HB 1223

CS

CHAMBER ACTION

1	The Committee on Business Regulation recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to condominium associations; amending s.
7	718.103, F.S.; defining the term "immediate family
8	member"; amending s. 718.110, F.S.; providing for
9	grandfathering and modification of rental rights;
10	providing for certain application of the amendment of unit
11	owners' rental rights; providing certain voting and
12	approval criteria for amendments depriving owners of
13	certain rights; amending s. 718.112, F.S.; requiring super
14	majority votes to reduce certain required reserves;
15	creating s. 718.1125, F.S.; imposing eligibility
16	restrictions on association members; amending s. 718.116,
17	F.S.; increasing percentage of mortgage debt used as a
18	limit on liability in certain foreclosure actions;
19	requiring notice of intent to record a claim of lien;
20	designating liens inoperative and unenforceable if
21	requirements are not fulfilled; changing priority of
22	claims to which payments for delinquent assessments are
23	made; providing that certain late fees and interest shall
24	not be the sole basis for a lien; providing limitations on
25	recording a claim of lien; providing criminal penalties
26	for willful and malicious imposition, enforcement, or
27	overvaluation of a lien; requiring a super majority board
28	approval for excess funds from a special assessment to be
29	credited against future assessments; creating s. 718.130,
30	F.S.; providing a limitation on certain attorney's fees;
31	amending s. 718.3025, F.S.; requiring additional
32	disclosures for contract validity or enforceability;
33	providing that certain business entities may be contracted
34	by the association to provide certain services if approved
35	by a majority of all unit owners; amending s. 718.3026,
36	F.S.; deleting a provision authorizing associations with
37	fewer than 100 units to opt out of certain products and
38	services contracting requirements; lowering a threshold
39	percentage to require competitive bidding; requiring a
40	minimum number of bids; specifying nonapplication to
41	certain contracts; amending s. 718.501, F.S.; requiring
42	mandatory training for certain board members; creating s.
43	718.5011, F.S.; creating an Office of the Condominium
44	Ombudsman within the Division of Florida Land Sales,
45	Condominiums, and Mobile Homes; providing for the office's
46	independence from the division; authorizing the Joint
47	Legislative Auditing Committee to appoint the ombudsman;
48	requiring the ombudsman to be an attorney; providing for
49	the filling of a vacant ombudsman position; requiring the
50	ombudsman and staff to subscribe to the oath of office
51	required of state officers; prohibiting the ombudsman and
52	staff from engaging in any other profession, serving as a
53	representative or employee of any political party, or
54	receiving remuneration for activities on behalf of
55	political candidates; prohibiting the ombudsman and staff
56	from seeking public office unless resigned from the Office
57	of the Condominium Ombudsman; providing requirements and
58	limitations for office staff; creating s. 718.5012, F.S.;
59	providing for powers and duties of the ombudsman; creating
60	s. 718.5013, F.S.; providing for compensation and expenses
61	for the office; authorizing the ombudsman to employ
62	clerical and technical assistants for certain purposes;
63	creating s. 718.5014, F.S.; providing for the location of
64	the ombudsman's office; creating s. 718.5015, F.S.;
65	creating the Advisory Council on Condominiums; providing
66	for membership, functions, meetings, and offices of the
67	council; amending s. 718.504, F.S.; revising provisions
68	relating to certain prospectus and offering circulars;
69	requiring developers of certain condominiums to provide a
70	prospectus including a "Frequently Asked Questions and
71	Answers" document; requiring the document to contain
72	certain information; reducing the threshold amount to be
73	required to be disclosed in controversy for litigation;
74	requiring certain information to be included in the
75	prospectus or offering circular; providing for a type two
76	transfer of all records, personnel, property, and
77	unexpended balances of appropriations, allocations, or
78	other funds for the administration of pt. VIII of ch. 468,
79	F.S., from the Division of Professions to the Division of
80	Florida Land Sales, Condominiums, and Mobile Homes within
81	the Department of Business and Professional Regulation;
82	preserving the department's authority to pursue certain
83	remedies; creating s. 718.510, F.S.; requiring the
84	creation of a Condominium Owners' Bill of Rights;
85	providing an effective date.
86
87	Be It Enacted by the Legislature of the State of Florida:
88
89	Section 1.  Subsections (18) through (30) of section
90	718.103, Florida Statutes, are renumbered as subsections (19)
91	through (31), respectively, and a new subsection (18) is added
92	to said section, to read:
93	718.103  Definitions.--As used in this chapter, the term:
94	(18)  "Immediate family member" means a parent, child,
95	spouse, sibling, grandparent, grandchild, uncle, aunt, niece,
96	nephew, great-uncle, great-aunt, great-nephew, great-niece,
97	first cousin, or second cousin by blood, marriage, or adoption
98	and includes half and step relatives.
99	Section 2.  Subsection (13) is added to section 718.110,
100	Florida Statutes, to read:
101	718.110  Amendment of declaration; correction of error or
102	omission in declaration by circuit court; grandfathering and
103	modification of certain rights.--
104	(13)(a)  Unless expressly stated in the amendment, any
105	amendment restricting unit owners' rights relating to the rental
106	of units, keeping of pets, or allocation of parking spaces shall
107	apply only to unit owners who purchase their unit after the
108	effective date of that amendment.
109	(b)  Notwithstanding any other provision of law, or of the
110	declaration or bylaws, if an amendment expressly deprives
111	current unit owners of any part of their rights mentioned in
112	subsection (a), it must be approved by at least three-fourths of
113	the voting interests. A declaration or an amendment to a
114	declaration may provide for a higher super majority vote
115	requirement.
116	Section 3.  Paragraph (f) of subsection (2) of section
117	718.112, Florida Statutes, is amended to read:
118	718.112  Bylaws.--
119	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
120	following and, if they do not do so, shall be deemed to include
121	the following:
122	(f)  Annual budget.--
123	1.  The proposed annual budget of common expenses shall be
124	detailed and shall show the amounts budgeted by accounts and
125	expense classifications, including, if applicable, but not
126	limited to, those expenses listed in s. 718.504(21). A
127	multicondominium association shall adopt a separate budget of
128	common expenses for each condominium the association operates
129	and shall adopt a separate budget of common expenses for the
130	association. In addition, if the association maintains limited
131	common elements with the cost to be shared only by those
132	entitled to use the limited common elements as provided for in
133	s. 718.113(1), the budget or a schedule attached thereto shall
134	show amounts budgeted therefor. If, after turnover of control of
135	the association to the unit owners, any of the expenses listed
136	in s. 718.504(21) are not applicable, they need not be listed.
137	2.  In addition to annual operating expenses, the budget
138	shall include reserve accounts for capital expenditures and
139	deferred maintenance. These accounts shall include, but are not
140	limited to, roof replacement, building painting, and pavement
141	resurfacing, regardless of the amount of deferred maintenance
142	expense or replacement cost, and for any other item for which
143	the deferred maintenance expense or replacement cost exceeds
144	$10,000. The amount to be reserved shall be computed by means of
145	a formula which is based upon estimated remaining useful life
146	and estimated replacement cost or deferred maintenance expense
147	of each reserve item. The association may adjust replacement
148	reserve assessments annually to take into account any changes in
149	estimates or extension of the useful life of a reserve item
150	caused by deferred maintenance. This subsection does not apply
151	to an adopted budget in which the members of an association have
152	determined, by a two-thirds majority vote at a duly called
153	meeting of the association, to provide no reserves or less
154	reserves than required by this subsection. However, prior to
155	turnover of control of an association by a developer to unit
156	owners other than a developer pursuant to s. 718.301, the
157	developer may vote to waive the reserves or reduce the funding
158	of reserves for the first 2 fiscal years of the association's
159	operation, beginning with the fiscal year in which the initial
160	declaration is recorded, after which time reserves may be waived
161	or reduced only upon the vote of a majority of all nondeveloper
162	voting interests voting in person or by limited proxy at a duly
163	called meeting of the association. If a meeting of the unit
164	owners has been called to determine whether to waive or reduce
165	the funding of reserves, and no such result is achieved or a
166	quorum is not attained, the reserves as included in the budget
167	shall go into effect. After the turnover, the developer may vote
168	its voting interest to waive or reduce the funding of reserves.
169	3.  Reserve funds and any interest accruing thereon shall
170	remain in the reserve account or accounts, and shall be used
171	only for authorized reserve expenditures unless their use for
172	other purposes is approved in advance by a majority vote at a
173	duly called meeting of the association. Prior to turnover of
174	control of an association by a developer to unit owners other
175	than the developer pursuant to s. 718.301, the developer-
176	controlled association shall not vote to use reserves for
177	purposes other than that for which they were intended without
178	the approval of a majority of all nondeveloper voting interests,
179	voting in person or by limited proxy at a duly called meeting of
180	the association.
181	4.  In a multicondominium association, the only voting
182	interests which are eligible to vote on questions that involve
183	waiving or reducing the funding of reserves, or using existing
184	reserve funds for purposes other than purposes for which the
185	reserves were intended, are the voting interests of the units
186	subject to assessment to fund the reserves in question.
187	Section 4.  Section 718.1125, Florida Statutes, is created
188	to read:
189	718.1125  Board eligibility restrictions.--Notwithstanding
190	any provision of the declaration or bylaws, no one may serve on
191	the board of the same association:
192	(1)  Alongside an immediate family member who is also on
193	that board, except if approved by a majority of the present unit
194	owners voting. If this subsection is violated, the later-elected
195	immediate family member's election shall be deemed void. Good-
196	faith ignorance of such a relationship shall prevent the
197	operation of this subsection, but only until such a relationship
198	is discovered.
199	(2)  Unless actually resident in the condominium for at
200	least 3 months out of the year prior to the annual meeting at
201	which he or she was elected.
202	Section 5.  Paragraphs (b) and (c) of subsection (1),
203	subsection (3), paragraphs (a) and (b) of subsection (5),
204	paragraph (b) of subsection (6), and subsection (10) of section
205	718.116, Florida Statutes, are amended, and paragraph (e) is
206	added to subsection (6) of said section, to read:
207	718.116  Assessments; liability; lien and priority;
208	interest; collection.--
209	(1)
210	(b)  The liability of a first mortgagee or its successor or
211	assignees who acquire title to a unit by foreclosure or by deed
212	in lieu of foreclosure for the unpaid assessments that became
213	due prior to the mortgagee's acquisition of title is limited to
214	the lesser of:
215	1.  The unit's unpaid common expenses and regular periodic
216	assessments which accrued or came due during the 6 months
217	immediately preceding the acquisition of title and for which
218	payment in full has not been received by the association; or
219	2.  Five One percent of the original mortgage debt. The
220	provisions of this paragraph apply only if the first mortgagee
221	joined the association as a defendant in the foreclosure action.
222	Joinder of the association is not required if, on the date the
223	complaint is filed, the association was dissolved or did not
224	maintain an office or agent for service of process at a location
225	which was known to or reasonably discoverable by the mortgagee.
226	(c)  The person acquiring title shall pay the amount owed
227	to the association within 30 days after transfer of title.
228	Failure to pay the full amount when due shall entitle the
229	association to record a claim of lien against the parcel and
230	proceed in the same manner as provided in this section for the
231	collection of unpaid assessments. Such a lien may not be
232	recorded until 30 days after the association posts notice by
233	certified mail to the person acquiring title of its intent to
234	record the lien.
235	(3)  Assessments and installments on them which are not
236	paid when due bear interest at the rate provided in the
237	declaration, from the due date until paid. This rate may not
238	exceed the rate allowed by law, and, if no rate is provided in
239	the declaration, interest shall accrue at the rate of 18 percent
240	per year. Also, if the declaration or bylaws so provide, the
241	association may charge an administrative late fee in addition to
242	such interest, in an amount not to exceed the greater of $25 or
243	5 percent of each installment of the assessment for each
244	delinquent installment that the payment is late. Any payment
245	received by an association shall be applied first to the
246	delinquent assessment, then to any costs and reasonable
247	attorney's fees incurred in collection, then to any interest
248	accrued by the association, and then to any administrative late
249	fee, then to any costs and reasonable attorney's fees incurred
250	in collection, and then to the delinquent assessment. The
251	foregoing shall be applicable notwithstanding any restrictive
252	endorsement, designation, or instruction placed on or
253	accompanying a payment. A late fee shall not be subject to the
254	provisions in chapter 687 or s. 718.303(3).
255	(5)(a)  The association has a lien on each condominium
256	parcel to secure the payment of assessments. No administrative
257	late fee or interest shall be the sole basis for a lien. Except
258	as otherwise provided in subsection (1) and as set forth below,
259	the lien is effective from and shall relate back to the
260	recording of the original declaration of condominium, or, in the
261	case of lien on a parcel located in a phase condominium, the
262	last to occur of the recording of the original declaration or
263	amendment thereto creating the parcel. However, as to first
264	mortgages of record, the lien is effective from and after
265	recording of a claim of lien in the public records of the county
266	in which the condominium parcel is located. Nothing in this
267	subsection shall be construed to bestow upon any lien, mortgage,
268	or certified judgment of record on April 1, 1992, including the
269	lien for unpaid assessments created herein, a priority which, by
270	law, the lien, mortgage, or judgment did not have before that
271	date.
272	(b)  To be valid, a claim of lien must state the
273	description of the condominium parcel, the name of the record
274	owner, the name and address of the association, the amount due,
275	and the due dates. It must be executed and acknowledged by an
276	officer or authorized agent of the association. The claim of
277	lien may not be recorded until 30 days after the association
278	posts notice of its intent to record the claim by certified or
279	registered mail to the record owner or delivers such notice to
280	the record owner by hand. Failure to comply with this
281	requirement renders the claim of lien inoperative and
282	unenforceable until compliance. No such lien shall be effective
283	longer than 1 year after the claim of lien was recorded unless,
284	within that time, an action to enforce the lien is commenced.
285	The 1-year period shall automatically be extended for any length
286	of time during which the association is prevented from filing a
287	foreclosure action by an automatic stay resulting from a
288	bankruptcy petition filed by the parcel owner or any other
289	person claiming an interest in the parcel. The claim of lien
290	shall secure all unpaid assessments which are due and which may
291	accrue subsequent to the recording of the claim of lien and
292	prior to the entry of a certificate of title, as well as
293	interest and all reasonable costs and attorney's fees incurred
294	by the association incident to the collection process. Upon
295	payment in full, the person making the payment is entitled to a
296	satisfaction of the lien.
297	(6)
298	(b)  No foreclosure judgment may be entered until at least
299	30 days after the association gives written notice to the unit
300	owner of its intention to foreclose its lien to collect the
301	unpaid assessments. If this notice is not given at least 30 days
302	before the foreclosure action is filed, and if the unpaid
303	assessments, including those coming due after the claim of lien
304	is recorded, are paid before the entry of a final judgment of
305	foreclosure or money judgment, the association shall not recover
306	attorney's fees or costs. The notice must be given by delivery
307	of a copy of it to the unit owner or by certified or registered
308	mail, return receipt requested, addressed to the unit owner at
309	his or her last known address; and, upon such mailing, the
310	notice shall be deemed to have been given, and the court shall
311	proceed with the foreclosure action and may award attorney's
312	fees and costs as permitted by law. The notice requirements of
313	this subsection are satisfied if the unit owner records a notice
314	of contest of lien as provided in subsection (5). The notice
315	requirements of this subsection do not apply if an action to
316	foreclose a mortgage on the condominium unit is pending before
317	any court; if the rights of the association would be affected by
318	such foreclosure; and if actual, constructive, or substitute
319	service of process has been made on the unit owner.
320	(e)  A board member or officer of an association, or his or
321	her immediate family member, who willfully and maliciously acts
322	to impose, enforce, or increase the overall value of a lien for
323	the payment of assessments with the intent to purchase or assist
324	in the purchase of a condominium unit at foreclosure commits a
325	misdemeanor of the first degree, punishable as provided in s.
326	775.082 or s. 775.083.
327	(10)  The specific purpose or purposes of any special
328	assessment approved in accordance with the condominium documents
329	shall be set forth in a written notice of such assessment sent
330	or delivered to each unit owner. The funds collected pursuant to
331	a special assessment shall be used only for the specific purpose
332	or purposes set forth in such notice. However, upon completion
333	of such specific purpose or purposes, any excess funds will be
334	considered common surplus, and may, at the discretion of the
335	board, either be returned to the unit owners or, upon approval
336	of two-thirds of the board, be applied as a credit toward future
337	assessments.
338	Section 6.  Section 718.130, Florida Statutes, is created
339	to read:
340	718.130  Limitation on attorney's fees.--Notwithstanding
341	any other provision of law, an attorney may not charge in excess
342	of $75 per letter for correspondence, collection efforts,
343	litigation, or other business arising under this chapter.
344	Section 7.  Paragraph (e) of subsection (1) of section
345	718.3025, Florida Statutes, is amended, subsection (4) of said
346	section is renumbered as subsection (5), and a new subsection
347	(4) is added to said section, to read:
348	718.3025  Agreements for operation, maintenance, or
349	management of condominiums; specific requirements.--
350	(1)  No written contract between a party contracting to
351	provide maintenance or management services and an association
352	which contract provides for operation, maintenance, or
353	management of a condominium association or property serving the
354	unit owners of a condominium shall be valid or enforceable
355	unless the contract:
356	(e)  Discloses any financial or ownership interest which
357	the developer, if the developer is in control of the
358	association, any officer of the association, or any member of
359	the board holds with regard to the party contracting to provide
360	maintenance or management services.
361	(4)  A business entity of whom an association's board
362	member or officer or his or her immediate family member is an
363	employee, or in which an association's board member or officer
364	or any or all of his or her immediate family members together
365	hold an ownership interest of 10 percent or more, may be
366	contracted to provide maintenance or management services to that
367	association only if approved by a majority of all unit owners. A
368	contract in violation of this subsection shall be void.
369	Section 8.  Section 718.3026, Florida Statutes, is amended
370	to read:
371	718.3026  Contracts for products and services; in writing;
372	bids; exceptions.--Associations with less than 100 units may opt
373	out of the provisions of this section if two-thirds of the unit
374	owners vote to do so, which opt-out may be accomplished by a
375	proxy specifically setting forth the exception from this
376	section.
377	(1)  All contracts as further described herein or any
378	contract that is not to be fully performed within 1 year after
379	the making thereof, for the purchase, lease, or renting of
380	materials or equipment to be used by the association in
381	accomplishing its purposes under this chapter, and all contracts
382	for the provision of services, shall be in writing. If a
383	contract for the purchase, lease, or renting of materials or
384	equipment, or for the provision of services, requires payment by
385	the association on behalf of any condominium operated by the
386	association in the aggregate that exceeds 2.5 5 percent of the
387	total annual budget of the association, including reserves, the
388	association shall obtain no fewer than three competitive bids
389	for the materials, equipment, or services. Nothing contained
390	herein shall be construed to require the association to accept
391	the lowest bid.
392	(2)(a)1.  Notwithstanding the foregoing, contracts with
393	employees of the association, and contracts for attorney,
394	accountant, architect, community association manager, timeshare
395	management firm, engineering, and landscape architect services
396	are not subject to the provisions of this section.
397	2.  A contract executed before January 1, 1992, and any
398	renewal thereof, is not subject to the competitive bid
399	requirements of this section. If a contract was awarded under
400	the competitive bid procedures of this section, any renewal of
401	that contract is not subject to such competitive bid
402	requirements if the contract contains a provision that allows
403	the board to cancel the contract on 30 days' notice. Materials,
404	equipment, or services provided to a condominium under a local
405	government franchise agreement by a franchise holder are not
406	subject to the competitive bid requirements of this section. A
407	contract with a manager, if made by a competitive bid, may be
408	made for up to 3 years. A condominium whose declaration or
409	bylaws provides for competitive bidding for services may operate
410	under the provisions of that declaration or bylaws in lieu of
411	this section if those provisions are not less stringent than the
412	requirements of this section.
413	(b)  Nothing contained herein is intended to limit the
414	ability of an association to obtain needed products and services
415	in an emergency.
416	(c)  This section shall not apply if the business entity
417	with which the association desires to enter into a contract is
418	the only source of supply within the county serving the
419	association.
420	(d)  Nothing contained herein shall excuse a party
421	contracting to provide maintenance or management services from
422	compliance with s. 718.3025.
423	Section 9.  Paragraph (j) of subsection (1) of section
424	718.501, Florida Statutes, is amended to read:
425	718.501  Powers and duties of Division of Florida Land
426	Sales, Condominiums, and Mobile Homes.--
427	(1)  The Division of Florida Land Sales, Condominiums, and
428	Mobile Homes of the Department of Business and Professional
429	Regulation, referred to as the "division" in this part, in
430	addition to other powers and duties prescribed by chapter 498,
431	has the power to enforce and ensure compliance with the
432	provisions of this chapter and rules promulgated pursuant hereto
433	relating to the development, construction, sale, lease,
434	ownership, operation, and management of residential condominium
435	units. In performing its duties, the division has the following
436	powers and duties:
437	(j)  The division shall provide training programs for
438	condominium association board members and unit owners. Training
439	shall be mandatory for newly elected board members and for
440	members currently serving on a board who have not previously
441	attended training.
442	Section 10.  Section 718.5011, Florida Statutes, is created
443	to read:
444	718.5011  Ombudsman; appointment; oath; restrictions on
445	ombudsman and his or her employees.--
446	(1)  There is created an Office of the Condominium
447	Ombudsman that for administrative purposes shall be located
448	within the Division of Florida Land Sales, Condominiums, and
449	Mobile Homes. However, the office shall be independent of the
450	division.
451	(2)  The Joint Legislative Auditing Committee shall appoint
452	an ombudsman by majority vote of the members of that committee.
453	The ombudsman shall be an attorney admitted to practice before
454	the Florida Supreme Court and shall serve at the pleasure of the
455	Joint Legislative Auditing Committee. Vacancies in the office
456	shall be filled in the same manner as the original appointment.
457	The ombudsman and attorneys under his staff shall take and
458	subscribe to the oath of office required of state officers by
459	the State Constitution. No officer or full-time employee of the
460	ombudsman's office shall actively engage in any other business
461	or profession; serve as the representative of any political
462	party, executive committee, or other governing body thereof;
463	serve as an executive, officer, or employee of any political
464	party, committee, organization, or association; receive
465	remuneration for activities on behalf of any candidate for
466	public office; or engage on behalf of any candidate for public
467	office in the solicitation of votes or other activities on
468	behalf of such candidacy. Neither the ombudsman nor any employee
469	of his or her office shall become a candidate for election to
470	public office unless he or she first resigns from his or her
471	office or employment.
472	Section 11.  Section 718.5012, Florida Statutes, is created
473	to read:
474	718.5012  Ombudsman; powers and duties.--The ombudsman
475	shall have such powers as are necessary to carry out the duties
476	of his or her office, including, but not limited to, the
477	following specific powers:
478	(1)  To have access to and use of all files and records of
479	the division and of all condominium associations, by subpoena if
480	necessary.
481	(2)  To conduct onsite inspections of condominiums,
482	including surprise inspections in accordance with rules
483	providing for such inspections.
484	(3)  To prepare and issue reports, recommendations, and
485	proposed orders to the division, the Governor, the Advisory
486	Council on Condominiums, the President of the Senate, the
487	Speaker of the House of Representatives, and minority leaders of
488	the Senate and the House of Representatives on any matter or
489	subject within the jurisdiction of the division, and to make
490	such recommendations as he or she deems appropriate for
491	legislation relative to division procedures, rules,
492	jurisdiction, personnel, and functions.
493	(4)  To act as liaison between the division and unit
494	owners, and to assist any unit owner in the preparation and
495	filing of a complaint to be investigated by the division. The
496	ombudsman shall establish procedures for receiving complaints.
497	Any complaint deemed valid by the ombudsman and properly falling
498	within the jurisdiction of the division and requiring remedial
499	action shall be identified and promptly filed with the division.
500	Upon the concurrence of the division, the ombudsman shall
501	establish target dates for concluding an investigation and for
502	taking appropriate specified remedial action. The ombudsman may
503	recommend that the division initiate enforcement proceedings in
504	accordance with chapter 120. The department and the ombudsman
505	may take findings of a criminal nature and submit them as
506	evidence to the state attorney's office and work with such
507	office to bring charges against the alleged parties involved.
508	(5)  To monitor, investigate, and review condominium
509	elections and meetings. In addition, the ombudsman shall:
510	(a)  Prove to the division, by clear and convincing
511	evidence, that a member of a condominium board has attempted,
512	engaged in, conspired to engage in, or willfully and knowingly
513	benefited from electoral fraud in order for the division to
514	order such member removed from office. Such an order of removal
515	shall also prohibit such member from running for election to any
516	office of the condominium board in the state for 4 years. If any
517	person is so removed from office twice, such person shall be
518	barred for life from serving on a condominium board. Factual
519	findings forming the basis for an order of removal shall be
520	subject to judicial review only for abuse of discretion.
521	(b)  Jointly, with the division, adopt rules governing
522	removal proceedings. Such rules shall, at a minimum, provide the
523	accused board member with adequate notice, opportunity to be
524	heard, the right to confront and cross-examine witnesses, the
525	right to submit rebuttal evidence, and the right to counsel.
526
527	Neither this subsection nor rules adopted to implement it shall
528	be construed to require provision of counsel or witnesses, or
529	other assistance, at public expense.
530	(6)  To resolve disputes among unit owners by ordering
531	mediation or arbitration in the same manner as the division.
532	(7)  To make recommendations to the division for changes in
533	rules and procedures for the filing, investigation, and
534	resolution of complaints filed by unit owners.
535	Section 12.  Section 718.5013, Florida Statutes, is created
536	to read:
537	718.5013  Ombudsman; compensation and expenses.--
538	(1)  All costs and expenses incurred by the Office of the
539	Condominium Ombudsman shall be paid from disbursements from the
540	Division of Florida Land Sales, Condominiums, and Mobile Homes
541	Trust Fund and shall require approval of the Joint Legislative
542	Auditing Committee.
543	(2)  The Joint Legislative Auditing Committee may authorize
544	the ombudsman to employ clerical and technical assistants whose
545	qualifications, duties, and responsibilities the committee shall
546	from time to time prescribe, and to enter into such contracts as
547	necessary. The committee may authorize retention of the services
548	of additional attorneys or experts to the extent that the best
549	interests of the people of the state will be better served
550	thereby, including the retention of expert witnesses and other
551	technical personnel for participation in contested proceedings
552	before the division.
553	Section 13.  Section 718.5014, Florida Statutes, is created
554	to read:
555	718.5014  Ombudsman; location.--The ombudsman shall
556	maintain his or her principal office in Leon County on the
557	premises of the division or, if suitable space cannot be
558	provided there, at such other place convenient to the offices of
559	the division as will enable the ombudsman to expeditiously carry
560	out the duties and functions of his or her office. The ombudsman
561	may establish branch offices upon the concurrence of the Joint
562	Legislative Auditing Committee
563	Section 14.  Section 718.5015, Florida Statutes, is created
564	to read:
565	718.5015  Advisory council; membership functions.--
566	(1)  There is created the Advisory Council on Condominiums.
567	The council shall consist of seven members. Two members shall be
568	appointed by the Speaker of the House of Representatives, two
569	members shall be appointed by the President of the Senate, and
570	three members shall be appointed by the Governor. At least one
571	member shall represent timeshare condominiums. Members shall be
572	appointed to 2-year terms; however, of the initial appointments,
573	one of the members appointed by each of the Governor, the
574	Speaker of the House of Representatives, and the President of
575	the Senate shall be appointed to 1-year terms. In addition to
576	these appointed members, the director of the Division of Florida
577	Land Sales, Condominiums, and Mobile Homes shall serve as an ex
578	officio member of the council. It is the intent of the
579	Legislature that the persons appointed to this council represent
580	a cross-section of persons interested in condominium issues. For
581	administrative purposes, the council shall be located in the
582	Division of Florida Land Sales, Condominiums, and Mobile Homes
583	of the Department of Business and Professional Regulation.
584	Members of the council shall serve without compensation, but
585	shall be entitled to receive per diem and travel expenses
586	pursuant to s. 112.061 while on official business.
587	(2)  The functions of the advisory council shall be to:
588	(a)  Receive input from the public regarding issues of
589	concern with respect to condominiums and to receive
590	recommendations for any changes to be made in the condominium
591	law. The issues that the council shall consider shall include,
592	but shall not be limited to, the rights and responsibilities of
593	the unit owners in relation to the rights and responsibilities
594	of the association.
595	(b)  Review, evaluate, and advise the division concerning
596	revisions and adoption of rules affecting condominiums.
597	(c)  Recommend improvements, if needed, in the education
598	programs offered by the division.
599	(3)  The council is authorized to elect a chair and vice
600	chair and such other offices as it may deem advisable. The
601	council shall meet at the call of its chair, at the request of a
602	majority of its membership, at the request of the division, or
603	at such times as may be prescribed by its rules. A majority of
604	the members of the council shall constitute a quorum for the
605	transaction of all business and the carrying out of the duties
606	of the council.
607	Section 15.  Section 718.504, Florida Statutes, is amended
608	to read:
609	718.504  Prospectus or offering circular; "Frequently Asked
610	Questions and Answers".--Every developer of a residential
611	condominium which contains more than 20 residential units, or
612	which is part of a group of residential condominiums which will
613	be served by property to be used in common by unit owners of
614	more than 20 residential units, shall prepare a prospectus or
615	offering circular and file it with the Division of Florida Land
616	Sales, Condominiums, and Mobile Homes prior to entering into an
617	enforceable contract of purchase and sale of any unit or lease
618	of a unit for more than 5 years and shall furnish a copy of the
619	prospectus or offering circular to each buyer. In addition to
620	the prospectus or offering circular, any prospective each buyer
621	from the developer or a current unit owner shall be furnished a
622	separate document page entitled "Frequently Asked Questions and
623	Answers," which shall be in accordance with a format approved by
624	the division and a copy of the financial information required by
625	s. 718.111. This document page shall, in readable language,
626	inform prospective purchasers regarding their voting rights and
627	unit use restrictions, including restrictions on the leasing of
628	a unit; shall indicate whether and in what amount the unit
629	owners or the association is obligated to pay rent or land use
630	fees for recreational or other commonly used facilities; shall
631	contain a statement identifying that amount of assessment which,
632	pursuant to the budget, would be levied upon each unit type,
633	exclusive of any special assessments, and which shall further
634	identify the basis upon which assessments are levied, whether
635	monthly, quarterly, or otherwise; shall state and identify any
636	court cases in which the association is currently a party of
637	record in which the association may face liability in excess of
638	$25,000 or more $100,000; and which shall further state whether
639	membership in a recreational facilities association is
640	mandatory, and if so, shall identify the fees currently charged
641	per unit type. The division shall by rule require such other
642	disclosure as in its judgment will assist prospective
643	purchasers. The prospectus or offering circular may include more
644	than one condominium, although not all such units are being
645	offered for sale as of the date of the prospectus or offering
646	circular. The prospectus or offering circular must contain the
647	following information:
648	(1)  The front cover or the first page must contain only:
649	(a)  The name of the condominium.
650	(b)  The following statements in conspicuous type:
651	1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
652	MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.
653	2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
654	NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
655	ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
656	MATERIALS.
657	3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
658	STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
659	PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
660	REPRESENTATIONS.
661	(2)  Summary: The next page must contain all statements
662	required to be in conspicuous type in the prospectus or offering
663	circular.
664	(3)  A separate index of the contents and exhibits of the
665	prospectus.
666	(4)  Beginning on the first page of the text (not including
667	the summary and index), a description of the condominium,
668	including, but not limited to, the following information:
669	(a)  Its name and location.
670	(b)  A description of the condominium property, including,
671	without limitation:
672	1.  The number of buildings, the number of units in each
673	building, the number of bathrooms and bedrooms in each unit, and
674	the total number of units, if the condominium is not a phase
675	condominium, or the maximum number of buildings that may be
676	contained within the condominium, the minimum and maximum
677	numbers of units in each building, the minimum and maximum
678	numbers of bathrooms and bedrooms that may be contained in each
679	unit, and the maximum number of units that may be contained
680	within the condominium, if the condominium is a phase
681	condominium.
682	2.  The page in the condominium documents where a copy of
683	the plot plan and survey of the condominium is located.
684	3.  The estimated latest date of completion of
685	constructing, finishing, and equipping. In lieu of a date, the
686	description shall include a statement that the estimated date of
687	completion of the condominium is in the purchase agreement and a
688	reference to the article or paragraph containing that
689	information.
690	(c)  The maximum number of units that will use facilities
691	in common with the condominium. If the maximum number of units
692	will vary, a description of the basis for variation and the
693	minimum amount of dollars per unit to be spent for additional
694	recreational facilities or enlargement of such facilities. If
695	the addition or enlargement of facilities will result in a
696	material increase of a unit owner's maintenance expense or
697	rental expense, if any, the maximum increase and limitations
698	thereon shall be stated.
699	(5)(a)  A statement in conspicuous type describing whether
700	the condominium is created and being sold as fee simple
701	interests or as leasehold interests. If the condominium is
702	created or being sold on a leasehold, the location of the lease
703	in the disclosure materials shall be stated.
704	(b)  If timeshare estates are or may be created with
705	respect to any unit in the condominium, a statement in
706	conspicuous type stating that timeshare estates are created and
707	being sold in units in the condominium.
708	(6)  A description of the recreational and other commonly
709	used facilities that will be used only by unit owners of the
710	condominium, including, but not limited to, the following:
711	(a)  Each room and its intended purposes, location,
712	approximate floor area, and capacity in numbers of people.
713	(b)  Each swimming pool, as to its general location,
714	approximate size and depths, approximate deck size and capacity,
715	and whether heated.
716	(c)  Additional facilities, as to the number of each
717	facility, its approximate location, approximate size, and
718	approximate capacity.
719	(d)  A general description of the items of personal
720	property and the approximate number of each item of personal
721	property that the developer is committing to furnish for each
722	room or other facility or, in the alternative, a representation
723	as to the minimum amount of expenditure that will be made to
724	purchase the personal property for the facility.
725	(e)  The estimated date when each room or other facility
726	will be available for use by the unit owners.
727	(f)1.  An identification of each room or other facility to
728	be used by unit owners that will not be owned by the unit owners
729	or the association;
730	2.  A reference to the location in the disclosure materials
731	of the lease or other agreements providing for the use of those
732	facilities; and
733	3.  A description of the terms of the lease or other
734	agreements, including the length of the term; the rent payable,
735	directly or indirectly, by each unit owner, and the total rent
736	payable to the lessor, stated in monthly and annual amounts for
737	the entire term of the lease; and a description of any option to
738	purchase the property leased under any such lease, including the
739	time the option may be exercised, the purchase price or how it
740	is to be determined, the manner of payment, and whether the
741	option may be exercised for a unit owner's share or only as to
742	the entire leased property.
743	(g)  A statement as to whether the developer may provide
744	additional facilities not described above; their general
745	locations and types; improvements or changes that may be made;
746	the approximate dollar amount to be expended; and the maximum
747	additional common expense or cost to the individual unit owners
748	that may be charged during the first annual period of operation
749	of the modified or added facilities.
750
751	Descriptions as to locations, areas, capacities, numbers,
752	volumes, or sizes may be stated as approximations or minimums.
753	(7)  A description of the recreational and other facilities
754	that will be used in common with other condominiums, community
755	associations, or planned developments which require the payment
756	of the maintenance and expenses of such facilities, either
757	directly or indirectly, by the unit owners. The description
758	shall include, but not be limited to, the following:
759	(a)  Each building and facility committed to be built.
760	(b)  Facilities not committed to be built except under
761	certain conditions, and a statement of those conditions or
762	contingencies.
763	(c)  As to each facility committed to be built, or which
764	will be committed to be built upon the happening of one of the
765	conditions in paragraph (b), a statement of whether it will be
766	owned by the unit owners having the use thereof or by an
767	association or other entity which will be controlled by them, or
768	others, and the location in the exhibits of the lease or other
769	document providing for use of those facilities.
770	(d)  The year in which each facility will be available for
771	use by the unit owners or, in the alternative, the maximum
772	number of unit owners in the project at the time each of all of
773	the facilities is committed to be completed.
774	(e)  A general description of the items of personal
775	property, and the approximate number of each item of personal
776	property, that the developer is committing to furnish for each
777	room or other facility or, in the alternative, a representation
778	as to the minimum amount of expenditure that will be made to
779	purchase the personal property for the facility.
780	(f)  If there are leases, a description thereof, including
781	the length of the term, the rent payable, and a description of
782	any option to purchase.
783
784	Descriptions shall include location, areas, capacities, numbers,
785	volumes, or sizes and may be stated as approximations or
786	minimums.
787	(8)  Recreation lease or associated club membership:
788	(a)  If any recreational facilities or other facilities
789	offered by the developer and available to, or to be used by,
790	unit owners are to be leased or have club membership associated,
791	the following statement in conspicuous type shall be included:
792	THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
793	CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
794	CONDOMINIUM. There shall be a reference to the location in the
795	disclosure materials where the recreation lease or club
796	membership is described in detail.
797	(b)  If it is mandatory that unit owners pay a fee, rent,
798	dues, or other charges under a recreational facilities lease or
799	club membership for the use of facilities, there shall be in
800	conspicuous type the applicable statement:
801	1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
802	MANDATORY FOR UNIT OWNERS; or
803	2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
804	TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
805	3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
806	COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
807	REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
808	LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
809	4.  A similar statement of the nature of the organization
810	or the manner in which the use rights are created, and that unit
811	owners are required to pay.
812
813	Immediately following the applicable statement, the location in
814	the disclosure materials where the development is described in
815	detail shall be stated.
816	(c)  If the developer, or any other person other than the
817	unit owners and other persons having use rights in the
818	facilities, reserves, or is entitled to receive, any rent, fee,
819	or other payment for the use of the facilities, then there shall
820	be the following statement in conspicuous type: THE UNIT OWNERS
821	OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
822	RECREATIONAL OR OTHER COMMONLY USED FACILITIES. Immediately
823	following this statement, the location in the disclosure
824	materials where the rent or land use fees are described in
825	detail shall be stated.
826	(d)  If, in any recreation format, whether leasehold, club,
827	or other, any person other than the association has the right to
828	a lien on the units to secure the payment of assessments, rent,
829	or other exactions, there shall appear a statement in
830	conspicuous type in substantially the following form:
831	1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
832	SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
833	RECREATION LEASE. THE UNIT OWNER'S FAILURE TO MAKE THESE
834	PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
835	2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
836	SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
837	FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
838	OR COMMONLY USED FACILITIES. THE UNIT OWNER'S FAILURE TO MAKE
839	THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
840
841	Immediately following the applicable statement, the location in
842	the disclosure materials where the lien or lien right is
843	described in detail shall be stated.
844	(9)  If the developer or any other person has the right to
845	increase or add to the recreational facilities at any time after
846	the establishment of the condominium whose unit owners have use
847	rights therein, without the consent of the unit owners or
848	associations being required, there shall appear a statement in
849	conspicuous type in substantially the following form:
850	RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
851	OF UNIT OWNERS OR THE ASSOCIATION(S). Immediately following this
852	statement, the location in the disclosure materials where such
853	reserved rights are described shall be stated.
854	(10)  A statement of whether the developer's plan includes
855	a program of leasing units rather than selling them, or leasing
856	units and selling them subject to such leases. If so, there
857	shall be a description of the plan, including the number and
858	identification of the units and the provisions and term of the
859	proposed leases, and a statement in boldfaced type that: THE
860	UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
861	(11)  The arrangements for management of the association
862	and maintenance and operation of the condominium property and of
863	other property that will serve the unit owners of the
864	condominium property, and a description of the management
865	contract and all other contracts for these purposes having a
866	term in excess of 1 year, including the following:
867	(a)  The names of contracting parties.
868	(b)  The term of the contract.
869	(c)  The nature of the services included.
870	(d)  The compensation, stated on a monthly and annual
871	basis, and provisions for increases in the compensation.
872	(e)  A reference to the volumes and pages of the
873	condominium documents and of the exhibits containing copies of
874	such contracts.
875
876	Copies of all described contracts shall be attached as exhibits.
877	If there is a contract for the management of the condominium
878	property, then a statement in conspicuous type in substantially
879	the following form shall appear, identifying the proposed or
880	existing contract manager: THERE IS (IS TO BE) A CONTRACT FOR
881	THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
882	CONTRACT MANAGER). Immediately following this statement, the
883	location in the disclosure materials of the contract for
884	management of the condominium property shall be stated.
885	(12)  If the developer or any other person or persons other
886	than the unit owners has the right to retain control of the
887	board of administration of the association for a period of time
888	which can exceed 1 year after the closing of the sale of a
889	majority of the units in that condominium to persons other than
890	successors or alternate developers, then a statement in
891	conspicuous type in substantially the following form shall be
892	included: THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
893	RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
894	HAVE BEEN SOLD. Immediately following this statement, the
895	location in the disclosure materials where this right to control
896	is described in detail shall be stated.
897	(13)  If there are any restrictions upon the sale,
898	transfer, conveyance, or leasing of a unit, then a statement in
899	conspicuous type in substantially the following form shall be
900	included: THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED OR
901	CONTROLLED. Immediately following this statement, the location
902	in the disclosure materials where the restriction, limitation,
903	or control on the sale, lease, or transfer of units is described
904	in detail shall be stated.
905	(14)  If the condominium is part of a phase project, the
906	following information shall be stated:
907	(a)  A statement in conspicuous type in substantially the
908	following form: THIS IS A PHASE CONDOMINIUM. ADDITIONAL LAND AND
909	UNITS MAY BE ADDED TO THIS CONDOMINIUM. Immediately following
910	this statement, the location in the disclosure materials where
911	the phasing is described shall be stated.
912	(b)  A summary of the provisions of the declaration which
913	provide for the phasing.
914	(c)  A statement as to whether or not residential buildings
915	and units which are added to the condominium may be
916	substantially different from the residential buildings and units
917	originally in the condominium. If the added residential
918	buildings and units may be substantially different, there shall
919	be a general description of the extent to which such added
920	residential buildings and units may differ, and a statement in
921	conspicuous type in substantially the following form shall be
922	included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM
923	MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
924	UNITS IN THE CONDOMINIUM. Immediately following this statement,
925	the location in the disclosure materials where the extent to
926	which added residential buildings and units may substantially
927	differ is described shall be stated.
928	(d)  A statement of the maximum number of buildings
929	containing units, the maximum and minimum numbers of units in
930	each building, the maximum number of units, and the minimum and
931	maximum square footage of the units that may be contained within
932	each parcel of land which may be added to the condominium.
933	(15)  If a condominium created on or after July 1, 2000, is
934	or may become part of a multicondominium, the following
935	information must be provided:
936	(a)  A statement in conspicuous type in substantially the
937	following form: THIS CONDOMINIUM IS (MAY BE) PART OF A
938	MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
939	(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following
940	this statement, the location in the prospectus or offering
941	circular and its exhibits where the multicondominium aspects of
942	the offering are described must be stated.
943	(b)  A summary of the provisions in the declaration,
944	articles of incorporation, and bylaws which establish and
945	provide for the operation of the multicondominium, including a
946	statement as to whether unit owners in the condominium will have
947	the right to use recreational or other facilities located or
948	planned to be located in other condominiums operated by the same
949	association, and the manner of sharing the common expenses
950	related to such facilities.
951	(c)  A statement of the minimum and maximum number of
952	condominiums, and the minimum and maximum number of units in
953	each of those condominiums, which will or may be operated by the
954	association, and the latest date by which the exact number will
955	be finally determined.
956	(d)  A statement as to whether any of the condominiums in
957	the multicondominium may include units intended to be used for
958	nonresidential purposes and the purpose or purposes permitted
959	for such use.
960	(e)  A general description of the location and approximate
961	acreage of any land on which any additional condominiums to be
962	operated by the association may be located.
963	(16)  If the condominium is created by conversion of
964	existing improvements, the following information shall be
965	stated:
966	(a)  The information required by s. 718.616.
967	(b)  A caveat that there are no express warranties unless
968	they are stated in writing by the developer.
969	(17)  A summary of the restrictions, if any, to be imposed
970	on units concerning the use of any of the condominium property,
971	including statements as to whether there are restrictions upon
972	children and pets, and reference to the volumes and pages of the
973	condominium documents where such restrictions are found, or if
974	such restrictions are contained elsewhere, then a copy of the
975	documents containing the restrictions shall be attached as an
976	exhibit.
977	(18)  If there is any land that is offered by the developer
978	for use by the unit owners and that is neither owned by them nor
979	leased to them, the association, or any entity controlled by
980	unit owners and other persons having the use rights to such
981	land, a statement shall be made as to how such land will serve
982	the condominium. If any part of such land will serve the
983	condominium, the statement shall describe the land and the
984	nature and term of service, and the declaration or other
985	instrument creating such servitude shall be included as an
986	exhibit.
987	(19)  The manner in which utility and other services,
988	including, but not limited to, sewage and waste disposal, water
989	supply, and storm drainage, will be provided and the person or
990	entity furnishing them.
991	(20)  An explanation of the manner in which the
992	apportionment of common expenses and ownership of the common
993	elements has been determined.
994	(21)  An estimated operating budget for the condominium and
995	the association, and a schedule of the unit owner's expenses
996	shall be attached as an exhibit and shall contain the following
997	information:
998	(a)  The estimated monthly and annual expenses of the
999	condominium and the association that are collected from unit
1000	owners by assessments.
1001	(b)  The estimated monthly and annual expenses of each unit
1002	owner for a unit, other than common expenses paid by all unit
1003	owners, payable by the unit owner to persons or entities other
1004	than the association, as well as to the association, including
1005	fees assessed pursuant to s. 718.113(1) for maintenance of
1006	limited common elements where such costs are shared only by
1007	those entitled to use the limited common element, and the total
1008	estimated monthly and annual expense. There may be excluded from
1009	this estimate expenses which are not provided for or
1010	contemplated by the condominium documents, including, but not
1011	limited to, the costs of private telephone; maintenance of the
1012	interior of condominium units, which is not the obligation of
1013	the association; maid or janitorial services privately
1014	contracted for by the unit owners; utility bills billed directly
1015	to each unit owner for utility services to his or her unit;
1016	insurance premiums other than those incurred for policies
1017	obtained by the condominium; and similar personal expenses of
1018	the unit owner. A unit owner's estimated payments for
1019	assessments shall also be stated in the estimated amounts for
1020	the times when they will be due.
1021	(c)  The estimated items of expenses of the condominium and
1022	the association, except as excluded under paragraph (b),
1023	including, but not limited to, the following items, which shall
1024	be stated either as an association expense collectible by
1025	assessments or as unit owners' expenses payable to persons other
1026	than the association:
1027	1.  Expenses for the association and condominium:
1028	a.  Administration of the association.
1029	b.  Management fees.
1030	c.  Maintenance.
1031	d.  Rent for recreational and other commonly used
1032	facilities.
1033	e.  Taxes upon association property.
1034	f.  Taxes upon leased areas.
1035	g.  Insurance.
1036	h.  Security provisions.
1037	i.  Other expenses.
1038	j.  Operating capital.
1039	k.  Reserves.
1040	l.  Fees payable to the division.
1041	2.  Expenses for a unit owner:
1042	a.  Rent for the unit, if subject to a lease.
1043	b.  Rent payable by the unit owner directly to the lessor
1044	or agent under any recreational lease or lease for the use of
1045	commonly used facilities, which use and payment is a mandatory
1046	condition of ownership and is not included in the common expense
1047	or assessments for common maintenance paid by the unit owners to
1048	the association.
1049	(d)  The estimated amounts shall be stated for a period of
1050	at least 12 months and may distinguish between the period prior
1051	to the time unit owners other than the developer elect a
1052	majority of the board of administration and the period after
1053	that date.
1054	(22)  A schedule of estimated closing expenses to be paid
1055	by a buyer or lessee of a unit and a statement of whether title
1056	opinion or title insurance policy is available to the buyer and,
1057	if so, at whose expense.
1058	(23)  The identity of the developer and the chief operating
1059	officer or principal directing the creation and sale of the
1060	condominium and a statement of its and his or her experience in
1061	this field.
1062	(24)  Copies of the following, to the extent they are
1063	applicable, shall be included as exhibits:
1064	(a)  The declaration of condominium, or the proposed
1065	declaration if the declaration has not been recorded.
1066	(b)  The articles of incorporation creating the
1067	association.
1068	(c)  The bylaws of the association.
1069	(d)  The ground lease or other underlying lease of the
1070	condominium.
1071	(e)  The management agreement and all maintenance and other
1072	contracts for management of the association and operation of the
1073	condominium and facilities used by the unit owners having a
1074	service term in excess of 1 year.
1075	(f)  The estimated operating budget for the condominium and
1076	the required schedule of unit owners' expenses.
1077	(g)  A copy of the floor plan of the unit and the plot plan
1078	showing the location of the residential buildings and the
1079	recreation and other common areas.
1080	(h)  The lease of recreational and other facilities that
1081	will be used only by unit owners of the subject condominium.
1082	(i)  The lease of facilities used by owners and others.
1083	(j)  The form of unit lease, if the offer is of a
1084	leasehold.
1085	(k)  A declaration of servitude of properties serving the
1086	condominium but not owned by unit owners or leased to them or
1087	the association.
1088	(l)  The statement of condition of the existing building or
1089	buildings, if the offering is of units in an operation being
1090	converted to condominium ownership.
1091	(m)  The statement of inspection for termite damage and
1092	treatment of the existing improvements, if the condominium is a
1093	conversion.
1094	(n)  The form of agreement for sale or lease of units.
1095	(o)  A copy of the agreement for escrow of payments made to
1096	the developer prior to closing.
1097	(p)  A copy of the documents containing any restrictions on
1098	use of the property required by subsection (17).
1099	(25)  Any prospectus or offering circular complying, prior
1100	to the effective date of this act, with the provisions of former
1101	ss. 711.69 and 711.802 may continue to be used without amendment
1102	or may be amended to comply with the provisions of this chapter.
1103	(26)  A brief narrative description of the location and
1104	effect of all existing and intended easements located or to be
1105	located on the condominium property other than those described
1106	in the declaration.
1107	(27)  If the developer is required by state or local
1108	authorities to obtain acceptance or approval of any dock or
1109	marina facilities intended to serve the condominium, a copy of
1110	any such acceptance or approval acquired by the time of filing
1111	with the division under s. 718.502(1) or a statement that such
1112	acceptance or approval has not been acquired or received.
1113	(28)  Evidence demonstrating that the developer has an
1114	ownership, leasehold, or contractual interest in the land upon
1115	which the condominium is to be developed.
1116	(29)  Whether the association is currently a party of
1117	record in litigation in which the association may face liability
1118	of $25,000 or more and, if so, the nature and title of that
1119	litigation.
1120	Section 16.  All of the records, personnel, property, and
1121	unexpended balances of appropriations, allocations, or other
1122	funds for the administration of part VIII of chapter 468,
1123	Florida Statutes, shall be transferred by a type two transfer as
1124	defined in s. 20.06(2), Florida Statutes, from the Division of
1125	Professions of the Department of Business and Professional
1126	Regulation to the Division of Florida Land Sales, Condominiums,
1127	and Mobile Homes of the Department of Business and Professional
1128	Regulation.
1129	Section 17.  The Department of Business and Professional
1130	Regulation may continue to prosecute any existing legal
1131	proceedings and related administrative cases that are in
1132	existence on the effective date of this act.
1133	Section 18.  Section 718.510, Florida Statutes, is created
1134	to read:
1135	718.510  Condominium Owners' Bill of Rights.--The division
1136	shall adopt rules to provide for a brochure entitled
1137	"Condominium Owners' Bill of Rights," which shall explain what
1138	rights are afforded to condominium owners and potential
1139	purchasers of condominiums under this chapter. It is the intent
1140	of the Legislature that this brochure be widely distributed and
1141	as conveniently available as possible.
1142	Section 19.  This act shall take effect upon becoming a
1143	law.

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