1 | A bill to be entitled |
2 | An act relating to condominiums; amending s. 718.111, |
3 | F.S.; removing provision providing for windstorm insurance |
4 | for condominium associations; requiring official records |
5 | of the association to be maintained for at least 5 years |
6 | and to be made available at certain locations; providing |
7 | civil and criminal sanctions, including personally against |
8 | any officer, director, or manager who knowingly or |
9 | intentionally defaces, destroys, or fails to create or |
10 | maintain accounting records; prohibiting accessibility to |
11 | certain personal identifying information of unit owners by |
12 | fellow unit owners; restricting a condominium association |
13 | from waiving a financial report for more than 2 years; |
14 | amending s. 718.112, F.S.; prohibiting votes allocated to |
15 | units owned by the association from being cast by proxy, |
16 | ballot or otherwise, for any purpose; requiring the board |
17 | to address certain agenda items proposed by a petition of |
18 | a specified percent of the unit owners; providing |
19 | requirements for the location of annual unit owner |
20 | meetings; revising notice procedures; providing for the |
21 | securing of ballots; revising procedures relating to the |
22 | filling of a vacancy on the board; authorizing persons |
23 | acting under a specific power of attorney to vote on |
24 | behalf of a unit owner; removing a provision allowing an |
25 | association to provide for different voting and election |
26 | procedures in its bylaws; requiring the association to |
27 | prepare an annual budget of estimated revenues and |
28 | expenses; requiring certain ballot statements to contain |
29 | certain statements; requiring a vote to provide for no |
30 | reserves or a percentage of reserves to be made at annual |
31 | meetings; authorizing the association to use reserve funds |
32 | for nonscheduled purposes under certain conditions; |
33 | amending s. 718.113, F.S.; requiring the board to have the |
34 | condominium buildings periodically inspected for |
35 | structural and electrical soundness by a professional |
36 | engineer or professional architect registered in the |
37 | state; requiring the inspector to provide a report to the |
38 | association and unit owners; prohibiting the board from |
39 | adopting rules or regulations impairing certain rights or |
40 | prohibiting reasonable accommodation for religious |
41 | practices; creating s. 718.1224, F.S.; prohibiting certain |
42 | lawsuits arising from unit owners' appearances and |
43 | presentations before a governmental entity; providing a |
44 | definition; providing for award of damages and attorney |
45 | fees; prohibiting associations from expending association |
46 | funds in prosecuting such a suit against a unit owner; |
47 | providing an effective date. |
48 |
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49 | Be It Enacted by the Legislature of the State of Florida: |
50 |
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51 | Section 1. Paragraph (a) of subsection (11), paragraphs |
52 | (a), (b), and (c) of subsection (12), and subsection (13) of |
53 | section 718.111, Florida Statutes, are amended to read: |
54 | 718.111 The association.-- |
55 | (11) INSURANCE.--In order to protect the safety, health, |
56 | and welfare of the people of the State of Florida and to ensure |
57 | consistency in the provision of insurance coverage to |
58 | condominiums and their unit owners, paragraphs (a), (b), and (c) |
59 | are deemed to apply to every residential condominium in the |
60 | state, regardless of the date of its declaration of condominium. |
61 | It is the intent of the Legislature to encourage lower or stable |
62 | insurance premiums for associations described in this section. |
63 | Therefore, the Legislature requires a report to be prepared by |
64 | the Office of Insurance Regulation of the Department of |
65 | Financial Services for publication 18 months from the effective |
66 | date of this act, evaluating premium increases or decreases for |
67 | associations, unit owner premium increases or decreases, |
68 | recommended changes to better define common areas, or any other |
69 | information the Office of Insurance Regulation deems |
70 | appropriate. |
71 | (a)1. A unit-owner controlled association operating a |
72 | residential condominium shall use its best efforts to obtain and |
73 | maintain adequate insurance to protect the association, the |
74 | association property, the common elements, and the condominium |
75 | property required to be insured by the association pursuant to |
76 | paragraph (b). If the association is developer controlled, the |
77 | association shall exercise due diligence to obtain and maintain |
78 | such insurance. Failure to obtain and maintain adequate |
79 | insurance during any period of developer control shall |
80 | constitute a breach of fiduciary responsibility by the |
81 | developer-appointed members of the board of directors of the |
82 | association, unless said members can show that despite such |
83 | failure, they have exercised due diligence. The declaration of |
84 | condominium as originally recorded, or amended pursuant to |
85 | procedures provided therein, may require that condominium |
86 | property consisting of freestanding buildings where there is no |
87 | more than one building in or on such unit need not be insured by |
88 | the association if the declaration requires the unit owner to |
89 | obtain adequate insurance for the condominium property. An |
90 | association may also obtain and maintain liability insurance for |
91 | directors and officers, insurance for the benefit of association |
92 | employees, and flood insurance for common elements, association |
93 | property, and units. Adequate insurance, regardless of any |
94 | requirement in the declaration of condominium for coverage by |
95 | the association for "full insurable value," "replacement cost," |
96 | or the like, may include reasonable deductibles as determined by |
97 | the board based upon available funds or predetermined assessment |
98 | authority at the time that the insurance is obtained. |
99 | 1. Windstorm insurance coverage for a group of no fewer |
100 | than three communities created and operating under this chapter, |
101 | chapter 719, chapter 720, or chapter 721 may be obtained and |
102 | maintained for the communities if the insurance coverage is |
103 | sufficient to cover an amount equal to the probable maximum loss |
104 | for the communities for a 250-year windstorm event. Such |
105 | probable maximum loss must be determined through the use of a |
106 | competent model that has been accepted by the Florida Commission |
107 | on Hurricane Loss Projection Methodology. Such insurance |
108 | coverage is deemed adequate windstorm insurance for the purposes |
109 | of this section. |
110 | 2. An association or group of associations may self-insure |
111 | against claims against the association, the association |
112 | property, and the condominium property required to be insured by |
113 | an association, upon compliance with the applicable provisions |
114 | of ss. 624.460-624.488, which shall be considered adequate |
115 | insurance for the purposes of this section. A copy of each |
116 | policy of insurance in effect shall be made available for |
117 | inspection by unit owners at reasonable times. |
118 | (12) OFFICIAL RECORDS.-- |
119 | (a) From the inception of the association, the association |
120 | shall maintain each of the following items, when applicable, |
121 | which shall constitute the official records of the association: |
122 | 1. A copy of the plans, permits, warranties, and other |
123 | items provided by the developer pursuant to s. 718.301(4). |
124 | 2. A photocopy of the recorded declaration of condominium |
125 | of each condominium operated by the association and of each |
126 | amendment to each declaration. |
127 | 3. A photocopy of the recorded bylaws of the association |
128 | and of each amendment to the bylaws. |
129 | 4. A certified copy of the articles of incorporation of |
130 | the association, or other documents creating the association, |
131 | and of each amendment thereto. |
132 | 5. A copy of the current rules of the association. |
133 | 6. A book or books which contain the minutes of all |
134 | meetings of the association, of the board of administration |
135 | directors, and of unit owners, which minutes shall be retained |
136 | for a period of not less than 7 years. |
137 | 7. A current roster of all unit owners and their mailing |
138 | addresses, unit identifications, voting certifications, and, if |
139 | known, telephone numbers. The association shall also maintain |
140 | the electronic mailing addresses and the numbers designated by |
141 | unit owners for receiving notice sent by electronic transmission |
142 | of those unit owners consenting to receive notice by electronic |
143 | transmission. The electronic mailing addresses and numbers |
144 | provided by unit owners to receive notice by electronic |
145 | transmission shall be removed from association records when |
146 | consent to receive notice by electronic transmission is revoked. |
147 | However, the association is not liable for an erroneous |
148 | disclosure of the electronic mail address or the number for |
149 | receiving electronic transmission of notices. |
150 | 8. All current insurance policies of the association and |
151 | condominiums operated by the association. |
152 | 9. A current copy of any management agreement, lease, or |
153 | other contract to which the association is a party or under |
154 | which the association or the unit owners have an obligation or |
155 | responsibility. |
156 | 10. Bills of sale or transfer for all property owned by |
157 | the association. |
158 | 11. Accounting records for the association and separate |
159 | accounting records for each condominium which the association |
160 | operates. All accounting records shall be maintained for a |
161 | period of not less than 7 years. Any officer, director, or |
162 | manager who knowingly or intentionally defaces, destroys, or |
163 | fails to create or maintain accounting records is personally |
164 | subject to a civil penalty pursuant to s. 718.501(1)(d) and |
165 | appropriate criminal sanctions. The accounting records shall |
166 | include, but are not limited to: |
167 | a. Accurate, itemized, and detailed records of all |
168 | receipts and expenditures. |
169 | b. A current account and a monthly, bimonthly, or |
170 | quarterly statement of the account for each unit designating the |
171 | name of the unit owner, the due date and amount of each |
172 | assessment, the amount paid upon the account, and the balance |
173 | due. |
174 | c. All audits, reviews, accounting statements, and |
175 | financial reports of the association or condominium. |
176 | d. All contracts for work to be performed. Bids for work |
177 | to be performed shall also be considered official records and |
178 | shall be maintained for a period of 1 year. |
179 | 12. Ballots, sign-in sheets, voting proxies, and all other |
180 | papers relating to voting by unit owners, which shall be |
181 | maintained for a period of 1 year from the date of the election, |
182 | vote, or meeting to which the document relates. |
183 | 13. All rental records, when the association is acting as |
184 | agent for the rental of condominium units. |
185 | 14. A copy of the current question and answer sheet as |
186 | described by s. 718.504. |
187 | 15. All other records of the association not specifically |
188 | included in the foregoing which are related to the operation of |
189 | the association. |
190 | (b) The official records of the association shall be |
191 | maintained within the state for at least 5 years. The records of |
192 | the association shall be made available to a unit owner, at a |
193 | location within the county in which the condominium property is |
194 | located, within 5 working days after receipt of written request |
195 | by the board or its designee. This paragraph may be complied |
196 | with by having a copy of the official records of the association |
197 | available for inspection or copying on the condominium property |
198 | or association property. |
199 | (c) The official records of the association are open to |
200 | inspection by any association member or the authorized |
201 | representative of such member at all reasonable times. The right |
202 | to inspect the records includes the right to make or obtain |
203 | copies, at the reasonable expense, if any, of the association |
204 | member. The association may adopt reasonable rules regarding the |
205 | frequency, time, location, notice, and manner of record |
206 | inspections and copying. The failure of an association to |
207 | provide the records within 10 working days after receipt of a |
208 | written request shall create a rebuttable presumption that the |
209 | association willfully failed to comply with this paragraph. A |
210 | unit owner who is denied access to official records is entitled |
211 | to the actual damages or minimum damages for the association's |
212 | willful failure to comply with this paragraph. The minimum |
213 | damages shall be $50 per calendar day up to 10 days, the |
214 | calculation to begin on the 11th working day after receipt of |
215 | the written request. The failure to permit inspection of the |
216 | association records as provided herein entitles any person |
217 | prevailing in an enforcement action to recover reasonable |
218 | attorney's fees from the person in control of the records who, |
219 | directly or indirectly, knowingly denied access to the records |
220 | for inspection. Any officer, director, or manager who knowingly |
221 | or intentionally defaces, destroys, or fails to create or |
222 | maintain accounting records is personally subject to a civil |
223 | penalty pursuant to s. 718.501(1)(d) and appropriate criminal |
224 | sanctions. The association shall maintain an adequate number of |
225 | copies of the declaration, articles of incorporation, bylaws, |
226 | and rules, and all amendments to each of the foregoing, as well |
227 | as the question and answer sheet provided for in s. 718.504 and |
228 | year-end financial information required in this section on the |
229 | condominium property to ensure their availability to unit owners |
230 | and prospective purchasers, and may charge its actual costs for |
231 | preparing and furnishing these documents to those requesting the |
232 | same. Notwithstanding the provisions of this paragraph, the |
233 | following records shall not be accessible to unit owners: |
234 | 1. Any record protected by the lawyer-client privilege as |
235 | described in s. 90.502; and any record protected by the work- |
236 | product privilege, including any record prepared by an |
237 | association attorney or prepared at the attorney's express |
238 | direction; which reflects a mental impression, conclusion, |
239 | litigation strategy, or legal theory of the attorney or the |
240 | association, and which was prepared exclusively for civil or |
241 | criminal litigation or for adversarial administrative |
242 | proceedings, or which was prepared in anticipation of imminent |
243 | civil or criminal litigation or imminent adversarial |
244 | administrative proceedings until the conclusion of the |
245 | litigation or adversarial administrative proceedings. |
246 | 2. Information obtained by an association in connection |
247 | with the approval of the lease, sale, or other transfer of a |
248 | unit. |
249 | 3. Medical records of unit owners. |
250 | 4. Social security numbers, driver's license numbers, |
251 | credit card numbers, and other personal identifying information |
252 | of unit owners, occupants, or tenants. |
253 | (13) FINANCIAL REPORTING.--Within 90 days after the end of |
254 | the fiscal year, or annually on a date provided in the bylaws, |
255 | the association shall prepare and complete, or contract for the |
256 | preparation and completion of, a financial report for the |
257 | preceding fiscal year. Within 21 days after the final financial |
258 | report is completed by the association or received from the |
259 | third party, but not later than 120 days after the end of the |
260 | fiscal year or other date as provided in the bylaws, the |
261 | association shall mail to each unit owner at the address last |
262 | furnished to the association by the unit owner, or hand deliver |
263 | to each unit owner, a copy of the financial report or a notice |
264 | that a copy of the financial report will be mailed or hand |
265 | delivered to the unit owner, without charge, upon receipt of a |
266 | written request from the unit owner. The division shall adopt |
267 | rules setting forth uniform accounting principles and standards |
268 | to be used by all associations and shall adopt rules addressing |
269 | financial reporting requirements for multicondominium |
270 | associations. In adopting such rules, the division shall |
271 | consider the number of members and annual revenues of an |
272 | association. Financial reports shall be prepared as follows: |
273 | (a) An association that meets the criteria of this |
274 | paragraph shall prepare or cause to be prepared a complete set |
275 | of financial statements in accordance with generally accepted |
276 | accounting principles. The financial statements shall be based |
277 | upon the association's total annual revenues, as follows: |
278 | 1. An association with total annual revenues of $100,000 |
279 | or more, but less than $200,000, shall prepare compiled |
280 | financial statements. |
281 | 2. An association with total annual revenues of at least |
282 | $200,000, but less than $400,000, shall prepare reviewed |
283 | financial statements. |
284 | 3. An association with total annual revenues of $400,000 |
285 | or more shall prepare audited financial statements. |
286 | (b)1. An association with total annual revenues of less |
287 | than $100,000 shall prepare a report of cash receipts and |
288 | expenditures. |
289 | 2. An association which operates less than 50 units, |
290 | regardless of the association's annual revenues, shall prepare a |
291 | report of cash receipts and expenditures in lieu of financial |
292 | statements required by paragraph (a). |
293 | 3. A report of cash receipts and disbursements must |
294 | disclose the amount of receipts by accounts and receipt |
295 | classifications and the amount of expenses by accounts and |
296 | expense classifications, including, but not limited to, the |
297 | following, as applicable: costs for security, professional and |
298 | management fees and expenses, taxes, costs for recreation |
299 | facilities, expenses for refuse collection and utility services, |
300 | expenses for lawn care, costs for building maintenance and |
301 | repair, insurance costs, administration and salary expenses, and |
302 | reserves accumulated and expended for capital expenditures, |
303 | deferred maintenance, and any other category for which the |
304 | association maintains reserves. |
305 | (c) An association may prepare or cause to be prepared, |
306 | without a meeting of or approval by the unit owners: |
307 | 1. Compiled, reviewed, or audited financial statements, if |
308 | the association is required to prepare a report of cash receipts |
309 | and expenditures; |
310 | 2. Reviewed or audited financial statements, if the |
311 | association is required to prepare compiled financial |
312 | statements; or |
313 | 3. Audited financial statements if the association is |
314 | required to prepare reviewed financial statements. |
315 | (d) If approved by a majority of the voting interests |
316 | present at a properly called meeting of the association, an |
317 | association may prepare or cause to be prepared: |
318 | 1. A report of cash receipts and expenditures in lieu of a |
319 | compiled, reviewed, or audited financial statement; |
320 | 2. A report of cash receipts and expenditures or a |
321 | compiled financial statement in lieu of a reviewed or audited |
322 | financial statement; or |
323 | 3. A report of cash receipts and expenditures, a compiled |
324 | financial statement, or a reviewed financial statement in lieu |
325 | of an audited financial statement. |
326 |
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327 | Such meeting and approval must occur prior to the end of the |
328 | fiscal year and is effective only for the fiscal year in which |
329 | the vote is taken. With respect to an association to which the |
330 | developer has not turned over control of the association, all |
331 | unit owners, including the developer, may vote on issues related |
332 | to the preparation of financial reports for the first 2 fiscal |
333 | years of the association's operation, beginning with the fiscal |
334 | year in which the declaration is recorded. Thereafter, all unit |
335 | owners except the developer may vote on such issues until |
336 | control is turned over to the association by the developer. An |
337 | association or board of administration may not waive the |
338 | financial reporting requirements of this section for more than 2 |
339 | consecutive years. |
340 | Section 2. Subsection (2) of section 718.112, Florida |
341 | Statutes, is amended to read: |
342 | 718.112 Bylaws.-- |
343 | (2) REQUIRED PROVISIONS.--The bylaws of the association |
344 | shall provide for the following and, if they do not do so, shall |
345 | be deemed to include the following: |
346 | (a) Administration.-- |
347 | 1. The form of administration of the association shall be |
348 | described indicating the title of the officers and board of |
349 | administration and specifying the powers, duties, manner of |
350 | selection and removal, and compensation, if any, of officers and |
351 | boards. In the absence of such a provision, the board of |
352 | administration shall be composed of five members, except in the |
353 | case of a condominium which has five or fewer units, in which |
354 | case in a not-for-profit corporation the board shall consist of |
355 | not fewer than three members. In the absence of provisions to |
356 | the contrary in the bylaws, the board of administration shall |
357 | have a president, a secretary, and a treasurer, who shall |
358 | perform the duties of such officers customarily performed by |
359 | officers of corporations. Unless prohibited in the bylaws, the |
360 | board of administration may appoint other officers and grant |
361 | them the duties it deems appropriate. Unless otherwise provided |
362 | in the bylaws, the officers shall serve without compensation and |
363 | at the pleasure of the board of administration. Unless otherwise |
364 | provided in the bylaws, the members of the board shall serve |
365 | without compensation. |
366 | 2. When a unit owner files a written inquiry by certified |
367 | mail with the board of administration, the board shall respond |
368 | in writing to the unit owner within 30 days of receipt of the |
369 | inquiry. The board's response shall either give a substantive |
370 | response to the inquirer, notify the inquirer that a legal |
371 | opinion has been requested, or notify the inquirer that advice |
372 | has been requested from the division. If the board requests |
373 | advice from the division, the board shall, within 10 days of its |
374 | receipt of the advice, provide in writing a substantive response |
375 | to the inquirer. If a legal opinion is requested, the board |
376 | shall, within 60 days after the receipt of the inquiry, provide |
377 | in writing a substantive response to the inquiry. The failure to |
378 | provide a substantive response to the inquiry as provided herein |
379 | precludes the board from recovering attorney's fees and costs in |
380 | any subsequent litigation, administrative proceeding, or |
381 | arbitration arising out of the inquiry. The association may |
382 | through its board of administration adopt reasonable rules and |
383 | regulations regarding the frequency and manner of responding to |
384 | unit owner inquiries, one of which may be that the association |
385 | is only obligated to respond to one written inquiry per unit in |
386 | any given 30-day period. In such a case, any additional inquiry |
387 | or inquiries must be responded to in the subsequent 30-day |
388 | period, or periods, as applicable. |
389 | (b) Quorum; voting requirements; proxies.-- |
390 | 1. Unless a lower number is provided in the bylaws, the |
391 | percentage of voting interests required to constitute a quorum |
392 | at a meeting of the members shall be a majority of the voting |
393 | interests. Unless otherwise provided in this chapter or in the |
394 | declaration, articles of incorporation, or bylaws, and except as |
395 | provided in subparagraph (d)3., decisions shall be made by |
396 | owners of a majority of the voting interests represented at a |
397 | meeting at which a quorum is present. |
398 | 2. Except as specifically otherwise provided herein, after |
399 | January 1, 1992, unit owners may not vote by general proxy, but |
400 | may vote by limited proxies substantially conforming to a |
401 | limited proxy form adopted by the division. Votes allocated to |
402 | units owned by the association may not be cast by proxy, ballot, |
403 | or otherwise for any purpose. Limited proxies and general |
404 | proxies may be used to establish a quorum. Limited proxies shall |
405 | be used for votes taken to waive or reduce reserves in |
406 | accordance with subparagraph (f)2.; for votes taken to waive the |
407 | financial reporting requirements of s. 718.111(13); for votes |
408 | taken to amend the declaration pursuant to s. 718.110; for votes |
409 | taken to amend the articles of incorporation or bylaws pursuant |
410 | to this section; and for any other matter for which this chapter |
411 | requires or permits a vote of the unit owners. Except as |
412 | provided in paragraph (d), after January 1, 1992, no proxy, |
413 | limited or general, shall be used in the election of board |
414 | members. General proxies may be used for other matters for which |
415 | limited proxies are not required, and may also be used in voting |
416 | for nonsubstantive changes to items for which a limited proxy is |
417 | required and given. Notwithstanding the provisions of this |
418 | subparagraph, unit owners may vote in person at unit owner |
419 | meetings. Nothing contained herein shall limit the use of |
420 | general proxies or require the use of limited proxies for any |
421 | agenda item or election at any meeting of a timeshare |
422 | condominium association. |
423 | 3. Any proxy given shall be effective only for the |
424 | specific meeting for which originally given and any lawfully |
425 | adjourned meetings thereof. In no event shall any proxy be valid |
426 | for a period longer than 90 days after the date of the first |
427 | meeting for which it was given. Every proxy is revocable at any |
428 | time at the pleasure of the unit owner executing it. |
429 | 4. A member of the board of administration or a committee |
430 | may submit in writing his or her agreement or disagreement with |
431 | any action taken at a meeting that the member did not attend. |
432 | This agreement or disagreement may not be used as a vote for or |
433 | against the action taken and may not be used for the purposes of |
434 | creating a quorum. |
435 | 5. When any of the board or committee members meet by |
436 | telephone conference, those board or committee members attending |
437 | by telephone conference may be counted toward obtaining a quorum |
438 | and may vote by telephone. A telephone speaker must be used so |
439 | that the conversation of those board or committee members |
440 | attending by telephone may be heard by the board or committee |
441 | members attending in person as well as by any unit owners |
442 | present at a meeting. |
443 | (c) Board of administration meetings.--Meetings of the |
444 | board of administration at which a quorum of the members is |
445 | present shall be open to all unit owners. Any unit owner may |
446 | tape record or videotape meetings of the board of |
447 | administration. The right to attend such meetings includes the |
448 | right to speak at such meetings with reference to all designated |
449 | agenda items. The division shall adopt reasonable rules |
450 | governing the tape recording and videotaping of the meeting. The |
451 | association may adopt written reasonable rules governing the |
452 | frequency, duration, and manner of unit owner statements. |
453 | Adequate notice of all meetings, which notice shall specifically |
454 | incorporate an identification of agenda items, shall be posted |
455 | conspicuously on the condominium property at least 48 continuous |
456 | hours preceding the meeting except in an emergency. Any item not |
457 | included on the notice may be taken up on an emergency basis by |
458 | at least a majority plus one of the members of the board or by a |
459 | petition of 20 percent of the unit owners. Such emergency action |
460 | shall be noticed and ratified at the next regular meeting of the |
461 | board. However, written notice of any meeting at which |
462 | nonemergency special assessments, or at which amendment to rules |
463 | regarding unit use, will be considered shall be mailed, |
464 | delivered, or electronically transmitted to the unit owners and |
465 | posted conspicuously on the condominium property not less than |
466 | 14 days prior to the meeting. Evidence of compliance with this |
467 | 14-day notice shall be made by an affidavit executed by the |
468 | person providing the notice and filed among the official records |
469 | of the association. Upon notice to the unit owners, the board |
470 | shall by duly adopted rule designate a specific location on the |
471 | condominium property or association property upon which all |
472 | notices of board meetings shall be posted. If there is no |
473 | condominium property or association property upon which notices |
474 | can be posted, notices of board meetings shall be mailed, |
475 | delivered, or electronically transmitted at least 14 days before |
476 | the meeting to the owner of each unit. In lieu of or in addition |
477 | to the physical posting of notice of any meeting of the board of |
478 | administration on the condominium property, the association may, |
479 | by reasonable rule, adopt a procedure for conspicuously posting |
480 | and repeatedly broadcasting the notice and the agenda on a |
481 | closed-circuit cable television system serving the condominium |
482 | association. However, if broadcast notice is used in lieu of a |
483 | notice posted physically on the condominium property, the notice |
484 | and agenda must be broadcast at least four times every broadcast |
485 | hour of each day that a posted notice is otherwise required |
486 | under this section. When broadcast notice is provided, the |
487 | notice and agenda must be broadcast in a manner and for a |
488 | sufficient continuous length of time so as to allow an average |
489 | reader to observe the notice and read and comprehend the entire |
490 | content of the notice and the agenda. Notice of any meeting in |
491 | which regular or special assessments against unit owners are to |
492 | be considered for any reason shall specifically state contain a |
493 | statement that assessments will be considered and the nature, |
494 | cost, and breakdown of any such assessments. Meetings of a |
495 | committee to take final action on behalf of the board or make |
496 | recommendations to the board regarding the association budget |
497 | are subject to the provisions of this paragraph. Meetings of a |
498 | committee that does not take final action on behalf of the board |
499 | or make recommendations to the board regarding the association |
500 | budget are subject to the provisions of this section, unless |
501 | those meetings are exempted from this section by the bylaws of |
502 | the association. Notwithstanding any other law, the requirement |
503 | that board meetings and committee meetings be open to the unit |
504 | owners is inapplicable to meetings between the board or a |
505 | committee and the association's attorney, with respect to |
506 | proposed or pending litigation, when the meeting is held for the |
507 | purpose of seeking or rendering legal advice. |
508 | (d) Unit owner meetings.-- |
509 | 1. There shall be an annual meeting of the unit owners |
510 | held at the location provided in the association bylaws; and, if |
511 | the bylaws are silent as to the location, the meeting shall be |
512 | held in the state within 30 miles of the condominium property. |
513 | Unless the bylaws provide otherwise, a vacancy on the board |
514 | caused by the expiration of a director's term shall be filled by |
515 | electing a new board member, and the election shall be by secret |
516 | ballot; however, if the number of vacancies equals or exceeds |
517 | the number of candidates, no election is required. If there is |
518 | no provision in the bylaws for terms of the members of the |
519 | board, the terms of all members of the board shall expire upon |
520 | the election of their successors at the annual meeting. Any unit |
521 | owner desiring to be a candidate for board membership shall |
522 | comply with subparagraph 3. A person is not eligible for board |
523 | membership if that person who has been convicted of any felony |
524 | by any court of record in the United States and who has not had |
525 | his or her right to vote restored pursuant to law in the |
526 | jurisdiction of his or her residence is not eligible for board |
527 | membership. The validity of an action by the board is not |
528 | affected if it is later determined that a member of the board is |
529 | ineligible for board membership due to having been convicted of |
530 | a felony. |
531 | 2. The bylaws shall provide the method of calling meetings |
532 | of unit owners, including annual meetings. Written notice, which |
533 | notice must include an agenda, shall be mailed, hand delivered, |
534 | or electronically transmitted to each unit owner at least 14 |
535 | days prior to the annual meeting and shall be posted in a |
536 | conspicuous place on the condominium property at least 14 |
537 | continuous days preceding the annual meeting. Upon notice to the |
538 | unit owners, the board shall by duly adopted rule designate a |
539 | specific location on the condominium property or association |
540 | property upon which all notices of unit owner meetings shall be |
541 | posted; however, if there is no condominium property or |
542 | association property upon which notices can be posted, this |
543 | requirement does not apply. In lieu of or in addition to the |
544 | physical posting of notice of any meeting of the unit owners on |
545 | the condominium property, the association may, by reasonable |
546 | rule, adopt a procedure for conspicuously posting and repeatedly |
547 | broadcasting the notice and the agenda on a closed-circuit cable |
548 | television system serving the condominium association. However, |
549 | if broadcast notice is used in lieu of a notice posted |
550 | physically on the condominium property, the notice and agenda |
551 | must be broadcast at least four times every broadcast hour of |
552 | each day that a posted notice is otherwise required under this |
553 | section. When broadcast notice is provided, the notice and |
554 | agenda must be broadcast in a manner and for a sufficient |
555 | continuous length of time so as to allow an average reader to |
556 | observe the notice and read and comprehend the entire content of |
557 | the notice and the agenda. Unless a unit owner waives in writing |
558 | the right to receive notice of the annual meeting, such notice |
559 | shall be hand delivered, mailed, or electronically transmitted |
560 | to each unit owner. Notice for meetings and notice for all other |
561 | purposes shall be mailed to each unit owner at the address last |
562 | furnished to the association by the unit owner, or hand |
563 | delivered to each unit owner. However, if a unit is owned by |
564 | more than one person, the association shall provide notice, for |
565 | meetings and all other purposes, to that one address which the |
566 | developer initially identifies for that purpose and thereafter |
567 | as one or more of the owners of the unit shall so advise the |
568 | association in writing, or if no address is given or the owners |
569 | of the unit do not agree, to the address provided on the deed of |
570 | record. An officer of the association, or the manager or other |
571 | person providing notice of the association meeting, shall |
572 | provide an affidavit or United States Postal Service certificate |
573 | of mailing, to be included in the official records of the |
574 | association affirming that the notice was mailed or hand |
575 | delivered, in accordance with this provision. |
576 | 3. The members of the board shall be elected by written |
577 | ballot or voting machine. Proxies shall in no event be used in |
578 | electing the board, either in general elections or elections to |
579 | fill vacancies caused by recall, resignation, or otherwise, |
580 | unless otherwise provided in this chapter. Not less than 60 days |
581 | before a scheduled election, the association or its |
582 | representative shall mail, deliver, or electronically transmit, |
583 | whether by separate association mailing or included in another |
584 | association mailing, delivery, or transmission, including |
585 | regularly published newsletters, to each unit owner entitled to |
586 | a vote, a first notice of the date of the election. Any unit |
587 | owner or other eligible person desiring to be a candidate for |
588 | the board must give written notice to the association or its |
589 | representative not less than 40 days before a scheduled |
590 | election. Together with the written notice and agenda as set |
591 | forth in subparagraph 2., the association or its representative |
592 | shall mail, deliver, or electronically transmit a second notice |
593 | of the election to all unit owners entitled to vote therein, |
594 | together with a ballot which shall list all candidates. Upon |
595 | request of a candidate, the association or its representative |
596 | shall include an information sheet, no larger than 81/2 inches |
597 | by 11 inches, which must be furnished by the candidate not less |
598 | than 35 days before the election, to be included with the |
599 | mailing, delivery, or transmission of the ballot, with the costs |
600 | of mailing, delivery, or electronic transmission and copying to |
601 | be borne by the association. An officer of the association, or |
602 | the manager or other person providing the first and second |
603 | notices, shall provide an affidavit or United States Postal |
604 | Service certificate of mailing, to be included in the official |
605 | records of the association, affirming that the notices were |
606 | mailed or hand delivered in accordance with this subparagraph. |
607 | The association or its representative is not liable for the |
608 | contents of the information sheets prepared by the candidates. |
609 | In order to reduce costs, the association may print or duplicate |
610 | the information sheets on both sides of the paper. The division |
611 | shall by rule establish voting procedures consistent with the |
612 | provisions contained herein, including rules establishing |
613 | procedures for giving notice by electronic transmission and |
614 | rules providing for the secrecy of ballots. All ballot envelopes |
615 | must be placed in a locked or sealed ballot drop box immediately |
616 | upon receipt, and the box shall not be opened in advance of the |
617 | election meeting. Elections shall be decided by a plurality of |
618 | those ballots cast. There shall be no quorum requirement; |
619 | however, at least 20 percent of the eligible voters must cast a |
620 | ballot in order to have a valid election of members of the |
621 | board. No unit owner shall permit any other person to vote his |
622 | or her ballot, except for a person acting under a specific power |
623 | of attorney, and any such ballots improperly cast shall be |
624 | deemed invalid, provided any unit owner who violates this |
625 | provision may be fined by the association in accordance with s. |
626 | 718.303. A unit owner who needs assistance in casting the ballot |
627 | for the reasons stated in s. 101.051 may obtain assistance in |
628 | casting the ballot. The regular election shall occur on the date |
629 | of the annual meeting. The provisions of this subparagraph shall |
630 | not apply to timeshare condominium associations. Notwithstanding |
631 | the provisions of this subparagraph, an election is not required |
632 | unless more candidates file notices of intent to run or are |
633 | nominated than board vacancies exist. |
634 | 4. Any approval by unit owners called for by this chapter |
635 | or the applicable declaration or bylaws, including, but not |
636 | limited to, the approval requirement in s. 718.111(8), shall be |
637 | made at a duly noticed meeting of unit owners and shall be |
638 | subject to all requirements of this chapter or the applicable |
639 | condominium documents relating to unit owner decisionmaking, |
640 | except that unit owners may take action by written agreement, |
641 | without meetings, on matters for which action by written |
642 | agreement without meetings is expressly allowed by the |
643 | applicable bylaws or declaration or any statute that provides |
644 | for such action. |
645 | 5. Unit owners may waive notice of specific meetings if |
646 | allowed by the applicable bylaws or declaration or any statute. |
647 | If authorized by the bylaws, notice of meetings of the board of |
648 | administration, unit owner meetings, except unit owner meetings |
649 | called to recall board members under paragraph (j), and |
650 | committee meetings may be given by electronic transmission to |
651 | unit owners who consent to receive notice by electronic |
652 | transmission. |
653 | 6. Unit owners shall have the right to participate in |
654 | meetings of unit owners with reference to all designated agenda |
655 | items. However, the association may adopt reasonable rules |
656 | governing the frequency, duration, and manner of unit owner |
657 | participation. |
658 | 7. Any unit owner may tape record or videotape a meeting |
659 | of the unit owners subject to reasonable rules adopted by the |
660 | division. |
661 | 8. Unless otherwise provided in the bylaws, any vacancy |
662 | occurring on the board before the expiration of a term may be |
663 | filled by the affirmative vote of the majority of the remaining |
664 | directors, even if the remaining directors constitute less than |
665 | a quorum, or by the sole remaining director. In the alternative, |
666 | a board may hold an election to fill the vacancy, in which case |
667 | the election procedures must conform to the requirements of |
668 | subparagraph 3. unless the association has opted out of the |
669 | statutory election process, in which case the bylaws of the |
670 | association control. Unless otherwise provided in the bylaws, a |
671 | board member appointed or elected under this section shall fill |
672 | the vacancy for the unexpired term of the seat being filled. |
673 | Filling vacancies created by recall is governed by paragraph (j) |
674 | and rules adopted by the division. |
675 |
|
676 | Notwithstanding subparagraphs (b)2. and (d)3., an association |
677 | may, by the affirmative vote of a majority of the total voting |
678 | interests, provide for different voting and election procedures |
679 | in its bylaws, which vote may be by a proxy specifically |
680 | delineating the different voting and election procedures. The |
681 | different voting and election procedures may provide for |
682 | elections to be conducted by limited or general proxy. |
683 | (e) Budget meeting.-- |
684 | 1. Any meeting at which a proposed annual budget of an |
685 | association will be considered by the board or unit owners shall |
686 | be open to all unit owners. At least 14 days prior to such a |
687 | meeting, the board shall hand deliver to each unit owner, mail |
688 | to each unit owner at the address last furnished to the |
689 | association by the unit owner, or electronically transmit to the |
690 | location furnished by the unit owner for that purpose a notice |
691 | of such meeting and a copy of the proposed annual budget. An |
692 | officer or manager of the association, or other person providing |
693 | notice of such meeting, shall execute an affidavit evidencing |
694 | compliance with such notice requirement, and such affidavit |
695 | shall be filed among the official records of the association. |
696 | 2.a. If a board adopts in any fiscal year an annual budget |
697 | which requires assessments against unit owners which exceed 115 |
698 | percent of assessments for the preceding fiscal year, the board |
699 | shall conduct a special meeting of the unit owners to consider a |
700 | substitute budget if the board receives, within 21 days after |
701 | adoption of the annual budget, a written request for a special |
702 | meeting from at least 10 percent of all voting interests. The |
703 | special meeting shall be conducted within 60 days after adoption |
704 | of the annual budget. At least 14 days prior to such special |
705 | meeting, the board shall hand deliver to each unit owner, or |
706 | mail to each unit owner at the address last furnished to the |
707 | association, a notice of the meeting. An officer or manager of |
708 | the association, or other person providing notice of such |
709 | meeting shall execute an affidavit evidencing compliance with |
710 | this notice requirement, and such affidavit shall be filed among |
711 | the official records of the association. Unit owners may |
712 | consider and adopt a substitute budget at the special meeting. A |
713 | substitute budget is adopted if approved by a majority of all |
714 | voting interests unless the bylaws require adoption by a greater |
715 | percentage of voting interests. If there is not a quorum at the |
716 | special meeting or a substitute budget is not adopted, the |
717 | annual budget previously adopted by the board shall take effect |
718 | as scheduled. |
719 | b. Any determination of whether assessments exceed 115 |
720 | percent of assessments for the prior fiscal year shall exclude |
721 | any authorized provision for reasonable reserves for repair or |
722 | replacement of the condominium property, anticipated expenses of |
723 | the association which the board does not expect to be incurred |
724 | on a regular or annual basis, or assessments for betterments to |
725 | the condominium property. |
726 | c. If the developer controls the board, assessments shall |
727 | not exceed 115 percent of assessments for the prior fiscal year |
728 | unless approved by a majority of all voting interests. |
729 | (f) Annual budget.-- |
730 | 1. The association shall prepare an annual budget of |
731 | estimated revenues and expenses. The adopted budget of the prior |
732 | fiscal year shall remain in effect until the association has |
733 | adopted a new budget for the current fiscal year. The proposed |
734 | annual budget of estimated revenues and common expenses shall be |
735 | detailed and shall show the amounts budgeted by accounts and |
736 | expense classifications, including, if applicable, but not |
737 | limited to, those expenses listed in s. 718.504(21). A |
738 | multicondominium association shall adopt a separate budget of |
739 | common expenses for each condominium the association operates |
740 | and shall adopt a separate budget of common expenses for the |
741 | association. In addition, if the association maintains limited |
742 | common elements with the cost to be shared only by those |
743 | entitled to use the limited common elements as provided for in |
744 | s. 718.113(1), the budget or a schedule attached thereto shall |
745 | show amounts budgeted therefor. If, after turnover of control of |
746 | the association to the unit owners, any of the expenses listed |
747 | in s. 718.504(21) are not applicable, they need not be listed. |
748 | 2. In addition to annual operating expenses, the budget |
749 | shall include reserve accounts for capital expenditures and |
750 | deferred maintenance. These accounts shall include, but are not |
751 | limited to, roof replacement, building painting, and pavement |
752 | resurfacing, regardless of the amount of deferred maintenance |
753 | expense or replacement cost, and for any other item for which |
754 | the deferred maintenance expense or replacement cost exceeds |
755 | $10,000. The amount to be reserved shall be computed by means of |
756 | a formula which is based upon estimated remaining useful life |
757 | and estimated replacement cost or deferred maintenance expense |
758 | of each reserve item. The association may adjust replacement |
759 | reserve assessments annually to take into account any changes in |
760 | estimates or extension of the useful life of a reserve item |
761 | caused by deferred maintenance. This subsection does not apply |
762 | to an adopted budget in which the members of an association have |
763 | determined, by a majority vote at a duly called meeting of the |
764 | association, to provide no reserves or less reserves than |
765 | required by this subsection. However, prior to turnover of |
766 | control of an association by a developer to unit owners other |
767 | than a developer pursuant to s. 718.301, the developer may vote |
768 | to waive the reserves or reduce the funding of reserves for the |
769 | first 2 fiscal years of the association's operation, beginning |
770 | with the fiscal year in which the initial declaration is |
771 | recorded, after which time reserves may be waived or reduced |
772 | only upon the vote of a majority of all nondeveloper voting |
773 | interests voting in person or by limited proxy at a duly called |
774 | meeting of the association. If a meeting of the unit owners has |
775 | been called to determine whether to waive or reduce the funding |
776 | of reserves, and no such result is achieved or a quorum is not |
777 | attained, the reserves as included in the budget shall go into |
778 | effect. After the turnover, the developer may vote its voting |
779 | interest to waive or reduce the funding of reserves. |
780 | 3. Reserve funds and any interest accruing thereon shall |
781 | remain in the reserve account or accounts, and shall be used |
782 | only for authorized reserve expenditures unless their use for |
783 | other purposes is approved in advance by a majority vote at a |
784 | duly called meeting of the association. Prior to turnover of |
785 | control of an association by a developer to unit owners other |
786 | than the developer pursuant to s. 718.301, the developer- |
787 | controlled association shall not vote to use reserves for |
788 | purposes other than that for which they were intended without |
789 | the approval of a majority of all nondeveloper voting interests, |
790 | voting in person or by limited proxy at a duly called meeting of |
791 | the association. |
792 | 4. The only voting interests which are eligible to vote on |
793 | questions that involve waiving or reducing the funding of |
794 | reserves, or using existing reserve funds for purposes other |
795 | than purposes for which the reserves were intended, are the |
796 | voting interests of the units subject to assessment to fund the |
797 | reserves in question. The face of all ballots that involve |
798 | questions relating to waiving or reducing the funding of |
799 | reserves or using existing reserve funds for purposes other than |
800 | purposes for which the reserves were intended shall contain the |
801 | following statement in capitalized, bold letters in a font size |
802 | larger than any other used on the face of the ballot: WAIVING OF |
803 | RESERVES, IN WHOLE OR IN PART, OR ALLOWING ALTERNATE USES OF |
804 | EXISTING RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT |
805 | OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE RESERVE |
806 | ITEMS. |
807 | 5. A vote to provide for no reserves or a percentage of |
808 | reserves shall be made at the annual meeting of the unit owners |
809 | called under paragraph (d). The division shall adopt the form |
810 | for the ballot for no reserves and a percentage of reserves. |
811 | 6. Notwithstanding subparagraph 3., the association after |
812 | turnover of control of the association may, in case of a |
813 | catastrophic event, use reserve funds for nonscheduled purposes |
814 | to mitigate further damage to units or common elements or to |
815 | make the condominium accessible for repairs. |
816 | (g) Assessments.--The manner of collecting from the unit |
817 | owners their shares of the common expenses shall be stated in |
818 | the bylaws. Assessments shall be made against units not less |
819 | frequently than quarterly in an amount which is not less than |
820 | that required to provide funds in advance for payment of all of |
821 | the anticipated current operating expenses and for all of the |
822 | unpaid operating expenses previously incurred. Nothing in this |
823 | paragraph shall preclude the right of an association to |
824 | accelerate assessments of an owner delinquent in payment of |
825 | common expenses. Accelerated assessments shall be due and |
826 | payable on the date the claim of lien is filed. Such accelerated |
827 | assessments shall include the amounts due for the remainder of |
828 | the budget year in which the claim of lien was filed. |
829 | (h) Amendment of bylaws.-- |
830 | 1. The method by which the bylaws may be amended |
831 | consistent with the provisions of this chapter shall be stated. |
832 | If the bylaws fail to provide a method of amendment, the bylaws |
833 | may be amended if the amendment is approved by the owners of not |
834 | less than two-thirds of the voting interests. |
835 | 2. No bylaw shall be revised or amended by reference to |
836 | its title or number only. Proposals to amend existing bylaws |
837 | shall contain the full text of the bylaws to be amended; new |
838 | words shall be inserted in the text underlined, and words to be |
839 | deleted shall be lined through with hyphens. However, if the |
840 | proposed change is so extensive that this procedure would |
841 | hinder, rather than assist, the understanding of the proposed |
842 | amendment, it is not necessary to use underlining and hyphens as |
843 | indicators of words added or deleted, but, instead, a notation |
844 | must be inserted immediately preceding the proposed amendment in |
845 | substantially the following language: "Substantial rewording of |
846 | bylaw. See bylaw _____ for present text." |
847 | 3. Nonmaterial errors or omissions in the bylaw process |
848 | will not invalidate an otherwise properly promulgated amendment. |
849 | (i) Transfer fees.--No charge shall be made by the |
850 | association or any body thereof in connection with the sale, |
851 | mortgage, lease, sublease, or other transfer of a unit unless |
852 | the association is required to approve such transfer and a fee |
853 | for such approval is provided for in the declaration, articles, |
854 | or bylaws. Any such fee may be preset, but in no event may such |
855 | fee exceed $100 per applicant other than husband/wife or |
856 | parent/dependent child, which are considered one applicant. |
857 | However, if the lease or sublease is a renewal of a lease or |
858 | sublease with the same lessee or sublessee, no charge shall be |
859 | made. The foregoing notwithstanding, an association may, if the |
860 | authority to do so appears in the declaration or bylaws, require |
861 | that a prospective lessee place a security deposit, in an amount |
862 | not to exceed the equivalent of 1 month's rent, into an escrow |
863 | account maintained by the association. The security deposit |
864 | shall protect against damages to the common elements or |
865 | association property. Payment of interest, claims against the |
866 | deposit, refunds, and disputes under this paragraph shall be |
867 | handled in the same fashion as provided in part II of chapter |
868 | 83. |
869 | (j) Recall of board members.--Subject to the provisions of |
870 | s. 718.301, any member of the board of administration may be |
871 | recalled and removed from office with or without cause by the |
872 | vote or agreement in writing by a majority of all the voting |
873 | interests. A special meeting of the unit owners to recall a |
874 | member or members of the board of administration may be called |
875 | by 10 percent of the voting interests giving notice of the |
876 | meeting as required for a meeting of unit owners, and the notice |
877 | shall state the purpose of the meeting. Electronic transmission |
878 | may not be used as a method of giving notice of a meeting called |
879 | in whole or in part for this purpose. |
880 | 1. If the recall is approved by a majority of all voting |
881 | interests by a vote at a meeting, the recall will be effective |
882 | as provided herein. The board shall duly notice and hold a board |
883 | meeting within 5 full business days of the adjournment of the |
884 | unit owner meeting to recall one or more board members. At the |
885 | meeting, the board shall either certify the recall, in which |
886 | case such member or members shall be recalled effective |
887 | immediately and shall turn over to the board within 5 full |
888 | business days any and all records and property of the |
889 | association in their possession, or shall proceed as set forth |
890 | in subparagraph 3. |
891 | 2. If the proposed recall is by an agreement in writing by |
892 | a majority of all voting interests, the agreement in writing or |
893 | a copy thereof shall be served on the association by certified |
894 | mail or by personal service in the manner authorized by chapter |
895 | 48 and the Florida Rules of Civil Procedure. The board of |
896 | administration shall duly notice and hold a meeting of the board |
897 | within 5 full business days after receipt of the agreement in |
898 | writing. At the meeting, the board shall either certify the |
899 | written agreement to recall a member or members of the board, in |
900 | which case such member or members shall be recalled effective |
901 | immediately and shall turn over to the board within 5 full |
902 | business days any and all records and property of the |
903 | association in their possession, or proceed as described in |
904 | subparagraph 3. |
905 | 3. If the board determines not to certify the written |
906 | agreement to recall a member or members of the board, or does |
907 | not certify the recall by a vote at a meeting, the board shall, |
908 | within 5 full business days after the meeting, file with the |
909 | division a petition for arbitration pursuant to the procedures |
910 | in s. 718.1255. For the purposes of this section, the unit |
911 | owners who voted at the meeting or who executed the agreement in |
912 | writing shall constitute one party under the petition for |
913 | arbitration. If the arbitrator certifies the recall as to any |
914 | member or members of the board, the recall will be effective |
915 | upon mailing of the final order of arbitration to the |
916 | association. If the association fails to comply with the order |
917 | of the arbitrator, the division may take action pursuant to s. |
918 | 718.501. Any member or members so recalled shall deliver to the |
919 | board any and all records of the association in their possession |
920 | within 5 full business days of the effective date of the recall. |
921 | 4. If the board fails to duly notice and hold a board |
922 | meeting within 5 full business days of service of an agreement |
923 | in writing or within 5 full business days of the adjournment of |
924 | the unit owner recall meeting, the recall shall be deemed |
925 | effective and the board members so recalled shall immediately |
926 | turn over to the board any and all records and property of the |
927 | association. |
928 | 5. If a vacancy occurs on the board as a result of a |
929 | recall and less than a majority of the board members are |
930 | removed, the vacancy may be filled by the affirmative vote of a |
931 | majority of the remaining directors, notwithstanding any |
932 | provision to the contrary contained in this subsection. If |
933 | vacancies occur on the board as a result of a recall and a |
934 | majority or more of the board members are removed, the vacancies |
935 | shall be filled in accordance with procedural rules to be |
936 | adopted by the division, which rules need not be consistent with |
937 | this subsection. The rules must provide procedures governing the |
938 | conduct of the recall election as well as the operation of the |
939 | association during the period after a recall but prior to the |
940 | recall election. |
941 | (k) Arbitration.--There shall be a provision for mandatory |
942 | nonbinding arbitration as provided for in s. 718.1255. |
943 | (l) Certificate of compliance.--There shall be a provision |
944 | that a certificate of compliance from a licensed electrical |
945 | contractor or electrician may be accepted by the association's |
946 | board as evidence of compliance of the condominium units with |
947 | the applicable fire and life safety code. Notwithstanding the |
948 | provisions of chapter 633 or of any other code, statute, |
949 | ordinance, administrative rule, or regulation, or any |
950 | interpretation of the foregoing, an association, condominium, or |
951 | unit owner is not obligated to retrofit the common elements or |
952 | units of a residential condominium with a fire sprinkler system |
953 | or other engineered lifesafety system in a building that has |
954 | been certified for occupancy by the applicable governmental |
955 | entity, if the unit owners have voted to forego such |
956 | retrofitting and engineered lifesafety system by the affirmative |
957 | vote of two-thirds of all voting interests in the affected |
958 | condominium. However, a condominium association may not vote to |
959 | forego the retrofitting with a fire sprinkler system of common |
960 | areas in a high-rise building. For purposes of this subsection, |
961 | the term "high-rise building" means a building that is greater |
962 | than 75 feet in height where the building height is measured |
963 | from the lowest level of fire department access to the floor of |
964 | the highest occupiable story. For purposes of this subsection, |
965 | the term "common areas" means any enclosed hallway, corridor, |
966 | lobby, stairwell, or entryway. In no event shall the local |
967 | authority having jurisdiction require completion of retrofitting |
968 | of common areas with a sprinkler system before the end of 2014. |
969 | 1. A vote to forego retrofitting may be obtained by |
970 | limited proxy or by a ballot personally cast at a duly called |
971 | membership meeting, or by execution of a written consent by the |
972 | member, and shall be effective upon the recording of a |
973 | certificate attesting to such vote in the public records of the |
974 | county where the condominium is located. The association shall |
975 | mail, hand deliver, or electronically transmit to each unit |
976 | owner written notice at least 14 days prior to such membership |
977 | meeting in which the vote to forego retrofitting of the required |
978 | fire sprinkler system is to take place. Within 30 days after the |
979 | association's opt-out vote, notice of the results of the opt-out |
980 | vote shall be mailed, hand delivered, or electronically |
981 | transmitted to all unit owners. Evidence of compliance with this |
982 | 30-day notice shall be made by an affidavit executed by the |
983 | person providing the notice and filed among the official records |
984 | of the association. After such notice is provided to each owner, |
985 | a copy of such notice shall be provided by the current owner to |
986 | a new owner prior to closing and shall be provided by a unit |
987 | owner to a renter prior to signing a lease. |
988 | 2. As part of the information collected annually from |
989 | condominiums, the division shall require condominium |
990 | associations to report the membership vote and recording of a |
991 | certificate under this subsection and, if retrofitting has been |
992 | undertaken, the per-unit cost of such work. The division shall |
993 | annually report to the Division of State Fire Marshal of the |
994 | Department of Financial Services the number of condominiums that |
995 | have elected to forego retrofitting. |
996 | (m) Common elements; limited power to convey.-- |
997 | 1. With respect to condominiums created on or after |
998 | October 1, 1994, the bylaws shall include a provision granting |
999 | the association a limited power to convey a portion of the |
1000 | common elements to a condemning authority for the purpose of |
1001 | providing utility easements, right-of-way expansion, or other |
1002 | public purposes, whether negotiated or as a result of eminent |
1003 | domain proceedings. |
1004 | 2. In any case where the bylaws are silent as to the |
1005 | association's power to convey common elements as described in |
1006 | subparagraph 1., the bylaws shall be deemed to include the |
1007 | provision described in subparagraph 1. |
1008 | Section 3. Subsections (6) and (7) are added to section |
1009 | 718.113, Florida Statutes, to read: |
1010 | 718.113 Maintenance; limitation upon improvement; display |
1011 | of flag; hurricane shutters; display of religious decorations.-- |
1012 | (6) Every 5 years, each board of administration shall have |
1013 | the condominium buildings inspected by a professional engineer |
1014 | or professional architect registered in the state for the |
1015 | purposes of determining whether the buildings are structurally |
1016 | and electrically safe and determining any immediate maintenance |
1017 | required as well as any long-term maintenance necessary in the |
1018 | form of a long-term maintenance plan. The long-term maintenance |
1019 | plan shall include an executive summary that shall be |
1020 | distributed to all unit owners. The engineer or architect shall |
1021 | provide a report indicating the manner and type of inspection |
1022 | forming the basis for the report and description of any matters |
1023 | identified as requiring remedial action. The report shall become |
1024 | an official record of the association and be provided to the |
1025 | members upon request pursuant to s. 718.111(12). |
1026 | (7) The board of administration may not adopt any rule or |
1027 | regulation impairing any rights guaranteed by the First |
1028 | Amendment to the Constitution of the United States or s. 3, Art. |
1029 | I of the Florida Constitution, including, but not limited to, |
1030 | the free exercise of religion, nor may any rules or regulations |
1031 | conflict with the provisions of this chapter or the condominium |
1032 | instruments. A rule or regulation may not prohibit any |
1033 | reasonable accommodation for religious practices, including the |
1034 | attachment of religiously mandated objects to the front-door |
1035 | area of a condominium unit. |
1036 | Section 4. Section 718.1224, Florida Statutes, is created |
1037 | to read: |
1038 | 718.1224 Prohibition against SLAPP suits.-- |
1039 | (1) It is the intent of the Legislature to protect the |
1040 | right of condominium unit owners to exercise their rights to |
1041 | instruct their representatives and petition for redress of |
1042 | grievances before the various governmental entities of this |
1043 | state as protected by the First Amendment to the United States |
1044 | Constitution and s. 5, Art. I of the State Constitution. The |
1045 | Legislature recognizes that strategic lawsuits against public |
1046 | participation, or "SLAPP suits" as they are typically referred |
1047 | to, have occurred when association members are sued by |
1048 | individuals, business entities, or governmental entities arising |
1049 | out of a condominium unit owner's appearance and presentation |
1050 | before a governmental entity on matters related to the |
1051 | condominium association. However, it is the public policy of |
1052 | this state that governmental entities, business organizations, |
1053 | and individuals not engage in SLAPP suits, because such actions |
1054 | are inconsistent with the right of condominium unit owners to |
1055 | participate in the state's institutions of government. |
1056 | Therefore, the Legislature finds and declares that prohibiting |
1057 | such lawsuits by governmental entities, business entities, and |
1058 | individuals against condominium unit owners who address matters |
1059 | concerning their condominium association will preserve this |
1060 | fundamental state policy, preserve the constitutional rights of |
1061 | condominium unit owners, and ensure the continuation of |
1062 | representative government in this state. It is the intent of the |
1063 | Legislature that such lawsuits be expeditiously disposed of by |
1064 | the courts. As used in this subsection, the term "governmental |
1065 | entity" means the state, including the executive, legislative, |
1066 | and judicial branches of government; the independent |
1067 | establishments of the state, counties, municipalities, |
1068 | districts, authorities, boards, or commissions; or any agencies |
1069 | of these branches which are subject to chapter 286. |
1070 | (2) A governmental entity, business organization, or |
1071 | individual in this state may not file or cause to be filed |
1072 | through its employees or agents any lawsuit, cause of action, |
1073 | claim, cross-claim, or counterclaim against a condominium unit |
1074 | owner without merit and solely because such condominium unit |
1075 | owner has exercised the right to instruct his or her |
1076 | representatives or the right to petition for redress of |
1077 | grievances before the various governmental entities of this |
1078 | state, as protected by the First Amendment to the United States |
1079 | Constitution and s. 5, Art. I of the State Constitution. |
1080 | (3) A condominium unit owner sued by a governmental |
1081 | entity, business organization, or individual in violation of |
1082 | this section has a right to an expeditious resolution of a claim |
1083 | that the suit is in violation of this section. A condominium |
1084 | unit owner may petition the court for an order dismissing the |
1085 | action or granting final judgment in favor of that condominium |
1086 | unit owner. The petitioner may file a motion for summary |
1087 | judgment, together with supplemental affidavits, seeking a |
1088 | determination that the governmental entity's, business |
1089 | organization's, or individual's lawsuit has been brought in |
1090 | violation of this section. The governmental entity, business |
1091 | organization, or individual shall thereafter file its response |
1092 | and any supplemental affidavits. As soon as practicable, the |
1093 | court shall set a hearing on the petitioner's motion, which |
1094 | shall be held at the earliest possible time after the filing of |
1095 | the governmental entity's, business organization's, or |
1096 | individual's response. The court may award the condominium unit |
1097 | owner sued by the governmental entity, business organization, or |
1098 | individual actual damages arising from the governmental |
1099 | entity's, individual's, or business organization's violation of |
1100 | this section. A court may treble the damages awarded to a |
1101 | prevailing condominium unit owner and shall state the basis for |
1102 | the treble damages award in its judgment. The court shall award |
1103 | the prevailing party reasonable attorney fees and costs incurred |
1104 | in connection with a claim that an action was filed in violation |
1105 | of this section. |
1106 | (4) Condominium associations may not expend association |
1107 | funds in prosecuting a SLAPP suit against a condominium unit |
1108 | owner. |
1109 | Section 5. This act shall take effect July 1, 2008. |