1

A bill to be entitled

2

An act relating to community associations; amending s.

3

718.1124, F.S., and creating ss. 719.1124 and 720.3053,

4

F.S.; providing for notification of a unit owner's or

5

member's intent to petition for the appointment of a

6

receiver if an association's governing board fails to fill

7

vacancies sufficient to constitute a quorum; providing for

8

written notice to unit owners or members of any such

9

appointment; requiring the salary of the receiver and

10

certain costs and fees to be paid by the association;

11

providing powers, duties, and term of service of the

12

receiver; amending s. 718.117, F.S., and creating ss.

13

718.127, 719.127, and 720.313, F.S.; specifying

14

receivership notification requirements with respect to

15

condominium associations, cooperative associations, and

16

homeowners' associations; amending s. 718.121, F.S.;

17

providing requirements and restrictions for liens filed by

18

the association against a condominium unit; providing for

19

notice and delivery of such notice; amending s. 719.108,

20

F.S.; prohibiting a lien from being filed by an

21

association against a condominium unit or cooperative

22

parcel until 30 days after service of a notice of intent

23

to file the lien; amending s. 720.305, F.S.; deleting

24

notification requirements for the appointment of a

25

receiver under specified circumstances for matters

26

relating to homeowners' associations; providing an

27

effective date.

28

29

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

30

31

     Section 1.  Section 718.1124, Florida Statutes, is amended

32

to read:

33

     718.1124  Failure to fill vacancies on board of

34

administration sufficient to constitute a quorum; appointment of

35

receiver upon petition of unit owner.--

36

     (1) If an association fails to fill vacancies on the board

37

of administration sufficient to constitute a quorum in accordance

38

with the bylaws, any unit owner may give notice of his or her

39

intent to apply to the circuit court within whose jurisdiction

40

the condominium lies for the appointment of a receiver to manage

41

the affairs of the association. The form of the notice shall be

42

as follows:

43

44

NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP

45

46

YOU ARE HEREBY NOTIFIED that the undersigned owner of a

47

condominium unit in (name of condominium) intends to

48

file a petition in the circuit court for appointment of

49

a receiver to manage the affairs of the association on

50

the grounds that the association has failed to fill

51

vacancies on the board of administration sufficient to

52

constitute a quorum. This petition will not be filed if

53

the vacancies are filled within 30 days after the date

54

on which this notice was sent or posted, whichever is

55

later. If a receiver is appointed, the receiver shall

56

have all of the powers of the board and shall be

57

entitled to receive a salary and reimbursement of all

58

costs and attorney's fees payable from association

59

funds.

60

61

(name and address of petitioning unit owner)

62

63

     (2) The notice required by subsection (1) must be provided

64

by At least 30 days prior to applying to the circuit court, the

65

unit owner shall mail to the association by certified mail or

66

personal delivery, must be posted and post in a conspicuous place

67

on the condominium property, and must be provided to every unit

68

owner of the association by certified mail or personal delivery.

69

The a notice must be posted and mailed or delivered at least 30

70

days prior to the filing of a petition seeking receivership.

71

Notice by mail to a unit owner shall be sent to the address used

72

by the county property appraiser for notice to the unit owner

73

describing the intended action, giving the association the

74

opportunity to fill the vacancies.

75

     (3) If during such time the association fails to fill the

76

vacancies within 30 days after the notice required by subsection

77

(1) is posted and mailed or delivered, the unit owner may proceed

78

with the petition.

79

     (4) If a receiver is appointed, all unit owners shall be

80

given written notice of such appointment as provided in s.

81

718.127.

82

     (5) The association shall be responsible for the salary of

83

the receiver, court costs, and attorney's fees. The receiver

84

shall have all powers and duties of a duly constituted board of

85

administration and shall serve until the association fills

86

vacancies on the board sufficient to constitute a quorum and the

87

court relieves the receiver of the appointment.

88

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

89

718.117, Florida Statutes, is amended to read:

90

     718.117  Termination of condominium.--

91

     (7)  NATURAL DISASTERS.--

92

     (a)  If, after a natural disaster, the identity of the

93

directors or their right to hold office is in doubt, if they are

94

deceased or unable to act, if they fail or refuse to act, or if

95

they cannot be located, any interested person may petition the

96

circuit court to determine the identity of the directors or, if

97

found to be in the best interests of the unit owners, to appoint

98

a receiver to conclude the affairs of the association after a

99

hearing following notice to such persons as the court directs.

100

Lienholders shall be given notice of the petition and have the

101

right to propose persons for the consideration by the court as

102

receiver. If a receiver is appointed, the court shall direct the

103

receiver to provide to all unit owners written notice of his or

104

her appointment as receiver. Such notice shall be mailed or

105

delivered within 10 days after the appointment. Notice by mail to

106

a unit owner shall be sent to the address used by the county

107

property appraiser for notice to the unit owner.

108

     Section 3.  Subsection (4) is added to section 718.121,

109

Florida Statutes, to read:

110

     718.121  Liens.--

111

     (4) Except as otherwise provided in this chapter, no lien

112

may be filed by the association against a condominium unit until

113

30 days after the date on which a notice of intent to file a lien

114

has been delivered to the owner by registered or certified mail,

115

return receipt requested, and by first-class United States mail

116

to the owner at his or her last address as reflected in the

117

records of the association, if the address is within the United

118

States, and delivered to the owner at the address of the unit if

119

the owner's address as reflected in the records of the

120

association is not the unit address. If the address reflected in

121

the records is outside the United States, sending the notice to

122

such address and to the unit address by first-class United States

123

mail constitutes sufficient delivery. Delivery of the notice

124

shall be deemed complete upon mailing as required by this

125

subsection.

126

     Section 4.  Section 718.127, Florida Statutes, is created to

127

read:

128

     718.127 Receivership notification.--Upon the appointment of

129

a receiver by a court for any reason relating to a condominium

130

association, the court shall direct the receiver to provide to

131

all unit owners written notice of his or her appointment as

132

receiver. Such notice shall be mailed or delivered within 10 days

133

after the appointment. Notice by mail to a unit owner shall be

134

sent to the address used by the county property appraiser for

135

notice to the unit owner.

136

     Section 5.  Subsection (4) of section 719.108, Florida

137

Statutes, is amended to read:

138

     719.108  Rents and assessments; liability; lien and

139

priority; interest; collection; cooperative ownership.--

140

     (4)  The association shall have a lien on each cooperative

141

parcel for any unpaid rents and assessments, plus interest,

142

against the unit owner of the cooperative parcel. If authorized

143

by the cooperative documents, said lien shall also secure

144

reasonable attorney's fees incurred by the association incident

145

to the collection of the rents and assessments or enforcement of

146

such lien. The lien is effective from and after the recording of

147

a claim of lien in the public records in the county in which the

148

cooperative parcel is located which states the description of the

149

cooperative parcel, the name of the unit owner, the amount due,

150

and the due dates. The lien shall expire if a claim of lien is

151

not filed within 1 year after the date the assessment was due,

152

and no such lien shall continue for a longer period than 1 year

153

after the claim of lien has been recorded unless, within that

154

time, an action to enforce the lien is commenced in a court of

155

competent jurisdiction. No lien may be filed by the association

156

against a cooperative parcel until 30 days after the date on

157

which a notice of intent to file a lien has been served on the

158

unit owner of the cooperative parcel by certified mail or by

159

personal service in the manner authorized by chapter 48 and the

160

Florida Rules of Civil Procedure.

161

     Section 6.  Section 719.1124, Florida Statutes, is created

162

to read:

163

     719.1124 Failure to fill vacancies on board of

164

administration sufficient to constitute a quorum; appointment of

165

receiver upon petition of unit owner.--

166

     (1) If an association fails to fill vacancies on the board

167

of administration sufficient to constitute a quorum in accordance

168

with the bylaws, any unit owner may give notice of his or her

169

intent to apply to the circuit court within whose jurisdiction

170

the cooperative lies for the appointment of a receiver to manage

171

the affairs of the association. The form of the notice shall be

172

as follows:

173

174

NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP

175

176

YOU ARE HEREBY NOTIFIED that the undersigned owner of a

177

unit in (name of cooperative) intends to file a

178

petition in the circuit court for appointment of a

179

receiver to manage the affairs of the association on

180

the grounds that the association has failed to fill

181

vacancies on the board of administration sufficient to

182

constitute a quorum. This petition will not be filed if

183

the vacancies are filled within 30 days after the date

184

on which this notice was sent or posted, whichever is

185

later. If a receiver is appointed, the receiver shall

186

have all of the powers of the board and shall be

187

entitled to receive a salary and reimbursement of all

188

costs and attorney's fees payable from association

189

funds.

190

191

(name and address of petitioning unit owner)

192

193

     (2) The notice required by subsection (1) must be provided

194

by the unit owner to the association by certified mail or

195

personal delivery, must be posted in a conspicuous place on the

196

cooperative property, and must be provided to every unit owner of

197

the association by certified mail or personal delivery. The

198

notice must be posted and mailed or delivered at least 30 days

199

prior to the filing of a petition seeking receivership. Notice by

200

mail to a unit owner shall be sent to the address used by the

201

county property appraiser for notice to the unit owner.

202

     (3) If the association fails to fill the vacancies within

203

30 days after the notice required by subsection (1) is posted and

204

mailed or delivered, the unit owner may proceed with the

205

petition.

206

     (4) If a receiver is appointed, all unit owners shall be

207

given written notice of such appointment as provided in s.

208

719.127.

209

     (5) The association shall be responsible for the salary of

210

the receiver, court costs, and attorney's fees. The receiver

211

shall have all powers and duties of a duly constituted board of

212

administration and shall serve until the association fills

213

vacancies on the board sufficient to constitute a quorum and the

214

court relieves the receiver of the appointment.

215

     Section 7.  Section 719.127, Florida Statutes, is created to

216

read:

217

     719.127 Receivership notification.--Upon the appointment of

218

a receiver by a court for any reason relating to a cooperative

219

association, the court shall direct the receiver to provide to

220

all unit owners written notice of his or her appointment as

221

receiver. Such notice shall be mailed or delivered within 10 days

222

after the appointment. Notice by mail to a unit owner shall be

223

sent to the address used by the county property appraiser for

224

notice to the unit owner.

225

     Section 8.  Section 720.305, Florida Statutes, is amended to

226

read:

227

     720.305  Obligations of members; remedies at law or in

228

equity; levy of fines and suspension of use rights; failure to

229

fill sufficient number of vacancies on board of directors to

230

constitute a quorum; appointment of receiver upon petition of any

231

member.--

232

     (1)  Each member and the member's tenants, guests, and

233

invitees, and each association, are governed by, and must comply

234

with, this chapter, the governing documents of the community, and

235

the rules of the association. Actions at law or in equity, or

236

both, to redress alleged failure or refusal to comply with these

237

provisions may be brought by the association or by any member

238

against:

239

     (a)  The association;

240

     (b)  A member;

241

     (c)  Any director or officer of an association who willfully

242

and knowingly fails to comply with these provisions; and

243

     (d)  Any tenants, guests, or invitees occupying a parcel or

244

using the common areas.

245

246

The prevailing party in any such litigation is entitled to

247

recover reasonable attorney's fees and costs. A member prevailing

248

in an action between the association and the member under this

249

section, in addition to recovering his or her reasonable

250

attorney's fees, may recover additional amounts as determined by

251

the court to be necessary to reimburse the member for his or her

252

share of assessments levied by the association to fund its

253

expenses of the litigation. This relief does not exclude other

254

remedies provided by law. This section does not deprive any

255

person of any other available right or remedy.

256

     (2)  If the governing documents so provide, an association

257

may suspend, for a reasonable period of time, the rights of a

258

member or a member's tenants, guests, or invitees, or both, to

259

use common areas and facilities and may levy reasonable fines,

260

not to exceed $100 per violation, against any member or any

261

tenant, guest, or invitee. A fine may be levied on the basis of

262

each day of a continuing violation, with a single notice and

263

opportunity for hearing, except that no such fine shall exceed

264

$1,000 in the aggregate unless otherwise provided in the

265

governing documents. A fine shall not become a lien against a

266

parcel. In any action to recover a fine, the prevailing party is

267

entitled to collect its reasonable attorney's fees and costs from

268

the nonprevailing party as determined by the court.

269

     (a)  A fine or suspension may not be imposed without notice

270

of at least 14 days to the person sought to be fined or suspended

271

and an opportunity for a hearing before a committee of at least

272

three members appointed by the board who are not officers,

273

directors, or employees of the association, or the spouse,

274

parent, child, brother, or sister of an officer, director, or

275

employee. If the committee, by majority vote, does not approve a

276

proposed fine or suspension, it may not be imposed.

277

     (b)  The requirements of this subsection do not apply to the

278

imposition of suspensions or fines upon any member because of the

279

failure of the member to pay assessments or other charges when

280

due if such action is authorized by the governing documents.

281

     (c)  Suspension of common-area-use rights shall not impair

282

the right of an owner or tenant of a parcel to have vehicular and

283

pedestrian ingress to and egress from the parcel, including, but

284

not limited to, the right to park.

285

     (3)  If the governing documents so provide, an association

286

may suspend the voting rights of a member for the nonpayment of

287

regular annual assessments that are delinquent in excess of 90

288

days.

289

     (4) If an association fails to fill vacancies on the board

290

of directors sufficient to constitute a quorum in accordance with

291

the bylaws, any member may apply to the circuit court that has

292

jurisdiction over the community served by the association for the

293

appointment of a receiver to manage the affairs of the

294

association. At least 30 days before applying to the circuit

295

court, the member shall mail to the association, by certified or

296

registered mail, and post, in a conspicuous place on the property

297

of the community served by the association, a notice describing

298

the intended action, giving the association 30 days to fill the

299

vacancies. If during such time the association fails to fill a

300

sufficient number of vacancies so that a quorum can be assembled,

301

the member may proceed with the petition. If a receiver is

302

appointed, the homeowners' association shall be responsible for

303

the salary of the receiver, court costs, attorney's fees, and all

304

other expenses of the receivership. The receiver has all the

305

powers and duties of a duly constituted board of directors and

306

shall serve until the association fills a sufficient number of

307

vacancies on the board so that a quorum can be assembled.

308

     Section 9.  Section 720.3053, Florida Statutes, is created

309

to read:

310

     720.3053 Failure to fill vacancies on board of directors

311

sufficient to constitute a quorum; appointment of receiver upon

312

petition of member.--

313

     (1) If an association fails to fill vacancies on the board

314

of directors sufficient to constitute a quorum in accordance with

315

the bylaws, any member may give notice of the member's intent to

316

apply to the circuit court within whose jurisdiction the

317

association lies for the appointment of a receiver to manage the

318

affairs of the association. The form of the notice shall be as

319

follows:

320

321

NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP

322

323

YOU ARE HEREBY NOTIFIED that the undersigned member of

324

(name of homeowners' association) intends to file a

325

petition in the circuit court for appointment of a

326

receiver to manage the affairs of the association on

327

the grounds that the association has failed to fill

328

vacancies on the board of directors sufficient to

329

constitute a quorum. This petition will not be filed if

330

the vacancies are filled within 30 days after the date

331

on which this notice was sent or posted, whichever is

332

later. If a receiver is appointed, the receiver shall

333

have all of the powers of the board and shall be

334

entitled to receive a salary and reimbursement of all

335

costs and attorney's fees payable from association

336

funds.

337

338

(name and address of petitioning member)

339

340

     (2) The notice required by subsection (1) must be provided

341

by the member to the association by certified mail or personal

342

delivery, must be posted in a conspicuous place within the

343

homeowners' association, and must be provided to every member of

344

the association by certified mail or personal delivery. The

345

notice must be posted and mailed or delivered at least 30 days

346

prior to the filing of a petition seeking receivership. Notice by

347

mail to a member shall be sent to the address used by the county

348

property appraiser for notice to the member.

349

     (3) If the association fails to fill the vacancies within

350

30 days after the notice required by subsection (1) is posted and

351

mailed or delivered, the member may proceed with the petition.

352

     (4) If a receiver is appointed, all members shall be given

353

written notice of such appointment as provided in s. 720.313.

354

     (5) The association shall be responsible for the salary of

355

the receiver, court costs, and attorney's fees. The receiver

356

shall have all powers and duties of a duly constituted board of

357

directors and shall serve until the association fills vacancies

358

on the board sufficient to constitute a quorum and the court

359

relieves the receiver of the appointment.

360

     Section 10.  Section 720.313, Florida Statutes, is created

361

to read:

362

     720.313 Receivership notification.--Upon the appointment of

363

a receiver by a court for any reason relating to a homeowners'

364

association, the court shall direct the receiver to provide to

365

all members written notice of his or her appointment as receiver.

366

Such notice shall be mailed or delivered within 10 days after the

367

appointment. Notice by mail to a member shall be sent to the

368

address used by the county property appraiser for notice to the

369

owner of the property.

370

     Section 11.  This act shall take effect July 1, 2008.