Senate Bill sb2816c1

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    Florida Senate - 2007                           CS for SB 2816

    By the Committee on Regulated Industries; and Senator
    Villalobos




    580-2465-07

  1                      A bill to be entitled

  2         An act relating to community associations;

  3         amending s. 718.104, F.S.; revising required

  4         contents of a condominium declaration; amending

  5         s. 718.110, F.S.; requiring that notice of

  6         proposed amendments be provided to unit owners;

  7         amending s. 718.111, F.S.; providing

  8         authorization for condominium associations to

  9         access units for specified purposes; requiring

10         that official records of the association be

11         made available at certain locations; providing

12         that certain records may not be accessible to

13         unit owners; removing the requirement that the

14         association's annual financial report be

15         provided only to unit owners providing a

16         written request for the report; restricting a

17         condominium association from waiving a

18         financial report for more than 2 years;

19         providing duties for condominium boards of

20         administration in the event of certain

21         casualties; providing that certain assessments

22         may be made against unit owners under certain

23         conditions; amending s. 718.112, F.S.;

24         authorizing the board or membership to

25         determine the composition of the board of

26         administration under certain circumstances;

27         requiring members of the board of

28         administration to be unit owners, absent

29         provisions indicating board member

30         requirements; requiring the board to respond to

31         certain inquiries by certified mail, return

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    Florida Senate - 2007                           CS for SB 2816
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 1         receipt requested; authorizing a condominium

 2         association to respond only twice every 30 days

 3         to unit owner inquiries; providing board of

 4         administration and unit owners' meeting

 5         requirements; requiring the board to address

 6         certain agenda items proposed by a petition of

 7         20 percent of the unit owners; revising notice

 8         procedures; revising the terms of office and

 9         reelection of the members of a condominium

10         association board; providing that certain

11         persons providing notice of a meeting must

12         provide an affidavit affirming that the notices

13         were delivered; authorizing the association's

14         representative to provide certain notices;

15         providing for the securing of ballots; revising

16         procedures relating to the filling of a vacancy

17         on the board; removing a provision allowing an

18         association to provide for different voting and

19         election procedures in its bylaws; providing

20         unit owners with the right to have items placed

21         on the agenda of the annual meeting and voted

22         upon under certain conditions; requiring the

23         association to prepare an annual budget of

24         estimated revenues and expenses; requiring the

25         budget to include reserve accounts for certain

26         purposes; requiring that certain ballot

27         statements contain certain statements;

28         requiring a vote to provide for no reserves or

29         percentage of reserves to be made at certain

30         times; authorizing the association to use

31         reserve funds for nonscheduled purposes under

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    Florida Senate - 2007                           CS for SB 2816
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 1         certain conditions; prohibiting the board from

 2         applying for or accepting certain loans or

 3         lines of credit; requiring that common expenses

 4         be paid by the developer during a specified

 5         time; requiring that assessments be made

 6         against units on a quarter-annual or more

 7         frequent basis; providing that certain

 8         provisions may not preclude the right of an

 9         association to accelerate assessments of

10         certain owners delinquent in payment of common

11         expenses; providing that accelerated

12         assessments are due and payable after the claim

13         of lien is filed; revising assessment

14         requirements; deleting the requirement that the

15         bylaws include an element for mandatory

16         nonbinding arbitration; amending s. 718.113,

17         F.S.; requiring boards of administration to

18         adopt or restate hurricane shutter

19         specifications yearly at the annual meeting;

20         authorizing the board to install hurricane

21         protection that complies with the applicable

22         building code; requiring the board to have the

23         condominium buildings periodically inspected

24         for structural and electrical soundness by a

25         professional engineer or professional architect

26         registered in the state; requiring the

27         inspector to provide a report to the

28         association and unit owners; prohibiting the

29         board from prohibiting the display of certain

30         religious items on the front-door area of a

31         unit; creating s. 718.1224, F.S.; prohibiting

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    Florida Senate - 2007                           CS for SB 2816
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 1         certain lawsuits arising from unit owners'

 2         appearances and presentations before a

 3         governmental entity; providing a definition;

 4         providing for award of damages and attorney's

 5         fees; amending s. 718.1255, F.S.; requiring the

 6         division to promptly refer certain cases to

 7         mediation; creating s. 718.1257, F.S.;

 8         providing that condominium unit owners and

 9         renters have the right to own a companion

10         animal and to have that animal live with them

11         under specified conditions; amending s.

12         718.302, F.S.; conforming provisions; amending

13         s. 718.3025, F.S.; providing requirements for

14         certain contracts between a party contracting

15         to provide maintenance or management services

16         and an association; amending s. 718.3026, F.S.;

17         providing that certain contracts between a

18         service provider and an association may not be

19         for a term in excess of 3 years and may not

20         contain an automatic renewal clause; requiring

21         that certain contracts for construction occur

22         under the advisement of an attorney; amending

23         s. 718.303, F.S.; requiring hearings to levy

24         fines to be held before a committee of unit

25         owners who are not members of the board;

26         requiring that persons subject to certain

27         actions be notified of their violations in a

28         certain manner; providing a timeframe within

29         which a person must respond; authorizing the

30         budget to include reserve accounts for capital

31         expenditures and deferred maintenance;

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    Florida Senate - 2007                           CS for SB 2816
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 1         providing a formula for calculating the amount

 2         to be reserved; authorizing the association to

 3         adjust replacement reserve assessments

 4         annually; authorizing the developer to vote to

 5         waive the reserves or reduce the funding of

 6         reserves for a certain period; revising

 7         provisions relating to financial reporting;

 8         revising time periods in which the association

 9         must complete its reporting; amending s.

10         718.404, F.S.; providing for retroactive

11         application of certain provisions; amending s.

12         718.501, F.S.; requiring the division to

13         prepare and disseminate a prospectus and other

14         information for use by owners, purchasers,

15         lessees, and developers of residential

16         condominiums; providing that the board member

17         training provided by the division shall be

18         provided in conjunction with recommendations by

19         the ombudsman; providing powers and duties of

20         the division with respect to association

21         violations; requiring associations to provide

22         certain notice and to participate in certain

23         educational training; amending s. 718.5011,

24         F.S.; restricting location of the Office of the

25         Condominium Ombudsman; providing that the

26         ombudsman shall exercise his or her

27         policymaking and other functions independently

28         of the Department of Business and Professional

29         Regulation and without approval or control of

30         the department; requiring the department to

31         render administrative support for certain

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 1         matters; requiring that revenues collected by

 2         the department for the Office of the

 3         Condominium Ombudsman be deposited in a

 4         separate fund or account under specified

 5         conditions; amending s. 718.5012, F.S.;

 6         removing requirements that the ombudsman

 7         develop certain policies and procedures;

 8         providing additional powers and duties of the

 9         ombudsman; amending s. 718.504,F.S.; revising

10         and providing information to be contained in

11         the condominium prospectus or offering

12         circular; amending s. 720.303, F.S.; revising

13         procedures used in preparing the association's

14         annual financial report; amending s. 720.307,

15         F.S., relating to transition of association

16         control in a community; revising criteria with

17         respect to election of members to the board of

18         directors; requiring certain developers and

19         owners to convey title to all common areas

20         prior to turnover; revising requirements for

21         turnover of documents; requiring that certain

22         information be included in the records and that

23         the records be prepared in a specified manner;

24         revising application to include certain

25         associations; amending s. 720.3075, F.S.;

26         prohibiting associations from restricting the

27         use of hurricane shutters in certain

28         circumstances; requiring a developer who rents

29         or leases any unsold units in a condominium to

30         pay all monthly maintenance fees on those units

31         to the association as if the units were owned

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    Florida Senate - 2007                           CS for SB 2816
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 1         by individual owners; providing an effective

 2         date.

 3  

 4  Be It Enacted by the Legislature of the State of Florida:

 5  

 6         Section 1.  Paragraph (f) of subsection (4) of section

 7  718.104, Florida Statutes, is amended to read:

 8         718.104  Creation of condominiums; contents of

 9  declaration.--Every condominium created in this state shall be

10  created pursuant to this chapter.

11         (4)  The declaration must contain or provide for the

12  following matters:

13         (f)  The undivided share of ownership of the common

14  elements and common surplus of the condominium that is

15  appurtenant to each unit stated as a percentage or a fraction

16  of the whole.  In the declaration of condominium for

17  residential condominiums created after April 1, 2007 1992, the

18  ownership share of the common elements assigned to each

19  residential unit shall be based either upon the total square

20  footage of each residential unit in uniform relationship to

21  the total square footage of each other residential unit in the

22  condominium or on an equal fractional basis.

23         Section 2.  Paragraph (d) is added to subsection (1) of

24  section 718.110, Florida Statutes, to read:

25         718.110  Amendment of declaration; correction of error

26  or omission in declaration by circuit court.--

27         (1)

28         (d)  Notice of a proposed amendment to the declaration

29  shall be sent to the unit owner by certified mail.

30         Section 3.  Subsection (5), paragraph (b) of subsection

31  (7), paragraphs (b) and (c) of subsection (12), and subsection

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    Florida Senate - 2007                           CS for SB 2816
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 1  (13) of section 718.111, Florida Statutes, are amended, and

 2  subsection (15) is added to that section, to read:

 3         718.111  The association.--

 4         (5)  RIGHT OF ACCESS TO UNITS.--The association has the

 5  irrevocable right of access to each unit during reasonable

 6  hours, when necessary for the maintenance, repair, or

 7  replacement of any common elements or of any portion of a unit

 8  to be maintained by the association pursuant to the

 9  declaration or as necessary to prevent damage to the common

10  elements or to a unit or units. Except in cases of emergency,

11  the association must give the unit owner 24 hours' advance

12  written notice of intent to access the unit.

13         (7)  TITLE TO PROPERTY.--

14         (b)  Subject to the provisions of s. 718.112(2)(m), the

15  association, through its board, has the limited power to

16  convey a portion of the common elements to a condemning

17  authority for the purposes of providing utility easements,

18  right-of-way expansion, or other public purposes, whether

19  negotiated or as a result of eminent domain proceedings.

20         (12)  OFFICIAL RECORDS.--

21         (b)  The official records of the association shall be

22  maintained within the state. The records of the association

23  shall be made available to a unit owner, at a location within

24  30 miles driving distance of the condominium property, within

25  5 working days after receipt of written request by the board

26  or its designee. This paragraph may be complied with by having

27  a copy of the official records of the association available

28  for inspection or copying on the condominium property or

29  association property.

30         (c)  The official records of the association are open

31  to inspection by any association member or the authorized

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    Florida Senate - 2007                           CS for SB 2816
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 1  representative of such member at all reasonable times. The

 2  right to inspect the records includes the right to make or

 3  obtain copies, at the reasonable expense, if any, of the

 4  association member. The association may adopt reasonable rules

 5  regarding the frequency, time, location, notice, and manner of

 6  record inspections and copying. The failure of an association

 7  to provide the records within 10 working days after receipt of

 8  a written request shall create a rebuttable presumption that

 9  the association willfully failed to comply with this

10  paragraph. A unit owner who is denied access to official

11  records is entitled to the actual damages or minimum damages

12  for the association's willful failure to comply with this

13  paragraph. The minimum damages shall be $50 per calendar day

14  up to 10 days, the calculation to begin on the 11th working

15  day after receipt of the written request. The failure to

16  permit inspection of the association records as provided

17  herein entitles any person prevailing in an enforcement action

18  to recover reasonable attorney's fees from the person in

19  control of the records who, directly or indirectly, knowingly

20  denied access to the records for inspection. The association

21  shall maintain an adequate number of copies of the

22  declaration, articles of incorporation, bylaws, and rules, and

23  all amendments to each of the foregoing, as well as the

24  question and answer sheet provided for in s. 718.504 and

25  year-end financial information required in this section on the

26  condominium property to ensure their availability to unit

27  owners and prospective purchasers, and may charge its actual

28  costs for preparing and furnishing these documents to those

29  requesting the same. Notwithstanding the provisions of this

30  paragraph, the following records shall not be accessible to

31  unit owners:

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    Florida Senate - 2007                           CS for SB 2816
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 1         1.  Any record protected by the lawyer-client privilege

 2  as described in s. 90.502; and any record protected by the

 3  work-product privilege, including any record prepared by an

 4  association attorney or prepared at the attorney's express

 5  direction; which reflects a mental impression, conclusion,

 6  litigation strategy, or legal theory of the attorney or the

 7  association, and which was prepared exclusively for civil or

 8  criminal litigation or for adversarial administrative

 9  proceedings, or which was prepared in anticipation of imminent

10  civil or criminal litigation or imminent adversarial

11  administrative proceedings until the conclusion of the

12  litigation or adversarial administrative proceedings.

13         2.  Information obtained by an association in

14  connection with the approval of the lease, sale, or other

15  transfer of a unit.

16         3.  Medical records of unit owners.

17         4.  Social security numbers, driver's license numbers,

18  credit card numbers, and other personal identifying

19  information of unit owners, occupants, or tenants.

20         (13)  FINANCIAL REPORTING.--Within 90 days after the

21  end of the fiscal year, or annually on a date provided in the

22  bylaws, the association shall prepare and complete, or

23  contract for the preparation and completion of, a financial

24  report for the preceding fiscal year.  Within 21 days after

25  the final financial report is completed by the association or

26  received from the third party, but not later than 120 days

27  after the end of the fiscal year or other date as provided in

28  the bylaws, the association shall mail to each unit owner at

29  the address last furnished to the association by the unit

30  owner, or hand deliver to each unit owner, a copy of the

31  financial report or a notice that a copy of the financial

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    Florida Senate - 2007                           CS for SB 2816
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 1  report will be mailed or hand delivered to the unit owner,

 2  without charge, upon receipt of a written request from the

 3  unit owner. The division shall adopt rules setting forth

 4  uniform accounting principles and standards to be used by all

 5  associations and shall adopt rules addressing financial

 6  reporting requirements for multicondominium associations. In

 7  adopting such rules, the division shall consider the number of

 8  members and annual revenues of an association. Financial

 9  reports shall be prepared as follows:

10         (a)  An association that meets the criteria of this

11  paragraph shall prepare or cause to be prepared a complete set

12  of financial statements in accordance with generally accepted

13  accounting principles. The financial statements shall be based

14  upon the association's total annual revenues, as follows:

15         1.  An association with total annual revenues of

16  $100,000 or more, but less than $200,000, shall prepare

17  compiled financial statements.

18         2.  An association with total annual revenues of at

19  least $200,000, but less than $400,000, shall prepare reviewed

20  financial statements.

21         3.  An association with total annual revenues of

22  $400,000 or more shall prepare audited financial statements.

23         (b)1.  An association with total annual revenues of

24  less than $100,000 shall prepare a report of cash receipts and

25  expenditures.

26         2.  An association which operates less than 50 units,

27  regardless of the association's annual revenues, shall prepare

28  a report of cash receipts and expenditures in lieu of

29  financial statements required by paragraph (a).

30         3.  A report of cash receipts and disbursements must

31  disclose the amount of receipts by accounts and receipt

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 1  classifications and the amount of expenses by accounts and

 2  expense classifications, including, but not limited to, the

 3  following, as applicable: costs for security, professional and

 4  management fees and expenses, taxes, costs for recreation

 5  facilities, expenses for refuse collection and utility

 6  services, expenses for lawn care, costs for building

 7  maintenance and repair, insurance costs, administration and

 8  salary expenses, and reserves accumulated and expended for

 9  capital expenditures, deferred maintenance, and any other

10  category for which the association maintains reserves.

11         (c)  An association may prepare or cause to be

12  prepared, without a meeting of or approval by the unit owners:

13         1.  Compiled, reviewed, or audited financial

14  statements, if the association is required to prepare a report

15  of cash receipts and expenditures;

16         2.  Reviewed or audited financial statements, if the

17  association is required to prepare compiled financial

18  statements; or

19         3.  Audited financial statements if the association is

20  required to prepare reviewed financial statements.

21         (d)  If approved by a majority of the voting interests

22  present at a properly called meeting of the association, an

23  association may prepare or cause to be prepared:

24         1.  A report of cash receipts and expenditures in lieu

25  of a compiled, reviewed, or audited financial statement;

26         2.  A report of cash receipts and expenditures or a

27  compiled financial statement in lieu of a reviewed or audited

28  financial statement; or

29         3.  A report of cash receipts and expenditures, a

30  compiled financial statement, or a reviewed financial

31  statement in lieu of an audited financial statement.

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 1  

 2  Such meeting and approval must occur prior to the end of the

 3  fiscal year and is effective only for the fiscal year in which

 4  the vote is taken. With respect to an association to which the

 5  developer has not turned over control of the association, all

 6  unit owners, including the developer, may vote on issues

 7  related to the preparation of financial reports for the first

 8  2 fiscal years of the association's operation, beginning with

 9  the fiscal year in which the declaration is recorded.

10  Thereafter, all unit owners except the developer may vote on

11  such issues until control is turned over to the association by

12  the developer. An association or board of administration may

13  not waive the financial reporting requirements of this section

14  for more than 2 consecutive years.

15         (15)  RECONSTRUCTION AFTER CASUALTY.--

16         (a)  If the condominium property and units are damaged

17  after a casualty, the board of administration shall obtain

18  reliable and detailed estimates of the cost necessary to

19  repair and replace the damaged property to substantially the

20  same condition existing immediately before the casualty and

21  substantially in accordance with the original plans and

22  specifications of the condominium as soon as possible and not

23  later than 60 days after the casualty. If the damage to the

24  condominium property exceeds 50 percent of the property's

25  value, the condominium may be terminated unless 75 percent of

26  the unit owners agree to reconstruction and repair within 90

27  days after the casualty.

28         (b)  The board of administration shall engage the

29  services of a registered architect and knowledgeable

30  construction specialists to prepare any necessary plans and

31  specifications and shall receive and approve bids for

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 1  reconstruction, execute all necessary contracts for

 2  restoration, and arrange for disbursement of construction

 3  funds, the approval of work, and all other matters pertaining

 4  to the repairs and reconstruction required.

 5         (c)  If the proceeds of the hazard insurance policy

 6  maintained by the association under paragraph (11)(b) are

 7  insufficient to pay the estimated costs of reconstruction or

 8  at any time during reconstruction and repair, assessments

 9  shall be made against all unit owners according to their share

10  of the common elements and expenses as set forth in the

11  declaration of condominium.

12         (d)  Assessments shall be made against unit owners for

13  damage to their units according to the cost of reconstruction

14  or repair of their respective units. The assessments shall be

15  levied and collected as all other assessments are provided for

16  in this chapter.

17         Section 4.  Subsection (2) of section 718.112, Florida

18  Statutes, is amended to read:

19         718.112  Bylaws.--

20         (2)  REQUIRED PROVISIONS.--The bylaws of the

21  association shall provide for the following and, if they do

22  not do so, shall be deemed to include the following:

23         (a)  Administration.--

24         1.  The form of administration of the association shall

25  be described indicating the title of the officers and board of

26  administration and specifying the powers, duties, manner of

27  selection and removal, and compensation, if any, of officers

28  and boards. In the absence of such a provision or

29  determination by the board or membership, the board of

30  administration shall be composed of five members who are unit

31  owners, except in the case of a condominium which has five or

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 1  fewer units, in which case in a not-for-profit corporation the

 2  board shall consist of not fewer than three members who are

 3  unit owners. In the absence of provisions to the contrary in

 4  the bylaws, the board of administration shall have a

 5  president, a secretary, and a treasurer, who shall perform the

 6  duties of such officers customarily performed by officers of

 7  corporations. Unless prohibited in the bylaws, the board of

 8  administration may appoint other officers and grant them the

 9  duties it deems appropriate. Unless otherwise provided in the

10  bylaws, the officers shall serve without compensation and at

11  the pleasure of the board of administration. Unless otherwise

12  provided in the bylaws, the members of the board shall serve

13  without compensation.

14         2.  When a unit owner files a written inquiry by

15  certified mail with the board of administration, the board

16  shall respond in writing by certified mail, return receipt

17  requested, to the unit owner within 30 days after of receipt

18  of the inquiry.  The board's response shall either give a

19  substantive response to the inquirer, notify the inquirer that

20  a legal opinion has been requested, or notify the inquirer

21  that advice has been requested from the division. If the board

22  requests advice from the division, the board shall, within 10

23  days after of its receipt of the advice, provide in writing by

24  certified mail a substantive response to the inquirer. If a

25  legal opinion is requested, the board shall, within 60 days

26  after the receipt of the inquiry, provide in writing by

27  certified mail a substantive response to the inquiry.  The

28  failure to provide a substantive response to the inquiry as

29  provided herein precludes the board from recovering attorney's

30  fees and costs in any subsequent litigation, administrative

31  proceeding, or arbitration arising out of the inquiry. The

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 1  association may through its board of administration adopt

 2  reasonable rules and regulations regarding the frequency and

 3  manner of responding to unit owner inquiries, one of which may

 4  be that the association is only obligated to respond to two

 5  one written inquiries inquiry per unit in any given 30-day

 6  period.  In such a case, any additional inquiry or inquiries

 7  must be responded to in the subsequent 30-day period, or

 8  periods, as applicable.

 9         (b)  Quorum; voting requirements; proxies.--

10         1.  Unless a lower number is provided in the bylaws,

11  the percentage of voting interests required to constitute a

12  quorum at a meeting of the members shall be a majority of the

13  voting interests.  Unless otherwise provided in this chapter

14  or in the declaration, articles of incorporation, or bylaws,

15  and except as provided in subparagraph (d)3., decisions shall

16  be made by owners of a majority of the voting interests

17  represented at a meeting at which a quorum is present.

18         2.  Except as specifically otherwise provided herein,

19  after January 1, 1992, unit owners may not vote by general

20  proxy, but may vote by limited proxies substantially

21  conforming to a limited proxy form adopted by the division.

22  Limited proxies and general proxies may be used to establish a

23  quorum. Limited proxies shall be used for votes taken to waive

24  or reduce reserves in accordance with subparagraph (f)2.; for

25  votes taken to waive the financial reporting requirements of

26  s. 718.111(13); for votes taken to amend the declaration

27  pursuant to s. 718.110; for votes taken to amend the articles

28  of incorporation or bylaws pursuant to this section; and for

29  any other matter for which this chapter requires or permits a

30  vote of the unit owners. A Except as provided in paragraph

31  (d), after January 1, 1992, no proxy, limited or general, may

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 1  not shall be used in the election of board members. General

 2  proxies may be used for other matters for which limited

 3  proxies are not required, and may also be used in voting for

 4  nonsubstantive changes to items for which a limited proxy is

 5  required and given. Notwithstanding the provisions of this

 6  subparagraph, unit owners may vote in person at unit owner

 7  meetings.  Nothing contained herein shall limit the use of

 8  general proxies or require the use of limited proxies for any

 9  agenda item or election at any meeting of a timeshare

10  condominium association.

11         3.  Any proxy given shall be effective only for the

12  specific meeting for which originally given and any lawfully

13  adjourned meetings thereof.  In no event shall any proxy be

14  valid for a period longer than 90 days after the date of the

15  first meeting for which it was given.  Every proxy is

16  revocable at any time at the pleasure of the unit owner

17  executing it.

18         4.  A member of the board of administration or a

19  committee may submit in writing his or her agreement or

20  disagreement with any action taken at a meeting that the

21  member did not attend. This agreement or disagreement may not

22  be used as a vote for or against the action taken and may not

23  be used for the purposes of creating a quorum.

24         5.  When any of the board or committee members meet by

25  telephone conference, those board or committee members

26  attending by telephone conference may be counted toward

27  obtaining a quorum and may vote by telephone. A telephone

28  speaker must be used so that the conversation of those board

29  or committee members attending by telephone may be heard by

30  the board or committee members attending in person as well as

31  by any unit owners present at a meeting.

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 1         (c)  Board of administration meetings.--Meetings of the

 2  board of administration at which a quorum of the members is

 3  present shall be open to all unit owners. The board of

 4  administration shall address agenda items proposed by a

 5  petition of 20 percent of the unit owners submitted at least

 6  48 hours before the meeting date, in time for the directors to

 7  study and understand the agenda items, and in time to post the

 8  updated agenda before the meeting. A unit owner's facsimile

 9  signature constitutes the unit owner's original signature in

10  any matter under this chapter that requires the unit owner's

11  signature. Correspondence from the board of administration to

12  unit owners shall be accomplished by the same, or a more

13  secure, delivery method that is as secure as certified mail,

14  return receipt requested, except as otherwise provided in this

15  paragraph. Any unit owner may tape record or videotape

16  meetings of the board of administration. The right to attend

17  such meetings includes the right to speak at such meetings

18  with reference to all designated agenda items. The division

19  shall adopt reasonable rules governing the tape recording and

20  videotaping of the meeting. The association may adopt written

21  reasonable rules governing the frequency, duration, and manner

22  of unit owner statements. Adequate notice of all meetings,

23  which notice shall specifically incorporate an identification

24  of agenda items, shall be posted conspicuously on the

25  condominium property at least 48 continuous hours preceding

26  the meeting except in an emergency. Any item not included on

27  the notice may be taken up on an emergency basis by at least a

28  majority plus one of the members of the board or by a petition

29  of 20 percent of the unit owners. Such emergency action shall

30  be noticed and ratified at the next regular meeting of the

31  board. However, written notice of any meeting at which

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 1  nonemergency special assessments, or at which amendment to

 2  rules regarding unit use, will be considered shall be mailed,

 3  delivered, or electronically transmitted to the unit owners

 4  and posted conspicuously on the condominium property not less

 5  than 14 days prior to the meeting. Evidence of compliance with

 6  this 14-day notice shall be made by an affidavit executed by

 7  the person providing the notice and filed among the official

 8  records of the association. Upon notice to the unit owners,

 9  the board shall by duly adopted rule designate a specific

10  location on the condominium property or association property

11  upon which all notices of board meetings shall be posted. If

12  there is no condominium property or association property upon

13  which notices can be posted, notices of board meetings shall

14  be mailed, delivered, or electronically transmitted at least

15  14 days before the meeting to the owner of each unit. In lieu

16  of or in addition to the physical posting of notice of any

17  meeting of the board of administration on the condominium

18  property, the association may, by reasonable rule, adopt a

19  procedure for conspicuously posting and repeatedly

20  broadcasting the notice and the agenda on a closed-circuit

21  cable television system serving the condominium association.

22  However, if broadcast notice is used in lieu of a notice

23  posted physically on the condominium property, the notice and

24  agenda must be broadcast at least four times every broadcast

25  hour of each day that a posted notice is otherwise required

26  under this section. When broadcast notice is provided, the

27  notice and agenda must be broadcast in a manner and for a

28  sufficient continuous length of time so as to allow an average

29  reader to observe the notice and read and comprehend the

30  entire content of the notice and the agenda. Notice of any

31  meeting in which regular or special assessments against unit

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 1  owners are to be considered for any reason shall specifically

 2  state contain a statement that assessments will be considered

 3  and specify the nature, cost, and breakdown of any such

 4  assessments. Meetings of a committee to take final action on

 5  behalf of the board or make recommendations to the board

 6  regarding the association budget are subject to the provisions

 7  of this paragraph. Meetings of a committee that does not take

 8  final action on behalf of the board or make recommendations to

 9  the board regarding the association budget are subject to the

10  provisions of this section, unless those meetings are exempted

11  from this section by the bylaws of the association.

12  Notwithstanding any other law, the requirement that board

13  meetings and committee meetings be open to the unit owners is

14  inapplicable to meetings between the board or a committee and

15  the association's attorney, with respect to proposed or

16  pending litigation, when the meeting is held for the purpose

17  of seeking or rendering legal advice.

18         (d)  Unit owner meetings.--

19         1.  There shall be an annual meeting of the unit

20  owners. Unless the bylaws provide otherwise, a vacancy on the

21  board caused by the expiration of a director's term shall be

22  filled by electing a new board member, and the election shall

23  be by secret ballot; however, if the number of vacancies

24  equals or exceeds the number of candidates, no election is

25  required. If there is no provision in the bylaws for terms of

26  the members of the board, the terms of all members of the

27  board shall expire upon the election of their successors at

28  the annual meeting. Any unit owner desiring to be a candidate

29  for board membership shall comply with subparagraph 3. The

30  only prohibition against eligibility for board membership

31  shall be for a person who has been convicted of any felony by

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 1  any court of record in the United States and who has not had

 2  his or her right to vote restored pursuant to law in the

 3  jurisdiction of his or her residence is not eligible for board

 4  membership. The validity of an action by the board is not

 5  affected if it is later determined that a member of the board

 6  is ineligible for board membership due to having been

 7  convicted of a felony.

 8         2.  The bylaws shall provide the method of calling

 9  meetings of unit owners, including annual meetings. Written

10  notice, which notice must include an agenda, shall be mailed,

11  hand delivered, or electronically transmitted to each unit

12  owner at least 14 days prior to the annual meeting and shall

13  be posted in a conspicuous place on the condominium property

14  at least 14 continuous days preceding the annual meeting. Upon

15  notice to the unit owners, the board shall by duly adopted

16  rule designate a specific location on the condominium property

17  or association property upon which all notices of unit owner

18  meetings shall be posted; however, if there is no condominium

19  property or association property upon which notices can be

20  posted, this requirement does not apply. In lieu of or in

21  addition to the physical posting of notice of any meeting of

22  the unit owners on the condominium property, the association

23  may, by reasonable rule, adopt a procedure for conspicuously

24  posting and repeatedly broadcasting the notice and the agenda

25  on a closed-circuit cable television system serving the

26  condominium association. However, if broadcast notice is used

27  in lieu of a notice posted physically on the condominium

28  property, the notice and agenda must be broadcast at least

29  four times every broadcast hour of each day that a posted

30  notice is otherwise required under this section. When

31  broadcast notice is provided, the notice and agenda must be

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 1  broadcast in a manner and for a sufficient continuous length

 2  of time so as to allow an average reader to observe the notice

 3  and read and comprehend the entire content of the notice and

 4  the agenda. Unless a unit owner waives in writing the right to

 5  receive notice of the annual meeting, such notice shall be

 6  hand delivered, mailed, or electronically transmitted to each

 7  unit owner. Notice for meetings and notice for all other

 8  purposes shall be mailed to each unit owner at the address

 9  last furnished to the association by the unit owner, or hand

10  delivered to each unit owner. However, if a unit is owned by

11  more than one person, the association shall provide notice,

12  for meetings and all other purposes, to that one address which

13  the developer initially identifies for that purpose and

14  thereafter as one or more of the owners of the unit shall so

15  advise the association in writing, or if no address is given

16  or the owners of the unit do not agree, to the address

17  provided on the deed of record. An officer of the association,

18  or the manager or other person providing the first notice of

19  the association meeting, and the second notice as provided for

20  in subparagraph 3., shall provide an affidavit or United

21  States Postal Service certificate of mailing, to be included

22  in the official records of the association affirming that the

23  notices were notice was mailed or hand delivered, in

24  accordance with this provision.

25         3.  The members of the board shall be elected by

26  written ballot or voting machine. Proxies shall in no event be

27  used in electing the board, either in general elections or

28  elections to fill vacancies caused by recall, resignation, or

29  otherwise, unless otherwise provided in this chapter. Not less

30  than 60 days before a scheduled election, the association or

31  its representative shall mail, deliver, or electronically

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 1  transmit, whether by separate association mailing or included

 2  in another association mailing, delivery, or transmission,

 3  including regularly published newsletters, to each unit owner

 4  entitled to a vote, a first notice of the date of the

 5  election. Any unit owner or other eligible person desiring to

 6  be a candidate for the board must give written notice to the

 7  association or its representative not less than 40 days before

 8  a scheduled election. Together with the written notice and

 9  agenda as set forth in subparagraph 2., the association or its

10  representative shall mail, deliver, or electronically transmit

11  a second notice of the election to all unit owners entitled to

12  vote therein, together with a ballot which shall list all

13  candidates. Upon request of a candidate, the association or

14  its representative shall include an information sheet, no

15  larger than 8 1/2  inches by 11 inches, which must be

16  furnished by the candidate not less than 35 days before the

17  election, to be included with the mailing, delivery, or

18  transmission of the ballot, with the costs of mailing,

19  delivery, or electronic transmission and copying to be borne

20  by the association. The association or its representative is

21  not liable for the contents of the information sheets prepared

22  by the candidates. In order to reduce costs, the association

23  may print or duplicate the information sheets on both sides of

24  the paper. The division shall by rule establish voting

25  procedures consistent with the provisions contained herein,

26  including rules establishing procedures for giving notice by

27  electronic transmission and rules providing for the secrecy of

28  ballots. All ballot envelopes must be placed in a locked or

29  sealed ballot drop box immediately upon receipt, and the box

30  may not be opened in advance of the election meeting.

31  Elections shall be decided by a plurality of those ballots

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 1  cast. There shall be no quorum requirement; however, at least

 2  20 percent of the eligible voters must cast a ballot in order

 3  to have a valid election of members of the board. No unit

 4  owner shall permit any other person to vote his or her ballot,

 5  and any such ballots improperly cast shall be deemed invalid,

 6  provided any unit owner who violates this provision may be

 7  fined by the association in accordance with s. 718.303. A unit

 8  owner who needs assistance in casting the ballot for the

 9  reasons stated in s. 101.051 may obtain assistance in casting

10  the ballot. The regular election shall occur on the date of

11  the annual meeting. The provisions of this subparagraph shall

12  not apply to timeshare condominium associations.

13  Notwithstanding the provisions of this subparagraph, an

14  election is not required unless more candidates file notices

15  of intent to run or are nominated than board vacancies exist.

16         4.  Any approval by unit owners called for by this

17  chapter or the applicable declaration or bylaws, including,

18  but not limited to, the approval requirement in s. 718.111(8),

19  shall be made at a duly noticed meeting of unit owners and

20  shall be subject to all requirements of this chapter or the

21  applicable condominium documents relating to unit owner

22  decisionmaking, except that unit owners may take action by

23  written agreement, without meetings, on matters for which

24  action by written agreement without meetings is expressly

25  allowed by the applicable bylaws or declaration or any statute

26  that provides for such action.

27         5.  Unit owners may waive notice of specific meetings

28  if allowed by the applicable bylaws or declaration or any

29  statute. If authorized by the bylaws, notice of meetings of

30  the board of administration, unit owner meetings, except unit

31  owner meetings called to recall board members under paragraph

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 1  (j), and committee meetings may be given by electronic

 2  transmission to unit owners who consent to receive notice by

 3  electronic transmission.

 4         6.  Unit owners shall have the right to participate in

 5  meetings of unit owners with reference to all designated

 6  agenda items. However, the association may adopt reasonable

 7  rules governing the frequency, duration, and manner of unit

 8  owner participation.

 9         7.  Any unit owner may tape record or videotape a

10  meeting of the unit owners subject to reasonable rules adopted

11  by the division.

12         8.  Unless otherwise provided in the bylaws, any

13  vacancy occurring on the board before the expiration of a term

14  may be filled by the affirmative vote of the majority of the

15  remaining directors, even if the remaining directors

16  constitute less than a quorum, or by the sole remaining

17  director. In the alternative, a board may hold an election to

18  fill the vacancy, in which case the election procedures must

19  conform to the requirements of subparagraph 3. unless the

20  association has opted out of the statutory election process,

21  in which case the bylaws of the association control. Unless

22  otherwise provided in the bylaws, a board member appointed or

23  elected under this section shall fill the vacancy for the

24  unexpired term of the seat being filled. Filling vacancies

25  created by recall is governed by paragraph (j) and rules

26  adopted by the division.

27         9.  Unit owners have the right to have items not

28  related to the budget placed on the agenda of the annual

29  meeting and voted upon if a written request is made to the

30  board of administration by 20 percent or more of all voting

31  

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 1  interests at least 90 days before the date of the annual

 2  meeting.

 3  

 4  Notwithstanding subparagraphs (b)2. and (d)3., an association

 5  may, by the affirmative vote of a majority of the total voting

 6  interests, provide for different voting and election

 7  procedures in its bylaws, which vote may be by a proxy

 8  specifically delineating the different voting and election

 9  procedures. The different voting and election procedures may

10  provide for elections to be conducted by limited or general

11  proxy.

12         (e)  Budget meeting.--

13         1.  Any meeting at which a proposed annual budget of an

14  association will be considered by the board or unit owners

15  shall be open to all unit owners. At least 14 days prior to

16  such a meeting, the board shall hand deliver to each unit

17  owner, mail to each unit owner at the address last furnished

18  to the association by the unit owner, or electronically

19  transmit to the location furnished by the unit owner for that

20  purpose a notice of such meeting and a copy of the proposed

21  annual budget. An officer or manager of the association, or

22  other person providing notice of such meeting, shall execute

23  an affidavit evidencing compliance with such notice

24  requirement, and such affidavit shall be filed among the

25  official records of the association.

26         2.a.  If a board adopts in any fiscal year an annual

27  budget which requires assessments against unit owners which

28  exceed 115 percent of assessments for the preceding fiscal

29  year, the board shall conduct a special meeting of the unit

30  owners to consider a substitute budget if the board receives,

31  within 21 days after adoption of the annual budget, a written

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 1  request for a special meeting from at least 10 percent of all

 2  voting interests. The special meeting shall be conducted

 3  within 60 days after adoption of the annual budget.  At least

 4  14 days prior to such special meeting, the board shall hand

 5  deliver to each unit owner, or mail to each unit owner at the

 6  address last furnished to the association, a notice of the

 7  meeting. An officer or manager of the association, or other

 8  person providing notice of such meeting shall execute an

 9  affidavit evidencing compliance with this notice requirement,

10  and such affidavit shall be filed among the official records

11  of the association. Unit owners may consider and adopt a

12  substitute budget at the special meeting. A substitute budget

13  is adopted if approved by a majority of all voting interests

14  unless the bylaws require adoption by a greater percentage of

15  voting interests.  If there is not a quorum at the special

16  meeting or a substitute budget is not adopted, the annual

17  budget previously adopted by the board shall take effect as

18  scheduled.

19         b.  Any determination of whether assessments exceed 115

20  percent of assessments for the prior fiscal year shall exclude

21  any authorized provision for reasonable reserves for repair or

22  replacement of the condominium property, anticipated expenses

23  of the association which the board does not expect to be

24  incurred on a regular or annual basis, or assessments for

25  betterments to the condominium property.

26         c.  If the developer controls the board, assessments

27  shall not exceed 115 percent of assessments for the prior

28  fiscal year unless approved by a majority of all voting

29  interests.

30         (f)  Annual budget.--

31  

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 1         1.  The association shall prepare an annual budget of

 2  the estimated revenues and expenses. The adopted budget of the

 3  previous fiscal year shall remain in effect until the

 4  association has adopted a new budget for the current fiscal

 5  year. The proposed annual budget of estimated revenues and

 6  common expenses shall be detailed and shall show the amounts

 7  budgeted by accounts and expense classifications, including,

 8  if applicable, but not limited to, those expenses listed in s.

 9  718.504(21). A multicondominium association shall adopt a

10  separate budget of common expenses for each condominium the

11  association operates and shall adopt a separate budget of

12  common expenses for the association. In addition, if the

13  association maintains limited common elements with the cost to

14  be shared only by those entitled to use the limited common

15  elements as provided for in s. 718.113(1), the budget or a

16  schedule attached thereto shall show amounts budgeted

17  therefor. If, after turnover of control of the association to

18  the unit owners, any of the expenses listed in s. 718.504(21)

19  are not applicable, they need not be listed.

20         2.  In addition to annual operating expenses, the

21  budget shall include reserve accounts for capital expenditures

22  and deferred maintenance. These accounts shall include, but

23  are not limited to, structural repairs, roof replacement,

24  building painting, and pavement resurfacing, regardless of the

25  amount of deferred maintenance expense or replacement cost,

26  and for any other item for which the deferred maintenance

27  expense or replacement cost exceeds $10,000. The amount to be

28  reserved shall be computed by means of a formula which is

29  based upon estimated remaining useful life and estimated

30  replacement cost or deferred maintenance expense of each

31  reserve item.  The association may adjust replacement reserve

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 1  assessments annually to take into account any changes in

 2  estimates or extension of the useful life of a reserve item

 3  caused by deferred maintenance. This subsection does not apply

 4  to an adopted budget in which the members of an association

 5  have determined, by a majority vote at a duly called meeting

 6  of the association, to provide no reserves or less reserves

 7  than required by this subsection. However, prior to turnover

 8  of control of an association by a developer to unit owners

 9  other than a developer pursuant to s. 718.301, the developer

10  may vote to waive the reserves or reduce the funding of

11  reserves for the first 2 fiscal years of the association's

12  operation, beginning with the fiscal year in which the initial

13  declaration is recorded, after which time reserves may be

14  waived or reduced only upon the vote of a majority of all

15  nondeveloper voting interests voting in person or by limited

16  proxy at a duly called meeting of the association. If a

17  meeting of the unit owners has been called to determine

18  whether to waive or reduce the funding of reserves, and no

19  such result is achieved or a quorum is not attained, the

20  reserves as included in the budget shall go into effect. After

21  the turnover, the developer may vote its voting interest to

22  waive or reduce the funding of reserves.

23         3.  Reserve funds and any interest accruing thereon

24  shall remain in the reserve account or accounts, and shall be

25  used only for authorized reserve expenditures unless their use

26  for other purposes is approved in advance by a majority vote

27  at a duly called meeting of the association. Prior to turnover

28  of control of an association by a developer to unit owners

29  other than the developer pursuant to s. 718.301, the

30  developer-controlled association shall not vote to use

31  reserves for purposes other than that for which they were

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 1  intended without the approval of a majority of all

 2  nondeveloper voting interests, voting in person or by limited

 3  proxy at a duly called meeting of the association.

 4         4.  The only voting interests which are eligible to

 5  vote on questions that involve waiving or reducing the funding

 6  of reserves, or using existing reserve funds for purposes

 7  other than purposes for which the reserves were intended, are

 8  the voting interests of the units subject to assessment to

 9  fund the reserves in question. The face of all ballots that

10  involve questions relating to waiving or reducing the funding

11  of reserves, or using existing reserve funds for purposes

12  other than purposes for which the reserves were intended, must

13  contain the following statement in capitalized, bold letters

14  in a font size larger than any other used on the face of the

15  ballot: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING

16  ALTERNATE USES OF EXISTING RESERVES, MAY RESULT IN UNIT OWNER

17  LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS

18  REGARDING THOSE RESERVE ITEMS.

19         5.  A vote to provide for no reserves or a percentage

20  of reserves shall be made at the annual meeting of the unit

21  owners called under paragraph (d).

22         6.  Notwithstanding subparagraph 3., the association

23  after turnover of control of the association may, in case of a

24  catastrophic event, use reserve funds for nonscheduled

25  purposes to mitigate further damage to units or common

26  elements or to make the condominium accessible for repairs.

27         7.  Except in cases of emergency, or unless otherwise

28  provided for in the bylaws or approved by a vote of a majority

29  of the unit owners in advance, the board of administration may

30  not apply for or accept a loan or line of credit in an amount

31  

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 1  that exceeds 10 percent of the association's annual budget for

 2  the current year.

 3         (g)  Assessments.--After the declaration has been

 4  recorded, and until such time as the association has been

 5  created, all common expenses shall be paid by the developer.

 6  Assessments shall be levied in an amount determined by the

 7  adopted budget or an authorized special assessment. The manner

 8  of collecting from the unit owners their shares of the common

 9  expenses shall be stated in the bylaws. Assessments shall be

10  made against units on a quarter-annual, or more frequent,

11  basis not less frequently than quarterly in an amount which is

12  not less than that required to provide funds in advance for

13  payment of all of the anticipated current operating expenses

14  and for all of the unpaid operating expenses previously

15  incurred. Nothing in This paragraph does not shall preclude

16  the right of an association to accelerate assessments of an

17  owner delinquent in payment of common expenses against whom a

18  lien has been filed. Accelerated assessments shall be due and

19  payable after on the date the claim of lien is filed. Such

20  accelerated assessments shall include the amounts due for the

21  remainder of the budget year in which the claim of lien was

22  filed.

23         (h)  Amendment of bylaws.--

24         1.  The method by which the bylaws may be amended

25  consistent with the provisions of this chapter shall be

26  stated.  If the bylaws fail to provide a method of amendment,

27  the bylaws may be amended if the amendment is approved by the

28  owners of not less than two-thirds of the voting interests.

29         2.  No bylaw shall be revised or amended by reference

30  to its title or number only.  Proposals to amend existing

31  bylaws shall contain the full text of the bylaws to be

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 1  amended; new words shall be inserted in the text underlined,

 2  and words to be deleted shall be lined through with hyphens.

 3  However, if the proposed change is so extensive that this

 4  procedure would hinder, rather than assist, the understanding

 5  of the proposed amendment, it is not necessary to use

 6  underlining and hyphens as indicators of words added or

 7  deleted, but, instead, a notation must be inserted immediately

 8  preceding the proposed amendment in substantially the

 9  following language: "Substantial rewording of bylaw.  See

10  bylaw .... for present text."

11         3.  Nonmaterial errors or omissions in the bylaw

12  process will not invalidate an otherwise properly promulgated

13  amendment.

14         (i)  Transfer fees.--No charge shall be made by the

15  association or any body thereof in connection with the sale,

16  mortgage, lease, sublease, or other transfer of a unit unless

17  the association is required to approve such transfer and a fee

18  for such approval is provided for in the declaration,

19  articles, or bylaws. Any such fee may be preset, but in no

20  event may such fee exceed $100 per applicant other than

21  husband/wife or parent/dependent child, which are considered

22  one applicant.  However, if the lease or sublease is a renewal

23  of a lease or sublease with the same lessee or sublessee, no

24  charge shall be made.  The foregoing notwithstanding, an

25  association may, if the authority to do so appears in the

26  declaration or bylaws, require that a prospective lessee place

27  a security deposit, in an amount not to exceed the equivalent

28  of 1 month's rent, into an escrow account maintained by the

29  association.  The security deposit shall protect against

30  damages to the common elements or association property.

31  Payment of interest, claims against the deposit, refunds, and

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 1  disputes under this paragraph shall be handled in the same

 2  fashion as provided in part II of chapter 83.

 3         (j)  Recall of board members.--Subject to the

 4  provisions of s. 718.301, any member of the board of

 5  administration may be recalled and removed from office with or

 6  without cause by the vote or agreement in writing by a

 7  majority of all the voting interests. A special meeting of the

 8  unit owners to recall a member or members of the board of

 9  administration may be called by 10 percent of the voting

10  interests giving notice of the meeting as required for a

11  meeting of unit owners, and the notice shall state the purpose

12  of the meeting. Electronic transmission may not be used as a

13  method of giving notice of a meeting called in whole or in

14  part for this purpose.

15         1.  If the recall is approved by a majority of all

16  voting interests by a vote at a meeting, the recall will be

17  effective as provided herein. The board shall duly notice and

18  hold a board meeting within 5 full business days of the

19  adjournment of the unit owner meeting to recall one or more

20  board members. At the meeting, the board shall either certify

21  the recall, in which case such member or members shall be

22  recalled effective immediately and shall turn over to the

23  board within 5 full business days any and all records and

24  property of the association in their possession, or shall

25  proceed as set forth in subparagraph 3.

26         2.  If the proposed recall is by an agreement in

27  writing by a majority of all voting interests, the agreement

28  in writing or a copy thereof shall be served on the

29  association by certified mail or by personal service in the

30  manner authorized by chapter 48 and the Florida Rules of Civil

31  Procedure. The board of administration shall duly notice and

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 1  hold a meeting of the board within 5 full business days after

 2  receipt of the agreement in writing. At the meeting, the board

 3  shall either certify the written agreement to recall a member

 4  or members of the board, in which case such member or members

 5  shall be recalled effective immediately and shall turn over to

 6  the board within 5 full business days any and all records and

 7  property of the association in their possession, or proceed as

 8  described in subparagraph 3.

 9         3.  If the board determines not to certify the written

10  agreement to recall a member or members of the board, or does

11  not certify the recall by a vote at a meeting, the board

12  shall, within 5 full business days after the meeting, file

13  with the division a petition for arbitration pursuant to the

14  procedures in s. 718.1255. For the purposes of this section,

15  the unit owners who voted at the meeting or who executed the

16  agreement in writing shall constitute one party under the

17  petition for arbitration. If the arbitrator certifies the

18  recall as to any member or members of the board, the recall

19  will be effective upon mailing of the final order of

20  arbitration to the association. If the association fails to

21  comply with the order of the arbitrator, the division may take

22  action pursuant to s. 718.501. Any member or members so

23  recalled shall deliver to the board any and all records of the

24  association in their possession within 5 full business days of

25  the effective date of the recall.

26         4.  If the board fails to duly notice and hold a board

27  meeting within 5 full business days of service of an agreement

28  in writing or within 5 full business days of the adjournment

29  of the unit owner recall meeting, the recall shall be deemed

30  effective and the board members so recalled shall immediately

31  

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 1  turn over to the board any and all records and property of the

 2  association.

 3         5.  If a vacancy occurs on the board as a result of a

 4  recall and less than a majority of the board members are

 5  removed, the vacancy may be filled by the affirmative vote of

 6  a majority of the remaining directors, notwithstanding any

 7  provision to the contrary contained in this subsection. If

 8  vacancies occur on the board as a result of a recall and a

 9  majority or more of the board members are removed, the

10  vacancies shall be filled in accordance with procedural rules

11  to be adopted by the division, which rules need not be

12  consistent with this subsection. The rules must provide

13  procedures governing the conduct of the recall election as

14  well as the operation of the association during the period

15  after a recall but prior to the recall election.

16         (k)  Arbitration.--There shall be a provision for

17  mandatory nonbinding arbitration as provided for in s.

18  718.1255.

19         (k)(l)  Certificate of compliance.--There shall be a

20  provision that a certificate of compliance from a licensed

21  electrical contractor or electrician may be accepted by the

22  association's board as evidence of compliance of the

23  condominium units with the applicable fire and life safety

24  code. Notwithstanding the provisions of chapter 633 or of any

25  other code, statute, ordinance, administrative rule, or

26  regulation, or any interpretation of the foregoing, an

27  association, condominium, or unit owner is not obligated to

28  retrofit the common elements or units of a residential

29  condominium with a fire sprinkler system or other engineered

30  lifesafety system in a building that has been certified for

31  occupancy by the applicable governmental entity, if the unit

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 1  owners have voted to forego such retrofitting and engineered

 2  lifesafety system by the affirmative vote of two-thirds of all

 3  voting interests in the affected condominium. However, a

 4  condominium association may not vote to forego the

 5  retrofitting with a fire sprinkler system of common areas in a

 6  high-rise building. For purposes of this subsection, the term

 7  "high-rise building" means a building that is greater than 75

 8  feet in height where the building height is measured from the

 9  lowest level of fire department access to the floor of the

10  highest occupiable story. For purposes of this subsection, the

11  term "common areas" means any enclosed hallway, corridor,

12  lobby, stairwell, or entryway. In no event shall the local

13  authority having jurisdiction require completion of

14  retrofitting of common areas with a sprinkler system before

15  the end of 2014.

16         1.  A vote to forego retrofitting may be obtained by

17  limited proxy or by a ballot personally cast at a duly called

18  membership meeting, or by execution of a written consent by

19  the member, and shall be effective upon the recording of a

20  certificate attesting to such vote in the public records of

21  the county where the condominium is located. The association

22  shall mail, hand deliver, or electronically transmit to each

23  unit owner written notice at least 14 days prior to such

24  membership meeting in which the vote to forego retrofitting of

25  the required fire sprinkler system is to take place. Within 30

26  days after the association's opt-out vote, notice of the

27  results of the opt-out vote shall be mailed, hand delivered,

28  or electronically transmitted to all unit owners. Evidence of

29  compliance with this 30-day notice shall be made by an

30  affidavit executed by the person providing the notice and

31  filed among the official records of the association. After

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 1  such notice is provided to each owner, a copy of such notice

 2  shall be provided by the current owner to a new owner prior to

 3  closing and shall be provided by a unit owner to a renter

 4  prior to signing a lease.

 5         2.  As part of the information collected annually from

 6  condominiums, the division shall require condominium

 7  associations to report the membership vote and recording of a

 8  certificate under this subsection and, if retrofitting has

 9  been undertaken, the per-unit cost of such work. The division

10  shall annually report to the Division of State Fire Marshal of

11  the Department of Financial Services the number of

12  condominiums that have elected to forego retrofitting.

13         (l)(m)  Common elements; limited power to convey.--

14         1.  With respect to condominiums created on or after

15  October 1, 1994, the bylaws shall include a provision granting

16  the association a limited power to convey a portion of the

17  common elements to a condemning authority for the purpose of

18  providing utility easements, right-of-way expansion, or other

19  public purposes, whether negotiated or as a result of eminent

20  domain proceedings.

21         2.  In any case where the bylaws are silent as to the

22  association's power to convey common elements as described in

23  subparagraph 1., the bylaws shall be deemed to include the

24  provision described in subparagraph 1.

25         Section 5.  Section 718.113, Florida Statutes, is

26  amended to read:

27         718.113  Maintenance; limitation upon improvement;

28  display of flag; display of religious decorations; hurricane

29  shutters.--

30         (1)  Maintenance of the common elements is the

31  responsibility of the association. The declaration may provide

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 1  that certain limited common elements shall be maintained by

 2  those entitled to use the limited common elements or that the

 3  association shall provide the maintenance, either as a common

 4  expense or with the cost shared only by those entitled to use

 5  the limited common elements. If the maintenance is to be by

 6  the association at the expense of only those entitled to use

 7  the limited common elements, the declaration shall describe in

 8  detail the method of apportioning such costs among those

 9  entitled to use the limited common elements, and the

10  association may use the provisions of s. 718.116 to enforce

11  payment of the shares of such costs by the unit owners

12  entitled to use the limited common elements.

13         (2)(a)  Except as otherwise provided in this section,

14  there shall be no material alteration or substantial additions

15  to the common elements or to real property which is

16  association property, except in a manner provided in the

17  declaration as originally recorded or as amended under the

18  procedures provided therein.  If the declaration as originally

19  recorded or as amended under the procedures provided therein

20  does not specify the procedure for approval of material

21  alterations or substantial additions, 75 percent of the total

22  voting interests of the association must approve the

23  alterations or additions.

24         (b)  There shall not be any material alteration of, or

25  substantial addition to, the common elements of any

26  condominium operated by a multicondominium association unless

27  approved in the manner provided in the declaration of the

28  affected condominium or condominiums as originally recorded or

29  as amended under the procedures provided therein. If a

30  declaration as originally recorded or as amended under the

31  procedures provided therein does not specify a procedure for

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 1  approving such an alteration or addition, the approval of 75

 2  percent of the total voting interests of each affected

 3  condominium is required. This subsection does not prohibit a

 4  provision in any declaration, articles of incorporation, or

 5  bylaws as originally recorded or as amended under the

 6  procedures provided therein requiring the approval of unit

 7  owners in any condominium operated by the same association or

 8  requiring board approval before a material alteration or

 9  substantial addition to the common elements is permitted. This

10  paragraph is intended to clarify existing law and applies to

11  associations existing on the effective date of this act.

12         (c)  There shall not be any material alteration or

13  substantial addition made to association real property

14  operated by a multicondominium association, except as provided

15  in the declaration, articles of incorporation, or bylaws as

16  originally recorded or as amended under the procedures

17  provided therein. If the declaration, articles of

18  incorporation, or bylaws as originally recorded or as amended

19  under the procedures provided therein do not specify the

20  procedure for approving an alteration or addition to

21  association real property, the approval of 75 percent of the

22  total voting interests of the association is required. This

23  paragraph is intended to clarify existing law and applies to

24  associations existing on the effective date of this act.

25         (3)  A unit owner shall not do anything within his or

26  her unit or on the common elements which would adversely

27  affect the safety or soundness of the common elements or any

28  portion of the association property or condominium property

29  which is to be maintained by the association.

30         (4)  Any unit owner may display one portable, removable

31  United States flag in a respectful way and, on Armed Forces

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 1  Day, Memorial Day, Flag Day, Independence Day, and Veterans

 2  Day, may display in a respectful way portable, removable

 3  official flags, not larger than 4 1/2  feet by 6 feet, that

 4  represent the United States Army, Navy, Air Force, Marine

 5  Corps, or Coast Guard, regardless of any declaration rules or

 6  requirements dealing with flags or decorations.

 7         (5)  Each board of administration shall, at each annual

 8  meeting, adopt or restate hurricane shutter specifications for

 9  each building within each condominium operated by the

10  association which shall include color, style, and other

11  factors deemed relevant by the board. All specifications

12  adopted or restated by the board shall comply with the

13  applicable building code. Notwithstanding any provision to the

14  contrary in the condominium documents, if approval is required

15  by the documents, a board shall not refuse to approve the

16  installation or replacement of hurricane shutters conforming

17  to the specifications adopted by the board. The board may,

18  subject to the provisions of s. 718.3026, and the approval of

19  a majority of voting interests of the condominium, install

20  hurricane shutters or hurricane protection that complies with

21  the applicable building code, and may maintain, repair, or

22  replace such approved hurricane shutters, whether on or within

23  common elements, limited common elements, units, or

24  association property. However, where laminated glass or window

25  film architecturally designed to function as hurricane

26  protection which complies with the applicable building code

27  has been installed, the board may not install hurricane

28  shutters. The board may operate shutters installed pursuant to

29  this subsection without permission of the unit owners only

30  where such operation is necessary to preserve and protect the

31  condominium property and association property.  The

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 1  installation, replacement, operation, repair, and maintenance

 2  of such shutters in accordance with the procedures set forth

 3  herein shall not be deemed a material alteration to the common

 4  elements or association property within the meaning of this

 5  section.

 6         (6)  Every 5 years, the board of administration shall

 7  have the condominium buildings inspected by a professional

 8  engineer or professional architect registered in the state for

 9  the purposes of determining that the building is structurally

10  and electrically safe, and determining any immediate

11  maintenance required as well as any long term maintenance

12  necessary in the form of a long-term maintenance plan. The

13  long-term maintenance plan must include an executive summary

14  that shall be distributed to all unit owners. The engineer or

15  architect shall provide a report indicating the manner and

16  type of inspection forming the basis for the report and

17  description of any matters identified as requiring remedial

18  action. The report shall become an official record of the

19  association to be provided to the members upon request

20  pursuant to s. 718.111(12).

21         (7)  An association may not prohibit the attachment of

22  religious items at the door or at the entrance of a unit. The

23  board may adopt reasonable size restrictions for such items.

24         Section 6.  Section 718.1224, Florida Statutes, is

25  created to read:

26         718.1224  Prohibition against SLAPP suits.--

27         (1)  It is the intent of the Legislature to protect the

28  right of condominium unit owners to exercise their rights to

29  instruct their representatives and petition for redress of

30  grievances before the various governmental entities of this

31  state as protected by the First Amendment to the United States

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 1  Constitution and s. 5, Art. I of the State Constitution. The

 2  Legislature recognizes that strategic lawsuits against public

 3  participation, or "SLAPP" suits as they are typically referred

 4  to, have occurred when association members are sued by

 5  individuals, business entities, or governmental entities

 6  arising out of a condominium unit owner's appearance and

 7  presentation before a governmental entity on matters related

 8  to the condominium association. However, it is the public

 9  policy of this state that governmental entities, business

10  organizations, and individuals not to engage in SLAPP suits,

11  because such actions are inconsistent with the right of

12  condominium unit owners to participate in the state's

13  institutions of government. Therefore, the Legislature finds

14  and declares that prohibiting such lawsuits by governmental

15  entities, business entities, and individuals against

16  condominium unit owners who address matters concerning their

17  condominium association will preserve this fundamental state

18  policy, preserve the constitutional rights of condominium unit

19  owners, and ensure the continuation of representative

20  government in this state. It is the intent of the Legislature

21  that such lawsuits be expeditiously disposed of by the courts.

22  As used in this subsection, the term "governmental entity"

23  means the state, including the executive, legislative, and

24  judicial branches of government, the independent

25  establishments of the state, counties, municipalities,

26  districts, authorities, boards, or commissions, or any

27  agencies of these branches which are subject to chapter 286.

28         (2)  A governmental entity, business organization, or

29  individual in this state may not file or cause to be filed

30  through its employees or agents any lawsuit, cause of action,

31  claim, cross-claim, or counterclaim against a condominium unit

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 1  owner without merit and solely because such condominium unit

 2  owner has exercised the right to instruct his or her

 3  representatives or the right to petition for redress of

 4  grievances before the various governmental entities of this

 5  state, as protected by the First Amendment to the United

 6  States Constitution and s. 5, Art. I of the State

 7  Constitution.

 8         (3)  If a condominium unit owner is sued by a

 9  governmental entity, business organization, or individual in

10  violation of this section, the condominium unit owner has a

11  right to an expeditious resolution of a claim that the suit is

12  in violation of this section. A condominium unit owner may

13  petition the court for an order dismissing the action or

14  granting final judgment in favor of that condominium unit

15  owner. The condominium unit owner may file a motion for

16  summary judgment, together with supplemental affidavits,

17  seeking a determination that the governmental entity's,

18  business organization's, or individual's lawsuit has been

19  brought in violation of this section. The governmental entity,

20  business organization, or individual shall thereafter file its

21  response and any supplemental affidavits. As soon as

22  practicable, the court shall set a hearing on the condominium

23  unit owner's motion, which shall be held at the earliest

24  possible time after the filing of the governmental entity's,

25  business organization's or individual's response. The court

26  may award the condominium unit owner sued by the governmental

27  entity, business organization, or individual actual damages

28  arising from the governmental entity's, individual's, or

29  business organization's violation of this section. A court may

30  treble the damages awarded to a prevailing condominium unit

31  owner and shall state the basis for the treble damages award

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 1  in its judgment. The court shall award the prevailing party

 2  reasonable attorney's fees and costs incurred in connection

 3  with a claim that an action was filed in violation of this

 4  section.

 5         (4)  Condominium associations may not expend

 6  association funds in prosecuting a SLAPP suit against a

 7  condominium unit owner.

 8         Section 7.  Paragraphs (e) and (h) of subsection (4) of

 9  section 718.1255, Florida Statutes, are amended to read:

10         718.1255  Alternative dispute resolution; voluntary

11  mediation; mandatory nonbinding arbitration; legislative

12  findings.--

13         (4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF

14  DISPUTES.--The Division of Florida Land Sales, Condominiums,

15  and Mobile Homes of the Department of Business and

16  Professional Regulation shall employ full-time attorneys to

17  act as arbitrators to conduct the arbitration hearings

18  provided by this chapter. The division may also certify

19  attorneys who are not employed by the division to act as

20  arbitrators to conduct the arbitration hearings provided by

21  this section. No person may be employed by the department as a

22  full-time arbitrator unless he or she is a member in good

23  standing of The Florida Bar. The department shall promulgate

24  rules of procedure to govern such arbitration hearings

25  including mediation incident thereto.  The decision of an

26  arbitrator shall be final; however, such a decision shall not

27  be deemed final agency action. Nothing in this provision shall

28  be construed to foreclose parties from proceeding in a trial

29  de novo unless the parties have agreed that the arbitration is

30  binding. If such judicial proceedings are initiated, the final

31  

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 1  decision of the arbitrator shall be admissible in evidence in

 2  the trial de novo.

 3         (e)  Either before or after the filing of the

 4  respondents' answer to the petition, any party may request

 5  that the arbitrator refer the case to mediation under this

 6  section and any rules adopted by the division.  Upon receipt

 7  of a request for mediation, the division shall promptly refer

 8  the case contact the parties to determine if there is

 9  agreement that mediation would be appropriate.  If all parties

10  agree, the dispute must be referred to mediation.

11  Notwithstanding a lack of an agreement by all parties, The

12  arbitrator may refer a dispute to mediation at any time.

13         (h)  Mediation proceedings must generally be conducted

14  in accordance with the Florida Rules of Civil Procedure, and

15  these proceedings are privileged and confidential to the same

16  extent as court-ordered mediation. Persons who are not parties

17  to the dispute are not allowed to attend the mediation

18  conference without the consent of all parties, with the

19  exception of counsel for the parties and corporate

20  representatives designated to appear for a party.  If the

21  mediator declares an impasse after a mediation conference has

22  been held, the arbitration proceeding terminates, unless all

23  parties agree in writing to continue the arbitration

24  proceeding, in which case the arbitrator's decision shall be

25  either binding or nonbinding, as agreed upon by the parties;

26  in the arbitration proceeding, the arbitrator shall not

27  consider any evidence relating to the unsuccessful mediation

28  except in a proceeding to impose sanctions for failure to

29  appear at the mediation conference. If the parties do not

30  agree to continue arbitration, the arbitrator shall enter an

31  order of dismissal, and either party may institute a suit in a

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 1  court of competent jurisdiction.  The parties may seek to

 2  recover any costs and attorneys' fees incurred in connection

 3  with arbitration and mediation proceedings under this section

 4  as part of the costs and fees that may be recovered by the

 5  prevailing party in any subsequent litigation.

 6         Section 8.  Section 718.1257, Florida Statutes, is

 7  created to read:

 8         718.1257  Emotional-support animals.--

 9         (1)  Every unit owner or renter of a condominium unit

10  in this state has the right to own a companion animal and to

11  have such animal live with him or her in the condominium unit

12  if the companion animal is deemed helpful to the person's

13  physical or psychological well-being as attested to by at

14  least two qualified health care professionals.

15         (2)  Any municipal or county code or ordinance, or any

16  purported rule, declaration, by-law, or other form of

17  restriction contrary to the right provided in subsection (1)

18  contained in any governing document of any condominium

19  association shall be deemed unconscionable, and thus

20  unenforceable, invalid, and of no legal effect.

21         (3)  An animal does not require specialized training or

22  skill in assisting its owner to be classified as a companion

23  animal under this section. The animal can be a cat, dog,

24  ferret, bird, gerbil, or any other commonly accepted

25  domesticated animal. However, if such training can be

26  documented, a letter from only one qualified health care

27  professional is required, as per pre-existing federal

28  disability and fair housing laws.

29         (4)  Qualified health professionals include any

30  physician or advanced registered nurse practitioner who is

31  licensed in this state to prescribe medications for emotional

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 1  or mental conditions, or any mental health worker, mental

 2  health counselor, psychologist, or social worker who is

 3  licensed in this state to practice counseling therapy. The

 4  letter must say that the animal is necessary to ameliorate and

 5  help with life functions for a condition covered under the

 6  Americans with Disabilities Act. The letter does not have to

 7  give details of the nature of the unit owner's or renter's

 8  disorder, in order not to invade the patient's privacy per the

 9  Health Insurance Portability and Accountability Act. Where the

10  primary residence of the owner or renter is in another state,

11  the qualified health care professional is defined as a

12  qualified health care professional licensed in the owner's or

13  renter's home state.

14         (5)  If it becomes necessary for an owner or renter of

15  any condominium unit to enforce this section in court against

16  an association that has threatened, either orally or in

17  writing to limit his or her right to own and reside with a

18  companion animal, the unit owner or renter shall be entitled

19  to recover his or her reasonable costs and attorney's fees if

20  the unit owner or renter is the prevailing party. This

21  attorney's fee provision is not reciprocal.

22         Section 9.  Subsection (1) of section 718.302, Florida

23  Statutes, is amended to read:

24         718.302  Agreements entered into by the association.--

25         (1)  Any grant or reservation made by a declaration,

26  lease, or other document, and any contract made by an

27  association prior to assumption of control of the association

28  by unit owners other than the developer, that provides for

29  services, products, operation, maintenance, or management of a

30  condominium association or property serving the unit owners of

31  a condominium shall be fair and reasonable, and such grant,

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 1  reservation, or contract may be canceled by unit owners other

 2  than the developer:

 3         (a)  If the association operates only one condominium

 4  and the unit owners other than the developer have assumed

 5  control of the association, or if unit owners other than the

 6  developer own not less than 75 percent of the voting interests

 7  in the condominium, the cancellation shall be by concurrence

 8  of the owners of not less than 75 percent of the voting

 9  interests other than the voting interests owned by the

10  developer.  If a grant, reservation, or contract is so

11  canceled and the unit owners other than the developer have not

12  assumed control of the association, the association shall make

13  a new contract or otherwise provide for maintenance,

14  management, or operation in lieu of the canceled obligation,

15  at the direction of the owners of not less than a majority of

16  the voting interests in the condominium other than the voting

17  interests owned by the developer.

18         (b)  If the association operates more than one

19  condominium and the unit owners other than the developer have

20  not assumed control of the association, and if unit owners

21  other than the developer own at least 75 percent of the voting

22  interests in a condominium operated by the association, any

23  grant, reservation, or contract for maintenance, management,

24  or operation of buildings containing the units in that

25  condominium or of improvements used only by unit owners of

26  that condominium may be canceled by concurrence of the owners

27  of at least 75 percent of the voting interests in the

28  condominium other than the voting interests owned by the

29  developer.  No grant, reservation, or contract for

30  maintenance, management, or operation of recreational areas or

31  any other property serving more than one condominium, and

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 1  operated by more than one association, may be canceled except

 2  pursuant to paragraph (d).

 3         (c)  If the association operates more than one

 4  condominium and the unit owners other than the developer have

 5  assumed control of the association, the cancellation shall be

 6  by concurrence of the owners of not less than 75 percent of

 7  the total number of voting interests in all condominiums

 8  operated by the association other than the voting interests

 9  owned by the developer.

10         (d)  If the owners of units in a condominium have the

11  right to use property in common with owners of units in other

12  condominiums and those condominiums are operated by more than

13  one association, no grant, reservation, or contract for

14  maintenance, management, or operation of the property serving

15  more than one condominium may be canceled until unit owners

16  other than the developer have assumed control of all of the

17  associations operating the condominiums that are to be served

18  by the recreational area or other property, after which

19  cancellation may be effected by concurrence of the owners of

20  not less than 75 percent of the total number of voting

21  interests in those condominiums other than voting interests

22  owned by the developer.

23         Section 10.  Paragraphs (f) and (g) are added to

24  subsection (1) of section 718.3025, Florida Statutes, to read:

25         718.3025  Agreements for operation, maintenance, or

26  management of condominiums; specific requirements.--

27         (1)  No written contract between a party contracting to

28  provide maintenance or management services and an association

29  which contract provides for operation, maintenance, or

30  management of a condominium association or property serving

31  

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 1  the unit owners of a condominium shall be valid or enforceable

 2  unless the contract:

 3         (f)  Requires that all obligations under the contract

 4  be completed within a 1-year period.

 5         (g)  Contains a provision expressly prohibiting

 6  automatic renewal of the contract.

 7         Section 11.  Paragraph (a) of subsection (2) of section

 8  718.3026, Florida Statutes, is amended to read:

 9         718.3026  Contracts for products and services; in

10  writing; bids; exceptions.--Associations with less than 100

11  units may opt out of the provisions of this section if

12  two-thirds of the unit owners vote to do so, which opt-out may

13  be accomplished by a proxy specifically setting forth the

14  exception from this section.

15         (2)(a)1.  Notwithstanding the foregoing, contracts with

16  employees of the association, and contracts for attorney,

17  accountant, architect, community association manager,

18  timeshare management firm, engineering, and landscape

19  architect services are not subject to the provisions of this

20  section.

21         2.  A contract executed before January 1, 1992, and any

22  renewal thereof, is not subject to the competitive bid

23  requirements of this section. If a contract was awarded under

24  the competitive bid procedures of this section, any renewal of

25  that contract is not subject to such competitive bid

26  requirements if the contract contains a provision that allows

27  the board to cancel the contract on 30 days' notice.

28  Materials, equipment, or services provided to a condominium

29  under a local government franchise agreement by a franchise

30  holder are not subject to the competitive bid requirements of

31  this section.  A contract with a manager, if made by a

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 1  competitive bid, may be made for up to 3 years.  A condominium

 2  whose declaration or bylaws provides for competitive bidding

 3  for services may operate under the provisions of that

 4  declaration or bylaws in lieu of this section if those

 5  provisions are not less stringent than the requirements of

 6  this section.

 7         3.  A contract by and between a service provider and an

 8  association may not be for a term in excess of 3 years and may

 9  not contain an automatic renewal clause.

10         4.  A contract for construction or repair of the

11  property which exceeds 10 percent of the total annual budget

12  of the association, including reserves, shall occur under the

13  written advisement of an attorney.

14         Section 12.  Subsection (3) of section 718.303, Florida

15  Statutes, is amended, and subsection (4) is added to that

16  section, to read:

17         718.303  Obligations of owners; waiver; levy of fine

18  against unit by association.--

19         (3)  If the declaration or bylaws so provide, the

20  association may levy reasonable fines against a unit for the

21  failure of the owner of the unit, or its occupant, licensee,

22  or invitee, to comply with any provision of the declaration,

23  the association bylaws, or reasonable rules of the

24  association. No fine will become a lien against a unit.  No

25  fine may exceed $100 per violation.  However, a fine may be

26  levied on the basis of each day of a continuing violation,

27  with a single notice and opportunity for hearing, provided

28  that no such fine shall in the aggregate exceed $1,000.  No

29  fine may be levied except after giving reasonable notice and

30  opportunity for a hearing to the unit owner and, if

31  applicable, its licensee or invitee.  The hearing must be held

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 1  before a committee of other unit owners who are not members of

 2  the board of administration of the association.  If the

 3  committee does not agree with the fine, the fine may not be

 4  levied.  The provisions of this subsection do not apply to

 5  unoccupied units.

 6         (4)  Anyone subject to an action under this section

 7  shall be notified of the violation by certified mail, return

 8  receipt requested, and, except in the case of imminent danger

 9  to person or property, has 30 days in which to respond in

10  writing. If no response is provided and the violation

11  continues or is repeated, the association may proceed under

12  subsections (1) and (2) without further notice except as

13  provided in subsection (3).

14         Section 13.  Subsections (1) and (2) of section

15  718.404, Florida Statutes, are amended to read:

16         718.404  Mixed-use condominiums.--When a condominium

17  consists of both residential and commercial units, the

18  following provisions shall apply:

19         (1)  The condominium documents shall not provide that

20  the owner of any commercial unit shall have the authority to

21  veto amendments to the declaration, articles of incorporation,

22  bylaws, or rules or regulations of the association. It is

23  intended that this subsection apply retroactively as a

24  remedial measure.

25         (2)  Subject to s. 718.301, where the number of

26  residential units in the condominium equals or exceeds 50

27  percent of the total units operated by the association, owners

28  of the residential units shall be entitled to vote for a

29  majority of the seats on the board of administration. It is

30  intended that this subsection apply retroactively as a

31  remedial measure.

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 1         Section 14.  Paragraphs (e) and (j) of subsection (1)

 2  of section 718.501, Florida Statutes, are amended, and

 3  paragraph (n) is added to that subsection, to read:

 4         718.501  Powers and duties of Division of Florida Land

 5  Sales, Condominiums, and Mobile Homes.--

 6         (1)  The Division of Florida Land Sales, Condominiums,

 7  and Mobile Homes of the Department of Business and

 8  Professional Regulation, referred to as the "division" in this

 9  part, in addition to other powers and duties prescribed by

10  chapter 498, has the power to enforce and ensure compliance

11  with the provisions of this chapter and rules promulgated

12  pursuant hereto relating to the development, construction,

13  sale, lease, ownership, operation, and management of

14  residential condominium units. In performing its duties, the

15  division has the following powers and duties:

16         (e)  The division shall is authorized to prepare and

17  disseminate a prospectus and other information to assist

18  prospective owners, purchasers, lessees, and developers of

19  residential condominiums in assessing the rights, privileges,

20  and duties pertaining thereto.

21         (j)  The division shall provide training programs for

22  condominium association board members and unit owners in

23  conjunction with the recommendations of the ombudsman, at the

24  associations' expense.

25         (n)  Upon a finding that any association has committed

26  a violation within the jurisdiction of the division, the

27  division shall require the association to mail and post a

28  notice to all unit owners setting forth the facts and findings

29  relative to any and all violations, as well as a description

30  of the corrective action required.

31  

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 1         Section 15.  Subsection (1) of section 718.5011,

 2  Florida Statutes, is amended to read:

 3         718.5011  Ombudsman; appointment; administration.--

 4         (1)  There is created an Office of the Condominium

 5  Ombudsman, to be located, solely for administrative purposes,

 6  within the Division of Florida Land Sales, Condominiums, and

 7  Mobile Homes. The ombudsman shall exercise his or her

 8  policymaking and other functions delegated by this chapter

 9  independently of the Department of Business and Professional

10  Regulation and without approval or control of the department.

11  The department shall render administrative support to the

12  Office of the Condominium Ombudsman in matters pertaining to

13  budget, personnel, office space, equipment, and supplies. The

14  functions of the office shall be funded by the Division of

15  Florida Land Sales, Condominiums, and Mobile Homes Trust Fund.

16  The ombudsman shall be a bureau chief of the division, and the

17  office shall be set within the division in the same manner as

18  any other bureau is staffed and funded.

19         Section 16.  Section 718.5012, Florida Statutes, is

20  amended to read:

21         718.5012  Ombudsman; powers and duties.--

22         (1)  The ombudsman shall have the powers that are

23  necessary to carry out the duties of his or her office,

24  including the following specific powers:

25         (a)(1)  To have access to and use of all files and

26  records of the division.

27         (b)(2)  To employ professional and clerical staff as

28  necessary for the efficient operation of the office.

29         (c)(3)  To prepare and issue reports and

30  recommendations to the Governor, the department, the division,

31  the Advisory Council on Condominiums, the President of the

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 1  Senate, and the Speaker of the House of Representatives on any

 2  matter or subject within the jurisdiction of the division. The

 3  ombudsman shall make recommendations he or she deems

 4  appropriate for legislation relative to division procedures,

 5  rules, jurisdiction, personnel, and functions.

 6         (d)(4)  To act as liaison between the division, unit

 7  owners, boards of directors, board members, community

 8  association managers, and other affected parties. The

 9  ombudsman shall develop policies and procedures to assist unit

10  owners, boards of directors, board members, community

11  association managers, and other affected parties to understand

12  their rights and responsibilities as set forth in this chapter

13  and the condominium documents governing their respective

14  association. The ombudsman shall coordinate and assist in the

15  preparation and adoption of educational and reference

16  material, and shall endeavor to coordinate with private or

17  volunteer providers of these services, so that the

18  availability of these resources is made known to the largest

19  possible audience.

20         (e)(5)  To monitor and review procedures and disputes

21  concerning condominium elections or meetings, including, but

22  not limited to, recommending that the division pursue

23  enforcement action in any manner where there is reasonable

24  cause to believe that election misconduct has occurred.

25         (f)(6)  To make recommendations to the division for

26  changes in rules and procedures for the filing, investigation,

27  and resolution of complaints filed by unit owners,

28  associations, and managers.

29         (g)(7)  To provide resources to assist members of

30  boards of directors and officers of associations to carry out

31  their powers and duties consistent with this chapter, division

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 1  rules, and the condominium documents governing the

 2  association.

 3         (h)(8)  To order, encourage, and facilitate voluntary

 4  meetings with and between unit owners, boards of directors,

 5  board members, community association managers, and other

 6  affected parties when the meetings may assist in resolving a

 7  dispute within a community association before a person submits

 8  a dispute for a formal or administrative remedy. It is the

 9  intent of the Legislature that the ombudsman act as a neutral

10  resource for both the rights and responsibilities of unit

11  owners, associations, and board members.

12         (2)(9)  Fifteen percent of the total voting interests

13  in a condominium association, or six unit owners, whichever is

14  greater, may petition the ombudsman to appoint an election

15  monitor to attend the annual meeting of the unit owners and

16  conduct the election of directors. The ombudsman shall appoint

17  a division employee, a person or persons specializing in

18  condominium election monitoring, or an attorney licensed to

19  practice in this state as the election monitor. All costs

20  associated with the election monitoring process shall be paid

21  by the association. The division shall adopt a rule

22  establishing procedures for the appointment of election

23  monitors and the scope and extent of the monitor's role in the

24  election process.

25         (3)  Any unit owner or association acting in good faith

26  on the advice or opinion of the office of the ombudsman is

27  immune from any penalties or actions.

28         Section 17.  Subsection (21) of section 718.504,

29  Florida Statutes, is amended to read:

30         718.504  Prospectus or offering circular.--Every

31  developer of a residential condominium which contains more

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 1  than 20 residential units, or which is part of a group of

 2  residential condominiums which will be served by property to

 3  be used in common by unit owners of more than 20 residential

 4  units, shall prepare a prospectus or offering circular and

 5  file it with the Division of Florida Land Sales, Condominiums,

 6  and Mobile Homes prior to entering into an enforceable

 7  contract of purchase and sale of any unit or lease of a unit

 8  for more than 5 years and shall furnish a copy of the

 9  prospectus or offering circular to each buyer.  In addition to

10  the prospectus or offering circular, each buyer shall be

11  furnished a separate page entitled "Frequently Asked Questions

12  and Answers," which shall be in accordance with a format

13  approved by the division and a copy of the financial

14  information required by s. 718.111.  This page shall, in

15  readable language, inform prospective purchasers regarding

16  their voting rights and unit use restrictions, including

17  restrictions on the leasing of a unit; shall indicate whether

18  and in what amount the unit owners or the association is

19  obligated to pay rent or land use fees for recreational or

20  other commonly used facilities; shall contain a statement

21  identifying that amount of assessment which, pursuant to the

22  budget, would be levied upon each unit type, exclusive of any

23  special assessments, and which shall further identify the

24  basis upon which assessments are levied, whether monthly,

25  quarterly, or otherwise; shall state and identify any court

26  cases in which the association is currently a party of record

27  in which the association may face liability in excess of

28  $100,000; and which shall further state whether membership in

29  a recreational facilities association is mandatory, and if so,

30  shall identify the fees currently charged per unit type.  The

31  division shall by rule require such other disclosure as in its

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 1  judgment will assist prospective purchasers. The prospectus or

 2  offering circular may include more than one condominium,

 3  although not all such units are being offered for sale as of

 4  the date of the prospectus or offering circular.  The

 5  prospectus or offering circular must contain the following

 6  information:

 7         (21)  An estimated operating budget for the condominium

 8  and the association, and a schedule of the unit owner's

 9  expenses shall be attached as an exhibit and shall contain the

10  following information:

11         (a)  The estimated monthly and annual revenues and

12  expenses of the condominium and the association which that are

13  earned by the association or collected from unit owners by

14  assessments.

15         (b)  The estimated monthly and annual expenses of each

16  unit owner for a unit, other than common expenses paid by all

17  unit owners, payable by the unit owner to persons or entities

18  other than the association, as well as to the association,

19  including fees assessed pursuant to s. 718.113(1) for

20  maintenance of limited common elements where such costs are

21  shared only by those entitled to use the limited common

22  element, and the total estimated monthly and annual expense.

23  There may be excluded from this estimate expenses which are

24  not provided for or contemplated by the condominium documents,

25  including, but not limited to, the costs of private telephone;

26  maintenance of the interior of condominium units, which is not

27  the obligation of the association; maid or janitorial services

28  privately contracted for by the unit owners; utility bills

29  billed directly to each unit owner for utility services to his

30  or her unit; insurance premiums other than those incurred for

31  policies obtained by the condominium; and similar personal

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 1  expenses of the unit owner. A unit owner's estimated payments

 2  for assessments shall also be stated in the estimated amounts

 3  for the times when they will be due.

 4         (c)  The estimated items of expenses of the condominium

 5  and the association, except as excluded under paragraph (b),

 6  including, but not limited to, the following items, which

 7  shall be stated either as an association expense collectible

 8  by assessments or as unit owners' expenses payable to persons

 9  other than the association:

10         1.  Expenses for the association and condominium:

11         a.  Administration of the association.

12         b.  Management fees.

13         c.  Maintenance.

14         d.  Rent for recreational and other commonly used

15  facilities.

16         e.  Taxes upon association property.

17         f.  Taxes upon leased areas.

18         g.  Insurance.

19         h.  Security provisions.

20         i.  Other expenses.

21         j.  Operating capital.

22         k.  Reserves.

23         l.  Fees payable to the division.

24         2.  Expenses for a unit owner:

25         a.  Rent for the unit, if subject to a lease.

26         b.  Rent payable by the unit owner directly to the

27  lessor or agent under any recreational lease or lease for the

28  use of commonly used facilities, which use and payment is a

29  mandatory condition of ownership and is not included in the

30  common expense or assessments for common maintenance paid by

31  the unit owners to the association.

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 1         (d)  The estimated amounts shall be stated for a period

 2  of at least 12 months and may distinguish between the period

 3  prior to the time unit owners other than the developer elect a

 4  majority of the board of administration and the period after

 5  that date.

 6         Section 18.  Subsections (6) and (7) of section

 7  720.303, Florida Statutes, are amended to read:

 8         720.303  Association powers and duties; meetings of

 9  board; official records; budgets; financial reporting;

10  association funds; recalls.--

11         (6)  BUDGETS.--

12         (a)  The association shall prepare an annual budget

13  that sets out the annual operating expenses. The budget must

14  reflect the estimated revenues and expenses for that year and

15  the estimated surplus or deficit as of the end of the current

16  year. The budget must set out separately all fees or charges

17  paid for by the association for recreational amenities,

18  whether owned by the association, the developer, or another

19  person. The association shall provide each member with a copy

20  of the annual budget or a written notice that a copy of the

21  budget is available upon request at no charge to the member.

22  The copy must be provided to the member within the time limits

23  set forth in subsection (5).

24         (b)  In addition to annual operating expenses, the

25  budget may include reserve accounts for capital expenditures

26  and deferred maintenance for which the association is

27  responsible to the extent that the governing documents do not

28  limit increases in assessments, including reserves. If the

29  budget of the association includes reserve accounts, such

30  reserves shall be determined, maintained, and waived in the

31  manner provided in this subsection. Once an association

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 1  provides for reserve accounts in the budget, the association

 2  shall thereafter determine, maintain, and waive reserves in

 3  compliance with the provisions of this subsection.

 4         (c)  If the budget of the association does not provide

 5  for reserve accounts governed by this subsection and the

 6  association is responsible for the repair and maintenance of

 7  capital improvements that may result in a special assessment

 8  if reserves are not provided, each financial report for the

 9  preceding fiscal year required by subsection (7) must contain

10  the following statement in conspicuous type: THE BUDGET OF THE

11  ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL

12  EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN

13  SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE

14  ACCOUNTS UNDER THE PROVISIONS OF SECTION 720.303(6), FLORIDA

15  STATUTES, UPON THE APPROVAL OF NOT LESS THAN A MAJORITY OF THE

16  TOTAL VOTING INTERESTS OF THE ASSOCIATION.

17         (d)  An association is deemed to have provided for

18  reserve accounts when reserve accounts have been initially

19  established by the developer or when the membership of the

20  association affirmatively elects to provide for reserves. If

21  reserve accounts are not initially provided for by the

22  developer, the membership of the association may elect to do

23  so upon the affirmative approval of not less than a majority

24  of the total voting interests of the association. The approval

25  may be attained by vote of the members at a duly called

26  meeting of the membership or upon a written consent executed

27  by not less than a majority of the total voting interests in

28  the community. The approval action of the membership shall

29  state that reserve accounts shall be provided for in the

30  budget and designate the components for which the reserve

31  accounts are to be established. Upon approval by the

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 1  membership, the board of directors shall provide for the

 2  required reserve accounts for inclusion in the budget in the

 3  next fiscal year following the approval and in each year

 4  thereafter. Once established as provided in this subsection,

 5  the reserve accounts shall be funded or maintained or shall

 6  have their funding waived in the manner provided in paragraph

 7  (f).

 8         (e)  The amount to be reserved in any account

 9  established shall be computed by means of a formula that is

10  based upon estimated remaining useful life and estimated

11  replacement cost or deferred maintenance expense of each

12  reserve item. The association may adjust replacement reserve

13  assessments annually to take into account any changes in

14  estimates of cost or useful life of a reserve item.

15         (f)  Once a reserve account or reserve accounts are

16  established, the membership of the association, upon a

17  majority vote at a meeting at which a quorum is present, may

18  provide for no reserves or less reserves than required by this

19  section. If a meeting of the unit owners is called to

20  determine whether to waive or reduce the funding of reserves

21  and no such result is achieved or a quorum is not present, the

22  reserves as included in the budget shall go into effect. After

23  the turnover, the developer may vote its voting interest to

24  waive or reduce the funding of reserves. Any vote taken under

25  this subsection to waive or reduce reserves shall be

26  applicable only to one budget year.

27         (g)  Funding formulas for reserves authorized by this

28  section shall be based on either a separate analysis of each

29  of the required assets or a pooled analysis of two or more of

30  the required assets.

31  

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 1         1.  If the association maintains separate reserve

 2  accounts for each of the required assets, the amount of the

 3  contribution to each reserve account shall be the sum of the

 4  following two calculations:

 5         a.  The total amount necessary, if any, to bring a

 6  negative component balance to zero.

 7         b.  The total estimated deferred maintenance expense or

 8  estimated replacement cost of the reserve component less the

 9  estimated balance of the reserve component as of the beginning

10  of the period for which the budget will be in effect. The

11  remainder, if greater than zero, shall be divided by the

12  estimated remaining useful life of the component.

13  

14  The formula may be adjusted each year for changes in estimates

15  and deferred maintenance performed during the year and may

16  include factors such as inflation and earnings on invested

17  funds.

18         2.  If the association maintains a pooled account of

19  two or more of the required reserve assets, the amount of the

20  contribution to the pooled reserve account as disclosed on the

21  proposed budget may not be less than that required to ensure

22  that the balance at the beginning of the period for which the

23  budget will go into effect plus the projected annual cash

24  inflows over the remaining estimated useful life of all of the

25  assets that make up the reserve pool are equal to or greater

26  than the projected annual cash outflows over the remaining

27  estimated useful lives of all of the assets that make up the

28  reserve pool, based on the current reserve analysis. The

29  projected annual cash inflows may include estimated earnings

30  from investment of principal. The reserve funding formula may

31  not include any type of balloon payments.

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 1         (h)  Reserve funds and any interest accruing thereon

 2  shall remain in the reserve account or accounts and shall be

 3  used only for authorized reserve expenditures unless their use

 4  for other purposes is approved in advance by a majority vote

 5  at a meeting at which a quorum is present. Prior to turnover

 6  of control of an association by a developer to parcel owners,

 7  the developer-controlled association may not vote to use

 8  reserves for purposes other than those for which they were

 9  intended without the approval of a majority of all

10  nondeveloper voting interests voting in person or by limited

11  proxy at a duly called meeting of the association.

12         (7)  FINANCIAL REPORTING.--Within 90 days after the end

13  of the fiscal year, or annually on a date provided in the

14  bylaws, the association shall prepare and complete, or

15  contract with a third party for the preparation and completion

16  of, a financial report for the preceding fiscal year. Within

17  21 days after the final financial report is completed by the

18  association or received from the third party, but not later

19  than 120 days after the end of the fiscal year or other date

20  as provided in the bylaws, the association shall prepare an

21  annual financial report within 60 days after the close of the

22  fiscal year. The association shall, within the time limits set

23  forth in subsection (5), provide each member with a copy of

24  the annual financial report or a written notice that a copy of

25  the financial report is available upon request at no charge to

26  the member. Financial reports shall be prepared as follows:

27         (a)  An association that meets the criteria of this

28  paragraph shall prepare or cause to be prepared a complete set

29  of financial statements in accordance with generally accepted

30  accounting principles as adopted by the Board of Accountancy.

31  

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 1  The financial statements shall be based upon the association's

 2  total annual revenues, as follows:

 3         1.  An association with total annual revenues of

 4  $100,000 or more, but less than $200,000, shall prepare

 5  compiled financial statements.

 6         2.  An association with total annual revenues of at

 7  least $200,000, but less than $400,000, shall prepare reviewed

 8  financial statements.

 9         3.  An association with total annual revenues of

10  $400,000 or more shall prepare audited financial statements.

11         (b)1.  An association with total annual revenues of

12  less than $100,000 shall prepare a report of cash receipts and

13  expenditures.

14         2.  An association in a community of fewer than 50

15  parcels, regardless of the association's annual revenues, may

16  prepare a report of cash receipts and expenditures in lieu of

17  financial statements required by paragraph (a) unless the

18  governing documents provide otherwise.

19         3.  A report of cash receipts and disbursement must

20  disclose the amount of receipts by accounts and receipt

21  classifications and the amount of expenses by accounts and

22  expense classifications, including, but not limited to, the

23  following, as applicable: costs for security, professional,

24  and management fees and expenses; taxes; costs for recreation

25  facilities; expenses for refuse collection and utility

26  services; expenses for lawn care; costs for building

27  maintenance and repair; insurance costs; administration and

28  salary expenses; and reserves if maintained by the

29  association.

30         (c)  If 20 percent of the parcel owners petition the

31  board for a level of financial reporting higher than that

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 1  required by this section, the association shall duly notice

 2  and hold a meeting of members within 30 days of receipt of the

 3  petition for the purpose of voting on raising the level of

 4  reporting for that fiscal year. Upon approval of a majority of

 5  the total voting interests of the parcel owners, the

 6  association shall prepare or cause to be prepared, shall amend

 7  the budget or adopt a special assessment to pay for the

 8  financial report regardless of any provision to the contrary

 9  in the governing documents, and shall provide within 90 days

10  of the meeting or the end of the fiscal year, whichever occurs

11  later:

12         1.  Compiled, reviewed, or audited financial

13  statements, if the association is otherwise required to

14  prepare a report of cash receipts and expenditures;

15         2.  Reviewed or audited financial statements, if the

16  association is otherwise required to prepare compiled

17  financial statements; or

18         3.  Audited financial statements if the association is

19  otherwise required to prepare reviewed financial statements.

20         (d)  If approved by a majority of the voting interests

21  present at a properly called meeting of the association, an

22  association may prepare or cause to be prepared:

23         1.  A report of cash receipts and expenditures in lieu

24  of a compiled, reviewed, or audited financial statement;

25         2.  A report of cash receipts and expenditures or a

26  compiled financial statement in lieu of a reviewed or audited

27  financial statement; or

28         3.  A report of cash receipts and expenditures, a

29  compiled financial statement, or a reviewed financial

30  statement in lieu of an audited financial statement.

31  

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 1         Section 19.  Section 720.307, Florida Statutes, is

 2  amended to read:

 3         720.307  Transition of association control in a

 4  community.--With respect to homeowners' associations:

 5         (1)  Members other than the developer are entitled to

 6  elect at least a majority of the members of the board of

 7  directors of the homeowners' association when the earlier of

 8  the following events occurs:

 9         (a)  Three months after 75 90 percent of the parcels in

10  all phases of the community that will ultimately be operated

11  by the homeowners' association have been conveyed to members;

12  or

13         (b)  Such other percentage of the parcels has been

14  conveyed to members, or such other date or event has occurred,

15  as is set forth in the governing documents in order to comply

16  with the requirements of any governmentally chartered entity

17  with regard to the mortgage financing of parcels.

18  

19  For purposes of this section, the term "members other than the

20  developer" shall not include builders, contractors, or others

21  who purchase a parcel for the purpose of constructing

22  improvements thereon for resale.

23         (2)  The developer is entitled to elect at least one

24  member of the board of directors of the homeowners'

25  association as long as the developer holds for sale in the

26  ordinary course of business at least 5 percent of the parcels

27  in all phases of the community. After the developer

28  relinquishes control of the homeowners' association, the

29  developer may exercise the right to vote any developer-owned

30  voting interests in the same manner as any other member,

31  except for purposes of reacquiring control of the homeowners'

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 1  association or selecting the majority of the members of the

 2  board of directors.

 3         (3)  Prior to turnover, the developer or owner of all

 4  common areas shall convey the title to all common areas to the

 5  association immediately upon incorporation of the association.

 6  If additional common areas are acquired prior to transition of

 7  control and subject to the governing documents, title to those

 8  common areas shall also be immediately transferred to the

 9  association.

10         (4)(3)  At the time the members are entitled to elect

11  at least a majority of the board of directors of the

12  homeowners' association, the developer shall, at the

13  developer's expense, within no more than 90 days deliver the

14  following documents to the board:

15         (a)  All deeds to common property owned by the

16  association or the developer.

17         (b)  The original of the association's declarations of

18  covenants and restrictions.

19         (c)  A certified copy of the articles of incorporation

20  of the association.

21         (d)  A copy of the bylaws.

22         (e)  The minute books, including all minutes.

23         (f)  The books and records of the association.

24         (g)  Policies, rules, and regulations, if any, which

25  have been adopted.

26         (h)  Resignations of directors who are required to

27  resign because the developer is required to relinquish control

28  of the association.

29         (i)  The financial records of the association from the

30  date of incorporation through the date of turnover.

31         (j)  All association funds and control thereof.

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 1         (k)  All tangible property of the association.

 2         (l)  A copy of all contracts which may be in force with

 3  the association as one of the parties.

 4         (m)  A list of the names and addresses and telephone

 5  numbers of all contractors, subcontractors, or others in the

 6  current employ of the association.

 7         (n)  Any and all insurance policies in effect.

 8         (o)  Any permits issued to the association by

 9  governmental entities.

10         (p)  Any and all warranties in effect.

11         (q)  A roster of current homeowners and their addresses

12  and telephone numbers and section and lot numbers.

13         (r)  Employment and service contracts in effect.

14         (s)  All other contracts and agreements in effect to

15  which the association is a party.

16         (t)  The financial records, including financial

17  statements of the association, and source documents from the

18  incorporation of the association through the date of turnover.

19  The records shall be audited by an independent certified

20  public accountant for the period of the incorporation of the

21  association or for the period covered by the last audit, if an

22  audit has been performed for each fiscal year since

23  incorporation. All financial statements shall be prepared in

24  accordance with generally accepted accounting standards and

25  shall be audited in accordance with generally accepted

26  auditing standards as prescribed by the Board of Accountancy.

27  The accountant performing the review shall examine to the

28  extent necessary supporting documents and records, including

29  the cash disbursements and related paid invoices to determine

30  whether expenditures were for association purposes, and the

31  billings, cash receipts, and related records to determine

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 1  whether the developer was charged and paid the proper amounts

 2  of assessments. This paragraph applies to associations with a

 3  date of incorporation after December 31, 2007.

 4         (5)(4)  This section applies to any mandatory

 5  homeowner's association existing under this chapter does not

 6  apply to a homeowners' association in existence on the

 7  effective date of this act, or to a homeowners' association,

 8  no matter when created, if such association is created in a

 9  community that is included in an effective

10  development-of-regional-impact development order as of the

11  effective date of this act, together with any approved

12  modifications thereof.

13         Section 20.  Subsection (5) is added to section

14  720.3075, Florida Statutes, to read:

15         720.3075  Prohibited clauses in association

16  documents.--

17         (5)(a)  An association may not restrict a homeowner

18  from mounting or employing shutters or other hurricane

19  protection on any portion of the home.

20         (b)  Except as provided in paragraph (c), an

21  association may not restrict a homeowner from mounting or

22  employing temporary or permanent shutters or other hurricane

23  protection on any portion of the home during any time that a

24  hurricane warning has been declared, during any time when an

25  evacuation order has been given, or for the following period

26  after conclusion of the hurricane watch or evacuation order:

27         1.  Seven days; or

28         2.  Fourteen days if the hurricane watch concerns a

29  category 4 storm or greater or if the evacuation order lasts

30  more than 3 days.

31  

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 1         (c)  If a local government restricts homeowners'

 2  mounting or employing temporary or permanent shutters or other

 3  hurricane protection, the local government may also authorize

 4  associations to adopt and enforce equal or lesser

 5  restrictions.

 6         (d)  Except as provided in paragraph (c) or paragraph

 7  (e), an association may not restrict a homeowner from mounting

 8  or employing permanent shutters or other hurricane protection

 9  on any portion of the home.

10         (e)  If the association otherwise properly adopts

11  restrictions governing color or form of shutters or other

12  permanent exterior window coverings, the association may adopt

13  and enforce equal or lesser restrictions that apply to

14  permanent exterior hurricane protections.

15         (f)  An association may not restrict the time or

16  duration for shutters or other hurricane protection to be open

17  or closed during any period and may not restrict homeowners

18  from mounting or employing temporary shutters or other

19  hurricane protection on any portion of the home.

20         Section 21.  Notwithstanding any provision to the

21  contrary contained in a declaration of condominium,

22  condominium bylaws, or other documents, a condominium

23  developer who rents or leases any unsold units in a

24  condominium must pay all monthly maintenance fees on those

25  units to the association as if the units were owned by

26  individual owners.

27         Section 22.  This act shall take effect July 1, 2007.

28  

29  

30  

31  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2816

 3                                 

 4  The Committee Substitute (CS) deletes the amendments to ch.
    190. F.S.
 5  
    The committee substitute deletes provisions that created a new
 6  regulatory division within the Department of Business and
    Professional Regulation to be named the Division of Mandated
 7  Properties, renamed the Florida Division of Land Sales,
    Condominiums, and Mobile Homes, and created an Advisory
 8  Council on Mandated Properties.

 9  The committee substitute creates a provision that provides
    that unit owners or renters of a condominium have the right to
10  own a companion animal if the animal is deemed helpful to the
    person's physical or psychological well-being as attested by
11  at least two qualified health care professionals.

12  It provides that anyone subject to an action under s.
    718.3026, F.S., must be notified by certified mail, return
13  receipt requested and has 30 days to respond in writing,
    except in the case of imminent danger to person or property.
14  
    It requires that the reporting requirements for condominium
15  association records can not be waived for more than two years.

16  It requires that five members of a condominium association
    board be unit owners.
17  
    It deletes the amendment that limited the condominium
18  association to contracting for basic cable TV service when the
    service is charged as a common expense.
19  
    It deletes the provision that was created to protect unit
20  owners from abuse.

21  It deletes the amendment that required one fifth of all fees
    deposited to the division's trust fund be allocated to the
22  Condominium Ombudsman's office.

23  It makes changes to the maintenance requirements of limited
    common elements, requires the board to restate hurricane
24  shutter specifications at each annual meeting, have the
    condominium building inspected every five years by a
25  professional engineer or architect and prohibits rules that
    fail to accommodate reasonable religious practices.
26  
    It provides for retroactive application prohibiting owners of
27  any commercial unit to have veto authority on amendments to
    the declaration, articles of incorporation, bylaws, or rules
28  or regulations of the association.

29  It lowers the percentage of sell-out of the association from
    the developer to the homeowners that triggers turnover from 90
30  percent to 75 percent.

31  It deletes the amendmentss to ss. 720.301, 302, 304, 305,
    3055, 306, 307.3071, 3081 and 401, F.S.
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