CS/HB 923

1
A bill to be entitled
2An act relating to the Home Court Advantage Pilot Program;
3creating part IV of chapter 720, F.S.; creating s.
4720.501, F.S.; providing legislative intent; creating s.
5720.502, F.S.; providing definitions; creating s. 720.503,
6F.S.; requiring the adoption of certain rules and
7procedures by the Division of Florida Land Sales,
8Condominiums, and Mobile Homes for the establishment of a
9pilot nonbinding arbitration program in Hillsborough
10County and Pinellas County; requiring the division to
11submit a report to the President of the Senate, the
12Speaker of the House of Representatives, and the minority
13leader of each house of the Legislature regarding the
14pilot program; creating s. 720.504, F.S.; providing for
15jurisdiction; authorizing the filing of a dispute;
16authorizing a parcel owner or homeowners' association to
17commence a proceeding; creating s 720.505, F.S.; providing
18procedures for the filing of a complaint; requiring a
19filing fee; creating s. 720.506, F.S.; providing
20qualifications for arbitrators; providing duties and
21responsibilities of arbitrators during arbitration
22proceedings; providing compensation for arbitrators;
23creating s. 720.507, F.S.; providing proceedings for
24appeal; providing a code of ethics for arbitrators;
25authorizing the award of costs and attorney's fees;
26providing for an additional award to a prevailing member
27representing the member's responsibility for the pro rata
28cost of the homeowners' association's costs of the
29arbitration; providing an effective date.
30
31Be It Enacted by the Legislature of the State of Florida:
32
33     Section 1.  Part IV of chapter 720, Florida Statutes,
34consisting of sections 720.501, 720.502, 720.503, 720.504,
35720.505, 720.506, and 720.507, is created and entitled "Home
36Court Advantage Pilot Program."
37     Section 2.  Section 720.501, Florida statutes, is created
38to read:
39     720.501  Legislative intent.--It is the intent of the
40Legislature to establish the Home Court Advantage Pilot Program
41as a pilot program in Hillsborough and Pinellas Counties for a
42period of 2 years, commencing with petitions filed on or after
43January 1, 2008, and before December 31, 2009. The purpose of
44the Home Court Advantage Pilot Program is to establish an
45inexpensive, expedient, and simplified court procedure as an
46independent venue in which certain community associations and
47parcel owners can informally resolve disputes relating to
48covenants and restrictions without having to resort to
49potentially time-consuming and expensive court litigation. The
50Home Court Advantage Pilot Program shall consist of a mandatory,
51nonbinding arbitration process as described in this part, and
52the Home Court Advantage Pilot Program shall be implemented and
53administered by the Department of Business and Professional
54Regulation in cooperation with the chief judge of the Thirteenth
55Judicial Circuit in Hillsborough County and the chief judge of
56the Sixth Judicial Circuit in Pinellas County.
57     Section 3.  Section 720.502, Florida Statutes, is created
58to read:
59     720.502  Definitions.--As used in this part, the term:
60     (1)  "Homeowners' association" or "association" means a
61homeowners' association within the meaning of this part and
62includes only those community associations operating residential
63communities partially or totally situated in Pinellas County or
64in Hillsborough County.
65     (2)  "Community" means the real property that is subject to
66a declaration of covenants that is recorded in the county where
67the property is located.
68     (3)  "Dispute" means a disagreement between a homeowners'
69association and a parcel owner concerning the validity or
70enforcement of restrictions contained in the governing documents
71of the community, including any declaration of restrictions and
72covenants, deed restrictions, the articles of incorporation, and
73bylaws of the association, or any rules governing the community,
74which dispute arises in the Thirteenth Judicial Circuit or the
75Sixth Judicial Circuit. The term also includes the failure of
76the association or parcel owner to comply with the requirements
77of this chapter, as applicable.
78     (4)  "Parcel owner" means the record owner of legal title
79to a parcel governed by an association.
80     (5)  "Petitioner" means the party filing a petition
81pursuant to the provisions of this part.
82     (6)  "Respondent" means the party responding to a petition
83filed pursuant to the provisions of this part.
84     (7)  "Developer" means the entity creating the community
85operated by the homeowners' association or any entity that
86offers residential parcels for sale or lease in the ordinary
87course of its business within that community.
88     Section 4.  Section 720.503, Florida Statutes, is created
89to read:
90     720.503  Rules of procedure; report required.--
91     (1)  The rules and procedures for the operation of the Home
92Court Advantage Pilot Program in Hillsborough County and
93Pinellas County shall be those rules adopted by the Division of
94Florida Land Sales, Condominiums, and Mobile Homes pursuant to
95s. 718.1255 and such additional rules and procedures as shall be
96provided by this part.
97     (2)  In cooperation with the chief judge of the circuit,
98the division shall provide for the use of courtroom facilities,
99case management, and recordkeeping facilities for the operation
100of the pilot program.
101     (3)  The division shall direct a report to the President of
102the Senate, the Speaker of the House of Representatives, and the
103minority leader of each house of the Legislature within 60 days
104following the pilot program. The report shall evaluate the
105successes and the shortcomings of the pilot program, the
106timeframe for the average proceeding, and shall make
107recommendations concerning the pilot program's continuation,
108expansion, elimination, or modification.
109     Section 5.  Section 720.504, Florida Statutes, is created
110to read:
111     720.504  Jurisdiction.--
112     (1)  Subject to subsection (2), a dispute within the
113jurisdiction of the Home Court Advantage Pilot Program includes
114any dispute regarding the enforceability or validity of the
115governing documents of the community, the reasonableness of any
116action of the board of directors of the association involving
117the governing documents, any dispute in which an association
118seeks enforcement of the governing documents, and any dispute
119alleging the failure of an association or parcel owner to comply
120with the requirements of this chapter or the governing documents
121of the community.
122     (2)  Only disputes between an association and a parcel
123owner are within the jurisdiction of the pilot program. Officers
124or directors of the community association may not be parties in
125these proceedings. Disputes involving tenants or guests of
126parcel owners are subject to the provisions of this part if the
127tenant is alleged to have violated the governing documents of
128the community, except that eviction proceedings are exempt from
129the jurisdiction of the pilot program. Disagreements relating to
130the imposition, reasonableness, or collection of fines,
131assessments, special assessments, or other fees owed by a parcel
132owner, lien foreclosure actions, or disagreements regarding the
133enforcement of a judgment are not subject to arbitration under
134the pilot program.
135     (3)  If a dispute described by this section is otherwise
136subject to mandatory mediation or mandatory binding arbitration
137as provided by s. 720.311 relating to homeowners' associations,
138the dispute shall be filed pursuant to the provisions of this
139part and is not required or permitted to be filed pursuant to
140this chapter, as applicable.
141     (4)  Regardless of whether this authority exists in the
142governing documents, a parcel owner may commence a proceeding
143under the provisions of this part against another parcel owner
144or against the association for any violation of the documents or
145controlling statute, and an association may also commence a
146proceeding against a parcel owner, or the owner and her or his
147tenant or occupant, for violations of the governing documents or
148statute.
149     Section 6.  Section 720.505, Florida Statutes, is created
150to read:
151     720.505  Procedure for mandatory filing; filing fee.--
152     (1)  Before filing a petition with the Division of Florida
153Land Sales, Condominiums, and Mobile Homes, the petitioner shall
154provide the intended respondent with a written demand
155identifying the nature of the dispute, demanding the relief
156sought, stating that, if the relief is not provided, the dispute
157will be filed in the courts of that circuit, and providing the
158respondent with a reasonable period of time within which to
159provide the relief sought. The failure to provide advance
160written notice shall result in the dismissal of the petition.
161     (2)  Before filing a dispute with the circuit court, a
162dispute within the jurisdiction of the pilot program must be
163filed with the division. At the same time the petition is filed,
164the petitioner shall provide a copy of the petition and
165attachments to the respondent by United States certified mail.
166The petition must be on a form adopted by the division, or must
167be substantially similar to the form, and must include a copy of
168the demand letter required by subsection (1). The petition must
169include portions of the governing documents relied upon in the
170petition.
171     (3)  The division shall direct an order to the respondent
172by United States certified mail which shall provide the
173respondent 14 days in which to file an answer to the petition.
174The answer must include any defenses that the respondent has to
175the petition. If the respondent files a motion to dismiss the
176petition, it must be accompanied by an answer and defenses in
177order to promote the timely resolution of the dispute. The
178answer may not include any claim that the respondent may have
179against the petitioner, but may address only the dispute stated
180in the petition.
181     (4)  Any petition filed must include a filing fee in the
182amount of $150, payable to the division. This fee is
183nonrefundable. The filing fees shall be used by the division to
184defray the costs of administering the pilot program.
185     (5)  When a party filing a petition demonstrates to the
186arbitrator at the time of the filing of the petition or
187thereafter that the party is in need of and entitled to
188immediate emergency injunctive relief, the arbitrator may abate
189the proceeding and allow the party to file for a temporary
190injunction in court.
191     Section 7.  Section 720.506, Florida Statutes, is created
192to read:
193     720.506  Arbitrators.--
194     (1)  The Division of Florida Land Sales, Condominiums, and
195Mobile Homes shall maintain a list of qualified arbitrators to
196hear the disputes described by the provisions of this part. In
197order to be qualified, the person seeking to act as a arbitrator
198must be a member in good standing with The Florida Bar and must
199have practiced law in the area of association disputes for at
200least 5 years, or must be a member in good standing of The
201Florida Bar who has passed the examination for community
202association manager licensure under s. 468.433. The division
203may, by rule, adopt additional requirements for qualification.
204     (2)  An arbitrator shall be compensated as provided in
205subsection (3) and is entitled to immunity as provided by s.
20644.107. An arbitrator serves at the pleasure of the director of
207the division.
208     (3)  An arbitrator shall be compensated at the rate of $150
209per hour but shall not receive more than $600 for any single
210case. The total fees of the arbitrator shall appear in the final
211order and shall be divided equally between the parties to the
212dispute. Such fees shall be paid in full within 15 days after
213receipt of the final order and shall become delinquent
214thereafter. The arbitrator shall be entitled to recover
215reasonable attorney's fees and costs incurred in the collection
216of any delinquent sums.
217     Section 8.  Section 720.507, Florida Statutes, is created
218to read:
219     720.507  Conduct of proceedings; appeals.--
220     (1)  An arbitrator may hear and decide the disputes filed
221pursuant to the provisions of this part, but she or he may not
222hold a person in contempt. An arbitrator may issue subpoenas to
223compel the attendance and production of persons and documents at
224the request of any party to the proceedings. The arbitrator
225shall, unless waived by both parties to the dispute, conduct a
226final hearing, if one is required, within 60 days after the
227filing of the petition, and shall, within 14 days after the
228final hearing, issue a final order. The final order is binding
229on the parties, if a complaint for a trial de novo is not filed
230in a court of competent jurisdiction within 30 days after
231rendition of the final order, and may be enforced in the courts
232of this state as provided in subsection (2). The final order of
233the arbitrator is admissible in any appeal of the final order.
234     (2)  A final order of the arbitrator which has not been
235timely appealed may be enforced by filing a petition for
236enforcement in circuit court. The prevailing party in an
237enforcement action is entitled to reasonable costs and
238attorney's fees.
239     (3)  If no timely appeal has been filed in a case in which
240a party who was ordered by final order of the arbitrator to take
241some action or to refrain from taking some action does not
242comply with the final order of the arbitrator within 30 days
243after rendition of the final order, the arbitrator retains
244jurisdiction upon the petition or request of a party to modify
245the final order to require the party failing to comply with all
246of the cost of the proceeding, including reasonable attorney's
247fees.
248     (4)  The arbitrator shall conduct these proceedings,
249including the final hearing, in accordance with the rules of
250procedure adopted by the Division of Florida Land Sales,
251Condominiums, and Mobile Homes pursuant to s. 718.1255(4) and
252the procedures established by this part.
253     (5)  An arbitrator may grant all relief necessary for the
254disposition of the dispute, including, but not limited to,
255making a finding that a provision contained in the governing
256documents is invalid and unenforceable; an order enforcing the
257provisions of the governing documents and statute; an order
258requiring an association or parcel owner, tenant, or guest to
259comply with the governing documents or statute; or an order
260finding that the association has selectively enforced its
261governing documents. However, an arbitrator may not reform the
262governing documents governing the community.
263     (6)  In deciding a dispute, an arbitrator shall follow and
264apply the applicable statute as well as controlling case law.
265     (7)  An arbitrator is subject to the standards of
266professional conduct contained in the Florida Rules for Court-
267Appointed Arbitrators. An arbitrator may not preside over a
268dispute involving a party currently represented by the
269arbitrator, but may preside over a dispute involving a former
270client when both parties, upon disclosure of the prior
271representation, consent in writing.
272     (8)  An arbitrator may, in the exercise of her or his
273discretion, award reasonable prevailing party costs and
274attorney's fees when an arbitrator has determined that the
275conduct of a party has been unreasonable.
276     (9)  A member prevailing in an action against the
277association under this section may also be awarded additional
278amounts as determined by the arbitrator to be necessary to
279reimburse the member for her or his share of assessments levied
280by the association to fund its expenses of the arbitration. This
281relief shall not exclude other remedies provided by law.
282     Section 9.  This act shall take effect October 1, 2007.


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