to be used for
974	nonresidential purposes and the purpose or purposes permitted
975	for such use.
976	(e)  A general description of the location and approximate
977	acreage of any land on which any additional condominiums to be
978	operated by the association may be located.
979	(16)  If the condominium is created by conversion of
980	existing improvements, the following information shall be
981	stated:
982	(a)  The information required by s. 718.616.
983	(b)  A caveat that there are no express warranties unless
984	they are stated in writing by the developer.
985	(17)  A summary of the restrictions, if any, to be imposed
986	on units concerning the use of any of the condominium property,
987	including statements as to whether there are restrictions upon
988	children and pets, and reference to the volumes and pages of the
989	condominium documents where such restrictions are found, or if
990	such restrictions are contained elsewhere, then a copy of the
991	documents containing the restrictions shall be attached as an
992	exhibit.
993	(18)  If there is any land that is offered by the developer
994	for use by the unit owners and that is neither owned by them nor
995	leased to them, the association, or any entity controlled by
996	unit owners and other persons having the use rights to such
997	land, a statement shall be made as to how such land will serve
998	the condominium. If any part of such land will serve the
999	condominium, the statement shall describe the land and the
1000	nature and term of service, and the declaration or other
1001	instrument creating such servitude shall be included as an
1002	exhibit.
1003	(19)  The manner in which utility and other services,
1004	including, but not limited to, sewage and waste disposal, water
1005	supply, and storm drainage, will be provided and the person or
1006	entity furnishing them.
1007	(20)  An explanation of the manner in which the
1008	apportionment of common expenses and ownership of the common
1009	elements has been determined.
1010	(21)  An estimated operating budget for the condominium and
1011	the association, and a schedule of the unit owner's expenses
1012	shall be attached as an exhibit and shall contain the following
1013	information:
1014	(a)  The estimated monthly and annual expenses of the
1015	condominium and the association that are collected from unit
1016	owners by assessments.
1017	(b)  The estimated monthly and annual expenses of each unit
1018	owner for a unit, other than common expenses paid by all unit
1019	owners, payable by the unit owner to persons or entities other
1020	than the association, as well as to the association, including
1021	fees assessed pursuant to s. 718.113(1) for maintenance of
1022	limited common elements where such costs are shared only by
1023	those entitled to use the limited common element, and the total
1024	estimated monthly and annual expense. There may be excluded from
1025	this estimate expenses which are not provided for or
1026	contemplated by the condominium documents, including, but not
1027	limited to, the costs of private telephone; maintenance of the
1028	interior of condominium units, which is not the obligation of
1029	the association; maid or janitorial services privately
1030	contracted for by the unit owners; utility bills billed directly
1031	to each unit owner for utility services to his or her unit;
1032	insurance premiums other than those incurred for policies
1033	obtained by the condominium; and similar personal expenses of
1034	the unit owner. A unit owner's estimated payments for
1035	assessments shall also be stated in the estimated amounts for
1036	the times when they will be due.
1037	(c)  The estimated items of expenses of the condominium and
1038	the association, except as excluded under paragraph (b),
1039	including, but not limited to, the following items, which shall
1040	be stated either as an association expense collectible by
1041	assessments or as unit owners' expenses payable to persons other
1042	than the association:
1043	1.  Expenses for the association and condominium:
1044	a.  Administration of the association.
1045	b.  Management fees.
1046	c.  Maintenance.
1047	d.  Rent for recreational and other commonly used
1048	facilities.
1049	e.  Taxes upon association property.
1050	f.  Taxes upon leased areas.
1051	g.  Insurance.
1052	h.  Security provisions.
1053	i.  Other expenses.
1054	j.  Operating capital.
1055	k.  Reserves.
1056	l.  Fees payable to the division.
1057	2.  Expenses for a unit owner:
1058	a.  Rent for the unit, if subject to a lease.
1059	b.  Rent payable by the unit owner directly to the lessor
1060	or agent under any recreational lease or lease for the use of
1061	commonly used facilities, which use and payment is a mandatory
1062	condition of ownership and is not included in the common expense
1063	or assessments for common maintenance paid by the unit owners to
1064	the association.
1065	(d)  The estimated amounts shall be stated for a period of
1066	at least 12 months and may distinguish between the period prior
1067	to the time unit owners other than the developer elect a
1068	majority of the board of administration and the period after
1069	that date.
1070	(22)  A schedule of estimated closing expenses to be paid
1071	by a buyer or lessee of a unit and a statement of whether title
1072	opinion or title insurance policy is available to the buyer and,
1073	if so, at whose expense.
1074	(23)  The identity of the developer and the chief operating
1075	officer or principal directing the creation and sale of the
1076	condominium and a statement of its and his or her experience in
1077	this field.
1078	(24)  Copies of the following, to the extent they are
1079	applicable, shall be included as exhibits:
1080	(a)  The declaration of condominium, or the proposed
1081	declaration if the declaration has not been recorded.
1082	(b)  The articles of incorporation creating the
1083	association.
1084	(c)  The bylaws of the association.
1085	(d)  The ground lease or other underlying lease of the
1086	condominium.
1087	(e)  The management agreement and all maintenance and other
1088	contracts for management of the association and operation of the
1089	condominium and facilities used by the unit owners having a
1090	service term in excess of 1 year.
1091	(f)  The estimated operating budget for the condominium and
1092	the required schedule of unit owners' expenses.
1093	(g)  A copy of the floor plan of the unit and the plot plan
1094	showing the location of the residential buildings and the
1095	recreation and other common areas.
1096	(h)  The lease of recreational and other facilities that
1097	will be used only by unit owners of the subject condominium.
1098	(i)  The lease of facilities used by owners and others.
1099	(j)  The form of unit lease, if the offer is of a
1100	leasehold.
1101	(k)  A declaration of servitude of properties serving the
1102	condominium but not owned by unit owners or leased to them or
1103	the association.
1104	(l)  The statement of condition of the existing building or
1105	buildings, if the offering is of units in an operation being
1106	converted to condominium ownership.
1107	(m)  The statement of inspection for termite damage and
1108	treatment of the existing improvements, if the condominium is a
1109	conversion.
1110	(n)  The form of agreement for sale or lease of units.
1111	(o)  A copy of the agreement for escrow of payments made to
1112	the developer prior to closing.
1113	(p)  A copy of the documents containing any restrictions on
1114	use of the property required by subsection (17).
1115	(25)  Any prospectus or offering circular complying, prior
1116	to the effective date of this act, with the provisions of former
1117	ss. 711.69 and 711.802 may continue to be used without amendment
1118	or may be amended to comply with the provisions of this chapter.
1119	(26)  A brief narrative description of the location and
1120	effect of all existing and intended easements located or to be
1121	located on the condominium property other than those described
1122	in the declaration.
1123	(27)  If the developer is required by state or local
1124	authorities to obtain acceptance or approval of any dock or
1125	marina facilities intended to serve the condominium, a copy of
1126	any such acceptance or approval acquired by the time of filing
1127	with the division under s. 718.502(1) or a statement that such
1128	acceptance or approval has not been acquired or received.
1129	(28)  Evidence demonstrating that the developer has an
1130	ownership, leasehold, or contractual interest in the land upon
1131	which the condominium is to be developed.
1132	(29)  Whether the association is currently a party of
1133	record in litigation in which the association may face liability
1134	of $25,000 or more and, if so, the nature and title of that
1135	litigation.
1136	Section 17.  All of the records, personnel, property, and
1137	unexpended balances of appropriations, allocations, or other
1138	funds for the administration of part VIII of chapter 468,
1139	Florida Statutes, shall be transferred by a type two transfer as
1140	defined in s. 20.06(2), Florida Statutes, from the Division of
1141	Professions of the Department of Business and Professional
1142	Regulation to the Division of Florida Land Sales, Condominiums,
1143	and Mobile Homes of the Department of Business and Professional
1144	Regulation.
1145	Section 18.  The Department of Business and Professional
1146	Regulation may continue to prosecute any existing legal
1147	proceedings and related administrative cases that are in
1148	existence on the effective date of this act.
1149	Section 19.  Section 718.510, Florida Statutes, is created
1150	to read:
1151	718.510  Condominium Owners' Bill of Rights.--The division
1152	shall adopt rules to provide for a brochure entitled
1153	"Condominium Owners' Bill of Rights," which shall explain what
1154	rights are afforded to condominium owners and potential
1155	purchasers of condominiums under this chapter. It is the intent
1156	of the Legislature that this brochure be widely distributed and
1157	as conveniently available as possible.
1158	Section 20.  This act shall take effect upon becoming a
1159	law.

CODING: Words stricken are deletions; words underlined are additions.