CS/HB 1373

1	A bill to be entitled
2	An act relating to community associations; amending s.
3	718.104, F.S.; revising required contents of a condominium
4	declaration relating to ownership share of the common
5	elements; amending s. 718.110, F.S.; requiring notice of
6	proposed amendments to be provided to unit owners;
7	amending s. 718.111, F.S.; providing requirements for
8	condominium associations to access units for specified
9	purposes; requiring official records of the association to
10	be made available at certain locations; providing that
11	certain records shall not be accessible to unit owners;
12	removing the requirement that the association's annual
13	financial report be provided only to unit owners providing
14	a written request for the report; restricting a
15	condominium association from waiving a financial report
16	for more than 2 years; providing duties for condominium
17	boards of administration in the event of certain
18	casualties; providing that certain assessments may be made
19	against unit owners under certain conditions; amending s.
20	718.112, F.S.; authorizing the board or membership to
21	determine the composition of the board of administration
22	under certain circumstances; requiring members of the
23	board of administration to be unit owners, absent
24	provisions indicating board member requirements; requiring
25	the board to respond to certain inquiries by certified
26	mail, return receipt requested; authorizing a condominium
27	association to limit its response to unit owner inquiries
28	to twice every 30 days; providing board of administration
29	and unit owners' meeting requirements; requiring the board
30	to address certain agenda items proposed by a petition of
31	20 percent of the unit owners; revising notice procedures,
32	including those involving meetings at which regular or
33	special assessments are to be considered; revising
34	eligibility requirements for members of a condominium
35	association board; providing that certain persons
36	providing notice of a meeting must provide an affidavit
37	affirming that the notices were delivered; authorizing the
38	association's representative to provide certain notices;
39	providing for the securing of ballots; revising procedures
40	relating to the filling of a vacancy on the board;
41	removing a provision allowing an association to provide
42	for different voting and election procedures in its
43	bylaws; providing unit owners with the right to have items
44	placed on the agenda of the annual meeting and voted upon
45	under certain conditions; requiring the association to
46	prepare an annual budget of estimated revenues and
47	expenses; requiring the budget to include reserve accounts
48	for certain purposes; requiring certain ballot statements
49	to contain certain statements; requiring a vote to provide
50	for no reserves or percentage of reserves to be made at
51	certain times; authorizing the association to use reserve
52	funds for nonscheduled purposes under certain conditions;
53	prohibiting the board from applying for or accepting
54	certain loans or lines of credit; requiring common
55	expenses to be paid by the developer during a specified
56	time; requiring that assessments be made against units on
57	a quarter-annual or more frequent basis; providing that
58	certain provisions shall not preclude the right of an
59	association to accelerate assessments of certain owners
60	delinquent in payment of common expenses; providing that
61	accelerated assessments shall be due and payable after the
62	claim of lien is filed; revising assessment requirements;
63	deleting the requirement that the bylaws include an
64	element for mandatory nonbinding arbitration; amending s.
65	718.113, F.S.; revising responsibility for the cost of
66	maintenance of the common areas; requiring boards of
67	administration to adopt or restate hurricane shutter
68	specifications yearly at the annual meeting; authorizing
69	the board to install hurricane protection that complies
70	with the applicable building code; requiring the board to
71	have the condominium buildings periodically inspected for
72	structural and electrical soundness by a professional
73	engineer or professional architect registered in the
74	state; requiring the inspector to provide a report to the
75	association and unit owners; prohibiting the board from
76	prohibiting the display of certain religious items on the
77	front-door area of a unit; creating s. 718.1224, F.S.;
78	prohibiting certain lawsuits arising from unit owners'
79	appearances and presentations before a governmental
80	entity; providing a definition; providing for award of
81	damages and attorney's fees; amending s. 718.1255, F.S.;
82	requiring the Division of Florida Land Sales,
83	Condominiums, and Mobile Homes of the Department of
84	Business and Professional Regulation to promptly refer
85	certain cases to mediation; deleting certain authorization
86	to recover costs and attorney fees in connection with
87	mediation proceedings; creating s. 718.1257, F.S.;
88	providing that condominium unit owners and renters have
89	the right to own a companion animal and to have that
90	animal live with them under specified conditions;
91	requiring condominium developers to pay monthly
92	maintenance fees on certain rented or leased units;
93	amending s. 718.302, F.S.; providing that certain grants
94	or reservations made by governing documents, that provide
95	for services or products, may be cancelled by unit owners
96	under certain circumstances; amending s. 718.3025, F.S.;
97	providing requirements for certain contracts between a
98	party contracting to provide maintenance or management
99	services and an association; amending s. 718.3026, F.S.;
100	providing that certain contracts between a service
101	provider and an association shall not be for a term in
102	excess of 3 years and shall not contain an automatic
103	renewal clause; requiring that certain contracts for
104	construction occur under the advisement of an attorney;
105	amending s. 718.303, F.S.; requiring hearings to levy
106	fines to be held before a committee of unit owners who are
107	not members of the board; requiring that persons subject
108	to certain actions be notified of their violations in a
109	certain manner; providing a timeframe in which a person
110	must respond; amending S. 718.404, F.S.; providing for
111	retroactive application of certain provisions relating to
112	mixed-use condominiums; amending s. 718.501, F.S.;
113	requiring the division to prepare and disseminate a
114	prospectus and other information for use by owners,
115	purchasers, lessees, and developers of residential
116	condominiums; providing that the board member training
117	provided by the division shall be provided in conjunction
118	with recommendations by the ombudsman; providing powers
119	and duties of the division with respect to association
120	violations; requiring associations to provide certain
121	notice and to participate in certain educational training;
122	amending s. 718.5011, F.S.; restricting location of the
123	Office of the Condominium Ombudsman; providing that the
124	ombudsman shall exercise his or her policymaking and other
125	functions independently of the department and without
126	approval or control of the department; requiring the
127	department to render administrative support for certain
128	matters; requiring that revenues collected by the
129	department for the office be deposited in a separate fund
130	or account under specified conditions; amending s.
131	718.5012, F.S.; removing requirement that the ombudsman
132	develop certain policies and procedures and to require
133	direct assistance instead; providing unit owners and
134	associations certain immunity when acting in good faith on
135	advice or opinions of the office; amending s. 718.504,
136	F.S.; revising and providing information to be contained
137	in the condominium prospectus or offering circular;
138	amending s. 720.303, F.S.; revising procedures used in
139	preparing a homeowners' association's annual financial
140	report; authorizing the budget to include reserve accounts
141	for capital expenditures and deferred maintenance;
142	providing a formula for calculating the amount to be
143	reserved; authorizing the association to adjust
144	replacement reserve assessments annually; authorizing the
145	developer to vote to waive the reserves or reduce the
146	funding of reserves for a certain period; revising
147	provisions relating to financial reporting; revising time
148	periods in which the association must complete its
149	reporting; amending s. 720.307, F.S., relating to
150	transition of association control in a community; revising
151	criteria with respect to election of members to the board
152	of directors; requiring certain developers and owners to
153	convey title to all common areas prior to turnover;
154	revising requirements for turnover of documents; requiring
155	certain information to be included in the records and for
156	the records to be prepared in a specified manner; revising
157	application to include certain associations; amending s.
158	720.3075, F.S.; prohibiting associations from restricting
159	the use of hurricane shutters in certain circumstances;
160	providing guidelines for the use of hurricane shutters;
161	authorizing associations to enforce certain hurricane
162	shutter restrictions; providing an effective date.
163
164	Be It Enacted by the Legislature of the State of Florida:
165
166	Section 1.  Paragraph (f) of subsection (4) of section
167	718.104, Florida Statutes, is amended to read:
168	718.104  Creation of condominiums; contents of
169	declaration.--Every condominium created in this state shall be
170	created pursuant to this chapter.
171	(4)  The declaration must contain or provide for the
172	following matters:
173	(f)  The undivided share of ownership of the common
174	elements and common surplus of the condominium that is
175	appurtenant to each unit stated as a percentage or a fraction of
176	the whole. In the declaration of condominium for residential
177	condominiums created after April 1, 2007 1992, the ownership
178	share of the common elements assigned to each residential unit
179	shall be based either upon the total square footage of each
180	residential unit in uniform relationship to the total square
181	footage of each other residential unit in the condominium or on
182	an equal fractional basis.
183	Section 2.  Paragraph (d) is added to subsection (1) of
184	section 718.110, Florida Statutes, to read:
185	718.110  Amendment of declaration; correction of error or
186	omission in declaration by circuit court.--
187	(1)
188	(d)  Notice of a proposed amendment to the declaration
189	shall be sent to the unit owner by certified mail.
190	Section 3.  Subsection (5), paragraph (b) of subsection
191	(7), paragraphs (b) and (c) of subsection (12), and subsection
192	(13) of section 718.111, Florida Statutes, are amended, and
193	subsection (15) is added to that section, to read:
194	718.111  The association.--
195	(5)  RIGHT OF ACCESS TO UNITS.--The association has the
196	irrevocable right of access to each unit during reasonable
197	hours, when necessary for the maintenance, repair, or
198	replacement of any common elements or of any portion of a unit
199	to be maintained by the association pursuant to the declaration
200	or as necessary to prevent damage to the common elements or to a
201	unit or units. Except in cases of emergency, the association
202	must give the unit owner 24 hours' advance written notice of
203	intent to access the unit.
204	(7)  TITLE TO PROPERTY.--
205	(b)  Subject to the provisions of s. 718.112(2)(l)(m), the
206	association, through its board, has the limited power to convey
207	a portion of the common elements to a condemning authority for
208	the purposes of providing utility easements, right-of-way
209	expansion, or other public purposes, whether negotiated or as a
210	result of eminent domain proceedings.
211	(12)  OFFICIAL RECORDS.--
212	(b)  The official records of the association shall be
213	maintained within the state. The records of the association
214	shall be made available to a unit owner, at a location within
215	the county in which the condominium property is located, within
216	5 working days after receipt of written request by the board or
217	its designee. This paragraph may be complied with by having a
218	copy of the official records of the association available for
219	inspection or copying on the condominium property or association
220	property.
221	(c)  The official records of the association are open to
222	inspection by any association member or the authorized
223	representative of such member at all reasonable times. The right
224	to inspect the records includes the right to make or obtain
225	copies, at the reasonable expense, if any, of the association
226	member. The association may adopt reasonable rules regarding the
227	frequency, time, location, notice, and manner of record
228	inspections and copying. The failure of an association to
229	provide the records within 10 working days after receipt of a
230	written request shall create a rebuttable presumption that the
231	association willfully failed to comply with this paragraph. A
232	unit owner who is denied access to official records is entitled
233	to the actual damages or minimum damages for the association's
234	willful failure to comply with this paragraph. The minimum
235	damages shall be $50 per calendar day up to 10 days, the
236	calculation to begin on the 11th working day after receipt of
237	the written request. The failure to permit inspection of the
238	association records as provided herein entitles any person
239	prevailing in an enforcement action to recover reasonable
240	attorney's fees from the person in control of the records who,
241	directly or indirectly, knowingly denied access to the records
242	for inspection. The association shall maintain an adequate
243	number of copies of the declaration, articles of incorporation,
244	bylaws, and rules, and all amendments to each of the foregoing,
245	as well as the question and answer sheet provided for in s.
246	718.504 and year-end financial information required in this
247	section on the condominium property to ensure their availability
248	to unit owners and prospective purchasers, and may charge its
249	actual costs for preparing and furnishing these documents to
250	those requesting the same. Notwithstanding the provisions of
251	this paragraph, the following records shall not be accessible to
252	unit owners:
253	1.  Any record protected by the lawyer-client privilege as
254	described in s. 90.502; and any record protected by the work-
255	product privilege, including any record prepared by an
256	association attorney or prepared at the attorney's express
257	direction; which reflects a mental impression, conclusion,
258	litigation strategy, or legal theory of the attorney or the
259	association, and which was prepared exclusively for civil or
260	criminal litigation or for adversarial administrative
261	proceedings, or which was prepared in anticipation of imminent
262	civil or criminal litigation or imminent adversarial
263	administrative proceedings until the conclusion of the
264	litigation or adversarial administrative proceedings.
265	2.  Information obtained by an association in connection
266	with the approval of the lease, sale, or other transfer of a
267	unit.
268	3.  Medical records of unit owners.
269	4.  Social security numbers, driver's license numbers,
270	credit card numbers, and other personal identifying information
271	of unit owners, occupants, or tenants.
272	(13)  FINANCIAL REPORTING.--Within 90 days after the end of
273	the fiscal year, or annually on a date provided in the bylaws,
274	the association shall prepare and complete, or contract for the
275	preparation and completion of, a financial report for the
276	preceding fiscal year. Within 21 days after the final financial
277	report is completed by the association or received from the
278	third party, but not later than 120 days after the end of the
279	fiscal year or other date as provided in the bylaws, the
280	association shall mail to each unit owner at the address last
281	furnished to the association by the unit owner, or hand deliver
282	to each unit owner, a copy of the financial report or a notice
283	that a copy of the financial report will be mailed or hand
284	delivered to the unit owner, without charge, upon receipt of a
285	written request from the unit owner. The division shall adopt
286	rules setting forth uniform accounting principles and standards
287	to be used by all associations and shall adopt rules addressing
288	financial reporting requirements for multicondominium
289	associations. In adopting such rules, the division shall
290	consider the number of members and annual revenues of an
291	association. Financial reports shall be prepared as follows:
292	(a)  An association that meets the criteria of this
293	paragraph shall prepare or cause to be prepared a complete set
294	of financial statements in accordance with generally accepted
295	accounting principles. The financial statements shall be based
296	upon the association's total annual revenues, as follows:
297	1.  An association with total annual revenues of $100,000
298	or more, but less than $200,000, shall prepare compiled
299	financial statements.
300	2.  An association with total annual revenues of at least
301	$200,000, but less than $400,000, shall prepare reviewed
302	financial statements.
303	3.  An association with total annual revenues of $400,000
304	or more shall prepare audited financial statements.
305	(b)1.  An association with total annual revenues of less
306	than $100,000 shall prepare a report of cash receipts and
307	expenditures.
308	2.  An association which operates less than 50 units,
309	regardless of the association's annual revenues, shall prepare a
310	report of cash receipts and expenditures in lieu of financial
311	statements required by paragraph (a).
312	3.  A report of cash receipts and disbursements must
313	disclose the amount of receipts by accounts and receipt
314	classifications and the amount of expenses by accounts and
315	expense classifications, including, but not limited to, the
316	following, as applicable: costs for security, professional and
317	management fees and expenses, taxes, costs for recreation
318	facilities, expenses for refuse collection and utility services,
319	expenses for lawn care, costs for building maintenance and
320	repair, insurance costs, administration and salary expenses, and
321	reserves accumulated and expended for capital expenditures,
322	deferred maintenance, and any other category for which the
323	association maintains reserves.
324	(c)  An association may prepare or cause to be prepared,
325	without a meeting of or approval by the unit owners:
326	1.  Compiled, reviewed, or audited financial statements, if
327	the association is required to prepare a report of cash receipts
328	and expenditures;
329	2.  Reviewed or audited financial statements, if the
330	association is required to prepare compiled financial
331	statements; or
332	3.  Audited financial statements if the association is
333	required to prepare reviewed financial statements.
334	(d)  If approved by a majority of the voting interests
335	present at a properly called meeting of the association, an
336	association may prepare or cause to be prepared:
337	1.  A report of cash receipts and expenditures in lieu of a
338	compiled, reviewed, or audited financial statement;
339	2.  A report of cash receipts and expenditures or a
340	compiled financial statement in lieu of a reviewed or audited
341	financial statement; or
342	3.  A report of cash receipts and expenditures, a compiled
343	financial statement, or a reviewed financial statement in lieu
344	of an audited financial statement.
345
346	Such meeting and approval must occur prior to the end of the
347	fiscal year and is effective only for the fiscal year in which
348	the vote is taken. With respect to an association to which the
349	developer has not turned over control of the association, all
350	unit owners, including the developer, may vote on issues related
351	to the preparation of financial reports for the first 2 fiscal
352	years of the association's operation, beginning with the fiscal
353	year in which the declaration is recorded. Thereafter, all unit
354	owners except the developer may vote on such issues until
355	control is turned over to the association by the developer. An
356	association or board of administration may not waive the
357	financial reporting requirements of this section for more than 2
358	consecutive years.
359	(15)  RECONSTRUCTION AFTER CASUALTY.--
360	(a)  In the event the condominium property and units are
361	damaged after a casualty, the board of administration shall
362	obtain reliable and detailed estimates of the cost necessary to
363	repair and replace the damaged property to substantially the
364	same condition existing immediately prior to the casualty and
365	substantially in accordance with the original plans and
366	specifications of the condominium as soon as possible and not
367	later than 60 days after the casualty. If the damage to the
368	condominium property exceeds 50 percent of the property's value,
369	the condominium may be terminated unless 75 percent of the unit
370	owners agree to reconstruction and repair within 90 days after
371	the casualty.
372	(b)  The board of administration shall engage the services
373	of a registered architect and knowledgeable construction
374	specialists to prepare any necessary plans and specifications
375	and shall receive and approve bids for reconstruction, execute
376	all necessary contracts for restoration, and arrange for
377	disbursement of construction funds, the approval of work, and
378	all other matters pertaining to the repairs and reconstruction
379	required.
380	(c)  If the proceeds of the hazard insurance policy
381	maintained by the association pursuant to paragraph (11)(b) are
382	insufficient to pay the estimated costs of reconstruction or at
383	any time during reconstruction and repair, assessments shall be
384	made against all unit owners according to their share of the
385	common elements and expenses as set forth in the declaration of
386	condominium.
387	(d)  Assessments shall be made against unit owners for
388	damage to their units according to the cost of reconstruction or
389	repair of their respective units. The assessments shall be
390	levied and collected as all other assessments are provided for
391	in this chapter.
392	Section 4.  Subsection (2) of section 718.112, Florida
393	Statutes, is amended to read:
394	718.112  Bylaws.--
395	(2)  REQUIRED PROVISIONS.--The bylaws of the association
396	shall provide for the following and, if they do not do so, shall
397	be deemed to include the following:
398	(a)  Administration.--
399	1.  The form of administration of the association shall be
400	described indicating the title of the officers and board of
401	administration and specifying the powers, duties, manner of
402	selection and removal, and compensation, if any, of officers and
403	boards. In the absence of such a provision or determination by
404	the board or membership, the board of administration shall be
405	composed of five members who are unit owners, except in the case
406	of a condominium which has five or fewer units, in which case in
407	a not-for-profit corporation the board shall consist of not
408	fewer than three members who are unit owners. In the absence of
409	provisions to the contrary in the bylaws, the board of
410	administration shall have a president, a secretary, and a
411	treasurer, who shall perform the duties of such officers
412	customarily performed by officers of corporations. Unless
413	prohibited in the bylaws, the board of administration may
414	appoint other officers and grant them the duties it deems
415	appropriate. Unless otherwise provided in the bylaws, the
416	officers shall serve without compensation and at the pleasure of
417	the board of administration. Unless otherwise provided in the
418	bylaws, the members of the board shall serve without
419	compensation.
420	2.  When a unit owner files a written inquiry by certified
421	mail with the board of administration, the board shall respond
422	in writing by certified mail, return receipt requested, to the
423	unit owner within 30 days after of receipt of the inquiry. The
424	board's response shall either give a substantive response to the
425	inquirer, notify the inquirer that a legal opinion has been
426	requested, or notify the inquirer that advice has been requested
427	from the division. If the board requests advice from the
428	division, the board shall, within 10 days after of its receipt
429	of the advice, provide in writing by certified mail a
430	substantive response to the inquirer. If a legal opinion is
431	requested, the board shall, within 60 days after the receipt of
432	the inquiry, provide in writing by certified mail a substantive
433	response to the inquiry. The failure to provide a substantive
434	response to the inquiry as provided herein precludes the board
435	from recovering attorney's fees and costs in any subsequent
436	litigation, administrative proceeding, or arbitration arising
437	out of the inquiry. The association may through its board of
438	administration adopt reasonable rules and regulations regarding
439	the frequency and manner of responding to unit owner inquiries,
440	one of which may be that the association is only obligated to
441	respond to two one written inquiries inquiry per unit in any
442	given 30-day period. In such a case, any additional inquiry or
443	inquiries must be responded to in the subsequent 30-day period,
444	or periods, as applicable.
445	(b)  Quorum; voting requirements; proxies.--
446	1.  Unless a lower number is provided in the bylaws, the
447	percentage of voting interests required to constitute a quorum
448	at a meeting of the members shall be a majority of the voting
449	interests. Unless otherwise provided in this chapter or in the
450	declaration, articles of incorporation, or bylaws, and except as
451	provided in subparagraph (d)3., decisions shall be made by
452	owners of a majority of the voting interests represented at a
453	meeting at which a quorum is present.
454	2.  Except as specifically otherwise provided herein, after
455	January 1, 1992, unit owners may not vote by general proxy, but
456	may vote by limited proxies substantially conforming to a
457	limited proxy form adopted by the division. Limited proxies and
458	general proxies may be used to establish a quorum. Limited
459	proxies shall be used for votes taken to waive or reduce
460	reserves in accordance with subparagraph (f)2.; for votes taken
461	to waive the financial reporting requirements of s. 718.111(13);
462	for votes taken to amend the declaration pursuant to s. 718.110;
463	for votes taken to amend the articles of incorporation or bylaws
464	pursuant to this section; and for any other matter for which
465	this chapter requires or permits a vote of the unit owners.
466	Except as provided in paragraph (d), after January 1, 1992, No
467	proxy, limited or general, shall be used in the election of
468	board members. General proxies may be used for other matters for
469	which limited proxies are not required, and may also be used in
470	voting for nonsubstantive changes to items for which a limited
471	proxy is required and given. Notwithstanding the provisions of
472	this subparagraph, unit owners may vote in person at unit owner
473	meetings. Nothing contained herein shall limit the use of
474	general proxies or require the use of limited proxies for any
475	agenda item or election at any meeting of a timeshare
476	condominium association.
477	3.  Any proxy given shall be effective only for the
478	specific meeting for which originally given and any lawfully
479	adjourned meetings thereof. In no event shall any proxy be valid
480	for a period longer than 90 days after the date of the first
481	meeting for which it was given. Every proxy is revocable at any
482	time at the pleasure of the unit owner executing it.
483	4.  A member of the board of administration or a committee
484	may submit in writing his or her agreement or disagreement with
485	any action taken at a meeting that the member did not attend.
486	This agreement or disagreement may not be used as a vote for or
487	against the action taken and may not be used for the purposes of
488	creating a quorum.
489	5.  When any of the board or committee members meet by
490	telephone conference, those board or committee members attending
491	by telephone conference may be counted toward obtaining a quorum
492	and may vote by telephone. A telephone speaker must be used so
493	that the conversation of those board or committee members
494	attending by telephone may be heard by the board or committee
495	members attending in person as well as by any unit owners
496	present at a meeting.
497	(c)  Board of administration meetings.--Meetings of the
498	board of administration at which a quorum of the members is
499	present shall be open to all unit owners. The board of
500	administration shall address agenda items proposed by a petition
501	of 20 percent of the unit owners submitted at least 48 hours
502	prior to the meeting date, in time for the directors to study
503	and understand the agenda items, and in time to post the updated
504	agenda prior to the meeting. A unit owner's facsimile signature
505	shall constitute the unit owner's original signature in any
506	matter under this chapter that requires the unit owner's
507	signature. Correspondence from the board of administration to
508	unit owners shall be accomplished by the same, or a more secure,
509	delivery method used by the unit owner except as otherwise
510	provided in this paragraph. Any unit owner may tape record or
511	videotape meetings of the board of administration. The right to
512	attend such meetings includes the right to speak at such
513	meetings with reference to all designated agenda items. The
514	division shall adopt reasonable rules governing the tape
515	recording and videotaping of the meeting. The association may
516	adopt written reasonable rules governing the frequency,
517	duration, and manner of unit owner statements. Adequate notice
518	of all meetings, which notice shall specifically incorporate an
519	identification of agenda items, shall be posted conspicuously on
520	the condominium property at least 48 continuous hours preceding
521	the meeting except in an emergency. Any item not included on the
522	notice may be taken up on an emergency basis by at least a
523	majority plus one of the members of the board or by a petition
524	of 20 percent of the unit owners. Such emergency action shall be
525	noticed and ratified at the next regular meeting of the board.
526	However, written notice of any meeting at which nonemergency
527	special assessments, or at which amendment to rules regarding
528	unit use, will be considered shall be mailed, delivered, or
529	electronically transmitted to the unit owners and posted
530	conspicuously on the condominium property not less than 14 days
531	prior to the meeting. Evidence of compliance with this 14-day
532	notice shall be made by an affidavit executed by the person
533	providing the notice and filed among the official records of the
534	association. Upon notice to the unit owners, the board shall by
535	duly adopted rule designate a specific location on the
536	condominium property or association property upon which all
537	notices of board meetings shall be posted. If there is no
538	condominium property or association property upon which notices
539	can be posted, notices of board meetings shall be mailed,
540	delivered, or electronically transmitted at least 14 days before
541	the meeting to the owner of each unit. In lieu of or in addition
542	to the physical posting of notice of any meeting of the board of
543	administration on the condominium property, the association may,
544	by reasonable rule, adopt a procedure for conspicuously posting
545	and repeatedly broadcasting the notice and the agenda on a
546	closed-circuit cable television system serving the condominium
547	association. However, if broadcast notice is used in lieu of a
548	notice posted physically on the condominium property, the notice
549	and agenda must be broadcast at least four times every broadcast
550	hour of each day that a posted notice is otherwise required
551	under this section. When broadcast notice is provided, the
552	notice and agenda must be broadcast in a manner and for a
553	sufficient continuous length of time so as to allow an average
554	reader to observe the notice and read and comprehend the entire
555	content of the notice and the agenda. Notice of any meeting in
556	which regular or special assessments against unit owners are to
557	be considered for any reason shall specifically state contain a
558	statement that assessments will be considered and the nature,
559	cost, and breakdown of any such assessments. Meetings of a
560	committee to take final action on behalf of the board or make
561	recommendations to the board regarding the association budget
562	are subject to the provisions of this paragraph. Meetings of a
563	committee that does not take final action on behalf of the board
564	or make recommendations to the board regarding the association
565	budget are subject to the provisions of this section, unless
566	those meetings are exempted from this section by the bylaws of
567	the association. Notwithstanding any other law, the requirement
568	that board meetings and committee meetings be open to the unit
569	owners is inapplicable to meetings between the board or a
570	committee and the association's attorney, with respect to
571	proposed or pending litigation, when the meeting is held for the
572	purpose of seeking or rendering legal advice.
573	(d)  Unit owner meetings.--
574	1.  There shall be an annual meeting of the unit owners.
575	Unless the bylaws provide otherwise, a vacancy on the board
576	caused by the expiration of a director's term shall be filled by
577	electing a new board member, and the election shall be by secret
578	ballot; however, if the number of vacancies equals or exceeds
579	the number of candidates, no election is required. If there is
580	no provision in the bylaws for terms of the members of the
581	board, the terms of all members of the board shall expire upon
582	the election of their successors at the annual meeting. Any unit
583	owner desiring to be a candidate for board membership shall
584	comply with subparagraph 3. The only prohibition against
585	eligibility for board membership shall be for a person who has
586	been convicted of any felony by any court of record in the
587	United States and who has not had his or her right to vote
588	restored pursuant to law in the jurisdiction of his or her
589	residence is not eligible for board membership. The validity of
590	an action by the board is not affected if it is later determined
591	that a member of the board is ineligible for board membership
592	due to having been convicted of a felony.
593	2.  The bylaws shall provide the method of calling meetings
594	of unit owners, including annual meetings. Written notice, which
595	notice must include an agenda, shall be mailed, hand delivered,
596	or electronically transmitted to each unit owner at least 14
597	days prior to the annual meeting and shall be posted in a
598	conspicuous place on the condominium property at least 14
599	continuous days preceding the annual meeting. Upon notice to the
600	unit owners, the board shall by duly adopted rule designate a
601	specific location on the condominium property or association
602	property upon which all notices of unit owner meetings shall be
603	posted; however, if there is no condominium property or
604	association property upon which notices can be posted, this
605	requirement does not apply. In lieu of or in addition to the
606	physical posting of notice of any meeting of the unit owners on
607	the condominium property, the association may, by reasonable
608	rule, adopt a procedure for conspicuously posting and repeatedly
609	broadcasting the notice and the agenda on a closed-circuit cable
610	television system serving the condominium association. However,
611	if broadcast notice is used in lieu of a notice posted
612	physically on the condominium property, the notice and agenda
613	must be broadcast at least four times every broadcast hour of
614	each day that a posted notice is otherwise required under this
615	section. When broadcast notice is provided, the notice and
616	agenda must be broadcast in a manner and for a sufficient
617	continuous length of time so as to allow an average reader to
618	observe the notice and read and comprehend the entire content of
619	the notice and the agenda. Unless a unit owner waives in writing
620	the right to receive notice of the annual meeting, such notice
621	shall be hand delivered, mailed, or electronically transmitted
622	to each unit owner. Notice for meetings and notice for all other
623	purposes shall be mailed to each unit owner at the address last
624	furnished to the association by the unit owner, or hand
625	delivered to each unit owner. However, if a unit is owned by
626	more than one person, the association shall provide notice, for
627	meetings and all other purposes, to that one address which the
628	developer initially identifies for that purpose and thereafter
629	as one or more of the owners of the unit shall so advise the
630	association in writing, or if no address is given or the owners
631	of the unit do not agree, to the address provided on the deed of
632	record. An officer of the association, or the manager or other
633	person providing the first notice of the association meeting,
634	and the second notice as provided for in subparagraph 3., shall
635	provide an affidavit or United States Postal Service certificate
636	of mailing, to be included in the official records of the
637	association affirming that the notices were notice was mailed or
638	hand delivered, in accordance with this provision.
639	3.  The members of the board shall be elected by written
640	ballot or voting machine. Proxies shall in no event be used in
641	electing the board, either in general elections or elections to
642	fill vacancies caused by recall, resignation, or otherwise,
643	unless otherwise provided in this chapter. Not less than 60 days
644	before a scheduled election, the association or its
645	representative shall mail, deliver, or electronically transmit,
646	whether by separate association mailing or included in another
647	association mailing, delivery, or transmission, including
648	regularly published newsletters, to each unit owner entitled to
649	a vote, a first notice of the date of the election. Any unit
650	owner or other eligible person desiring to be a candidate for
651	the board must give written notice to the association or its
652	representative not less than 40 days before a scheduled
653	election. Together with the written notice and agenda as set
654	forth in subparagraph 2., the association or its representative
655	shall mail, deliver, or electronically transmit a second notice
656	of the election to all unit owners entitled to vote therein,
657	together with a ballot which shall list all candidates. Upon
658	request of a candidate, the association or its representative
659	shall include an information sheet, no larger than 81/2 inches
660	by 11 inches, which must be furnished by the candidate not less
661	than 35 days before the election, to be included with the
662	mailing, delivery, or transmission of the ballot, with the costs
663	of mailing, delivery, or electronic transmission and copying to
664	be borne by the association. The association or its
665	representative is not liable for the contents of the information
666	sheets prepared by the candidates. In order to reduce costs, the
667	association may print or duplicate the information sheets on
668	both sides of the paper. The division shall by rule establish
669	voting procedures consistent with the provisions contained
670	herein, including rules establishing procedures for giving
671	notice by electronic transmission and rules providing for the
672	secrecy of ballots. All ballot envelopes must be placed in a
673	locked or sealed ballot drop box immediately upon receipt, and
674	the box shall not be opened in advance of the election meeting.
675	Elections shall be decided by a plurality of those ballots cast.
676	There shall be no quorum requirement; however, at least 20
677	percent of the eligible voters must cast a ballot in order to
678	have a valid election of members of the board. No unit owner
679	shall permit any other person to vote his or her ballot, and any
680	such ballots improperly cast shall be deemed invalid, provided
681	any unit owner who violates this provision may be fined by the
682	association in accordance with s. 718.303. A unit owner who
683	needs assistance in casting the ballot for the reasons stated in
684	s. 101.051 may obtain assistance in casting the ballot. The
685	regular election shall occur on the date of the annual meeting.
686	The provisions of this subparagraph shall not apply to timeshare
687	condominium associations. Notwithstanding the provisions of this
688	subparagraph, an election is not required unless more candidates
689	file notices of intent to run or are nominated than board
690	vacancies exist.
691	4.  Any approval by unit owners called for by this chapter
692	or the applicable declaration or bylaws, including, but not
693	limited to, the approval requirement in s. 718.111(8), shall be
694	made at a duly noticed meeting of unit owners and shall be
695	subject to all requirements of this chapter or the applicable
696	condominium documents relating to unit owner decisionmaking,
697	except that unit owners may take action by written agreement,
698	without meetings, on matters for which action by written
699	agreement without meetings is expressly allowed by the
700	applicable bylaws or declaration or any statute that provides
701	for such action.
702	5.  Unit owners may waive notice of specific meetings if
703	allowed by the applicable bylaws or declaration or any statute.
704	If authorized by the bylaws, notice of meetings of the board of
705	administration, unit owner meetings, except unit owner meetings
706	called to recall board members under paragraph (j), and
707	committee meetings may be given by electronic transmission to
708	unit owners who consent to receive notice by electronic
709	transmission.
710	6.  Unit owners shall have the right to participate in
711	meetings of unit owners with reference to all designated agenda
712	items. However, the association may adopt reasonable rules
713	governing the frequency, duration, and manner of unit owner
714	participation.
715	7.  Any unit owner may tape record or videotape a meeting
716	of the unit owners subject to reasonable rules adopted by the
717	division.
718	8.  Unless otherwise provided in the bylaws, any vacancy
719	occurring on the board before the expiration of a term may be
720	filled by the affirmative vote of the majority of the remaining
721	directors, even if the remaining directors constitute less than
722	a quorum, or by the sole remaining director. In the alternative,
723	a board may hold an election to fill the vacancy, in which case
724	the election procedures must conform to the requirements of
725	subparagraph 3. unless the association has opted out of the
726	statutory election process, in which case the bylaws of the
727	association control. Unless otherwise provided in the bylaws, a
728	board member appointed or elected under this section shall fill
729	the vacancy for the unexpired term of the seat being filled.
730	Filling vacancies created by recall is governed by paragraph (j)
731	and rules adopted by the division.
732	9.  Unit owners shall have the right to have items not
733	related to the budget placed on the agenda of the annual meeting
734	and voted upon if a written request is made to the board of
735	administration by 20 percent or more of all voting interests at
736	least 90 days before the date of the annual meeting.
737
738	Notwithstanding subparagraphs (b)2. and (d)3., an association
739	may, by the affirmative vote of a majority of the total voting
740	interests, provide for different voting and election procedures
741	in its bylaws, which vote may be by a proxy specifically
742	delineating the different voting and election procedures. The
743	different voting and election procedures may provide for
744	elections to be conducted by limited or general proxy.
745	(e)  Budget meeting.--
746	1.  Any meeting at which a proposed annual budget of an
747	association will be considered by the board or unit owners shall
748	be open to all unit owners. At least 14 days prior to such a
749	meeting, the board shall hand deliver to each unit owner, mail
750	to each unit owner at the address last furnished to the
751	association by the unit owner, or electronically transmit to the
752	location furnished by the unit owner for that purpose a notice
753	of such meeting and a copy of the proposed annual budget. An
754	officer or manager of the association, or other person providing
755	notice of such meeting, shall execute an affidavit evidencing
756	compliance with such notice requirement, and such affidavit
757	shall be filed among the official records of the association.
758	2.a.  If a board adopts in any fiscal year an annual budget
759	which requires assessments against unit owners which exceed 115
760	percent of assessments for the preceding fiscal year, the board
761	shall conduct a special meeting of the unit owners to consider a
762	substitute budget if the board receives, within 21 days after
763	adoption of the annual budget, a written request for a special
764	meeting from at least 10 percent of all voting interests. The
765	special meeting shall be conducted within 60 days after adoption
766	of the annual budget. At least 14 days prior to such special
767	meeting, the board shall hand deliver to each unit owner, or
768	mail to each unit owner at the address last furnished to the
769	association, a notice of the meeting. An officer or manager of
770	the association, or other person providing notice of such
771	meeting shall execute an affidavit evidencing compliance with
772	this notice requirement, and such affidavit shall be filed among
773	the official records of the association. Unit owners may
774	consider and adopt a substitute budget at the special meeting. A
775	substitute budget is adopted if approved by a majority of all
776	voting interests unless the bylaws require adoption by a greater
777	percentage of voting interests. If there is not a quorum at the
778	special meeting or a substitute budget is not adopted, the
779	annual budget previously adopted by the board shall take effect
780	as scheduled.
781	b.  Any determination of whether assessments exceed 115
782	percent of assessments for the prior fiscal year shall exclude
783	any authorized provision for reasonable reserves for repair or
784	replacement of the condominium property, anticipated expenses of
785	the association which the board does not expect to be incurred
786	on a regular or annual basis, or assessments for betterments to
787	the condominium property.
788	c.  If the developer controls the board, assessments shall
789	not exceed 115 percent of assessments for the prior fiscal year
790	unless approved by a majority of all voting interests.
791	(f)  Annual budget.--
792	1.  The association shall prepare an annual budget of
793	estimated revenues and expenses. The adopted budget of the prior
794	fiscal year shall remain in effect until the association has
795	adopted a new budget for the current fiscal year. The proposed
796	annual budget of estimated revenues and common expenses shall be
797	detailed and shall show the amounts budgeted by accounts and
798	expense classifications, including, if applicable, but not
799	limited to, those expenses listed in s. 718.504(21). A
800	multicondominium association shall adopt a separate budget of
801	common expenses for each condominium the association operates
802	and shall adopt a separate budget of common expenses for the
803	association. In addition, if the association maintains limited
804	common elements with the cost to be shared only by those
805	entitled to use the limited common elements as provided for in
806	s. 718.113(1), the budget or a schedule attached thereto shall
807	show amounts budgeted therefor. If, after turnover of control of
808	the association to the unit owners, any of the expenses listed
809	in s. 718.504(21) are not applicable, they need not be listed.
810	2.  In addition to annual operating expenses, the budget
811	shall include reserve accounts for capital expenditures and
812	deferred maintenance. These accounts shall include, but are not
813	limited to, structural repairs, roof replacement, building
814	painting, and pavement resurfacing, regardless of the amount of
815	deferred maintenance expense or replacement cost, and for any
816	other item for which the deferred maintenance expense or
817	replacement cost exceeds $10,000. The amount to be reserved
818	shall be computed by means of a formula which is based upon
819	estimated remaining useful life and estimated replacement cost
820	or deferred maintenance expense of each reserve item. The
821	association may adjust replacement reserve assessments annually
822	to take into account any changes in estimates or extension of
823	the useful life of a reserve item caused by deferred
824	maintenance. This subsection does not apply to an adopted budget
825	in which the members of an association have determined, by a
826	majority vote at a duly called meeting of the association, to
827	provide no reserves or less reserves than required by this
828	subsection. However, prior to turnover of control of an
829	association by a developer to unit owners other than a developer
830	pursuant to s. 718.301, the developer may vote to waive the
831	reserves or reduce the funding of reserves for the first 2
832	fiscal years of the association's operation, beginning with the
833	fiscal year in which the initial declaration is recorded, after
834	which time reserves may be waived or reduced only upon the vote
835	of a majority of all nondeveloper voting interests voting in
836	person or by limited proxy at a duly called meeting of the
837	association. If a meeting of the unit owners has been called to
838	determine whether to waive or reduce the funding of reserves,
839	and no such result is achieved or a quorum is not attained, the
840	reserves as included in the budget shall go into effect. After
841	the turnover, the developer may vote its voting interest to
842	waive or reduce the funding of reserves.
843	3.  Reserve funds and any interest accruing thereon shall
844	remain in the reserve account or accounts, and shall be used
845	only for authorized reserve expenditures unless their use for
846	other purposes is approved in advance by a majority vote at a
847	duly called meeting of the association. Prior to turnover of
848	control of an association by a developer to unit owners other
849	than the developer pursuant to s. 718.301, the developer-
850	controlled association shall not vote to use reserves for
851	purposes other than that for which they were intended without
852	the approval of a majority of all nondeveloper voting interests,
853	voting in person or by limited proxy at a duly called meeting of
854	the association.
855	4.  The only voting interests which are eligible to vote on
856	questions that involve waiving or reducing the funding of
857	reserves, or using existing reserve funds for purposes other
858	than purposes for which the reserves were intended, are the
859	voting interests of the units subject to assessment to fund the
860	reserves in question. The face of all ballots that involve
861	questions relating to waiving or reducing the funding of
862	reserves, or using existing reserve funds for purposes other
863	than purposes for which the reserves were intended, shall
864	contain the following statement in capitalized, bold letters in
865	a font size larger than any other used on the face of the
866	ballot: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING
867	ALTERNATE USES OF EXISTING RESERVES, MAY RESULT IN UNIT OWNER
868	LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS
869	REGARDING THOSE RESERVE ITEMS.
870	5.  A vote to provide for no reserves or a percentage of
871	reserves shall be made at the annual meeting of the unit owners
872	called under paragraph (d).
873	6.  Notwithstanding subparagraph 3., the association after
874	turnover of control of the association may, in case of a
875	catastrophic event, use reserve funds for nonscheduled purposes
876	to mitigate further damage to units or common elements or to
877	make the condominium accessible for repairs.
878	7.  Except in cases of emergency, or unless otherwise
879	provided for in the bylaws or approved by a vote of a majority
880	of the unit owners in advance, the board of administration may
881	not apply for or accept a loan or line of credit in an amount
882	that exceeds 10 percent of the association's annual budget for
883	the current year.
884	(g)  Assessments.--After the declaration has been recorded,
885	and until such time as the association has been created, all
886	common expenses shall be paid by the developer. Assessments
887	shall be levied in an amount determined by the adopted budget or
888	an authorized special assessment. The manner of collecting from
889	the unit owners their shares of the common expenses shall be
890	stated in the bylaws. Assessments shall be made against units on
891	a quarter-annual, or more frequent, basis not less frequently
892	than quarterly in an amount which is not less than that required
893	to provide funds in advance for payment of all of the
894	anticipated current operating expenses and for all of the unpaid
895	operating expenses previously incurred. Nothing in this
896	paragraph shall preclude the right of an association to
897	accelerate assessments of an owner delinquent in payment of
898	common expenses against whom a lien has been filed. Accelerated
899	assessments shall be due and payable after on the date the claim
900	of lien is filed. Such accelerated assessments shall include the
901	amounts due for the remainder of the budget year in which the
902	claim of lien was filed.
903	(h)  Amendment of bylaws.--
904	1.  The method by which the bylaws may be amended
905	consistent with the provisions of this chapter shall be stated.
906	If the bylaws fail to provide a method of amendment, the bylaws
907	may be amended if the amendment is approved by the owners of not
908	less than two-thirds of the voting interests.
909	2.  No bylaw shall be revised or amended by reference to
910	its title or number only. Proposals to amend existing bylaws
911	shall contain the full text of the bylaws to be amended; new
912	words shall be inserted in the text underlined, and words to be
913	deleted shall be lined through with hyphens. However, if the
914	proposed change is so extensive that this procedure would
915	hinder, rather than assist, the understanding of the proposed
916	amendment, it is not necessary to use underlining and hyphens as
917	indicators of words added or deleted, but, instead, a notation
918	must be inserted immediately preceding the proposed amendment in
919	substantially the following language: "Substantial rewording of
920	bylaw. See bylaw _____ for present text."
921	3.  Nonmaterial errors or omissions in the bylaw process
922	will not invalidate an otherwise properly promulgated amendment.
923	(i)  Transfer fees.--No charge shall be made by the
924	association or any body thereof in connection with the sale,
925	mortgage, lease, sublease, or other transfer of a unit unless
926	the association is required to approve such transfer and a fee
927	for such approval is provided for in the declaration, articles,
928	or bylaws. Any such fee may be preset, but in no event may such
929	fee exceed $100 per applicant other than husband/wife or
930	parent/dependent child, which are considered one applicant.
931	However, if the lease or sublease is a renewal of a lease or
932	sublease with the same lessee or sublessee, no charge shall be
933	made. The foregoing notwithstanding, an association may, if the
934	authority to do so appears in the declaration or bylaws, require
935	that a prospective lessee place a security deposit, in an amount
936	not to exceed the equivalent of 1 month's rent, into an escrow
937	account maintained by the association. The security deposit
938	shall protect against damages to the common elements or
939	association property. Payment of interest, claims against the
940	deposit, refunds, and disputes under this paragraph shall be
941	handled in the same fashion as provided in part II of chapter
942	83.
943	(j)  Recall of board members.--Subject to the provisions of
944	s. 718.301, any member of the board of administration may be
945	recalled and removed from office with or without cause by the
946	vote or agreement in writing by a majority of all the voting
947	interests. A special meeting of the unit owners to recall a
948	member or members of the board of administration may be called
949	by 10 percent of the voting interests giving notice of the
950	meeting as required for a meeting of unit owners, and the notice
951	shall state the purpose of the meeting. Electronic transmission
952	may not be used as a method of giving notice of a meeting called
953	in whole or in part for this purpose.
954	1.  If the recall is approved by a majority of all voting
955	interests by a vote at a meeting, the recall will be effective
956	as provided herein. The board shall duly notice and hold a board
957	meeting within 5 full business days of the adjournment of the
958	unit owner meeting to recall one or more board members. At the
959	meeting, the board shall either certify the recall, in which
960	case such member or members shall be recalled effective
961	immediately and shall turn over to the board within 5 full
962	business days any and all records and property of the
963	association in their possession, or shall proceed as set forth
964	in subparagraph 3.
965	2.  If the proposed recall is by an agreement in writing by
966	a majority of all voting interests, the agreement in writing or
967	a copy thereof shall be served on the association by certified
968	mail or by personal service in the manner authorized by chapter
969	48 and the Florida Rules of Civil Procedure. The board of
970	administration shall duly notice and hold a meeting of the board
971	within 5 full business days after receipt of the agreement in
972	writing. At the meeting, the board shall either certify the
973	written agreement to recall a member or members of the board, in
974	which case such member or members shall be recalled effective
975	immediately and shall turn over to the board within 5 full
976	business days any and all records and property of the
977	association in their possession, or proceed as described in
978	subparagraph 3.
979	3.  If the board determines not to certify the written
980	agreement to recall a member or members of the board, or does
981	not certify the recall by a vote at a meeting, the board shall,
982	within 5 full business days after the meeting, file with the
983	division a petition for arbitration pursuant to the procedures
984	in s. 718.1255. For the purposes of this section, the unit
985	owners who voted at the meeting or who executed the agreement in
986	writing shall constitute one party under the petition for
987	arbitration. If the arbitrator certifies the recall as to any
988	member or members of the board, the recall will be effective
989	upon mailing of the final order of arbitration to the
990	association. If the association fails to comply with the order
991	of the arbitrator, the division may take action pursuant to s.
992	718.501. Any member or members so recalled shall deliver to the
993	board any and all records of the association in their possession
994	within 5 full business days of the effective date of the recall.
995	4.  If the board fails to duly notice and hold a board
996	meeting within 5 full business days of service of an agreement
997	in writing or within 5 full business days of the adjournment of
998	the unit owner recall meeting, the recall shall be deemed
999	effective and the board members so recalled shall immediately
1000	turn over to the board any and all records and property of the
1001	association.
1002	5.  If a vacancy occurs on the board as a result of a
1003	recall and less than a majority of the board members are
1004	removed, the vacancy may be filled by the affirmative vote of a
1005	majority of the remaining directors, notwithstanding any
1006	provision to the contrary contained in this subsection. If
1007	vacancies occur on the board as a result of a recall and a
1008	majority or more of the board members are removed, the vacancies
1009	shall be filled in accordance with procedural rules to be
1010	adopted by the division, which rules need not be consistent with
1011	this subsection. The rules must provide procedures governing the
1012	conduct of the recall election as well as the operation of the
1013	association during the period after a recall but prior to the
1014	recall election.
1015	(k)  Arbitration.--There shall be a provision for mandatory
1016	nonbinding arbitration as provided for in s. 718.1255.
1017	(k)(l)  Certificate of compliance.--There shall be a
1018	provision that a certificate of compliance from a licensed
1019	electrical contractor or electrician may be accepted by the
1020	association's board as evidence of compliance of the condominium
1021	units with the applicable fire and life safety code.
1022	Notwithstanding the provisions of chapter 633 or of any other
1023	code, statute, ordinance, administrative rule, or regulation, or
1024	any interpretation of the foregoing, an association,
1025	condominium, or unit owner is not obligated to retrofit the
1026	common elements or units of a residential condominium with a
1027	fire sprinkler system or other engineered lifesafety system in a
1028	building that has been certified for occupancy by the applicable
1029	governmental entity, if the unit owners have voted to forego
1030	such retrofitting and engineered lifesafety system by the
1031	affirmative vote of two-thirds of all voting interests in the
1032	affected condominium. However, a condominium association may not
1033	vote to forego the retrofitting with a fire sprinkler system of
1034	common areas in a high-rise building. For purposes of this
1035	subsection, the term "high-rise building" means a building that
1036	is greater than 75 feet in height where the building height is
1037	measured from the lowest level of fire department access to the
1038	floor of the highest occupiable story. For purposes of this
1039	subsection, the term "common areas" means any enclosed hallway,
1040	corridor, lobby, stairwell, or entryway. In no event shall the
1041	local authority having jurisdiction require completion of
1042	retrofitting of common areas with a sprinkler system before the
1043	end of 2014.
1044	1.  A vote to forego retrofitting may be obtained by
1045	limited proxy or by a ballot personally cast at a duly called
1046	membership meeting, or by execution of a written consent by the
1047	member, and shall be effective upon the recording of a
1048	certificate attesting to such vote in the public records of the
1049	county where the condominium is located. The association shall
1050	mail, hand deliver, or electronically transmit to each unit
1051	owner written notice at least 14 days prior to such membership
1052	meeting in which the vote to forego retrofitting of the required
1053	fire sprinkler system is to take place. Within 30 days after the
1054	association's opt-out vote, notice of the results of the opt-out
1055	vote shall be mailed, hand delivered, or electronically
1056	transmitted to all unit owners. Evidence of compliance with this
1057	30-day notice shall be made by an affidavit executed by the
1058	person providing the notice and filed among the official records
1059	of the association. After such notice is provided to each owner,
1060	a copy of such notice shall be provided by the current owner to
1061	a new owner prior to closing and shall be provided by a unit
1062	owner to a renter prior to signing a lease.
1063	2.  As part of the information collected annually from
1064	condominiums, the division shall require condominium
1065	associations to report the membership vote and recording of a
1066	certificate under this subsection and, if retrofitting has been
1067	undertaken, the per-unit cost of such work. The division shall
1068	annually report to the Division of State Fire Marshal of the
1069	Department of Financial Services the number of condominiums that
1070	have elected to forego retrofitting.
1071	(l)(m)  Common elements; limited power to convey.--
1072	1.  With respect to condominiums created on or after
1073	October 1, 1994, the bylaws shall include a provision granting
1074	the association a limited power to convey a portion of the
1075	common elements to a condemning authority for the purpose of
1076	providing utility easements, right-of-way expansion, or other
1077	public purposes, whether negotiated or as a result of eminent
1078	domain proceedings.
1079	2.  In any case where the bylaws are silent as to the
1080	association's power to convey common elements as described in
1081	subparagraph 1., the bylaws shall be deemed to include the
1082	provision described in subparagraph 1.
1083	Section 5.  Section 718.113, Florida Statutes, is amended
1084	to read:
1085	718.113  Maintenance; limitation upon improvement; display
1086	of flag; display of religious decorations; hurricane shutters.--
1087	(1)  Maintenance of the common elements is the
1088	responsibility of the association. The declaration may provide
1089	that certain limited common elements shall be maintained by
1090	those entitled to use the limited common elements or that the
1091	association shall provide the maintenance, either as a common
1092	expense or with the cost shared only by those entitled to use
1093	the limited common elements. If the maintenance is to be by the
1094	association at the expense of only those entitled to use the
1095	limited common elements, the declaration shall describe in
1096	detail the method of apportioning such costs among those
1097	entitled to use the limited common elements, and the association
1098	may use the provisions of s. 718.116 to enforce payment of the
1099	shares of such costs by the unit owners entitled to use the
1100	limited common elements.
1101	(2)(a)  Except as otherwise provided in this section, there
1102	shall be no material alteration or substantial additions to the
1103	common elements or to real property which is association
1104	property, except in a manner provided in the declaration as
1105	originally recorded or as amended under the procedures provided
1106	therein. If the declaration as originally recorded or as amended
1107	under the procedures provided therein does not specify the
1108	procedure for approval of material alterations or substantial
1109	additions, 75 percent of the total voting interests of the
1110	association must approve the alterations or additions.
1111	(b)  There shall not be any material alteration of, or
1112	substantial addition to, the common elements of any condominium
1113	operated by a multicondominium association unless approved in
1114	the manner provided in the declaration of the affected
1115	condominium or condominiums as originally recorded or as amended
1116	under the procedures provided therein. If a declaration as
1117	originally recorded or as amended under the procedures provided
1118	therein does not specify a procedure for approving such an
1119	alteration or addition, the approval of 75 percent of the total
1120	voting interests of each affected condominium is required. This
1121	subsection does not prohibit a provision in any declaration,
1122	articles of incorporation, or bylaws as originally recorded or
1123	as amended under the procedures provided therein requiring the
1124	approval of unit owners in any condominium operated by the same
1125	association or requiring board approval before a material
1126	alteration or substantial addition to the common elements is
1127	permitted. This paragraph is intended to clarify existing law
1128	and applies to associations existing on the effective date of
1129	this act.
1130	(c)  There shall not be any material alteration or
1131	substantial addition made to association real property operated
1132	by a multicondominium association, except as provided in the
1133	declaration, articles of incorporation, or bylaws as originally
1134	recorded or as amended under the procedures provided therein. If
1135	the declaration, articles of incorporation, or bylaws as
1136	originally recorded or as amended under the procedures provided
1137	therein do not specify the procedure for approving an alteration
1138	or addition to association real property, the approval of 75
1139	percent of the total voting interests of the association is
1140	required. This paragraph is intended to clarify existing law and
1141	applies to associations existing on the effective date of this
1142	act.
1143	(3)  A unit owner shall not do anything within his or her
1144	unit or on the common elements which would adversely affect the
1145	safety or soundness of the common elements or any portion of the
1146	association property or condominium property which is to be
1147	maintained by the association.
1148	(4)  Any unit owner may display one portable, removable
1149	United States flag in a respectful way and, on Armed Forces Day,
1150	Memorial Day, Flag Day, Independence Day, and Veterans Day, may
1151	display in a respectful way portable, removable official flags,
1152	not larger than 41/2 feet by 6 feet, that represent the United
1153	States Army, Navy, Air Force, Marine Corps, or Coast Guard,
1154	regardless of any declaration rules or requirements dealing with
1155	flags or decorations.
1156	(5)  Each board of administration shall, at each annual
1157	meeting, adopt or restate hurricane shutter specifications for
1158	each building within each condominium operated by the
1159	association which shall include color, style, and other factors
1160	deemed relevant by the board. All specifications adopted or
1161	restated by the board shall comply with the applicable building
1162	code. Notwithstanding any provision to the contrary in the
1163	condominium documents, if approval is required by the documents,
1164	a board shall not refuse to approve the installation or
1165	replacement of hurricane shutters conforming to the
1166	specifications adopted by the board. The board may, subject to
1167	the provisions of s. 718.3026, and the approval of a majority of
1168	voting interests of the condominium, install hurricane shutters
1169	and may maintain, repair, or replace such approved hurricane
1170	shutters or hurricane protection that complies with the
1171	applicable building code, whether on or within common elements,
1172	limited common elements, units, or association property.
1173	However, where laminated glass or window film architecturally
1174	designed to function as hurricane protection which complies with
1175	the applicable building code has been installed, the board may
1176	not install hurricane shutters. The board may operate shutters
1177	installed pursuant to this subsection without permission of the
1178	unit owners only where such operation is necessary to preserve
1179	and protect the condominium property and association property.
1180	The installation, replacement, operation, repair, and
1181	maintenance of such shutters in accordance with the procedures
1182	set forth herein shall not be deemed a material alteration to
1183	the common elements or association property within the meaning
1184	of this section.
1185	(6)  Every 5 years, the board of administration shall have
1186	the condominium buildings inspected by a professional engineer
1187	or professional architect registered in the state for the
1188	purposes of determining whether the building is structurally and
1189	electrically safe, and determining any immediate maintenance
1190	required as well as any long-term maintenance necessary in the
1191	form of a long-term maintenance plan. The long-term maintenance
1192	plan shall include an executive summary, which shall be
1193	distributed to all unit owners. The engineer or architect shall
1194	provide a report indicating the manner and type of inspection
1195	forming the basis for the report and description of any matters
1196	identified as requiring remedial action. The report shall become
1197	an official record of the association to be provided to the
1198	members upon request pursuant to s. 718.111(12).
1199	(7)  No association may prohibit the attachment of
1200	religious items at the door or at the entrance of a unit. The
1201	board may adopt reasonable size restrictions for such items.
1202	Section 6.  Section 718.1224, Florida Statutes, is created
1203	to read:
1204	718.1224  Prohibition against SLAPP suits.--
1205	(1)  It is the intent of the Legislature to protect the
1206	right of condominium unit owners to exercise their rights to
1207	instruct their representatives and petition for redress of
1208	grievances before the various governmental entities of this
1209	state as protected by the First Amendment to the United States
1210	Constitution and s. 5, Art. I of the State Constitution. The
1211	Legislature recognizes that strategic lawsuits against public
1212	participation, or "SLAPP" suits as they are typically referred
1213	to, have occurred when association members are sued by
1214	individuals, business entities, or governmental entities arising
1215	out of a condominium unit owner's appearance and presentation
1216	before a governmental entity on matters related to the
1217	condominium association. However, it is the public policy of
1218	this state that governmental entities, business organizations,
1219	and individuals not engage in SLAPP suits, because such actions
1220	are inconsistent with the right of condominium unit owners to
1221	participate in the state's institutions of government.
1222	Therefore, the Legislature finds and declares that prohibiting
1223	such lawsuits by governmental entities, business entities, and
1224	individuals against condominium unit owners who address matters
1225	concerning their condominium association will preserve this
1226	fundamental state policy, preserve the constitutional rights of
1227	condominium unit owners, and ensure the continuation of
1228	representative government in this state. It is the intent of the
1229	Legislature that such lawsuits be expeditiously disposed of by
1230	the courts. As used in this subsection, the term "governmental
1231	entity" means the state, including the executive, legislative,
1232	and judicial branches of government, the independent
1233	establishments of the state, counties, municipalities,
1234	districts, authorities, boards, or commissions, or any agencies
1235	of these branches which are subject to chapter 286.
1236	(2)  A governmental entity, business organization, or
1237	individual in this state may not file or cause to be filed
1238	through its employees or agents any lawsuit, cause of action,
1239	claim, cross-claim, or counterclaim against a condominium unit
1240	owner without merit and solely because such condominium unit
1241	owner has exercised the right to instruct his or her
1242	representatives or the right to petition for redress of
1243	grievances before the various governmental entities of this
1244	state, as protected by the First Amendment to the United States
1245	Constitution and s. 5, Art. I of the State Constitution.
1246	(3)  A condominium unit owner sued by a governmental
1247	entity, business organization, or individual in violation of
1248	this section has a right to an expeditious resolution of a claim
1249	that the suit is in violation of this section. A condominium
1250	unit owner may petition the court for an order dismissing the
1251	action or granting final judgment in favor of that condominium
1252	unit owner. The petitioner may file a motion for summary
1253	judgment, together with supplemental affidavits, seeking a
1254	determination that the governmental entity's, business
1255	organization's, or individual's lawsuit has been brought in
1256	violation of this section. The governmental entity, business
1257	organization, or individual shall thereafter file its response
1258	and any supplemental affidavits. As soon as practicable, the
1259	court shall set a hearing on the petitioner's motion, which
1260	shall be held at the earliest possible time after the filing of
1261	the governmental entity's, business organization's, or
1262	individual's response. The court may award the condominium unit
1263	owner sued by the governmental entity, business organization, or
1264	individual actual damages arising from the governmental
1265	entity's, individual's, or business organization's violation of
1266	this section. A court may treble the damages awarded to a
1267	prevailing condominium unit owner and shall state the basis for
1268	the treble-damages award in its judgment. The court shall award
1269	the prevailing party reasonable attorney's fees and costs
1270	incurred in connection with a claim that an action was filed in
1271	violation of this section.
1272	(4)  Condominium associations may not expend association
1273	funds in prosecuting a SLAPP suit against a condominium unit
1274	owner.
1275	Section 7.  Subsection (4) of section 718.1255, Florida
1276	Statutes, is amended to read:
1277	718.1255  Alternative dispute resolution; voluntary
1278	mediation; mandatory nonbinding arbitration; legislative
1279	findings.--
1280	(4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF
1281	DISPUTES.--The Division of Florida Land Sales, Condominiums, and
1282	Mobile Homes of the Department of Business and Professional
1283	Regulation shall employ full-time attorneys to act as
1284	arbitrators to conduct the arbitration hearings provided by this
1285	chapter. The division may also certify attorneys who are not
1286	employed by the division to act as arbitrators to conduct the
1287	arbitration hearings provided by this section. No person may be
1288	employed by the department as a full-time arbitrator unless he
1289	or she is a member in good standing of The Florida Bar. The
1290	department shall promulgate rules of procedure to govern such
1291	arbitration hearings including mediation incident thereto. The
1292	decision of an arbitrator shall be final; however, such a
1293	decision shall not be deemed final agency action. Nothing in
1294	this provision shall be construed to foreclose parties from
1295	proceeding in a trial de novo unless the parties have agreed
1296	that the arbitration is binding. If such judicial proceedings
1297	are initiated, the final decision of the arbitrator shall be
1298	admissible in evidence in the trial de novo.
1299	(a)  Prior to the institution of court litigation, a party
1300	to a dispute shall petition the division for nonbinding
1301	arbitration. The petition must be accompanied by a filing fee in
1302	the amount of $50. Filing fees collected under this section must
1303	be used to defray the expenses of the alternative dispute
1304	resolution program.
1305	(b)  The petition must recite, and have attached thereto,
1306	supporting proof that the petitioner gave the respondents:
1307	1.  Advance written notice of the specific nature of the
1308	dispute;
1309	2.  A demand for relief, and a reasonable opportunity to
1310	comply or to provide the relief; and
1311	3.  Notice of the intention to file an arbitration petition
1312	or other legal action in the absence of a resolution of the
1313	dispute.
1314
1315	Failure to include the allegations or proof of compliance with
1316	these prerequisites requires dismissal of the petition without
1317	prejudice.
1318	(c)  Upon receipt, the petition shall be promptly reviewed
1319	by the division to determine the existence of a dispute and
1320	compliance with the requirements of paragraphs (a) and (b). If
1321	emergency relief is required and is not available through
1322	arbitration, a motion to stay the arbitration may be filed. The
1323	motion must be accompanied by a verified petition alleging facts
1324	that, if proven, would support entry of a temporary injunction,
1325	and if an appropriate motion and supporting papers are filed,
1326	the division may abate the arbitration pending a court hearing
1327	and disposition of a motion for temporary injunction.
1328	(d)  Upon determination by the division that a dispute
1329	exists and that the petition substantially meets the
1330	requirements of paragraphs (a) and (b) and any other applicable
1331	rules, a copy of the petition shall forthwith be served by the
1332	division upon all respondents.
1333	(e)  Either before or after the filing of the respondents'
1334	answer to the petition, any party may request that the
1335	arbitrator refer the case to mediation under this section and
1336	any rules adopted by the division. Upon receipt of a request for
1337	mediation, the division shall promptly refer the case contact
1338	the parties to determine if there is agreement that mediation
1339	would be appropriate. If all parties agree, the dispute must be
1340	referred to mediation. Notwithstanding a lack of an agreement by
1341	all parties, The arbitrator may refer a dispute to mediation at
1342	any time.
1343	(f)  Upon referral of a case to mediation, the parties must
1344	select a mutually acceptable mediator. To assist in the
1345	selection, the arbitrator shall provide the parties with a list
1346	of both volunteer and paid mediators that have been certified by
1347	the division under s. 718.501. If the parties are unable to
1348	agree on a mediator within the time allowed by the arbitrator,
1349	the arbitrator shall appoint a mediator from the list of
1350	certified mediators. If a case is referred to mediation, the
1351	parties shall attend a mediation conference, as scheduled by the
1352	parties and the mediator. If any party fails to attend a duly
1353	noticed mediation conference, without the permission or approval
1354	of the arbitrator or mediator, the arbitrator must impose
1355	sanctions against the party, including the striking of any
1356	pleadings filed, the entry of an order of dismissal or default
1357	if appropriate, and the award of costs and attorneys' fees
1358	incurred by the other parties. Unless otherwise agreed to by the
1359	parties or as provided by order of the arbitrator, a party is
1360	deemed to have appeared at a mediation conference by the
1361	physical presence of the party or its representative having full
1362	authority to settle without further consultation, provided that
1363	an association may comply by having one or more representatives
1364	present with full authority to negotiate a settlement and
1365	recommend that the board of administration ratify and approve
1366	such a settlement within 5 days from the date of the mediation
1367	conference. The parties shall share equally the expense of
1368	mediation, unless they agree otherwise.
1369	(g)  The purpose of mediation as provided for by this
1370	section is to present the parties with an opportunity to resolve
1371	the underlying dispute in good faith, and with a minimum
1372	expenditure of time and resources.
1373	(h)  Mediation proceedings must generally be conducted in
1374	accordance with the Florida Rules of Civil Procedure, and these
1375	proceedings are privileged and confidential to the same extent
1376	as court-ordered mediation. Persons who are not parties to the
1377	dispute are not allowed to attend the mediation conference
1378	without the consent of all parties, with the exception of
1379	counsel for the parties and corporate representatives designated
1380	to appear for a party. If the mediator declares an impasse after
1381	a mediation conference has been held, the arbitration proceeding
1382	terminates, unless all parties agree in writing to continue the
1383	arbitration proceeding, in which case the arbitrator's decision
1384	shall be either binding or nonbinding, as agreed upon by the
1385	parties; in the arbitration proceeding, the arbitrator shall not
1386	consider any evidence relating to the unsuccessful mediation
1387	except in a proceeding to impose sanctions for failure to appear
1388	at the mediation conference. If the parties do not agree to
1389	continue arbitration, the arbitrator shall enter an order of
1390	dismissal, and either party may institute a suit in a court of
1391	competent jurisdiction. The parties may seek to recover any
1392	costs and attorneys' fees incurred in connection with
1393	arbitration and mediation proceedings under this section as part
1394	of the costs and fees that may be recovered by the prevailing
1395	party in any subsequent litigation.
1396	(i)  Arbitration shall be conducted according to rules
1397	promulgated by the division. The filing of a petition for
1398	arbitration shall toll the applicable statute of limitations.
1399	(j)  At the request of any party to the arbitration, such
1400	arbitrator shall issue subpoenas for the attendance of witnesses
1401	and the production of books, records, documents, and other
1402	evidence and any party on whose behalf a subpoena is issued may
1403	apply to the court for orders compelling such attendance and
1404	production. Subpoenas shall be served and shall be enforceable
1405	in the manner provided by the Florida Rules of Civil Procedure.
1406	Discovery may, in the discretion of the arbitrator, be permitted
1407	in the manner provided by the Florida Rules of Civil Procedure.
1408	Rules adopted by the division may authorize any reasonable
1409	sanctions except contempt for a violation of the arbitration
1410	procedural rules of the division or for the failure of a party
1411	to comply with a reasonable nonfinal order issued by an
1412	arbitrator which is not under judicial review.
1413	(k)  The arbitration decision shall be presented to the
1414	parties in writing. An arbitration decision is final in those
1415	disputes in which the parties have agreed to be bound. An
1416	arbitration decision is also final if a complaint for a trial de
1417	novo is not filed in a court of competent jurisdiction in which
1418	the condominium is located within 30 days. The right to file for
1419	a trial de novo entitles the parties to file a complaint in the
1420	appropriate trial court for a judicial resolution of the
1421	dispute. The prevailing party in an arbitration proceeding shall
1422	be awarded the costs of the arbitration and reasonable
1423	attorney's fees in an amount determined by the arbitrator. Such
1424	an award shall include the costs and reasonable attorney's fees
1425	incurred in the arbitration proceeding as well as the costs and
1426	reasonable attorney's fees incurred in preparing for and
1427	attending any scheduled mediation.
1428	(l)  The party who files a complaint for a trial de novo
1429	shall be assessed the other party's arbitration costs, court
1430	costs, and other reasonable costs, including attorney's fees,
1431	investigation expenses, and expenses for expert or other
1432	testimony or evidence incurred after the arbitration hearing if
1433	the judgment upon the trial de novo is not more favorable than
1434	the arbitration decision. If the judgment is more favorable, the
1435	party who filed a complaint for trial de novo shall be awarded
1436	reasonable court costs and attorney's fees.
1437	(m)  Any party to an arbitration proceeding may enforce an
1438	arbitration award by filing a petition in a court of competent
1439	jurisdiction in which the condominium is located. A petition may
1440	not be granted unless the time for appeal by the filing of a
1441	complaint for trial de novo has expired. If a complaint for a
1442	trial de novo has been filed, a petition may not be granted with
1443	respect to an arbitration award that has been stayed. If the
1444	petition for enforcement is granted, the petitioner shall
1445	recover reasonable attorney's fees and costs incurred in
1446	enforcing the arbitration award. A mediation settlement may also
1447	be enforced through the county or circuit court, as applicable,
1448	and any costs and fees incurred in the enforcement of a
1449	settlement agreement reached at mediation must be awarded to the
1450	prevailing party in any enforcement action.
1451	Section 8.  Section 718.1257, Florida Statutes, is created
1452	to read:
1453	718.1257  Companion animals.--
1454	(1)  Every unit owner or renter of a condominium unit in
1455	this state shall have the right to own a companion animal and to
1456	have that animal live with him or her in the condominium unit if
1457	the animal is deemed helpful to the person's physical or
1458	psychological well-being as attested to by at least two
1459	qualified health care professionals.
1460	(2)  Any municipal or county code or ordinance or any
1461	purported rule, declaration, bylaw, or other form of restriction
1462	contrary to the right provided in subsection (1) contained in
1463	any governing document of any condominium association shall be
1464	deemed unconscionable and thus unenforceable, invalid, and of no
1465	legal effect.
1466	(3)  An animal does not require specialized training or
1467	skill in assisting its owner to be classified as a companion
1468	animal pursuant to this section. The animal can be a cat, dog,
1469	ferret, bird, gerbil, or any other commonly accepted
1470	domesticated animal. However, if such training can be
1471	documented, a letter from only one qualified health care
1472	professional is required, in accordance with preexisting federal
1473	disability and fair housing laws.
1474	(4)  Qualified health care professionals include any
1475	physician or advanced registered nurse practitioner who is
1476	licensed in this state to prescribe medications for emotional or
1477	mental conditions or any mental health worker, mental health
1478	counselor, psychologist, or social worker who is licensed in
1479	this state to practice counseling therapy. The letter must say
1480	that the animal is necessary to ameliorate and help with life
1481	functions for a condition covered under the Americans with
1482	Disabilities Act. The letter does not have to give details of
1483	the nature of the unit owner's or renter's disorder, in order
1484	not to invade the patient's privacy as required under the Health
1485	Insurance Portability and Accountability Act. If the primary
1486	residence of the owner or renter is in another state, the
1487	qualified health care professional is defined as a qualified
1488	health care professional licensed in the owner's or renter's
1489	home state.
1490	(5)  If it becomes necessary for an owner or renter of any
1491	condominium unit to enforce this section in court against an
1492	association that has threatened to limit his or her right to own
1493	and reside with a companion animal, either orally or in writing,
1494	the unit owner or renter shall be entitled to recover his or her
1495	reasonable costs and attorney's fees if the unit owner or renter
1496	is the prevailing party. This attorney's fee provision is not
1497	reciprocal.
1498	Section 9.  Notwithstanding any provision to the contrary
1499	contained in a declaration of condominium, condominium bylaws,
1500	or other documents, a condominium developer who rents or leases
1501	any unsold units in a condominium must pay all monthly
1502	maintenance fees on those units to the association as if the
1503	units were owned by individual owners.
1504	Section 10.  Subsection (1) of section 718.302, Florida
1505	Statutes, is amended to read:
1506	718.302  Agreements entered into by the association.--
1507	(1)  Any grant or reservation made by a declaration, lease,
1508	or other document, and any contract made by an association prior
1509	to assumption of control of the association by unit owners other
1510	than the developer, that provides for services, products,
1511	operation, maintenance, or management of a condominium
1512	association or property serving the unit owners of a condominium
1513	shall be fair and reasonable, and such grant, reservation, or
1514	contract may be canceled by unit owners other than the
1515	developer:
1516	(a)  If the association operates only one condominium and
1517	the unit owners other than the developer have assumed control of
1518	the association, or if unit owners other than the developer own
1519	not less than 75 percent of the voting interests in the
1520	condominium, the cancellation shall be by concurrence of the
1521	owners of not less than 75 percent of the voting interests other
1522	than the voting interests owned by the developer. If a grant,
1523	reservation, or contract is so canceled and the unit owners
1524	other than the developer have not assumed control of the
1525	association, the association shall make a new contract or
1526	otherwise provide for maintenance, management, or operation in
1527	lieu of the canceled obligation, at the direction of the owners
1528	of not less than a majority of the voting interests in the
1529	condominium other than the voting interests owned by the
1530	developer.
1531	(b)  If the association operates more than one condominium
1532	and the unit owners other than the developer have not assumed
1533	control of the association, and if unit owners other than the
1534	developer own at least 75 percent of the voting interests in a
1535	condominium operated by the association, any grant, reservation,
1536	or contract for maintenance, management, or operation of
1537	buildings containing the units in that condominium or of
1538	improvements used only by unit owners of that condominium may be
1539	canceled by concurrence of the owners of at least 75 percent of
1540	the voting interests in the condominium other than the voting
1541	interests owned by the developer. No grant, reservation, or
1542	contract for maintenance, management, or operation of
1543	recreational areas or any other property serving more than one
1544	condominium, and operated by more than one association, may be
1545	canceled except pursuant to paragraph (d).
1546	(c)  If the association operates more than one condominium
1547	and the unit owners other than the developer have assumed
1548	control of the association, the cancellation shall be by
1549	concurrence of the owners of not less than 75 percent of the
1550	total number of voting interests in all condominiums operated by
1551	the association other than the voting interests owned by the
1552	developer.
1553	(d)  If the owners of units in a condominium have the right
1554	to use property in common with owners of units in other
1555	condominiums and those condominiums are operated by more than
1556	one association, no grant, reservation, or contract for
1557	maintenance, management, or operation of the property serving
1558	more than one condominium may be canceled until unit owners
1559	other than the developer have assumed control of all of the
1560	associations operating the condominiums that are to be served by
1561	the recreational area or other property, after which
1562	cancellation may be effected by concurrence of the owners of not
1563	less than 75 percent of the total number of voting interests in
1564	those condominiums other than voting interests owned by the
1565	developer.
1566	Section 11.  Paragraphs (f) and (g) are added to subsection
1567	(1) of section 718.3025, Florida Statutes, to read:
1568	718.3025  Agreements for operation, maintenance, or
1569	management of condominiums; specific requirements.--
1570	(1)  No written contract between a party contracting to
1571	provide maintenance or management services and an association
1572	which contract provides for operation, maintenance, or
1573	management of a condominium association or property serving the
1574	unit owners of a condominium shall be valid or enforceable
1575	unless the contract:
1576	(f)  Requires that all obligations under the contract be
1577	completed within a 1-year period.
1578	(g)  Contains a provision expressly prohibiting automatic
1579	renewal of the contract.
1580	Section 12.  Paragraph (a) of subsection (2) of section
1581	718.3026, Florida Statutes, is amended to read:
1582	718.3026  Contracts for products and services; in writing;
1583	bids; exceptions.--Associations with less than 100 units may opt
1584	out of the provisions of this section if two-thirds of the unit
1585	owners vote to do so, which opt-out may be accomplished by a
1586	proxy specifically setting forth the exception from this
1587	section.
1588	(2)(a)1.  Notwithstanding the foregoing, contracts with
1589	employees of the association, and contracts for attorney,
1590	accountant, architect, community association manager, timeshare
1591	management firm, engineering, and landscape architect services
1592	are not subject to the provisions of this section.
1593	2.  A contract executed before January 1, 1992, and any
1594	renewal thereof, is not subject to the competitive bid
1595	requirements of this section. If a contract was awarded under
1596	the competitive bid procedures of this section, any renewal of
1597	that contract is not subject to such competitive bid
1598	requirements if the contract contains a provision that allows
1599	the board to cancel the contract on 30 days' notice. Materials,
1600	equipment, or services provided to a condominium under a local
1601	government franchise agreement by a franchise holder are not
1602	subject to the competitive bid requirements of this section. A
1603	contract with a manager, if made by a competitive bid, may be
1604	made for up to 3 years. A condominium whose declaration or
1605	bylaws provides for competitive bidding for services may operate
1606	under the provisions of that declaration or bylaws in lieu of
1607	this section if those provisions are not less stringent than the
1608	requirements of this section.
1609	3.  A contract by and between a service provider and an
1610	association shall not be for a term in excess of 3 years and
1611	shall not contain an automatic renewal clause.
1612	4.  A contract for construction or repair of the property
1613	that exceeds 10 percent of the total annual budget of the
1614	association, including reserves, shall occur under the written
1615	advisement of an attorney.
1616	Section 13.  Subsection (3) of section 718.303, Florida
1617	Statutes, is amended, and subsection (4) is added to that
1618	section, to read:
1619	718.303  Obligations of owners; waiver; levy of fine
1620	against unit by association.--
1621	(3)  If the declaration or bylaws so provide, the
1622	association may levy reasonable fines against a unit for the
1623	failure of the owner of the unit, or its occupant, licensee, or
1624	invitee, to comply with any provision of the declaration, the
1625	association bylaws, or reasonable rules of the association. No
1626	fine will become a lien against a unit. No fine may exceed $100
1627	per violation. However, a fine may be levied on the basis of
1628	each day of a continuing violation, with a single notice and
1629	opportunity for hearing, provided that no such fine shall in the
1630	aggregate exceed $1,000. No fine may be levied except after
1631	giving reasonable notice and opportunity for a hearing to the
1632	unit owner and, if applicable, its licensee or invitee. The
1633	hearing must be held before a committee of other unit owners who
1634	are not members of the board of administration of the
1635	association. If the committee does not agree with the fine, the
1636	fine may not be levied. The provisions of this subsection do not
1637	apply to unoccupied units.
1638	(4)  Anyone subject to an action under this section shall
1639	be notified of the violation by certified mail, return receipt
1640	requested, and, except in the case of imminent danger to person
1641	or property, have 30 days in which to respond in writing. If no
1642	response is provided and the violation continues or is repeated,
1643	the association may proceed under subsections (1) and (2)
1644	without further notice except as provided in subsection (3).
1645	Section 14.  Subsections (1) and (2) of section 718.404,
1646	Florida Statutes, are amended to read:
1647	718.404  Mixed-use condominiums.--When a condominium
1648	consists of both residential and commercial units, the following
1649	provisions shall apply:
1650	(1)  The condominium documents shall not provide that the
1651	owner of any commercial unit shall have the authority to veto
1652	amendments to the declaration, articles of incorporation,
1653	bylaws, or rules or regulations of the association. This
1654	subsection shall apply retroactively as a remedial measure.
1655	(2)  Subject to s. 718.301, where the number of residential
1656	units in the condominium equals or exceeds 50 percent of the
1657	total units operated by the association, owners of the
1658	residential units shall be entitled to vote for a majority of
1659	the seats on the board of administration. This subsection shall
1660	apply retroactively as a remedial measure.
1661	Section 15.  Section 718.501, Florida Statutes, is amended
1662	to read:
1663	718.501  Powers and duties of Division of Florida Land
1664	Sales, Condominiums, and Mobile Homes.--
1665	(1)  The Division of Florida Land Sales, Condominiums, and
1666	Mobile Homes of the Department of Business and Professional
1667	Regulation, referred to as the "division" in this part, in
1668	addition to other powers and duties prescribed by chapter 498,
1669	has the power to enforce and ensure compliance with the
1670	provisions of this chapter and rules promulgated pursuant hereto
1671	relating to the development, construction, sale, lease,
1672	ownership, operation, and management of residential condominium
1673	units. In performing its duties, the division has the following
1674	powers and duties:
1675	(a)  The division may make necessary public or private
1676	investigations within or outside this state to determine whether
1677	any person has violated this chapter or any rule or order
1678	hereunder, to aid in the enforcement of this chapter, or to aid
1679	in the adoption of rules or forms hereunder.
1680	(b)  The division may require or permit any person to file
1681	a statement in writing, under oath or otherwise, as the division
1682	determines, as to the facts and circumstances concerning a
1683	matter to be investigated.
1684	(c)  For the purpose of any investigation under this
1685	chapter, the division director or any officer or employee
1686	designated by the division director may administer oaths or
1687	affirmations, subpoena witnesses and compel their attendance,
1688	take evidence, and require the production of any matter which is
1689	relevant to the investigation, including the existence,
1690	description, nature, custody, condition, and location of any
1691	books, documents, or other tangible things and the identity and
1692	location of persons having knowledge of relevant facts or any
1693	other matter reasonably calculated to lead to the discovery of
1694	material evidence. Upon the failure by a person to obey a
1695	subpoena or to answer questions propounded by the investigating
1696	officer and upon reasonable notice to all persons affected
1697	thereby, the division may apply to the circuit court for an
1698	order compelling compliance.
1699	(d)  Notwithstanding any remedies available to unit owners
1700	and associations, if the division has reasonable cause to
1701	believe that a violation of any provision of this chapter or
1702	rule promulgated pursuant hereto has occurred, the division may
1703	institute enforcement proceedings in its own name against any
1704	developer, association, officer, or member of the board of
1705	administration, or its assignees or agents, as follows:
1706	1.  The division may permit a person whose conduct or
1707	actions may be under investigation to waive formal proceedings
1708	and enter into a consent proceeding whereby orders, rules, or
1709	letters of censure or warning, whether formal or informal, may
1710	be entered against the person.
1711	2.  The division may issue an order requiring the
1712	developer, association, officer, or member of the board of
1713	administration, or its assignees or agents, to cease and desist
1714	from the unlawful practice and take such affirmative action as
1715	in the judgment of the division will carry out the purposes of
1716	this chapter. Such affirmative action may include, but is not
1717	limited to, an order requiring a developer to pay moneys
1718	determined to be owed to a condominium association.
1719	3.  The division may bring an action in circuit court on
1720	behalf of a class of unit owners, lessees, or purchasers for
1721	declaratory relief, injunctive relief, or restitution.
1722	4.  The division may impose a civil penalty against a
1723	developer or association, or its assignee or agent, for any
1724	violation of this chapter or a rule promulgated pursuant hereto.
1725	The division may impose a civil penalty individually against any
1726	officer or board member who willfully and knowingly violates a
1727	provision of this chapter, a rule adopted pursuant hereto, or a
1728	final order of the division. The term "willfully and knowingly"
1729	means that the division informed the officer or board member
1730	that his or her action or intended action violates this chapter,
1731	a rule adopted under this chapter, or a final order of the
1732	division and that the officer or board member refused to comply
1733	with the requirements of this chapter, a rule adopted under this
1734	chapter, or a final order of the division. The division, prior
1735	to initiating formal agency action under chapter 120, shall
1736	afford the officer or board member an opportunity to voluntarily
1737	comply with this chapter, a rule adopted under this chapter, or
1738	a final order of the division. An officer or board member who
1739	complies within 10 days is not subject to a civil penalty. A
1740	penalty may be imposed on the basis of each day of continuing
1741	violation, but in no event shall the penalty for any offense
1742	exceed $5,000. By January 1, 1998, the division shall adopt, by
1743	rule, penalty guidelines applicable to possible violations or to
1744	categories of violations of this chapter or rules adopted by the
1745	division. The guidelines must specify a meaningful range of
1746	civil penalties for each such violation of the statute and rules
1747	and must be based upon the harm caused by the violation, the
1748	repetition of the violation, and upon such other factors deemed
1749	relevant by the division. For example, the division may consider
1750	whether the violations were committed by a developer or owner-
1751	controlled association, the size of the association, and other
1752	factors. The guidelines must designate the possible mitigating
1753	or aggravating circumstances that justify a departure from the
1754	range of penalties provided by the rules. It is the legislative
1755	intent that minor violations be distinguished from those which
1756	endanger the health, safety, or welfare of the condominium
1757	residents or other persons and that such guidelines provide
1758	reasonable and meaningful notice to the public of likely
1759	penalties that may be imposed for proscribed conduct. This
1760	subsection does not limit the ability of the division to
1761	informally dispose of administrative actions or complaints by
1762	stipulation, agreed settlement, or consent order. All amounts
1763	collected shall be deposited with the Chief Financial Officer to
1764	the credit of the Division of Florida Land Sales, Condominiums,
1765	and Mobile Homes Trust Fund. If a developer fails to pay the
1766	civil penalty, the division shall thereupon issue an order
1767	directing that such developer cease and desist from further
1768	operation until such time as the civil penalty is paid or may
1769	pursue enforcement of the penalty in a court of competent
1770	jurisdiction. If an association fails to pay the civil penalty,
1771	the division shall thereupon pursue enforcement in a court of
1772	competent jurisdiction, and the order imposing the civil penalty
1773	or the cease and desist order will not become effective until 20
1774	days after the date of such order. Any action commenced by the
1775	division shall be brought in the county in which the division
1776	has its executive offices or in the county where the violation
1777	occurred.
1778	(e)  The division shall is authorized to prepare and
1779	disseminate a prospectus and other information to assist
1780	prospective owners, purchasers, lessees, and developers of
1781	residential condominiums in assessing the rights, privileges,
1782	and duties pertaining thereto.
1783	(f)  The division has authority to adopt rules pursuant to
1784	ss. 120.536(1) and 120.54 to implement and enforce the
1785	provisions of this chapter.
1786	(g)  The division shall establish procedures for providing
1787	notice to an association when the division is considering the
1788	issuance of a declaratory statement with respect to the
1789	declaration of condominium or any related document governing in
1790	such condominium community.
1791	(h)  The division shall furnish each association which pays
1792	the fees required by paragraph (2)(a) a copy of this act,
1793	subsequent changes to this act on an annual basis, an amended
1794	version of this act as it becomes available from the Secretary
1795	of State's office on a biennial basis, and the rules promulgated
1796	pursuant thereto on an annual basis.
1797	(i)  The division shall annually provide each association
1798	with a summary of declaratory statements and formal legal
1799	opinions relating to the operations of condominiums which were
1800	rendered by the division during the previous year.
1801	(j)  The division shall provide training programs for
1802	condominium association board members and unit owners in
1803	conjunction with the recommendations of the ombudsman, at the
1804	association's expense.
1805	(k)  The division shall maintain a toll-free telephone
1806	number accessible to condominium unit owners.
1807	(l)  The division shall develop a program to certify both
1808	volunteer and paid mediators to provide mediation of condominium
1809	disputes. The division shall provide, upon request, a list of
1810	such mediators to any association, unit owner, or other
1811	participant in arbitration proceedings under s. 718.1255
1812	requesting a copy of the list. The division shall include on the
1813	list of volunteer mediators only the names of persons who have
1814	received at least 20 hours of training in mediation techniques
1815	or who have mediated at least 20 disputes. In order to become
1816	initially certified by the division, paid mediators must be
1817	certified by the Supreme Court to mediate court cases in either
1818	county or circuit courts. However, the division may adopt, by
1819	rule, additional factors for the certification of paid
1820	mediators, which factors must be related to experience,
1821	education, or background. Any person initially certified as a
1822	paid mediator by the division must, in order to continue to be
1823	certified, comply with the factors or requirements imposed by
1824	rules adopted by the division.
1825	(m)  When a complaint is made, the division shall conduct
1826	its inquiry with due regard to the interests of the affected
1827	parties. Within 30 days after receipt of a complaint, the
1828	division shall acknowledge the complaint in writing and notify
1829	the complainant whether the complaint is within the jurisdiction
1830	of the division and whether additional information is needed by
1831	the division from the complainant. The division shall conduct
1832	its investigation and shall, within 90 days after receipt of the
1833	original complaint or of timely requested additional
1834	information, take action upon the complaint. However, the
1835	failure to complete the investigation within 90 days does not
1836	prevent the division from continuing the investigation,
1837	accepting or considering evidence obtained or received after 90
1838	days, or taking administrative action if reasonable cause exists
1839	to believe that a violation of this chapter or a rule of the
1840	division has occurred. If an investigation is not completed
1841	within the time limits established in this paragraph, the
1842	division shall, on a monthly basis, notify the complainant in
1843	writing of the status of the investigation. When reporting its
1844	action to the complainant, the division shall inform the
1845	complainant of any right to a hearing pursuant to ss. 120.569
1846	and 120.57.
1847	(n)  Upon a finding that any association has committed a
1848	violation within the jurisdiction of the division, the division
1849	shall require the association to mail and post a notice to all
1850	unit owners setting forth the facts and findings relative to any
1851	and all violations, as well as a description of the corrective
1852	action required.
1853	(2)(a)  Effective January 1, 1992, each condominium
1854	association which operates more than two units shall pay to the
1855	division an annual fee in the amount of $4 for each residential
1856	unit in condominiums operated by the association. If the fee is
1857	not paid by March 1, then the association shall be assessed a
1858	penalty of 10 percent of the amount due, and the association
1859	will not have standing to maintain or defend any action in the
1860	courts of this state until the amount due, plus any penalty, is
1861	paid.
1862	(b)  All fees shall be deposited in the Division of Florida
1863	Land Sales, Condominiums, and Mobile Homes Trust Fund as
1864	provided by law.
1865	Section 16.  Subsection (1) of section 718.5011, Florida
1866	Statutes, is amended to read:
1867	718.5011  Ombudsman; appointment; administration.--
1868	(1)  There is created an Office of the Condominium
1869	Ombudsman, to be located, solely for administrative purposes,
1870	within the Division of Florida Land Sales, Condominiums, and
1871	Mobile Homes. The ombudsman shall exercise his or her
1872	policymaking and other functions delegated by this chapter
1873	independently of the Department of Business and Professional
1874	Regulation and without approval or control of the department.
1875	The department shall render administrative support to the office
1876	in matters pertaining to budget, personnel, office space,
1877	equipment, and supplies. All revenues collected for the office
1878	by the department shall be deposited in a separate fund or
1879	account from which the department may not use or divert the
1880	revenues. The functions of the office shall be funded by the
1881	Division of Florida Land Sales, Condominiums, and Mobile Homes
1882	Trust Fund. The ombudsman shall be a bureau chief of the
1883	division, and the office shall be set within the division in the
1884	same manner as any other bureau is staffed and funded.
1885	Section 17.  Section 718.5012, Florida Statutes, is amended
1886	to read:
1887	718.5012  Ombudsman; powers and duties.--
1888	(1)  The ombudsman shall have the powers that are necessary
1889	to carry out the duties of his or her office, including the
1890	following specific powers:
1891	(a)(1)  To have access to and use of all files and records
1892	of the division.
1893	(b)(2)  To employ professional and clerical staff as
1894	necessary for the efficient operation of the office.
1895	(c)(3)  To prepare and issue reports and recommendations to
1896	the Governor, the department, the division, the Advisory Council
1897	on Condominiums, the President of the Senate, and the Speaker of
1898	the House of Representatives on any matter or subject within the
1899	jurisdiction of the division. The ombudsman shall make
1900	recommendations he or she deems appropriate for legislation
1901	relative to division procedures, rules, jurisdiction, personnel,
1902	and functions.
1903	(d)(4)  To act as liaison between the division, unit
1904	owners, boards of directors, board members, community
1905	association managers, and other affected parties. The ombudsman
1906	shall develop policies and procedures to assist unit owners,
1907	boards of directors, board members, community association
1908	managers, and other affected parties to understand their rights
1909	and responsibilities as set forth in this chapter and the
1910	condominium documents governing their respective association.
1911	The ombudsman shall coordinate and assist in the preparation and
1912	adoption of educational and reference material, and shall
1913	endeavor to coordinate with private or volunteer providers of
1914	these services, so that the availability of these resources is
1915	made known to the largest possible audience.
1916	(e)(5)  To monitor and review procedures and disputes
1917	concerning condominium elections or meetings, including, but not
1918	limited to, recommending that the division pursue enforcement
1919	action in any manner where there is reasonable cause to believe
1920	that election misconduct has occurred.
1921	(f)(6)  To make recommendations to the division for changes
1922	in rules and procedures for the filing, investigation, and
1923	resolution of complaints filed by unit owners, associations, and
1924	managers.
1925	(g)(7)  To provide resources to assist members of boards of
1926	directors and officers of associations to carry out their powers
1927	and duties consistent with this chapter, division rules, and the
1928	condominium documents governing the association.
1929	(h)(8)  To order, encourage, and facilitate voluntary
1930	meetings with and between unit owners, boards of directors,
1931	board members, community association managers, and other
1932	affected parties when the meetings may assist in resolving a
1933	dispute within a community association before a person submits a
1934	dispute for a formal or administrative remedy. It is the intent
1935	of the Legislature that the ombudsman act as a neutral resource
1936	for both the rights and responsibilities of unit owners,
1937	associations, and board members.
1938	(2)(9)  Fifteen percent of the total voting interests in a
1939	condominium association, or six unit owners, whichever is
1940	greater, may petition the ombudsman to appoint an election
1941	monitor to attend the annual meeting of the unit owners and
1942	conduct the election of directors. The ombudsman shall appoint a
1943	division employee, a person or persons specializing in
1944	condominium election monitoring, or an attorney licensed to
1945	practice in this state as the election monitor. All costs
1946	associated with the election monitoring process shall be paid by
1947	the association. The division shall adopt a rule establishing
1948	procedures for the appointment of election monitors and the
1949	scope and extent of the monitor's role in the election process.
1950	(3)  Any unit owner or association acting in good faith on
1951	the advice or opinion of the Office of the Condominium Ombudsman
1952	shall be immune from any penalties or actions.
1953	Section 18.  Subsection (21) of section 718.504, Florida
1954	Statutes, is amended to read:
1955	718.504  Prospectus or offering circular.--Every developer
1956	of a residential condominium which contains more than 20
1957	residential units, or which is part of a group of residential
1958	condominiums which will be served by property to be used in
1959	common by unit owners of more than 20 residential units, shall
1960	prepare a prospectus or offering circular and file it with the
1961	Division of Florida Land Sales, Condominiums, and Mobile Homes
1962	prior to entering into an enforceable contract of purchase and
1963	sale of any unit or lease of a unit for more than 5 years and
1964	shall furnish a copy of the prospectus or offering circular to
1965	each buyer. In addition to the prospectus or offering circular,
1966	each buyer shall be furnished a separate page entitled
1967	"Frequently Asked Questions and Answers," which shall be in
1968	accordance with a format approved by the division and a copy of
1969	the financial information required by s. 718.111. This page
1970	shall, in readable language, inform prospective purchasers
1971	regarding their voting rights and unit use restrictions,
1972	including restrictions on the leasing of a unit; shall indicate
1973	whether and in what amount the unit owners or the association is
1974	obligated to pay rent or land use fees for recreational or other
1975	commonly used facilities; shall contain a statement identifying
1976	that amount of assessment which, pursuant to the budget, would
1977	be levied upon each unit type, exclusive of any special
1978	assessments, and which shall further identify the basis upon
1979	which assessments are levied, whether monthly, quarterly, or
1980	otherwise; shall state and identify any court cases in which the
1981	association is currently a party of record in which the
1982	association may face liability in excess of $100,000; and which
1983	shall further state whether membership in a recreational
1984	facilities association is mandatory, and if so, shall identify
1985	the fees currently charged per unit type. The division shall by
1986	rule require such other disclosure as in its judgment will
1987	assist prospective purchasers. The prospectus or offering
1988	circular may include more than one condominium, although not all
1989	such units are being offered for sale as of the date of the
1990	prospectus or offering circular. The prospectus or offering
1991	circular must contain the following information:
1992	(21)  An estimated operating budget for the condominium and
1993	the association, and a schedule of the unit owner's expenses
1994	shall be attached as an exhibit and shall contain the following
1995	information:
1996	(a)  The estimated monthly and annual revenues and expenses
1997	of the condominium and the association that are earned by the
1998	association or collected from unit owners by assessments.
1999	(b)  The estimated monthly and annual expenses of each unit
2000	owner for a unit, other than common expenses paid by all unit
2001	owners, payable by the unit owner to persons or entities other
2002	than the association, as well as to the association, including
2003	fees assessed pursuant to s. 718.113(1) for maintenance of
2004	limited common elements where such costs are shared only by
2005	those entitled to use the limited common element, and the total
2006	estimated monthly and annual expense. There may be excluded from
2007	this estimate expenses which are not provided for or
2008	contemplated by the condominium documents, including, but not
2009	limited to, the costs of private telephone; maintenance of the
2010	interior of condominium units, which is not the obligation of
2011	the association; maid or janitorial services privately
2012	contracted for by the unit owners; utility bills billed directly
2013	to each unit owner for utility services to his or her unit;
2014	insurance premiums other than those incurred for policies
2015	obtained by the condominium; and similar personal expenses of
2016	the unit owner. A unit owner's estimated payments for
2017	assessments shall also be stated in the estimated amounts for
2018	the times when they will be due.
2019	(c)  The estimated items of expenses of the condominium and
2020	the association, except as excluded under paragraph (b),
2021	including, but not limited to, the following items, which shall
2022	be stated either as an association expense collectible by
2023	assessments or as unit owners' expenses payable to persons other
2024	than the association:
2025	1.  Expenses for the association and condominium:
2026	a.  Administration of the association.
2027	b.  Management fees.
2028	c.  Maintenance.
2029	d.  Rent for recreational and other commonly used
2030	facilities.
2031	e.  Taxes upon association property.
2032	f.  Taxes upon leased areas.
2033	g.  Insurance.
2034	h.  Security provisions.
2035	i.  Other expenses.
2036	j.  Operating capital.
2037	k.  Reserves.
2038	l.  Fees payable to the division.
2039	2.  Expenses for a unit owner:
2040	a.  Rent for the unit, if subject to a lease.
2041	b.  Rent payable by the unit owner directly to the lessor
2042	or agent under any recreational lease or lease for the use of
2043	commonly used facilities, which use and payment is a mandatory
2044	condition of ownership and is not included in the common expense
2045	or assessments for common maintenance paid by the unit owners to
2046	the association.
2047	(d)  The estimated amounts shall be stated for a period of
2048	at least 12 months and may distinguish between the period prior
2049	to the time unit owners other than the developer elect a
2050	majority of the board of administration and the period after
2051	that date.
2052	Section 19.  Subsections (6) and (7) of section 720.303,
2053	Florida Statutes, are amended to read:
2054	720.303  Association powers and duties; meetings of board;
2055	official records; budgets; financial reporting; association
2056	funds; recalls.--
2057	(6)  BUDGETS.--
2058	(a)  The association shall prepare an annual budget that
2059	sets out the annual operating expenses. The budget must reflect
2060	the estimated revenues and expenses for that year and the
2061	estimated surplus or deficit as of the end of the current year.
2062	The budget must set out separately all fees or charges paid for
2063	by the association for recreational amenities, whether owned by
2064	the association, the developer, or another person. The
2065	association shall provide each member with a copy of the annual
2066	budget or a written notice that a copy of the budget is
2067	available upon request at no charge to the member. The copy must
2068	be provided to the member within the time limits set forth in
2069	subsection (5).
2070	(b)  In addition to annual operating expenses, the budget
2071	may include reserve accounts for capital expenditures and
2072	deferred maintenance for which the association is responsible to
2073	the extent that the governing documents do not limit increases
2074	in assessments, including reserves. If the budget of the
2075	association includes reserve accounts, such reserves shall be
2076	determined, maintained, and waived in the manner provided in
2077	this subsection. Once an association provides for reserve
2078	accounts in the budget, the association shall thereafter
2079	determine, maintain, and waive reserves in compliance with the
2080	provisions of this subsection.
2081	(c)  If the budget of the association does not provide for
2082	reserve accounts governed by this subsection and the association
2083	is responsible for the repair and maintenance of capital
2084	improvements that may result in a special assessment if reserves
2085	are not provided, each financial report for the preceding fiscal
2086	year required by subsection (7) shall contain the following
2087	statement in conspicuous type: THE BUDGET OF THE ASSOCIATION
2088	DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES
2089	AND DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS.
2090	OWNERS MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE
2091	PROVISIONS OF SECTION 720.303(6), FLORIDA STATUTES, UPON THE
2092	APPROVAL OF NOT LESS THAN A MAJORITY OF THE TOTAL VOTING
2093	INTERESTS OF THE ASSOCIATION.
2094	(d)  An association shall be deemed to have provided for
2095	reserve accounts when reserve accounts have been initially
2096	established by the developer or when the membership of the
2097	association affirmatively elects to provide for reserves. If
2098	reserve accounts are not initially provided for by the
2099	developer, the membership of the association may elect to do so
2100	upon the affirmative approval of not less than a majority of the
2101	total voting interests of the association. Such approval may be
2102	attained by vote of the members at a duly called meeting of the
2103	membership or upon a written consent executed by not less than a
2104	majority of the total voting interests in the community. The
2105	approval action of the membership shall state that reserve
2106	accounts shall be provided for in the budget and designate the
2107	components for which the reserve accounts are to be established.
2108	Upon approval by the membership, the board of directors shall
2109	provide for the required reserve accounts for inclusion in the
2110	budget in the next fiscal year following the approval and in
2111	each year thereafter. Once established as provided in this
2112	subsection, the reserve accounts shall be funded or maintained
2113	or shall have their funding waived in the manner provided in
2114	paragraph (f).
2115	(e)  The amount to be reserved in any account established
2116	shall be computed by means of a formula that is based upon
2117	estimated remaining useful life and estimated replacement cost
2118	or deferred maintenance expense of each reserve item. The
2119	association may adjust replacement reserve assessments annually
2120	to take into account any changes in estimates of cost or useful
2121	life of a reserve item.
2122	(f)  Once a reserve account or reserve accounts are
2123	established, the membership of the association, upon a majority
2124	vote at a meeting at which a quorum is present, may provide for
2125	no reserves or less reserves than required by this section. If a
2126	meeting of the unit owners is called to determine whether to
2127	waive or reduce the funding of reserves and no such result is
2128	achieved or a quorum is not present, the reserves as included in
2129	the budget shall go into effect. After the turnover, the
2130	developer may vote its voting interest to waive or reduce the
2131	funding of reserves. Any vote taken pursuant to this subsection
2132	to waive or reduce reserves shall be applicable only to one
2133	budget year.
2134	(g)  Funding formulas for reserves authorized by this
2135	section shall be based on either a separate analysis of each of
2136	the required assets or a pooled analysis of two or more of the
2137	required assets.
2138	1.  If the association maintains separate reserve accounts
2139	for each of the required assets, the amount of the contribution
2140	to each reserve account shall be the sum of the following two
2141	calculations:
2142	a.  The total amount necessary, if any, to bring a negative
2143	component balance to zero.
2144	b.  The total estimated deferred maintenance expense or
2145	estimated replacement cost of the reserve component less the
2146	estimated balance of the reserve component as of the beginning
2147	of the period for which the budget will be in effect. The
2148	remainder, if greater than zero, shall be divided by the
2149	estimated remaining useful life of the component.
2150
2151	The formula may be adjusted each year for changes in estimates
2152	and deferred maintenance performed during the year and may
2153	include factors such as inflation and earnings on invested
2154	funds.
2155	2.  If the association maintains a pooled account of two or
2156	more of the required reserve assets, the amount of the
2157	contribution to the pooled reserve account as disclosed on the
2158	proposed budget shall not be less than that required to ensure
2159	that the balance at the beginning of the period for which the
2160	budget will go into effect plus the projected annual cash
2161	inflows over the remaining estimated useful life of all of the
2162	assets that make up the reserve pool are equal to or greater
2163	than the projected annual cash outflows over the remaining
2164	estimated useful lives of all of the assets that make up the
2165	reserve pool, based on the current reserve analysis. The
2166	projected annual cash inflows may include estimated earnings
2167	from investment of principal. The reserve funding formula shall
2168	not include any type of balloon payments.
2169	(h)  Reserve funds and any interest accruing thereon shall
2170	remain in the reserve account or accounts and shall be used only
2171	for authorized reserve expenditures unless their use for other
2172	purposes is approved in advance by a majority vote at a meeting
2173	at which a quorum is present. Prior to turnover of control of an
2174	association by a developer to parcel owners, the developer-
2175	controlled association shall not vote to use reserves for
2176	purposes other than those for which they were intended without
2177	the approval of a majority of all nondeveloper voting interests
2178	voting in person or by limited proxy at a duly called meeting of
2179	the association.
2180	(7)  FINANCIAL REPORTING.--Within 90 days after the end of
2181	the fiscal year, or annually on a date provided in the bylaws,
2182	the association shall prepare and complete, or contract with a
2183	third party for the preparation and completion of, a financial
2184	report for the preceding fiscal year. Within 21 days after the
2185	final financial report is completed by the association or
2186	received from the third party, but not later than 120 days after
2187	the end of the fiscal year or other date as provided in the
2188	bylaws, the association shall prepare an annual financial report
2189	within 60 days after the close of the fiscal year. The
2190	association shall, within the time limits set forth in
2191	subsection (5), provide each member with a copy of the annual
2192	financial report or a written notice that a copy of the
2193	financial report is available upon request at no charge to the
2194	member. Financial reports shall be prepared as follows:
2195	(a)  An association that meets the criteria of this
2196	paragraph shall prepare or cause to be prepared a complete set
2197	of financial statements in accordance with generally accepted
2198	accounting principles as adopted by the Board of Accountancy.
2199	The financial statements shall be based upon the association's
2200	total annual revenues, as follows:
2201	1.  An association with total annual revenues of $100,000
2202	or more, but less than $200,000, shall prepare compiled
2203	financial statements.
2204	2.  An association with total annual revenues of at least
2205	$200,000, but less than $400,000, shall prepare reviewed
2206	financial statements.
2207	3.  An association with total annual revenues of $400,000
2208	or more shall prepare audited financial statements.
2209	(b)1.  An association with total annual revenues of less
2210	than $100,000 shall prepare a report of cash receipts and
2211	expenditures.
2212	2.  An association in a community of fewer than 50 parcels,
2213	regardless of the association's annual revenues, may prepare a
2214	report of cash receipts and expenditures in lieu of financial
2215	statements required by paragraph (a) unless the governing
2216	documents provide otherwise.
2217	3.  A report of cash receipts and disbursement must
2218	disclose the amount of receipts by accounts and receipt
2219	classifications and the amount of expenses by accounts and
2220	expense classifications, including, but not limited to, the
2221	following, as applicable: costs for security, professional, and
2222	management fees and expenses; taxes; costs for recreation
2223	facilities; expenses for refuse collection and utility services;
2224	expenses for lawn care; costs for building maintenance and
2225	repair; insurance costs; administration and salary expenses; and
2226	reserves if maintained by the association.
2227	(c)  If 20 percent of the parcel owners petition the board
2228	for a level of financial reporting higher than that required by
2229	this section, the association shall duly notice and hold a
2230	meeting of members within 30 days of receipt of the petition for
2231	the purpose of voting on raising the level of reporting for that
2232	fiscal year. Upon approval of a majority of the total voting
2233	interests of the parcel owners, the association shall prepare or
2234	cause to be prepared, shall amend the budget or adopt a special
2235	assessment to pay for the financial report regardless of any
2236	provision to the contrary in the governing documents, and shall
2237	provide within 90 days of the meeting or the end of the fiscal
2238	year, whichever occurs later:
2239	1.  Compiled, reviewed, or audited financial statements, if
2240	the association is otherwise required to prepare a report of
2241	cash receipts and expenditures;
2242	2.  Reviewed or audited financial statements, if the
2243	association is otherwise required to prepare compiled financial
2244	statements; or
2245	3.  Audited financial statements if the association is
2246	otherwise required to prepare reviewed financial statements.
2247	(d)  If approved by a majority of the voting interests
2248	present at a properly called meeting of the association, an
2249	association may prepare or cause to be prepared:
2250	1.  A report of cash receipts and expenditures in lieu of a
2251	compiled, reviewed, or audited financial statement;
2252	2.  A report of cash receipts and expenditures or a
2253	compiled financial statement in lieu of a reviewed or audited
2254	financial statement; or
2255	3.  A report of cash receipts and expenditures, a compiled
2256	financial statement, or a reviewed financial statement in lieu
2257	of an audited financial statement.
2258	Section 20.  Section 720.307, Florida Statutes, is amended
2259	to read:
2260	720.307  Transition of association control in a
2261	community.--With respect to homeowners' associations:
2262	(1)  Members other than the developer are entitled to elect
2263	at least a majority of the members of the board of directors of
2264	the homeowners' association when the earlier of the following
2265	events occurs:
2266	(a)  Three months after 75 90 percent of the parcels in all
2267	phases of the community that will ultimately be operated by the
2268	homeowners' association have been conveyed to members; or
2269	(b)  Such other percentage of the parcels has been conveyed
2270	to members, or such other date or event has occurred, as is set
2271	forth in the governing documents in order to comply with the
2272	requirements of any governmentally chartered entity with regard
2273	to the mortgage financing of parcels.
2274
2275	For purposes of this section, the term "members other than the
2276	developer" shall not include builders, contractors, or others
2277	who purchase a parcel for the purpose of constructing
2278	improvements thereon for resale.
2279	(2)  The developer is entitled to elect at least one member
2280	of the board of directors of the homeowners' association as long
2281	as the developer holds for sale in the ordinary course of
2282	business at least 5 percent of the parcels in all phases of the
2283	community. After the developer relinquishes control of the
2284	homeowners' association, the developer may exercise the right to
2285	vote any developer-owned voting interests in the same manner as
2286	any other member, except for purposes of reacquiring control of
2287	the homeowners' association or selecting the majority of the
2288	members of the board of directors.
2289	(3)  Prior to turnover, the developer or owner of all
2290	common areas shall convey the title to all common areas to the
2291	association immediately upon incorporation of the association.
2292	If additional common areas are acquired prior to transition of
2293	control and subject to the governing documents, title to those
2294	common areas shall also be immediately transferred to the
2295	association.
2296	(4)  At the time the members are entitled to elect at least
2297	a majority of the board of directors of the homeowners'
2298	association, the developer shall, at the developer's expense,
2299	within no more than 30 90 days deliver the following documents
2300	to the board:
2301	(a)  All deeds to common property owned by the association
2302	or the developer.
2303	(b)  The original of the association's declarations of
2304	covenants and restrictions.
2305	(c)  A certified copy of the articles of incorporation of
2306	the association.
2307	(d)  A copy of the bylaws.
2308	(e)  The minute books, including all minutes.
2309	(f)  The books and records of the association.
2310	(g)  Policies, rules, and regulations, if any, which have
2311	been adopted.
2312	(h)  Resignations of directors who are required to resign
2313	because the developer is required to relinquish control of the
2314	association.
2315	(i)  The financial records of the association from the date
2316	of incorporation through the date of turnover.
2317	(j)  All association funds and control thereof.
2318	(k)  All tangible property of the association.
2319	(l)  A copy of all contracts which may be in force with the
2320	association as one of the parties.
2321	(m)  A list of the names and addresses and telephone
2322	numbers of all contractors, subcontractors, or others in the
2323	current employ of the association.
2324	(n)  Any and all insurance policies in effect.
2325	(o)  Any permits issued to the association by governmental
2326	entities.
2327	(p)  Any and all warranties in effect.
2328	(q)  A roster of current homeowners and their addresses and
2329	telephone numbers and section and lot numbers.
2330	(r)  Employment and service contracts in effect.
2331	(s)  All other contracts and agreements in effect to which
2332	the association is a party.
2333	(t)  The financial records, including financial statements
2334	of the association, and source documents from the incorporation
2335	of the association through the date of turnover. The records
2336	shall be audited by an independent certified public accountant
2337	for the period of the incorporation of the association or for
2338	the period covered by the last audit, if an audit has been
2339	performed for each fiscal year since incorporation. All
2340	financial statements shall be prepared in accordance with
2341	generally accepted accounting standards and shall be audited in
2342	accordance with generally accepted auditing standards as
2343	prescribed by the Board of Accountancy. The accountant
2344	performing the review shall examine to the extent necessary
2345	supporting documents and records, including the cash
2346	disbursements and related paid invoices to determine whether
2347	expenditures were for association purposes and the billings,
2348	cash receipts, and related records to determine whether the
2349	developer was charged and paid the proper amounts of
2350	assessments. This paragraph applies to associations with a date
2351	of incorporation after December 31, 2007.
2352	(5)(4)  This section applies to any mandatory homeowners'
2353	association existing under this chapter does not apply to a
2354	homeowners' association in existence on the effective date of
2355	this act, or to a homeowners' association, no matter when
2356	created, if such association is created in a community that is
2357	included in an effective development-of-regional-impact
2358	development order as of the effective date of this act, together
2359	with any approved modifications thereof.
2360	Section 21.  Subsection (5) is added to section 720.3075,
2361	Florida Statutes, to read:
2362	720.3075  Prohibited clauses in association documents.--
2363	(5)(a)  An association may not restrict a homeowner from
2364	mounting or employing shutters or other hurricane protection on
2365	any portion of the home.
2366	(b)  Except as provided in paragraph (c), an association
2367	may not restrict a homeowner from mounting or employing
2368	temporary or permanent shutters or other hurricane protection on
2369	any portion of the home during any time that a hurricane warning
2370	has been declared, during any time when an evacuation order has
2371	been given, or for the following period after conclusion of such
2372	hurricane watch or evacuation order:
2373	1.  Seven days; or
2374	2.  Fourteen days if the hurricane watch concerns a
2375	category 4 storm or greater or if the evacuation order lasts
2376	more than 3 days.
2377	(c)  If a local government restricts homeowners' mounting
2378	or employing temporary or permanent shutters or other hurricane
2379	protection, the local government may also authorize associations
2380	to adopt and enforce equal or lesser restrictions.
2381	(d)  Except as provided in paragraph (c) or paragraph (e),
2382	an association may not restrict a homeowner from mounting or
2383	employing permanent shutters or other hurricane protection on
2384	any portion of the home.
2385	(e)   If the association otherwise properly adopts
2386	restrictions governing color or form of shutters or other
2387	permanent exterior window coverings, the association may adopt
2388	and enforce equal or lesser restrictions that apply to permanent
2389	exterior hurricane protections.
2390	(f)  An association may not restrict the time or duration
2391	for shutters or other hurricane protection to be open or closed
2392	during any period and may not restrict homeowners from mounting
2393	or employing temporary shutters or other hurricane protection on
2394	any portion of the home.
2395	Section 22.  This act shall take effect July 1, 2007.

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