HB 1365

A bill to be entitled
2An act relating to community associations; creating s.
3718.1265, F.S.; authorizing a condominium association
4board to exercise specified emergency powers during an
5emergency created by declared disaster; amending s.
6718.112, F.S.; authorizing the association to establish a
7reserve account for uninsured casualty losses; extending a
8period in which condominium common areas do not have to be
9retrofitted with sprinkler systems; authorizing the bylaws
10of an association to contain certain optional provisions;
11creating s. 712.11, F.S.; providing for the revival of
12certain declarations that have been extinguished;
13providing an effective date.
15Be It Enacted by the Legislature of the State of Florida:
17     Section 1.  Section 718.1265, Florida Statutes, is created
18to read:
19     718.1265  Association emergency powers.--
20     (1)  To the extent allowed by law and unless specifically
21prohibited by the declaration, the articles, or the bylaws of an
22association, and consistent with the provisions of s. 617.0830,
23the board of administration, in response to damage caused by an
24event for which a state of emergency is declared pursuant to s.
25252.36 in the locale in which the condominium is located, may,
26but is not required to, exercise the following powers:
27     (a)  Conduct board meetings and membership meetings with
28notice given as is practicable. Such notice may be given in any
29practicable manner, including publication, radio, United States
30mail, the Internet, public service announcements, and
31conspicuous posting on the condominium property or any other
32means the board deems reasonable under the circumstances. Notice
33of board decisions may be communicated as provided in this
35     (b)  Cancel and reschedule any association meeting.
36     (c)  Name as assistant officers persons who are not
37directors, which assistant officers shall have the same
38authority as the executive officers to whom they are assistants
39during the state of emergency to accommodate the incapacity or
40unavailability of any officer of the association.
41     (d)  Relocate the association's principal office or
42designate alternative principal offices.
43     (e)  Enter into agreements with local counties and
44municipalities to assist counties and municipalities with debris
46     (f)  Implement a disaster plan before or immediately
47following the event for which a state of emergency is declared
48that may include, but is not limited to, shutting down or off
49elevators; electricity; water, sewer, or security systems; or
50air conditioners.
51     (g)  Declare any portion of the condominium property
52unavailable for entry or occupancy by unit owners, family
53members, tenants, guests, agents, or invitees to protect the
54health, safety, or welfare of such persons.
55     (h)  Order the evacuation of the condominium property in
56the event of a mandatory evacuation order in the locale in which
57the condominium is located. Should any unit owner or other
58occupant of a condominium fail or refuse to evacuate the
59condominium property upon such an order, the association shall
60be immune from liability or injury to persons or property
61arising from such failure or refusal.
62     (i)  Determine whether the condominium property can be
63safely inhabited or occupied. However, such determination is not
64conclusive as to any determination of habitability pursuant to
65the declaration.
66     (j)  Mitigate further damage, including taking action to
67contract for the removal of debris; and prevent or mitigate the
68spread of fungus, including, but not limited to, mold or mildew,
69by removing and disposing of wet drywall, insulation, carpet,
70cabinetry, or other fixtures, on or within the condominium
71property, even if the unit owner is obligated by the declaration
72or law to insure or replace those fixtures and to remove
73personal property from a unit.
74     (k)  Contract, on behalf of unit owners with unit owners
75responsible for reimbursing the association, for items or
76services for which the owners are otherwise responsible but
77which may be necessary to prevent further damage. Without
78limitation, such items or services may include the drying of
79units, the boarding of broken windows or doors, and the
80replacement of damaged air conditioners or air handlers to
81provide climate control in the units or other portions of the
83     (l)  Levy special assessments.
84     (m)  Without unit owner approval, borrow money and pledge
85association assets as collateral to fund emergency repairs and
86carry out the duties of the association when operating funds are
87insufficient. This paragraph does not limit the general
88authority of the association to borrow money, subject to such
89restrictions as are contained in the declaration, articles, or
91     (2)  The special powers authorized under subsection (1)
92shall be limited to that time reasonably necessary to protect
93the health, safety, and welfare of the association, the unit
94owners, their family members, tenants, guests, agents, or
95invitees and shall be reasonably necessary to mitigate further
96damage and make emergency repairs.
97     Section 2.  Paragraphs (f) and (l) of subsection (2) of
98section 718.112, Florida Statutes, are amended, and paragraph
99(e) is added to subsection (3) of that section, to read:
100     718.112  Bylaws.--
101     (2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
102following and, if they do not do so, shall be deemed to include
103the following:
104     (f)  Annual budget.--
105     1.  The proposed annual budget of common expenses shall be
106detailed and shall show the amounts budgeted by accounts and
107expense classifications, including, if applicable, but not
108limited to, those expenses listed in s. 718.504(21). A
109multicondominium association shall adopt a separate budget of
110common expenses for each condominium the association operates
111and shall adopt a separate budget of common expenses for the
112association. In addition, if the association maintains limited
113common elements with the cost to be shared only by those
114entitled to use the limited common elements as provided for in
115s. 718.113(1), the budget or a schedule attached thereto shall
116show amounts budgeted therefor. If, after turnover of control of
117the association to the unit owners, any of the expenses listed
118in s. 718.504(21) are not applicable, they need not be listed.
119     2.  In addition to annual operating expenses, the budget
120shall include reserve accounts for capital expenditures and
121deferred maintenance. These accounts shall include, but are not
122limited to, roof replacement, building painting, and pavement
123resurfacing, regardless of the amount of deferred maintenance
124expense or replacement cost, and for any other item for which
125the deferred maintenance expense or replacement cost exceeds
126$10,000. The amount to be reserved shall be computed by means of
127a formula which is based upon estimated remaining useful life
128and estimated replacement cost or deferred maintenance expense
129of each reserve item. The association may adjust replacement
130reserve assessments annually to take into account any changes in
131estimates or extension of the useful life of a reserve item
132caused by deferred maintenance. This subsection does not apply
133to an adopted budget in which the members of an association have
134determined, by a majority vote at a duly called meeting of the
135association, to provide no reserves or less reserves than
136required by this subsection. However, prior to turnover of
137control of an association by a developer to unit owners other
138than a developer pursuant to s. 718.301, the developer may vote
139to waive the reserves or reduce the funding of reserves for the
140first 2 fiscal years of the association's operation, beginning
141with the fiscal year in which the initial declaration is
142recorded, after which time reserves may be waived or reduced
143only upon the vote of a majority of all nondeveloper voting
144interests voting in person or by limited proxy at a duly called
145meeting of the association. If a meeting of the unit owners has
146been called to determine whether to waive or reduce the funding
147of reserves, and no such result is achieved or a quorum is not
148attained, the reserves as included in the budget shall go into
149effect. After the turnover, the developer may vote its voting
150interest to waive or reduce the funding of reserves.
151     3.  Reserve funds and any interest accruing thereon shall
152remain in the reserve account or accounts, and shall be used
153only for authorized reserve expenditures unless their use for
154other purposes is approved in advance by a majority vote at a
155duly called meeting of the association. Prior to turnover of
156control of an association by a developer to unit owners other
157than the developer pursuant to s. 718.301, the developer-
158controlled association shall not vote to use reserves for
159purposes other than that for which they were intended without
160the approval of a majority of all nondeveloper voting interests,
161voting in person or by limited proxy at a duly called meeting of
162the association.
163     4.  The only voting interests which are eligible to vote on
164questions that involve waiving or reducing the funding of
165reserves, or using existing reserve funds for purposes other
166than purposes for which the reserves were intended, are the
167voting interests of the units subject to assessment to fund the
168reserves in question.
169     5.  In addition to reserves required by this paragraph, the
170association may establish a reserve account for uninsured
171casualty losses based upon such formula as the board deems
173     (l)  Certificate of compliance.--There shall be a provision
174that a certificate of compliance from a licensed electrical
175contractor or electrician may be accepted by the association's
176board as evidence of compliance of the condominium units with
177the applicable fire and life safety code. Notwithstanding the
178provisions of chapter 633 or of any other code, statute,
179ordinance, administrative rule, or regulation, or any
180interpretation of the foregoing, an association, condominium, or
181unit owner is not obligated to retrofit the common elements or
182units of a residential condominium with a fire sprinkler system
183or other engineered lifesafety system in a building that has
184been certified for occupancy by the applicable governmental
185entity, if the unit owners have voted to forego such
186retrofitting and engineered lifesafety system by the affirmative
187vote of two-thirds of all voting interests in the affected
188condominium. However, a condominium association may not vote to
189forego the retrofitting with a fire sprinkler system of common
190areas in a high-rise building. For purposes of this subsection,
191the term "high-rise building" means a building that is greater
192than 75 feet in height where the building height is measured
193from the lowest level of fire department access to the floor of
194the highest occupiable story. For purposes of this subsection,
195the term "common areas" means any enclosed hallway, corridor,
196lobby, stairwell, or entryway. In no event shall the local
197authority having jurisdiction require completion of retrofitting
198of common areas with a sprinkler system before the end of 2020
200     1.  A vote to forego retrofitting may be obtained by
201limited proxy or by a ballot personally cast at a duly called
202membership meeting, or by execution of a written consent by the
203member, and shall be effective upon the recording of a
204certificate attesting to such vote in the public records of the
205county where the condominium is located. The association shall
206mail, hand deliver, or electronically transmit to each unit
207owner written notice at least 14 days prior to such membership
208meeting in which the vote to forego retrofitting of the required
209fire sprinkler system is to take place. Within 30 days after the
210association's opt-out vote, notice of the results of the opt-out
211vote shall be mailed, hand delivered, or electronically
212transmitted to all unit owners. Evidence of compliance with this
21330-day notice shall be made by an affidavit executed by the
214person providing the notice and filed among the official records
215of the association. After such notice is provided to each owner,
216a copy of such notice shall be provided by the current owner to
217a new owner prior to closing and shall be provided by a unit
218owner to a renter prior to signing a lease.
219     2.  As part of the information collected annually from
220condominiums, the division shall require condominium
221associations to report the membership vote and recording of a
222certificate under this subsection and, if retrofitting has been
223undertaken, the per-unit cost of such work. The division shall
224annually report to the Division of State Fire Marshal of the
225Department of Financial Services the number of condominiums that
226have elected to forego retrofitting.
227     (3)  OPTIONAL PROVISIONS.--The bylaws as originally
228recorded or as amended under the procedures provided therein may
229provide for the following:
230     (e)  Other provisions which are not inconsistent with this
231chapter or with the declaration, as may be desired.
232     Section 3.  Section 712.11, Florida Statutes, is created to
234     712.11  Covenants and restrictions.--A homeowners'
235association that is not otherwise subject to chapter 720 may use
236the procedures provided in ss. 720.403-720.407 to revive a
237declaration of covenants and restrictions that has been
238extinguished by this chapter entitled Marketable Record Titles
239to Real Property.
240     Section 4.  This act shall take effect upon becoming a law.

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