CS/CS/HB 679

1	A bill to be entitled
2	An act relating to residential properties; amending s.
3	514.011, F.S.; defining the term "homeowners'
4	association"; amending s. 514.0115, F.S.; providing for
5	the regulation and exemption from regulation for
6	homeowners' association swimming pools; amending s.
7	515.25, F.S.; conforming a cross-reference; amending s.
8	718.112, F.S.; providing requirements for the location of
9	annual unit owner meetings; revising terms of service for
10	board members; prohibiting certain persons from serving on
11	the board; requiring the association to provide a
12	certification form to unit owners for specified purposes;
13	authorizing an association consisting of a specified
14	maximum number of units to provide for different voting
15	and election procedures in its bylaws by affirmative vote
16	of a majority of the association's voting interests;
17	revising requirements related to the annual budget;
18	requiring proxy questions relating to reserves to contain
19	a specified statement; providing for the removal of board
20	members under certain circumstances; requiring that
21	directors who are delinquent in certain payments owed in
22	excess of certain periods of time be suspended from office
23	or deemed to have abandoned their offices; requiring that
24	directors charged with certain offenses involving an
25	association's funds or property be suspended from office
26	pending resolution of the charge; providing for the
27	reinstatement of such officers or directors under certain
28	circumstances; requiring each newly elected director to
29	certify to the secretary of the association that he or she
30	has read the association's declarations of covenants and
31	restrictions, articles of incorporation, bylaws, and
32	current written policies and will work to uphold such
33	documents and policies to the best of his or her ability;
34	providing that a failure to timely file the statement
35	automatically disqualifies the director from service on
36	the association's board of directors; requiring the
37	secretary of the association to retain a director's
38	certification for inspection by the members for a
39	specified period of years after a director's election;
40	amending s. 720.303, F.S.; revising provisions relating to
41	homeowners' association board meetings, inspection and
42	copying of records, and reserve accounts of budgets;
43	prohibiting a salary or compensation for certain
44	association personnel; providing exceptions; amending s.
45	720.305, F.S.; authorizing fines assessed against members
46	which exceed a certain amount to become a lien against a
47	parcel; amending s. 720.306, F.S.; providing requirements
48	for secret ballots; requiring newly elected members of a
49	board of directors to make certain certifications in
50	writing to the association; providing for disqualification
51	for failure to make such certifications; requiring an
52	association to retain certifications for a specified time;
53	amending s. 720.401, F.S.; requiring that the disclosure
54	summary to prospective parcel owners include additional
55	provisions; amending s. 34.01, F.S.; correcting a cross-
56	reference to conform; amending s. 720.302, F.S.;
57	correcting a cross-reference to conform; establishing
58	legislative intent; repealing s. 720.311, F.S., relating
59	to a procedure for dispute resolution in homeowners'
60	associations; providing that dispute resolution cases
61	pending on the date of repeal will continue under the
62	repealed provisions; creating part IV of ch. 720, F.S.;
63	creating s. 720.501, F.S.; providing a short title;
64	creating s. 720.502, F.S.; creating legislative findings;
65	creating s. 720.503, F.S.; setting applicability of
66	provisions for mediation and arbitration applicable to
67	disputes in homeowners' associations; creating exceptions;
68	proving applicability; tolling applicable statutes of
69	limitations; creating s. 720.504, F.S; requiring that the
70	notice of dispute be delivered before referral to
71	mediation; creating s. 720.505, F.S.; creating a statutory
72	notice form for referral to mediation; requiring delivery
73	by certified mail or personal delivery; setting deadlines;
74	requiring parties to share costs; requiring the selection
75	of a mediator and times to meet; providing penalties for
76	failure to mediate; creating s. 720.506, F.S.; creating an
77	opt-out provision; creating s. 720.507, F.S.; creating a
78	statutory notice form for referral to arbitration;
79	requiring delivery by certified mail or personal delivery;
80	setting deadlines; requiring parties to share costs;
81	requiring the selection of an arbitrator and times to
82	meet; providing penalties for failure to arbitrate;
83	creating s. 720.508, F.S.; providing for rules of
84	procedure; providing for confidentiality; creating s.
85	720.509, F.S.; setting qualifications for mediators and
86	arbitrators; creating s. 720.510, F.S.; providing for
87	enforcement of mediation agreements and arbitration
88	awards; providing that any three or more condominium
89	associations may form a self-insurance fund for certain
90	purposes under certain conditions; requiring that the
91	contract for participating in the fund disclose certain
92	information and contain certain provisions; requiring
93	that a disclosure be provided to an association before
94	execution of such contract; requiring that such disclosure
95	contain certain information; providing for the charging of
96	contributions for participation in the fund; requiring
97	that the majority of the governing board of the fund be
98	participants in the fund; providing powers of the
99	governing board; authorizing the fund to enter into
100	certain contracts; requiring that the fund use a general
101	lines agent meeting certain criteria when soliciting
102	participation in the fund; prohibiting the fund from
103	taking certain actions when selecting such agent;
104	requiring that the fund be independently audited at
105	specified intervals; authorizing the fund to accumulate
106	funds or distribute excess funds to participants on a
107	pro rata basis; providing for a deductible for
108	participants in the fund; exempting such self-insurance
109	funds from certain requirements, regulations, fees, taxes,
110	and assessments; providing an effective date.
111
112	Be It Enacted by the Legislature of the State of Florida:
113
114	Section 1.  Section 514.011, Florida Statutes, is amended
115	to read:
116	514.011  Definitions.--As used in this chapter, the term:
117	(1)  "Department" means the Department of Health.
118	(2)  "Homeowners' association" has the same meaning as in
119	s. 720.301.
120	(3)(5)  "Portable pool" means a pool or spa, and related
121	equipment systems of any kind, which is designed or intended to
122	be movable from location to location.
123	(4)(3)  "Private pool" means a facility used only by an
124	individual, family, or living unit members and their guests
125	which does not serve any type of cooperative housing or joint
126	tenancy of five or more living units.
127	(5)(4)  "Public bathing place" means a body of water,
128	natural or modified by humans, for swimming, diving, and
129	recreational bathing, together with adjacent shoreline or land
130	area, buildings, equipment, and appurtenances pertaining
131	thereto, used by consent of the owner or owners and held out to
132	the public by any person or public body, irrespective of whether
133	a fee is charged for the use thereof. The bathing water areas of
134	public bathing places include, but are not limited to, lakes,
135	ponds, rivers, streams, artificial impoundments, and waters
136	along the coastal and intracoastal beaches and shores of the
137	state.
138	(6)(2)  "Public swimming pool" or "public pool" means a
139	watertight structure of concrete, masonry, or other approved
140	materials, which is located either indoors or outdoors, used for
141	bathing or swimming by humans, and filled with a filtered and
142	disinfected water supply, together with buildings,
143	appurtenances, and equipment used in connection therewith. A
144	public swimming pool or public pool shall mean a conventional
145	pool, spa-type pool, wading pool, special purpose pool, or water
146	recreation attraction, to which admission may be gained with or
147	without payment of a fee and includes, but is not limited to,
148	pools operated by or serving camps, churches, cities, counties,
149	day care centers, group home facilities for eight or more
150	clients, health spas, institutions, parks, state agencies,
151	schools, subdivisions, or the cooperative living-type projects
152	of five or more living units, such as apartments,
153	boardinghouses, hotels, mobile home parks, motels, recreational
154	vehicle parks, and townhouses.
155	Section 2.  Subsection (2) of section 514.0115, Florida
156	Statutes, is amended to read:
157	514.0115  Exemptions from supervision or regulation;
158	variances.--
159	(2)(a)  Pools serving no more than 32 condominium or
160	cooperative units or 32 parcels governed by a homeowners'
161	association which are not operated as a public lodging
162	establishment are shall be exempt from supervision under this
163	chapter, except for water quality.
164	(b)  Pools serving condominium or cooperative associations
165	of more than 32 units or a homeowners' association of more than
166	32 parcels and whose recorded documents prohibit the rental or
167	sublease of the units for periods of less than 60 days are
168	exempt from supervision under this chapter, except that the
169	condominium or cooperative owner or association or homeowners'
170	association must file an application applications with the
171	department and obtain construction plan plans approval and
172	receive an initial operating permit. The department shall
173	inspect the swimming pools at such places annually, at the fee
174	set forth in s. 514.033(3), or upon request by a unit owner, to
175	determine compliance with department rules relating to water
176	quality and lifesaving equipment. The department may not require
177	compliance with rules relating to swimming pool lifeguard
178	standards.
179	Section 3.  Subsection (9) of section 515.25, Florida
180	Statutes, is amended to read:
181	515.25  Definitions.--As used in this chapter, the term:
182	(9)  "Public swimming pool" means a swimming pool, as
183	defined in s. 515.011 514.011(2), which is operated, with or
184	without charge, for the use of the general public; however, the
185	term does not include a swimming pool located on the grounds of
186	a private residence.
187	Section 4.  Paragraph (d) of subsection (2) of section
188	718.112, Florida Statutes, is amended to read:
189	718.112  Bylaws.--
190	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
191	following and, if they do not do so, shall be deemed to include
192	the following:
193	(d)  Unit owner meetings.--
194	1.  There shall be an annual meeting of the unit owners
195	held at the location provided in the association bylaws and, if
196	the bylaws are silent as to the location, the meeting shall be
197	held within 45 miles of the condominium property. However, such
198	distance requirement does not apply to an association governing
199	a timeshare condominium. Unless the bylaws provide otherwise, a
200	vacancy on the board caused by the expiration of a director's
201	term shall be filled by electing a new board member, and the
202	election shall be by secret ballot; however, if the number of
203	vacancies equals or exceeds the number of candidates, no
204	election is required. If there is no provision in the bylaws for
205	terms of the members of the board, The terms of all members of
206	the board shall expire upon the election of their successors at
207	the annual meeting and such board members may stand for
208	reelection unless otherwise permitted by the bylaws. In the
209	event that the bylaws permit staggered terms of no more than 2
210	years and upon approval of a majority of the total voting
211	interests, the association board members may serve 2-year
212	staggered terms. If no person is interested in or demonstrates
213	an intention to run for the position of a board member whose
214	term has expired according to the provisions of this
215	subparagraph, such board member whose term has expired shall be
216	automatically reappointed to the board of administration and
217	need not stand for reelection. In a condominium association of
218	more than 10 units, coowners of a unit may not serve as members
219	of the board of directors at the same time. Any unit owner
220	desiring to be a candidate for board membership shall comply
221	with subparagraph 3. A person who has been suspended or removed
222	by the division under this chapter, or who is delinquent in the
223	payment of any fee or assessment as provided in paragraph (n),
224	is not eligible for board membership. A person who has been
225	convicted of any felony in this state or by any court of record
226	in a the United States District or Territorial Court, or who has
227	been convicted of any offense in another jurisdiction that would
228	be considered a felony if committed in this state, and who has
229	not had his or her right to vote restored pursuant to law in the
230	jurisdiction of his or her residence is not eligible for board
231	membership unless such felon's civil rights have been restored
232	for a period of no less than 5 years as of the date on which
233	such person seeks election to the board. The validity of an
234	action by the board is not affected if it is later determined
235	that a member of the board is ineligible for board membership
236	due to having been convicted of a felony.
237	2.  The bylaws shall provide the method of calling meetings
238	of unit owners, including annual meetings. Written notice, which
239	notice must include an agenda, shall be mailed, hand delivered,
240	or electronically transmitted to each unit owner at least 14
241	days prior to the annual meeting and shall be posted in a
242	conspicuous place on the condominium property at least 14
243	continuous days preceding the annual meeting. Upon notice to the
244	unit owners, the board shall by duly adopted rule designate a
245	specific location on the condominium property or association
246	property upon which all notices of unit owner meetings shall be
247	posted; however, if there is no condominium property or
248	association property upon which notices can be posted, this
249	requirement does not apply. In lieu of or in addition to the
250	physical posting of notice of any meeting of the unit owners on
251	the condominium property, the association may, by reasonable
252	rule, adopt a procedure for conspicuously posting and repeatedly
253	broadcasting the notice and the agenda on a closed-circuit cable
254	television system serving the condominium association. However,
255	if broadcast notice is used in lieu of a notice posted
256	physically on the condominium property, the notice and agenda
257	must be broadcast at least four times every broadcast hour of
258	each day that a posted notice is otherwise required under this
259	section. When broadcast notice is provided, the notice and
260	agenda must be broadcast in a manner and for a sufficient
261	continuous length of time so as to allow an average reader to
262	observe the notice and read and comprehend the entire content of
263	the notice and the agenda. Unless a unit owner waives in writing
264	the right to receive notice of the annual meeting, such notice
265	shall be hand delivered, mailed, or electronically transmitted
266	to each unit owner. Notice for meetings and notice for all other
267	purposes shall be mailed to each unit owner at the address last
268	furnished to the association by the unit owner, or hand
269	delivered to each unit owner. However, if a unit is owned by
270	more than one person, the association shall provide notice, for
271	meetings and all other purposes, to that one address which the
272	developer initially identifies for that purpose and thereafter
273	as one or more of the owners of the unit shall so advise the
274	association in writing, or if no address is given or the owners
275	of the unit do not agree, to the address provided on the deed of
276	record. An officer of the association, or the manager or other
277	person providing notice of the association meeting, shall
278	provide an affidavit or United States Postal Service certificate
279	of mailing, to be included in the official records of the
280	association affirming that the notice was mailed or hand
281	delivered, in accordance with this provision.
282	3.  The members of the board shall be elected by written
283	ballot or voting machine. Proxies shall in no event be used in
284	electing the board, either in general elections or elections to
285	fill vacancies caused by recall, resignation, or otherwise,
286	unless otherwise provided in this chapter. Not less than 60 days
287	before a scheduled election, the association shall mail,
288	deliver, or electronically transmit, whether by separate
289	association mailing or included in another association mailing,
290	delivery, or transmission, including regularly published
291	newsletters, to each unit owner entitled to a vote, a first
292	notice of the date of the election. Any unit owner or other
293	eligible person desiring to be a candidate for the board must
294	give written notice to the association not less than 40 days
295	before a scheduled election. Together with the written notice
296	and agenda as set forth in subparagraph 2., the association
297	shall mail, deliver, or electronically transmit a second notice
298	of the election to all unit owners entitled to vote therein,
299	together with a ballot which shall list all candidates. Upon
300	request of a candidate, the association shall include an
301	information sheet, no larger than 81/2 inches by 11 inches,
302	which must be furnished by the candidate not less than 35 days
303	before the election, to be included with the mailing, delivery,
304	or transmission of the ballot, with the costs of mailing,
305	delivery, or electronic transmission and copying to be borne by
306	the association. The association is not liable for the contents
307	of the information sheets prepared by the candidates. In order
308	to reduce costs, the association may print or duplicate the
309	information sheets on both sides of the paper. The division
310	shall by rule establish voting procedures consistent with the
311	provisions contained herein, including rules establishing
312	procedures for giving notice by electronic transmission and
313	rules providing for the secrecy of ballots. Elections shall be
314	decided by a plurality of those ballots cast. There shall be no
315	quorum requirement; however, at least 20 percent of the eligible
316	voters must cast a ballot in order to have a valid election of
317	members of the board. No unit owner shall permit any other
318	person to vote his or her ballot, and any such ballots
319	improperly cast shall be deemed invalid, provided any unit owner
320	who violates this provision may be fined by the association in
321	accordance with s. 718.303. A unit owner who needs assistance in
322	casting the ballot for the reasons stated in s. 101.051 may
323	obtain assistance in casting the ballot. The regular election
324	shall occur on the date of the annual meeting. The provisions of
325	this subparagraph shall not apply to timeshare condominium
326	associations. Notwithstanding the provisions of this
327	subparagraph, an election is not required unless more candidates
328	file notices of intent to run or are nominated than board
329	vacancies exist.
330	4.  Any approval by unit owners called for by this chapter
331	or the applicable declaration or bylaws, including, but not
332	limited to, the approval requirement in s. 718.111(8), shall be
333	made at a duly noticed meeting of unit owners and shall be
334	subject to all requirements of this chapter or the applicable
335	condominium documents relating to unit owner decisionmaking,
336	except that unit owners may take action by written agreement,
337	without meetings, on matters for which action by written
338	agreement without meetings is expressly allowed by the
339	applicable bylaws or declaration or any statute that provides
340	for such action.
341	5.  Unit owners may waive notice of specific meetings if
342	allowed by the applicable bylaws or declaration or any statute.
343	If authorized by the bylaws, notice of meetings of the board of
344	administration, unit owner meetings, except unit owner meetings
345	called to recall board members under paragraph (j), and
346	committee meetings may be given by electronic transmission to
347	unit owners who consent to receive notice by electronic
348	transmission.
349	6.  Unit owners shall have the right to participate in
350	meetings of unit owners with reference to all designated agenda
351	items. However, the association may adopt reasonable rules
352	governing the frequency, duration, and manner of unit owner
353	participation.
354	7.  Any unit owner may tape record or videotape a meeting
355	of the unit owners subject to reasonable rules adopted by the
356	division.
357	8.  Unless otherwise provided in the bylaws, any vacancy
358	occurring on the board before the expiration of a term may be
359	filled by the affirmative vote of the majority of the remaining
360	directors, even if the remaining directors constitute less than
361	a quorum, or by the sole remaining director. In the alternative,
362	a board may hold an election to fill the vacancy, in which case
363	the election procedures must conform to the requirements of
364	subparagraph 3. unless the association governs 10 units or less
365	and has opted out of the statutory election process, in which
366	case the bylaws of the association control. Unless otherwise
367	provided in the bylaws, a board member appointed or elected
368	under this section shall fill the vacancy for the unexpired term
369	of the seat being filled. Filling vacancies created by recall is
370	governed by paragraph (j) and rules adopted by the division.
371	9.  Within 30 days after being elected to the board of
372	directors, a new director shall certify in writing to the
373	secretary of the association that he or she has read the
374	association's declarations of covenants and restrictions,
375	articles of incorporation, bylaws, and current written policies,
376	he or she will work to uphold such documents and policies to the
377	best of his or her ability, and he or she will faithfully
378	discharge his or her fiduciary responsibility to the
379	association's members. Failure to timely file the statement
380	automatically disqualifies the director from service on the
381	association's board of directors. The secretary shall cause the
382	association to retain a director's certification for inspection
383	by the members for 5 years after a director's election. Failure
384	to have such certification on file does not affect the validity
385	of any appropriate action.
386
387	Notwithstanding subparagraphs (b)2. and (d)3., an association of
388	10 or fewer units may, by the affirmative vote of a majority of
389	the total voting interests, provide for different voting and
390	election procedures in its bylaws, which vote may be by a proxy
391	specifically delineating the different voting and election
392	procedures. The different voting and election procedures may
393	provide for elections to be conducted by limited or general
394	proxy.
395	Section 5.  Paragraph (b) of subsection (2), paragraphs (a)
396	and (c) of subsection (5), paragraphs (b), (c), (d), (f), and
397	(g) of subsection (6) of section 720.303, Florida Statutes, are
398	amended, and subsection (12) is added to that section, to read:
399	720.303  Association powers and duties; meetings of board;
400	official records; budgets; financial reporting; association
401	funds; recalls.--
402	(2)  BOARD MEETINGS.--
403	(b)  Members have the right to attend all meetings of the
404	board and to speak on any matter placed on the agenda by
405	petition of the voting interests for at least 3 minutes. The
406	association may adopt written reasonable rules expanding the
407	right of members to speak and governing the frequency, duration,
408	and other manner of member statements, which rules must be
409	consistent with this paragraph and may include a sign-up sheet
410	for members wishing to speak. Notwithstanding any other law, the
411	requirement that board meetings and committee meetings be open
412	to the members is inapplicable to meetings between the board or
413	a committee to discuss proposed or pending litigation with and
414	the association's attorney, or with respect to meetings of the
415	board held for the purpose of discussing personnel matters are
416	not required to be open to the members.
417	(5)  INSPECTION AND COPYING OF RECORDS.--The official
418	records shall be maintained within the state and must be open to
419	inspection and available for photocopying by members or their
420	authorized agents at reasonable times and places within 10
421	business days after receipt of a written request for access.
422	This subsection may be complied with by having a copy of the
423	official records available for inspection or copying in the
424	community. If the association has a photocopy machine available
425	where the records are maintained, it must provide parcel owners
426	with copies on request during the inspection if the entire
427	request is limited to no more than 25 pages.
428	(a)  The failure of an association to provide access to the
429	records within 10 business days after receipt of a written
430	request submitted by certified mail, return receipt requested,
431	creates a rebuttable presumption that the association willfully
432	failed to comply with this subsection.
433	(c)  The association may adopt reasonable written rules
434	governing the frequency, time, location, notice, records to be
435	inspected, and manner of inspections, but may not require impose
436	a requirement that a parcel owner to demonstrate any proper
437	purpose for the inspection, state any reason for the inspection,
438	or limit a parcel owner's right to inspect records to less than
439	one 8-hour business day per month. The association may impose
440	fees to cover the costs of providing copies of the official
441	records, including, without limitation, the costs of copying.
442	The association may charge up to 50 cents per page for copies
443	made on the association's photocopier. If the association does
444	not have a photocopy machine available where the records are
445	kept, or if the records requested to be copied exceed 25 pages
446	in length, the association may have copies made by an outside
447	vendor or association management company personnel and may
448	charge the actual cost of copying, including any reasonable
449	costs involving personnel fees and charges at an hourly rate for
450	employee time to cover administrative costs to the association.
451	The association shall maintain an adequate number of copies of
452	the recorded governing documents, to ensure their availability
453	to members and prospective members. Notwithstanding the
454	provisions of this paragraph, the following records are shall
455	not be accessible to members or parcel owners:
456	1.  Any record protected by the lawyer-client privilege as
457	described in s. 90.502 and any record protected by the work-
458	product privilege, including, but not limited to, any record
459	prepared by an association attorney or prepared at the
460	attorney's express direction which reflects a mental impression,
461	conclusion, litigation strategy, or legal theory of the attorney
462	or the association and which was prepared exclusively for civil
463	or criminal litigation or for adversarial administrative
464	proceedings or which was prepared in anticipation of imminent
465	civil or criminal litigation or imminent adversarial
466	administrative proceedings until the conclusion of the
467	litigation or adversarial administrative proceedings.
468	2.  Information obtained by an association in connection
469	with the approval of the lease, sale, or other transfer of a
470	parcel.
471	3.  Disciplinary, health, insurance, and personnel records
472	of the association's employees.
473	4.  Medical records of parcel owners or community
474	residents.
475	(6)  BUDGETS.--
476	(b)  In addition to annual operating expenses, the budget
477	may include reserve accounts for capital expenditures and
478	deferred maintenance for which the association is responsible.
479	If reserve accounts are not established pursuant to paragraph
480	(d), funding of such reserves shall be limited to the extent
481	that the governing documents do not limit increases in
482	assessments, including reserves. If the budget of the
483	association includes reserve accounts established pursuant to
484	paragraph (d), such reserves shall be determined, maintained,
485	and waived in the manner provided in this subsection. Once an
486	association provides for reserve accounts pursuant to paragraph
487	(d) in the budget, the association shall thereafter determine,
488	maintain, and waive reserves in compliance with this subsection.
489	The provisions of this section do not preclude the termination
490	of a reserve account established pursuant to this paragraph upon
491	approval of a majority of the voting interests of the
492	association. Upon such approval, the terminating reserve account
493	shall be removed from the budget.
494	(c)1.  If the budget of the association does not provide
495	for reserve accounts pursuant to paragraph (d) governed by this
496	subsection and the association is responsible for the repair and
497	maintenance of capital improvements that may result in a special
498	assessment if reserves are not provided, each financial report
499	for the preceding fiscal year required by subsection (7) shall
500	contain the following statement in conspicuous type: THE BUDGET
501	OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
502	CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN
503	SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE
504	ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
505	FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A
506	MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY
507	VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
508	2.  If the budget of the association does provide for
509	funding accounts for deferred expenditures, including, but not
510	limited to, funds for capital expenditures and deferred
511	maintenance, but such accounts are not created or established
512	pursuant to paragraph (d), each financial report for the
513	preceding fiscal year required under subsection (7) must also
514	contain the following statement in conspicuous type: THE BUDGET
515	OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED
516	EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
517	DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
518	OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
519	PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
520	FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
521	RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
522	ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
523	(d)  An association shall be deemed to have provided for
524	reserve accounts if when reserve accounts have been initially
525	established by the developer or if when the membership of the
526	association affirmatively elects to provide for reserves. If
527	reserve accounts are not initially provided for by the
528	developer, the membership of the association may elect to do so
529	upon the affirmative approval of not less than a majority of the
530	total voting interests of the association. Such approval may be
531	obtained attained by vote of the members at a duly called
532	meeting of the membership or by the upon a written consent of
533	executed by not less than a majority of the total voting
534	interests in the community. The approval action of the
535	membership shall state that reserve accounts shall be provided
536	for in the budget and shall designate the components for which
537	the reserve accounts are to be established. Upon approval by the
538	membership, the board of directors shall include provide for the
539	required reserve accounts for inclusion in the budget in the
540	next fiscal year following the approval and in each year
541	thereafter. Once established as provided in this subsection, the
542	reserve accounts shall be funded or maintained or shall have
543	their funding waived in the manner provided in paragraph (f).
544	(f)  After one or more Once a reserve account or reserve
545	accounts are established, the membership of the association,
546	upon a majority vote at a meeting at which a quorum is present,
547	may provide for no reserves or less reserves than required by
548	this section. If a meeting of the unit owners has been called to
549	determine whether to waive or reduce the funding of reserves and
550	no such result is achieved or a quorum is not present, the
551	reserves as included in the budget shall go into effect. After
552	the turnover, the developer may vote its voting interest to
553	waive or reduce the funding of reserves. Any vote taken pursuant
554	to this subsection to waive or reduce reserves is shall be
555	applicable only to one budget year.
556	(g)  Funding formulas for reserves authorized by this
557	section shall be based on either a separate analysis of each of
558	the required assets or a pooled analysis of two or more of the
559	required assets.
560	1.  If the association maintains separate reserve accounts
561	for each of the required assets, the amount of the contribution
562	to each reserve account is shall be the sum of the following two
563	calculations:
564	a.  The total amount necessary, if any, to bring a negative
565	component balance to zero.
566	b.  The total estimated deferred maintenance expense or
567	estimated replacement cost of the reserve component less the
568	estimated balance of the reserve component as of the beginning
569	of the period for which the budget will be in effect. The
570	remainder, if greater than zero, shall be divided by the
571	estimated remaining useful life of the component.
572
573	The formula may be adjusted each year for changes in estimates
574	and deferred maintenance performed during the year and may
575	include factors such as inflation and earnings on invested
576	funds.
577	2.  If the association maintains a pooled account of two or
578	more of the required reserve assets, the amount of the
579	contribution to the pooled reserve account as disclosed on the
580	proposed budget may shall not be less than that required to
581	ensure that the balance on hand at the beginning of the period
582	for which the budget will go into effect plus the projected
583	annual cash inflows over the remaining estimated useful life of
584	all of the assets that make up the reserve pool are equal to or
585	greater than the projected annual cash outflows over the
586	remaining estimated useful lives of all of the assets that make
587	up the reserve pool, based on the current reserve analysis. The
588	projected annual cash inflows may include estimated earnings
589	from investment of principal and accounts receivable minus the
590	allowance for doubtful accounts. The reserve funding formula may
591	shall not include any type of balloon payments.
592	(12)  COMPENSATION PROHIBITED.--A director, officer, or
593	committee member of the association may not receive directly or
594	indirectly any salary or compensation from the association for
595	the performance of duties as a director, officer, or committee
596	member and may not in any other way benefit financially from
597	service to the association. This subsection does not preclude:
598	(a)  Participation by such person in a financial benefit
599	accruing to all or a significant number of members as a result
600	of actions lawfully taken by the board or a committee of which
601	he or she is a member, including, but not limited to, routine
602	maintenance, repair, or replacement of community assets.
603	(b)  Reimbursement for out-of-pocket expenses incurred by
604	such person on behalf of the association, subject to approval in
605	accordance with procedures established by the association's
606	governing documents or, in the absence of such procedures, in
607	accordance with an approval process established by the board.
608	(c)  Any recovery of insurance proceeds derived from a
609	policy of insurance maintained by the association for the
610	benefit of its members.
611	(d)  Any fee or compensation authorized in the governing
612	documents.
613	(e)  Any fee or compensation authorized in advance by a
614	vote of a majority of the voting interests voting in person or
615	by proxy at a meeting of the members.
616	Section 6.  Subsection (2) of section 720.305, Florida
617	Statutes, are amended to read:
618	720.305  Obligations of members; remedies at law or in
619	equity; levy of fines and suspension of use rights; failure to
620	fill sufficient number of vacancies on board of directors to
621	constitute a quorum; appointment of receiver upon petition of
622	any member.--
623	(2)  If the governing documents so provide, an association
624	may suspend, for a reasonable period of time, the rights of a
625	member or a member's tenants, guests, or invitees, or both, to
626	use common areas and facilities and may levy reasonable fines of
627	up to, not to exceed $100 per violation, against any member or
628	any tenant, guest, or invitee. A fine may be levied on the basis
629	of each day of a continuing violation, with a single notice and
630	opportunity for hearing, except that no such fine may shall
631	exceed $1,000 in the aggregate unless otherwise provided in the
632	governing documents. A fine of less than $1,000 may shall not
633	become a lien against a parcel. In any action to recover a fine,
634	the prevailing party is entitled to collect its reasonable
635	attorney's fees and costs from the nonprevailing party as
636	determined by the court.
637	(a)  A fine or suspension may not be imposed without notice
638	of at least 14 days notice to the person sought to be fined or
639	suspended and an opportunity for a hearing before a committee of
640	at least three members appointed by the board who are not
641	officers, directors, or employees of the association, or the
642	spouse, parent, child, brother, or sister of an officer,
643	director, or employee. If the committee, by majority vote, does
644	not approve a proposed fine or suspension, it may not be
645	imposed.
646	(b)  The requirements of this subsection do not apply to
647	the imposition of suspensions or fines upon any member because
648	of the failure of the member to pay assessments or other charges
649	when due if such action is authorized by the governing
650	documents.
651	(c)  Suspension of common-area-use rights do shall not
652	impair the right of an owner or tenant of a parcel to have
653	vehicular and pedestrian ingress to and egress from the parcel,
654	including, but not limited to, the right to park.
655	Section 7.  Subsections (8) and (9) of section 720.306,
656	Florida Statutes, are amended to read:
657	720.306  Meetings of members; voting and election
658	procedures; amendments.--
659	(8)  PROXY VOTING.--The members have the right, unless
660	otherwise provided in this subsection or in the governing
661	documents, to vote in person or by proxy.
662	(a)  To be valid, a proxy must be dated, must state the
663	date, time, and place of the meeting for which it was given, and
664	must be signed by the authorized person who executed the proxy.
665	A proxy is effective only for the specific meeting for which it
666	was originally given, as the meeting may lawfully be adjourned
667	and reconvened from time to time, and automatically expires 90
668	days after the date of the meeting for which it was originally
669	given. A proxy is revocable at any time at the pleasure of the
670	person who executes it. If the proxy form expressly so provides,
671	any proxy holder may appoint, in writing, a substitute to act in
672	his or her place.
673	(b)  If the governing documents permit voting by secret
674	ballot by members who are not in attendance at a meeting of the
675	members for the election of directors, such ballots shall be
676	placed in an inner envelope with no identifying markings and
677	mailed or delivered to the association in an outer envelope
678	bearing identifying information reflecting the name of the
679	member, the lot or parcel for which the vote is being cast, and
680	the signature of the lot or parcel owner casting that ballot.
681	After the eligibility of the member to vote and confirmation
682	that no other ballot has been submitted for that lot or parcel,
683	the inner envelope shall be removed from the outer envelope
684	bearing the identification information, placed with the ballots
685	which were personally cast, and opened when the ballots are
686	counted. If more than one ballot is submitted for a lot or
687	parcel, the ballots for that lot or parcel shall be
688	disqualified. Any vote by ballot received after the closing of
689	the balloting may not be considered.
690	(9)  ELECTIONS; BOARD MEMBER CERTIFICATION.--
691	(a)  Elections of directors must be conducted in accordance
692	with the procedures set forth in the governing documents of the
693	association. All members of the association are shall be
694	eligible to serve on the board of directors, and a member may
695	nominate himself or herself as a candidate for the board at a
696	meeting where the election is to be held or, if the election
697	process allows voting by absentee ballot, in advance of the
698	balloting. Except as otherwise provided in the governing
699	documents, boards of directors must be elected by a plurality of
700	the votes cast by eligible voters. Any election dispute between
701	a member and an association must be submitted to mandatory
702	binding arbitration with the division. Such proceedings shall be
703	conducted in the manner provided by s. 718.1255 and the
704	procedural rules adopted by the division.
705	(b)  Within 30 days after being elected to the board of
706	directors, a new director shall certify in writing to the
707	secretary of the association that he or she has read the
708	association's declarations of covenants and restrictions,
709	articles of incorporation, bylaws, and current written policies
710	and that he or she will work to uphold each to the best of his
711	or her ability and will faithfully discharge his or her
712	fiduciary responsibility to the association's members. Failure
713	to timely file such statement shall automatically disqualify the
714	director from service on the association's board of directors.
715	The secretary shall cause the association to retain a director's
716	certification for inspection by the members for 5 years after a
717	director's election. Failure to have such certification on file
718	does not affect the validity of any appropriate action.
719	Section 8.  Paragraph (a) of subsection (1) of section
720	720.401, Florida Statutes, is amended to read:
721	720.401  Prospective purchasers subject to association
722	membership requirement; disclosure required; covenants;
723	assessments; contract cancellation.--
724	(1)(a)  A prospective parcel owner in a community must be
725	presented a disclosure summary before executing the contract for
726	sale. The disclosure summary must be in a form substantially
727	similar to the following form:
728
729	DISCLOSURE SUMMARY
730	FOR
731	(NAME OF COMMUNITY)
732
733	1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
734	BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
735	2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
736	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
737	COMMUNITY.
738	3.  YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
739	ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
740	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL
741	ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
742	ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
743	IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
744	4.  YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
745	RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
746	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
747	5.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
748	LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION MAY COULD RESULT
749	IN A LIEN ON YOUR PROPERTY.
750	6.  THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
751	FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
752	OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
753	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
754	7.  IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE
755	DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
756	RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
757	MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
758	8.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
759	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
760	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
761	DOCUMENTS BEFORE PURCHASING PROPERTY.
762	9.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
763	CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
764	PROPERTY IS LOCATED, OR, IF ARE NOT RECORDED, AND CAN BE
765	OBTAINED FROM THE DEVELOPER.
766	10.  THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES
767	OR FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR THE
768	PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT
769	INFRASTRUCTURE OR OTHER IMPROVEMENTS.
770	11.  YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS
771	OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE
772	UP TO THE TIME OF TRANSFER OF TITLE.
773
774	DATE:     PURCHASER:
775	PURCHASER:
776	The disclosure must be supplied by the developer, or by the
777	parcel owner if the sale is by an owner that is not the
778	developer. Any contract or agreement for sale shall refer to and
779	incorporate the disclosure summary and shall include, in
780	prominent language, a statement that the potential buyer should
781	not execute the contract or agreement until he or she has they
782	have received and read the disclosure summary required by this
783	section.
784	Section 9.  Effective July 1, 2009, Paragraph (d) of
785	subsection (1) of section 34.01, Florida Statutes, is amended to
786	read:
787	34.01  Jurisdiction of county court.--
788	(1)  County courts shall have original jurisdiction:
789	(d)  Of disputes occurring in the homeowners' associations
790	as described in part IV of chapter 720 s. 720.311(2)(a), which
791	shall be concurrent with jurisdiction of the circuit courts.
792	Section 10.  Effective July 1, 2009, Subsection (2) of
793	section 720.302, Florida Statutes, is amended to read:
794	720.302  Purposes, scope, and application.--
795	(2)  The Legislature recognizes that it is not in the best
796	interest of homeowners' associations or the individual
797	association members thereof to create or impose a bureau or
798	other agency of state government to regulate the affairs of
799	homeowners' associations. However, in accordance with part IV of
800	chapter 720 s. 720.311, the Legislature finds that homeowners'
801	associations and their individual members will benefit from an
802	expedited alternative process for resolution of election and
803	recall disputes and presuit mediation of other disputes
804	involving covenant enforcement in homeowner's associations and
805	deed restricted communities using the procedures provided in
806	part IV of and authorizes the department to hear, administer,
807	and determine these disputes as more fully set forth in this
808	chapter. Further, the Legislature recognizes that certain
809	contract rights have been created for the benefit of homeowners'
810	associations and members thereof as well as deed-restricted
811	communities before the effective date of this act and that part
812	IV of chapter 720 is ss. 720.301-720.407 are not intended to
813	impair such contract rights, including, but not limited to, the
814	rights of the developer to complete the community as initially
815	contemplated.
816	Section 11.  Effective July 1, 2009, Section 720.311,
817	Florida Statutes, is repealed.
818	Section 12.  Effective July 1, 2009, Part IV of chapter
819	720, Florida Statutes, to be entitled "Dispute Resolution"
820	consisting of sections 720.501, 720.502, 720.503, 720.504,
821	720.505, 720.506, 720.507, 720.508, 720.509, and 720.510, is
822	created to read:
823	720.501  Short title.--This part may be cited as the "Home
824	Court Advantage Dispute Resolution Act."
825	720.502  Legislative findings.--The Legislature finds that
826	alternative dispute resolution has made progress in reducing
827	court dockets and trials and in offering a more efficient, cost-
828	effective option to litigation.
829	720.503  Applicability of this part.--
830	(1)  Unless otherwise provided in this part, before a
831	dispute described herein between a homeowners' association and a
832	parcel owner or owners, or a dispute between parcel owners
833	within the same homeowners' association, may be filed in court
834	the dispute is subject to presuit mediation pursuant to s.
835	720.505 or presuit arbitration pursuant to s. 720.507, at the
836	option of the aggrieved party who initiates the first formal
837	action of alternative dispute resolution under this part. The
838	parties may mutually agree to participate in both presuit
839	mediation and presuit arbitration prior to suit being filed by
840	either party.
841	(2)  Unless otherwise provided in this part, the mediation
842	and arbitration provisions of this part are limited to disputes
843	between an association and a parcel owner or owners or between
844	parcel owners regarding the use of or changes to the parcel or
845	the common areas under the governing documents and other
846	disputes involving violations of the recorded declaration of
847	covenants or other governing documents, disputes arising
848	concerning enforcement of the governing documents or any
849	amendments thereto, and disputes involving access to the
850	official records of the association. A dispute concerning title
851	to any parcel or common area, interpretation or enforcement of
852	any warranty, the levy of a fee or assessment, the collection of
853	an assessment levied against a party, the eviction or other
854	removal of a tenant from a parcel, alleged breaches of fiduciary
855	duty by one or more directors, or any action to collect mortgage
856	indebtedness or to foreclosure a mortgage shall not be subject
857	to the provisions of this part.
858	(3)  All disputes arising after the effective date of this
859	part involving the election of the board of directors for an
860	association or the recall of any member of the board or officer
861	of the association shall not be eligible for presuit mediation
862	under s. 720.505, but shall be subject to the provisions
863	concerning presuit arbitration under s. 720.507.
864	(4)  In any dispute subject to presuit mediation or presuit
865	arbitration under this part for which emergency relief is
866	required, a motion for temporary injunctive relief may be filed
867	with the court without first complying with the presuit
868	mediation or presuit arbitration requirements of this part.
869	After any issues regarding emergency or temporary relief are
870	resolved, the court may refer the parties to a mediation program
871	administered by the courts or require mediation or arbitration
872	under this part.
873	(5)  The mailing of a statutory notice of presuit mediation
874	or presuit arbitration as provided in this part shall toll the
875	applicable statute of limitations during the pendency of the
876	mediation or arbitration and for a period of 30 days following
877	the conclusion of either proceeding. The 30-day period shall
878	start upon the filing of the mediator's notice of impasse or the
879	arbitrator's written arbitration award. If the parties mutually
880	agree to participate in both presuit mediation and presuit
881	arbitration under this part, the tolling of the applicable
882	statute of limitations for each such alternative dispute
883	resolution proceeding shall be consecutive.
884	720.504  Notice of dispute.--Prior to giving the statutory
885	notice to proceed under presuit medication or presuit
886	arbitration under this part, the aggrieved association or parcel
887	owner shall first provide written notice of the dispute to the
888	responding party in the manner provided by this section.
889	(1)  The notice of dispute shall be delivered to the
890	responding party by certified mail, return receipt requested, or
891	the notice of dispute may be hand delivered and the person
892	making delivery shall file with their notice of mediation either
893	the proof of receipt of mailing or an affidavit stating the date
894	and time of the delivery of the notice of dispute. If the notice
895	is delivered by certified mail, return receipt requested, and
896	the responding party fails or refuses to accept delivery, notice
897	shall be considered properly delivered for purposes of this
898	section on the date of the first attempted delivery.
899	(2)  The notice of dispute shall state with specificity the
900	nature of the dispute, including the date, time, and location of
901	each event that is the subject of the dispute and the action
902	requested to resolve the dispute. The notice shall also include
903	the text of any provision in the governing documents, including
904	the rules and regulations, of the association which form the
905	basis of the dispute.
906	(3)  Unless the parties otherwise agree in writing to a
907	longer time period, the party receiving the notice of dispute
908	shall have 10 days following the date of receipt of notice to
909	resolve the dispute. If the alleged dispute has not been
910	resolved within the 10-day period, the aggrieved party may
911	proceed under this part at any time thereafter within the
912	applicable statute of limitations.
913	(4)  A copy of the notice and the text of the provision in
914	the governing documents or the rules and regulations of the
915	association which are the basis of the dispute, along with proof
916	of service of the notice of dispute and a copy of any written
917	responses received from the responding party, shall be included
918	as an exhibit to any demand for mediation or arbitration under
919	this part.
920	720.505  Presuit mediation.--
921	(1)  Disputes between an association and a parcel owner or
922	owners and between parcel owners must be submitted to presuit
923	mediation before the dispute may be filed in court or, at the
924	election of the party initiating the presuit procedures, such
925	dispute may be submitted to presuit arbitration pursuant to s.
926	720.507 before the dispute may be filed in court. An aggrieved
927	party who elects to use the presuit mediation procedure under
928	this section shall serve on the responding party a written
929	notice of presuit mediation in substantially the following form:
930
931	STATUTORY NOTICE OF PRESUIT MEDIATION
932	THE ALLEGED AGGRIEVED PARTY, ____________________,
933	HEREBY DEMANDS THAT ____________________, AS THE
934	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
935	MEDIATION IN CONNECTION WITH A DISPUTE(S) WITH YOU,
936	WHICH BY STATUTE ARE OF A TYPE THAT ARE SUBJECT TO
937	PRESUIT MEDIATION:
938
939	ATTACHED IS A COPY OF THE PRIOR NOTICE OF VIOLATION
940	WHICH DETAILS THE SPECIFIC NATURE OF THE DISPUTE(S)TO
941	BE MEDIATED AND THE AUTHORITY SUPPORTING A FINDING OF
942	A VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
943	LIMITED TO, THE APPLICABLE PROVISIONS OF THE GOVERNING
944	DOCUMENTS OF THE ASSOCIATION BELIEVED TO APPLY TO THE
945	DISPUTE BETWEEN THE PARTIES, AND A COPY OF THE NOTICE
946	YOU RECEIVED OR REFUSED AND COPIES OF ANY WRITTEN
947	RESPONSE(S) RECEIVED FROM YOU ABOUT THIS DISPUTE.
948
949	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
950	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
951	MEDIATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
952	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
953	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
954	MEDIATION WITH A NEUTRAL THIRD-PARTY MEDIATOR IN ORDER
955	TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
956	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
957	PARTICIPATE IN THIS PROCESS. UNLESS YOU RESPOND TO
958	THIS NOTICE BY FILING WITH THE AGGRIEVED PARTY A
959	NOTICE OF OPTING OUT AND DEMAND FOR ARBITRATION UNDER
960	S. 720.506, FLORIDA STATUTES, YOUR FAILURE TO
961	PARTICIPATE IN THE MEDIATION PROCESS MAY RESULT IN A
962	LAWSUIT BEING FILED IN COURT AGAINST YOU WITHOUT
963	FURTHER NOTICE.
964
965	THE PROCESS OF MEDIATION INVOLVES A SUPERVISED
966	NEGOTIATION PROCESS IN WHICH A TRAINED, NEUTRAL THIRD-
967	PARTY MEDIATOR MEETS WITH BOTH PARTIES AND ASSISTS
968	THEM IN EXPLORING POSSIBLE OPPORTUNITIES FOR RESOLVING
969	PART OR ALL OF THE DISPUTE. BY AGREEING TO PARTICIPATE
970	IN PRESUIT MEDIATION, YOU ARE NOT BOUND IN ANY WAY TO
971	CHANGE YOUR POSITION. FURTHERMORE, THE MEDIATOR HAS NO
972	AUTHORITY TO MAKE ANY DECISIONS IN THIS MATTER OR TO
973	DETERMINE WHO IS RIGHT OR WRONG AND MERELY ACTS AS A
974	FACILITATOR TO ENSURE THAT EACH PARTY UNDERSTANDS THE
975	POSITION OF THE OTHER PARTY AND THAT ALL OPTIONS FOR
976	REASONABLE SETTLEMENT ARE FULLY EXPLORED.
977
978	IF AN AGREEMENT IS REACHED, IT SHALL BE REDUCED TO
979	WRITING AND BECOME A BINDING AND ENFORCEABLE CONTRACT
980	BETWEEN THE PARTIES. A RESOLUTION OF ONE OR MORE
981	DISPUTES IN THIS FASHION AVOIDS THE NEED TO LITIGATE
982	THESE ISSUES IN COURT. THE FAILURE TO REACH AN
983	AGREEMENT, OR THE FAILURE OF A PARTY TO PARTICIPATE IN
984	THE PROCESS, RESULTS IN THE MEDIATOR DECLARING AN
985	IMPASSE IN THE MEDIATION, AFTER WHICH THE AGGRIEVED
986	PARTY MAY PROCEED TO FILE A LAW SUIT ON ALL
987	OUTSTANDING, UNSETTLED DISPUTES. IF YOU HAVE FAILED OR
988	REFUSED TO PARTICIPATE IN THE ENTIRE MEDIATION
989	PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER
990	ATTORNEY'S FEES IF YOU PREVAIL IN A SUBSEQUENT COURT
991	PROCEEDING INVOLVING THE SAME DISPUTE.
992
993	THE AGGRIEVED PARTY HAS SELECTED FROM A LIST OF
994	ELIGIBLE QUALIFIED MEDIATORS AT LEAST FIVE CERTIFIED
995	MEDIATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
996	NEUTRAL AND QUALIFIED TO MEDIATE THE DISPUTE. YOU HAVE
997	THE RIGHT TO SELECT ANY ONE OF THESE MEDIATORS. THE
998	FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR MORE
999	OF THE LISTED MEDIATORS DOES NOT MEAN THAT THE
1000	MEDIATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
1001	FACILITATOR. THE NAMES OF THE MEDIATORS THAT THE
1002	AGGRIEVED PARTY HEREBY SUBMITS TO YOU FROM WHOM YOU
1003	MAY CHOOSE ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE
1004	NUMBERS, AND HOURLY RATES ARE AS FOLLOWS:
1005
1006	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
1007	HOURLY RATES OF THE MEDIATORS. OTHER PERTINENT
1008	INFORMATION ABOUT THE BACKGROUND OF THE MEDIATORS MAY
1009	BE INCLUDED AS AN ATTACHMENT.)
1010
1011	YOU MAY CONTACT THE OFFICES OF THESE MEDIATORS TO
1012	CONFIRM THAT EACH OF THE ABOVE LISTED MEDIATORS WILL
1013	BE NEUTRAL AND WILL NOT SHOW ANY FAVORITISM TOWARD
1014	EITHER PARTY. UNLESS OTHERWISE AGREED TO BY THE
1015	PARTIES, PART IV OF CHAPTER 720, FLORIDA STATUTES,
1016	REQUIRES THAT THE PARTIES SHARE THE COSTS OF PRESUIT
1017	MEDIATION EQUALLY, INCLUDING THE FEE CHARGED BY THE
1018	MEDIATOR. AN AVERAGE MEDIATION MAY REQUIRE 3 TO 4
1019	HOURS OF THE MEDIATOR'S TIME, INCLUDING SOME
1020	PREPARATION TIME, AND THE PARTIES WOULD NEED TO
1021	EQUALLY SHARE THE MEDIATOR'S FEES AS WELL AS BE
1022	RESPONSIBLE FOR ALL OF THEIR OWN ATTORNEY'S FEES IF
1023	THEY CHOOSE TO EMPLOY AN ATTORNEY IN CONNECTION WITH
1024	THE MEDIATION. HOWEVER, USE OF AN ATTORNEY IS NOT
1025	REQUIRED AND IS AT THE OPTION OF EACH PARTY. THE
1026	MEDIATORS MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR
1027	ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY
1028	HEREBY AGREES TO PAY OR PREPAY ONE-HALF OF THE
1029	SELECTED MEDIATOR'S ESTIMATED FEES AND TO FORWARD THIS
1030	AMOUNT OR SUCH OTHER REASONABLE ADVANCE DEPOSITS AS
1031	THE MEDIATOR REQUIRES FOR THIS PURPOSE UPON THE
1032	SELECTION OF THE MEDIATOR. ANY FUNDS DEPOSITED WILL BE
1033	RETURNED TO YOU IF THESE FUNDS ARE IN EXCESS OF YOUR
1034	SHARE OF THE MEDIATOR FEES INCURRED.
1035
1036	TO BEGIN YOUR PARTICIPATION IN PRESUIT MEDIATION TO
1037	TRY TO RESOLVE THE DISPUTE WITH YOU AND AVOID FURTHER
1038	LEGAL ACTION, PLEASE SIGN BELOW AND CLEARLY INDICATE
1039	WHICH MEDIATOR IS ACCEPTABLE TO YOU FROM THE FIVE
1040	MEDIATORS LISTED BY THE AGGRIEVED PARTY ABOVE.
1041
1042	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
1043	OF PRESUIT MEDIATION WITHIN 20 DAYS. IN YOUR RESPONSE
1044	YOU MUST PROVIDE A LISTING OF AT LEAST THREE DATES AND
1045	TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE
1046	MEDIATION THAT ARE WITHIN 90 DAYS AFTER THE POSTMARKED
1047	DATE OF THE MAILING OF THIS NOTICE OF PRESUIT
1048	MEDIATION OR WITHIN 90 DAYS AFTER THE DATE YOU WERE
1049	SERVED WITH A COPY OF THIS NOTICE. THE AGGRIEVED PARTY
1050	WILL THEN ASK THE MEDIATOR TO SCHEDULE A MUTUALLY
1051	CONVENIENT TIME AND PLACE FOR THE MEDIATION CONFERENCE
1052	TO BE HELD. IF YOU DO NOT PROVIDE A LIST OF AVAILABLE
1053	DATES AND TIMES, THE MEDIATOR IS AUTHORIZED TO
1054	SCHEDULE A MEDIATION CONFERENCE WITHOUT TAKING YOUR
1055	SCHEDULE AND CONVENIENCE INTO CONSIDERATION. IN NO
1056	EVENT SHALL THE MEDIATION CONFERENCE BE LATER THAN 90
1057	DAYS AFTER THE NOTICE OF PRESUIT MEDIATION WAS FIRST
1058	SERVED UNLESS ALL PARTIES MUTUALLY AGREE OTHERWISE. IN
1059	THE EVENT THAT YOU FAIL TO RESPOND WITHIN 20 DAYS
1060	AFTER THE DATE OF THIS NOTICE, FAIL TO PROVIDE THE
1061	MEDIATOR WITH DATES AND TIMES IN WHICH YOU ARE
1062	AVAILABLE FOR THE MEDIATION CONFERENCE, FAIL TO AGREE
1063	TO AT LEAST ONE OF THE MEDIATORS THAT THE AGGRIEVED
1064	PARTY HAS LISTED, FAIL TO PAY OR PREPAY TO THE
1065	MEDIATOR ONE-HALF OF THE COSTS INVOLVED, OR FAIL TO
1066	APPEAR AND PARTICIPATE AT THE SCHEDULED MEDIATION, THE
1067	AGGRIEVED PARTY WILL BE AUTHORIZED TO PROCEED WITH THE
1068	FILING OF A LAWSUIT AGAINST YOU WITHOUT FURTHER
1069	NOTICE. IN ANY SUBSEQUENT COURT ACTION, THE AGGRIEVED
1070	PARTY MAY SEEK AN AWARD OF REASONABLE ATTORNEY'S FEES
1071	AND COSTS INCURRED IN ATTEMPTING TO OBTAIN MEDIATION.
1072
1073	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
1074	LAW, YOUR RESPONSE MUST BE MAILED BY CERTIFIED, FIRST-
1075	CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE AGGRIEVED
1076	PARTY LISTED ABOVE AT THE ADDRESS SHOWN ON THIS NOTICE
1077	AND POSTMARKED NO MORE THAN 20 DAYS AFTER THE DATE OF
1078	THE POSTMARKED DATE FOR THIS NOTICE OR WITHIN 20 DAYS
1079	AFTER THE DATE UPON WHICH YOU WERE SERVED WITH A COPY
1080	OF THIS NOTICE.
1081
1082	________________________
1083	SIGNATURE OF AGGRIEVED PARTY
1084
1085	______________________
1086	PRINTED NAME OF AGGRIEVED PARTY
1087
1088	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
1089	ACCEPTANCE OF THE AGREEMENT TO MEDIATE.
1090
1091	AGREEMENT TO MEDIATE
1092
1093	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
1094	PRESUIT MEDIATION AND AGREES TO ATTEND A MEDIATION
1095	CONDUCTED BY THE FOLLOWING MEDIATOR(S) LISTED BELOW AS
1096	ACCEPTABLE TO MEDIATE THIS DISPUTE:
1097
1098	(LIST ONE ACCEPTABLE MEDIATOR FROM THOSE LISTED BY THE
1099	AGGRIEVED PARTY.)
1100
1101	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE CAN
1102	ATTEND AND PARTICIPATE IN THE PRESUIT MEDIATION AT THE
1103	FOLLOWING DATES AND TIMES:
1104
1105	(LIST AT LEAST THREE AVAILABLE DATES AND TIMES WITHIN
1106	THE 90-DAY TIME LIMIT DESCRIBED ABOVE.)
1107
1108	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
1109	MEDIATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
1110	AS THE MEDIATOR MAY REQUIRE FOR THIS PURPOSE.
1111
1112	______________________________
1113	SIGNATURE OF RESPONDING PARTY #1
1114	______________________________
1115	TELEPHONE CONTACT INFORMATION
1116	______________________________
1117	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
1118	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
1119	OWNED BY MORE THAN ONE PERSON, ALL PARCEL OWNERS OR
1120	UNIT OWNERS WHO ARE SUBJECT OF THE DISPUTE MUST SIGN
1121	OR HAVE A PERSON ACTING UNDER AUTHORITY OF A POWER OF
1122	ATTORNEY SIGN.
1123
1124	(2)(a)  Service of the notice of presuit mediation shall be
1125	effected either by personal service, as provided in chapter 48,
1126	or by certified mail, return receipt requested, in a letter in
1127	substantial conformity with the form provided in subsection (1),
1128	with an additional copy being sent by regular first-class mail,
1129	to the address of the responding party as it last appears on the
1130	books and records of the association or if not available, then
1131	as it last appears in the official records of the county
1132	property appraiser where the parcel in dispute is located. The
1133	responding party has either 20 days after the postmarked date of
1134	the mailing of the statutory notice or 20 days after the date
1135	the responding party is served with a copy of the notice to
1136	serve a written response to the aggrieved party. The response
1137	shall be served by certified mail, return receipt requested,
1138	with an additional copy being sent by regular first-class mail,
1139	to the address shown on the statutory notice. The date of the
1140	postmark on the envelope for the response shall constitute the
1141	date that the response is served. Once the parties have agreed
1142	on a mediator, the mediator may schedule or reschedule the
1143	mediation for a date and time mutually convenient to the parties
1144	within 90 days after the date of service of the statutory
1145	notice. After such 90-day period, the mediator may reschedule
1146	the mediation only upon the mutual written agreement of all the
1147	parties.
1148	(b)  The parties shall share the costs of presuit mediation
1149	equally, including the fee charged by the mediator, if any,
1150	unless the parties agree otherwise, and the mediator may require
1151	advance payment of his or her reasonable fees and costs. Each
1152	party shall be responsible for their own attorney's fees if a
1153	party chooses to be represented by an attorney at the mediation.
1154	(c)  The party responding to the aggrieved party may either
1155	provide a notice of opting out under s. 720.506, and demand
1156	arbitration, or the responding party shall sign the agreement to
1157	mediate included in the notice of presuit mediation and clearly
1158	indicate the name of the mediator who is acceptable from the
1159	five names provided by the aggrieved party, and the responding
1160	party must provide in their response a list of dates and times
1161	in which the responding party is available to participate in the
1162	mediation within 90 days after the date the responding party was
1163	served, either by process server or by certified mail, with the
1164	statutory notice of presuit mediation.
1165	(d)  The mediator who has been selected and agreed to
1166	mediate must schedule the mediation conference at a mutually
1167	convenient time and place within that 90-day period, but if the
1168	responding party does not provide a list of available dates and
1169	times, the mediator is authorized to schedule a mediation
1170	conference without taking the responding party's schedule and
1171	convenience into consideration. Within 10 days after the
1172	designation of the mediator, the mediator shall coordinate with
1173	the parties and notify the parties in writing of the date, time,
1174	and place of the mediation conference.
1175	(e)  The mediation conference must be held on the scheduled
1176	date and may be rescheduled if a rescheduled date is approved by
1177	the mediator. However, in no event shall the mediation be held
1178	later than 90 days after the notice of presuit mediation was
1179	first served, unless all parties mutually agree in writing
1180	otherwise. If the presuit mediation is not completed within the
1181	required time limits, the mediator shall declare an impasse
1182	unless the mediation date is extended by mutual written
1183	agreement by all parties and approved by the mediator.
1184	(f)  If the responding party fails to respond within 30
1185	days after the date of service of the statutory notice of
1186	presuit mediation, fails to agree to at least one of the
1187	mediators listed by the aggrieved party in the notice, fails to
1188	pay or prepay to the mediator one-half of the costs of the
1189	mediator, or fails to appear and participate at the scheduled
1190	mediation, the aggrieved party shall be authorized to proceed
1191	with the filing of a lawsuit without further notice.
1192	(g)1.  The failure of any party to respond to the statutory
1193	notice of presuit mediation within 20 days, the failure to agree
1194	upon a mediator, the failure to provide a listing of dates and
1195	times in which the responding party is available to participate
1196	in the mediation within 90 days after the date the responding
1197	party was served with the statutory notice of presuit mediation,
1198	the failure to make payment of fees and costs within the time
1199	established by the mediator, or the failure to appear for a
1200	scheduled mediation session without the approval of the
1201	mediator, shall in each instance constitute a failure or refusal
1202	to participate in the mediation process and shall operate as an
1203	impasse in the presuit mediation by such party, entitling the
1204	other party to file a lawsuit in court and to seek an award of
1205	the costs and attorney's fees associated with the mediation.
1206	2.  Persons who fail or refuse to participate in the entire
1207	mediation process may not recover attorney's fees and costs in
1208	subsequent litigation relating to the same dispute between the
1209	same parties. If any presuit mediation session cannot be
1210	scheduled and conducted within 90 days after the offer to
1211	participate in mediation was filed, through no fault of either
1212	party, then an impasse shall be deemed to have occurred unless
1213	the parties mutually agree in writing to extend this deadline.
1214	In the event of such impasse, each party will be responsible for
1215	its own costs and attorney's fees and one-half of any mediator
1216	fees and filing fees, and either party may file a lawsuit in
1217	court regarding the dispute.
1218	720.506  Opt-out of presuit mediation.--A party served with
1219	a notice of presuit mediation under s. 720.505, may opt out of
1220	presuit mediation and demand that the dispute proceed under
1221	nonbinding arbitration in the following manner provided in this
1222	section:
1223	(1)  In lieu of a response to the notice of presuit
1224	mediation as required under s. 720.505, the responding party may
1225	serve upon the aggrieved party in the same manner as the
1226	response to a notice for presuit mediation under s. 720.505, a
1227	notice of opting out of mediation and demand that the dispute
1228	instead proceed to presuit arbitration under s. 720.507.
1229	(2)  The aggrieved party shall be relieved from having to
1230	satisfy the requirements of s. 720.504 as a condition precedent
1231	to filing the demand for presuit arbitration.
1232	(3)  Except as otherwise provided in this part, the choice
1233	of which presuit alternative dispute resolution procedure is
1234	used shall be at the election of the aggrieved party who first
1235	initiated such proceeding after complying with the provisions of
1236	s. 720.504.
1237	720.507  Presuit arbitration.--
1238	(1)  Disputes between an association and a parcel owner or
1239	owners and disputes between parcel owners are subject to a
1240	demand for presuit arbitration pursuant to s. 720.507, before
1241	the dispute may be filed in court. A party who elects to use the
1242	presuit arbitration procedure under this part shall serve on the
1243	responding party a written notice of presuit arbitration in
1244	substantially the following form:
1245
1246	STATUTORY NOTICE OF PRESUIT ARBITRATION
1247
1248	THE ALLEGED AGGRIEVED PARTY, ____________________,
1249	HEREBY DEMANDS THAT ____________________, AS THE
1250	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
1251	ARBITRATION IN CONNECTION WITH THE FOLLOWING
1252	DISPUTE(S) WITH YOU, WHICH BY STATUTE ARE OF A TYPE
1253	THAT ARE SUBJECT TO PRESUIT ARBITRATION:
1254
1255	(LIST SPECIFIC NATURE OF THE DISPUTE OR DISPUTES TO BE
1256	ARBITRATED AND THE AUTHORITY SUPPORTING A FINDING OF A
1257	VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
1258	LIMITED TO, ALL APPLICABLE PROVISIONS OF THE GOVERNING
1259	DOCUMENTS BELIEVED TO APPLY TO THE DISPUTE BETWEEN THE
1260	PARTIES.)
1261
1262	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
1263	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
1264	ARBITRATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
1265	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
1266	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
1267	ARBITRATION WITH A NEUTRAL THIRD-PARTY ARBITRATOR IN
1268	ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
1269	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
1270	PARTICIPATE IN THIS PROCESS. IF YOU FAIL TO
1271	PARTICIPATE IN THE ARBITRATION PROCESS, A LAWSUIT MAY
1272	BE BROUGHT AGAINST YOU IN COURT WITHOUT FURTHER
1273	WARNING.
1274
1275	THE PROCESS OF ARBITRATION INVOLVES A NEUTRAL THIRD
1276	PERSON WHO CONSIDERS THE LAW AND FACTS PRESENTED BY
1277	THE PARTIES AND RENDERS A WRITTEN DECISION CALLED AN
1278	"ARBITRATION AWARD." PURSUANT TO S. 720.507, FLORIDA
1279	STATUTES, THE ARBITRATION AWARD SHALL BE FINAL UNLESS
1280	A LAWSUIT IS FILED IN A COURT OF COMPETENT
1281	JURISDICTION FOR THE JUDICIAL CIRCUIT IN WHICH THE
1282	PARCEL(S) GOVERNED BY THE HOMEOWNERS' ASSOCIATION
1283	IS/ARE LOCATED WITHIN 30 DAYS AFTER THE DATE THAT THE
1284	ARBITRATION AWARD.
1285
1286	IF A SETTLEMENT AGREEMENT IS REACHED BEFORE THE
1287	ARBITRATION AWARD, IT SHALL BE REDUCED TO WRITING AND
1288	BECOME A BINDING AND ENFORCEABLE CONTRACT OF THE
1289	PARTIES. A RESOLUTION OF ONE OR MORE DISPUTES IN THIS
1290	FASHION AVOIDS THE NEED TO ARBITRATE THESE ISSUES OR
1291	TO LITIGATE THESE ISSUES IN COURT AND SHALL BE THE
1292	SAME AS A SETTLEMENT AGREEMENT REACHED BETWEEN THE
1293	PARTIES UNDER S. 720.505, FLORIDA STATUTES. THE
1294	FAILURE OF A PARTY TO PARTICIPATE IN THE ARBITRATION
1295	PROCESS MAY RESULT IN THE ARBITRATOR ISSUING AN
1296	ARBITRATION AWARD BY DEFAULT IN THE ARBITRATION. IF
1297	YOU HAVE FAILED OR REFUSED TO PARTICIPATE IN THE
1298	ENTIRE ARBITRATION PROCESS, YOU WILL NOT BE ENTITLED
1299	TO RECOVER ATTORNEY'S FEES, EVEN IF YOU PREVAIL IN A
1300	SUBSEQUENT COURT PROCEEDING INVOLVING THE SAME DISPUTE
1301	BETWEEN THE SAME PARTIES.
1302
1303	THE AGGRIEVED PARTY HAS SELECTED AT LEAST FIVE
1304	ARBITRATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
1305	NEUTRAL AND QUALIFIED TO ARBITRATE THE DISPUTE. YOU
1306	HAVE THE RIGHT TO SELECT ANY ONE OF THE ARBITRATORS.
1307	THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR
1308	MORE OF THE LISTED ARBITRATORS DOES NOT MEAN THAT THE
1309	ARBITRATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
1310	ARBITRATOR. ANY ARBITRATOR WHO CANNOT ACT IN THIS
1311	CAPACITY IS REQUIRED ETHICALLY TO DECLINE TO ACCEPT
1312	ENGAGEMENT. THE NAMES OF THE FIVE ARBITRATORS THAT THE
1313	AGGRIEVED PARTY HAS CHOSEN FROM WHICH YOU MAY SELECT
1314	ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE NUMBERS,
1315	AND HOURLY RATES, ARE AS FOLLOWS:
1316
1317	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
1318	HOURLY RATES OF AT LEAST FIVE ARBITRATORS.
1319
1320	YOU MAY CONTACT THE OFFICES OF THESE ARBITRATORS TO
1321	CONFIRM THAT THE LISTED ARBITRATORS WILL BE NEUTRAL
1322	AND WILL NOT SHOW ANY FAVORITISM TOWARD EITHER PARTY.
1323
1324	UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART IV OF
1325	CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE
1326	PARTIES SHARE THE COSTS OF PRESUIT ARBITRATION
1327	EQUALLY, INCLUDING THE FEE CHARGED BY THE ARBITRATOR.
1328	THE PARTIES SHALL BE RESPONSIBLE FOR THEIR OWN
1329	ATTORNEY'S FEES IF THEY CHOOSE TO EMPLOY AN ATTORNEY
1330	IN CONNECTION WITH THE ARBITRATION. HOWEVER, USE OF AN
1331	ATTORNEY TO REPRESENT YOU FOR THE ARBITRATION IS NOT
1332	REQUIRED. THE ARBITRATOR SELECTED MAY REQUIRE THE
1333	ADVANCE PAYMENT OF SOME OR ALL OF THE ANTICIPATED
1334	FEES. THE AGGRIEVED PARTY HEREBY AGREES TO PAY OR
1335	PREPAY ONE-HALF OF THE SELECTED ARBITRATOR'S ESTIMATED
1336	FEES AND TO FORWARD THIS AMOUNT OR SUCH OTHER
1337	REASONABLE ADVANCE DEPOSITS AS THE ARBITRATOR WHO IS
1338	SELECTED REQUIRES FOR THIS PURPOSE. ANY FUNDS
1339	DEPOSITED WILL BE RETURNED TO YOU IF THESE FUNDS ARE
1340	IN EXCESS OF YOUR SHARE OF THE FEES INCURRED.
1341
1342	PLEASE SIGN THE AGREEMENT TO ARBITRATE BELOW AND
1343	CLEARLY INDICATE THE NAME OF THE ARBITRATOR WHO IS
1344	ACCEPTABLE TO YOU FROM THE NAMES LISTED BY THE
1345	AGGRIEVED PARTY.
1346
1347	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
1348	WITHIN 20 DAYS AFTER THE DATE THAT THE NOTICE OF
1349	PRESUIT ARBITRATION WAS EITHER PERSONALLY SERVED ON
1350	YOU OR 20 DAYS AFTER THE POSTMARKED DATE THAT THIS
1351	NOTICE OF PRESUIT ARBITRATION WAS SENT TO YOU BY
1352	CERTIFIED MAIL. YOU MUST ALSO PROVIDE A LIST OF AT
1353	LEAST THREE DATES AND TIMES IN WHICH YOU ARE AVAILABLE
1354	TO PARTICIPATE IN THE ARBITRATION THAT ARE WITHIN 90
1355	DAYS AFTER EITHER THE DATE YOU WERE PERSONALLY SERVED
1356	OR 90 DAYS AFTER THE POSTMARKED DATE OF THE CERTIFIED
1357	MAILING OF THIS STATUTORY NOTICE OF PRESUIT
1358	ARBITRATION. A COPY OF THIS NOTICE AND YOUR RESPONSE
1359	WILL BE PROVIDED BY THE AGGRIEVED PARTY TO THE
1360	ARBITRATOR SELECTED AND THE ARBITRATOR WILL SCHEDULE A
1361	MUTUALLY CONVENIENT TIME AND PLACE FOR THE ARBITRATION
1362	CONFERENCE TO BE HELD. IF YOU DO NOT PROVIDE A LIST OF
1363	AVAILABLE DATES AND TIMES, THE ARBITRATOR IS
1364	AUTHORIZED TO SCHEDULE AN ARBITRATION CONFERENCE
1365	WITHOUT TAKING YOUR SCHEDULE AND CONVENIENCE INTO
1366	CONSIDERATION. THE ARBITRATION CONFERENCE MUST BE HELD
1367	ON THE SCHEDULED DATE, OR ANY RESCHEUDLED DATE
1368	APPROVED BY THE ARBITRATOR. IN NO EVENT SHALL THE
1369	ARBITRATION CONFERENCE BE LATER THAN 90 DAYS AFTER
1370	NOTICE OF THE PRESUIT ARBITRATION WAS FIRST SERVED,
1371	UNLESS ALL PARTIES MUTUALLY AGREE IN WRITING
1372	OTHERWISE. IF THE ARBITRATION IS NOT COMPLETED WITHIN
1373	THE REQUIRED TIME LIMITS, THE ARBITRATOR SHALL ISSUE
1374	AN ARBITRATION AWARD, UNLESS THE HEARING IS EXTENDED
1375	BY MUTUAL WRITTEN AGREEMENT OF THE PARTIES AND
1376	APPROVED BY THE ARBITRATOR. IN THE EVENT THAT YOU FAIL
1377	TO RESPOND WITHIN 20 DAYS AFTER THE DATE YOU WERE
1378	SERVED WITH A COPY OF THIS NOTICE, FAIL TO PROVIDE THE
1379	ARBITRATOR WITH DATES AND TIMES IN WHICH YOU ARE
1380	AVAILABLE FOR THE ARBITRATION CONFERENCE, FAIL TO
1381	AGREE EITHER TO ONE OF THE ARBITRATORS THAT THE
1382	AGGRIEVED PARTY HAS NAMED, FAIL TO PAY OR PREPAY TO
1383	THE ARBITRATOR ONE-HALF OF THE COSTS INVOLVED AS
1384	REQUIRED, OR FAIL TO APPEAR AND PARTICIPATE AT THE
1385	SCHEDULED ARBITRATION CONFERENCE, THE AGGRIEVED PARTY
1386	MAY REQUEST THE ARBITRATOR TO ISSUE AN ARBITRATION
1387	AWARD. IN THE SUBSEQUENT COURT ACTION, THE AGGRIEVED
1388	PARTY SHALL BE ENTITLED TO RECOVER AN AWARD OF
1389	REASONABLE ATTORNEY'S FEES AND COSTS, INCLUDING ANY
1390	FEES PAID TO THE ARBITRATOR, INCURRED IN OBTAINING AN
1391	ARBITRATION AWARD PURSUANT TO S. 720.507, FLORIDA
1392	STATUTES.
1393
1394	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
1395	LAW, YOUR RESPONSE MUST BE POSTMARKED AND MAILED BY
1396	CERTIFIED, FIRST-CLASS MAIL, RETURN RECEIPT REQUESTED,
1397	TO THE ADDRESS SHOWN ON THIS NOTICE OF PRESUIT
1398	ARBITRATION.
1399
1400	_________________________
1401	Signature of aggrieved party
1402
1403	______________________
1404	PRINTED NAME OF AGGRIEVED PARTY
1405
1406	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
1407	ACCEPTANCE OF THE AGREEMENT TO ARTITRATE.
1408
1409	AGREEMENT TO ARBITRATE
1410
1411	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
1412	PRESUIT ARBITRATION AND AGREES TO ATTEND AN
1413	ARBITRATION CONDUCTED BY THE FOLLOWING ARBITRATOR
1414	LISTED BELOW AS SOMEONE WHO WOULD BE ACCEPTABLE TO
1415	ARBITRATE THIS DISPUTE:
1416
1417	(IN YOUR RESPONSE EITHER SELECT THE NAME OF ONE
1418	ARBITRATOR THAT IS ACCEPTABLE TO YOU FROM THOSE
1419	ARBITRATORS LISTED BY THE AGGRIEVED PARTY.)
1420
1421	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE IS
1422	AVAILABLE AND ABLE TO ATTEND AND PARTICIPATE IN THE
1423	PRESUIT ARBITRATION CONFERENCE AT THE FOLLOWING DATES
1424	AND TIMES:
1425
1426	(LIST ALL AVAILABLE DATES AND TIMES, OF WHICH THERE
1427	MUST BE AT LEAST THREE, WITHIN 90 DAYS AFTER THE DATE
1428	ON WHICH YOU WERE SERVED, EITHER BY PROCESS SERVER OR
1429	BY CERTIFIED MAIL, WITH THE NOTICE OF PRESUIT
1430	ARBITRATION.)
1431
1432	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
1433	ARBITRATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
1434	AS THE ARBITRATOR MAY REQUIRE FOR THIS PURPOSE.
1435
1436	______________________________
1437	SIGNATURE OF RESPONDING PARTY #1
1438	______________________________
1439	TELEPHONE CONTACT INFORMATION
1440	______________________________
1441	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
1442	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
1443	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
1444	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
1445	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
1446
1447	(2)(a)  Service of the statutory notice of presuit
1448	arbitration shall be effected either by personal service, as
1449	provided in chapter 48, or by certified mail, return receipt
1450	requested, in a letter in substantial conformity with the form
1451	provided in subsection (1), with an additional copy being sent
1452	by regular first-class mail, to the address of the responding
1453	party as it last appears on the books and records of the
1454	association, or if not available, the last address as it appears
1455	on the official records of the county property appraiser for the
1456	county in which the property is situated that is subject to the
1457	association documents. The responding party has 20 days after
1458	the postmarked date of the certified mailing of the statutory
1459	notice of presuit arbitration or 20 days after the date the
1460	responding party is personally served with the statutory notice
1461	of presuit arbitration by to serve a written response to the
1462	aggrieved party. The response shall be served by certified mail,
1463	return receipt requested, with an additional copy being sent by
1464	regular first-class mail, to the address shown on the statutory
1465	notice of presuit arbitration. The postmarked date on the
1466	envelope of the response shall constitute the date the response
1467	was served.
1468	(b)  The parties shall share the costs of presuit
1469	arbitration equally, including the fee charged by the
1470	arbitrator, if any, unless the parties agree otherwise, and the
1471	arbitrator may require advance payment of his or her reasonable
1472	fees and costs. Each party shall be responsible for all of their
1473	own attorney's fees if a party chooses to be represented by an
1474	attorney for the arbitration proceedings.
1475	(c)1.  The party responding to the aggrieved party must
1476	sign the agreement to arbitrate included in the notice of
1477	presuit arbitration and clearly indicate the name of the
1478	arbitrator who is acceptable of those arbitrators listed by the
1479	aggrieved party. The responding party must provide a list of at
1480	least three dates and times in which the responding party is
1481	available to participate in the arbitration conference within 90
1482	days after the date the responding party was served with the
1483	statutory notice of presuit arbitration.
1484	2.  The arbitrator must schedule the arbitration conference
1485	at a mutually convenient time and place, but if the responding
1486	party does not provide a list of available dates and times, the
1487	arbitrator is authorized to schedule an arbitration conference
1488	without taking the responding party's schedule and convenience
1489	into consideration. Within 10 days after the designation of the
1490	arbitrator, the arbitrator shall notify the parties in writing
1491	of the date, time, and place of the arbitration conference.
1492	3.  The arbitration conference must be held on the
1493	scheduled date and may be rescheduled if approved by the
1494	arbitrator. However, in no event shall the arbitration hearing
1495	be later than 90 days after the notice of presuit arbitration
1496	was first served, unless all parties mutually agree in writing
1497	otherwise. If the arbitration hearing is not completed within
1498	the required time limits, the arbitrator may issue an
1499	arbitration award unless the time for the hearing is extended as
1500	provided herein. If the responding party fails to respond within
1501	20 days after the date of statutory notice of presuit
1502	arbitration, fails to agree to at least one of the arbitrators
1503	that have been listed by the aggrieved party in the presuit
1504	notice of arbitration, fails to pay or prepay to the arbitrator
1505	one-half of the costs involved, or fails to appear and
1506	participate at the scheduled arbitration, the aggrieved party is
1507	authorized to proceed with a request that the arbitrator issue
1508	an arbitration award.
1509	(d)1.  The failure of any party to respond to the statutory
1510	notice of presuit arbitration within 20 days, the failure to
1511	either select one of the five arbitrators listed by the
1512	aggrieved party, the failure to provide a listing of dates and
1513	times in which the responding party is available to participate
1514	in the arbitration conference within 90 days after the date of
1515	the responding party being served with the statutory notice of
1516	presuit arbitration, the failure to make payment of fees and
1517	costs as required within the time established by the arbitrator,
1518	or the failure to appear for an arbitration conference without
1519	the approval of the arbitrator, shall entitle the other party to
1520	request the arbitrator to enter an arbitration award including
1521	an award of the reasonable costs and attorney's fees associated
1522	with the arbitration.
1523	2.  Persons who fail or refuse to participate in the entire
1524	arbitration process may not recover attorney's fees and costs in
1525	any subsequent litigation proceeding relating to the same
1526	dispute involving the same parties.
1527	(3)(a)  In an arbitration proceeding, the arbitrator may
1528	not consider any unsuccessful mediation of the dispute.
1529	(b)  An arbitrator in a proceeding initiated pursuant to
1530	the provisions of this part may shorten the time for discovery
1531	or otherwise limit discovery in a manner consistent with the
1532	policy goals of this part to reduce the time and expense of
1533	litigating homeowners' association disputes initiated pursuant
1534	to this chapter and promoting an expeditious alternative dispute
1535	resolution procedure for parties to such actions.
1536	(4)  At the request of any party to the arbitration, the
1537	arbitrator may issue subpoenas for the attendance of witnesses
1538	and the production of books, records, documents, and other
1539	evidence, and any party on whose behalf a subpoena is issued may
1540	apply to the court for orders compelling such attendance and
1541	production. Subpoenas shall be served and are enforceable in the
1542	manner provided by the Florida Rules of Civil Procedure.
1543	Discovery may, at the discretion of the arbitrator, be permitted
1544	in the manner provided by the Florida Rules of Civil Procedure.
1545	(5)  The final arbitration award shall be sent to the
1546	parties in writing no later than 30 days after the date of the
1547	arbitration hearing, absent extraordinary circumstances
1548	necessitating a later filing the reasons for which shall be
1549	stated in the final award if filed more than 30 days after the
1550	date of the final session of the arbitration conference. An
1551	agreed arbitration award is final in those disputes in which the
1552	parties have mutually agreed to be bound. An arbitration award
1553	decided by the arbitrator is final unless a lawsuit seeking a
1554	trial de novo is filed in a court of competent jurisdiction
1555	within 30 days after the date of the arbitration award. The
1556	right to file for a trial de novo entitles the parties to file a
1557	complaint in the appropriate trial court for a judicial
1558	resolution of the dispute. The prevailing party in an
1559	arbitration proceeding shall be awarded the costs of the
1560	arbitration and reasonable attorney's fees in an amount
1561	determined by the arbitrator.
1562	(6)  The party filing a motion for a trial de novo shall be
1563	assessed the other party's arbitration costs, court costs, and
1564	other reasonable costs, including attorney's fees, investigation
1565	expenses, and expenses for expert or other testimony or evidence
1566	incurred after the arbitration hearing if the judgment upon the
1567	trial de novo is not more favorable than the final arbitration
1568	award.
1569	720.508  Rules of procedure.--
1570	(1)  Presuit mediation and presuit arbitration proceedings
1571	under this part must be conducted in accordance with the
1572	applicable Florida Rules of Civil Procedure and rules governing
1573	mediations and arbitrations under chapter 44, except this part
1574	shall be controlling to the extent of any conflict with other
1575	applicable rules or statutes. The arbitrator can shorten any
1576	applicable time period and otherwise limit the scope of
1577	discovery on request of the parties or within the discretion of
1578	the arbitrator exercised consistent with the purpose and
1579	objective of reducing the expense and expeditiously concluding
1580	proceedings under this part.
1581	(2)  Presuit mediation proceedings under s. 720.505 are
1582	privileged and confidential to the same extent as court-ordered
1583	mediation under chapter 44. An arbitrator or judge may not
1584	consider any information or evidence arising from the presuit
1585	mediation proceeding except in a proceeding to impose sanctions
1586	for failure to attend a presuit mediation session or to enforce
1587	a mediated settlement agreement.
1588	(3)  Persons who are not parties to the dispute may not
1589	attend the presuit mediation conference without consent of all
1590	parties, with the exception of counsel for the parties and a
1591	corporate representative designated by the association. Presuit
1592	mediations under this part are not a board meeting for purposes
1593	of notice and participation set forth in this chapter.
1594	(4)  Attendance at a mediation conference by the board of
1595	directors shall not require notice or participation by nonboard
1596	members as otherwise required by this chapter for meetings of
1597	the board.
1598	(5)  Settlement agreements resulting from a mediation or
1599	arbitration proceeding do not have precedential value in
1600	proceedings involving parties other than those participating in
1601	the mediation or arbitration.
1602	(6)  Arbitration awards by an arbitrator shall have
1603	precedential value in other proceedings involving the same
1604	association or with respect to the same parcel owner.
1605	720.509  Mediators and arbitrators; qualifications and
1606	registration.--A person is authorized to conduct mediation or
1607	arbitration under this part if he or she has been certified as a
1608	circuit court civil mediator pursuant to the requirements
1609	adopted pursuant to s. 44.106, is a member in good standing with
1610	The Florida Bar, and otherwise meets all other requirements
1611	imposed by chapter 44.
1612	720.510  Enforcement of mediation agreement or arbitration
1613	award.--
1614	(1)  A mediation settlement may be enforced through the
1615	county or circuit court, as applicable, and any costs and
1616	attorney's fees incurred in the enforcement of a settlement
1617	agreement reached at mediation shall be awarded to the
1618	prevailing party in any enforcement action.
1619	(2)  Any party to an arbitration proceeding may enforce an
1620	arbitration award by filing a petition in a court of competent
1621	jurisdiction in which the homeowners' association is located.
1622	The prevailing party in such proceeding shall be awarded
1623	reasonable attorney's fees and costs incurred in such
1624	proceeding.
1625	(3)  If a complaint is filed seeking a trial de novo, the
1626	arbitration award shall be stayed and a petition to enforce the
1627	award may not be granted. Such award, however, shall be
1628	admissible in the court proceeding seeking a trial de novo.
1629	Section 13.  (1)  Notwithstanding any other provisions of
1630	law, any three or more condominium associations may form a
1631	self-insurance fund for the purposes of pooling and spreading
1632	the liabilities of its participant associations arising from the
1633	deductible provisions of the commercial lines residential
1634	property insurance policies of the participants applicable to
1635	hurricane losses, if:
1636	(a)  Such fund is a not-for-profit corporation pursuant to
1637	chapter 617, Florida Statutes.
1638	(b)  The fund is implemented through contracts among the
1639	participating associations, or through contracts between the
1640	participating associations and another legal entity established
1641	for and limited to establishing and implementing the program.
1642	(c)  The liability of the fund for claims is limited to
1643	funds available for the payment of claims.
1644	(d)  The contract provided to a participating
1645	association clearly discloses the obligations of the
1646	participants in the fund and the obligations of the fund,
1647	including the limited liability of the fund as defined in
1648	paragraph (c). The contract must specify a reasonable date
1649	for the payment of claims which provides the fund with
1650	adequate time to verify and account for all claims for a
1651	given year so that claims payments can be properly
1652	calculated after consideration of the funds available. Before
1653	execution of the contract, the association or its
1654	representative must be provided a separate disclosure form
1655	specifying the limited liability of the fund and all
1656	administrative fees and estimated expenses, and provide
1657	examples of the manner in which available funds will be
1658	allocated among claimants if claims exceed the funds
1659	available for the payment thereof. Such disclosure must be
1660	signed by a representative of the participating association
1661	before or at the time of execution of the contract.
1662	(e)  The contributions charged for participating in the
1663	fund are established by the fund and calculated as a percentage
1664	of the participant's hurricane deductible dollar amount. The
1665	fund may determine the method and timing of payment of
1666	contributions.
1667	(f)  All members of the governing board of the fund must
1668	be participating associations in the fund and the governing
1669	body shall have all powers necessary to establish and
1670	administer the fund as authorized by the participants in the
1671	fund. All decisions of the fund shall be based upon a vote of
1672	the majority of the board. The board may contract with
1673	individual professionals to administer the fund.
1674	(g)  The fund uses and contracts with knowledgeable
1675	persons or business entities to administer and service the fund,
1676	including marketing, policy, contract administration, claims
1677	administration, accounting services, and legal services.
1678	(h)  The fund uses a properly licensed general lines
1679	insurance agent who is a Florida resident for solicitation
1680	of participation in the fund and does not prevent,
1681	impede, or restrict any applicant or participant in
1682	the fund from maintaining or selecting an agent of
1683	choice. The fund may not favor one or more agents over
1684	another agent. The organizational documents, the contract
1685	and notices of disclosure must be filed with the Office of
1686	Insurance Regulation not less than 45 days prior to
1687	solicitation by the fund.
1688	(i)  The fund is audited by an independent auditor no less
1689	frequently than every 2 years.
1690	(2)  The fund may accumulate funds or periodically
1691	distribute excess funds to its participants on a pro rata
1692	basis, reflecting loss experience of individual participants
1693	and proportionate contributions paid by participants.
1694	(3)  Participants in the fund must have a deductible
1695	no greater than as provided in s. 627.701(8), Florida
1696	Statutes. Self-insurance funds or pools established
1697	pursuant to this section are not subject to licensure
1698	requirements or regulation pursuant to the Florida
1699	Insurance Code except for part IX of chapter 626,
1700	Florida Statutes, which may be enforced by the
1701	Office of Insurance Regulation or the Department
1702	of Financial Services, as applicable, and are not
1703	subject to any fees, taxes, or assessments related to
1704	the writing or transaction of insurance in this state.
1705	Section 14.  Except as otherwise expressly provided in this
1706	act, this act shall take effect July 1, 2008.

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