Amendment
Bill No. 0391

Amendment No. 868519

CHAMBER ACTION
Senate		House
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1	Representative Domino offered the following:
2
3	Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5	Section 1.  Section 712.11, Florida Statutes, is created to
6	read:
7	712.11  Covenant revitalization.--A homeowners' association
8	not otherwise subject to chapter 720 may use the procedures set
9	forth in ss. 720.403-720.407 to revive covenants that have
10	lapsed under the terms of this chapter.
11	Section 2.  Subsection (5) is added to section 718.106,
12	Florida Statutes, to read:
13	718.106  Condominium parcels; appurtenances; possession and
14	enjoyment.--
15	(5)  A local government may not prohibit condominium unit
16	owners or an association from permitting guests, licensees, or
17	invitees access to a public beach adjacent to or adjoining the
18	condominium property.
19	Section 3.  Effective October 1, 2006, subsection (11) of
20	section 718.110, Florida Statutes, is amended to read:
21	718.110  Amendment of declaration; correction of error or
22	omission in declaration by circuit court.--
23	(11)  The Legislature finds that the procurement of
24	mortgagee consent to amendments that do not affect the rights or
25	interests of mortgagees is an unreasonable and substantial
26	logistical and financial burden on the unit owners and that
27	there is a compelling state interest in enabling the members of
28	a condominium association to approve amendments to the
29	condominium documents through legal means. Accordingly, and
30	notwithstanding any provision to the contrary contained in this
31	section:
32	(a)  As to any mortgage recorded on or after October 1,
33	2006, any provision in the declaration, articles of
34	incorporation, or bylaws that requires recorded after April 1,
35	1992, may not require the consent or joinder of some or all
36	mortgagees of units or any other portion of the condominium
37	property to or in amendments to the declaration, articles of
38	incorporation, or bylaws or for any other matter shall be
39	enforceable only as to the following matters: unless the
40	requirement is limited to amendments materially affecting the
41	rights or interests of the mortgagees, or as otherwise required
42	by the Federal National Mortgage Association or the Federal Home
43	Loan Mortgage Corporation, and unless the requirement provides
44	that such consent may not be unreasonably withheld. It shall be
45	presumed that, except as to
46	1.  Those matters described in subsections (4) and (8).,
47	2.  Amendments to the declaration, articles of
48	incorporation, or bylaws that adversely affect the priority of
49	the mortgagee's lien or the mortgagee's rights to foreclose its
50	lien or that otherwise materially affect the rights and
51	interests of the mortgagees.
52	(b)  As to mortgages recorded before October 1, 2006, any
53	existing provisions in the declaration, articles of
54	incorporation, or bylaws requiring mortgagee consent shall be
55	enforceable.
56	(c)  In securing consent or joinder, the association shall
57	be entitled to rely upon the public records to identify the
58	holders of outstanding mortgages. The association may use the
59	address provided in the original recorded mortgage document,
60	unless there is a different address for the holder of the
61	mortgage in a recorded assignment or modification of the
62	mortgage, which recorded assignment or modification must
63	reference the official records book and page on which the
64	original mortgage was recorded. Once the association has
65	identified the recorded mortgages of record, the association
66	shall, in writing, request of each unit owner whose unit is
67	encumbered by a mortgage of record any information the owner has
68	in his or her possession regarding the name and address of the
69	person to whom mortgage payments are currently being made.
70	Notice shall be sent to such person if the address provided in
71	the original recorded mortgage document is different from the
72	name and address of the mortgagee or assignee of the mortgage as
73	shown by the public record. The association shall be deemed to
74	have complied with this requirement by making the written
75	request of the unit owners required under this paragraph. Any
76	notices required to be sent to the mortgagees under this
77	paragraph shall be sent to all available addresses provided to
78	the association.
79	(d)  Any notice to the mortgagees required under paragraph
80	(c) may be sent by a method that establishes proof of delivery,
81	and any mortgagee who fails to respond within 60 days after the
82	date of mailing shall be deemed to have consented to the
83	amendment.
84	(e)  For those amendments requiring mortgagee consent on or
85	after October 1, 2006, do not materially affect the rights or
86	interests of mortgagees. in the event mortgagee consent is
87	provided other than by properly recorded joinder, such consent
88	shall be evidenced by affidavit of the association recorded in
89	the public records of the county where the declaration is
90	recorded. Any amendment adopted without the required consent of
91	a mortgagee shall be voidable only by a mortgagee who was
92	entitled to notice and an opportunity to consent. An action to
93	void an amendment shall be subject to the statute of limitations
94	beginning 5 years from the date of discovery as to the
95	amendments described in subparagraphs (a)1. and 2. and 5 years
96	from the date of recordation of the certificate of amendment for
97	all other amendments. This provision shall apply to all
98	mortgages, regardless of the date of recordation of the
99	mortgage.
100	Section 4.  Paragraph (l) of subsection (2) of section
101	718.112, Florida Statutes, is amended to read:
102	718.112  Bylaws.--
103	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
104	following and, if they do not do so, shall be deemed to include
105	the following:
106	(l)  Certificate of compliance.--There shall be a provision
107	that a certificate of compliance from a licensed electrical
108	contractor or electrician may be accepted by the association's
109	board as evidence of compliance of the condominium units with
110	the applicable fire and life safety code. Notwithstanding the
111	provisions of chapter 633 or of any other code, statute,
112	ordinance, administrative rule, or regulation, or any
113	interpretation of the foregoing, an association, condominium, or
114	unit owner is not obligated to retrofit the common elements or
115	units of a residential condominium with a fire sprinkler system
116	or other engineered lifesafety system in a building that has
117	been certified for occupancy by the applicable governmental
118	entity, if the unit owners have voted to forego such
119	retrofitting and engineered lifesafety system by the affirmative
120	vote of two-thirds of all voting interests in the affected
121	condominium. However, a condominium association may not vote to
122	forego the retrofitting with a fire sprinkler system of common
123	areas in a high-rise building. For purposes of this subsection,
124	the term "high-rise building" means a building that is greater
125	than 75 feet in height where the building height is measured
126	from the lowest level of fire department access to the floor of
127	the highest occupiable story. For purposes of this subsection,
128	the term "common areas" means any enclosed hallway, corridor,
129	lobby, stairwell, or entryway. In no event shall the local
130	authority having jurisdiction require completion of retrofitting
131	of common areas with a sprinkler system before the end of 2025
132	2014.
133	1.  A vote to forego retrofitting may be obtained by
134	limited proxy or by a ballot personally cast at a duly called
135	membership meeting, or by execution of a written consent by the
136	member, and shall be effective upon the recording of a
137	certificate attesting to such vote in the public records of the
138	county where the condominium is located. The association shall
139	mail, hand deliver, or electronically transmit to each unit
140	owner written notice at least 14 days prior to such membership
141	meeting in which the vote to forego retrofitting of the required
142	fire sprinkler system is to take place. Within 30 days after the
143	association's opt-out vote, notice of the results of the opt-out
144	vote shall be mailed, hand delivered, or electronically
145	transmitted to all unit owners. Evidence of compliance with this
146	30-day notice shall be made by an affidavit executed by the
147	person providing the notice and filed among the official records
148	of the association. After such notice is provided to each owner,
149	a copy of such notice shall be provided by the current owner to
150	a new owner prior to closing and shall be provided by a unit
151	owner to a renter prior to signing a lease.
152	2.  As part of the information collected annually from
153	condominiums, the division shall require condominium
154	associations to report the membership vote and recording of a
155	certificate under this subsection and, if retrofitting has been
156	undertaken, the per-unit cost of such work. The division shall
157	annually report to the Division of State Fire Marshal of the
158	Department of Financial Services the number of condominiums that
159	have elected to forego retrofitting.
160	Section 5.  Section 718.114, Florida Statutes, is amended
161	to read:
162	718.114  Association powers.--An association has the power
163	to enter into agreements, to acquire leaseholds, memberships,
164	and other possessory or use interests in lands or facilities
165	such as country clubs, golf courses, marinas, and other
166	recreational facilities. It has this power whether or not the
167	lands or facilities are contiguous to the lands of the
168	condominium, if they are intended to provide enjoyment,
169	recreation, or other use or benefit to the unit owners. All of
170	these leaseholds, memberships, and other possessory or use
171	interests existing or created at the time of recording the
172	declaration must be stated and fully described in the
173	declaration. Subsequent to the recording of the declaration,
174	agreements acquiring these leaseholds, memberships, or other
175	possessory or use interests not entered into within 12 months
176	following the recording of the declaration shall be considered a
177	material alteration or substantial addition to the real property
178	that is association property, and the association may not
179	acquire or enter into agreements acquiring these leaseholds,
180	memberships, or other possessory or use interests except as
181	authorized by the declaration as provided in s. 718.113. The
182	declaration may provide that the rental, membership fees,
183	operations, replacements, and other expenses are common expenses
184	and may impose covenants and restrictions concerning their use
185	and may contain other provisions not inconsistent with this
186	chapter. A condominium association may conduct bingo games as
187	provided in s. 849.0931.
188	Section 6.  Subsections (1) and (2) of section 718.404,
189	Florida Statutes, are amended to read:
190	718.404  Mixed-use condominiums.--When a condominium
191	consists of both residential and commercial units, the following
192	provisions shall apply:
193	(1)  The condominium documents shall not provide that the
194	owner of any commercial unit shall have the authority to veto
195	amendments to the declaration, articles of incorporation,
196	bylaws, or rules or regulations of the association. This
197	subsection shall apply retroactively as a remedial measure.
198	(2)  Subject to s. 718.301, where the number of residential
199	units in the condominium equals or exceeds 50 percent of the
200	total units operated by the association, owners of the
201	residential units shall be entitled to vote for a majority of
202	the seats on the board of administration. This subsection shall
203	apply retroactively as a remedial measure.
204	Section 7.  Subsections (18) through (27) of section
205	719.103, Florida Statutes, are renumbered as subsections (19)
206	through (28), respectively, and a new subsection (18) is added
207	to that section to read:
208	719.103  Definitions.--As used in this chapter:
209	(18)  "Equity facilities club" means a club comprised of
210	recreational facilities in which proprietary membership
211	interests are sold to individuals, which membership interests
212	entitle the individuals to use certain physical facilities owned
213	by the equity club. Such physical facilities do not include a
214	residential unit or accommodation. For purposes of this
215	definition, the term "accommodation" shall include, but is not
216	limited to, any apartment, residential cooperative unit,
217	residential condominium unit, cabin, lodge, hotel or motel room,
218	or any other accommodation designed for overnight occupancy for
219	one or more individuals.
220	Section 8.  Section 719.507, Florida Statutes, is amended
221	to read:
222	719.507  Zoning and building laws, ordinances, and
223	regulations.--All laws, ordinances, and regulations concerning
224	buildings or zoning shall be construed and applied with
225	reference to the nature and use of such property, without regard
226	to the form of ownership. No law, ordinance, or regulation shall
227	establish any requirement concerning the use, location,
228	placement, or construction of buildings or other improvements
229	which are, or may thereafter be, subjected to the cooperative or
230	equity facilities club form of ownership, unless such
231	requirement shall be equally applicable to all buildings and
232	improvements of the same kind not then, or thereafter to be,
233	subjected to the cooperative or equity facilities club form of
234	ownership. This section does not apply if the owner in fee of
235	any land enters into and records a covenant that existing
236	improvements or improvements to be constructed shall not be
237	converted to the cooperative form of residential ownership prior
238	to 5 years after the later of the date of the covenant or
239	completion date of the improvements. Such covenant shall be
240	entered into with the governing body of the municipality in
241	which the land is located or, if the land is not located in a
242	municipality, with the governing body of the county in which the
243	land is located.
244	Section 9.  Subsections (4) and (5) of section 720.302,
245	Florida Statutes, are amended to read:
246	720.302  Purposes, scope, and application.--
247	(4)  This chapter does not apply to any association that is
248	subject to regulation under chapter 718, chapter 719, or chapter
249	721; or to any nonmandatory association formed under chapter
250	723, except to the extent that a provision of chapter 718,
251	chapter 719, or chapter 721 is expressly incorporated into this
252	chapter for the purpose of regulating homeowners' associations.
253	(5)  Unless expressly stated to the contrary, corporations
254	not for profit that operate residential homeowners' associations
255	in this state shall be governed by and subject to chapter 607,
256	if the association was incorporated under that chapter, or to
257	chapter 617, if the association was incorporated under that
258	chapter, and this chapter. This subsection is intended to
259	clarify existing law.
260	Section 10.  Paragraph (a) of subsection (2), subsection
261	(6), and subsection (7) of section 720.303, Florida Statutes, as
262	amended by section 18 of chapter 2004-345 and section 135 of
263	chapter 2005-2, Laws of Florida, are amended, and paragraph (d)
264	is added to subsection (5) of that section, to read:
265	720.303  Association powers and duties; meetings of board;
266	official records; budgets; financial reporting; association
267	funds; recalls.--
268	(2)  BOARD MEETINGS.--
269	(a)  A meeting of the board of directors of an association
270	occurs whenever a quorum of the board gathers to conduct
271	association business. All meetings of the board must be open to
272	all members except for meetings between the board and its
273	attorney with respect to proposed or pending litigation where
274	the contents of the discussion would otherwise be governed by
275	the attorney-client privilege. The provisions of this subsection
276	shall also apply to the meetings of any committee or other
277	similar body when a final decision will be made regarding the
278	expenditure of association funds and to meetings of any body
279	vested with the power to approve or disapprove architectural
280	decisions with respect to a specific parcel of residential
281	property owned by a member of the community.
282	(5)  INSPECTION AND COPYING OF RECORDS.--The official
283	records shall be maintained within the state and must be open to
284	inspection and available for photocopying by members or their
285	authorized agents at reasonable times and places within 10
286	business days after receipt of a written request for access.
287	This subsection may be complied with by having a copy of the
288	official records available for inspection or copying in the
289	community. If the association has a photocopy machine available
290	where the records are maintained, it must provide parcel owners
291	with copies on request during the inspection if the entire
292	request is limited to no more than 25 pages.
293	(d)  The association or its authorized agent is not
294	required to provide a prospective purchaser or lienholder with
295	information about the residential subdivision or the association
296	other than information or documents required by this chapter to
297	be made available or disclosed. The association or its
298	authorized agent may charge a reasonable fee to the prospective
299	purchaser or lienholder or the current parcel owner or member
300	for providing good faith responses to requests for information
301	by or on behalf of a prospective purchaser or lienholder, other
302	than that required by law, if the fee does not exceed $150 plus
303	the reasonable cost of photocopying and any attorney's fees
304	incurred by the association in connection with the response.
305	(6)  BUDGETS.--
306	(a)  The association shall prepare an annual budget that
307	sets out the annual operating expenses. The budget must reflect
308	the estimated revenues and expenses for that year and the
309	estimated surplus or deficit as of the end of the current year.
310	The budget must set out separately all fees or charges paid for
311	by the association for recreational amenities, whether owned by
312	the association, the developer, or another person. The
313	association shall provide each member with a copy of the annual
314	budget or a written notice that a copy of the budget is
315	available upon request at no charge to the member. The copy must
316	be provided to the member within the time limits set forth in
317	subsection (5).
318	(b)  In addition to annual operating expenses, the budget
319	may include reserve accounts for capital expenditures and
320	deferred maintenance for which the association is responsible to
321	the extent that the governing documents do not limit increases
322	in assessments, including reserves. If the budget of the
323	association includes reserve accounts, such reserves shall be
324	determined, maintained, and waived in the manner provided in
325	this subsection. Once an association provides for reserve
326	accounts in the budget, the association shall thereafter
327	determine, maintain, and waive reserves in compliance with the
328	provisions of this subsection.
329	(c)  If the budget of the association does not provide for
330	reserve accounts governed by this subsection and the association
331	is responsible for the repair and maintenance of capital
332	improvements that may result in a special assessment if reserves
333	are not provided, each financial report for the preceding fiscal
334	year required by subsection (7) shall contain the following
335	statement in conspicuous type: THE BUDGET OF THE ASSOCIATION
336	DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES
337	AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
338	OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE
339	PROVISIONS OF SECTION 720.303(6), FLORIDA STATUTES, UPON THE
340	APPROVAL OF NOT LESS THAN A MAJORITY OF THE TOTAL VOTING
341	INTERESTS OF THE ASSOCIATION.
342	(d)  An association shall be deemed to have provided for
343	reserve accounts when reserve accounts have been initially
344	established by the developer or when the membership of the
345	association affirmatively elects to provide for reserves. If
346	reserve accounts are not initially provided for by the
347	developer, the membership of the association may elect to do so
348	upon the affirmative approval of not less than a majority of the
349	total voting interests of the association. Such approval may be
350	attained by vote of the members at a duly called meeting of the
351	membership or upon a written consent executed by not less than a
352	majority of the total voting interests in the community. The
353	approval action of the membership shall state that reserve
354	accounts shall be provided for in the budget and designate the
355	components for which the reserve accounts are to be established.
356	Upon approval by the membership, the board of directors shall
357	provide for the required reserve accounts for inclusion in the
358	budget in the next fiscal year following the approval and in
359	each year thereafter. Once established as provided in this
360	subsection, the reserve accounts shall be funded or maintained
361	or shall have their funding waived in the manner provided in
362	paragraph (f).
363	(e)  The amount to be reserved in any account established
364	shall be computed by means of a formula that is based upon
365	estimated remaining useful life and estimated replacement cost
366	or deferred maintenance expense of each reserve item. The
367	association may adjust replacement reserve assessments annually
368	to take into account any changes in estimates of cost or useful
369	life of a reserve item.
370	(f)  Once a reserve account or reserve accounts are
371	established, the membership of the association, upon a majority
372	vote at a meeting at which a quorum is present, may provide for
373	no reserves or less reserves than required by this section. If a
374	meeting of the unit owners has been called to determine whether
375	to waive or reduce the funding of reserves and no such result is
376	achieved or a quorum is not present, the reserves as included in
377	the budget shall go into effect. After the turnover, the
378	developer may vote its voting interest to waive or reduce the
379	funding of reserves. Any vote taken pursuant to this subsection
380	to waive or reduce reserves shall be applicable only to one
381	budget year.
382	(g)  Funding formulas for reserves authorized by this
383	section shall be based on either a separate analysis of each of
384	the required assets or a pooled analysis of two or more of the
385	required assets.
386	1.  If the association maintains separate reserve accounts
387	for each of the required assets, the amount of the contribution
388	to each reserve account shall be the sum of the following two
389	calculations:
390	a.  The total amount necessary, if any, to bring a negative
391	component balance to zero.
392	b.  The total estimated deferred maintenance expense or
393	estimated replacement cost of the reserve component less the
394	estimated balance of the reserve component as of the beginning
395	of the period for which the budget will be in effect. The
396	remainder, if greater than zero, shall be divided by the
397	estimated remaining useful life of the component.
398
399	The formula may be adjusted each year for changes in estimates
400	and deferred maintenance performed during the year and may
401	include factors such as inflation and earnings on invested
402	funds.
403	2.  If the association maintains a pooled account of two or
404	more of the required reserve assets, the amount of the
405	contribution to the pooled reserve account as disclosed on the
406	proposed budget shall not be less than that required to ensure
407	that the balance on hand at the beginning of the period for
408	which the budget will go into effect plus the projected annual
409	cash inflows over the remaining estimated useful life of all of
410	the assets that make up the reserve pool are equal to or greater
411	than the projected annual cash outflows over the remaining
412	estimated useful lives of all of the assets that make up the
413	reserve pool, based on the current reserve analysis. The
414	projected annual cash inflows may include estimated earnings
415	from investment of principal. The reserve funding formula shall
416	not include any type of balloon payments.
417	(h)  Reserve funds and any interest accruing thereon shall
418	remain in the reserve account or accounts and shall be used only
419	for authorized reserve expenditures unless their use for other
420	purposes is approved in advance by a majority vote at a meeting
421	at which a quorum is present. Prior to turnover of control of an
422	association by a developer to parcel owners, the developer-
423	controlled association shall not vote to use reserves for
424	purposes other than those for which they were intended without
425	the approval of a majority of all nondeveloper voting interests
426	voting in person or by limited proxy at a duly called meeting of
427	the association.
428	(7)  FINANCIAL REPORTING.--Within 90 days after the end of
429	the fiscal year, or annually on the date provided in the bylaws,
430	the association shall prepare and complete, or contract with a
431	third party for the preparation and completion of, a financial
432	report for the preceding fiscal year. Within 21 days after the
433	final financial report is completed by the association or
434	received from the third party, but not later than 120 days after
435	the end of the fiscal year or other date as provided in the
436	bylaws, the association shall prepare an annual financial report
437	within 60 days after the close of the fiscal year. The
438	association shall, within the time limits set forth in
439	subsection (5), provide each member with a copy of the annual
440	financial report or a written notice that a copy of the
441	financial report is available upon request at no charge to the
442	member. Financial reports shall be prepared as follows:
443	(a)  An association that meets the criteria of this
444	paragraph shall prepare or cause to be prepared a complete set
445	of financial statements in accordance with generally accepted
446	accounting principles as adopted by the Board of Accountancy.
447	The financial statements shall be based upon the association's
448	total annual revenues, as follows:
449	1.  An association with total annual revenues of $100,000
450	or more, but less than $200,000, shall prepare compiled
451	financial statements.
452	2.  An association with total annual revenues of at least
453	$200,000, but less than $400,000, shall prepare reviewed
454	financial statements.
455	3.  An association with total annual revenues of $400,000
456	or more shall prepare audited financial statements.
457	(b)1.  An association with total annual revenues of less
458	than $100,000 shall prepare a report of cash receipts and
459	expenditures.
460	2.  An association in a community of fewer than 50 parcels,
461	regardless of the association's annual revenues, may prepare a
462	report of cash receipts and expenditures in lieu of financial
463	statements required by paragraph (a) unless the governing
464	documents provide otherwise.
465	3.  A report of cash receipts and disbursement must
466	disclose the amount of receipts by accounts and receipt
467	classifications and the amount of expenses by accounts and
468	expense classifications, including, but not limited to, the
469	following, as applicable: costs for security, professional, and
470	management fees and expenses; taxes; costs for recreation
471	facilities; expenses for refuse collection and utility services;
472	expenses for lawn care; costs for building maintenance and
473	repair; insurance costs; administration and salary expenses; and
474	reserves if maintained by the association.
475	(c)  If 20 percent of the parcel owners petition the board
476	for a level of financial reporting higher than that required by
477	this section, the association shall duly notice and hold a
478	meeting of members within 30 days of receipt of the petition for
479	the purpose of voting on raising the level of reporting for that
480	fiscal year. Upon approval of a majority of the total voting
481	interests of the parcel owners, the association shall prepare or
482	cause to be prepared, shall amend the budget or adopt a special
483	assessment to pay for the financial report regardless of any
484	provision to the contrary in the governing documents, and shall
485	provide within 90 days of the meeting or the end of the fiscal
486	year, whichever occurs later:
487	1.  Compiled, reviewed, or audited financial statements, if
488	the association is otherwise required to prepare a report of
489	cash receipts and expenditures;
490	2.  Reviewed or audited financial statements, if the
491	association is otherwise required to prepare compiled financial
492	statements; or
493	3.  Audited financial statements if the association is
494	otherwise required to prepare reviewed financial statements.
495	(d)  If approved by a majority of the voting interests
496	present at a properly called meeting of the association, an
497	association may prepare or cause to be prepared:
498	1.  A report of cash receipts and expenditures in lieu of a
499	compiled, reviewed, or audited financial statement;
500	2.  A report of cash receipts and expenditures or a
501	compiled financial statement in lieu of a reviewed or audited
502	financial statement; or
503	3.  A report of cash receipts and expenditures, a compiled
504	financial statement, or a reviewed financial statement in lieu
505	of an audited financial statement.
506	Section 11.  Subsection (2) of section 720.303, Florida
507	Statutes, as amended by section 2 of chapter 2004-345 and
508	section 15 of chapter 2004-353, Laws of Florida, is repealed.
509	Section 12.  Section 720.3035, Florida Statutes, is created
510	to read:
511	720.3035  Architectural control covenants; parcel owner
512	improvements; rights and privileges.--
513	(1)  The authority of an association or any architectural,
514	construction improvement, or other such similar committee of an
515	association to review and approve plans and specifications for
516	the location, size, type, or appearance of any structure or
517	other improvement on a parcel, or to enforce standards for the
518	external appearance of any structure or improvement located on a
519	parcel, shall only be permitted to the extent that the authority
520	is specifically stated or reasonably inferred as to such
521	location, size, type, or appearance in the declaration of
522	covenants or other published guidelines and standards authorized
523	by the declaration of covenants.
524	(2)  If the declaration of covenants or other published
525	guidelines and standards authorized by the declaration of
526	covenants provides options for the use of material, the size of
527	the structure or improvement, the design of the structure or
528	improvement, or the location of the structure or improvement on
529	the parcel, neither the association nor any architectural,
530	construction improvement, or other such similar committee of the
531	association shall restrict the right of a parcel owner to select
532	from the options provided in the declaration of covenants or
533	other published guidelines and standards authorized by the
534	declaration of covenants.
535	(3)  Unless otherwise specifically stated in the
536	declaration of covenants or other published guidelines and
537	standards authorized by the declaration of covenants, each
538	parcel shall be deemed to have only one front for purposes of
539	determining the required front setback even if the parcel is
540	bounded by a roadway or other easement on more than one side.
541	When the declaration of covenants or other published guidelines
542	and standards authorized by the declaration of covenants do not
543	provide for specific setback limitations, the applicable county
544	or municipal setback limitations shall apply, and neither the
545	association nor any architectural, construction improvement, or
546	other such similar committee of the association shall enforce or
547	attempt to enforce any setback limitation that is inconsistent
548	with the applicable county or municipal standard or standards.
549	(4)  Each parcel owner shall be entitled to the rights and
550	privileges set forth in the declaration of covenants or other
551	published guidelines and standards authorized by the declaration
552	of covenants concerning the architectural use of the parcel, and
553	the construction of permitted structures and improvements on the
554	parcel and such rights and privileges shall not be unreasonably
555	infringed upon or impaired by the association or any
556	architectural, construction improvement, or other such similar
557	committee of the association. If the association or any
558	architectural, construction improvement, or other such similar
559	committee of the association should unreasonably, knowingly, and
560	willfully infringe upon or impair the rights and privileges set
561	forth in the declaration of covenants or other published
562	guidelines and standards authorized by the declaration of
563	covenants, the adversely affected parcel owner shall be entitled
564	to recover damages caused by such infringement or impairment,
565	including any costs and reasonable attorney's fees incurred in
566	preserving or restoring the rights and privileges of the parcel
567	owner set forth in the declaration of covenants or other
568	published guidelines and standards authorized by the declaration
569	of covenants.
570	(5)  Neither the association nor any architectural,
571	construction improvement, or other such similar committee of the
572	association shall enforce any policy or restriction that is
573	inconsistent with the rights and privileges of a parcel owner
574	set forth in the declaration of covenants or other published
575	guidelines and standards authorized by the declaration of
576	covenants, whether uniformly applied or not. Neither the
577	association nor any architectural, construction improvement, or
578	other such similar committee of the association may rely upon a
579	policy or restriction that is inconsistent with the declaration
580	of covenants or other published guidelines and standards
581	authorized by the declaration of covenants, whether uniformly
582	applied or not, in defense of any action taken in the name of or
583	on behalf of the association against a parcel owner.
584	Section 13.  Subsection (1) of section 720.305, Florida
585	Statutes, is amended to read:
586	720.305  Obligations of members; remedies at law or in
587	equity; levy of fines and suspension of use rights; failure to
588	fill sufficient number of vacancies on board of directors to
589	constitute a quorum; appointment of receiver upon petition of
590	any member.--
591	(1)  Each member and the member's tenants, guests, and
592	invitees, and each association, are governed by, and must comply
593	with, this chapter, the governing documents of the community,
594	and the rules of the association. Actions at law or in equity,
595	or both, to redress alleged failure or refusal to comply with
596	these provisions may be brought by the association or by any
597	member against:
598	(a)  The association;
599	(b)  A member;
600	(c)  Any director or officer of an association who
601	willfully and knowingly fails to comply with these provisions;
602	and
603	(d)  Any tenants, guests, or invitees occupying a parcel or
604	using the common areas.
605
606	The prevailing party in any such litigation is entitled to
607	recover reasonable attorney's fees and costs. A member
608	prevailing in an action between the association and the member
609	under this section, in addition to recovering his or her
610	reasonable attorney's fees, may recover additional amounts as
611	determined by the court to be necessary to reimburse the member
612	for his or her share of assessments levied by the association to
613	fund its expenses of the litigation. This relief does not
614	exclude other remedies provided by law. This section does not
615	deprive any person of any other available right or remedy.
616	Section 14.  Paragraph (c) of subsection (1) of section
617	720.306, Florida Statutes, is amended to read:
618	720.306  Meetings of members; voting and election
619	procedures; amendments.--
620	(1)  QUORUM; AMENDMENTS.--
621	(c)  Unless otherwise provided in the governing documents
622	as originally recorded or permitted by this chapter or chapter
623	617, an amendment may not materially and adversely alter the
624	proportionate voting interest appurtenant to a parcel or
625	increase the proportion or percentage by which a parcel shares
626	in the common expenses of the association unless the record
627	parcel owner and all record owners of liens on the parcels join
628	in the execution of the amendment. For purposes of this section,
629	a change in quorum requirements is not an alteration of voting
630	interests. The merger or consolidation of one or more
631	associations under a plan of merger or consolidation under
632	chapter 607 or chapter 617 shall not be considered a material or
633	adverse alteration of the proportionate voting interest
634	appurtenant to a parcel.
635	Section 15.  Paragraph (t) is added to subsection (3) of
636	section 720.307, Florida Statutes, to read:
637	720.307  Transition of association control in a
638	community.--With respect to homeowners' associations:
639	(3)  At the time the members are entitled to elect at least
640	a majority of the board of directors of the homeowners'
641	association, the developer shall, at the developer's expense,
642	within no more than 90 days deliver the following documents to
643	the board:
644	(t)  The financial records, including financial statements
645	of the association, and source documents from the incorporation
646	of the association through the date of turnover. The records
647	shall be audited by an independent certified public accountant
648	for the period from the incorporation of the association or from
649	the period covered by the last audit, if an audit has been
650	performed for each fiscal year since incorporation. All
651	financial statements shall be prepared in accordance with
652	generally accepted accounting principles and shall be audited in
653	accordance with generally accepted auditing standards, as
654	prescribed by the Board of Accountancy, pursuant to chapter 473.
655	The certified public accountant performing the audit shall
656	examine to the extent necessary supporting documents and
657	records, including the cash disbursements and related paid
658	invoices to determine if expenditures were for association
659	purposes and the billings, cash receipts, and related records of
660	the association to determine that the developer was charged and
661	paid the proper amounts of assessments. This paragraph applies
662	to associations with a date of incorporation after December 31,
663	2006.
664	Section 16.  Section 720.308, Florida Statutes, is amended
665	to read:
666	720.308  Assessments and charges.--
667	(1)  ASSESSMENTS.--For any community created after October
668	1, 1995, the governing documents must describe the manner in
669	which expenses are shared and specify the member's proportional
670	share thereof. Assessments levied pursuant to the annual budget
671	or special assessment must be in the member's proportional share
672	of expenses as described in the governing document, which share
673	may be different among classes of parcels based upon the state
674	of development thereof, levels of services received by the
675	applicable members, or other relevant factors. While the
676	developer is in control of the homeowners' association, it may
677	be excused from payment of its share of the operating expenses
678	and assessments related to its parcels for any period of time
679	for which the developer has, in the declaration, obligated
680	itself to pay any operating expenses incurred that exceed the
681	assessments receivable from other members and other income of
682	the association. This section does not apply to an association,
683	no matter when created, if the association is created in a
684	community that is included in an effective development-of-
685	regional-impact development order as of the effective date of
686	this act, together with any approved modifications thereto.
687	(2)  GUARANTEES OF COMMON EXPENSES.--
688	(a)  Establishment of a guarantee.--If a guarantee of the
689	assessments of parcel owners is not included in the purchase
690	contracts or declaration, any agreement establishing a guarantee
691	shall only be effective upon the approval of a majority of the
692	voting interests of the members other than the developer.
693	Approval shall be expressed at a meeting of the members voting
694	in person or by limited proxy or by agreement in writing without
695	a meeting if provided in the bylaws. Such guarantee shall meet
696	the requirements of this section.
697	(b)  Guarantee period.--The period of time for the
698	guarantee shall be indicated by a specific beginning and ending
699	date or event.
700	1.  The ending date or event shall be the same for all of
701	the members of an association, including members in different
702	phases of the development.
703	2.  The guarantee may provide for different intervals of
704	time during a guarantee period with different dollar amounts for
705	each such interval.
706	3.  The guarantee may provide that after the initial stated
707	period, the developer has an option to extend the guarantee for
708	one or more additional stated periods. The extension of a
709	guarantee is limited to extending the ending date or event;
710	therefore, the developer does not have the option of changing
711	the level of assessments guaranteed.
712	(3)  MAXIMUM LEVEL OF ASSESSMENTS.--The stated dollar
713	amount of the guarantee shall be an exact dollar amount for each
714	parcel identified in the declaration. Regardless of the stated
715	dollar amount of the guarantee, assessments charged to a member
716	shall not exceed the maximum obligation of the member based on
717	the total amount of the adopted budget and the member's
718	proportionate ownership share of the common elements.
719	(4)  CASH FUNDING REQUIREMENTS DURING GUARANTEE.--The cash
720	payments required from the guarantor during the guarantee period
721	shall be determined as follows:
722	(a)  If at any time during the guarantee period the funds
723	collected from member assessments at the guaranteed level and
724	other revenues collected by the association are not sufficient
725	to provide payment, on a timely basis, of all assessments,
726	including the full funding of the reserves unless properly
727	waived, the guarantor shall advance sufficient cash to the
728	association at the time such payments are due.
729	(b)  Expenses incurred in the production of nonassessment
730	revenues, not in excess of the nonassessment revenues, shall not
731	be included in the assessments. If the expenses attributable to
732	nonassessment revenues exceed nonassessment revenues, only the
733	excess expenses must be funded by the guarantor. Interest earned
734	on the investment of association funds may be used to pay the
735	income tax expense incurred as a result of the investment; such
736	expense shall not be charged to the guarantor; and the net
737	investment income shall be retained by the association. Each
738	such nonassessment-revenue-generating activity shall be
739	considered separately. Any portion of the parcel assessment that
740	is budgeted for designated capital contributions of the
741	association shall not be used to pay operating expenses.
742	(5)  CALCULATION OF GUARANTOR'S FINAL OBLIGATION.--The
743	guarantor's total financial obligation to the association at the
744	end of the guarantee period shall be determined on the accrual
745	basis using the following formula: the guarantor shall pay any
746	deficits that exceed the guaranteed amount, less the total
747	regular periodic assessments earned by the association from the
748	members other than the guarantor during the guarantee period
749	regardless of whether the actual level charged was less than the
750	maximum guaranteed amount.
751	(6)  EXPENSES.--Expenses incurred in the production of
752	nonassessment revenues, not in excess of the nonassessment
753	revenues, shall not be included in the operating expenses. If
754	the expenses attributable to nonassessment revenues exceed
755	nonassessment revenues, only the excess expenses must be funded
756	by the guarantor. Interest earned on the investment of
757	association funds may be used to pay the income tax expense
758	incurred as a result of the investment; such expense shall not
759	be charged to the guarantor; and the net investment income shall
760	be retained by the association. Each such nonassessment-revenue-
761	generating activity shall be considered separately. Any portion
762	of the parcel assessment that is budgeted for designated capital
763	contributions of the association shall not be used to pay
764	operating expenses.
765	Section 17.  Section 720.311, Florida Statutes, is amended
766	to read:
767	720.311  Dispute resolution.--
768	(1)  The Legislature finds that alternative dispute
769	resolution has made progress in reducing court dockets and
770	trials and in offering a more efficient, cost-effective option
771	to litigation. The filing of any petition for mediation or
772	arbitration or the serving of an offer for presuit mediation as
773	provided for in this section shall toll the applicable statute
774	of limitations. Any recall dispute filed with the department
775	pursuant to s. 720.303(10) shall be conducted by the department
776	in accordance with the provisions of ss. 718.112(2)(j) and
777	718.1255 and the rules adopted by the division. In addition, the
778	department shall conduct mandatory binding arbitration of
779	election disputes between a member and an association pursuant
780	to s. 718.1255 and rules adopted by the division. Neither
781	election disputes nor recall disputes are eligible for presuit
782	mediation; these disputes shall be arbitrated by the department.
783	At the conclusion of the proceeding, the department shall charge
784	the parties a fee in an amount adequate to cover all costs and
785	expenses incurred by the department in conducting the
786	proceeding. Initially, the petitioner shall remit a filing fee
787	of at least $200 to the department. The fees paid to the
788	department shall become a recoverable cost in the arbitration
789	proceeding, and the prevailing party in an arbitration
790	proceeding shall recover its reasonable costs and attorney's
791	fees in an amount found reasonable by the arbitrator. The
792	department shall adopt rules to effectuate the purposes of this
793	section.
794	(2)(a)  Disputes between an association and a parcel owner
795	regarding use of or changes to the parcel or the common areas
796	and other covenant enforcement disputes, disputes regarding
797	amendments to the association documents, disputes regarding
798	meetings of the board and committees appointed by the board,
799	membership meetings not including election meetings, and access
800	to the official records of the association shall be the subject
801	of an offer filed with the department for presuit mandatory
802	mediation served by an aggrieved party before the dispute is
803	filed in court. Presuit mediation proceedings must be conducted
804	in accordance with the applicable Florida Rules of Civil
805	Procedure, and these proceedings are privileged and confidential
806	to the same extent as court-ordered mediation. Disputes subject
807	to presuit mediation under this section shall not include the
808	collection of any assessment, fine, or other financial
809	obligation, including attorney's fees and costs, claimed to be
810	due or any action to enforce a prior mediation settlement
811	agreement between the parties. Also, in any dispute subject to
812	presuit mediation under this section where emergency relief is
813	required, a motion for temporary injunctive relief may be filed
814	with the court without first complying with the presuit
815	mediation requirements of this section. After any issues
816	regarding emergency or temporary relief are resolved, the court
817	may either refer the parties to a mediation program administered
818	by the courts or require mediation under this section. An
819	arbitrator or judge may not consider any information or evidence
820	arising from the presuit mediation proceeding except in a
821	proceeding to impose sanctions for failure to attend a presuit
822	mediation session or with the parties' agreement in a proceeding
823	seeking to enforce the agreement. Persons who are not parties to
824	the dispute may not attend the presuit mediation conference
825	without the consent of all parties, except for counsel for the
826	parties and a corporate representative designated by the
827	association. When mediation is attended by a quorum of the
828	board, such mediation is not a board meeting for purposes of
829	notice and participation set forth in s. 720.303. An aggrieved
830	party shall serve on the responding party a written offer to
831	participate in presuit mediation in substantially the following
832	form:
833
834	STATUTORY OFFER TO PARTICIPATE IN PRESUIT MEDIATION
835
836	The alleged aggrieved party,__________________, hereby
837	offers to _________________, as the responding party,
838	to enter into presuit mediation in connection with the
839	following dispute, which by statute is of a type that
840	is subject to presuit mediation:
841
842	(List specific nature of the dispute or disputes to be
843	mediated and the authority supporting a finding of a
844	violation as to each dispute.)
845
846	Pursuant to section 720.311, Florida Statutes, this
847	offer to resolve the dispute through presuit mediation
848	is required before a lawsuit can be filed concerning
849	the dispute. Pursuant to the statute, the aggrieved
850	party is hereby offering to engage in presuit
851	mediation with a neutral third-party mediator in order
852	to attempt to resolve this dispute without court
853	action, and the aggrieved party demands that you
854	likewise agree to this process. If you fail to agree
855	to presuit mediation, or if you agree and later fail
856	to follow through with your agreement to mediate, suit
857	may be brought against you without further warning.
858
859	The process of mediation involves a supervised
860	negotiation process in which a trained, neutral third-
861	party mediator meets with both parties and assists
862	them in exploring possible opportunities for resolving
863	part or all of the dispute. The mediation process is a
864	voluntary one. By agreeing to participate in presuit
865	mediation, you are not bound in any way to change your
866	position or to enter into any type of agreement.
867	Furthermore, the mediator has no authority to make any
868	decisions in this matter or to determine who is right
869	or wrong and merely acts as a facilitator to ensure
870	that each party understands the position of the other
871	party and that all reasonable settlement options are
872	fully explored. All mediation communications are
873	confidential under the Mediation Confidentiality and
874	Privilege Act pursuant to sections 44.401-44.406,
875	Florida Statutes, and a mediation participant may not
876	disclose a mediation communication to a person other
877	than a mediation participant or a participant's
878	counsel.
879
880	If an agreement is reached, it shall be reduced to
881	writing and becomes a binding and enforceable
882	commitment of the parties. A resolution of one or more
883	disputes in this fashion avoids the need to litigate
884	these issues in court. The failure to reach an
885	agreement, or the failure of a party to participate in
886	the process, results in the mediator's declaring an
887	impasse in the mediation, after which the aggrieved
888	party may proceed to court on all outstanding,
889	unsettled disputes.
890
891	The aggrieved party has selected and hereby lists
892	three certified mediators who we believe to be neutral
893	and qualified to mediate the dispute. You have the
894	right to select any one of these mediators. The fact
895	that one party may be familiar with one or more of the
896	listed mediators does not mean that the mediator
897	cannot act as a neutral and impartial facilitator. Any
898	mediator who cannot act in this capacity ethically
899	must decline to accept engagement. The mediators that
900	we suggest, and their current hourly rates, are as
901	follows:
902
903	(List the names, addresses, telephone numbers, and
904	hourly rates of the mediators. Other pertinent
905	information about the background of the mediators may
906	be included as an attachment.)
907
908	You may contact the offices of these mediators to
909	confirm that the listed mediators will be neutral and
910	will not show any favoritism toward either party. The
911	names of certified mediators may be found through the
912	office of the clerk of the circuit court for this
913	circuit.
914
915	If you agree to participate in the presuit mediation
916	process, the statute requires that each party is to
917	pay one-half of the costs and fees involved in the
918	presuit mediation process unless otherwise agreed by
919	all parties. An average mediation may require 3 to 4
920	hours of the mediator's time, including some
921	preparation time, and each party would need to pay
922	one-half of the mediator's fees as well as his or her
923	own attorney's fees if he or she chooses to employ an
924	attorney in connection with the mediation. However,
925	use of an attorney is not required and is at the
926	option of each party. The mediator may require the
927	advance payment of some or all of the anticipated
928	fees. The aggrieved party hereby agrees to pay or
929	prepay one-half of the mediator's estimated fees and
930	to forward this amount or such other reasonable
931	advance deposits as the mediator may require for this
932	purpose. Any funds deposited will be returned to you
933	if these are in excess of your share of the fees
934	incurred.
935
936	If you agree to participate in presuit mediation in
937	order to attempt to resolve the dispute and thereby
938	avoid further legal action, please sign below and
939	clearly indicate which mediator is acceptable to you.
940	We will then ask the mediator to schedule a mutually
941	convenient time and place for the mediation conference
942	to be held. The mediation conference must be held
943	within 90 days after the date of this letter unless
944	extended by mutual written agreement. In the event
945	that you fail to respond within 20 days after the date
946	of this letter, or if you fail to agree to at least
947	one of the mediators that we have suggested and to pay
948	or prepay to the mediator one-half of the costs
949	involved, the aggrieved party will be authorized to
950	proceed with the filing of a lawsuit against you
951	without further notice and may seek an award of
952	attorney's fees or costs incurred in attempting to
953	obtain mediation.
954
955	Should you wish, you may also elect to waive presuit
956	mediation so that this matter may proceed directly to
957	court.
958
959	Therefore, please give this matter your immediate
960	attention. By law, your response must be mailed by
961	certified mail, return receipt requested, with an
962	additional copy being sent by regular first-class mail
963	to the address shown on this offer.
964
965	_____________________
966	_____________________
967
968	RESPONDING PARTY: CHOOSE ONLY ONE OF THE TWO OPTIONS
969	BELOW. YOUR SIGNATURE INDICATES YOUR AGREEMENT TO THAT
970	CHOICE.
971
972	AGREEMENT TO MEDIATE
973
974	The undersigned hereby agrees to participate in
975	presuit mediation and agrees to the following mediator
976	or mediators as acceptable to mediate this dispute:
977
978	(List acceptable mediator or mediators.)
979
980	I/we further agree to pay or prepay one-half of the
981	mediator's fees and to forward such advance deposits
982	as the mediator may require for this purpose.
983
984	_______________________
985	Signature of responding party #1
986
987	_______________________
988	Signature of responding party #2 (if applicable)(if
989	property is owned by more than one person, all owners
990	must sign)
991
992	WAIVER OF MEDIATION
993
994	The undersigned hereby waives the right to participate
995	in presuit mediation of the dispute listed above and
996	agrees to allow the aggrieved party to proceed in
997	court on such matters.
998
999	__________________________
1000	Signature of responding party #1
1001
1002	___________________________
1003	Signature of responding party #2 (if applicable)(if
1004	property is owned by more than one person, all owners
1005	must sign)
1006
1007	(b)  Service of the statutory offer to participate in
1008	presuit mediation shall be effected by sending a letter in
1009	substantial conformity with the above form by certified mail,
1010	return receipt requested, with an additional copy being sent by
1011	regular first-class mail, to the address of the responding party
1012	as it last appears on the books and records of the association.
1013	The responding party shall have 20 days from the date of the
1014	mailing of the statutory offer to serve a response to the
1015	aggrieved party in writing. The response shall be served by
1016	certified mail, return receipt requested, with an additional
1017	copy being sent by regular first-class mail, to the address
1018	shown on the statutory offer. In the alternative, the responding
1019	party may waive mediation in writing. Notwithstanding the
1020	foregoing, once the parties have agreed on a mediator, the
1021	mediator may reschedule the mediation for a date and time
1022	mutually convenient to the parties. The department shall conduct
1023	the proceedings through the use of department mediators or refer
1024	the disputes to private mediators who have been duly certified
1025	by the department as provided in paragraph (c). The parties
1026	shall share the costs of presuit mediation equally, including
1027	the fee charged by the mediator, if any, unless the parties
1028	agree otherwise, and the mediator may require advance payment of
1029	its reasonable fees and costs. The failure of any party to
1030	respond to a demand or response, to agree upon a mediator, to
1031	make payment of fees and costs within the time established by
1032	the mediator, or to appear for a scheduled mediation session
1033	shall operate as an impasse in the presuit mediation by such
1034	party, entitling the other party to proceed in court and to seek
1035	an award of the costs and fees associated with the mediation.
1036	Additionally, if any presuit mediation session cannot be
1037	scheduled and conducted within 90 days after the offer to
1038	participate in mediation was filed, an impasse shall be deemed
1039	to have occurred unless both parties agree to extend this
1040	deadline. If a department mediator is used, the department may
1041	charge such fee as is necessary to pay expenses of the
1042	mediation, including, but not limited to, the salary and
1043	benefits of the mediator and any travel expenses incurred. The
1044	petitioner shall initially file with the department upon filing
1045	the disputes, a filing fee of $200, which shall be used to
1046	defray the costs of the mediation. At the conclusion of the
1047	mediation, the department shall charge to the parties, to be
1048	shared equally unless otherwise agreed by the parties, such
1049	further fees as are necessary to fully reimburse the department
1050	for all expenses incurred in the mediation.
1051	(c)(b)  If presuit mediation as described in paragraph (a)
1052	is not successful in resolving all issues between the parties,
1053	the parties may file the unresolved dispute in a court of
1054	competent jurisdiction or elect to enter into binding or
1055	nonbinding arbitration pursuant to the procedures set forth in
1056	s. 718.1255 and rules adopted by the division, with the
1057	arbitration proceeding to be conducted by a department
1058	arbitrator or by a private arbitrator certified by the
1059	department. If all parties do not agree to arbitration
1060	proceedings following an unsuccessful presuit mediation, any
1061	party may file the dispute in court. A final order resulting
1062	from nonbinding arbitration is final and enforceable in the
1063	courts if a complaint for trial de novo is not filed in a court
1064	of competent jurisdiction within 30 days after entry of the
1065	order. As to any issue or dispute that is not resolved at
1066	presuit mediation, and as to any issue that is settled at
1067	presuit mediation but is thereafter subject to an action seeking
1068	enforcement of the mediation settlement, the prevailing party in
1069	any subsequent arbitration or litigation proceeding shall be
1070	entitled to seek recovery of all costs and attorney's fees
1071	incurred in the presuit mediation process.
1072	(d)(c)  The department shall develop a certification and
1073	training program for private mediators and private arbitrators
1074	which shall emphasize experience and expertise in the area of
1075	the operation of community associations. A mediator or
1076	arbitrator shall be certified to conduct mediation or
1077	arbitration under this section by the department only if he or
1078	she has been certified as a circuit court civil mediator or
1079	arbitrator, respectively, pursuant to the requirements
1080	established attended at least 20 hours of training in mediation
1081	or arbitration, as appropriate, and only if the applicant has
1082	mediated or arbitrated at least 10 disputes involving community
1083	associations within 5 years prior to the date of the
1084	application, or has mediated or arbitrated 10 disputes in any
1085	area within 5 years prior to the date of application and has
1086	completed 20 hours of training in community association
1087	disputes. In order to be certified by the department, any
1088	mediator must also be certified by the Florida Supreme Court.
1089	The department may conduct the training and certification
1090	program within the department or may contract with an outside
1091	vendor to perform the training or certification. The expenses of
1092	operating the training and certification and training program
1093	shall be paid by the moneys and filing fees generated by the
1094	arbitration of recall and election disputes and by the mediation
1095	of those disputes referred to in this subsection and by the
1096	training fees.
1097	(e)(d)  The presuit mediation procedures provided by this
1098	subsection may be used by a Florida corporation responsible for
1099	the operation of a community in which the voting members are
1100	parcel owners or their representatives, in which membership in
1101	the corporation is not a mandatory condition of parcel
1102	ownership, or which is not authorized to impose an assessment
1103	that may become a lien on the parcel.
1104	(3)  The department shall develop an education program to
1105	assist homeowners, associations, board members, and managers in
1106	understanding and increasing awareness of the operation of
1107	homeowners' associations pursuant to this chapter and in
1108	understanding the use of alternative dispute resolution
1109	techniques in resolving disputes between parcel owners and
1110	associations or between owners. Such education program may
1111	include the development of pamphlets and other written
1112	instructional guides, the holding of classes and meetings by
1113	department employees or outside vendors, as the department
1114	determines, and the creation and maintenance of a website
1115	containing instructional materials. The expenses of operating
1116	the education program shall be initially paid by the moneys and
1117	filing fees generated by the arbitration of recall and election
1118	disputes and by the mediation of those disputes referred to in
1119	this subsection.
1120	Section 18.  Except as otherwise expressly provided in this
1121	act, this act shall take effect July 1, 2006.
1122
1123	======= T I T L E  A M E N D M E N T ==========
1124	Remove the entire title and insert:
1125	A bill to be entitled
1126	An act relating to community associations; creating s.
1127	712.11, F.S.; providing for the revival of certain
1128	covenants that have lapsed; amending s. 718.106, F.S.;
1129	prohibiting local governments from limiting the access of
1130	certain persons to beaches adjacent to or adjoining
1131	condominium property; amending s. 718.110, F.S.; revising
1132	provisions relating to the amendment of declarations;
1133	providing legislative findings and a finding of compelling
1134	state interest; providing criteria for consent to an
1135	amendment; requiring notice regarding proposed amendments
1136	to mortgagees; providing criteria for notification;
1137	providing for voiding certain amendments; amending s.
1138	718.112, F.S.; revising the implementation date for
1139	retrofitting of common areas with a sprinkler system;
1140	amending s. 718.114, F.S.; providing that certain
1141	leaseholds, memberships, or other possessory or use
1142	interests shall be considered a material alteration or
1143	substantial addition to certain real property; amending s.
1144	718.404, F.S.; providing retroactive application of
1145	provisions relating to mixed-use condominiums; amending s.
1146	719.103, F.S.; providing a definition; amending s.
1147	719.507, F.S.; prohibiting laws, ordinances, or
1148	regulations that apply only to improvements that are or
1149	may be subjected to an equity club form of ownership;
1150	amending s. 720.302, F.S.; revising governing provisions
1151	relating to corporations that operate residential
1152	homeowners' associations; amending s. 720.303, F.S.;
1153	revising application to include certain meetings;
1154	requiring the association to provide certain information
1155	to prospective purchasers or lienholders; authorizing the
1156	association to charge a reasonable fee for providing
1157	certain information; requiring the budget to provide for
1158	annual operating expenses; authorizing the budget to
1159	include reserve accounts for capital expenditures and
1160	deferred maintenance; providing a formula for calculating
1161	the amount to be reserved; authorizing the association to
1162	adjust replacement reserve assessments annually;
1163	authorizing the developer to vote to waive the reserves or
1164	reduce the funding of reserves for a certain period;
1165	revising provisions relating to financial reporting;
1166	revising time periods in which the association must
1167	complete its reporting; repealing s. 720.303(2), F.S., as
1168	amended, relating to board meetings, to remove conflicting
1169	versions of that subsection; creating s. 720.3035, F.S.;
1170	providing for architectural control covenants and parcel
1171	owner improvements; authorizing the review and approval of
1172	plans and specifications; providing limitations; providing
1173	rights and privileges for parcel owners as set forth in
1174	the declaration of covenants; amending s. 720.305, F.S.;
1175	providing that, where a member is entitled to collect
1176	attorney's fees against the association, the member may
1177	also recover additional amounts as determined by the
1178	court; amending s. 720.306, F.S.; providing that certain
1179	mergers or consolidations of an association shall not be
1180	considered a material or adverse alteration of the
1181	proportionate voting interest appurtenant to a parcel;
1182	amending s. 720.307, F.S.; requiring developers to deliver
1183	financial records to the board in any transition of
1184	association control to members; requiring certain
1185	information to be included in the records and for the
1186	records to be prepared in a specified manner; amending s.
1187	720.308, F.S.; providing circumstances under which a
1188	guarantee of common expenses shall be effective; providing
1189	for approval of the guarantee by association members;
1190	providing for a guarantee period and extension thereof;
1191	requiring the stated dollar amount of the guarantee to be
1192	an exact dollar amount for each parcel identified in the
1193	declaration; providing payments required from the
1194	guarantor to be determined in a certain manner; providing
1195	a formula to determine the guarantor's total financial
1196	obligation to the association; providing that certain
1197	expenses incurred in the production of certain revenues
1198	shall not be included in the operating expenses; amending
1199	s. 720.311, F.S.; revising provisions relating to dispute
1200	resolution; providing that the filing of any petition for
1201	arbitration or the serving of an offer for presuit
1202	mediation shall toll the applicable statute of
1203	limitations; providing that certain disputes between an
1204	association and a parcel owner shall be subject to presuit
1205	mediation; revising provisions to conform; providing that
1206	temporary injunctive relief may be sought in certain
1207	disputes subject to presuit mediation; authorizing the
1208	court to refer the parties to mediation under certain
1209	circumstances; requiring the aggrieved party to serve on
1210	the responding party a written offer to participate in
1211	presuit mediation; providing a form for such offer;
1212	providing that service of the offer is effected by the
1213	sending of such an offer in a certain manner; providing
1214	that the prevailing party in any subsequent arbitration or
1215	litigation proceedings is entitled to seek recovery of all
1216	costs and attorney's fees incurred in the presuit
1217	mediation process; requiring the mediator or arbitrator to
1218	meet certain certification requirements; removing a
1219	requirement relating to development of an education
1220	program to increase awareness of the operation of
1221	homeowners' associations and the use of alternative
1222	dispute resolution techniques; providing effective dates.

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