| 1 | The Civil Justice Committee recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to homeowners' and condominium |
| 7 | associations; amending s. 468.431, F.S.; providing and |
| 8 | revising definitions; amending s. 468.4315, F.S.; revising |
| 9 | qualifications of members of the Regulatory Council of |
| 10 | Community Association Managers; providing that two members |
| 11 | must be members of community associations; amending s. |
| 12 | 468.432, F.S.; requiring application to and licensure by |
| 13 | the Department of Business and Professional Regulation of |
| 14 | certain community association management firms or other |
| 15 | like entities; providing for expiration and renewal of |
| 16 | such license; providing and revising requirements for |
| 17 | licensure; amending s. 468.435, F.S.; providing a fee for |
| 18 | management firm licensure; amending s. 468.436, F.S.; |
| 19 | providing that certain disciplinary actions against |
| 20 | community association managers or management firms may be |
| 21 | taken upon a finding by the Division of Florida Land |
| 22 | Sales, Condominiums, and Mobile Homes or the department; |
| 23 | adding an additional ground for disciplinary action; |
| 24 | amending s. 718.110, F.S.; providing that alteration of |
| 25 | parking spaces to accommodate persons with severe mobility |
| 26 | disabilities does not constitute a material alteration or |
| 27 | modification of the appurtenances to condominium units; |
| 28 | amending s. 718.111, F.S.; restricting a condominium |
| 29 | association from waiving an audit for more than 2 |
| 30 | consecutive years; requiring reasonable provisions to be |
| 31 | made to provide parking spaces for persons with severe |
| 32 | mobility disabilities; amending s. 718.112, F.S.; removing |
| 33 | a provision allowing a condominium association to only |
| 34 | respond once every 30 days to unit owner inquiries; |
| 35 | providing that limited proxy votes may not be used for |
| 36 | votes taken to waive or reduce reserves under certain |
| 37 | circumstances; revising the terms of office and reelection |
| 38 | of the members of a condominium association board; |
| 39 | providing that certain coowners may not serve on the |
| 40 | board; removing provisions that allowed a condominium |
| 41 | association to establish different voting and election |
| 42 | procedures in its bylaws under certain circumstances; |
| 43 | requiring condominium associations, by a certain date, to |
| 44 | adjust replacement reserve assessments annually; providing |
| 45 | that the adjustment requirement applies to certain |
| 46 | association budgets; providing that reserve funds may be |
| 47 | used for nonscheduled purposes under certain catastrophic |
| 48 | circumstances; amending s. 718.113, F.S.; providing for |
| 49 | additional hurricane protection measures under certain |
| 50 | circumstances; amending s. 718.303, F.S.; providing notice |
| 51 | and response requirements to certain alleged violations; |
| 52 | providing that action may not proceed without further |
| 53 | notice when a fine is levied; amending s. 718.50151, F.S.; |
| 54 | authorizing the division director to appoint a designee to |
| 55 | serve ex officio on the Advisory Council on Condominiums; |
| 56 | amending s. 719.104, F.S.; restricting a cooperative |
| 57 | association from waiving an audit for more than 2 |
| 58 | consecutive years; amending s. 719.1055, F.S.; providing |
| 59 | that restrictions on the rental of cooperative units |
| 60 | applies only to certain unit owners; providing an |
| 61 | effective date. |
| 62 |
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| 63 | Be It Enacted by the Legislature of the State of Florida: |
| 64 |
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| 65 | Section 1. Subsections (3), (4), and (5) of section |
| 66 | 468.431, Florida Statutes, are renumbered as subsections (4), |
| 67 | (5), and (6), respectively, present subsection (3) is amended, |
| 68 | and a new subsection (3) is added to said section, to read: |
| 69 | 468.431 Definitions.-- |
| 70 | (3) "Community association management firm" means a |
| 71 | corporation, limited liability company, partnership, trust, |
| 72 | association, sole proprietorship, or other like organization |
| 73 | engaging in the business of community association management to |
| 74 | provide any of the services described in subsection (2). |
| 75 | (4)(3) "Community association manager" means a natural |
| 76 | person who is licensed pursuant to this part to perform |
| 77 | community association management services. |
| 78 | Section 2. Paragraph (a) of subsection (1) of section |
| 79 | 468.4315, Florida Statutes, is amended to read: |
| 80 | 468.4315 Regulatory Council of Community Association |
| 81 | Managers.-- |
| 82 | (1) The Regulatory Council of Community Association |
| 83 | Managers is created within the department and shall consist of |
| 84 | seven members appointed by the Governor and confirmed by the |
| 85 | Senate. |
| 86 | (a) Five members of the council shall be licensed |
| 87 | community association managers, one of whom may shall be a |
| 88 | community association manager employed by a timeshare managing |
| 89 | entity as described in ss. 468.438 and 721.13, who have held an |
| 90 | active license for 5 years. The remaining two council members |
| 91 | shall be members of community associations, as defined in |
| 92 | chapter 718, chapter 719, or chapter 720, and residents of this |
| 93 | state and must not be or ever have been connected with the |
| 94 | business of community association management. |
| 95 | Section 3. Section 468.432, Florida Statutes, is amended |
| 96 | to read: |
| 97 | 468.432 Licensure of community association managers; |
| 98 | community association management firms; exceptions.-- |
| 99 | (1) A person shall not manage or hold herself or himself |
| 100 | out to the public as being able to manage a community |
| 101 | association in this state unless she or he is licensed by the |
| 102 | department in accordance with the provisions of this part. |
| 103 | However, nothing in this part prohibits any person licensed in |
| 104 | this state under any other law or court rule from engaging in |
| 105 | the profession for which she or he is licensed. |
| 106 | (1) As of January 1, 2006, a community association |
| 107 | management firm or other like organization shall not engage in |
| 108 | or hold itself out to the public as being able to engage in the |
| 109 | business of community association management in this state |
| 110 | unless it is licensed by the department as a community |
| 111 | association management firm in accordance with the provisions of |
| 112 | this part. |
| 113 | (2) A community association management firm or other like |
| 114 | organization desiring to be licensed as a community association |
| 115 | management firm shall apply to the department on a form approved |
| 116 | by the department accompanied by the application and licensure |
| 117 | fees required by s. 468.435(1)(a) and (g). Each community |
| 118 | association management firm applying for licensure under this |
| 119 | subsection must be actively registered and authorized to do |
| 120 | business in this state. |
| 121 | (3) On its application each applicant shall designate a |
| 122 | licensed community association manager who shall be required to |
| 123 | respond to all inquires from and investigations by the |
| 124 | department or division. |
| 125 | (4) Each licensed community association management firm |
| 126 | shall notify the department within 30 days of any change of |
| 127 | information contained in the application upon which licensure is |
| 128 | based. |
| 129 | (5) A community association management firm license shall |
| 130 | expire September 30 of even-numbered years and shall be renewed |
| 131 | every 2 years. An application for renewal shall be accompanied |
| 132 | by the renewal fee required by s. 468.435(1)(d). |
| 133 | (6) The department shall license each applicant who the |
| 134 | department certifies as meeting the requirements of this |
| 135 | section. |
| 136 | (7) If the license of at least one active community |
| 137 | association management member who is a natural person is not in |
| 138 | force, the license of the community association management firm |
| 139 | or other like organization is canceled automatically during that |
| 140 | time. |
| 141 | (8) Any community association management firm or other |
| 142 | like organization agrees by being licensed that it will employ |
| 143 | only licensed persons in the direct provision of community |
| 144 | association management services as defined in s. 468.431(2). |
| 145 | (2) Nothing in this part prohibits a corporation, |
| 146 | partnership, trust, association, or other like organization from |
| 147 | engaging in the business of community association management |
| 148 | without being licensed if it employs licensed natural persons in |
| 149 | the direct provision of community association management |
| 150 | services. Such corporation, partnership, trust, association, or |
| 151 | other organization shall also file with the department a |
| 152 | statement on a form approved by the department that it submits |
| 153 | itself to the rules of the council and the department and the |
| 154 | provisions of this part which the department deems applicable. |
| 155 | Section 4. Paragraph (g) is added to subsection (1) of |
| 156 | section 468.435, Florida Statutes, to read: |
| 157 | 468.435 Fees; establishment; disposition.-- |
| 158 | (1) The council shall, by rule, establish fees for the |
| 159 | described purposes and within the ranges specified in this |
| 160 | section: |
| 161 | (g) Management firm license fee: not more than $250. |
| 162 | Section 5. Section 468.436, Florida Statutes, is amended |
| 163 | to read: |
| 164 | 468.436 Disciplinary proceedings.-- |
| 165 | (1) Upon a finding by the Division of Florida Land Sales, |
| 166 | Condominiums, and Mobile Homes or the department, the following |
| 167 | acts constitute grounds for which the disciplinary actions in |
| 168 | subsection (3) may be taken: |
| 169 | (a) Violation of any provision of s. 455.227(1). |
| 170 | (b)1. Violation of any provision of this part. |
| 171 | 2. Violation of any lawful order or rule rendered or |
| 172 | adopted by the department or the council. |
| 173 | 3. Being convicted of or pleading nolo contendere to a |
| 174 | felony in any court in the United States. |
| 175 | 4. Obtaining a license or certification or any other |
| 176 | order, ruling, or authorization by means of fraud, |
| 177 | misrepresentation, or concealment of material facts. |
| 178 | 5. Committing acts of gross misconduct or gross negligence |
| 179 | in connection with the profession. |
| 180 | 6. Contracting on behalf of an association with any entity |
| 181 | in which the licensee has a financial interest that is not |
| 182 | disclosed. |
| 183 | (2) The council shall specify by rule the acts or |
| 184 | omissions that constitute a violation of subsection (1). |
| 185 | (3) When the Division of Florida Land Sales, Condominiums, |
| 186 | and Mobile Homes or the department finds any community |
| 187 | association manager or management firm guilty of any of the |
| 188 | grounds set forth in subsection (1), the department it may enter |
| 189 | an order imposing one or more of the following penalties: |
| 190 | (a) Denial of an application for licensure. |
| 191 | (b) Revocation or suspension of a license. |
| 192 | (c) Imposition of an administrative fine not to exceed |
| 193 | $5,000 for each count or separate offense. |
| 194 | (d) Issuance of a reprimand. |
| 195 | (e) Placement of the community association manager or firm |
| 196 | on probation for a period of time and subject to such conditions |
| 197 | as the department specifies. |
| 198 | (f) Restriction of the authorized scope of practice by the |
| 199 | community association manager or firm. |
| 200 | (4) The department shall reissue the license of a |
| 201 | disciplined community association manager or firm upon |
| 202 | certification by the department that the disciplined person or |
| 203 | firm has complied with all of the terms and conditions set forth |
| 204 | in the final order. |
| 205 | Section 6. Subsection (4) of section 718.110, Florida |
| 206 | Statutes, is amended to read: |
| 207 | 718.110 Amendment of declaration; correction of error or |
| 208 | omission in declaration by circuit court.-- |
| 209 | (4) Unless otherwise provided in the declaration as |
| 210 | originally recorded, no amendment may change the configuration |
| 211 | or size of any unit in any material fashion, materially alter or |
| 212 | modify the appurtenances to the unit, or change the proportion |
| 213 | or percentage by which the unit owner shares the common expenses |
| 214 | of the condominium and owns the common surplus of the |
| 215 | condominium unless the record owner of the unit and all record |
| 216 | owners of liens on the unit join in the execution of the |
| 217 | amendment and unless all the record owners of all other units in |
| 218 | the same condominium approve the amendment. The acquisition of |
| 219 | property by the association and material alterations or |
| 220 | substantial additions to such property or the common elements by |
| 221 | the association in accordance with s. 718.111(7) or (15) or s. |
| 222 | 718.113, and amendments providing for the transfer of use rights |
| 223 | in limited common elements pursuant to s. 718.106(2)(b) shall |
| 224 | not be deemed to constitute a material alteration or |
| 225 | modification of the appurtenances to the units. A declaration |
| 226 | recorded after April 1, 1992, may not require the approval of |
| 227 | less than a majority of total voting interests of the |
| 228 | condominium for amendments under this subsection, unless |
| 229 | otherwise required by a governmental entity. |
| 230 | Section 7. Paragraph (d) of subsection (13) of section |
| 231 | 718.111, Florida Statutes, is amended, and subsection (15) is |
| 232 | added to said section, to read: |
| 233 | 718.111 The association.-- |
| 234 | (13) FINANCIAL REPORTING.--Within 90 days after the end of |
| 235 | the fiscal year, or annually on a date provided in the bylaws, |
| 236 | the association shall prepare and complete, or contract for the |
| 237 | preparation and completion of, a financial report for the |
| 238 | preceding fiscal year. Within 21 days after the final financial |
| 239 | report is completed by the association or received from the |
| 240 | third party, but not later than 120 days after the end of the |
| 241 | fiscal year or other date as provided in the bylaws, the |
| 242 | association shall mail to each unit owner at the address last |
| 243 | furnished to the association by the unit owner, or hand deliver |
| 244 | to each unit owner, a copy of the financial report or a notice |
| 245 | that a copy of the financial report will be mailed or hand |
| 246 | delivered to the unit owner, without charge, upon receipt of a |
| 247 | written request from the unit owner. The division shall adopt |
| 248 | rules setting forth uniform accounting principles and standards |
| 249 | to be used by all associations and shall adopt rules addressing |
| 250 | financial reporting requirements for multicondominium |
| 251 | associations. In adopting such rules, the division shall |
| 252 | consider the number of members and annual revenues of an |
| 253 | association. Financial reports shall be prepared as follows: |
| 254 | (d)1. If approved by a majority of the voting interests |
| 255 | present at a properly called meeting of the association, an |
| 256 | association may prepare or cause to be prepared: |
| 257 | a.1. A report of cash receipts and expenditures in lieu of |
| 258 | a compiled, reviewed, or audited financial statement; |
| 259 | b.2. A report of cash receipts and expenditures or a |
| 260 | compiled financial statement in lieu of a reviewed or audited |
| 261 | financial statement; or |
| 262 | c.3. A report of cash receipts and expenditures, a |
| 263 | compiled financial statement, or a reviewed financial statement |
| 264 | in lieu of an audited financial statement. |
| 265 | 2. In no event shall an association waive its requirement |
| 266 | for an audit, if applicable, for more than 2 consecutive years. |
| 267 |
|
| 268 | Such meeting and approval must occur prior to the end of the |
| 269 | fiscal year and is effective only for the fiscal year in which |
| 270 | the vote is taken. With respect to an association to which the |
| 271 | developer has not turned over control of the association, all |
| 272 | unit owners, including the developer, may vote on issues related |
| 273 | to the preparation of financial reports for the first 2 fiscal |
| 274 | years of the association's operation, beginning with the fiscal |
| 275 | year in which the declaration is recorded. Thereafter, all unit |
| 276 | owners except the developer may vote on such issues until |
| 277 | control is turned over to the association by the developer. |
| 278 | (15) PARKING SPACES FOR PERSONS WHO HAVE SEVERE MOBILITY |
| 279 | DISABILITIES.--Because parking in condominium associations |
| 280 | generally is not configured to provide vehicular ingress and |
| 281 | egress for persons who have severe mobility disabilities |
| 282 | requiring the use of a vehicle with a lift or ramp, it is |
| 283 | determined to be in the best interest of all residents of the |
| 284 | state that these persons not be precluded from housing choices |
| 285 | that are desirable to them where alterations may be made to |
| 286 | accommodate this disability. The association shall make |
| 287 | reasonable provisions for a mobility-disabled person to transfer |
| 288 | the use rights to a limited common element parking place that |
| 289 | does not accommodate the person's vehicle for a common area |
| 290 | parking space that will accommodate his or her vehicle. If |
| 291 | alterations to the parking areas are required to bring the |
| 292 | parking space into compliance with s. 553.5041, the alterations |
| 293 | shall be at the expense of the person requesting the |
| 294 | accommodation, and the cost of returning the parking area to its |
| 295 | previous condition shall also be paid by the person requesting |
| 296 | the accommodation. |
| 297 | Section 8. Paragraphs (a), (b), (d), and (f) of subsection |
| 298 | (2) of section 718.112, Florida Statutes, are amended to read: |
| 299 | 718.112 Bylaws.-- |
| 300 | (2) REQUIRED PROVISIONS.--The bylaws shall provide for the |
| 301 | following and, if they do not do so, shall be deemed to include |
| 302 | the following: |
| 303 | (a) Administration.-- |
| 304 | 1. The form of administration of the association shall be |
| 305 | described indicating the title of the officers and board of |
| 306 | administration and specifying the powers, duties, manner of |
| 307 | selection and removal, and compensation, if any, of officers and |
| 308 | boards. In the absence of such a provision, the board of |
| 309 | administration shall be composed of five members, except in the |
| 310 | case of a condominium which has five or fewer units, in which |
| 311 | case in a not-for-profit corporation the board shall consist of |
| 312 | not fewer than three members. In the absence of provisions to |
| 313 | the contrary in the bylaws, the board of administration shall |
| 314 | have a president, a secretary, and a treasurer, who shall |
| 315 | perform the duties of such officers customarily performed by |
| 316 | officers of corporations. Unless prohibited in the bylaws, the |
| 317 | board of administration may appoint other officers and grant |
| 318 | them the duties it deems appropriate. Unless otherwise provided |
| 319 | in the bylaws, the officers shall serve without compensation and |
| 320 | at the pleasure of the board of administration. Unless otherwise |
| 321 | provided in the bylaws, the members of the board shall serve |
| 322 | without compensation. |
| 323 | 2. When a unit owner files a written inquiry by certified |
| 324 | mail with the board of administration, the board shall respond |
| 325 | in writing to the unit owner within 30 days of receipt of the |
| 326 | inquiry. The board's response shall either give a substantive |
| 327 | response to the inquirer, notify the inquirer that a legal |
| 328 | opinion has been requested, or notify the inquirer that advice |
| 329 | has been requested from the division. If the board requests |
| 330 | advice from the division, the board shall, within 10 days of its |
| 331 | receipt of the advice, provide in writing a substantive response |
| 332 | to the inquirer. If a legal opinion is requested, the board |
| 333 | shall, within 60 days after the receipt of the inquiry, provide |
| 334 | in writing a substantive response to the inquiry. The failure to |
| 335 | provide a substantive response to the inquiry as provided herein |
| 336 | precludes the board from recovering attorney's fees and costs in |
| 337 | any subsequent litigation, administrative proceeding, or |
| 338 | arbitration arising out of the inquiry. The association may |
| 339 | through its board of administration adopt reasonable rules and |
| 340 | regulations regarding the frequency and manner of responding to |
| 341 | unit owner inquiries, one of which may be that the association |
| 342 | is only obligated to respond to one written inquiry per unit in |
| 343 | any given 30-day period. In such a case, any additional inquiry |
| 344 | or inquiries must be responded to in the subsequent 30-day |
| 345 | period, or periods, as applicable. |
| 346 | (b) Quorum; voting requirements; proxies.-- |
| 347 | 1. Unless a lower number is provided in the bylaws, the |
| 348 | percentage of voting interests required to constitute a quorum |
| 349 | at a meeting of the members shall be a majority of the voting |
| 350 | interests. Unless otherwise provided in this chapter or in the |
| 351 | declaration, articles of incorporation, or bylaws, and except as |
| 352 | provided in subparagraph (d)3., decisions shall be made by |
| 353 | owners of a majority of the voting interests represented at a |
| 354 | meeting at which a quorum is present. |
| 355 | 2. Except as specifically otherwise provided herein, after |
| 356 | January 1, 1992, unit owners may not vote by general proxy, but |
| 357 | may vote by limited proxies substantially conforming to a |
| 358 | limited proxy form adopted by the division. Limited proxies and |
| 359 | general proxies may be used to establish a quorum. Limited |
| 360 | proxies shall be used for votes taken to waive or reduce |
| 361 | reserves in accordance with subparagraph (f)2.; for votes taken |
| 362 | to waive the financial reporting requirements of s. 718.111(13); |
| 363 | for votes taken to amend the declaration pursuant to s. 718.110; |
| 364 | for votes taken to amend the articles of incorporation or bylaws |
| 365 | pursuant to this section; and for any other matter for which |
| 366 | this chapter requires or permits a vote of the unit owners. |
| 367 | Except as provided in paragraph (d), after January 1, 1992, no |
| 368 | proxy, limited or general, shall be used in the election of |
| 369 | board members. General proxies may be used for other matters for |
| 370 | which limited proxies are not required, and may also be used in |
| 371 | voting for nonsubstantive changes to items for which a limited |
| 372 | proxy is required and given. Notwithstanding the provisions of |
| 373 | this subparagraph, unit owners may vote in person at unit owner |
| 374 | meetings. Nothing contained herein shall limit the use of |
| 375 | general proxies or require the use of limited proxies for any |
| 376 | agenda item or election at any meeting of a timeshare |
| 377 | condominium association. |
| 378 | 3. Any proxy given shall be effective only for the |
| 379 | specific meeting for which originally given and any lawfully |
| 380 | adjourned meetings thereof. In no event shall any proxy be valid |
| 381 | for a period longer than 90 days after the date of the first |
| 382 | meeting for which it was given. Every proxy is revocable at any |
| 383 | time at the pleasure of the unit owner executing it. |
| 384 | 4. A member of the board of administration or a committee |
| 385 | may submit in writing his or her agreement or disagreement with |
| 386 | any action taken at a meeting that the member did not attend. |
| 387 | This agreement or disagreement may not be used as a vote for or |
| 388 | against the action taken and may not be used for the purposes of |
| 389 | creating a quorum. |
| 390 | 5. When any of the board or committee members meet by |
| 391 | telephone conference, those board or committee members attending |
| 392 | by telephone conference may be counted toward obtaining a quorum |
| 393 | and may vote by telephone. A telephone speaker must be used so |
| 394 | that the conversation of those board or committee members |
| 395 | attending by telephone may be heard by the board or committee |
| 396 | members attending in person as well as by any unit owners |
| 397 | present at a meeting. |
| 398 | (d) Unit owner meetings.-- |
| 399 | 1. There shall be an annual meeting of the unit owners. |
| 400 | Unless the bylaws provide otherwise, a vacancy on the board |
| 401 | caused by the expiration of a director's term shall be filled by |
| 402 | electing a new board member, and the election shall be by secret |
| 403 | ballot; however, if the number of vacancies equals or exceeds |
| 404 | the number of candidates, no election is required. If there is |
| 405 | no provision in the bylaws for terms of the members of the |
| 406 | board, The terms of all members of the board shall expire upon |
| 407 | the election of their successors at the annual meeting. Members |
| 408 | may stand for reelection. There shall be no limit to the number |
| 409 | of times a board member may be reelected. Coowners of a unit may |
| 410 | not serve as members of the board at the same time. Any unit |
| 411 | owner desiring to be a candidate for board membership shall |
| 412 | comply with subparagraph 3. A person who has been convicted of |
| 413 | any felony by any court of record in the United States and who |
| 414 | has not had his or her right to vote restored pursuant to law in |
| 415 | the jurisdiction of his or her residence is not eligible for |
| 416 | board membership. The validity of an action by the board is not |
| 417 | affected if it is later determined that a member of the board is |
| 418 | ineligible for board membership due to having been convicted of |
| 419 | a felony. |
| 420 | 2. The bylaws shall provide the method of calling meetings |
| 421 | of unit owners, including annual meetings. Written notice, which |
| 422 | notice must include an agenda, shall be mailed, hand delivered, |
| 423 | or electronically transmitted to each unit owner at least 14 |
| 424 | days prior to the annual meeting and shall be posted in a |
| 425 | conspicuous place on the condominium property at least 14 |
| 426 | continuous days preceding the annual meeting. Upon notice to the |
| 427 | unit owners, the board shall by duly adopted rule designate a |
| 428 | specific location on the condominium property or association |
| 429 | property upon which all notices of unit owner meetings shall be |
| 430 | posted; however, if there is no condominium property or |
| 431 | association property upon which notices can be posted, this |
| 432 | requirement does not apply. In lieu of or in addition to the |
| 433 | physical posting of notice of any meeting of the unit owners on |
| 434 | the condominium property, the association may, by reasonable |
| 435 | rule, adopt a procedure for conspicuously posting and repeatedly |
| 436 | broadcasting the notice and the agenda on a closed-circuit cable |
| 437 | television system serving the condominium association. However, |
| 438 | if broadcast notice is used in lieu of a notice posted |
| 439 | physically on the condominium property, the notice and agenda |
| 440 | must be broadcast at least four times every broadcast hour of |
| 441 | each day that a posted notice is otherwise required under this |
| 442 | section. When broadcast notice is provided, the notice and |
| 443 | agenda must be broadcast in a manner and for a sufficient |
| 444 | continuous length of time so as to allow an average reader to |
| 445 | observe the notice and read and comprehend the entire content of |
| 446 | the notice and the agenda. Unless a unit owner waives in writing |
| 447 | the right to receive notice of the annual meeting, such notice |
| 448 | shall be hand delivered, mailed, or electronically transmitted |
| 449 | to each unit owner. Notice for meetings and notice for all other |
| 450 | purposes shall be mailed to each unit owner at the address last |
| 451 | furnished to the association by the unit owner, or hand |
| 452 | delivered to each unit owner. However, if a unit is owned by |
| 453 | more than one person, the association shall provide notice, for |
| 454 | meetings and all other purposes, to that one address which the |
| 455 | developer initially identifies for that purpose and thereafter |
| 456 | as one or more of the owners of the unit shall so advise the |
| 457 | association in writing, or if no address is given or the owners |
| 458 | of the unit do not agree, to the address provided on the deed of |
| 459 | record. An officer of the association, or the manager or other |
| 460 | person providing notice of the association meeting, shall |
| 461 | provide an affidavit or United States Postal Service certificate |
| 462 | of mailing, to be included in the official records of the |
| 463 | association affirming that the notice was mailed or hand |
| 464 | delivered, in accordance with this provision. |
| 465 | 3. The members of the board shall be elected by written |
| 466 | ballot or voting machine. Proxies shall in no event be used in |
| 467 | electing the board, either in general elections or elections to |
| 468 | fill vacancies caused by recall, resignation, or otherwise, |
| 469 | unless otherwise provided in this chapter. Not less than 60 days |
| 470 | before a scheduled election, the association shall mail, |
| 471 | deliver, or electronically transmit, whether by separate |
| 472 | association mailing or included in another association mailing, |
| 473 | delivery, or transmission, including regularly published |
| 474 | newsletters, to each unit owner entitled to a vote, a first |
| 475 | notice of the date of the election. Any unit owner or other |
| 476 | eligible person desiring to be a candidate for the board must |
| 477 | give written notice to the association not less than 40 days |
| 478 | before a scheduled election. Together with the written notice |
| 479 | and agenda as set forth in subparagraph 2., the association |
| 480 | shall mail, deliver, or electronically transmit a second notice |
| 481 | of the election to all unit owners entitled to vote therein, |
| 482 | together with a ballot which shall list all candidates. Upon |
| 483 | request of a candidate, the association shall include an |
| 484 | information sheet, no larger than 81/2 inches by 11 inches, |
| 485 | which must be furnished by the candidate not less than 35 days |
| 486 | before the election, to be included with the mailing, delivery, |
| 487 | or transmission of the ballot, with the costs of mailing, |
| 488 | delivery, or electronic transmission and copying to be borne by |
| 489 | the association. The association is not liable for the contents |
| 490 | of the information sheets prepared by the candidates. In order |
| 491 | to reduce costs, the association may print or duplicate the |
| 492 | information sheets on both sides of the paper. The division |
| 493 | shall by rule establish voting procedures consistent with the |
| 494 | provisions contained herein, including rules establishing |
| 495 | procedures for giving notice by electronic transmission and |
| 496 | rules providing for the secrecy of ballots. Elections shall be |
| 497 | decided by a plurality of those ballots cast. There shall be no |
| 498 | quorum requirement; however, at least 20 percent of the eligible |
| 499 | voters must cast a ballot in order to have a valid election of |
| 500 | members of the board. No unit owner shall permit any other |
| 501 | person to vote his or her ballot, and any such ballots |
| 502 | improperly cast shall be deemed invalid, provided any unit owner |
| 503 | who violates this provision may be fined by the association in |
| 504 | accordance with s. 718.303. A unit owner who needs assistance in |
| 505 | casting the ballot for the reasons stated in s. 101.051 may |
| 506 | obtain assistance in casting the ballot. The regular election |
| 507 | shall occur on the date of the annual meeting. The provisions of |
| 508 | this subparagraph shall not apply to timeshare condominium |
| 509 | associations. Notwithstanding the provisions of this |
| 510 | subparagraph, an election is not required unless more candidates |
| 511 | file notices of intent to run or are nominated than board |
| 512 | vacancies exist. |
| 513 | 4. Any approval by unit owners called for by this chapter |
| 514 | or the applicable declaration or bylaws, including, but not |
| 515 | limited to, the approval requirement in s. 718.111(8), shall be |
| 516 | made at a duly noticed meeting of unit owners and shall be |
| 517 | subject to all requirements of this chapter or the applicable |
| 518 | condominium documents relating to unit owner decisionmaking, |
| 519 | except that unit owners may take action by written agreement, |
| 520 | without meetings, on matters for which action by written |
| 521 | agreement without meetings is expressly allowed by the |
| 522 | applicable bylaws or declaration or any statute that provides |
| 523 | for such action. |
| 524 | 5. Unit owners may waive notice of specific meetings if |
| 525 | allowed by the applicable bylaws or declaration or any statute. |
| 526 | If authorized by the bylaws, notice of meetings of the board of |
| 527 | administration, unit owner meetings, except unit owner meetings |
| 528 | called to recall board members under paragraph (j), and |
| 529 | committee meetings may be given by electronic transmission to |
| 530 | unit owners who consent to receive notice by electronic |
| 531 | transmission. |
| 532 | 6. Unit owners shall have the right to participate in |
| 533 | meetings of unit owners with reference to all designated agenda |
| 534 | items. However, the association may adopt reasonable rules |
| 535 | governing the frequency, duration, and manner of unit owner |
| 536 | participation. |
| 537 | 7. Any unit owner may tape record or videotape a meeting |
| 538 | of the unit owners subject to reasonable rules adopted by the |
| 539 | division. |
| 540 | 8. Unless otherwise provided in the bylaws, any vacancy |
| 541 | occurring on the board before the expiration of a term may be |
| 542 | filled by the affirmative vote of the majority of the remaining |
| 543 | directors, even if the remaining directors constitute less than |
| 544 | a quorum, or by the sole remaining director. In the alternative, |
| 545 | a board may hold an election to fill the vacancy, in which case |
| 546 | the election procedures must conform to the requirements of |
| 547 | subparagraph 3. unless the association has opted out of the |
| 548 | statutory election process, in which case the bylaws of the |
| 549 | association control. Unless otherwise provided in the bylaws, a |
| 550 | board member appointed or elected under this section shall fill |
| 551 | the vacancy for the unexpired term of the seat being filled. |
| 552 | Filling vacancies created by recall is governed by paragraph (j) |
| 553 | and rules adopted by the division. |
| 554 |
|
| 555 | Notwithstanding subparagraphs (b)2. and (d)3., an association |
| 556 | may, by the affirmative vote of a majority of the total voting |
| 557 | interests, provide for different voting and election procedures |
| 558 | in its bylaws, which vote may be by a proxy specifically |
| 559 | delineating the different voting and election procedures. The |
| 560 | different voting and election procedures may provide for |
| 561 | elections to be conducted by limited or general proxy. |
| 562 | (f) Annual budget.-- |
| 563 | 1. The proposed annual budget of common expenses shall be |
| 564 | detailed and shall show the amounts budgeted by accounts and |
| 565 | expense classifications, including, if applicable, but not |
| 566 | limited to, those expenses listed in s. 718.504(21). A |
| 567 | multicondominium association shall adopt a separate budget of |
| 568 | common expenses for each condominium the association operates |
| 569 | and shall adopt a separate budget of common expenses for the |
| 570 | association. In addition, if the association maintains limited |
| 571 | common elements with the cost to be shared only by those |
| 572 | entitled to use the limited common elements as provided for in |
| 573 | s. 718.113(1), the budget or a schedule attached thereto shall |
| 574 | show amounts budgeted therefor. If, after turnover of control of |
| 575 | the association to the unit owners, any of the expenses listed |
| 576 | in s. 718.504(21) are not applicable, they need not be listed. |
| 577 | 2. In addition to annual operating expenses, the budget |
| 578 | shall include reserve accounts for capital expenditures and |
| 579 | deferred maintenance for the improvements that have already been |
| 580 | made. These accounts shall include, but are not limited to, roof |
| 581 | replacement, building painting, and pavement resurfacing, |
| 582 | regardless of the amount of deferred maintenance expense or |
| 583 | replacement cost, and for any other item for which the deferred |
| 584 | maintenance expense or replacement cost exceeds $10,000. The |
| 585 | amount to be reserved shall be computed by means of a formula |
| 586 | which is based upon estimated remaining useful life and |
| 587 | estimated replacement cost or deferred maintenance expense of |
| 588 | each reserve item. The association shall may adjust replacement |
| 589 | reserve assessments annually to take into account any changes in |
| 590 | estimates or extension of the useful life of a reserve item |
| 591 | caused by deferred maintenance. An association not in compliance |
| 592 | with this subparagraph as of January 1, 2006, shall have until |
| 593 | January 1, 2011, to meet the requirements of this subparagraph. |
| 594 | This subsection does not apply to an adopted budget in which the |
| 595 | members of an association have determined, by a majority vote at |
| 596 | a duly called meeting of the association, to provide no reserves |
| 597 | or less reserves than required by this subsection. However, |
| 598 | prior to turnover of control of an association by a developer to |
| 599 | unit owners other than a developer pursuant to s. 718.301, the |
| 600 | developer may vote to waive the reserves or reduce the funding |
| 601 | of reserves for the first 2 fiscal years of the association's |
| 602 | operation, beginning with the fiscal year in which the initial |
| 603 | declaration is recorded, after which time reserves may be waived |
| 604 | or reduced only upon the vote of a majority of all nondeveloper |
| 605 | voting interests voting in person or by limited proxy at a duly |
| 606 | called meeting of the association. If a meeting of the unit |
| 607 | owners has been called to determine whether to waive or reduce |
| 608 | the funding of reserves, and no such result is achieved or a |
| 609 | quorum is not attained, the reserves as included in the budget |
| 610 | shall go into effect. After the turnover, the developer may vote |
| 611 | its voting interest to waive or reduce the funding of reserves. |
| 612 | 3. Reserve funds and any interest accruing thereon shall |
| 613 | remain in the reserve account or accounts, and shall be used |
| 614 | only for authorized reserve expenditures unless their use for |
| 615 | other purposes is approved in advance by a majority vote at a |
| 616 | duly called meeting of the association. Prior to turnover of |
| 617 | control of an association by a developer to unit owners other |
| 618 | than the developer pursuant to s. 718.301, the developer- |
| 619 | controlled association shall not vote to use reserves for |
| 620 | purposes other than that for which they were intended without |
| 621 | the approval of a majority of all nondeveloper voting interests, |
| 622 | voting in person or by limited proxy at a duly called meeting of |
| 623 | the association. |
| 624 | 4. The only voting interests which are eligible to vote on |
| 625 | questions that involve waiving or reducing the funding of |
| 626 | reserves, or using existing reserve funds for purposes other |
| 627 | than purposes for which the reserves were intended, are the |
| 628 | voting interests of the units subject to assessment to fund the |
| 629 | reserves in question. |
| 630 | 5. Notwithstanding the provisions of subparagraph 3., the |
| 631 | association after turnover may, in case of a catastrophic event, |
| 632 | use reserve funds for nonscheduled purposes to mitigate further |
| 633 | damage to units or common elements or to make the condominium |
| 634 | accessible for repairs. |
| 635 | Section 9. Subsection (5) of section 718.113, Florida |
| 636 | Statutes, is amended to read: |
| 637 | 718.113 Maintenance; limitation upon improvement; display |
| 638 | of flag; hurricane shutters.-- |
| 639 | (5) Each board of administration shall adopt hurricane |
| 640 | shutter specifications for each building within each condominium |
| 641 | operated by the association which shall include color, style, |
| 642 | and other factors deemed relevant by the board. All |
| 643 | specifications adopted by the board shall comply with the |
| 644 | applicable building code. Notwithstanding any provision to the |
| 645 | contrary in the condominium documents, if approval is required |
| 646 | by the documents, a board shall not refuse to approve the |
| 647 | installation or replacement of hurricane shutters conforming to |
| 648 | the specifications adopted by the board. The board may, subject |
| 649 | to the provisions of s. 718.3026, and the approval of a majority |
| 650 | of voting interests of the condominium, install hurricane |
| 651 | shutters or hurricane protection that complies with or exceeds |
| 652 | the applicable building code and may maintain, repair, or |
| 653 | replace such approved hurricane shutters, whether on or within |
| 654 | common elements, limited common elements, units, or association |
| 655 | property. However, where laminated glass or window film |
| 656 | architecturally designed to function as hurricane protection |
| 657 | which complies with the applicable building code has been |
| 658 | installed, the board may not install hurricane shutters. The |
| 659 | board may operate shutters installed pursuant to this subsection |
| 660 | without permission of the unit owners only where such operation |
| 661 | is necessary to preserve and protect the condominium property |
| 662 | and association property. The installation, replacement, |
| 663 | operation, repair, and maintenance of such shutters in |
| 664 | accordance with the procedures set forth herein shall not be |
| 665 | deemed a material alteration to the common elements or |
| 666 | association property within the meaning of this section. |
| 667 | Section 10. Subsection (4) is added to section 718.303, |
| 668 | Florida Statutes, to read: |
| 669 | 718.303 Obligations of owners; waiver; levy of fine |
| 670 | against unit by association.-- |
| 671 | (4) Anyone subject to an action under this section shall |
| 672 | be notified of the violation by certified mail, return receipt |
| 673 | requested, and, except in the case of imminent danger to person |
| 674 | or property, shall have 30 days in which to respond in writing. |
| 675 | If no response is provided and the violation continues or is |
| 676 | repeated, the association may proceed without further notice |
| 677 | except as provided in subsection (3). |
| 678 | Section 11. Subsection (1) of section 718.50151, Florida |
| 679 | Statutes, is amended to read: |
| 680 | 718.50151 Advisory council; membership functions.-- |
| 681 | (1) There is created the Advisory Council on Condominiums. |
| 682 | The council shall consist of seven appointed members. Two |
| 683 | members shall be appointed by the President of the Senate, two |
| 684 | members shall be appointed by the Speaker of the House of |
| 685 | Representatives, and three members shall be appointed by the |
| 686 | Governor. At least one member that is appointed by the Governor |
| 687 | shall represent timeshare condominiums. Members shall be |
| 688 | appointed to 2-year terms; however, one of the persons initially |
| 689 | appointed by the Governor, by the President of the Senate, and |
| 690 | by the Speaker of the House of Representatives shall be |
| 691 | appointed to a 1-year term. The director of the division shall |
| 692 | appoint a designee to serve as an ex officio nonvoting member. |
| 693 | The Legislature intends that the persons appointed represent a |
| 694 | cross-section of persons interested in condominium issues. The |
| 695 | council shall be located within the division for administrative |
| 696 | purposes. Members of the council shall serve without |
| 697 | compensation but are entitled to receive per diem and travel |
| 698 | expenses pursuant to s. 112.061 while on official business. |
| 699 | Section 12. Paragraph (b) of subsection (4) of section |
| 700 | 719.104, Florida Statutes, is amended to read: |
| 701 | 719.104 Cooperatives; access to units; records; financial |
| 702 | reports; assessments; purchase of leases.-- |
| 703 | (4) FINANCIAL REPORT.-- |
| 704 | (b) The division shall adopt rules that may require that |
| 705 | the association deliver to the unit owners, in lieu of the |
| 706 | financial report required by this section, a complete set of |
| 707 | financial statements for the preceding fiscal year. The |
| 708 | financial statements shall be delivered within 90 days following |
| 709 | the end of the previous fiscal year or annually on such other |
| 710 | date as provided in the bylaws. The rules of the division may |
| 711 | require that the financial statements be compiled, reviewed, or |
| 712 | audited, and the rules shall take into consideration the |
| 713 | criteria set forth in s. 719.501(1)(j). The requirement to have |
| 714 | the financial statements compiled, reviewed, or audited does not |
| 715 | apply to associations if a majority of the voting interests of |
| 716 | the association present at a duly called meeting of the |
| 717 | association have determined for a fiscal year to waive this |
| 718 | requirement. In an association in which turnover of control by |
| 719 | the developer has not occurred, the developer may vote to waive |
| 720 | the audit requirement for the first 2 years of the operation of |
| 721 | the association, after which time, waiver of an applicable audit |
| 722 | requirement shall be by a majority of voting interests other |
| 723 | than the developer. In no event shall an association waive its |
| 724 | requirement for an audit, if applicable, for more than 2 |
| 725 | consecutive years. The meeting shall be held prior to the end of |
| 726 | the fiscal year, and the waiver shall be effective for only one |
| 727 | fiscal year. This subsection does not apply to a cooperative |
| 728 | that consists of 50 or fewer units. |
| 729 | Section 13. Subsection (7) is added to section 719.1055, |
| 730 | Florida Statutes, to read: |
| 731 | 719.1055 Amendment of cooperative documents; alteration |
| 732 | and acquisition of property.-- |
| 733 | (7) Any amendment restricting cooperative unit owners' |
| 734 | rights relating to the rental of units applies only to unit |
| 735 | owners who consent to the amendment and unit owners who purchase |
| 736 | their units after the effective date of that amendment. |
| 737 | Section 14. This act shall take effect July 1, 2005. |