1

A bill to be entitled

2

An act relating to community associations; amending s.

3

514.011, F.S.; providing a definition; amending s.

4

514.0115, F.S.; providing specified supervision and

5

regulation exemptions for homeowners' association swimming

6

pools; amending s. 515.25, F.S.; conforming a cross-

7

reference; amending s. 718.111, F.S.; specifying that

8

requirements relating to acquisition and maintenance of

9

adequate insurance apply to all residential condominiums;

10

revising and providing provisions relating to condominium

11

and condominium owner insurance coverage; authorizing an

12

association or group of associations to provide adequate

13

hazard insurance through a self-insurance fund; requiring

14

associations to exercise best efforts to obtain and

15

maintain certain kinds of insurance; providing coverage

16

requirements for policies entered into after a specified

17

date; requiring owners to provide evidence of a currently

18

effective policy of hazard and liability insurance upon

19

request by the association; specifying responsibility for

20

reconstruction work under specified circumstances;

21

specifying common expense responsibilities of the

22

association and owners; providing for unit owner access to

23

association records; prohibiting unit owners from

24

accessing certain personal identifying information of

25

other unit owners and persons residing in units; amending

26

s. 718.112, F.S.; requiring meetings of the board of

27

administration to be conducted using generally accepted

28

parliamentary procedures; requiring the board to hold

29

special meetings upon a petition of a specified amount of

30

the total voting interests or to take up the petitioned

31

items at the next regular meeting; providing members with

32

the right to speak at such meetings under certain

33

circumstances; providing location requirements for all

34

unit owner meetings; revising budget requirements;

35

amending s. 718.115, F.S.; providing certain expenses to

36

be included as common expenses; amending s. 718.116, F.S.;

37

providing requirements for claims of lien filed on or

38

after a specified date; providing notice requirements;

39

requiring certain advance notice to pay estimated

40

nonemergency special assessments; creating s. 718.1265,

41

F.S.; authorizing a condominium association board to

42

exercise specified emergency powers when a state of

43

emergency is declared; providing limitations; amending s.

44

718.3025, F.S.; deleting a requirement specifying a

45

minimum number of personnel to be employed by a party

46

contracting to provide maintenance or management services;

47

providing requirements for certain contracts between a

48

party contracting to provide maintenance or management

49

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

50

providing an expiration threshold for certain associations

51

opting out of requirements relating to contracts for

52

products and services following a vote by the unit owners;

53

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

54

fines to be held before a committee of unit owners who are

55

not members of the board or persons residing in a board

56

member's household; amending s. 718.5012, F.S.; removing a

57

requirement for the ombudsman to develop certain policies

58

and procedures; requiring direct assistance; amending s.

59

718.503, F.S.; providing that prospective purchasers are

60

entitled to a governance form provided by the seller and

61

prepared by the division; requiring the governance form to

62

include specified information; amending s. 720.303, F.S.;

63

revising provisions relating to homeowners' association

64

board meetings, inspection and copying of records, reserve

65

accounts of budgets, and financial reporting requirements;

66

prohibiting salary or compensation of certain association

67

personnel; providing exceptions; amending s. 720.305,

68

F.S.; providing for an association to recover certain

69

costs and expenses in certain actions; revising a lien

70

restriction; amending s. 720.306, F.S.; revising certain

71

meeting notice requirements; providing absentee ballot

72

voting requirements; requiring newly elected members of a

73

board of directors to make certain certifications in

74

writing to the association; providing for disqualification

75

for failure to make such certifications; requiring an

76

association to retain such certifications for a certain

77

time; specifying repercussions for certain unexcused

78

absences; amending s. 720.307, F.S.; authorizing the board

79

of directors of an association to levy assessments on

80

unimproved parcels under certain circumstances; amending

81

s. 720.3075, F.S.; specifying an additional prohibited

82

clause in association documents; amending s. 720.308,

83

F.S.; revising certain cash funding requirements; amending

84

s. 720.3085, F.S.; revising mailing requirements for a

85

written notice or demand for past due assessments;

86

providing requirements for certain foreclosure actions;

87

amending s. 720.401, F.S.; revising certain prospective

88

parcel owner disclosure summary requirements; providing an

89

effective date.

90

91

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

92

93

     Section 1.  Section 514.011, Florida Statutes, is amended to

94

read:

95

     514.011  Definitions.--As used in this chapter:

96

     (1)  "Department" means the Department of Health.

97

     (2) "Homeowners' association" means a homeowners'

98

association as defined in s. 720.301.

99

     (3)(5) "Portable pool" means a pool or spa, and related

100

equipment systems of any kind, which is designed or intended to

101

be movable from location to location.

102

     (4)(3) "Private pool" means a facility used only by an

103

individual, family, or living unit members and their guests which

104

does not serve any type of cooperative housing or joint tenancy

105

of five or more living units.

106

     (5)(4) "Public bathing place" means a body of water,

107

natural or modified by humans, for swimming, diving, and

108

recreational bathing, together with adjacent shoreline or land

109

area, buildings, equipment, and appurtenances pertaining thereto,

110

used by consent of the owner or owners and held out to the public

111

by any person or public body, irrespective of whether a fee is

112

charged for the use thereof. The bathing water areas of public

113

bathing places include, but are not limited to, lakes, ponds,

114

rivers, streams, artificial impoundments, and waters along the

115

coastal and intracoastal beaches and shores of the state.

116

     (6)(2) "Public swimming pool" or "public pool" means a

117

watertight structure of concrete, masonry, or other approved

118

materials which is located either indoors or outdoors, used for

119

bathing or swimming by humans, and filled with a filtered and

120

disinfected water supply, together with buildings, appurtenances,

121

and equipment used in connection therewith. A public swimming

122

pool or public pool shall mean a conventional pool, spa-type

123

pool, wading pool, special purpose pool, or water recreation

124

attraction, to which admission may be gained with or without

125

payment of a fee and includes, but is not limited to, pools

126

operated by or serving camps, churches, cities, counties, day

127

care centers, group home facilities for eight or more clients,

128

health spas, institutions, parks, state agencies, schools,

129

subdivisions, or the cooperative living-type projects of five or

130

more living units, such as apartments, boardinghouses, hotels,

131

mobile home parks, motels, recreational vehicle parks, and

132

townhouses.

133

     Section 2.  Subsection (2) of section 514.0115, Florida

134

Statutes, is amended to read:

135

     514.0115  Exemptions from supervision or regulation;

136

variances.--

137

     (2)(a) Pools serving no more than 32 homeowners'

138

association, condominium, or cooperative units which are not

139

operated as a public lodging establishment shall be exempt from

140

supervision under this chapter, except for water quality.

141

     (b) Pools serving homeowners', condominium, or cooperative

142

associations of more than 32 units and whose recorded documents

143

prohibit the rental or sublease of the units for periods of less

144

than 60 days are exempt from supervision under this chapter,

145

except that the homeowners' association or condominium or

146

cooperative owner or association must file applications with the

147

department and obtain construction plans approval and receive an

148

initial operating permit. The department shall inspect the

149

swimming pools at such places annually, at the fee set forth in

150

s. 514.033(3), or upon request by a unit owner, to determine

151

compliance with department rules relating to water quality and

152

lifesaving equipment. The department may not require compliance

153

with rules relating to swimming pool lifeguard standards.

154

     Section 3.  Subsection (9) of section 515.25, Florida

155

Statutes, is amended to read:

156

     515.25  Definitions.--As used in this chapter, the term:

157

     (9)  "Public swimming pool" means a swimming pool, as

158

defined in s. 514.011(6)(2), which is operated, with or without

159

charge, for the use of the general public; however, the term does

160

not include a swimming pool located on the grounds of a private

161

residence.

162

     Section 4.  Subsection (11), paragraphs (b) and (c) of

163

subsection (12), and subsection (13) of section 718.111, Florida

164

Statutes, are amended to read:

165

     718.111  The association.--

166

     (11)  INSURANCE.--In order to protect the safety, health,

167

and welfare of the people of the State of Florida and to ensure

168

consistency in the provision of insurance coverage to

169

condominiums and their unit owners, this subsection shall be

170

paragraphs (a), (b), and (c) are deemed to apply to every

171

residential condominium in the state, regardless of the date of

172

its declaration of condominium. It is the intent of the

173

Legislature to encourage lower or stable insurance premiums for

174

associations described in this section.

175

     (a) Adequate hazard insurance, regardless of any

176

requirement in the declaration of condominium for coverage by the

177

association for "full insurable value," "replacement cost," or

178

the like, shall be based upon the replacement cost of the

179

property to be insured as determined by an independent insurance

180

appraisal or update of a prior appraisal. The full insurable

181

value shall be determined not less frequently than every 36

182

months.

183

     1. An association or group of associations may provide

184

adequate hazard insurance through a self-insurance fund that

185

complies with the requirements of ss. 624.460-624.488.

186

     2. The association may also provide adequate hazard

187

insurance coverage, individually, or for a group of no fewer than

188

three communities created and operating under this chapter,

189

chapter 719, chapter 720, or chapter 721, by obtaining and

190

maintaining for the communities insurance coverage sufficient to

191

cover an amount equal to the probable maximum loss for the

192

communities for a 250-year windstorm event provided that such

193

probable maximum loss must be determined through the use of a

194

competent model that has been accepted by the Florida Commission

195

on Hurricane Loss Projection Methodology.

196

     3. In determining the adequate hazard insurance coverage,

197

the association may consider deductibles as determined by this

198

subsection.

199

     (b) If the association is developer controlled, the

200

association shall exercise best efforts to obtain and maintain

201

such insurance. Failure to obtain and maintain adequate hazard

202

insurance during any period of developer control shall constitute

203

a breach of fiduciary responsibility by the developer-appointed

204

members of the board of directors of the association, unless such

205

members can show that despite such failure, they have made their

206

best efforts.

207

     (c) Policies may include deductibles as determined by the

208

board.

209

     1. The deductibles shall be consistent with industry

210

standards and prevailing practices for communities of like size

211

and age, having similar construction and facilities in the locale

212

where the condominium property is situated.

213

     2. The deductibles may be based upon available funds,

214

including reserve accounts or predetermined assessment authority

215

at the time that the insurance is obtained.

216

     3. The board shall establish the level of deductibles based

217

upon the level of available funds and predetermined assessment

218

authority at a meeting of the board which shall be open to all

219

unit owners in the manner set forth in s. 718.112(2)(e). The

220

notice of such meeting shall state the proposed deductible and

221

the available funds and the assessment authority relied upon by

222

the board and shall estimate any potential assessment amount

223

against each unit, if any. The meeting described in this

224

subparagraph may be held in conjunction with a meeting to

225

consider the proposed budget or an amendment thereto.

226

     (d) A unit-owner-controlled association operating a

227

residential condominium shall use its best efforts to obtain and

228

maintain adequate insurance to protect the association, the

229

association property, the common elements, and the condominium

230

property required to be insured by the association pursuant to

231

this subsection.

232

     (e) The declaration of condominium as originally recorded,

233

or amended pursuant to procedures provided therein, may require

234

that condominium property consisting of freestanding buildings

235

where there is no more than one building in or on such unit need

236

not be insured by the association if the declaration requires the

237

unit owner to obtain adequate insurance for the condominium

238

property. An association may also obtain and maintain liability

239

insurance for directors and officers, insurance for the benefit

240

of association employees, and flood insurance for common

241

elements, association property, and units.

242

     (f) Every hazard insurance policy issued or renewed on or

243

after January 1, 2009, to protect the condominium shall provide

244

primary coverage for:

245

     1. All portions of the condominium property as originally

246

installed or replacement of like kind and quality, in accordance

247

with the original plans and specifications.

248

     2. All alterations or additions made to the condominium

249

property or association property pursuant to s. 718.113(2).

250

     3. The coverage shall exclude all personal property within

251

the unit or limited common elements, floor, wall, and ceiling

252

coverings, electrical fixtures, appliances, water heaters, water

253

filters, built-in cabinets and countertops, and window

254

treatments, including curtains, drapes, blinds, hardware, and

255

similar window treatment components or replacements of any of the

256

foregoing.

257

258

This paragraph is intended to establish the property or casualty

259

insuring responsibilities of the association and those of the

260

individual unit owner and do not serve to broaden or extend the

261

perils of coverage afforded by any insurance contract provided to

262

the individual unit owner.

263

     (g) Every hazard insurance policy issued or renewed on or

264

after January 1, 2009, to an individual unit owner shall provide

265

that the coverage afforded by such policy is excess over the

266

amount recoverable under any other policy covering the same

267

property and shall include special assessment coverage of not

268

less than $2,000 per occurrence. Each insurance policy issued to

269

an individual unit owner providing such coverage shall be without

270

rights of subrogation against the condominium association that

271

operates the condominium in which such unit owner's unit is

272

located.

273

     1. All improvements or additions to the condominium

274

property that benefit less than all unit owners shall be insured

275

by the unit owner or owners having the use thereof, or may be

276

insured by the association at the cost and expense of the unit

277

owners having the use thereof.

278

     2. The association shall require each owner to provide

279

evidence of a currently effective policy of hazard and liability

280

insurance upon request, but not more frequently than annually.

281

Upon the failure of an owner to provide a certificate of

282

insurance issued by an insurer approved to write such insurance

283

in the state within 30 days of a written request, the association

284

shall be entitled but shall not be obligated to purchase a policy

285

of insurance on behalf of an owner, and the cost thereof,

286

together with reconstruction costs undertaken by the association,

287

which are the responsibility of the unit owner may be collected

288

in the manner provided for collection of assessments in s.

289

718.116.

290

     3. All reconstruction work after a casualty loss shall be

291

undertaken by the association except as otherwise permitted

292

herein. A unit owner may undertake reconstruction work on

293

portions of the unit with the prior written consent of the board

294

of administration, which may be conditioned upon the approval of

295

the repair methods, the qualifications of the proposed

296

contractor, and the contract that is used for that purpose. A

297

unit owner shall obtain all required governmental permits and

298

approvals prior to commencing reconstruction.

299

     4. Unit owners shall be responsible for the cost of

300

reconstruction of any portions of the condominium property for

301

which the unit owner is required to carry casualty insurance, and

302

any such reconstruction work undertaken by the association shall

303

be chargeable to the unit and enforceable as an assessment

304

pursuant to s. 718.116. The association is hereby designated as

305

an additional named insured and loss payee on all casualty

306

insurance policies issued to unit owners in the condominium

307

operated by the association.

308

     5. A multicondominium association may elect, by a majority

309

vote of the collective members of the condominiums operated by

310

the association, to operate such condominiums as a single

311

condominium for purposes of insurance matters, including, but not

312

limited to, the purchase of the hazard insurance required by this

313

section and the apportionment of deductibles and damages in

314

excess of coverage. The election to aggregate the treatment of

315

insurance premiums, deductibles, and excess damages shall be

316

treated as an amendment to the declaration of all condominiums

317

operated by the association, and the costs of insurance shall be

318

stated in the association budget. The amendments shall be

319

recorded as required by s. 718.110.

320

     (h) The association shall obtain and maintain adequate

321

insurance or fidelity bonding of all persons who control or

322

disburse funds of the association. The insurance policy or

323

fidelity bond must cover the maximum funds that will be in the

324

custody of the association or its management agent at any one

325

time. As used in this paragraph, the term "persons who control or

326

disburse funds of the association" includes, but is not limited

327

to, those individuals authorized to sign checks and the

328

president, secretary, and treasurer of the association. The

329

association shall bear the cost of bonding.

330

     (i) The association has the authority to amend the

331

declaration of condominium, without regard to any requirement for

332

mortgagee approval of amendments affecting insurance

333

requirements, to conform the declaration of condominium to the

334

coverage requirements of this subsection.

335

     (j) Any portion of the condominium property that the

336

association is required to insure against casualty loss pursuant

337

to paragraph (f) and that is damaged by casualty shall be

338

reconstructed, repaired, or replaced, as necessary, by the

339

association as a common expense. All hazard insurance

340

deductibles, uninsured losses, and other damages in excess of

341

hazard insurance coverage under the hazard insurance policies

342

maintained by the association shall be a common expense of the

343

condominium, however:

344

     1. A unit owner shall be responsible for the costs of

345

repair or replacement of any portion of the condominium property

346

not paid for by insurance proceeds, when such damage is caused by

347

intentional conduct, negligence, or failure to comply with the

348

terms of the declaration or the rules of the association by a

349

unit owner, the members of his or her family, unit occupants,

350

tenants, guests, or invitees, and without compromise of the

351

subrogation rights of any insurer as set forth in paragraph (g).

352

     2. The provisions of subparagraph 1. regarding the

353

financial responsibility of a unit owner for the costs of

354

repairing or replacing other portions of the condominium property

355

also applies to the costs of repair or replacement of personal

356

property of other unit owners or the association, as well as

357

other property, whether real or personal, that the unit owners

358

are required to insure under paragraph (g).

359

     3. To the extent the cost of repair or reconstruction for

360

which the unit owner is responsible under this paragraph is

361

reimbursed to the association by insurance proceeds, and, to the

362

extent the association has collected the cost of such repair or

363

reconstruction from the unit owner, the association shall

364

reimburse the unit owner without the waiver of any rights of

365

subrogation.

366

     4. The association shall not be obligated to pay for repair

367

or reconstruction or repairs of casualty losses as a common

368

expense where the casualty losses were known or should have been

369

known to a unit owner and were not reported to the association

370

until after the insurance claim of the association for that

371

casualty has been settled and resolved with finality or is

372

considered untimely filed by the insurer and denied on that

373

basis.

374

     (k) An association may, upon the approval of a majority of

375

the total voting interests in the association, opt out of the

376

provisions in paragraph (j) for the allocation of repair or

377

reconstruction expenses and allocate repair or reconstruction

378

expenses in the manner provided in the declaration as originally

379

recorded or as amended. Such vote may be approved by the voting

380

interests of the association without regard to any mortgagee

381

consent requirements.

382

     (l) In a multicondominium association that has not

383

consolidated its financial operations under subsection (6), any

384

condominium operated by the association may opt out of the

385

provisions of paragraph (j) with the approval of a majority of

386

the total voting interests in that condominium. Such vote may be

387

approved by the voting interests without regard to any mortgagee

388

consent requirements.

389

     (m) Any association or condominium voting to opt out of the

390

guidelines for repair or reconstruction expenses in paragraph (j)

391

must record a notice setting forth the date of the opt out vote

392

and the official records book and page at which the declaration

393

is recorded. The opt out shall be effective upon the date of

394

recording of the notice in the public records by the association.

395

An association that has voted to opt out of paragraph (j) may

396

reverse that decision by the same vote required under paragraphs

397

(k) and (l), and notice thereof shall be recorded in the official

398

records.

399

     (n) The association shall not be obligated to pay for any

400

reconstruction or repair expenses due to casualty loss to any

401

improvements installed by a current or former owner of the unit

402

or by the developer where the improvement benefits only the unit

403

for which it was installed and is not part of the standard

404

improvements installed by the developer on all units as part of

405

original construction, whether or not such improvement is located

406

within the unit, except to the extent of any insurance recovery

407

specifically for any such improvements. Therefore, the

408

Legislature requires a report to be prepared by the Office of

409

Insurance Regulation of the Department of Financial Services for

410

publication 18 months from the effective date of this act,

411

evaluating premium increases or decreases for associations, unit

412

owner premium increases or decreases, recommended changes to

413

better define common areas, or any other information the Office

414

of Insurance Regulation deems appropriate.

415

     (a) A unit-owner controlled association operating a

416

residential condominium shall use its best efforts to obtain and

417

maintain adequate insurance to protect the association, the

418

association property, the common elements, and the condominium

419

property required to be insured by the association pursuant to

420

paragraph (b). If the association is developer controlled, the

421

association shall exercise due diligence to obtain and maintain

422

such insurance. Failure to obtain and maintain adequate insurance

423

during any period of developer control shall constitute a breach

424

of fiduciary responsibility by the developer-appointed members of

425

the board of directors of the association, unless said members

426

can show that despite such failure, they have exercised due

427

diligence. The declaration of condominium as originally recorded,

428

or amended pursuant to procedures provided therein, may require

429

that condominium property consisting of freestanding buildings

430

where there is no more than one building in or on such unit need

431

not be insured by the association if the declaration requires the

432

unit owner to obtain adequate insurance for the condominium

433

property. An association may also obtain and maintain liability

434

insurance for directors and officers, insurance for the benefit

435

of association employees, and flood insurance for common

436

elements, association property, and units. Adequate insurance,

437

regardless of any requirement in the declaration of condominium

438

for coverage by the association for "full insurable value,"

439

"replacement cost," or the like, may include reasonable

440

deductibles as determined by the board based upon available funds

441

or predetermined assessment authority at the time that the

442

insurance is obtained.

443

     1. Windstorm insurance coverage for a group of no fewer

444

than three communities created and operating under this chapter,

445

chapter 719, chapter 720, or chapter 721 may be obtained and

446

maintained for the communities if the insurance coverage is

447

sufficient to cover an amount equal to the probable maximum loss

448

for the communities for a 250-year windstorm event. Such probable

449

maximum loss must be determined through the use of a competent

450

model that has been accepted by the Florida Commission on

451

Hurricane Loss Projection Methodology. Such insurance coverage is

452

deemed adequate windstorm insurance for the purposes of this

453

section.

454

     2. An association or group of associations may self-insure

455

against claims against the association, the association property,

456

and the condominium property required to be insured by an

457

association, upon compliance with the applicable provisions of

458

ss. 624.460-624.488, which shall be considered adequate insurance

459

for the purposes of this section. A copy of each policy of

460

insurance in effect shall be made available for inspection by

461

unit owners at reasonable times.

462

     (b) Every hazard insurance policy issued or renewed on or

463

after January 1, 2004, to protect the condominium shall provide

464

primary coverage for:

465

     1. All portions of the condominium property located outside

466

the units;

467

     2. The condominium property located inside the units as

468

such property was initially installed, or replacements thereof of

469

like kind and quality and in accordance with the original plans

470

and specifications or, if the original plans and specifications

471

are not available, as they existed at the time the unit was

472

initially conveyed; and

473

     3. All portions of the condominium property for which the

474

declaration of condominium requires coverage by the association.

475

476

Anything to the contrary notwithstanding, the terms "condominium

477

property," "building," "improvements," "insurable improvements,"

478

"common elements," "association property," or any other term

479

found in the declaration of condominium which defines the scope

480

of property or casualty insurance that a condominium association

481

must obtain shall exclude all floor, wall, and ceiling coverings,

482

electrical fixtures, appliances, air conditioner or heating

483

equipment, water heaters, water filters, built-in cabinets and

484

countertops, and window treatments, including curtains, drapes,

485

blinds, hardware, and similar window treatment components, or

486

replacements of any of the foregoing which are located within the

487

boundaries of a unit and serve only one unit and all air

488

conditioning compressors that service only an individual unit,

489

whether or not located within the unit boundaries. The foregoing

490

is intended to establish the property or casualty insuring

491

responsibilities of the association and those of the individual

492

unit owner and do not serve to broaden or extend the perils of

493

coverage afforded by any insurance contract provided to the

494

individual unit owner. Beginning January 1, 2004, the association

495

shall have the authority to amend the declaration of condominium,

496

without regard to any requirement for mortgagee approval of

497

amendments affecting insurance requirements, to conform the

498

declaration of condominium to the coverage requirements of this

499

section.

500

     (c) Every hazard insurance policy issued or renewed on or

501

after January 1, 2004, to an individual unit owner shall provide

502

that the coverage afforded by such policy is excess over the

503

amount recoverable under any other policy covering the same

504

property. Each insurance policy issued to an individual unit

505

owner providing such coverage shall be without rights of

506

subrogation against the condominium association that operates the

507

condominium in which such unit owner's unit is located. All real

508

or personal property located within the boundaries of the unit

509

owner's unit which is excluded from the coverage to be provided

510

by the association as set forth in paragraph (b) shall be insured

511

by the individual unit owner.

512

     (d) The association shall obtain and maintain adequate

513

insurance or fidelity bonding of all persons who control or

514

disburse funds of the association. The insurance policy or

515

fidelity bond must cover the maximum funds that will be in the

516

custody of the association or its management agent at any one

517

time. As used in this paragraph, the term "persons who control or

518

disburse funds of the association" includes, but is not limited

519

to, those individuals authorized to sign checks and the

520

president, secretary, and treasurer of the association. The

521

association shall bear the cost of bonding.

522

     (12)  OFFICIAL RECORDS.--

523

     (b)1. The official records of the association shall be

524

maintained within the state.

525

     2. Subject to paragraph (c), a unit owner may request in

526

writing that the records of the association identified in the

527

request be made available to him or her. The board, or its

528

designee, shall acknowledge the request, in writing, within 5

529

days of receipt of the request. The acknowledgement will include

530

the date, time, and place at which the records will be made

531

available. That date shall not be more than 10 working days after

532

receipt of the request.

533

     3. For purposes of this paragraph, "available" means having

534

the originals or a copy of the official records of the

535

association available for inspection or copying at a location

536

within 30 miles driving distance from the condominium property.

537

The records of the association shall be made available to a unit

538

owner within 5 working days after receipt of written request by

539

the board or its designee. This paragraph may be complied with by

540

having a copy of the official records of the association

541

available for inspection or copying on the condominium property

542

or association property.

543

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

544

inspection by any association member or the authorized

545

representative of such member at all reasonable times. The right

546

to inspect the records includes the right to make or obtain

547

copies, at the reasonable expense, if any, of the association

548

member. The association may adopt reasonable rules regarding the

549

frequency, time, location, notice, and manner of record

550

inspections and copying. The failure of an association to provide

551

the records within 10 working days after receipt of a written

552

request shall create a rebuttable presumption that the

553

association willfully failed to comply with this paragraph. A

554

unit owner who is denied access to official records is entitled

555

to the actual damages or minimum damages for the association's

556

willful failure to comply with this paragraph. The minimum

557

damages shall be $50 per calendar day up to 10 days, the

558

calculation to begin on the 11th working day after receipt of the

559

written request. The failure to permit inspection of the

560

association records as provided herein entitles any person

561

prevailing in an enforcement action to recover reasonable

562

attorney's fees from the person in control of the records who,

563

directly or indirectly, knowingly denied access to the records

564

for inspection. The association shall maintain an adequate number

565

of copies of the declaration, articles of incorporation, bylaws,

566

and rules, and all amendments to each of the foregoing, as well

567

as the question and answer sheet provided for in s. 718.504 and

568

year-end financial information required in this section on the

569

condominium property to ensure their availability to unit owners

570

and prospective purchasers, and may charge its actual costs for

571

preparing and furnishing these documents to those requesting the

572

same. Notwithstanding the provisions of this paragraph, the

573

following records shall not be accessible to unit owners:

574

     1.  Any record protected by the lawyer-client privilege as

575

described in s. 90.502; and any record protected by the work-

576

product privilege, including any record prepared by an

577

association attorney or prepared at the attorney's express

578

direction; which reflects a mental impression, conclusion,

579

litigation strategy, or legal theory of the attorney or the

580

association, and which was prepared exclusively for civil or

581

criminal litigation or for adversarial administrative

582

proceedings, or which was prepared in anticipation of imminent

583

civil or criminal litigation or imminent adversarial

584

administrative proceedings until the conclusion of the litigation

585

or adversarial administrative proceedings.

586

     2.  Information obtained by an association in connection

587

with the approval of the lease, sale, or other transfer of a

588

unit.

589

     3.  Medical records of unit owners.

590

     4. The dates of birth, social security numbers, drivers'

591

license numbers, financial account numbers, and credit account

592

numbers of unit owners and any persons residing in the units.

593

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

594

the fiscal year, or annually on a date provided in the bylaws,

595

the association shall prepare and complete, or contract for the

596

preparation and completion of, a financial report for the

597

preceding fiscal year. Within 21 days after the final financial

598

report is completed by the association or received from the third

599

party, but not later than 120 days after the end of the fiscal

600

year or other date as provided in the bylaws, the association

601

shall mail to each unit owner at the address last furnished to

602

the association by the unit owner, or hand deliver to each unit

603

owner, a copy of the financial report or a notice that a copy of

604

the financial report will be mailed or hand delivered to the unit

605

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

606

unit owner. The division shall adopt rules setting forth uniform

607

accounting principles and standards to be used by all

608

associations and shall adopt rules addressing financial reporting

609

requirements for multicondominium associations. In adopting such

610

rules, the division shall consider the number of members and

611

annual revenues of an association. Financial reports shall be

612

prepared as follows:

613

     (a)  An association that meets the criteria of this

614

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

615

financial statements in accordance with generally accepted

616

accounting principles. The financial statements shall be based

617

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

618

     1. An association with total annual revenues of $150,000

619

$100,000 or more, but less than $300,000 $200,000, shall prepare

620

compiled financial statements.

621

     2.  An association with total annual revenues of at least  

622

$300,000 $200,000, but less than $600,000 $400,000, shall

623

prepare reviewed financial statements.

624

     3. An association with total annual revenues of $600,000

625

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

626

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

627

than $150,000 $100,000 shall prepare a report of cash receipts

628

and expenditures.

629

     2.  An association which operates less than 50 units,

630

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

631

report of cash receipts and expenditures in lieu of financial

632

statements required by paragraph (a).

633

     3.  A report of cash receipts and disbursements must

634

disclose the amount of receipts by accounts and receipt

635

classifications and the amount of expenses by accounts and

636

expense classifications, including, but not limited to, the

637

following, as applicable: costs for security, professional and

638

management fees and expenses, taxes, costs for recreation

639

facilities, expenses for refuse collection and utility services,

640

expenses for lawn care, costs for building maintenance and

641

repair, insurance costs, administration and salary expenses, and

642

reserves accumulated and expended for capital expenditures,

643

deferred maintenance, and any other category for which the

644

association maintains reserves.

645

     (c)  An association may prepare or cause to be prepared,

646

without a meeting of or approval by the unit owners:

647

     1.  Compiled, reviewed, or audited financial statements, if

648

the association is required to prepare a report of cash receipts

649

and expenditures;

650

     2.  Reviewed or audited financial statements, if the

651

association is required to prepare compiled financial statements;

652

or

653

     3.  Audited financial statements if the association is

654

required to prepare reviewed financial statements.

655

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

656

present at a properly called meeting of the association, an

657

association may prepare or cause to be prepared:

658

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

659

compiled, reviewed, or audited financial statement;

660

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

661

financial statement in lieu of a reviewed or audited financial

662

statement; or

663

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

664

financial statement, or a reviewed financial statement in lieu of

665

an audited financial statement.

666

667

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

668

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

669

the vote is taken. This paragraph shall not apply to fiscal year

670

financial statements of an association subject to paragraph (a)

671

if financial statements at a level lower than required by

672

paragraph (a) were prepared for each of the prior 3 consecutive

673

fiscal years. With respect to an association to which the

674

developer has not turned over control of the association, all

675

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

676

to the preparation of financial reports for the first 2 fiscal

677

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

678

year in which the declaration is recorded. Thereafter, all unit

679

owners except the developer may vote on such issues until control

680

is turned over to the association by the developer.

681

     Section 5.  Paragraphs (c), (d), and (f) of subsection (2)

682

of section 718.112, Florida Statutes, are amended to read:

683

     718.112  Bylaws.--

684

     (2)  REQUIRED PROVISIONS.--The bylaws shall provide for the

685

following and, if they do not do so, shall be deemed to include

686

the following:

687

     (c)  Board of administration meetings.--

688

     1. Meetings of the board of administration at which a

689

quorum of the members is present shall be open to all unit

690

owners. Meetings shall be conducted using generally accepted

691

parliamentary rules of order. Any unit owner may tape record or

692

videotape meetings of the board of administration. The right to

693

attend such meetings includes the right to speak at such meetings

694

with reference to all designated agenda items. The division shall

695

adopt reasonable rules governing the tape recording and

696

videotaping of the meeting. The association may adopt written

697

reasonable rules governing the frequency, duration, and manner of

698

unit owner statements. Adequate notice of all meetings, which

699

notice shall specifically incorporate an identification of agenda

700

items, shall be posted conspicuously on the condominium property

701

at least 48 continuous hours preceding the meeting except in an

702

emergency. Any item not included on the notice may be taken up on

703

an emergency basis by at least a majority plus one of the members

704

of the board. Such emergency action shall be noticed and ratified

705

at the next regular meeting of the board. However, written notice

706

of any meeting at which nonemergency special assessments, or at

707

which amendment to rules regarding unit use, will be considered

708

shall be mailed, delivered, or electronically transmitted to the

709

unit owners and posted conspicuously on the condominium property

710

not less than 14 days prior to the meeting. Evidence of

711

compliance with this 14-day notice shall be made by an affidavit

712

executed by the person providing the notice and filed among the

713

official records of the association. Upon notice to the unit

714

owners, the board shall by duly adopted rule designate a specific

715

location on the condominium property or association property upon

716

which all notices of board meetings shall be posted. If there is

717

no condominium property or association property upon which

718

notices can be posted, notices of board meetings shall be mailed,

719

delivered, or electronically transmitted at least 14 days before

720

the meeting to the owner of each unit. In lieu of or in addition

721

to the physical posting of notice of any meeting of the board of

722

administration on the condominium property, the association may,

723

by reasonable rule, adopt a procedure for conspicuously posting

724

and repeatedly broadcasting the notice and the agenda on a

725

closed-circuit cable television system serving the condominium

726

association. However, if broadcast notice is used in lieu of a

727

notice posted physically on the condominium property, the notice

728

and agenda must be broadcast at least four times every broadcast

729

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

730

this section. When broadcast notice is provided, the notice and

731

agenda must be broadcast in a manner and for a sufficient

732

continuous length of time so as to allow an average reader to

733

observe the notice and read and comprehend the entire content of

734

the notice and the agenda. Notice of any meeting in which regular

735

assessments against unit owners are to be considered for any

736

reason shall specifically contain a statement that assessments

737

will be considered and the nature of any such assessments.

738

Meetings of a committee to take final action on behalf of the

739

board or make recommendations to the board regarding the

740

association budget are subject to the provisions of this

741

paragraph. Meetings of a committee that does not take final

742

action on behalf of the board or make recommendations to the

743

board regarding the association budget are subject to the

744

provisions of this section, unless those meetings are exempted

745

from this section by the bylaws of the association.

746

Notwithstanding any other law, the requirement that board

747

meetings and committee meetings be open to the unit owners is

748

inapplicable to meetings between the board or a committee and the

749

association's attorney, with respect to proposed or pending

750

litigation, when the meeting is held for the purpose of seeking

751

or rendering legal advice.

752

     2. If 20 percent of the total voting interests petition the

753

board to address an item of business, the board shall at its next

754

regular board meeting or at a special meeting of the board, but

755

not later than 60 days after the receipt of the petition, take

756

the petitioned item up on an agenda. The board shall give all

757

members notice of the meeting at which the petitioned item shall

758

be addressed in accordance with subparagraph 1. Each member shall

759

have the right to speak for at least 3 minutes on each matter

760

placed on the agenda by petition, provided that the member signs

761

the sign-up sheet, if one is provided, or submits a written

762

request to speak prior to the meeting. Other than addressing the

763

petitioned item at the meeting, the board is not obligated to

764

take any other action requested by the petition.

765

     (d)  Unit owner meetings.--

766

     1. There shall be an annual meeting of the unit owners. All

767

meetings of the unit owners, including the annual meeting, shall

768

be held at the place and time provided in the association's

769

bylaws or, if the bylaws are silent, at a time and place

770

specified by the board that is within the state and within 20

771

miles of the condominium property. Unless the bylaws provide

772

otherwise, a vacancy on the board caused by the expiration of a

773

director's term shall be filled by electing a new board member,

774

and the election shall be by secret ballot; however, if the

775

number of vacancies equals or exceeds the number of candidates,

776

no election is required. If there is no provision in the bylaws

777

for terms of the members of the board, the terms of all members

778

of the board shall expire upon the election of their successors

779

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

780

for board membership shall comply with subparagraph 3. A person

781

who has been convicted of any felony by any court of record in

782

the United States and who has not had his or her right to vote

783

restored pursuant to law in the jurisdiction of his or her

784

residence is not eligible for board membership. The validity of

785

an action by the board is not affected if it is later determined

786

that a member of the board is ineligible for board membership due

787

to having been convicted of a felony.

788

     2.  The bylaws shall provide the method of calling meetings

789

of unit owners, including annual meetings. Written notice, which

790

notice must include an agenda, shall be mailed, hand delivered,

791

or electronically transmitted to each unit owner at least 14 days

792

prior to the annual meeting and shall be posted in a conspicuous

793

place on the condominium property at least 14 continuous days

794

preceding the annual meeting. Upon notice to the unit owners, the

795

board shall by duly adopted rule designate a specific location on

796

the condominium property or association property upon which all

797

notices of unit owner meetings shall be posted; however, if there

798

is no condominium property or association property upon which

799

notices can be posted, this requirement does not apply. In lieu

800

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

801

meeting of the unit owners on the condominium property, the

802

association may, by reasonable rule, adopt a procedure for

803

conspicuously posting and repeatedly broadcasting the notice and

804

the agenda on a closed-circuit cable television system serving

805

the condominium association. However, if broadcast notice is used

806

in lieu of a notice posted physically on the condominium

807

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

808

times every broadcast hour of each day that a posted notice is

809

otherwise required under this section. When broadcast notice is

810

provided, the notice and agenda must be broadcast in a manner and

811

for a sufficient continuous length of time so as to allow an

812

average reader to observe the notice and read and comprehend the

813

entire content of the notice and the agenda. Unless a unit owner

814

waives in writing the right to receive notice of the annual

815

meeting, such notice shall be hand delivered, mailed, or

816

electronically transmitted to each unit owner. Notice for

817

meetings and notice for all other purposes shall be mailed to

818

each unit owner at the address last furnished to the association

819

by the unit owner, or hand delivered to each unit owner. However,

820

if a unit is owned by more than one person, the association shall

821

provide notice, for meetings and all other purposes, to that one

822

address which the developer initially identifies for that purpose

823

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

824

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

825

the owners of the unit do not agree, to the address provided on

826

the deed of record. An officer of the association, or the manager

827

or other person providing notice of the association meeting,

828

shall provide an affidavit or United States Postal Service

829

certificate of mailing, to be included in the official records of

830

the association affirming that the notice was mailed or hand

831

delivered, in accordance with this provision.

832

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

833

ballot or voting machine. Proxies shall in no event be used in

834

electing the board, either in general elections or elections to

835

fill vacancies caused by recall, resignation, or otherwise,

836

unless otherwise provided in this chapter. Not less than 60 days

837

before a scheduled election, the association shall mail, deliver,

838

or electronically transmit, whether by separate association

839

mailing or included in another association mailing, delivery, or

840

transmission, including regularly published newsletters, to each

841

unit owner entitled to a vote, a first notice of the date of the

842

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

843

a candidate for the board must give written notice to the

844

association not less than 40 days before a scheduled election.

845

Together with the written notice and agenda as set forth in

846

subparagraph 2., the association shall mail, deliver, or

847

electronically transmit a second notice of the election to all

848

unit owners entitled to vote therein, together with a ballot

849

which shall list all candidates. Upon request of a candidate, the

850

association shall include an information sheet, no larger than

851

81/2 inches by 11 inches, which must be furnished by the

852

candidate not less than 35 days before the election, to be

853

included with the mailing, delivery, or transmission of the

854

ballot, with the costs of mailing, delivery, or electronic

855

transmission and copying to be borne by the association. The

856

association is not liable for the contents of the information

857

sheets prepared by the candidates. In order to reduce costs, the

858

association may print or duplicate the information sheets on both

859

sides of the paper. The division shall by rule establish voting

860

procedures consistent with the provisions contained herein,

861

including rules establishing procedures for giving notice by

862

electronic transmission and rules providing for the secrecy of

863

ballots. Elections shall be decided by a plurality of those

864

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

865

least 20 percent of the eligible voters must cast a ballot in

866

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

867

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

868

and any such ballots improperly cast shall be deemed invalid,

869

provided any unit owner who violates this provision may be fined

870

by the association in accordance with s. 718.303. A unit owner

871

who needs assistance in casting the ballot for the reasons stated

872

in s. 101.051 may obtain assistance in casting the ballot. The

873

regular election shall occur on the date of the annual meeting.

874

The provisions of this subparagraph shall not apply to timeshare

875

condominium associations. Notwithstanding the provisions of this

876

subparagraph, an election is not required unless more candidates

877

file notices of intent to run or are nominated than board

878

vacancies exist.

879

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

880

or the applicable declaration or bylaws, including, but not

881

limited to, the approval requirement in s. 718.111(8), shall be

882

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

883

subject to all requirements of this chapter or the applicable

884

condominium documents relating to unit owner decisionmaking,

885

except that unit owners may take action by written agreement,

886

without meetings, on matters for which action by written

887

agreement without meetings is expressly allowed by the applicable

888

bylaws or declaration or any statute that provides for such

889

action.

890

     5.  Unit owners may waive notice of specific meetings if

891

allowed by the applicable bylaws or declaration or any statute.

892

If authorized by the bylaws, notice of meetings of the board of

893

administration, unit owner meetings, except unit owner meetings

894

called to recall board members under paragraph (j), and committee

895

meetings may be given by electronic transmission to unit owners

896

who consent to receive notice by electronic transmission.

897

     6.  Unit owners shall have the right to participate in

898

meetings of unit owners with reference to all designated agenda

899

items. However, the association may adopt reasonable rules

900

governing the frequency, duration, and manner of unit owner

901

participation.

902

     7.  Any unit owner may tape record or videotape a meeting of

903

the unit owners subject to reasonable rules adopted by the

904

division.

905

     8.  Unless otherwise provided in the bylaws, any vacancy

906

occurring on the board before the expiration of a term may be

907

filled by the affirmative vote of the majority of the remaining

908

directors, even if the remaining directors constitute less than a

909

quorum, or by the sole remaining director. In the alternative, a

910

board may hold an election to fill the vacancy, in which case the

911

election procedures must conform to the requirements of

912

subparagraph 3. unless the association has opted out of the

913

statutory election process, in which case the bylaws of the

914

association control. Unless otherwise provided in the bylaws, a

915

board member appointed or elected under this section shall fill

916

the vacancy for the unexpired term of the seat being filled.

917

Filling vacancies created by recall is governed by paragraph (j)

918

and rules adopted by the division.

919

920

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

921

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

922

interests, provide for different voting and election procedures

923

in its bylaws, which vote may be by a proxy specifically

924

delineating the different voting and election procedures. The

925

different voting and election procedures may provide for

926

elections to be conducted by limited or general proxy.

927

     (f)  Annual budget.--

928

     1.  The proposed annual budget of common expenses shall be

929

detailed and shall show the amounts budgeted by accounts and

930

expense classifications, including, if applicable, but not

931

limited to, those expenses listed in s. 718.504(21). A

932

multicondominium association shall adopt a separate budget of

933

common expenses for each condominium the association operates and

934

shall adopt a separate budget of common expenses for the

935

association. In addition, if the association maintains limited

936

common elements with the cost to be shared only by those entitled

937

to use the limited common elements as provided for in s.

938

718.113(1), the budget or a schedule attached thereto shall show

939

amounts budgeted therefor. If, after turnover of control of the

940

association to the unit owners, any of the expenses listed in s.

941

718.504(21) are not applicable, they need not be listed.

942

     2.  In addition to annual operating expenses, the budget

943

shall include reserve accounts for those items of capital

944

expenditures and deferred maintenance that occur less frequently

945

than annually. These accounts shall include, but are not limited

946

to, roof replacement, building painting, and pavement

947

resurfacing, regardless of the amount of deferred maintenance

948

expense or replacement cost, and for any other item for which the

949

deferred maintenance expense or replacement cost exceeds the

950

greater of $10,000 or $300 multiplied by the number of units. The

951

amount to be reserved shall be computed by means of a formula

952

which is based upon estimated remaining useful life and estimated

953

replacement cost or deferred maintenance expense of each reserve

954

item. The association may adjust replacement reserve assessments

955

annually to take into account any changes in estimates or

956

extension of the useful life of a reserve item caused by deferred

957

maintenance. This subsection does not apply to an adopted budget

958

in which the members of an association have determined, by a

959

majority vote at a duly called meeting of the association, to

960

provide no reserves or less reserves than required by this

961

subsection. However, prior to turnover of control of an

962

association by a developer to unit owners other than a developer

963

pursuant to s. 718.301, the developer may vote to waive the

964

reserves or reduce the funding of reserves for the first 2 fiscal

965

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

966

year in which the initial declaration is recorded, after which

967

time reserves may be waived or reduced only upon the vote of a

968

majority of all nondeveloper voting interests voting in person or

969

by limited proxy at a duly called meeting of the association. If

970

a meeting of the unit owners has been called to determine whether

971

to waive or reduce the funding of reserves, and no such result is

972

achieved or a quorum is not attained, the reserves as included in

973

the budget shall go into effect. After the turnover, the

974

developer may vote its voting interest to waive or reduce the

975

funding of reserves.

976

     3.  Reserve funds and any interest accruing thereon shall

977

remain in the reserve account or accounts, and shall be used only

978

for authorized reserve expenditures unless their use for other

979

purposes is approved in advance by a majority vote at a duly

980

called meeting of the association. Prior to turnover of control

981

of an association by a developer to unit owners other than the

982

developer pursuant to s. 718.301, the developer-controlled

983

association shall not vote to use reserves for purposes other

984

than that for which they were intended without the approval of a

985

majority of all nondeveloper voting interests, voting in person

986

or by limited proxy at a duly called meeting of the association.

987

     4.  The only voting interests which are eligible to vote on

988

questions that involve waiving or reducing the funding of

989

reserves, or using existing reserve funds for purposes other than

990

purposes for which the reserves were intended, are the voting

991

interests of the units subject to assessment to fund the reserves

992

in question.

993

     Section 6.  Paragraph (a) of subsection (1) of section

994

718.115, Florida Statutes, is amended to read:

995

     718.115  Common expenses and common surplus.--

996

     (1)(a)  Common expenses include the expenses of the

997

operation, maintenance, repair, replacement, or protection of the

998

common elements and association property, costs of carrying out

999

the powers and duties of the association, and any other expense,

1000

whether or not included in the foregoing, designated as common

1001

expense by this chapter, the declaration, the documents creating

1002

the association, or the bylaws. Common expenses also include

1003

reasonable transportation services, insurance for directors and

1004

officers, road maintenance and operation expenses, in-house

1005

communications, and security services, which are reasonably

1006

related to the general benefit of the unit owners even if such

1007

expenses do not attach to the common elements or property of the

1008

condominium. However, such common expenses must either have been

1009

services or items provided on or after the date control of the

1010

association is transferred from the developer to the unit owners

1011

or must be services or items provided for in the condominium

1012

documents or bylaws. The expenses of items or services required

1013

by federal, state, or local government to be installed,

1014

maintained, or supplied to the condominium property by the

1015

association, including, but not limited to, fire safety

1016

equipment, or water and sewer service where a master meter serves

1017

the condominium, shall be common expenses whether or not these

1018

items or services are specifically identified as common expenses

1019

in the declaration, articles, or bylaws of the association.

1020

     Section 7.  Paragraph (c) of subsection (5) of section

1021

718.116, Florida Statutes, is redesignated as paragraph (d), a

1022

new paragraph (c) is added to that subsection, and subsection

1023

(10) of that section is amended, to read:

1024

     718.116  Assessments; liability; lien and priority;

1025

interest; collection.--

1026

     (5)

1027

     (c) Any claim of lien filed on or after January 1, 2009,

1028

shall not be valid unless it includes a statement from the

1029

executing officer or authorized agent attesting that on a stated

1030

date, which shall be no later than 30 days prior to the date of

1031

filing, the record owner was given written notice of the amount

1032

due and of the association's intention to file a claim of lien if

1033

the amount due has not been fully paid within 30 days following

1034

the date of mailing or delivery of the notice. The statement

1035

shall also attest that the notice described was given by personal

1036

delivery to the unit owner or by mailing a copy thereof by

1037

certified or registered mail, return receipt, addressed to the

1038

unit owner at his or her last known address.

1039

     (d)(c) By recording a notice in substantially the following

1040

form, a unit owner or the unit owner's agent or attorney may

1041

require the association to enforce a recorded claim of lien

1042

against his or her condominium parcel:

1043

1044

NOTICE OF CONTEST OF LIEN

1045

1046

     TO:   (Name and address of association)   You are notified

1047

that the undersigned contests the claim of lien filed by you on

1048

_____,   (year)  , and recorded in Official Records Book _____ at

1049

Page _____, of the public records of _____ County, Florida, and

1050

that the time within which you may file suit to enforce your lien

1051

is limited to 90 days from the date of service of this notice.

1052

Executed this _____ day of _____,   (year)  .

1053

1054

Signed:   (Owner or Attorney)

1055

1056

After notice of contest of lien has been recorded, the clerk of

1057

the circuit court shall mail a copy of the recorded notice to the

1058

association by certified mail, return receipt requested, at the

1059

address shown in the claim of lien or most recent amendment to it

1060

and shall certify to the service on the face of the notice.

1061

Service is complete upon mailing. After service, the association

1062

has 90 days in which to file an action to enforce the lien; and,

1063

if the action is not filed within the 90-day period, the lien is

1064

void. However, the 90-day period shall be extended for any length

1065

of time that the association is prevented from filing its action

1066

because of an automatic stay resulting from the filing of a

1067

bankruptcy petition by the unit owner or by any other person

1068

claiming an interest in the parcel.

1069

     (10)  The specific purpose or purposes of any special

1070

assessment, including any contingent special assessment levied in

1071

conjunction with the purchase of an insurance policy authorized

1072

by s. 718.111(11), approved in accordance with the condominium

1073

documents shall be set forth in a written notice of such

1074

assessment sent or delivered to each unit owner. Unit owners

1075

shall be afforded no less than 60 days' advance notice to pay

1076

estimated nonemergency special assessments. The funds collected

1077

pursuant to a special assessment shall be used only for the

1078

specific purpose or purposes set forth in such notice. However,

1079

upon completion of such specific purpose or purposes, any excess

1080

funds will be considered common surplus, and may, at the

1081

discretion of the board, either be returned to the unit owners or

1082

applied as a credit toward future assessments.

1083

     Section 8.  Section 718.1265, Florida Statutes, is created

1084

to read:

1085

     718.1265 Association emergency powers.--

1086

     (1) To the extent allowed by law and unless specifically

1087

prohibited by the declaration, articles, or bylaws of an

1088

association, and consistent with the provisions of s. 617.0830,

1089

the board of administration, in response to damage caused by an

1090

event for which a state of emergency is declared pursuant to s.

1091

252.36 in the locale in which the condominium is located, may,

1092

but is not required to, exercise the following powers:

1093

     (a) Conduct board meetings and membership meetings with

1094

notice given as is practicable. Such notice may be given in any

1095

practicable manner, including publication, radio, United States

1096

mail, the Internet, public service announcements, and conspicuous

1097

posting on the condominium property or any other means the board

1098

deems reasonable under the circumstances. Notice of board

1099

decisions may be communicated as provided in this paragraph.

1100

     (b) Cancel and reschedule any association meeting.

1101

     (c) Name as assistant officers persons who are not

1102

directors, which assistant officers shall have the same authority

1103

as the executive officers to whom they are assistants during the

1104

state of emergency to accommodate the incapacity or

1105

unavailability of any officer of the association.

1106

     (d) Relocate the association's principal office or

1107

designate alternative principal offices.

1108

     (e) Enter into agreements with local counties and

1109

municipalities to assist counties and municipalities with debris

1110

removal.

1111

     (f) Implement a disaster plan before or immediately

1112

following the event for which a state of emergency is declared

1113

that may include, but is not limited to, shutting down or off

1114

elevators; electricity; water, sewer, or security systems; or air

1115

conditioners.

1116

     (g) Declare any portion of the condominium property

1117

unavailable for entry or occupancy by unit owners, family

1118

members, tenants, guests, agents, or invitees to protect the

1119

health, safety, or welfare of such persons.

1120

     (h) Require the evacuation of the condominium property in

1121

the event of a mandatory evacuation order in the locale in which

1122

the condominium is located. Should any unit owner or other

1123

occupant of a condominium fail or refuse to evacuate the

1124

condominium property where the board has required evacuation, the

1125

association shall be immune from liability for injury to persons

1126

or property arising from such failure or refusal.

1127

     (i) Determine whether the condominium property can be

1128

safely inhabited or occupied. However, such determination is not

1129

conclusive as to any determination of habitability pursuant to

1130

the declaration made by county or municipal officials in the

1131

locale in which the condominium is located.

1132

     (j) Mitigate further damage, including taking action to

1133

contract for the removal of debris, making roofing or other

1134

repairs to prevent intrusion by the elements, and shoring walls;

1135

and prevent or mitigate the spread of fungus, including, but not

1136

limited to, mold or mildew, by removing and disposing of wet

1137

drywall, insulation, carpet, cabinetry, or other fixtures, on or

1138

within the condominium property, even if the unit owner is

1139

obligated by the declaration or law to insure or replace those

1140

fixtures and to remove personal property from a unit.

1141

     (k) Contract, on behalf of any unit owner or owners, for

1142

items or services for which the owner or owners are otherwise

1143

individually responsible, but which are necessary to prevent

1144

further damage to the condominium property. In such event, the

1145

unit owner or owners on whose behalf the board has contracted are

1146

responsible for reimbursing the association for the actual costs

1147

of the items or services, and the association may use its lien

1148

authority provided by s. 718.116 to enforce collection of the

1149

charges. Without limitation, such items or services may include

1150

the drying of units, the boarding of broken windows or doors, and

1151

the replacement of damaged air conditioners or air handlers to

1152

provide climate control in the units or other portions of the

1153

property.

1154

     (l) Levy special assessments without a vote of the owners,

1155

regardless of any provision to the contrary in the declaration,

1156

articles, or bylaws of an association and regardless of the fact

1157

that such authority does not specifically appear in such

1158

documents.

1159

     (m) Use reserve funds and borrow money and pledge

1160

association assets as collateral to fund emergency repairs and

1161

carry out the duties of the association when operating funds are

1162

insufficient, without unit owner approval. This paragraph does

1163

not limit the general authority of the association to borrow

1164

money, subject to such restrictions as are contained in the

1165

declaration, articles, or bylaws.

1166

     (2) The special powers authorized under subsection (1)

1167

shall be limited to that time reasonably necessary to protect the

1168

health, safety, and welfare of the association, the unit owners,

1169

their family members, tenants, guests, agents, or invitees and

1170

shall be reasonably necessary to mitigate further damage and make

1171

emergency repairs.

1172

     Section 9.  Paragraphs (d) and (e) of subsection (1) of

1173

section 718.3025, Florida Statutes, are amended, and subsection

1174

(5) is added to that section, to read:

1175

     718.3025  Agreements for operation, maintenance, or

1176

management of condominiums; specific requirements.--

1177

     (1)  No written contract between a party contracting to

1178

provide maintenance or management services and an association

1179

which contract provides for operation, maintenance, or management

1180

of a condominium association or property serving the unit owners

1181

of a condominium shall be valid or enforceable unless the

1182

contract:

1183

     (d) Specifies a minimum number of personnel to be employed

1184

by the party contracting to provide maintenance or management

1185

services for the purpose of providing service to the association.

1186

     (e) Discloses any financial or ownership interest which the

1187

developer, if the developer is in control of the association,

1188

holds with regard to the party contracting to provide maintenance

1189

or management services.

1190

     (5) No clause in a contract subject to this section

1191

executed on or after January 1, 2009, shall be enforceable to the

1192

extent that it provides for the automatic renewal or the

1193

automatic extension of the contract.

1194

     Section 10.  Section 718.3026, Florida Statutes, is amended

1195

to read:

1196

     718.3026  Contracts for products and services; in writing;

1197

bids; exceptions.--Associations with less than 100 units may opt

1198

out of the provisions of this section if two-thirds of the unit

1199

owners vote to do so, which opt-out may be accomplished by a

1200

proxy specifically setting forth the exception from this section.

1201

Such an opt out expires 3 years following the date of the opt-out

1202

vote.

1203

     (1)  All contracts as further described herein or any

1204

contract that is not to be fully performed within 1 year after

1205

the making thereof, for the purchase, lease, or renting of

1206

materials or equipment to be used by the association in

1207

accomplishing its purposes under this chapter, and all contracts

1208

for the provision of services, shall be in writing. If a contract

1209

for the purchase, lease, or renting of materials or equipment, or

1210

for the provision of services, requires payment by the

1211

association on behalf of any condominium operated by the

1212

association in the aggregate that exceeds 5 percent of the total

1213

annual budget of the association, including reserves, the

1214

association shall obtain competitive bids for the materials,

1215

equipment, or services. Nothing contained herein shall be

1216

construed to require the association to accept the lowest bid.

1217

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

1218

employees of the association, and contracts for attorney,

1219

accountant, architect, community association manager, timeshare

1220

management firm, engineering, and landscape architect services

1221

are not subject to the provisions of this section.

1222

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

1223

renewal thereof, is not subject to the competitive bid

1224

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

1225

competitive bid procedures of this section, any renewal of that

1226

contract is not subject to such competitive bid requirements if

1227

the contract contains a provision that allows the board to cancel

1228

the contract on 30 days' notice. Materials, equipment, or

1229

services provided to a condominium under a local government

1230

franchise agreement by a franchise holder are not subject to the

1231

competitive bid requirements of this section. A contract with a

1232

manager, if made by a competitive bid, may be made for up to 3

1233

years. A condominium whose declaration or bylaws provides for

1234

competitive bidding for services may operate under the provisions

1235

of that declaration or bylaws in lieu of this section if those

1236

provisions are not less stringent than the requirements of this

1237

section.

1238

     (b)  Nothing contained herein is intended to limit the

1239

ability of an association to obtain needed products and services

1240

in an emergency.

1241

     (c)  This section shall not apply if the business entity

1242

with which the association desires to enter into a contract is

1243

the only source of supply within the county serving the

1244

association.

1245

     (d)  Nothing contained herein shall excuse a party

1246

contracting to provide maintenance or management services from

1247

compliance with s. 718.3025.

1248

     Section 11.  Subsection (3) of section 718.303, Florida

1249

Statutes, is amended to read:

1250

     718.303  Obligations of owners; waiver; levy of fine against

1251

unit by association.--

1252

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

1253

association may levy reasonable fines against a unit for the

1254

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

1255

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

1256

association bylaws, or reasonable rules of the association. No

1257

fine will become a lien against a unit. No fine may exceed $100

1258

per violation. However, a fine may be levied on the basis of each

1259

day of a continuing violation, with a single notice and

1260

opportunity for hearing, provided that no such fine shall in the

1261

aggregate exceed $1,000. No fine may be levied except after

1262

giving reasonable notice and opportunity for a hearing to the

1263

unit owner and, if applicable, its licensee or invitee. The

1264

hearing must be held before a committee of other unit owners who

1265

are neither board members nor persons residing in a board

1266

member's household. If the committee does not agree with the

1267

fine, the fine may not be levied. The provisions of this

1268

subsection do not apply to unoccupied units.

1269

     Section 12.  Subsection (4) of section 718.5012, Florida

1270

Statutes, is amended to read:

1271

     718.5012  Ombudsman; powers and duties.--The ombudsman shall

1272

have the powers that are necessary to carry out the duties of his

1273

or her office, including the following specific powers:

1274

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

1275

boards of directors, board members, community association

1276

managers, and other affected parties. The ombudsman shall develop

1277

policies and procedures to assist unit owners, boards of

1278

directors, board members, community association managers, and

1279

other affected parties to understand their rights and

1280

responsibilities as set forth in this chapter and the condominium

1281

documents governing their respective association. The ombudsman

1282

shall coordinate and assist in the preparation and adoption of

1283

educational and reference material, and shall endeavor to

1284

coordinate with private or volunteer providers of these services,

1285

so that the availability of these resources is made known to the

1286

largest possible audience.

1287

     Section 13.  Paragraph (a) of subsection (2) of section

1288

718.503, Florida Statutes, is amended to read:

1289

     718.503  Developer disclosure prior to sale; nondeveloper

1290

unit owner disclosure prior to sale; voidability.--

1291

     (2)  NONDEVELOPER DISCLOSURE.--

1292

     (a)  Each unit owner who is not a developer as defined by

1293

this chapter shall comply with the provisions of this subsection

1294

prior to the sale of his or her unit. Each prospective purchaser

1295

who has entered into a contract for the purchase of a condominium

1296

unit is entitled, at the seller's expense, to a current copy of

1297

the declaration of condominium, articles of incorporation of the

1298

association, bylaws and rules of the association, financial

1299

information required by s. 718.111, and the document entitled

1300

"Frequently Asked Questions and Answers" required by s. 718.504.

1301

On and after January 1, 2009, the prospective purchaser shall

1302

also be entitled to receive from the seller a copy of a

1303

governance form. Such form shall be provided by the division

1304

summarizing governance of condominium associations. In addition

1305

to such other information as the division considers helpful to a

1306

prospective purchaser in understanding association governance,

1307

the governance form shall address the following subjects:

1308

     1. The role of the board in conducting the day-to-day

1309

affairs of the association on behalf of, and in the best

1310

interests of, the owners.

1311

     2. The board's responsibility to provide advance notice of

1312

board and membership meetings.

1313

     3. The rights of owners to attend and speak at board and

1314

membership meetings.

1315

     4. The responsibility of the board and of owners with

1316

respect to maintenance of the condominium property.

1317

     5. The responsibility of the board and owners to abide by

1318

the condominium documents, this chapter, rules promulgated by the

1319

division, and reasonable rules promulgated by the board.

1320

     6. Owners' rights to inspect and copy association records

1321

and the limitations on such rights.

1322

     7. Remedies available to owners with respect to actions by

1323

the board which may be abusive or beyond the board's power and

1324

authority.

1325

     8. The right of the board to hire a property management

1326

firm, subject to its own primary responsibility for such

1327

management.

1328

     9. The responsibility of owners with regard to payment of

1329

regular or special assessments necessary for the operation of the

1330

property and the potential consequences of failure to pay such

1331

assessments.

1332

     10. The voting rights of owners.

1333

     11. Rights and obligations of the board in enforcement of

1334

rules in the condominium documents and rules adopted by the

1335

board.

1336

1337

The governance form shall also include the following statement in

1338

conspicuous type: "This publication is intended as an informal

1339

educational overview of condominium governance. In the event of a

1340

conflict the provisions of chapter 718, Florida Statutes; rules

1341

promulgated by the Division of Florida Land Sales, Condominiums,

1342

and Mobile Homes of the Department of Business and Professional

1343

Regulation; the provisions of the condominium documents; and

1344

reasonable rules promulgated by the condominium association's

1345

board of administration prevail over the contents of this

1346

publication."

1347

     Section 14.  Paragraphs (b) and (c) of subsection (2),

1348

paragraphs (a) and (c) of subsection (5), paragraphs (b), (c),

1349

(d), (f), and (g) of subsection (6), and paragraphs (a), (b), and

1350

(c) of subsection (7) of section 720.303, Florida Statutes, are

1351

amended, and subsection (12) is added to that section, to read:

1352

     720.303  Association powers and duties; meetings of board;

1353

official records; budgets; financial reporting; association

1354

funds; recalls.--

1355

     (2)  BOARD MEETINGS.--

1356

     (b)  Members have the right to attend all meetings of the

1357

board and to speak on any matter placed on the agenda by petition

1358

of the voting interests for at least 3 minutes on any matter

1359

placed on the agenda. Members may also address the meeting on

1360

nonagenda issues following the completion of the regular agenda

1361

during a new business heading. The association may adopt written

1362

reasonable rules expanding the right of members to speak and

1363

governing the frequency, duration, and other manner of member

1364

statements, which rules must be consistent with this paragraph

1365

and may include a sign-up sheet for members wishing to speak.

1366

Notwithstanding any other law, the requirement that board

1367

meetings and committee meetings be open to the members is

1368

inapplicable to meetings between the board or a committee to

1369

discuss proposed or pending litigation with and the association's

1370

attorney, with respect to meetings of the board held for the

1371

purpose of discussing personnel matters.

1372

     (c)  The bylaws shall provide for giving notice to parcel

1373

owners and members of all board meetings and, if they do not do

1374

so, shall be deemed to provide the following:

1375

     1. Notices of all regular board meetings must be posted in

1376

a conspicuous place in the community at least 48 hours in advance

1377

of a meeting, except in an emergency. Notice of special board

1378

meetings may be made with less than 48 hours' notice in cases of

1379

sudden, unforeseen happenings that require action to protect

1380

lives or property of the association's members. In the

1381

alternative, if notice is not posted in a conspicuous place in

1382

the community, notice of each board meeting must be mailed or

1383

delivered to each member at least 7 days before the meeting,

1384

except in an emergency. Notwithstanding this general notice

1385

requirement, for communities with more than 100 members, the

1386

bylaws may provide for a reasonable alternative to posting or

1387

mailing of notice for each board meeting, including publication

1388

of notice, provision of a schedule of board meetings, or the

1389

conspicuous posting and repeated broadcasting of the notice on a

1390

closed-circuit cable television system serving the homeowners'

1391

association. However, if broadcast notice is used in lieu of a

1392

notice posted physically in the community, the notice must be

1393

broadcast at least four times every broadcast hour of each day

1394

that a posted notice is otherwise required. When broadcast notice

1395

is provided, the notice and agenda must be broadcast in a manner

1396

and for a sufficient continuous length of time so as to allow an

1397

average reader to observe the notice and read and comprehend the

1398

entire content of the notice and the agenda. The bylaws or

1399

amended bylaws may provide for giving notice by electronic

1400

transmission in a manner authorized by law for meetings of the

1401

board of directors, committee meetings requiring notice under

1402

this section, and annual and special meetings of the members;

1403

however, a member must consent in writing to receiving notice by

1404

electronic transmission.

1405

     2.  An assessment may not be levied at a board meeting

1406

unless the notice of the meeting includes a statement that

1407

assessments will be considered and the nature of the assessments.

1408

Written notice of any meeting at which special assessments will

1409

be considered or at which amendments to rules regarding parcel

1410

use will be considered must be mailed, delivered, or

1411

electronically transmitted to the members and parcel owners and

1412

posted conspicuously on the property or broadcast on closed-

1413

circuit cable television not less than 14 days before the

1414

meeting, except in cases of sudden, unforeseen happenings that

1415

require action to protect lives or property of the association's

1416

members.

1417

     3.  Directors may not vote by proxy or by secret ballot at

1418

board meetings, except that secret ballots may be used in the

1419

election of officers. This subsection also applies to the

1420

meetings of any committee or other similar body, when a final

1421

decision will be made regarding the expenditure of association

1422

funds, and to any body vested with the power to approve or

1423

disapprove architectural decisions with respect to a specific

1424

parcel of residential property owned by a member of the

1425

community.

1426

     (5)  INSPECTION AND COPYING OF RECORDS.--The official

1427

records shall be maintained within the state and must be open to

1428

inspection and available for photocopying by members or their

1429

authorized agents at reasonable times and places within 10

1430

business days after receipt of a written request for access. This

1431

subsection may be complied with by having a copy of the official

1432

records available for inspection or copying in the community. If

1433

the association has a photocopy machine available where the

1434

records are maintained, it must provide parcel owners with copies

1435

on request during the inspection if the entire request is limited

1436

to no more than 25 pages.

1437

     (a)  The failure of an association to provide access to the

1438

records within 10 business days after receipt of a written

1439

request submitted by certified mail, return receipt requested,

1440

creates a rebuttable presumption that the association willfully

1441

failed to comply with this subsection.

1442

     (c)  The association may adopt reasonable written rules

1443

governing the frequency, time, location, notice, records to be

1444

inspected, and manner of inspections, but may not impose a

1445

requirement that a parcel owner demonstrate any proper purpose

1446

for the inspection, state any reason for the inspection, or limit

1447

a parcel owner's right to inspect records to less than one 8-hour

1448

business day per month. The association may impose fees to cover

1449

the costs of providing copies of the official records, including,

1450

without limitation, the costs of copying. The association may

1451

charge up to 50 cents per page for copies made on the

1452

association's photocopier. If the association does not have a

1453

photocopy machine available where the records are kept, or if the

1454

records requested to be copied exceed 25 pages in length, the

1455

association may have copies made by an outside vendor or

1456

association management company personnel and may charge the

1457

actual cost of copying, including any reasonable costs involving

1458

personnel fees and charges at an hourly rate for employee time to

1459

cover administrative costs to the association. The association

1460

shall maintain an adequate number of copies of the recorded

1461

governing documents, to ensure their availability to members and

1462

prospective members. Notwithstanding the provisions of this

1463

paragraph, the following records shall not be accessible to

1464

members or parcel owners:

1465

     1.  Any record protected by the lawyer-client privilege as

1466

described in s. 90.502 and any record protected by the work-

1467

product privilege, including, but not limited to, any record

1468

prepared by an association attorney or prepared at the attorney's

1469

express direction which reflects a mental impression, conclusion,

1470

litigation strategy, or legal theory of the attorney or the

1471

association and was prepared exclusively for civil or criminal

1472

litigation or for adversarial administrative proceedings or which

1473

was prepared in anticipation of imminent civil or criminal

1474

litigation or imminent adversarial administrative proceedings

1475

until the conclusion of the litigation or adversarial

1476

administrative proceedings.

1477

     2.  Information obtained by an association in connection

1478

with the approval of the lease, sale, or other transfer of a

1479

parcel.

1480

     3.  Disciplinary, health, insurance, and personnel records

1481

of the association's employees.

1482

     4.  Medical records of parcel owners or community residents.

1483

     (6)  BUDGETS.--

1484

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

1485

may include reserve accounts for capital expenditures and

1486

deferred maintenance for which the association is responsible. To

1487

the extent that such reserve accounts are not created or

1488

established pursuant to paragraph (d), funding of such reserves

1489

shall be limited to the extent that the governing documents do

1490

not limit increases in assessments, including reserves. If the

1491

budget of the association includes reserve accounts created or

1492

established pursuant to paragraph (d), such reserves shall be

1493

determined, maintained, and waived in the manner provided in this

1494

subsection. Once an association provides for reserve accounts

1495

created or established pursuant to paragraph (d) in the budget,

1496

the association shall thereafter determine, maintain, and waive

1497

reserves in compliance with this subsection. Nothing in this

1498

section precludes termination of a reserve account established

1499

pursuant to this paragraph upon approval of a majority of the

1500

voting interests of the association. Upon such approval, the

1501

terminating reserve account shall be removed from the budget.

1502

     (c)1. If the budget of the association does not provide for

1503

reserve accounts created or established pursuant to paragraph (d)

1504

governed by this subsection and the association is responsible

1505

for the repair and maintenance of capital improvements that may

1506

result in a special assessment if reserves are not provided, each

1507

financial report for the preceding fiscal year required by

1508

subsection (7) shall contain the following statement in

1509

conspicuous type: THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE

1510

FOR RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED

1511

MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS. OWNERS MAY

1512

ELECT TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE PROVISIONS

1513

OF SECTION 720.303(6), FLORIDA STATUTES, UPON THE APPROVAL OF NOT

1514

LESS THAN A MAJORITY OF THE TOTAL VOTING INTERESTS OF THE

1515

ASSOCIATION ATTAINED BY VOTE OF THE MEMBERS AT A MEETING OR BY

1516

WRITTEN CONSENT EXECUTED BY A MAJORITY OF THE VOTING INTERESTS.

1517

     2. If the budget of the association does provide for

1518

funding of accounts for deferred expenditures, including, but not

1519

limited to, funds for capital expenditures and deferred

1520

maintenance, but such accounts are not created or established

1521

pursuant to paragraph (d), each financial report for the

1522

preceding fiscal year required by subsection (7) shall also

1523

contain the following statement in conspicuous type: THE BUDGET

1524

OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED

1525

EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND DEFERRED

1526

MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN OUR

1527

GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO

1528

PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE PROVISIONS OF

1529

SECTION 720.303(6), FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT

1530

TO THE RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT

1531

STATUTE, NOR ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT

1532

STATUTE.

1533

     (d)  An association shall be deemed to have provided for

1534

reserve accounts when reserve accounts have been initially

1535

established by the developer or when the membership of the

1536

association affirmatively elects to provide for reserves. If

1537

reserve accounts are not initially provided for by the developer,

1538

the membership of the association may elect to do so upon the

1539

affirmative approval of not less than a majority of the total

1540

voting interests of the association. Such approval may be

1541

attained by vote of the members at a duly called meeting of the

1542

membership or upon a written consent executed by not less than a

1543

majority of the total voting interests in the community. The

1544

approval action of the membership shall state that reserve

1545

accounts shall be provided for in the budget and shall designate

1546

the components for which the reserve accounts are to be

1547

established. Upon approval by the membership, the board of

1548

directors shall provide for the required reserve accounts for

1549

inclusion in the budget in the next fiscal year following the

1550

approval and in each year thereafter. Once established as

1551

provided in this subsection, the reserve accounts shall be funded

1552

or maintained or shall have their funding waived in the manner

1553

provided in paragraph (f).

1554

     (f) After one or more Once a reserve account or reserve

1555

accounts are established, the membership of the association, upon

1556

a majority vote at a meeting at which a quorum is present, may

1557

provide for no reserves or less reserves than required by this

1558

section. If a meeting of the unit owners has been called to

1559

determine whether to waive or reduce the funding of reserves and

1560

no such result is achieved or a quorum is not present, the

1561

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

1562

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

1563

or reduce the funding of reserves. Any vote taken pursuant to

1564

this subsection to waive or reduce reserves shall be applicable

1565

only to one budget year.

1566

     (g)  Funding formulas for reserves authorized by this

1567

section shall be based on either a separate analysis of each of

1568

the required assets or a pooled analysis of two or more of the

1569

required assets.

1570

     1.  If the association maintains separate reserve accounts

1571

for each of the required assets, the amount of the contribution

1572

to each reserve account shall be the sum of the following two

1573

calculations:

1574

     a.  The total amount necessary, if any, to bring a negative

1575

component balance to zero.

1576

     b.  The total estimated deferred maintenance expense or

1577

estimated replacement cost of the reserve component less the

1578

estimated balance of the reserve component as of the beginning of

1579

the period for which the budget will be in effect. The remainder,

1580

if greater than zero, shall be divided by the estimated remaining

1581

useful life of the component.

1582

1583

The formula may be adjusted each year for changes in estimates

1584

and deferred maintenance performed during the year and may

1585

include factors such as inflation and earnings on invested funds.

1586

     2.  If the association maintains a pooled account of two or

1587

more of the required reserve assets, the amount of the

1588

contribution to the pooled reserve account as disclosed on the

1589

proposed budget shall not be less than that required to ensure

1590

that the balance on hand at the beginning of the period for which

1591

the budget will go into effect plus the projected annual cash

1592

inflows over the remaining estimated useful life of all of the

1593

assets that make up the reserve pool are equal to or greater than

1594

the projected annual cash outflows over the remaining estimated

1595

useful lives of all of the assets that make up the reserve pool,

1596

based on the current reserve analysis. The projected annual cash

1597

inflows may include estimated earnings from investment of

1598

principal and accounts receivable minus the allowance for

1599

doubtful accounts. The reserve funding formula shall not include

1600

any type of balloon payments.

1601

     (7)  FINANCIAL REPORTING.--Within 90 days after the end of

1602

the fiscal year, or annually on the date provided in the bylaws,

1603

the association shall prepare and complete, or contract with a

1604

third party for the preparation and completion of, a financial

1605

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

1606

final financial report is completed by the association or

1607

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

1608

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

1609

bylaws, the association shall, within the time limits set forth

1610

in subsection (5), provide each member with a copy of the annual

1611

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

1612

report is available upon request at no charge to the member.

1613

Financial reports shall be prepared as follows:

1614

     (a)  An association that meets the criteria of this

1615

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

1616

financial statements in accordance with generally accepted

1617

accounting principles as adopted by the Board of Accountancy. The

1618

financial statements shall be based upon the association's total

1619

annual revenues, as follows:

1620

     1. An association with total annual revenues of $150,000

1621

$100,000 or more, but less than $300,000 $200,000, shall prepare

1622

compiled financial statements.

1623

     2.  An association with total annual revenues of at least

1624

$300,000 $200,000, but less than $600,000 $400,000, shall prepare

1625

reviewed financial statements.

1626

     3. An association with total annual revenues of $600,000

1627

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

1628

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

1629

than $150,000 $100,000 shall prepare a report of cash receipts

1630

and expenditures.

1631

     2.  An association in a community of fewer than 50 parcels,

1632

regardless of the association's annual revenues, may prepare a

1633

report of cash receipts and expenditures in lieu of financial

1634

statements required by paragraph (a) unless the governing

1635

documents provide otherwise.

1636

     3.  A report of cash receipts and disbursement must disclose

1637

the amount of receipts by accounts and receipt classifications

1638

and the amount of expenses by accounts and expense

1639

classifications, including, but not limited to, the following, as

1640

applicable: costs for security, professional, and management fees

1641

and expenses; taxes; costs for recreation facilities; expenses

1642

for refuse collection and utility services; expenses for lawn

1643

care; costs for building maintenance and repair; insurance costs;

1644

administration and salary expenses; and reserves if maintained by

1645

the association.

1646

     (c)  If 20 percent of the parcel owners petition the board

1647

for a level of financial reporting higher than that required by

1648

this section, the association shall duly notice and hold a

1649

meeting of members within 30 days of receipt of the petition for

1650

the purpose of voting on raising the level of reporting for that

1651

fiscal year. Upon approval of a majority of the total voting

1652

interests of the parcel owners, the association shall prepare or

1653

cause to be prepared, shall amend the budget or adopt a special

1654

assessment to pay for the financial report regardless of any

1655

provision to the contrary in the governing documents, and shall

1656

provide within 120 90 days of the meeting or the end of the

1657

fiscal year, whichever occurs later:

1658

     1.  Compiled, reviewed, or audited financial statements, if

1659

the association is otherwise required to prepare a report of cash

1660

receipts and expenditures;

1661

     2.  Reviewed or audited financial statements, if the

1662

association is otherwise required to prepare compiled financial

1663

statements; or

1664

     3.  Audited financial statements if the association is

1665

otherwise required to prepare reviewed financial statements.

1666

     (12) COMPENSATION PROHIBITED.--A director, officer, or

1667

committee member of the association may not receive directly or

1668

indirectly any salary or compensation from the association for

1669

performance of duties as a director, officer, or committee member

1670

and such person may not in any other way benefit financially from

1671

service to the association. This subsection shall not be

1672

construed to preclude:

1673

     (a) Participation by such person in a financial benefit

1674

accruing to all or a significant number of members as a result of

1675

actions lawfully taken by the board or a committee of which he or

1676

she is a member, including, but not limited to, routine

1677

maintenance, repair, or replacement of community assets;

1678

     (b) Reimbursement for out-of-pocket expenses incurred by

1679

such person on behalf of the association, subject to approval of

1680

such reimbursement in accordance with procedures established by

1681

the association's governing documents or, in the absence of such

1682

procedures, in accordance with an approval process established by

1683

the board; or

1684

     (c) Any recovery of insurance proceeds derived from a

1685

policy of insurance maintained by the association for the benefit

1686

of its members.

1687

     Section 15.  Subsections (1), (2), and (3) of section

1688

720.305, Florida Statutes, are amended to read:

1689

     720.305  Obligations of members; remedies at law or in

1690

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

1691

fill sufficient number of vacancies on board of directors to

1692

constitute a quorum; appointment of receiver upon petition of any

1693

member.--

1694

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

1695

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

1696

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

1697

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

1698

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

1699

provisions may be brought by the association or by any member

1700

against:

1701

     (a)  The association;

1702

     (b)  A member;

1703

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

1704

and knowingly fails to comply with these provisions; and

1705

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

1706

using the common areas.

1707

1708

The prevailing party in any such litigation is entitled to

1709

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

1710

in an action between the association and the member under this

1711

section, in addition to recovering his or her reasonable

1712

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

1713

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

1714

share of assessments levied by the association to fund its

1715

expenses of the litigation. The prevailing party in any such

1716

litigation is entitled to recover reasonable attorney's fees and

1717

costs, including reasonable postjudgment attorney's fees and

1718

costs, provided the court retains jurisdiction to enforce the

1719

judgment. This relief does not exclude other remedies provided by

1720

law. This section does not deprive any person of any other

1721

available right or remedy.

1722

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

1723

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

1724

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

1725

use common areas and facilities and may levy reasonable fines,

1726

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

1727

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

1728

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

1729

opportunity for hearing, except that no such fine shall exceed

1730

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

1731

governing documents. A fine of less than $1,000 shall not become

1732

a lien against a parcel. In any action to recover a fine, the

1733

prevailing party is entitled to collect its reasonable attorney's

1734

fees and costs from the nonprevailing party as determined by the

1735

court.

1736

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

1737

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

1738

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

1739

three members appointed by the board who are not officers,

1740

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

1741

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

1742

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

1743

proposed fine or suspension, it may not be imposed.

1744

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

1745

imposition of suspensions or fines upon any member because of the

1746

failure of the member to pay assessments or other charges when

1747

due if such action is authorized by the governing documents.

1748

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

1749

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

1750

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

1751

not limited to, the right to park.

1752

     (3) Unless If the governing documents so provide otherwise,

1753

an association may suspend the voting rights of a member for the

1754

nonpayment of regular annual assessments that are delinquent in

1755

excess of 90 days.

1756

     Section 16.  Subsections (3), (5), (8), and (9) of section

1757

720.306, Florida Statutes, are amended to read:

1758

     720.306  Meetings of members; voting and election

1759

procedures; amendments.--

1760

     (3)  SPECIAL MEETINGS.--Special meetings must be held when

1761

called by the board of directors or, unless a different

1762

percentage is stated in the governing documents, by at least 10

1763

percent of the total voting interests of the association or when

1764

sudden, unforeseen happenings occur that require action to

1765

protect lives or property of the association's members. Business

1766

conducted at a special meeting is limited to the purposes

1767

described in the notice of the meeting.

1768

     (5)  NOTICE OF MEETINGS.--The bylaws shall provide for

1769

giving notice to members of all member meetings, and if they do

1770

not do so shall be deemed to provide the following: The

1771

association shall give all parcel owners and members actual

1772

notice of all membership meetings, which shall be mailed,

1773

delivered, or electronically transmitted to the members not less

1774

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

1775

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

1776

person providing the notice and filed upon execution among the

1777

official records of the association. Notice of a special meeting

1778

shall be made at least 48 hours in advance or less than that in

1779

case of any sudden, unforeseen happening that requires action to

1780

protect lives or property of the association's members. In

1781

addition to mailing, delivering, or electronically transmitting

1782

the notice of any meeting, the association may, by reasonable

1783

rule, adopt a procedure for conspicuously posting and repeatedly

1784

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

1785

television system serving the association. When broadcast notice

1786

is provided, the notice and agenda must be broadcast in a manner

1787

and for a sufficient continuous length of time so as to allow an

1788

average reader to observe the notice and read and comprehend the

1789

entire content of the notice and the agenda.

1790

     (8)  PROXY VOTING.--The members have the right, unless

1791

otherwise provided in this subsection or in the governing

1792

documents, to vote in person or by proxy.

1793

     (a) To be valid, a proxy must be dated, must state the

1794

date, time, and place of the meeting for which it was given, and

1795

must be signed by the authorized person who executed the proxy. A

1796

proxy is effective only for the specific meeting for which it was

1797

originally given, as the meeting may lawfully be adjourned and

1798

reconvened from time to time, and automatically expires 90 days

1799

after the date of the meeting for which it was originally given.

1800

A proxy is revocable at any time at the pleasure of the person

1801

who executes it. If the proxy form expressly so provides, any

1802

proxy holder may appoint, in writing, a substitute to act in his

1803

or her place.

1804

     (b) If the governing documents require a secret ballot, the

1805

absentee ballot must be enclosed in a blank envelope that shall

1806

be placed inside another envelope bearing the required

1807

information and signature. After the owner's eligibility to vote

1808

has been verified and before the ballots are counted, the blank

1809

envelope shall be removed from the envelope bearing the

1810

information and signature and added to the ballots of the members

1811

voting in person or by proxy. Absentee ballots must be mailed or

1812

hand delivered to the place specified in the notice of the

1813

meeting at which the election will be held, not later than the

1814

date specified in such notice.

1815

     (9) ELECTIONS; BOARD MEMBER CERTIFICATION.--

1816

     (a) Elections of directors must be conducted in accordance

1817

with the procedures set forth in the governing documents of the

1818

association. All members of the association shall be eligible to

1819

serve on the board of directors, and a member may nominate

1820

himself or herself as a candidate for the board at a meeting

1821

where the election is to be held or, in the case of an election

1822

process that allows voting by absentee ballot, in advance of the

1823

balloting. Except as otherwise provided in the governing

1824

documents, boards of directors must be elected by a plurality of

1825

the votes cast by eligible voters. Any election dispute between a

1826

member and an association must be submitted to mandatory binding

1827

arbitration with the division. Such proceedings shall be

1828

conducted in the manner provided by s. 718.1255 and the

1829

procedural rules adopted by the division.

1830

     (b) Within 30 days after being elected to the board of

1831

directors, a new director shall certify in writing to the

1832

secretary of the association that he or she has read the

1833

association's declarations of covenants and restrictions,

1834

articles of incorporation, bylaws, and current written policies

1835

and that he or she will work to uphold each to the best of his or

1836

her ability and will faithfully discharge his or her fiduciary

1837

responsibility to the association's members. Failure to timely

1838

file such statement shall automatically disqualify the director

1839

from service on the association's board of directors. The

1840

secretary shall cause the association to retain a director's

1841

certification for inspection by the membership of the association

1842

for a period of 5 years after a director's election. Failure to

1843

have such certification on file shall not affect the validity of

1844

any appropriate action.

1845

     (c) Any director who has unexcused absences from three

1846

consecutive board meetings shall be deemed to have submitted his

1847

or her resignation from the board.

1848

     Section 17.  Subsection (5) is added to section 720.307,

1849

Florida Statutes, to read:

1850

     720.307  Transition of association control in a

1851

community.--With respect to homeowners' associations:

1852

     (5) Except where precluded by the association's governing

1853

documents, the board of directors of the association may levy

1854

assessments on an unimproved parcel in the same amounts as

1855

assessments on improved parcels if that parcel is not improved

1856

within 5 years after the date the parcel was sold by the

1857

developer.

1858

     Section 18.  Paragraph (d) is added to subsection (1) of

1859

section 720.3075, Florida Statutes, to read:

1860

     720.3075  Prohibited clauses in association documents.--

1861

     (1)  It is declared that the public policy of this state

1862

prohibits the inclusion or enforcement of certain types of

1863

clauses in homeowners' association documents, including

1864

declaration of covenants, articles of incorporation, bylaws, or

1865

any other document of the association which binds members of the

1866

association, which either have the effect of or provide that:

1867

     (d) The builder or developers are not liable for defects in

1868

the construction of common areas or parcels and improvements on

1869

common areas, or that the developer or builders do not warranty

1870

that the common areas and parcels, and any improvements

1871

constructed on common areas, are free from defects for any period

1872

less than 10 years after completion of such areas, parcels, or

1873

improvements.

1874

1875

Such clauses are declared null and void as against the public

1876

policy of this state.

1877

     Section 19.  Paragraph (a) of subsection (4) of section

1878

720.308, Florida Statutes, is amended to read:

1879

     720.308  Assessments and charges.--

1880

     (4)  CASH FUNDING REQUIREMENTS DURING GUARANTEE.--The cash

1881

payments required from the guarantor during the guarantee period

1882

shall be determined as follows:

1883

     (a)  If at any time during the guarantee period the funds

1884

collected from member assessments at the guaranteed level and

1885

other revenues collected by the association are not sufficient to

1886

provide payment, on a timely basis, of all accounts payable of

1887

the association assessments, including the full funding of the

1888

reserves unless properly waived, the guarantor shall advance

1889

sufficient cash to the association at the time such payments are

1890

due.

1891

     Section 20.  Paragraph (b) of subsection (4) and paragraph

1892

(c) of subsection (6) of section 720.3085, Florida Statutes, are

1893

amended to read:

1894

     720.3085  Payment for assessments; lien claims.--

1895

     (4)  A homeowners' association may not file a claim of lien

1896

against a parcel for unpaid assessments unless a written notice

1897

or demand for past due assessments as well as any other amounts

1898

owed to the association pursuant to its governing documents has

1899

been made by the association. The written notice or demand must:

1900

     (b)  Be sent by registered or certified mail, return receipt

1901

requested, and by first-class United States mail to the parcel

1902

owner at his or her last address as reflected in the records of

1903

the association, if the address is within the United States, and

1904

by first-class United States mail to the parcel owner subject to

1905

the demand at the address of the parcel if the owner's address as

1906

reflected in the records of the association is not the parcel

1907

address. If the address reflected in the records is outside the

1908

United States, then sending the notice to that address and to the

1909

parcel address by first-class United States mail is sufficient.

1910

     (6)  If after service of a summons on a complaint to

1911

foreclose a lien the parcel is not the subject of a mortgage

1912

foreclosure or a notice of tax certificate sale, or the parcel

1913

owner is not a debtor in bankruptcy proceedings, the parcel owner

1914

may serve and file with the court a qualifying offer at any time

1915

before the entry of a foreclosure judgment. For purposes of this

1916

subsection, the term "qualifying offer" means a written offer to

1917

pay all amounts secured by the lien of the association plus

1918

interest accruing during the pendency of the offer at the rate of

1919

interest provided in this section. The parcel owner may make only

1920

one qualifying offer during the pendency of a foreclosure action.

1921

     (c)  The qualifying offer of the parcel owner must be in

1922

writing;, be signed by the owner of the parcel and the spouse of

1923

the owner if the spouse holds a homestead interest in the

1924

parcel;, be acknowledged by a notary public;, state the total

1925

amount due the association, including attorney's fees and costs

1926

incurred by the association in the foreclosure action that are

1927

required to be paid by the parcel owner; state that the total

1928

amount due the association is secured by the lien of the

1929

association;, state that the association is entitled to foreclose

1930

the lien and obtain a foreclosure judgment for the total amount

1931

due if the parcel owner breaches the qualifying offer;, state

1932

that the parcel owner will not endanger the priority of the lien

1933

of the association or the amounts secured by the lien;, and state

1934

the actual date or dates the association will receive the total

1935

amount due from the parcel owner. If the parcel owner makes a

1936

qualifying offer under this subsection, the association may not

1937

add the cost of any legal fees incurred by the association within

1938

the period of the stay other than costs acquired in defense of a

1939

mortgage foreclosure action concerning the parcel, a bankruptcy

1940

proceeding in which the parcel owner is a debtor, or in response

1941

to filings by a party other than the association in the lien

1942

foreclosure action of the association.

1943

     Section 21.  Paragraph (a) of subsection (1) of section

1944

720.401, Florida Statutes, is amended to read:

1945

     720.401  Prospective purchasers subject to association

1946

membership requirement; disclosure required; covenants;

1947

assessments; contract cancellation.--

1948

     (1)(a)  A prospective parcel owner in a community must be

1949

presented a disclosure summary before executing the contract for

1950

sale. The disclosure summary must be in a form substantially

1951

similar to the following form:

1952

1953

DISCLOSURE SUMMARY

1954

FOR

1955

(NAME OF COMMUNITY)

1956

1957

     1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL

1958

BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.

1959

     2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE

1960

COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS

1961

COMMUNITY.

1962

     3.  YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE

1963

ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF

1964

APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL ALSO

1965

BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE

1966

ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.

1967

IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.

1968

     4.  YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE

1969

RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL

1970

ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.

1971

     5.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS

1972

LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION COULD RESULT IN A

1973

LIEN ON YOUR PROPERTY.

1974

     6.  THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES

1975

FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN

1976

OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF

1977

APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.

1978

     7. IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE

1979

DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE

1980

RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION

1981

MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.

1982

     8.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE

1983

ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU

1984

SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING

1985

DOCUMENTS BEFORE PURCHASING PROPERTY.

1986

     9.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND

1987

CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE

1988

PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED FROM

1989

THE DEVELOPER.

1990

     10. THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES

1991

AND/OR FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR

1992

THE PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT

1993

INFRASTRUCTURE AND/OR OTHER IMPROVEMENTS.

1994

     11. YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS

1995

OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE

1996

UP TO THE TIME OF TRANSFER OF TITLE.

1997

1998

DATE:     PURCHASER:

1999

     PURCHASER:

2000

The disclosure must be supplied by the developer, or by the

2001

parcel owner if the sale is by an owner that is not the

2002

developer. Any contract or agreement for sale shall refer to and

2003

incorporate the disclosure summary and shall include, in

2004

prominent language, a statement that the potential buyer should

2005

not execute the contract or agreement until they have received

2006

and read the disclosure summary required by this section.

2007

     Section 22.  This act shall take effect July 1, 2008.