Florida Senate - 2008 SENATOR AMENDMENT

Bill No. CS/CS/HB 679, 1st Eng.

074374

CHAMBER ACTION

Senate

Floor: 1/AD/2R

5/2/2008 2:52 PM

House

Senator Posey moved the following amendment:

Senate Amendment (with title amendment)

Delete everything after the enacting clause

and insert:

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

read:

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

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

(2) "Homeowners' association" has the same meaning as in s.

720.301.

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

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

be movable from location to location.

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

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

does not serve any type of cooperative housing or joint tenancy

of five or more living units.

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

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

recreational bathing, together with adjacent shoreline or land

area, buildings, equipment, and appurtenances pertaining thereto,

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

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

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

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

rivers, streams, artificial impoundments, and waters along the

coastal and intracoastal beaches and shores of the state.

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

watertight structure of concrete, masonry, or other approved

materials, which is located either indoors or outdoors, used for

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

disinfected water supply, together with buildings, appurtenances,

and equipment used in connection therewith. A public swimming

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

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

attraction, to which admission may be gained with or without

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

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

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

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

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

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

mobile home parks, motels, recreational vehicle parks, and

townhouses.

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

Statutes, is amended to read:

514.0115 Exemptions from supervision or regulation;

variances.--

(2)(a) Pools serving no more than 32 condominium or

cooperative units or 32 parcels governed by a homeowners'

association which are not operated as a public lodging

establishment are shall be exempt from supervision under this

chapter, except for water quality.

(b) Pools serving condominium or cooperative associations

of more than 32 units or a homeowners' association of more than

32 parcels and whose recorded documents prohibit the rental or

sublease of the units for periods of less than 60 days are exempt

from supervision under this chapter, except that the condominium

or cooperative owner or association or homeowners' association

must file an application applications with the department and

obtain construction plan plans approval and receive an initial

operating permit. The department shall inspect the swimming pools

at such places annually, at the fee set forth in s. 514.033(3),

or upon request by a unit owner, to determine compliance with

department rules relating to water quality and lifesaving

equipment. The department may not require compliance with rules

relating to swimming pool lifeguard standards.

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

Statutes, is amended to read:

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

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

defined in s. 515.011 514.011(2), which is operated, with or

without charge, for the use of the general public; however, the

term does not include a swimming pool located on the grounds of a

private residence.

Section 4. Paragraph (b) of subsection (2), paragraphs (a)

and (c) of subsection (5), paragraphs (b), (c), (d), (f), and (g)

of subsection (6) of section 720.303, Florida Statutes, are

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

720.303 Association powers and duties; meetings of board;

official records; budgets; financial reporting; association

funds; recalls.--

(2) BOARD MEETINGS.--

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

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

of the voting interests for at least 3 minutes. The association

may adopt written reasonable rules expanding the right of members

to speak and governing the frequency, duration, and other manner

of member statements, which rules must be consistent with this

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

speak. Notwithstanding any other law, the requirement that board

meetings and committee meetings be open to the members is

inapplicable to meetings between the board or a committee to

discuss proposed or pending litigation with and the association's

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

purpose of discussing personnel matters are not required to be

open to the members.

100

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

101

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

102

inspection and available for photocopying by members or their

103

authorized agents at reasonable times and places within 10

104

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

105

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

106

records available for inspection or copying in the community. If

107

the association has a photocopy machine available where the

108

records are maintained, it must provide parcel owners with copies

109

on request during the inspection if the entire request is limited

110

to no more than 25 pages.

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

112

records within 10 business days after receipt of a written

113

request submitted by certified mail, return receipt requested,

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creates a rebuttable presumption that the association willfully

115

failed to comply with this subsection.

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

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

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a requirement that a parcel owner to demonstrate any proper

120

purpose for the inspection, state any reason for the inspection,

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or limit a parcel owner's right to inspect records to less than

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one 8-hour business day per month. The association may impose

123

fees to cover the costs of providing copies of the official

124

records, including, without limitation, the costs of copying. The

125

association may charge up to 50 cents per page for copies made on

126

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

127

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

128

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

129

association may have copies made by an outside vendor or

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association management company personnel and may charge the

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actual cost of copying, including any reasonable costs involving

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

133

cover administrative costs to the association. The association

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shall maintain an adequate number of copies of the recorded

135

governing documents, to ensure their availability to members and

136

prospective members. Notwithstanding the provisions of this

137

paragraph, the following records are shall not be accessible to

138

members or parcel owners:

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

140

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

141

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

142

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

143

express direction which reflects a mental impression, conclusion,

144

litigation strategy, or legal theory of the attorney or the

145

association and which was prepared exclusively for civil or

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criminal litigation or for adversarial administrative proceedings

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or which was prepared in anticipation of imminent civil or

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criminal litigation or imminent adversarial administrative

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proceedings until the conclusion of the litigation or adversarial

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administrative proceedings.

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2. Information obtained by an association in connection

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

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parcel.

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3. Disciplinary, health, insurance, and personnel records

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of the association's employees.

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4. Medical records of parcel owners or community residents.

157

(6) BUDGETS.--

158

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

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may include reserve accounts for capital expenditures and

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deferred maintenance for which the association is responsible. If

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reserve accounts are not established pursuant to paragraph (d),

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funding of such reserves shall be limited to the extent that the

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governing documents do not limit increases in assessments,

164

including reserves. If the budget of the association includes

165

reserve accounts established pursuant to paragraph (d), such

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reserves shall be determined, maintained, and waived in the

167

manner provided in this subsection. Once an association provides

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for reserve accounts pursuant to paragraph (d) in the budget, the

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association shall thereafter determine, maintain, and waive

170

reserves in compliance with this subsection. The provisions of

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this section do not preclude the termination of a reserve account

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established pursuant to this paragraph upon approval of a

173

majority of the voting interests of the association. Upon such

174

approval, the terminating reserve account shall be removed from

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the budget.

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reserve accounts pursuant to paragraph (d) governed by this

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subsection and the association is responsible for the repair and

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maintenance of capital improvements that may result in a special

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assessment if reserves are not provided, each financial report

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for the preceding fiscal year required by subsection (7) shall

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contain the following statement in conspicuous type: THE BUDGET

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OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR

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CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN

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SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE

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ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),

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FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A

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MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY VOTE

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OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.

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2. If the budget of the association does provide for

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funding accounts for deferred expenditures, including, but not

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limited to, funds for capital expenditures and deferred

193

maintenance, but such accounts are not created or established

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

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preceding fiscal year required under subsection (7) must also

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contain the following statement in conspicuous type: THE BUDGET

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OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED

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EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND DEFERRED

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MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN OUR

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GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO

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PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),

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FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE RESTRICTIONS

203

ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR ARE RESERVES

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CALCULATED IN ACCORDANCE WITH THAT STATUTE.

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

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reserve accounts if when reserve accounts have been initially

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established by the developer or if when the membership of the

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association affirmatively elects to provide for reserves. If

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reserve accounts are not initially provided for by the developer,

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

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affirmative approval of not less than a majority of the total

212

voting interests of the association. Such approval may be

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

214

of the membership or by the upon a written consent of executed by

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not less than a majority of the total voting interests in the

216

community. The approval action of the membership shall state that

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reserve accounts shall be provided for in the budget and shall

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designate the components for which the reserve accounts are to be

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established. Upon approval by the membership, the board of

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directors shall include provide for the required reserve accounts

221

for inclusion in the budget in the next fiscal year following the

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approval and in each year thereafter. Once established as

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provided in this subsection, the reserve accounts shall be funded

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or maintained or shall have their funding waived in the manner

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provided in paragraph (f).

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

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accounts are established, the membership of the association, upon

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

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provide for no reserves or less reserves than required by this

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

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determine whether to waive or reduce the funding of reserves and

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

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

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

235

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

236

this subsection to waive or reduce reserves is shall be

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applicable only to one budget year.

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(g) Funding formulas for reserves authorized by this

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

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

241

required assets.

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1. If the association maintains separate reserve accounts

243

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

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

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calculations:

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

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component balance to zero.

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b. The total estimated deferred maintenance expense or

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estimated replacement cost of the reserve component less the

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estimated balance of the reserve component as of the beginning of

251

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

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

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useful life of the component.

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The formula may be adjusted each year for changes in estimates

256

and deferred maintenance performed during the year and may

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include factors such as inflation and earnings on invested funds.

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

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more of the required reserve assets, the amount of the

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contribution to the pooled reserve account as disclosed on the

261

proposed budget may shall not be less than that required to

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ensure that the balance on hand at the beginning of the period

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for which the budget will go into effect plus the projected

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annual cash inflows over the remaining estimated useful life of

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all of the assets that make up the reserve pool are equal to or

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greater than the projected annual cash outflows over the

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remaining estimated useful lives of all of the assets that make

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up the reserve pool, based on the current reserve analysis. The

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projected annual cash inflows may include estimated earnings from

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investment of principal and accounts receivable minus the

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allowance for doubtful accounts. The reserve funding formula may

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shall not include any type of balloon payments.

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

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committee member of the association may not receive directly or

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indirectly any salary or compensation from the association for

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

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member and may not in any other way benefit financially from

278

service to the association. This subsection does not preclude:

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(a) Participation by such person in a financial benefit

280

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

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

282

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

283

maintenance, repair, or replacement of community assets.

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

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

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accordance with procedures established by the association's

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governing documents or, in the absence of such procedures, in

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accordance with an approval process established by the board.

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policy of insurance maintained by the association for the benefit

291

of its members.

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(d) Any fee or compensation authorized in the governing

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documents.

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(e) Any fee or compensation authorized in advance by a vote

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of a majority of the voting interests voting in person or by

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proxy at a meeting of the members.

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Section 5. Subsection (2) of section 720.305, Florida

298

Statutes, are amended to read:

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720.305 Obligations of members; remedies at law or in

300

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

301

fill sufficient number of vacancies on board of directors to

302

constitute a quorum; appointment of receiver upon petition of any

303

member.--

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

305

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

306

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

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use common areas and facilities and may levy reasonable fines of

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

309

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

310

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

311

opportunity for hearing, except that no such fine may shall

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

313

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

314

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

315

the prevailing party is entitled to collect its reasonable

316

attorney's fees and costs from the nonprevailing party as

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determined by the court.

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

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

320

suspended and an opportunity for a hearing before a committee of

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at least three members appointed by the board who are not

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officers, directors, or employees of the association, or the

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

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director, or employee. If the committee, by majority vote, does

325

not approve a proposed fine or suspension, it may not be imposed.

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

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imposition of suspensions or fines upon any member because of the

328

failure of the member to pay assessments or other charges when

329

due if such action is authorized by the governing documents.

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impair the right of an owner or tenant of a parcel to have

332

vehicular and pedestrian ingress to and egress from the parcel,

333

including, but not limited to, the right to park.

334

Section 6. Subsections (8) and (9) of section 720.306,

335

Florida Statutes, are amended to read:

336

720.306 Meetings of members; voting and election

337

procedures; amendments.--

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

339

otherwise provided in this subsection or in the governing

340

documents, to vote in person or by proxy.

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

342

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

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

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

345

originally given, as the meeting may lawfully be adjourned and

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reconvened from time to time, and automatically expires 90 days

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

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

349

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

350

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

351

or her place.

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(b) If the governing documents permit voting by secret

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ballot by members who are not in attendance at a meeting of the

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members for the election of directors, such ballots shall be

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placed in an inner envelope with no identifying markings and

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mailed or delivered to the association in an outer envelope

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bearing identifying information reflecting the name of the

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member, the lot or parcel for which the vote is being cast, and

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the signature of the lot or parcel owner casting that ballot.

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After the eligibility of the member to vote and confirmation that

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no other ballot has been submitted for that lot or parcel, the

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inner envelope shall be removed from the outer envelope bearing

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the identification information, placed with the ballots which

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were personally cast, and opened when the ballots are counted. If

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more than one ballot is submitted for a lot or parcel, the

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ballots for that lot or parcel shall be disqualified. Any vote by

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ballot received after the closing of the balloting may not be

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considered.

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(9) ELECTIONS; BOARD MEMBER CERTIFICATION.--

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(a) Elections of directors must be conducted in accordance

371

with the procedures set forth in the governing documents of the

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association. All members of the association are shall be eligible

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

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

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where the election is to be held or, if the election process

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allows voting by absentee ballot, in advance of the balloting.

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Except as otherwise provided in the governing documents, boards

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of directors must be elected by a plurality of the votes cast by

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eligible voters. Any election dispute between a member and an

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association must be submitted to mandatory binding arbitration

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with the division. Such proceedings shall be conducted in the

382

manner provided by s. 718.1255 and the procedural rules adopted

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by the division.

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

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directors, a new director shall certify in writing to the

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secretary of the association that he or she has read the

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association's declarations of covenants and restrictions,

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articles of incorporation, bylaws, and current written policies

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

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her ability and will faithfully discharge his or her fiduciary

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responsibility to the association's members. Failure to timely

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file such statement shall automatically disqualify the director

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

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secretary shall cause the association to retain a director's

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certification for inspection by the members for 5 years after a

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director's election. Failure to have such certification on file

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does not affect the validity of any appropriate action.

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Section 7. Paragraph (a) of subsection (1) of section

399

720.401, Florida Statutes, is amended to read:

400

720.401 Prospective purchasers subject to association

401

membership requirement; disclosure required; covenants;

402

assessments; contract cancellation.--

403

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

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presented a disclosure summary before executing the contract for

405

sale. The disclosure summary must be in a form substantially

406

similar to the following form:

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DISCLOSURE SUMMARY

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FOR

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(NAME OF COMMUNITY)

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412

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

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

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2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE

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COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS

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COMMUNITY.

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3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE

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ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF

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

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BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE

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ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.

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

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

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RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL

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ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.

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5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS

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LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION MAY COULD RESULT IN

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A LIEN ON YOUR PROPERTY.

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

430

FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN

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OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF

432

APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.

433

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

434

DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE

435

RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION

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MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.

437

8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE

438

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

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SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING

440

DOCUMENTS BEFORE PURCHASING PROPERTY.

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9. THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND

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

443

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

444

FROM THE DEVELOPER.

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

446

FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR THE

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PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT

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INFRASTRUCTURE OR OTHER IMPROVEMENTS.

449

11. YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS

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OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE

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UP TO THE TIME OF TRANSFER OF TITLE.

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DATE: PURCHASER:

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PURCHASER:

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

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

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

458

incorporate the disclosure summary and shall include, in

459

prominent language, a statement that the potential buyer should

460

not execute the contract or agreement until he or she has they

461

have received and read the disclosure summary required by this

462

section.

463

Section 8. Paragraph (d) of subsection (1) of section

464

34.01, Florida Statutes, is amended to read:

465

34.01 Jurisdiction of county court.--

466

(1) County courts shall have original jurisdiction:

467

(d) Of disputes occurring in the homeowners' associations

468

as described in part IV of chapter 720 s. 720.311(2)(a), which

469

shall be concurrent with jurisdiction of the circuit courts.

470

Section 9. Subsection (2) of section 720.302, Florida

471

Statutes, is amended to read:

472

720.302 Purposes, scope, and application.--

473

(2) The Legislature recognizes that it is not in the best

474

interest of homeowners' associations or the individual

475

association members thereof to create or impose a bureau or other

476

agency of state government to regulate the affairs of homeowners'

477

associations. However, in accordance with part IV of chapter 720

478

s. 720.311, the Legislature finds that homeowners' associations

479

and their individual members will benefit from an expedited

480

alternative process for resolution of election and recall

481

disputes and presuit mediation of other disputes involving

482

covenant enforcement in homeowner's associations and deed

483

restricted communities using the procedures provided in part IV

484

of and authorizes the department to hear, administer, and

485

determine these disputes as more fully set forth in this chapter.

486

Further, the Legislature recognizes that certain contract rights

487

have been created for the benefit of homeowners' associations and

488

members thereof as well as deed-restricted communities before the

489

effective date of this act and that part IV of chapter 720 is ss.

490

720.301-720.407 are not intended to impair such contract rights,

491

including, but not limited to, the rights of the developer to

492

complete the community as initially contemplated.

493

Section 10. Section 720.311, Florida Statutes, is repealed.

494

Section 11. Part IV of chapter 720, Florida Statutes, to be

495

entitled "Dispute Resolution" consisting of sections 720.501,

496

720.502, 720.503, 720.504, 720.505, 720.506, 720.507, 720.508,

497

720.509, and 720.510, is created to read:

498

720.501 Short title.--This part may be cited as the "Home

499

Court Advantage Dispute Resolution Act."

500

720.502 Legislative findings.--The Legislature finds that

501

alternative dispute resolution has made progress in reducing

502

court dockets and trials and in offering a more efficient, cost-

503

effective option to litigation.

504

720.503 Applicability of this part.--

505

(1) Unless otherwise provided in this part, before a

506

dispute described herein between a homeowners' association and a

507

parcel owner or owners, or a dispute between parcel owners within

508

the same homeowners' association, may be filed in court the

509

dispute is subject to presuit mediation pursuant to s. 720.505 or

510

presuit arbitration pursuant to s. 720.507, at the option of the

511

aggrieved party who initiates the first formal action of

512

alternative dispute resolution under this part. The parties may

513

mutually agree to participate in both presuit mediation and

514

presuit arbitration prior to suit being filed by either party.

515

(2) Unless otherwise provided in this part, the mediation

516

and arbitration provisions of this part are limited to disputes

517

between an association and a parcel owner or owners or between

518

parcel owners regarding the use of or changes to the parcel or

519

the common areas under the governing documents and other disputes

520

involving violations of the recorded declaration of covenants or

521

other governing documents, disputes arising concerning

522

enforcement of the governing documents or any amendments thereto,

523

and disputes involving access to the official records of the

524

association. A dispute concerning title to any parcel or common

525

area, interpretation or enforcement of any warranty, the levy of

526

a fee or assessment, the collection of an assessment levied

527

against a party, the eviction or other removal of a tenant from a

528

parcel, alleged breaches of fiduciary duty by one or more

529

directors, or any action to collect mortgage indebtedness or to

530

foreclosure a mortgage shall not be subject to the provisions of

531

this part.

532

(3) All disputes arising after the effective date of this

533

part involving the election of the board of directors for an

534

association or the recall of any member of the board or officer

535

of the association shall not be eligible for presuit mediation

536

under s. 720.505, but shall be subject to the provisions

537

concerning presuit arbitration under s. 720.507.

538

(4) In any dispute subject to presuit mediation or presuit

539

arbitration under this part for which emergency relief is

540

required, a motion for temporary injunctive relief may be filed

541

with the court without first complying with the presuit mediation

542

or presuit arbitration requirements of this part. After any

543

issues regarding emergency or temporary relief are resolved, the

544

court may refer the parties to a mediation program administered

545

by the courts or require mediation or arbitration under this

546

part.

547

(5) The mailing of a statutory notice of presuit mediation

548

or presuit arbitration as provided in this part shall toll the

549

applicable statute of limitations during the pendency of the

550

mediation or arbitration and for a period of 30 days following

551

the conclusion of either proceeding. The 30-day period shall

552

start upon the filing of the mediator's notice of impasse or the

553

arbitrator's written arbitration award. If the parties mutually

554

agree to participate in both presuit mediation and presuit

555

arbitration under this part, the tolling of the applicable

556

statute of limitations for each such alternative dispute

557

resolution proceeding shall be consecutive.

558

720.504 Notice of dispute.--Prior to giving the statutory

559

notice to proceed under presuit medication or presuit arbitration

560

under this part, the aggrieved association or parcel owner shall

561

first provide written notice of the dispute to the responding

562

party in the manner provided by this section.

563

(1) The notice of dispute shall be delivered to the

564

responding party by certified mail, return receipt requested, or

565

the notice of dispute may be hand delivered and the person making

566

delivery shall file with their notice of mediation either the

567

proof of receipt of mailing or an affidavit stating the date and

568

time of the delivery of the notice of dispute. If the notice is

569

delivered by certified mail, return receipt requested, and the

570

responding party fails or refuses to accept delivery, notice

571

shall be considered properly delivered for purposes of this

572

section on the date of the first attempted delivery.

573

(2) The notice of dispute shall state with specificity the

574

nature of the dispute, including the date, time, and location of

575

each event that is the subject of the dispute and the action

576

requested to resolve the dispute. The notice shall also include

577

the text of any provision in the governing documents, including

578

the rules and regulations, of the association which form the

579

basis of the dispute.

580

(3) Unless the parties otherwise agree in writing to a

581

longer time period, the party receiving the notice of dispute

582

shall have 10 days following the date of receipt of notice to

583

resolve the dispute. If the alleged dispute has not been resolved

584

within the 10-day period, the aggrieved party may proceed under

585

this part at any time thereafter within the applicable statute of

586

limitations.

587

(4) A copy of the notice and the text of the provision in

588

the governing documents or the rules and regulations of the

589

association which are the basis of the dispute, along with proof

590

of service of the notice of dispute and a copy of any written

591

responses received from the responding party, shall be included

592

as an exhibit to any demand for mediation or arbitration under

593

this part.

594

720.505 Presuit mediation.--

595

(1) Disputes between an association and a parcel owner or

596

owners and between parcel owners must be submitted to presuit

597

mediation before the dispute may be filed in court or, at the

598

election of the party initiating the presuit procedures, such

599

dispute may be submitted to presuit arbitration pursuant to s.

600

720.507 before the dispute may be filed in court. An aggrieved

601

party who elects to use the presuit mediation procedure under

602

this section shall serve on the responding party a written notice

603

of presuit mediation in substantially the following form:

604

605

STATUTORY NOTICE OF PRESUIT MEDIATION

606

THE ALLEGED AGGRIEVED PARTY, ____________________,

607

HEREBY DEMANDS THAT ____________________, AS THE

608

RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT MEDIATION

609

IN CONNECTION WITH A DISPUTE(S) WITH YOU, WHICH BY

610

STATUTE ARE OF A TYPE THAT ARE SUBJECT TO PRESUIT

611

MEDIATION:

612

613

ATTACHED IS A COPY OF THE PRIOR NOTICE OF VIOLATION

614

WHICH DETAILS THE SPECIFIC NATURE OF THE DISPUTE(S)TO

615

BE MEDIATED AND THE AUTHORITY SUPPORTING A FINDING OF A

616

VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT

617

LIMITED TO, THE APPLICABLE PROVISIONS OF THE GOVERNING

618

DOCUMENTS OF THE ASSOCIATION BELIEVED TO APPLY TO THE

619

DISPUTE BETWEEN THE PARTIES, AND A COPY OF THE NOTICE

620

YOU RECEIVED OR REFUSED AND COPIES OF ANY WRITTEN

621

RESPONSE(S) RECEIVED FROM YOU ABOUT THIS DISPUTE.

622

623

PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,

624

THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT

625

MEDIATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED

626

CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,

627

THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT MEDIATION

628

WITH A NEUTRAL THIRD-PARTY MEDIATOR IN ORDER TO ATTEMPT

629

TO RESOLVE THIS DISPUTE WITHOUT COURT ACTION, AND THE

630

AGGRIEVED PARTY DEMANDS THAT YOU PARTICIPATE IN THIS

631

PROCESS. UNLESS YOU RESPOND TO THIS NOTICE BY FILING

632

WITH THE AGGRIEVED PARTY A NOTICE OF OPTING OUT AND

633

DEMAND FOR ARBITRATION UNDER S. 720.506, FLORIDA

634

STATUTES, YOUR FAILURE TO PARTICIPATE IN THE MEDIATION

635

PROCESS MAY RESULT IN A LAWSUIT BEING FILED IN COURT

636

AGAINST YOU WITHOUT FURTHER NOTICE.

637

638

THE PROCESS OF MEDIATION INVOLVES A SUPERVISED

639

NEGOTIATION PROCESS IN WHICH A TRAINED, NEUTRAL THIRD-

640

PARTY MEDIATOR MEETS WITH BOTH PARTIES AND ASSISTS THEM

641

IN EXPLORING POSSIBLE OPPORTUNITIES FOR RESOLVING PART

642

OR ALL OF THE DISPUTE. BY AGREEING TO PARTICIPATE IN

643

PRESUIT MEDIATION, YOU ARE NOT BOUND IN ANY WAY TO

644

CHANGE YOUR POSITION. FURTHERMORE, THE MEDIATOR HAS NO

645

AUTHORITY TO MAKE ANY DECISIONS IN THIS MATTER OR TO

646

DETERMINE WHO IS RIGHT OR WRONG AND MERELY ACTS AS A

647

FACILITATOR TO ENSURE THAT EACH PARTY UNDERSTANDS THE

648

POSITION OF THE OTHER PARTY AND THAT ALL OPTIONS FOR

649

REASONABLE SETTLEMENT ARE FULLY EXPLORED.

650

651

IF AN AGREEMENT IS REACHED, IT SHALL BE REDUCED TO

652

WRITING AND BECOME A BINDING AND ENFORCEABLE CONTRACT

653

BETWEEN THE PARTIES. A RESOLUTION OF ONE OR MORE

654

DISPUTES IN THIS FASHION AVOIDS THE NEED TO LITIGATE

655

THESE ISSUES IN COURT. THE FAILURE TO REACH AN

656

AGREEMENT, OR THE FAILURE OF A PARTY TO PARTICIPATE IN

657

THE PROCESS, RESULTS IN THE MEDIATOR DECLARING AN

658

IMPASSE IN THE MEDIATION, AFTER WHICH THE AGGRIEVED

659

PARTY MAY PROCEED TO FILE A LAW SUIT ON ALL

660

OUTSTANDING, UNSETTLED DISPUTES. IF YOU HAVE FAILED OR

661

REFUSED TO PARTICIPATE IN THE ENTIRE MEDIATION PROCESS,

662

YOU WILL NOT BE ENTITLED TO RECOVER ATTORNEY'S FEES IF

663

YOU PREVAIL IN A SUBSEQUENT COURT PROCEEDING INVOLVING

664

THE SAME DISPUTE.

665

666

THE AGGRIEVED PARTY HAS SELECTED FROM A LIST OF

667

ELIGIBLE QUALIFIED MEDIATORS AT LEAST FIVE CERTIFIED

668

MEDIATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE

669

NEUTRAL AND QUALIFIED TO MEDIATE THE DISPUTE. YOU HAVE

670

THE RIGHT TO SELECT ANY ONE OF THESE MEDIATORS. THE

671

FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR MORE OF

672

THE LISTED MEDIATORS DOES NOT MEAN THAT THE MEDIATOR

673

CANNOT ACT AS A NEUTRAL AND IMPARTIAL FACILITATOR. THE

674

NAMES OF THE MEDIATORS THAT THE AGGRIEVED PARTY HEREBY

675

SUBMITS TO YOU FROM WHOM YOU MAY CHOOSE ONE, AND THEIR

676

CURRENT ADDRESSES, TELEPHONE NUMBERS, AND HOURLY RATES

677

ARE AS FOLLOWS:

678

679

(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND

680

HOURLY RATES OF THE MEDIATORS. OTHER PERTINENT

681

INFORMATION ABOUT THE BACKGROUND OF THE MEDIATORS MAY

682

BE INCLUDED AS AN ATTACHMENT.)

683

684

YOU MAY CONTACT THE OFFICES OF THESE MEDIATORS TO

685

CONFIRM THAT EACH OF THE ABOVE LISTED MEDIATORS WILL BE

686

NEUTRAL AND WILL NOT SHOW ANY FAVORITISM TOWARD EITHER

687

PARTY. UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART

688

IV OF CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE

689

PARTIES SHARE THE COSTS OF PRESUIT MEDIATION EQUALLY,

690

INCLUDING THE FEE CHARGED BY THE MEDIATOR. AN AVERAGE

691

MEDIATION MAY REQUIRE 3 TO 4 HOURS OF THE MEDIATOR'S

692

TIME, INCLUDING SOME PREPARATION TIME, AND THE PARTIES

693

WOULD NEED TO EQUALLY SHARE THE MEDIATOR'S FEES AS WELL

694

AS BE RESPONSIBLE FOR ALL OF THEIR OWN ATTORNEY'S FEES

695

IF THEY CHOOSE TO EMPLOY AN ATTORNEY IN CONNECTION WITH

696

THE MEDIATION. HOWEVER, USE OF AN ATTORNEY IS NOT

697

REQUIRED AND IS AT THE OPTION OF EACH PARTY. THE

698

MEDIATORS MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR

699

ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY HEREBY

700

AGREES TO PAY OR PREPAY ONE-HALF OF THE SELECTED

701

MEDIATOR'S ESTIMATED FEES AND TO FORWARD THIS AMOUNT OR

702

SUCH OTHER REASONABLE ADVANCE DEPOSITS AS THE MEDIATOR

703

REQUIRES FOR THIS PURPOSE UPON THE SELECTION OF THE

704

MEDIATOR. ANY FUNDS DEPOSITED WILL BE RETURNED TO YOU

705

IF THESE FUNDS ARE IN EXCESS OF YOUR SHARE OF THE

706

MEDIATOR FEES INCURRED.

707

708

TO BEGIN YOUR PARTICIPATION IN PRESUIT MEDIATION TO TRY

709

TO RESOLVE THE DISPUTE WITH YOU AND AVOID FURTHER LEGAL

710

ACTION, PLEASE SIGN BELOW AND CLEARLY INDICATE WHICH

711

MEDIATOR IS ACCEPTABLE TO YOU FROM THE FIVE MEDIATORS

712

LISTED BY THE AGGRIEVED PARTY ABOVE.

713

714

YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE OF

715

PRESUIT MEDIATION WITHIN 20 DAYS. IN YOUR RESPONSE YOU

716

MUST PROVIDE A LISTING OF AT LEAST THREE DATES AND

717

TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE

718

MEDIATION THAT ARE WITHIN 90 DAYS AFTER THE POSTMARKED

719

DATE OF THE MAILING OF THIS NOTICE OF PRESUIT MEDIATION

720

OR WITHIN 90 DAYS AFTER THE DATE YOU WERE SERVED WITH A

721

COPY OF THIS NOTICE. THE AGGRIEVED PARTY WILL THEN ASK

722

THE MEDIATOR TO SCHEDULE A MUTUALLY CONVENIENT TIME AND

723

PLACE FOR THE MEDIATION CONFERENCE TO BE HELD. IF YOU

724

DO NOT PROVIDE A LIST OF AVAILABLE DATES AND TIMES, THE

725

MEDIATOR IS AUTHORIZED TO SCHEDULE A MEDIATION

726

CONFERENCE WITHOUT TAKING YOUR SCHEDULE AND CONVENIENCE

727

INTO CONSIDERATION. IN NO EVENT SHALL THE MEDIATION

728

CONFERENCE BE LATER THAN 90 DAYS AFTER THE NOTICE OF

729

PRESUIT MEDIATION WAS FIRST SERVED UNLESS ALL PARTIES

730

MUTUALLY AGREE OTHERWISE. IN THE EVENT THAT YOU FAIL TO

731

RESPOND WITHIN 20 DAYS AFTER THE DATE OF THIS NOTICE,

732

FAIL TO PROVIDE THE MEDIATOR WITH DATES AND TIMES IN

733

WHICH YOU ARE AVAILABLE FOR THE MEDIATION CONFERENCE,

734

FAIL TO AGREE TO AT LEAST ONE OF THE MEDIATORS THAT THE

735

AGGRIEVED PARTY HAS LISTED, FAIL TO PAY OR PREPAY TO

736

THE MEDIATOR ONE-HALF OF THE COSTS INVOLVED, OR FAIL TO

737

APPEAR AND PARTICIPATE AT THE SCHEDULED MEDIATION, THE

738

AGGRIEVED PARTY WILL BE AUTHORIZED TO PROCEED WITH THE

739

FILING OF A LAWSUIT AGAINST YOU WITHOUT FURTHER NOTICE.

740

IN ANY SUBSEQUENT COURT ACTION, THE AGGRIEVED PARTY MAY

741

SEEK AN AWARD OF REASONABLE ATTORNEY'S FEES AND COSTS

742

INCURRED IN ATTEMPTING TO OBTAIN MEDIATION.

743

744

PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY

745

LAW, YOUR RESPONSE MUST BE MAILED BY CERTIFIED, FIRST-

746

CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE AGGRIEVED

747

PARTY LISTED ABOVE AT THE ADDRESS SHOWN ON THIS NOTICE

748

AND POSTMARKED NO MORE THAN 20 DAYS AFTER THE DATE OF

749

THE POSTMARKED DATE FOR THIS NOTICE OR WITHIN 20 DAYS

750

AFTER THE DATE UPON WHICH YOU WERE SERVED WITH A COPY

751

OF THIS NOTICE.

752

753

________________________

754

SIGNATURE OF AGGRIEVED PARTY

755

756

______________________

757

PRINTED NAME OF AGGRIEVED PARTY

758

759

RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR

760

ACCEPTANCE OF THE AGREEMENT TO MEDIATE.

761

762

AGREEMENT TO MEDIATE

763

764

THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN PRESUIT

765

MEDIATION AND AGREES TO ATTEND A MEDIATION CONDUCTED BY

766

THE FOLLOWING MEDIATOR(S) LISTED BELOW AS ACCEPTABLE

767

TO MEDIATE THIS DISPUTE:

768

769

(LIST ONE ACCEPTABLE MEDIATOR FROM THOSE LISTED BY THE

770

AGGRIEVED PARTY.)

771

772

THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE CAN

773

ATTEND AND PARTICIPATE IN THE PRESUIT MEDIATION AT THE

774

FOLLOWING DATES AND TIMES:

775

776

(LIST AT LEAST THREE AVAILABLE DATES AND TIMES WITHIN

777

THE 90-DAY TIME LIMIT DESCRIBED ABOVE.)

778

779

I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE

780

MEDIATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS AS

781

THE MEDIATOR MAY REQUIRE FOR THIS PURPOSE.

782

783

______________________________

784

SIGNATURE OF RESPONDING PARTY #1

785

______________________________

786

TELEPHONE CONTACT INFORMATION

787

______________________________

788

SIGNATURE AND TELEPHONE CONTACT INFORMATION OF

789

RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS

790

OWNED BY MORE THAN ONE PERSON, ALL PARCEL OWNERS OR

791

UNIT OWNERS WHO ARE SUBJECT OF THE DISPUTE MUST SIGN OR

792

HAVE A PERSON ACTING UNDER AUTHORITY OF A POWER OF

793

ATTORNEY SIGN.

794

795

(2)(a) Service of the notice of presuit mediation shall be

796

effected either by personal service, as provided in chapter 48,

797

or by certified mail, return receipt requested, in a letter in

798

substantial conformity with the form provided in subsection (1),

799

with an additional copy being sent by regular first-class mail,

800

to the address of the responding party as it last appears on the

801

books and records of the association or if not available, then as

802

it last appears in the official records of the county property

803

appraiser where the parcel in dispute is located. The responding

804

party has either 20 days after the postmarked date of the mailing

805

of the statutory notice or 20 days after the date the responding

806

party is served with a copy of the notice to serve a written

807

response to the aggrieved party. The response shall be served by

808

certified mail, return receipt requested, with an additional copy

809

being sent by regular first-class mail, to the address shown on

810

the statutory notice. The date of the postmark on the envelope

811

for the response shall constitute the date that the response is

812

served. Once the parties have agreed on a mediator, the mediator

813

may schedule or reschedule the mediation for a date and time

814

mutually convenient to the parties within 90 days after the date

815

of service of the statutory notice. After such 90-day period, the

816

mediator may reschedule the mediation only upon the mutual

817

written agreement of all the parties.

818

(b) The parties shall share the costs of presuit mediation

819

equally, including the fee charged by the mediator, if any,

820

unless the parties agree otherwise, and the mediator may require

821

advance payment of his or her reasonable fees and costs. Each

822

party shall be responsible for their own attorney's fees if a

823

party chooses to be represented by an attorney at the mediation.

824

825

provide a notice of opting out under s. 720.506, and demand

826

arbitration, or the responding party shall sign the agreement to

827

mediate included in the notice of presuit mediation and clearly

828

indicate the name of the mediator who is acceptable from the five

829

names provided by the aggrieved party, and the responding party

830

must provide in their response a list of dates and times in which

831

the responding party is available to participate in the mediation

832

within 90 days after the date the responding party was served,

833

either by process server or by certified mail, with the statutory

834

notice of presuit mediation.

835

(d) The mediator who has been selected and agreed to

836

mediate must schedule the mediation conference at a mutually

837

convenient time and place within that 90-day period, but if the

838

responding party does not provide a list of available dates and

839

times, the mediator is authorized to schedule a mediation

840

conference without taking the responding party's schedule and

841

convenience into consideration. Within 10 days after the

842

designation of the mediator, the mediator shall coordinate with

843

the parties and notify the parties in writing of the date, time,

844

and place of the mediation conference.

845

(e) The mediation conference must be held on the scheduled

846

date and may be rescheduled if a rescheduled date is approved by

847

the mediator. However, in no event shall the mediation be held

848

later than 90 days after the notice of presuit mediation was

849

first served, unless all parties mutually agree in writing

850

otherwise. If the presuit mediation is not completed within the

851

required time limits, the mediator shall declare an impasse

852

unless the mediation date is extended by mutual written agreement

853

by all parties and approved by the mediator.

854

(f) If the responding party fails to respond within 30 days

855

after the date of service of the statutory notice of presuit

856

mediation, fails to agree to at least one of the mediators listed

857

by the aggrieved party in the notice, fails to pay or prepay to

858

the mediator one-half of the costs of the mediator, or fails to

859

appear and participate at the scheduled mediation, the aggrieved

860

party shall be authorized to proceed with the filing of a lawsuit

861

without further notice.

862

(g)1. The failure of any party to respond to the statutory

863

notice of presuit mediation within 20 days, the failure to agree

864

upon a mediator, the failure to provide a listing of dates and

865

times in which the responding party is available to participate

866

in the mediation within 90 days after the date the responding

867

party was served with the statutory notice of presuit mediation,

868

the failure to make payment of fees and costs within the time

869

established by the mediator, or the failure to appear for a

870

scheduled mediation session without the approval of the mediator,

871

shall in each instance constitute a failure or refusal to

872

participate in the mediation process and shall operate as an

873

impasse in the presuit mediation by such party, entitling the

874

other party to file a lawsuit in court and to seek an award of

875

the costs and attorney's fees associated with the mediation.

876

2. Persons who fail or refuse to participate in the entire

877

mediation process may not recover attorney's fees and costs in

878

subsequent litigation relating to the same dispute between the

879

same parties. If any presuit mediation session cannot be

880

scheduled and conducted within 90 days after the offer to

881

participate in mediation was filed, through no fault of either

882

party, then an impasse shall be deemed to have occurred unless

883

the parties mutually agree in writing to extend this deadline. In

884

the event of such impasse, each party will be responsible for its

885

own costs and attorney's fees and one-half of any mediator fees

886

and filing fees, and either party may file a lawsuit in court

887

regarding the dispute.

888

720.506 Opt-out of presuit mediation.--A party served with

889

a notice of presuit mediation under s. 720.505, may opt out of

890

presuit mediation and demand that the dispute proceed under

891

nonbinding arbitration in the following manner provided in this

892

section:

893

(1) In lieu of a response to the notice of presuit

894

mediation as required under s. 720.505, the responding party may

895

serve upon the aggrieved party in the same manner as the response

896

to a notice for presuit mediation under s. 720.505, a notice of

897

opting out of mediation and demand that the dispute instead

898

proceed to presuit arbitration under s. 720.507.

899

(2) The aggrieved party shall be relieved from having to

900

satisfy the requirements of s. 720.504 as a condition precedent

901

to filing the demand for presuit arbitration.

902

(3) Except as otherwise provided in this part, the choice

903

of which presuit alternative dispute resolution procedure is used

904

shall be at the election of the aggrieved party who first

905

initiated such proceeding after complying with the provisions of

906

s. 720.504.

907

720.507 Presuit arbitration.--

908

(1) Disputes between an association and a parcel owner or

909

owners and disputes between parcel owners are subject to a demand

910

for presuit arbitration pursuant to s. 720.507, before the

911

dispute may be filed in court. A party who elects to use the

912

presuit arbitration procedure under this part shall serve on the

913

responding party a written notice of presuit arbitration in

914

substantially the following form:

915

916

STATUTORY NOTICE OF PRESUIT ARBITRATION

917

918

THE ALLEGED AGGRIEVED PARTY, ____________________,

919

HEREBY DEMANDS THAT ____________________, AS THE

920

RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT

921

ARBITRATION IN CONNECTION WITH THE FOLLOWING DISPUTE(S)

922

WITH YOU, WHICH BY STATUTE ARE OF A TYPE THAT ARE

923

SUBJECT TO PRESUIT ARBITRATION:

924

925

(LIST SPECIFIC NATURE OF THE DISPUTE OR DISPUTES TO BE

926

ARBITRATED AND THE AUTHORITY SUPPORTING A FINDING OF A

927

VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT

928

LIMITED TO, ALL APPLICABLE PROVISIONS OF THE GOVERNING

929

DOCUMENTS BELIEVED TO APPLY TO THE DISPUTE BETWEEN THE

930

PARTIES.)

931

932

PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,

933

THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT

934

ARBITRATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED

935

CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,

936

THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT

937

ARBITRATION WITH A NEUTRAL THIRD-PARTY ARBITRATOR IN

938

ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT

939

ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU

940

PARTICIPATE IN THIS PROCESS. IF YOU FAIL TO PARTICIPATE

941

IN THE ARBITRATION PROCESS, A LAWSUIT MAY BE BROUGHT

942

AGAINST YOU IN COURT WITHOUT FURTHER WARNING.

943

944

THE PROCESS OF ARBITRATION INVOLVES A NEUTRAL THIRD

945

PERSON WHO CONSIDERS THE LAW AND FACTS PRESENTED BY THE

946

PARTIES AND RENDERS A WRITTEN DECISION CALLED AN

947

"ARBITRATION AWARD." PURSUANT TO S. 720.507, FLORIDA

948

STATUTES, THE ARBITRATION AWARD SHALL BE FINAL UNLESS A

949

LAWSUIT IS FILED IN A COURT OF COMPETENT JURISDICTION

950

FOR THE JUDICIAL CIRCUIT IN WHICH THE PARCEL(S)

951

GOVERNED BY THE HOMEOWNERS' ASSOCIATION IS/ARE LOCATED

952

WITHIN 30 DAYS AFTER THE DATE THAT THE ARBITRATION

953

AWARD.

954

955

IF A SETTLEMENT AGREEMENT IS REACHED BEFORE THE

956

ARBITRATION AWARD, IT SHALL BE REDUCED TO WRITING AND

957

BECOME A BINDING AND ENFORCEABLE CONTRACT OF THE

958

PARTIES. A RESOLUTION OF ONE OR MORE DISPUTES IN THIS

959

FASHION AVOIDS THE NEED TO ARBITRATE THESE ISSUES OR TO

960

LITIGATE THESE ISSUES IN COURT AND SHALL BE THE SAME AS

961

A SETTLEMENT AGREEMENT REACHED BETWEEN THE PARTIES

962

UNDER S. 720.505, FLORIDA STATUTES. THE FAILURE OF A

963

PARTY TO PARTICIPATE IN THE ARBITRATION PROCESS MAY

964

RESULT IN THE ARBITRATOR ISSUING AN ARBITRATION AWARD

965

BY DEFAULT IN THE ARBITRATION. IF YOU HAVE FAILED OR

966

REFUSED TO PARTICIPATE IN THE ENTIRE ARBITRATION

967

PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER ATTORNEY'S

968

FEES, EVEN IF YOU PREVAIL IN A SUBSEQUENT COURT

969

PROCEEDING INVOLVING THE SAME DISPUTE BETWEEN THE SAME

970

PARTIES.

971

972

THE AGGRIEVED PARTY HAS SELECTED AT LEAST FIVE

973

ARBITRATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE

974

NEUTRAL AND QUALIFIED TO ARBITRATE THE DISPUTE. YOU

975

HAVE THE RIGHT TO SELECT ANY ONE OF THE ARBITRATORS.

976

THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR

977

MORE OF THE LISTED ARBITRATORS DOES NOT MEAN THAT THE

978

ARBITRATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL

979

ARBITRATOR. ANY ARBITRATOR WHO CANNOT ACT IN THIS

980

CAPACITY IS REQUIRED ETHICALLY TO DECLINE TO ACCEPT

981

ENGAGEMENT. THE NAMES OF THE FIVE ARBITRATORS THAT THE

982

AGGRIEVED PARTY HAS CHOSEN FROM WHICH YOU MAY SELECT

983

ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE NUMBERS,

984

AND HOURLY RATES, ARE AS FOLLOWS:

985

986

(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND

987

HOURLY RATES OF AT LEAST FIVE ARBITRATORS.

988

989

YOU MAY CONTACT THE OFFICES OF THESE ARBITRATORS TO

990

CONFIRM THAT THE LISTED ARBITRATORS WILL BE NEUTRAL AND

991

WILL NOT SHOW ANY FAVORITISM TOWARD EITHER PARTY.

992

993

UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART IV OF

994

CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE

995

PARTIES SHARE THE COSTS OF PRESUIT ARBITRATION EQUALLY,

996

INCLUDING THE FEE CHARGED BY THE ARBITRATOR. THE

997

PARTIES SHALL BE RESPONSIBLE FOR THEIR OWN ATTORNEY'S

998

FEES IF THEY CHOOSE TO EMPLOY AN ATTORNEY IN CONNECTION

999

WITH THE ARBITRATION. HOWEVER, USE OF AN ATTORNEY TO

1000

REPRESENT YOU FOR THE ARBITRATION IS NOT REQUIRED. THE

1001

ARBITRATOR SELECTED MAY REQUIRE THE ADVANCE PAYMENT OF

1002

SOME OR ALL OF THE ANTICIPATED FEES. THE AGGRIEVED

1003

PARTY HEREBY AGREES TO PAY OR PREPAY ONE-HALF OF THE

1004

SELECTED ARBITRATOR'S ESTIMATED FEES AND TO FORWARD

1005

THIS AMOUNT OR SUCH OTHER REASONABLE ADVANCE DEPOSITS

1006

AS THE ARBITRATOR WHO IS SELECTED REQUIRES FOR THIS

1007

PURPOSE. ANY FUNDS DEPOSITED WILL BE RETURNED TO YOU IF

1008

THESE FUNDS ARE IN EXCESS OF YOUR SHARE OF THE FEES

1009

INCURRED.

1010

1011

PLEASE SIGN THE AGREEMENT TO ARBITRATE BELOW AND

1012

CLEARLY INDICATE THE NAME OF THE ARBITRATOR WHO IS

1013

ACCEPTABLE TO YOU FROM THE NAMES LISTED BY THE

1014

AGGRIEVED PARTY.

1015

1016

YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE

1017

WITHIN 20 DAYS AFTER THE DATE THAT THE NOTICE OF

1018

PRESUIT ARBITRATION WAS EITHER PERSONALLY SERVED ON YOU

1019

OR 20 DAYS AFTER THE POSTMARKED DATE THAT THIS NOTICE

1020

OF PRESUIT ARBITRATION WAS SENT TO YOU BY CERTIFIED

1021

MAIL. YOU MUST ALSO PROVIDE A LIST OF AT LEAST THREE

1022

DATES AND TIMES IN WHICH YOU ARE AVAILABLE TO

1023

PARTICIPATE IN THE ARBITRATION THAT ARE WITHIN 90 DAYS

1024

AFTER EITHER THE DATE YOU WERE PERSONALLY SERVED OR 90

1025

DAYS AFTER THE POSTMARKED DATE OF THE CERTIFIED MAILING

1026

OF THIS STATUTORY NOTICE OF PRESUIT ARBITRATION. A COPY

1027

OF THIS NOTICE AND YOUR RESPONSE WILL BE PROVIDED BY

1028

THE AGGRIEVED PARTY TO THE ARBITRATOR SELECTED AND THE

1029

ARBITRATOR WILL SCHEDULE A MUTUALLY CONVENIENT TIME AND

1030

PLACE FOR THE ARBITRATION CONFERENCE TO BE HELD. IF YOU

1031

DO NOT PROVIDE A LIST OF AVAILABLE DATES AND TIMES, THE

1032

ARBITRATOR IS AUTHORIZED TO SCHEDULE AN ARBITRATION

1033

CONFERENCE WITHOUT TAKING YOUR SCHEDULE AND CONVENIENCE

1034

INTO CONSIDERATION. THE ARBITRATION CONFERENCE MUST BE

1035

HELD ON THE SCHEDULED DATE, OR ANY RESCHEUDLED DATE

1036

APPROVED BY THE ARBITRATOR. IN NO EVENT SHALL THE

1037

ARBITRATION CONFERENCE BE LATER THAN 90 DAYS AFTER

1038

NOTICE OF THE PRESUIT ARBITRATION WAS FIRST SERVED,

1039

UNLESS ALL PARTIES MUTUALLY AGREE IN WRITING OTHERWISE.

1040

IF THE ARBITRATION IS NOT COMPLETED WITHIN THE REQUIRED

1041

TIME LIMITS, THE ARBITRATOR SHALL ISSUE AN ARBITRATION

1042

AWARD, UNLESS THE HEARING IS EXTENDED BY MUTUAL WRITTEN

1043

AGREEMENT OF THE PARTIES AND APPROVED BY THE

1044

ARBITRATOR. IN THE EVENT THAT YOU FAIL TO RESPOND

1045

WITHIN 20 DAYS AFTER THE DATE YOU WERE SERVED WITH A

1046

COPY OF THIS NOTICE, FAIL TO PROVIDE THE ARBITRATOR

1047

WITH DATES AND TIMES IN WHICH YOU ARE AVAILABLE FOR THE

1048

ARBITRATION CONFERENCE, FAIL TO AGREE EITHER TO ONE OF

1049

THE ARBITRATORS THAT THE AGGRIEVED PARTY HAS NAMED,

1050

FAIL TO PAY OR PREPAY TO THE ARBITRATOR ONE-HALF OF THE

1051

COSTS INVOLVED AS REQUIRED, OR FAIL TO APPEAR AND

1052

PARTICIPATE AT THE SCHEDULED ARBITRATION CONFERENCE,

1053

THE AGGRIEVED PARTY MAY REQUEST THE ARBITRATOR TO ISSUE

1054

AN ARBITRATION AWARD. IN THE SUBSEQUENT COURT ACTION,

1055

THE AGGRIEVED PARTY SHALL BE ENTITLED TO RECOVER AN

1056

AWARD OF REASONABLE ATTORNEY'S FEES AND COSTS,

1057

INCLUDING ANY FEES PAID TO THE ARBITRATOR, INCURRED IN

1058

OBTAINING AN ARBITRATION AWARD PURSUANT TO S. 720.507,

1059

FLORIDA STATUTES.

1060

1061

PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY

1062

LAW, YOUR RESPONSE MUST BE POSTMARKED AND MAILED BY

1063

CERTIFIED, FIRST-CLASS MAIL, RETURN RECEIPT REQUESTED,

1064

TO THE ADDRESS SHOWN ON THIS NOTICE OF PRESUIT

1065

ARBITRATION.

1066

1067

_________________________

1068

Signature of aggrieved party

1069

1070

______________________

1071

PRINTED NAME OF AGGRIEVED PARTY

1072

1073

RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR

1074

ACCEPTANCE OF THE AGREEMENT TO ARTITRATE.

1075

1076

AGREEMENT TO ARBITRATE

1077

1078

THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN PRESUIT

1079

ARBITRATION AND AGREES TO ATTEND AN ARBITRATION

1080

CONDUCTED BY THE FOLLOWING ARBITRATOR LISTED BELOW AS

1081

SOMEONE WHO WOULD BE ACCEPTABLE TO ARBITRATE THIS

1082

DISPUTE:

1083

1084

(IN YOUR RESPONSE EITHER SELECT THE NAME OF ONE

1085

ARBITRATOR THAT IS ACCEPTABLE TO YOU FROM THOSE

1086

ARBITRATORS LISTED BY THE AGGRIEVED PARTY.)

1087

1088

THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE IS

1089

AVAILABLE AND ABLE TO ATTEND AND PARTICIPATE IN THE

1090

PRESUIT ARBITRATION CONFERENCE AT THE FOLLOWING DATES

1091

AND TIMES:

1092

1093

(LIST ALL AVAILABLE DATES AND TIMES, OF WHICH THERE

1094

MUST BE AT LEAST THREE, WITHIN 90 DAYS AFTER THE DATE

1095

ON WHICH YOU WERE SERVED, EITHER BY PROCESS SERVER OR

1096

BY CERTIFIED MAIL, WITH THE NOTICE OF PRESUIT

1097

ARBITRATION.)

1098

1099

I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE

1100

ARBITRATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS

1101

AS THE ARBITRATOR MAY REQUIRE FOR THIS PURPOSE.

1102

1103

______________________________

1104

SIGNATURE OF RESPONDING PARTY #1

1105

______________________________

1106

TELEPHONE CONTACT INFORMATION

1107

______________________________

1108

SIGNATURE AND TELEPHONE CONTACT INFORMATION OF

1109

RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS

1110

OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN, OR

1111

A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF A

1112

VALID POWER OF ATTORNEY GRANTED BY AN OWNER.

1113

1114

(2)(a) Service of the statutory notice of presuit

1115

arbitration shall be effected either by personal service, as

1116

provided in chapter 48, or by certified mail, return receipt

1117

requested, in a letter in substantial conformity with the form

1118

provided in subsection (1), with an additional copy being sent by

1119

regular first-class mail, to the address of the responding party

1120

as it last appears on the books and records of the association,

1121

or if not available, the last address as it appears on the

1122

official records of the county property appraiser for the county

1123

in which the property is situated that is subject to the

1124

association documents. The responding party has 20 days after the

1125

postmarked date of the certified mailing of the statutory notice

1126

of presuit arbitration or 20 days after the date the responding

1127

party is personally served with the statutory notice of presuit

1128

arbitration by to serve a written response to the aggrieved

1129

party. The response shall be served by certified mail, return

1130

receipt requested, with an additional copy being sent by regular

1131

first-class mail, to the address shown on the statutory notice of

1132

presuit arbitration. The postmarked date on the envelope of the

1133

response shall constitute the date the response was served.

1134

(b) The parties shall share the costs of presuit

1135

arbitration equally, including the fee charged by the arbitrator,

1136

if any, unless the parties agree otherwise, and the arbitrator

1137

may require advance payment of his or her reasonable fees and

1138

costs. Each party shall be responsible for all of their own

1139

attorney's fees if a party chooses to be represented by an

1140

attorney for the arbitration proceedings.

1141

1142

the agreement to arbitrate included in the notice of presuit

1143

arbitration and clearly indicate the name of the arbitrator who

1144

is acceptable of those arbitrators listed by the aggrieved party.

1145

The responding party must provide a list of at least three dates

1146

and times in which the responding party is available to

1147

participate in the arbitration conference within 90 days after

1148

the date the responding party was served with the statutory

1149

notice of presuit arbitration.

1150

2. The arbitrator must schedule the arbitration conference

1151

at a mutually convenient time and place, but if the responding

1152

party does not provide a list of available dates and times, the

1153

arbitrator is authorized to schedule an arbitration conference

1154

without taking the responding party's schedule and convenience

1155

into consideration. Within 10 days after the designation of the

1156

arbitrator, the arbitrator shall notify the parties in writing of

1157

the date, time, and place of the arbitration conference.

1158

3. The arbitration conference must be held on the scheduled

1159

date and may be rescheduled if approved by the arbitrator.

1160

However, in no event shall the arbitration hearing be later than

1161

90 days after the notice of presuit arbitration was first served,

1162

unless all parties mutually agree in writing otherwise. If the

1163

arbitration hearing is not completed within the required time

1164

limits, the arbitrator may issue an arbitration award unless the

1165

time for the hearing is extended as provided herein. If the

1166

responding party fails to respond within 20 days after the date

1167

of statutory notice of presuit arbitration, fails to agree to at

1168

least one of the arbitrators that have been listed by the

1169

aggrieved party in the presuit notice of arbitration, fails to

1170

pay or prepay to the arbitrator one-half of the costs involved,

1171

or fails to appear and participate at the scheduled arbitration,

1172

the aggrieved party is authorized to proceed with a request that

1173

the arbitrator issue an arbitration award.

1174

(d)1. The failure of any party to respond to the statutory

1175

notice of presuit arbitration within 20 days, the failure to

1176

either select one of the five arbitrators listed by the aggrieved

1177

party, the failure to provide a listing of dates and times in

1178

which the responding party is available to participate in the

1179

arbitration conference within 90 days after the date of the

1180

responding party being served with the statutory notice of

1181

presuit arbitration, the failure to make payment of fees and

1182

costs as required within the time established by the arbitrator,

1183

or the failure to appear for an arbitration conference without

1184

the approval of the arbitrator, shall entitle the other party to

1185

request the arbitrator to enter an arbitration award including an

1186

award of the reasonable costs and attorney's fees associated with

1187

the arbitration.

1188

2. Persons who fail or refuse to participate in the entire

1189

arbitration process may not recover attorney's fees and costs in

1190

any subsequent litigation proceeding relating to the same dispute

1191

involving the same parties.

1192

(3)(a) In an arbitration proceeding, the arbitrator may not

1193

consider any unsuccessful mediation of the dispute.

1194

(b) An arbitrator in a proceeding initiated pursuant to the

1195

provisions of this part may shorten the time for discovery or

1196

otherwise limit discovery in a manner consistent with the policy

1197

goals of this part to reduce the time and expense of litigating

1198

homeowners' association disputes initiated pursuant to this

1199

chapter and promoting an expeditious alternative dispute

1200

resolution procedure for parties to such actions.

1201

(4) At the request of any party to the arbitration, the

1202

arbitrator may issue subpoenas for the attendance of witnesses

1203

and the production of books, records, documents, and other

1204

evidence, and any party on whose behalf a subpoena is issued may

1205

apply to the court for orders compelling such attendance and

1206

production. Subpoenas shall be served and are enforceable in the

1207

manner provided by the Florida Rules of Civil Procedure.

1208

Discovery may, at the discretion of the arbitrator, be permitted

1209

in the manner provided by the Florida Rules of Civil Procedure.

1210

(5) The final arbitration award shall be sent to the

1211

parties in writing no later than 30 days after the date of the

1212

arbitration hearing, absent extraordinary circumstances

1213

necessitating a later filing the reasons for which shall be

1214

stated in the final award if filed more than 30 days after the

1215

date of the final session of the arbitration conference. An

1216

agreed arbitration award is final in those disputes in which the

1217

parties have mutually agreed to be bound. An arbitration award

1218

decided by the arbitrator is final unless a lawsuit seeking a

1219

trial de novo is filed in a court of competent jurisdiction

1220

within 30 days after the date of the arbitration award. The right

1221

to file for a trial de novo entitles the parties to file a

1222

complaint in the appropriate trial court for a judicial

1223

resolution of the dispute. The prevailing party in an arbitration

1224

proceeding shall be awarded the costs of the arbitration and

1225

reasonable attorney's fees in an amount determined by the

1226

arbitrator.

1227

(6) The party filing a motion for a trial de novo shall be

1228

assessed the other party's arbitration costs, court costs, and

1229

other reasonable costs, including attorney's fees, investigation

1230

expenses, and expenses for expert or other testimony or evidence

1231

incurred after the arbitration hearing if the judgment upon the

1232

trial de novo is not more favorable than the final arbitration

1233

award.

1234

720.508 Rules of procedure.--

1235

(1) Presuit mediation and presuit arbitration proceedings

1236

under this part must be conducted in accordance with the

1237

applicable Florida Rules of Civil Procedure and rules governing

1238

mediations and arbitrations under chapter 44, except this part

1239

shall be controlling to the extent of any conflict with other

1240

applicable rules or statutes. The arbitrator can shorten any

1241

applicable time period and otherwise limit the scope of discovery

1242

on request of the parties or within the discretion of the

1243

arbitrator exercised consistent with the purpose and objective of

1244

reducing the expense and expeditiously concluding proceedings

1245

under this part.

1246

(2) Presuit mediation proceedings under s. 720.505 are

1247

privileged and confidential to the same extent as court-ordered

1248

mediation under chapter 44. An arbitrator or judge may not

1249

consider any information or evidence arising from the presuit

1250

mediation proceeding except in a proceeding to impose sanctions

1251

for failure to attend a presuit mediation session or to enforce a

1252

mediated settlement agreement.

1253

(3) Persons who are not parties to the dispute may not

1254

attend the presuit mediation conference without consent of all

1255

parties, with the exception of counsel for the parties and a

1256

corporate representative designated by the association. Presuit

1257

mediations under this part are not a board meeting for purposes

1258

of notice and participation set forth in this chapter.

1259

(4) Attendance at a mediation conference by the board of

1260

directors shall not require notice or participation by nonboard

1261

members as otherwise required by this chapter for meetings of the

1262

board.

1263

(5) Settlement agreements resulting from a mediation or

1264

arbitration proceeding do not have precedential value in

1265

proceedings involving parties other than those participating in

1266

the mediation or arbitration.

1267

(6) Arbitration awards by an arbitrator shall have

1268

precedential value in other proceedings involving the same

1269

association or with respect to the same parcel owner.

1270

720.509 Mediators and arbitrators; qualifications and

1271

registration.--A person is authorized to conduct mediation or

1272

arbitration under this part if he or she has been certified as a

1273

circuit court civil mediator pursuant to the requirements adopted

1274

pursuant to s. 44.106, is a member in good standing with The

1275

Florida Bar, and otherwise meets all other requirements imposed

1276

by chapter 44.

1277

720.510 Enforcement of mediation agreement or arbitration

1278

award.--

1279

(1) A mediation settlement may be enforced through the

1280

county or circuit court, as applicable, and any costs and

1281

attorney's fees incurred in the enforcement of a settlement

1282

agreement reached at mediation shall be awarded to the prevailing

1283

party in any enforcement action.

1284

(2) Any party to an arbitration proceeding may enforce an

1285

arbitration award by filing a petition in a court of competent

1286

jurisdiction in which the homeowners' association is located. The

1287

prevailing party in such proceeding shall be awarded reasonable

1288

attorney's fees and costs incurred in such proceeding.

1289

(3) If a complaint is filed seeking a trial de novo, the

1290

arbitration award shall be stayed and a petition to enforce the

1291

award may not be granted. Such award, however, shall be

1292

admissible in the court proceeding seeking a trial de novo.

1293

Section 12. This act shall take effect July 1, 2008.

1294

1295

================ T I T L E A M E N D M E N T ================

1296

And the title is amended as follows:

1297

Delete everything before the enacting clause

1298

and insert:

1299

A bill to be entitled

1300

An act relating to residential properties; amending s.

1301

514.011, F.S.; defining the term "homeowners'

1302

association"; amending s. 514.0115, F.S.; providing for

1303

the regulation and exemption from regulation for

1304

homeowners' association swimming pools; amending s.

1305

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

1306

720.303, F.S.; revising provisions relating to homeowners'

1307

association board meetings, inspection and copying of

1308

records, and reserve accounts of budgets; prohibiting a

1309

salary or compensation for certain association personnel;

1310

providing exceptions; amending s. 720.305, F.S.;

1311

authorizing fines assessed against members which exceed a

1312

certain amount to become a lien against a parcel; amending

1313

s. 720.306, F.S.; providing requirements for secret

1314

ballots; requiring newly elected members of a board of

1315

directors to make certain certifications in writing to the

1316

association; providing for disqualification for failure to

1317

make such certifications; requiring an association to

1318

retain certifications for a specified time; amending s.

1319

720.401, F.S.; requiring that the disclosure summary to

1320

prospective parcel owners include additional provisions;

1321

amending s. 34.01, F.S.; correcting a cross-reference to

1322

conform; amending s. 720.302, F.S.; correcting a cross-

1323

reference to conform; establishing legislative intent;

1324

repealing s. 720.311, F.S., relating to a procedure for

1325

dispute resolution in homeowners' associations; providing

1326

that dispute resolution cases pending on the date of

1327

repeal will continue under the repealed provisions;

1328

creating part IV of ch. 720, F.S.; creating s. 720.501,

1329

F.S.; providing a short title; creating s. 720.502, F.S.;

1330

creating legislative findings; creating s. 720.503, F.S.;

1331

setting applicability of provisions for mediation and

1332

arbitration applicable to disputes in homeowners'

1333

associations; creating exceptions; proving applicability;

1334

tolling applicable statutes of limitations; creating s.

1335

720.504, F.S; requiring that the notice of dispute be

1336

delivered before referral to mediation; creating s.

1337

720.505, F.S.; creating a statutory notice form for

1338

referral to mediation; requiring delivery by certified

1339

mail or personal delivery; setting deadlines; requiring

1340

parties to share costs; requiring the selection of a

1341

mediator and times to meet; providing penalties for

1342

failure to mediate; creating s. 720.506, F.S.; creating an

1343

opt-out provision; creating s. 720.507, F.S.; creating a

1344

statutory notice form for referral to arbitration;

1345

requiring delivery by certified mail or personal delivery;

1346

setting deadlines; requiring parties to share costs;

1347

requiring the selection of an arbitrator and times to

1348

meet; providing penalties for failure to arbitrate;

1349

creating s. 720.508, F.S.; providing for rules of

1350

procedure; providing for confidentiality; creating s.

1351

720.509, F.S.; setting qualifications for mediators and

1352

arbitrators; creating s. 720.510, F.S.; providing for

1353

enforcement of mediation agreements and arbitration

1354

awards; providing an effective date.

4/30/2008 7:12:00 PM 24-09298-08

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