HB 0391

CS

CHAMBER ACTION

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

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