HB 1223

CS

CHAMBER ACTION

1	The Committee on Appropriations 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	718.110, F.S.; providing for grandfathering and
8	modification of certain rights of a unit owner; providing
9	for certain application of the amendment of unit owner's
10	rental rights; requiring certain voting and approval
11	criteria for amendments depriving owners of certain
12	rights; creating s. 718.5011, F.S.; creating the Office of
13	the Condominium Ombudsman within the Division of Florida
14	Land Sales, Condominiums, and Mobile Homes; requiring the
15	division to fund the office; requiring the Department of
16	Business and Professional Regulation to provide
17	administrative support and service to the office;
18	authorizing the Governor to appoint the ombudsman;
19	requiring the ombudsman to be an attorney admitted to
20	practice before the Florida Supreme Court; providing for
21	the filling of vacancies in the office; requiring the
22	ombudsman and staff to subscribe to the oath of office
23	required of state officers; prohibiting an officer or
24	full-time employee of the office from engaging in any
25	other profession, serving as a representative or employee
26	of any political party, or receiving remuneration for
27	activities on behalf of political candidates; prohibiting
28	the ombudsman and his or her staff from seeking public
29	office unless resigned from the office; creating s.
30	718.5012, F.S.; granting certain powers and duties to the
31	ombudsman; authorizing the ombudsman to adopt and
32	administer a personnel classification system and pay plan
33	for office employees with the approval of the Office of
34	the Governor; authorizing the division to remove a member
35	of a condominium board under certain circumstances;
36	authorizing the division, in consultation with the
37	ombudsman, to adopt rules with respect to such removal;
38	providing that the ombudsman is not required to provide
39	counsel or witnesses, or other assistance, at public
40	expense; creating s. 718.5014, F.S.; providing for the
41	location of the ombudsman's office; creating s. 718.5015,
42	F.S.; creating the Advisory Council on Condominiums;
43	providing for appointments by the President of the Senate,
44	the Speaker of the House of Representatives, and the
45	Governor; providing limited compensation; providing for
46	membership, functions, terms of service, meetings, and
47	offices of the advisory council; amending s. 718.504,
48	F.S.; providing certain prospective unit buyers with a
49	separate document, rather than a separate page, of
50	frequently asked questions and answers; reducing the
51	threshold amount to be required to be disclosed in
52	controversy for litigation; preserving the department's
53	authority to pursue certain remedies; providing an
54	appropriation; providing an effective date.
55
56	Be It Enacted by the Legislature of the State of Florida:
57
58	Section 1.  Subsection (13) is added to section 718.110,
59	Florida Statutes, to read:
60	718.110  Amendment of declaration; correction of error or
61	omission in declaration by circuit court; grandfathering and
62	modification of certain rights.--
63	(13)(a)  Unless expressly stated in the amendment, any
64	amendment restricting unit owners' rights relating to the rental
65	of units, or keeping of pets, shall apply only to unit owners
66	who purchase their unit after the effective date of that
67	amendment.
68	(b)  Notwithstanding any other provision of law, or of the
69	declaration or bylaws, an amendment that expressly deprives
70	current unit owners of any part of their rights specified in
71	paragraph (a) must be approved by at least a majority of the
72	voting interests. A declaration or an amendment to a declaration
73	may require approval by a greater than super majority vote.
74	Section 2.  Section 718.5011, Florida Statutes, is created
75	to read:
76	718.5011  Ombudsman; appointment; oath; restrictions on
77	ombudsman and his or her employees.--
78	(1)  There is created an Office of the Condominium
79	Ombudsman. The office is, for administrative purposes, within
80	the Division of Florida Land Sales, Condominiums, and Mobile
81	Homes but shall remain independent of the division. The office
82	shall be a separate budget entity, funded by the Division of
83	Florida Land Sales, Condominiums, and Mobile Homes Trust Fund,
84	and the ombudsman shall be the agency head for all purposes. The
85	Department of Business and Professional Regulation shall provide
86	administrative support and service to the ombudsman, but the
87	ombudsman shall not be subject to the control, supervision, or
88	direction of the department. The ombudsman shall develop a
89	budget pursuant to chapter 216 which the department shall
90	submit, without change, to the Governor along with the budget of
91	the department.
92	(2)  The Governor shall appoint the ombudsman. The
93	ombudsman must be an attorney admitted to practice before the
94	Florida Supreme Court and shall serve at the pleasure of the
95	Governor. Vacancies in the office shall be filled in the same
96	manner as the original appointment. The ombudsman and attorneys
97	serving as staff shall take and subscribe to the oath of office
98	required of state officers by the State Constitution. An officer
99	or full-time employee of the ombudsman's office may not actively
100	engage in any other business or profession; serve as the
101	representative of any political party or on the executive
102	committee or other governing body of any political party; serve
103	as an executive, officer, or employee of any political party,
104	committee, organization, or association; receive remuneration
105	for activities on behalf of any candidate for public office; or
106	engage in the solicitation of votes or other activities on
107	behalf of any candidate for public office. The ombudsman or any
108	employee of his or her office may not become a candidate for
109	election to public office unless he or she first resigns from
110	his or her office or employment.
111	Section 3.  Section 718.5012, Florida Statutes, is created
112	to read:
113	718.5012  Ombudsman; powers and duties.--The ombudsman
114	shall have such powers as are necessary to carry out the duties
115	of his or her office, including, but not limited to, the
116	following specific powers:
117	(1)  To have access to and use of all files and records of
118	the division and of all condominium associations, by subpoena if
119	necessary.
120	(2)  To employ professional and clerical staff as necessary
121	for the efficient operation of the Office of the Condominium
122	Ombudsman, including experts and other technical personnel for
123	participation in contested proceedings before the division when
124	the best interests of the public will be served, and with the
125	approval of the Office of the Governor, to adopt and administer
126	a uniform personnel job classification and pay plan for such
127	employees, and to enter into contracts.
128	(3)  To prepare and issue reports, recommendations, and
129	proposed orders to the division, the Governor, the Advisory
130	Council on Condominiums, the President of the Senate, the
131	Speaker of the House of Representatives, and the minority
132	leaders of the Senate and the House of Representatives on any
133	matter or subject within the jurisdiction of the division, and
134	to make such recommendations as he or she deems appropriate for
135	legislation relative to division procedures, rules,
136	jurisdiction, personnel, and functions.
137	(4)  To act as liaison between the division and unit
138	owners, and to assist any unit owner in providing and explaining
139	how to file a complaint to be investigated by the division. The
140	ombudsman shall establish procedures for the submittal and
141	processing of complaints, including target dates for concluding
142	any investigation by the ombudsman. The ombudsman shall identify
143	complaints that properly fall within the jurisdiction of the
144	division and require remedial action and shall assist residents
145	with promptly filing complaints with the division. The ombudsman
146	may recommend that the division initiate enforcement
147	proceedings. The department and the ombudsman may submit
148	findings of a criminal nature to the state attorney's office and
149	work with that office to bring charges against the parties
150	allegedly involved.
151	(5)  To monitor, investigate, and review condominium
152	elections and meetings, which includes, but is not limited to:
153	(a)  Providing information and evidence to the division if
154	a member of a condominium board attempts, engages in, conspires
155	to engage in, or willfully and knowingly benefits from electoral
156	fraud. If the information and evidence provided is clear and
157	convincing, the division shall order the member removed from the
158	board. The order of removal shall also prohibit the person who
159	is removed from running for election to any office of a
160	condominium board in the state for 4 years. Any person who is so
161	removed from office twice shall be barred from serving on a
162	condominium board in the state. Factual findings forming the
163	basis for an order of removal shall be subject to judicial
164	review only for abuse of discretion.
165	(b)  Working with the division to adopt rules governing
166	proceedings to remove a board member for electoral fraud. The
167	division shall adopt rules governing such removal which shall,
168	at minimum, provide the accused board member with adequate
169	notice, opportunity to be heard, the right to confront and
170	cross-examine witnesses, the right to submit rebuttal evidence,
171	and the right to counsel. Before the division develops a rule
172	proposal on removal, the division and the office shall meet and
173	confer regarding issues to be addressed in the rule. After the
174	division develops a rule proposal on removal, and before the
175	proposal is finalized for publication or other presentation to
176	the public, the division shall provide the office with a
177	reasonable opportunity to review and provide written comments on
178	the proposal and consider any comments the ombudsman provides.
179
180	Neither this subsection nor rules adopted to implement it shall
181	be construed to require the ombudsman to provide counsel or
182	witnesses, or other assistance, at public expense.
183	(6)  To make recommendations to the division for changes in
184	rules and procedures for the filing, investigation, and
185	resolution of complaints filed by unit owners, associations, and
186	managers.
187	Section 4.  Section 718.5014, Florida Statutes, is created
188	to read:
189	718.5014  Ombudsman; location.--The ombudsman shall
190	maintain his or her principal office in Leon County on the
191	premises of the division or, if suitable space cannot be
192	provided there, at such other place convenient to the offices of
193	the division as will enable the ombudsman to expeditiously carry
194	out the duties and functions of his or her office.
195	Section 5.  Section 718.5015, Florida Statutes, is created
196	to read:
197	718.5015  Advisory council; membership functions.--
198	(1)  There is created the Advisory Council on Condominiums.
199	The council shall consist of seven appointed members. Two
200	members shall be appointed by the President of the Senate, two
201	members shall be appointed by the Speaker of the House of
202	Representatives, and three members shall be appointed by the
203	Governor. At least one member that is appointed by the Governor
204	shall represent timeshare condominiums. Members shall be
205	appointed to 2-year terms; however, one of the persons initially
206	appointed by the Governor, by the President of the Senate, and
207	by the Speaker of the House of Representatives shall be
208	appointed to a 1-year term. The director of the division shall
209	serve as an ex officio nonvoting member. The Legislature intends
210	that the persons appointed represent a cross-section of persons
211	interested in condominium issues. The council shall be located
212	within the division for administrative purposes. Members of the
213	council shall serve without compensation, but are entitled to
214	receive per diem and travel expenses pursuant to s. 112.061
215	while on official business.
216	(2)  The functions of the advisory council shall be to:
217	(a)  Receive, from the public, input regarding issues of
218	concern with respect to condominiums and recommendations for
219	changes in the condominium law. The issues that the council
220	shall consider include, but are not limited to, the rights and
221	responsibilities of the unit owners in relation to the rights
222	and responsibilities of the association.
223	(b)  Review, evaluate, and advise the division concerning
224	revisions and adoption of rules affecting condominiums.
225	(c)  Recommend improvements, if needed, in the education
226	programs offered by the division.
227	(3)  The council may elect a chair and vice chair and such
228	other officers as it may deem advisable. The council shall meet
229	at the call of its chair, at the request of a majority of its
230	membership, at the request of the division, or at such times as
231	it may prescribe. A majority of the members of the council shall
232	constitute a quorum. Council action may be taken by vote of a
233	majority of the voting members who are present at a meeting
234	where there is a quorum.
235	Section 6.  Section 718.504, Florida Statutes, is amended
236	to read:
237	718.504  Prospectus or offering circular; "Frequently Asked
238	Questions and Answers".--Every developer of a residential
239	condominium which contains more than 20 residential units, or
240	which is part of a group of residential condominiums which will
241	be served by property to be used in common by unit owners of
242	more than 20 residential units, shall prepare a prospectus or
243	offering circular and file it with the Division of Florida Land
244	Sales, Condominiums, and Mobile Homes prior to entering into an
245	enforceable contract of purchase and sale of any unit or lease
246	of a unit for more than 5 years and shall furnish a copy of the
247	prospectus or offering circular to each buyer.  In addition to
248	the prospectus or offering circular, any prospective each buyer
249	from the developer or current owner shall be furnished a
250	separate document page entitled "Frequently Asked Questions and
251	Answers," which shall be in accordance with a format approved by
252	the division and a copy of the financial information required by
253	s. 718.111.  This document page shall, in readable language,
254	inform prospective purchasers regarding their voting rights and
255	unit use restrictions, including restrictions on the leasing of
256	a unit; shall indicate whether and in what amount the unit
257	owners or the association is obligated to pay rent or land use
258	fees for recreational or other commonly used facilities; shall
259	contain a statement identifying that amount of assessment which,
260	pursuant to the budget, would be levied upon each unit type,
261	exclusive of any special assessments, and which shall further
262	identify the basis upon which assessments are levied, whether
263	monthly, quarterly, or otherwise; shall state and identify any
264	court cases in which the association is currently a party of
265	record in which the association may face liability of $25,000 or
266	more in excess of $100,000; and which shall further state
267	whether membership in a recreational facilities association is
268	mandatory, and if so, shall identify the fees currently charged
269	per unit type.  The division shall by rule require such other
270	disclosure as in its judgment will assist prospective
271	purchasers. The prospectus or offering circular may include more
272	than one condominium, although not all such units are being
273	offered for sale as of the date of the prospectus or offering
274	circular.  The prospectus or offering circular must contain the
275	following information:
276	(1)  The front cover or the first page must contain only:
277	(a)  The name of the condominium.
278	(b)  The following statements in conspicuous type:
279	1.  THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
280	MATTERS TO BE CONSIDERED IN ACQUIRING A CONDOMINIUM UNIT.
281	2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
282	NATURE.  A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCES,
283	ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES
284	MATERIALS.
285	3.  ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
286	STATING THE REPRESENTATIONS OF THE DEVELOPER. REFER TO THIS
287	PROSPECTUS (OFFERING CIRCULAR) AND ITS EXHIBITS FOR CORRECT
288	REPRESENTATIONS.
289	(2)  Summary:  The next page must contain all statements
290	required to be in conspicuous type in the prospectus or offering
291	circular.
292	(3)  A separate index of the contents and exhibits of the
293	prospectus.
294	(4)  Beginning on the first page of the text (not including
295	the summary and index), a description of the condominium,
296	including, but not limited to, the following information:
297	(a)  Its name and location.
298	(b)  A description of the condominium property, including,
299	without limitation:
300	1.  The number of buildings, the number of units in each
301	building, the number of bathrooms and bedrooms in each unit, and
302	the total number of units, if the condominium is not a phase
303	condominium, or the maximum number of buildings that may be
304	contained within the condominium, the minimum and maximum
305	numbers of units in each building, the minimum and maximum
306	numbers of bathrooms and bedrooms that may be contained in each
307	unit, and the maximum number of units that may be contained
308	within the condominium, if the condominium is a phase
309	condominium.
310	2.  The page in the condominium documents where a copy of
311	the plot plan and survey of the condominium is located.
312	3.  The estimated latest date of completion of
313	constructing, finishing, and equipping.  In lieu of a date, the
314	description shall include a statement that the estimated date of
315	completion of the condominium is in the purchase agreement and a
316	reference to the article or paragraph containing that
317	information.
318	(c)  The maximum number of units that will use facilities
319	in common with the condominium.  If the maximum number of units
320	will vary, a description of the basis for variation and the
321	minimum amount of dollars per unit to be spent for additional
322	recreational facilities or enlargement of such facilities.  If
323	the addition or enlargement of facilities will result in a
324	material increase of a unit owner's maintenance expense or
325	rental expense, if any, the maximum increase and limitations
326	thereon shall be stated.
327	(5)(a)  A statement in conspicuous type describing whether
328	the condominium is created and being sold as fee simple
329	interests or as leasehold interests. If the condominium is
330	created or being sold on a leasehold, the location of the lease
331	in the disclosure materials shall be stated.
332	(b)  If timeshare estates are or may be created with
333	respect to any unit in the condominium, a statement in
334	conspicuous type stating that timeshare estates are created and
335	being sold in units in the condominium.
336	(6)  A description of the recreational and other commonly
337	used facilities that will be used only by unit owners of the
338	condominium, including, but not limited to, the following:
339	(a)  Each room and its intended purposes, location,
340	approximate floor area, and capacity in numbers of people.
341	(b)  Each swimming pool, as to its general location,
342	approximate size and depths, approximate deck size and capacity,
343	and whether heated.
344	(c)  Additional facilities, as to the number of each
345	facility, its approximate location, approximate size, and
346	approximate capacity.
347	(d)  A general description of the items of personal
348	property and the approximate number of each item of personal
349	property that the developer is committing to furnish for each
350	room or other facility or, in the alternative, a representation
351	as to the minimum amount of expenditure that will be made to
352	purchase the personal property for the facility.
353	(e)  The estimated date when each room or other facility
354	will be available for use by the unit owners.
355	(f)1.  An identification of each room or other facility to
356	be used by unit owners that will not be owned by the unit owners
357	or the association;
358	2.  A reference to the location in the disclosure materials
359	of the lease or other agreements providing for the use of those
360	facilities; and
361	3.  A description of the terms of the lease or other
362	agreements, including the length of the term; the rent payable,
363	directly or indirectly, by each unit owner, and the total rent
364	payable to the lessor, stated in monthly and annual amounts for
365	the entire term of the lease; and a description of any option to
366	purchase the property leased under any such lease, including the
367	time the option may be exercised, the purchase price or how it
368	is to be determined, the manner of payment, and whether the
369	option may be exercised for a unit owner's share or only as to
370	the entire leased property.
371	(g)  A statement as to whether the developer may provide
372	additional facilities not described above; their general
373	locations and types; improvements or changes that may be made;
374	the approximate dollar amount to be expended; and the maximum
375	additional common expense or cost to the individual unit owners
376	that may be charged during the first annual period of operation
377	of the modified or added facilities.
378
379	Descriptions as to locations, areas, capacities, numbers,
380	volumes, or sizes may be stated as approximations or minimums.
381	(7)  A description of the recreational and other facilities
382	that will be used in common with other condominiums, community
383	associations, or planned developments which require the payment
384	of the maintenance and expenses of such facilities, either
385	directly or indirectly, by the unit owners.  The description
386	shall include, but not be limited to, the following:
387	(a)  Each building and facility committed to be built.
388	(b)  Facilities not committed to be built except under
389	certain conditions, and a statement of those conditions or
390	contingencies.
391	(c)  As to each facility committed to be built, or which
392	will be committed to be built upon the happening of one of the
393	conditions in paragraph (b), a statement of whether it will be
394	owned by the unit owners having the use thereof or by an
395	association or other entity which will be controlled by them, or
396	others, and the location in the exhibits of the lease or other
397	document providing for use of those facilities.
398	(d)  The year in which each facility will be available for
399	use by the unit owners or, in the alternative, the maximum
400	number of unit owners in the project at the time each of all of
401	the facilities is committed to be completed.
402	(e)  A general description of the items of personal
403	property, and the approximate number of each item of personal
404	property, that the developer is committing to furnish for each
405	room or other facility or, in the alternative, a representation
406	as to the minimum amount of expenditure that will be made to
407	purchase the personal property for the facility.
408	(f)  If there are leases, a description thereof, including
409	the length of the term, the rent payable, and a description of
410	any option to purchase.
411
412	Descriptions shall include location, areas, capacities, numbers,
413	volumes, or sizes and may be stated as approximations or
414	minimums.
415	(8)  Recreation lease or associated club membership:
416	(a)  If any recreational facilities or other facilities
417	offered by the developer and available to, or to be used by,
418	unit owners are to be leased or have club membership associated,
419	the following statement in conspicuous type shall be included:
420	THERE IS A RECREATIONAL FACILITIES LEASE ASSOCIATED WITH THIS
421	CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP ASSOCIATED WITH THIS
422	CONDOMINIUM.  There shall be a reference to the location in the
423	disclosure materials where the recreation lease or club
424	membership is described in detail.
425	(b)  If it is mandatory that unit owners pay a fee, rent,
426	dues, or other charges under a recreational facilities lease or
427	club membership for the use of facilities, there shall be in
428	conspicuous type the applicable statement:
429	1.  MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
430	MANDATORY FOR UNIT OWNERS; or
431	2.  UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
432	TO BE LESSEES UNDER THE RECREATIONAL FACILITIES LEASE; or
433	3.  UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
434	COSTS AND EXPENSES OF MAINTENANCE, MANAGEMENT, UPKEEP,
435	REPLACEMENT, RENT, AND FEES UNDER THE RECREATIONAL FACILITIES
436	LEASE (OR THE OTHER INSTRUMENTS PROVIDING THE FACILITIES); or
437	4.  A similar statement of the nature of the organization
438	or the manner in which the use rights are created, and that unit
439	owners are required to pay.
440
441	Immediately following the applicable statement, the location in
442	the disclosure materials where the development is described in
443	detail shall be stated.
444	(c)  If the developer, or any other person other than the
445	unit owners and other persons having use rights in the
446	facilities, reserves, or is entitled to receive, any rent, fee,
447	or other payment for the use of the facilities, then there shall
448	be the following statement in conspicuous type: THE UNIT OWNERS
449	OR THE ASSOCIATION(S) MUST PAY RENT OR LAND USE FEES FOR
450	RECREATIONAL OR OTHER COMMONLY USED FACILITIES.  Immediately
451	following this statement, the location in the disclosure
452	materials where the rent or land use fees are described in
453	detail shall be stated.
454	(d)  If, in any recreation format, whether leasehold, club,
455	or other, any person other than the association has the right to
456	a lien on the units to secure the payment of assessments, rent,
457	or other exactions, there shall appear a statement in
458	conspicuous type in substantially the following form:
459	1.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
460	SECURE THE PAYMENT OF RENT AND OTHER EXACTIONS UNDER THE
461	RECREATION LEASE.  THE UNIT OWNER'S FAILURE TO MAKE THESE
462	PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN; or
463	2.  THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
464	SECURE THE PAYMENT OF ASSESSMENTS OR OTHER EXACTIONS COMING DUE
465	FOR THE USE, MAINTENANCE, UPKEEP, OR REPAIR OF THE RECREATIONAL
466	OR COMMONLY USED FACILITIES.  THE UNIT OWNER'S FAILURE TO MAKE
467	THESE PAYMENTS MAY RESULT IN FORECLOSURE OF THE LIEN.
468
469	Immediately following the applicable statement, the location in
470	the disclosure materials where the lien or lien right is
471	described in detail shall be stated.
472	(9)  If the developer or any other person has the right to
473	increase or add to the recreational facilities at any time after
474	the establishment of the condominium whose unit owners have use
475	rights therein, without the consent of the unit owners or
476	associations being required, there shall appear a statement in
477	conspicuous type in substantially the following form:
478	RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT CONSENT
479	OF UNIT OWNERS OR THE ASSOCIATION(S).  Immediately following
480	this statement, the location in the disclosure materials where
481	such reserved rights are described shall be stated.
482	(10)  A statement of whether the developer's plan includes
483	a program of leasing units rather than selling them, or leasing
484	units and selling them subject to such leases.  If so, there
485	shall be a description of the plan, including the number and
486	identification of the units and the provisions and term of the
487	proposed leases, and a statement in boldfaced type that:  THE
488	UNITS MAY BE TRANSFERRED SUBJECT TO A LEASE.
489	(11)  The arrangements for management of the association
490	and maintenance and operation of the condominium property and of
491	other property that will serve the unit owners of the
492	condominium property, and a description of the management
493	contract and all other contracts for these purposes having a
494	term in excess of 1 year, including the following:
495	(a)  The names of contracting parties.
496	(b)  The term of the contract.
497	(c)  The nature of the services included.
498	(d)  The compensation, stated on a monthly and annual
499	basis, and provisions for increases in the compensation.
500	(e)  A reference to the volumes and pages of the
501	condominium documents and of the exhibits containing copies of
502	such contracts.
503
504	Copies of all described contracts shall be attached as exhibits.
505	If there is a contract for the management of the condominium
506	property, then a statement in conspicuous type in substantially
507	the following form shall appear, identifying the proposed or
508	existing contract manager:  THERE IS (IS TO BE) A CONTRACT FOR
509	THE MANAGEMENT OF THE CONDOMINIUM PROPERTY WITH (NAME OF THE
510	CONTRACT MANAGER).  Immediately following this statement, the
511	location in the disclosure materials of the contract for
512	management of the condominium property shall be stated.
513	(12)  If the developer or any other person or persons other
514	than the unit owners has the right to retain control of the
515	board of administration of the association for a period of time
516	which can exceed 1 year after the closing of the sale of a
517	majority of the units in that condominium to persons other than
518	successors or alternate developers, then a statement in
519	conspicuous type in substantially the following form shall be
520	included:  THE DEVELOPER (OR OTHER PERSON) HAS THE RIGHT TO
521	RETAIN CONTROL OF THE ASSOCIATION AFTER A MAJORITY OF THE UNITS
522	HAVE BEEN SOLD. Immediately following this statement, the
523	location in the disclosure materials where this right to control
524	is described in detail shall be stated.
525	(13)  If there are any restrictions upon the sale,
526	transfer, conveyance, or leasing of a unit, then a statement in
527	conspicuous type in substantially the following form shall be
528	included:  THE SALE, LEASE, OR TRANSFER OF UNITS IS RESTRICTED
529	OR CONTROLLED.  Immediately following this statement, the
530	location in the disclosure materials where the restriction,
531	limitation, or control on the sale, lease, or transfer of units
532	is described in detail shall be stated.
533	(14)  If the condominium is part of a phase project, the
534	following information shall be stated:
535	(a)  A statement in conspicuous type in substantially the
536	following form:  THIS IS A PHASE CONDOMINIUM.  ADDITIONAL LAND
537	AND UNITS MAY BE ADDED TO THIS CONDOMINIUM.  Immediately
538	following this statement, the location in the disclosure
539	materials where the phasing is described shall be stated.
540	(b)  A summary of the provisions of the declaration which
541	provide for the phasing.
542	(c)  A statement as to whether or not residential buildings
543	and units which are added to the condominium may be
544	substantially different from the residential buildings and units
545	originally in the condominium.  If the added residential
546	buildings and units may be substantially different, there shall
547	be a general description of the extent to which such added
548	residential buildings and units may differ, and a statement in
549	conspicuous type in substantially the following form shall be
550	included: BUILDINGS AND UNITS WHICH ARE ADDED TO THE CONDOMINIUM
551	MAY BE SUBSTANTIALLY DIFFERENT FROM THE OTHER BUILDINGS AND
552	UNITS IN THE CONDOMINIUM.  Immediately following this statement,
553	the location in the disclosure materials where the extent to
554	which added residential buildings and units may substantially
555	differ is described shall be stated.
556	(d)  A statement of the maximum number of buildings
557	containing units, the maximum and minimum numbers of units in
558	each building, the maximum number of units, and the minimum and
559	maximum square footage of the units that may be contained within
560	each parcel of land which may be added to the condominium.
561	(15)  If a condominium created on or after July 1, 2000, is
562	or may become part of a multicondominium, the following
563	information must be provided:
564	(a)  A statement in conspicuous type in substantially the
565	following form:  THIS CONDOMINIUM IS (MAY BE) PART OF A
566	MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
567	(MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately following
568	this statement, the location in the prospectus or offering
569	circular and its exhibits where the multicondominium aspects of
570	the offering are described must be stated.
571	(b)  A summary of the provisions in the declaration,
572	articles of incorporation, and bylaws which establish and
573	provide for the operation of the multicondominium, including a
574	statement as to whether unit owners in the condominium will have
575	the right to use recreational or other facilities located or
576	planned to be located in other condominiums operated by the same
577	association, and the manner of sharing the common expenses
578	related to such facilities.
579	(c)  A statement of the minimum and maximum number of
580	condominiums, and the minimum and maximum number of units in
581	each of those condominiums, which will or may be operated by the
582	association, and the latest date by which the exact number will
583	be finally determined.
584	(d)  A statement as to whether any of the condominiums in
585	the multicondominium may include units intended to be used for
586	nonresidential purposes and the purpose or purposes permitted
587	for such use.
588	(e)  A general description of the location and approximate
589	acreage of any land on which any additional condominiums to be
590	operated by the association may be located.
591	(16)  If the condominium is created by conversion of
592	existing improvements, the following information shall be
593	stated:
594	(a)  The information required by s. 718.616.
595	(b)  A caveat that there are no express warranties unless
596	they are stated in writing by the developer.
597	(17)  A summary of the restrictions, if any, to be imposed
598	on units concerning the use of any of the condominium property,
599	including statements as to whether there are restrictions upon
600	children and pets, and reference to the volumes and pages of the
601	condominium documents where such restrictions are found, or if
602	such restrictions are contained elsewhere, then a copy of the
603	documents containing the restrictions shall be attached as an
604	exhibit.
605	(18)  If there is any land that is offered by the developer
606	for use by the unit owners and that is neither owned by them nor
607	leased to them, the association, or any entity controlled by
608	unit owners and other persons having the use rights to such
609	land, a statement shall be made as to how such land will serve
610	the condominium.  If any part of such land will serve the
611	condominium, the statement shall describe the land and the
612	nature and term of service, and the declaration or other
613	instrument creating such servitude shall be included as an
614	exhibit.
615	(19)  The manner in which utility and other services,
616	including, but not limited to, sewage and waste disposal, water
617	supply, and storm drainage, will be provided and the person or
618	entity furnishing them.
619	(20)  An explanation of the manner in which the
620	apportionment of common expenses and ownership of the common
621	elements has been determined.
622	(21)  An estimated operating budget for the condominium and
623	the association, and a schedule of the unit owner's expenses
624	shall be attached as an exhibit and shall contain the following
625	information:
626	(a)  The estimated monthly and annual expenses of the
627	condominium and the association that are collected from unit
628	owners by assessments.
629	(b)  The estimated monthly and annual expenses of each unit
630	owner for a unit, other than common expenses paid by all unit
631	owners, payable by the unit owner to persons or entities other
632	than the association, as well as to the association, including
633	fees assessed pursuant to s. 718.113(1) for maintenance of
634	limited common elements where such costs are shared only by
635	those entitled to use the limited common element, and the total
636	estimated monthly and annual expense. There may be excluded from
637	this estimate expenses which are not provided for or
638	contemplated by the condominium documents, including, but not
639	limited to, the costs of private telephone; maintenance of the
640	interior of condominium units, which is not the obligation of
641	the association; maid or janitorial services privately
642	contracted for by the unit owners; utility bills billed directly
643	to each unit owner for utility services to his or her unit;
644	insurance premiums other than those incurred for policies
645	obtained by the condominium; and similar personal expenses of
646	the unit owner. A unit owner's estimated payments for
647	assessments shall also be stated in the estimated amounts for
648	the times when they will be due.
649	(c)  The estimated items of expenses of the condominium and
650	the association, except as excluded under paragraph (b),
651	including, but not limited to, the following items, which shall
652	be stated either as an association expense collectible by
653	assessments or as unit owners' expenses payable to persons other
654	than the association:
655	1.  Expenses for the association and condominium:
656	a.  Administration of the association.
657	b.  Management fees.
658	c.  Maintenance.
659	d.  Rent for recreational and other commonly used
660	facilities.
661	e.  Taxes upon association property.
662	f.  Taxes upon leased areas.
663	g.  Insurance.
664	h.  Security provisions.
665	i.  Other expenses.
666	j.  Operating capital.
667	k.  Reserves.
668	l.  Fees payable to the division.
669	2.  Expenses for a unit owner:
670	a.  Rent for the unit, if subject to a lease.
671	b.  Rent payable by the unit owner directly to the lessor
672	or agent under any recreational lease or lease for the use of
673	commonly used facilities, which use and payment is a mandatory
674	condition of ownership and is not included in the common expense
675	or assessments for common maintenance paid by the unit owners to
676	the association.
677	(d)  The estimated amounts shall be stated for a period of
678	at least 12 months and may distinguish between the period prior
679	to the time unit owners other than the developer elect a
680	majority of the board of administration and the period after
681	that date.
682	(22)  A schedule of estimated closing expenses to be paid
683	by a buyer or lessee of a unit and a statement of whether title
684	opinion or title insurance policy is available to the buyer and,
685	if so, at whose expense.
686	(23)  The identity of the developer and the chief operating
687	officer or principal directing the creation and sale of the
688	condominium and a statement of its and his or her experience in
689	this field.
690	(24)  Copies of the following, to the extent they are
691	applicable, shall be included as exhibits:
692	(a)  The declaration of condominium, or the proposed
693	declaration if the declaration has not been recorded.
694	(b)  The articles of incorporation creating the
695	association.
696	(c)  The bylaws of the association.
697	(d)  The ground lease or other underlying lease of the
698	condominium.
699	(e)  The management agreement and all maintenance and other
700	contracts for management of the association and operation of the
701	condominium and facilities used by the unit owners having a
702	service term in excess of 1 year.
703	(f)  The estimated operating budget for the condominium and
704	the required schedule of unit owners' expenses.
705	(g)  A copy of the floor plan of the unit and the plot plan
706	showing the location of the residential buildings and the
707	recreation and other common areas.
708	(h)  The lease of recreational and other facilities that
709	will be used only by unit owners of the subject condominium.
710	(i)  The lease of facilities used by owners and others.
711	(j)  The form of unit lease, if the offer is of a
712	leasehold.
713	(k)  A declaration of servitude of properties serving the
714	condominium but not owned by unit owners or leased to them or
715	the association.
716	(l)  The statement of condition of the existing building or
717	buildings, if the offering is of units in an operation being
718	converted to condominium ownership.
719	(m)  The statement of inspection for termite damage and
720	treatment of the existing improvements, if the condominium is a
721	conversion.
722	(n)  The form of agreement for sale or lease of units.
723	(o)  A copy of the agreement for escrow of payments made to
724	the developer prior to closing.
725	(p)  A copy of the documents containing any restrictions on
726	use of the property required by subsection (17).
727	(25)  Any prospectus or offering circular complying, prior
728	to the effective date of this act, with the provisions of former
729	ss. 711.69 and 711.802 may continue to be used without amendment
730	or may be amended to comply with the provisions of this chapter.
731	(26)  A brief narrative description of the location and
732	effect of all existing and intended easements located or to be
733	located on the condominium property other than those described
734	in the declaration.
735	(27)  If the developer is required by state or local
736	authorities to obtain acceptance or approval of any dock or
737	marina facilities intended to serve the condominium, a copy of
738	any such acceptance or approval acquired by the time of filing
739	with the division under s. 718.502(1) or a statement that such
740	acceptance or approval has not been acquired or received.
741	(28)  Evidence demonstrating that the developer has an
742	ownership, leasehold, or contractual interest in the land upon
743	which the condominium is to be developed.
744	Section 7.  The Department of Business and Professional
745	Regulation may continue to prosecute any existing judicial or
746	administrative legal proceedings that are in existence on the
747	effective date of this act.
748	Section 8.  There is hereby appropriated $379,450 from the
749	Florida Land Sales, Condominiums, and Mobile Homes Trust Fund,
750	and six full-time equivalent positions are authorized for the
751	Department of Business and Professional Regulation to implement
752	the provisions of this act.
753	Section 9.  This act shall take effect upon becoming a law.

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