HB 27

1	A bill to be entitled
2	An act relating to residential properties; amending s.
3	718.112, F.S.; requiring each newly elected director to
4	certify to the secretary of the association that he or she
5	has read the association's declarations of covenants and
6	restrictions, articles of incorporation, bylaws, and
7	current written policies and will work to uphold such
8	documents and policies to the best of his or her ability;
9	providing that a failure to timely file the statement
10	automatically disqualifies the director from service on
11	the association's board of directors; requiring the
12	secretary of the association to retain a director's
13	certification for inspection by the members for a
14	specified period of years after a director's election;
15	amending s. 720.303, F.S.; revising provisions relating to
16	homeowners' association board meetings, inspection and
17	copying of records, and reserve accounts of budgets;
18	prohibiting a salary or compensation for certain
19	association personnel; providing exceptions; amending s.
20	720.305, F.S.; authorizing fines assessed against members
21	which exceed a certain amount to become a lien against a
22	parcel; amending s. 720.306, F.S.; providing requirements
23	for secret ballots; requiring newly elected members of a
24	board of directors to make certain certifications in
25	writing to the association; providing for disqualification
26	for failure to make such certifications; requiring an
27	association to retain certifications for a specified time;
28	amending s. 720.401, F.S.; requiring that the disclosure
29	summary to prospective parcel owners include additional
30	provisions; amending s. 34.01, F.S.; correcting a cross-
31	reference to conform to changes made by the act; amending
32	s. 720.302, F.S.; correcting a cross-reference to conform
33	to changes made by the act; establishing legislative
34	intent; repealing s. 720.311, F.S., relating to a
35	procedure for dispute resolution in homeowners'
36	associations; providing that dispute resolution cases
37	pending on the date of repeal will continue under the
38	repealed provisions; creating part IV of ch. 720, F.S.,
39	relating to dispute resolution; creating s. 720.501, F.S.;
40	providing a short title; creating s. 720.502, F.S.;
41	providing legislative findings; creating s. 720.503, F.S.;
42	setting applicability of provisions for mediation and
43	arbitration applicable to disputes in homeowners'
44	associations; creating exceptions; providing
45	applicability; tolling applicable statutes of limitations;
46	creating s. 720.504, F.S.; requiring that the notice of
47	dispute be delivered before referral to mediation or
48	arbitration; creating s. 720.505, F.S.; creating a
49	statutory notice form for referral to mediation; requiring
50	delivery by certified mail or personal delivery; setting
51	deadlines; requiring parties to share costs; requiring the
52	selection of a mediator and times to meet; providing
53	penalties for failure to mediate; creating s. 720.506,
54	F.S.; creating an opt-out provision; creating s. 720.507,
55	F.S.; creating a statutory notice form for referral to
56	arbitration; requiring delivery by certified mail or
57	personal delivery; setting deadlines; requiring parties to
58	share costs; requiring the selection of an arbitrator and
59	times to meet; providing penalties for failure to
60	arbitrate; creating s. 720.508, F.S.; providing for rules
61	of procedure; providing for confidentiality; creating s.
62	720.509, F.S.; setting qualifications for mediators and
63	arbitrators; creating s. 720.510, F.S.; providing for
64	enforcement of mediation agreements and arbitration
65	awards; providing that any three or more condominium
66	associations may form a self-insurance fund for certain
67	purposes under certain conditions; requiring that the
68	contract for participating in the fund disclose certain
69	information and contain certain provisions; requiring
70	that a disclosure be provided to an association before
71	execution of such contract; requiring that such disclosure
72	contain certain information; providing for the charging of
73	contributions for participation in the fund; requiring
74	that the majority of the governing board of the fund be
75	participants in the fund; providing powers of the
76	governing board; authorizing the fund to enter into
77	certain contracts; requiring that the fund use a general
78	lines agent meeting certain criteria when soliciting
79	participation in the fund; prohibiting the fund from
80	taking certain actions when selecting such agent;
81	requiring that the fund be independently audited at
82	specified intervals; authorizing the fund to accumulate
83	funds or distribute excess funds to participants on a
84	pro rata basis; providing for a deductible for
85	participants in the fund; exempting such self-insurance
86	funds from certain requirements, regulations, fees, taxes,
87	and assessments; providing effective dates.
88
89	Be It Enacted by the Legislature of the State of Florida:
90
91	Section 1.  Paragraph (d) of subsection (2) of section
92	718.112, Florida Statutes, is amended to read:
93	718.112  Bylaws.--
94	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
95	following and, if they do not do so, shall be deemed to include
96	the following:
97	(d)  Unit owner meetings.--
98	1.  There shall be an annual meeting of the unit owners
99	held at the location provided in the association bylaws and, if
100	the bylaws are silent as to the location, the meeting shall be
101	held within 45 miles of the condominium property. However, such
102	distance requirement does not apply to an association governing
103	a timeshare condominium. Unless the bylaws provide otherwise, a
104	vacancy on the board caused by the expiration of a director's
105	term shall be filled by electing a new board member, and the
106	election shall be by secret ballot; however, if the number of
107	vacancies equals or exceeds the number of candidates, no
108	election is required. The terms of all members of the board
109	shall expire at the annual meeting and such board members may
110	stand for reelection unless otherwise permitted by the bylaws.
111	In the event that the bylaws permit staggered terms of no more
112	than 2 years and upon approval of a majority of the total voting
113	interests, the association board members may serve 2-year
114	staggered terms. If no person is interested in or demonstrates
115	an intention to run for the position of a board member whose
116	term has expired according to the provisions of this
117	subparagraph, such board member whose term has expired shall be
118	automatically reappointed to the board of administration and
119	need not stand for reelection. In a condominium association of
120	more than 10 units, coowners of a unit may not serve as members
121	of the board of directors at the same time. Any unit owner
122	desiring to be a candidate for board membership shall comply
123	with subparagraph 3. A person who has been suspended or removed
124	by the division under this chapter, or who is delinquent in the
125	payment of any fee or assessment as provided in paragraph (n),
126	is not eligible for board membership. A person who has been
127	convicted of any felony in this state or in a United States
128	District or Territorial Court, or who has been convicted of any
129	offense in another jurisdiction that would be considered a
130	felony if committed in this state, is not eligible for board
131	membership unless such felon's civil rights have been restored
132	for a period of no less than 5 years as of the date on which
133	such person seeks election to the board. The validity of an
134	action by the board is not affected if it is later determined
135	that a member of the board is ineligible for board membership
136	due to having been convicted of a felony.
137	2.  The bylaws shall provide the method of calling meetings
138	of unit owners, including annual meetings. Written notice, which
139	notice must include an agenda, shall be mailed, hand delivered,
140	or electronically transmitted to each unit owner at least 14
141	days prior to the annual meeting and shall be posted in a
142	conspicuous place on the condominium property at least 14
143	continuous days preceding the annual meeting. Upon notice to the
144	unit owners, the board shall by duly adopted rule designate a
145	specific location on the condominium property or association
146	property upon which all notices of unit owner meetings shall be
147	posted; however, if there is no condominium property or
148	association property upon which notices can be posted, this
149	requirement does not apply. In lieu of or in addition to the
150	physical posting of notice of any meeting of the unit owners on
151	the condominium property, the association may, by reasonable
152	rule, adopt a procedure for conspicuously posting and repeatedly
153	broadcasting the notice and the agenda on a closed-circuit cable
154	television system serving the condominium association. However,
155	if broadcast notice is used in lieu of a notice posted
156	physically on the condominium property, the notice and agenda
157	must be broadcast at least four times every broadcast hour of
158	each day that a posted notice is otherwise required under this
159	section. When broadcast notice is provided, the notice and
160	agenda must be broadcast in a manner and for a sufficient
161	continuous length of time so as to allow an average reader to
162	observe the notice and read and comprehend the entire content of
163	the notice and the agenda. Unless a unit owner waives in writing
164	the right to receive notice of the annual meeting, such notice
165	shall be hand delivered, mailed, or electronically transmitted
166	to each unit owner. Notice for meetings and notice for all other
167	purposes shall be mailed to each unit owner at the address last
168	furnished to the association by the unit owner, or hand
169	delivered to each unit owner. However, if a unit is owned by
170	more than one person, the association shall provide notice, for
171	meetings and all other purposes, to that one address which the
172	developer initially identifies for that purpose and thereafter
173	as one or more of the owners of the unit shall so advise the
174	association in writing, or if no address is given or the owners
175	of the unit do not agree, to the address provided on the deed of
176	record. An officer of the association, or the manager or other
177	person providing notice of the association meeting, shall
178	provide an affidavit or United States Postal Service certificate
179	of mailing, to be included in the official records of the
180	association affirming that the notice was mailed or hand
181	delivered, in accordance with this provision.
182	3.  The members of the board shall be elected by written
183	ballot or voting machine. Proxies shall in no event be used in
184	electing the board, either in general elections or elections to
185	fill vacancies caused by recall, resignation, or otherwise,
186	unless otherwise provided in this chapter. Not less than 60 days
187	before a scheduled election, the association shall mail,
188	deliver, or electronically transmit, whether by separate
189	association mailing or included in another association mailing,
190	delivery, or transmission, including regularly published
191	newsletters, to each unit owner entitled to a vote, a first
192	notice of the date of the election along with a certification
193	form provided by the division attesting that he or she has read
194	and understands, to the best of his or her ability, the
195	governing documents of the association and the provisions of
196	this chapter and any applicable rules. Any unit owner or other
197	eligible person desiring to be a candidate for the board must
198	give written notice to the association not less than 40 days
199	before a scheduled election. Together with the written notice
200	and agenda as set forth in subparagraph 2., the association
201	shall mail, deliver, or electronically transmit a second notice
202	of the election to all unit owners entitled to vote therein,
203	together with a ballot which shall list all candidates. Upon
204	request of a candidate, the association shall include an
205	information sheet, no larger than 81/2 inches by 11 inches,
206	which must be furnished by the candidate not less than 35 days
207	before the election, along with the signed certification form
208	provided for in this subparagraph, to be included with the
209	mailing, delivery, or transmission of the ballot, with the costs
210	of mailing, delivery, or electronic transmission and copying to
211	be borne by the association. The association is not liable for
212	the contents of the information sheets prepared by the
213	candidates. In order to reduce costs, the association may print
214	or duplicate the information sheets on both sides of the paper.
215	The division shall by rule establish voting procedures
216	consistent with the provisions contained herein, including rules
217	establishing procedures for giving notice by electronic
218	transmission and rules providing for the secrecy of ballots.
219	Elections shall be decided by a plurality of those ballots cast.
220	There shall be no quorum requirement; however, at least 20
221	percent of the eligible voters must cast a ballot in order to
222	have a valid election of members of the board. No unit owner
223	shall permit any other person to vote his or her ballot, and any
224	such ballots improperly cast shall be deemed invalid, provided
225	any unit owner who violates this provision may be fined by the
226	association in accordance with s. 718.303. A unit owner who
227	needs assistance in casting the ballot for the reasons stated in
228	s. 101.051 may obtain assistance in casting the ballot. The
229	regular election shall occur on the date of the annual meeting.
230	The provisions of this subparagraph shall not apply to timeshare
231	condominium associations. Notwithstanding the provisions of this
232	subparagraph, an election is not required unless more candidates
233	file notices of intent to run or are nominated than board
234	vacancies exist.
235	4.  Any approval by unit owners called for by this chapter
236	or the applicable declaration or bylaws, including, but not
237	limited to, the approval requirement in s. 718.111(8), shall be
238	made at a duly noticed meeting of unit owners and shall be
239	subject to all requirements of this chapter or the applicable
240	condominium documents relating to unit owner decisionmaking,
241	except that unit owners may take action by written agreement,
242	without meetings, on matters for which action by written
243	agreement without meetings is expressly allowed by the
244	applicable bylaws or declaration or any statute that provides
245	for such action.
246	5.  Unit owners may waive notice of specific meetings if
247	allowed by the applicable bylaws or declaration or any statute.
248	If authorized by the bylaws, notice of meetings of the board of
249	administration, unit owner meetings, except unit owner meetings
250	called to recall board members under paragraph (j), and
251	committee meetings may be given by electronic transmission to
252	unit owners who consent to receive notice by electronic
253	transmission.
254	6.  Unit owners shall have the right to participate in
255	meetings of unit owners with reference to all designated agenda
256	items. However, the association may adopt reasonable rules
257	governing the frequency, duration, and manner of unit owner
258	participation.
259	7.  Any unit owner may tape record or videotape a meeting
260	of the unit owners subject to reasonable rules adopted by the
261	division.
262	8.  Unless otherwise provided in the bylaws, any vacancy
263	occurring on the board before the expiration of a term may be
264	filled by the affirmative vote of the majority of the remaining
265	directors, even if the remaining directors constitute less than
266	a quorum, or by the sole remaining director. In the alternative,
267	a board may hold an election to fill the vacancy, in which case
268	the election procedures must conform to the requirements of
269	subparagraph 3. unless the association governs 10 units or less
270	and has opted out of the statutory election process, in which
271	case the bylaws of the association control. Unless otherwise
272	provided in the bylaws, a board member appointed or elected
273	under this section shall fill the vacancy for the unexpired term
274	of the seat being filled. Filling vacancies created by recall is
275	governed by paragraph (j) and rules adopted by the division.
276	9.  Within 30 days after being elected to the board of
277	directors, a new director shall certify in writing to the
278	secretary of the association that he or she has read the
279	association's declarations of covenants and restrictions,
280	articles of incorporation, bylaws, and current written policies,
281	that he or she will work to uphold such documents and policies
282	to the best of his or her ability, and that he or she will
283	faithfully discharge his or her fiduciary responsibility to the
284	association's members. Failure to timely file the statement
285	automatically disqualifies the director from service on the
286	association's board of directors. The secretary shall cause the
287	association to retain a director's certification for inspection
288	by the members for 5 years after a director's election. Failure
289	to have such certification on file does not affect the validity
290	of any appropriate action.
291
292	Notwithstanding subparagraphs (b)2. and (d)3., an association of
293	10 or fewer units may, by the affirmative vote of a majority of
294	the total voting interests, provide for different voting and
295	election procedures in its bylaws, which vote may be by a proxy
296	specifically delineating the different voting and election
297	procedures. The different voting and election procedures may
298	provide for elections to be conducted by limited or general
299	proxy.
300	Section 2.  Paragraph (b) of subsection (2), paragraphs (a)
301	and (c) of subsection (5), paragraphs (b), (c), (d), (f), and
302	(g) of subsection (6) of section 720.303, Florida Statutes, are
303	amended, and subsection (12) is added to that section, to read:
304	720.303  Association powers and duties; meetings of board;
305	official records; budgets; financial reporting; association
306	funds; recalls.--
307	(2)  BOARD MEETINGS.--
308	(b)  Members have the right to attend all meetings of the
309	board and to speak on any matter placed on the agenda by
310	petition of the voting interests for at least 3 minutes. The
311	association may adopt written reasonable rules expanding the
312	right of members to speak and governing the frequency, duration,
313	and other manner of member statements, which rules must be
314	consistent with this paragraph and may include a sign-up sheet
315	for members wishing to speak. Notwithstanding any other law, the
316	requirement that board meetings and committee meetings be open
317	to the members is inapplicable to meetings between the board or
318	a committee to discuss proposed or pending litigation with and
319	the association's attorney, or with respect to meetings of the
320	board held for the purpose of discussing personnel matters are
321	not required to be open to the members.
322	(5)  INSPECTION AND COPYING OF RECORDS.--The official
323	records shall be maintained within the state and must be open to
324	inspection and available for photocopying by members or their
325	authorized agents at reasonable times and places within 10
326	business days after receipt of a written request for access.
327	This subsection may be complied with by having a copy of the
328	official records available for inspection or copying in the
329	community. If the association has a photocopy machine available
330	where the records are maintained, it must provide parcel owners
331	with copies on request during the inspection if the entire
332	request is limited to no more than 25 pages.
333	(a)  The failure of an association to provide access to the
334	records within 10 business days after receipt of a written
335	request submitted by certified mail, return receipt requested,
336	creates a rebuttable presumption that the association willfully
337	failed to comply with this subsection.
338	(c)  The association may adopt reasonable written rules
339	governing the frequency, time, location, notice, records to be
340	inspected, and manner of inspections, but may not require impose
341	a requirement that a parcel owner to demonstrate any proper
342	purpose for the inspection, state any reason for the inspection,
343	or limit a parcel owner's right to inspect records to less than
344	one 8-hour business day per month. The association may impose
345	fees to cover the costs of providing copies of the official
346	records, including, without limitation, the costs of copying.
347	The association may charge up to 50 cents per page for copies
348	made on the association's photocopier. If the association does
349	not have a photocopy machine available where the records are
350	kept, or if the records requested to be copied exceed 25 pages
351	in length, the association may have copies made by an outside
352	vendor or association management company personnel and may
353	charge the actual cost of copying, including any reasonable
354	costs involving personnel fees and charges at an hourly rate for
355	employee time to cover administrative costs to the association.
356	The association shall maintain an adequate number of copies of
357	the recorded governing documents, to ensure their availability
358	to members and prospective members. Notwithstanding the
359	provisions of this paragraph, the following records are shall
360	not be accessible to members or parcel owners:
361	1.  Any record protected by the lawyer-client privilege as
362	described in s. 90.502 and any record protected by the work-
363	product privilege, including, but not limited to, any record
364	prepared by an association attorney or prepared at the
365	attorney's express direction which reflects a mental impression,
366	conclusion, litigation strategy, or legal theory of the attorney
367	or the association and which was prepared exclusively for civil
368	or criminal litigation or for adversarial administrative
369	proceedings or which was prepared in anticipation of imminent
370	civil or criminal litigation or imminent adversarial
371	administrative proceedings until the conclusion of the
372	litigation or adversarial administrative proceedings.
373	2.  Information obtained by an association in connection
374	with the approval of the lease, sale, or other transfer of a
375	parcel.
376	3.  Disciplinary, health, insurance, and personnel records
377	of the association's employees.
378	4.  Medical records of parcel owners or community
379	residents.
380	(6)  BUDGETS.--
381	(b)  In addition to annual operating expenses, the budget
382	may include reserve accounts for capital expenditures and
383	deferred maintenance for which the association is responsible.
384	If reserve accounts are not established pursuant to paragraph
385	(d), funding of such reserves shall be limited to the extent
386	that the governing documents do not limit increases in
387	assessments, including reserves. If the budget of the
388	association includes reserve accounts established pursuant to
389	paragraph (d), such reserves shall be determined, maintained,
390	and waived in the manner provided in this subsection. Once an
391	association provides for reserve accounts pursuant to paragraph
392	(d) in the budget, the association shall thereafter determine,
393	maintain, and waive reserves in compliance with this subsection.
394	The provisions of this section do not preclude the termination
395	of a reserve account established pursuant to this paragraph upon
396	approval of a majority of the voting interests of the
397	association. Upon such approval, the terminating reserve account
398	shall be removed from the budget.
399	(c)1.  If the budget of the association does not provide
400	for reserve accounts pursuant to paragraph (d) governed by this
401	subsection and the association is responsible for the repair and
402	maintenance of capital improvements that may result in a special
403	assessment if reserves are not provided, each financial report
404	for the preceding fiscal year required by subsection (7) shall
405	contain the following statement in conspicuous type: THE BUDGET
406	OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
407	CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN
408	SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE
409	ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
410	FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A
411	MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY
412	VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
413	2.  If the budget of the association does provide for
414	funding accounts for deferred expenditures, including, but not
415	limited to, funds for capital expenditures and deferred
416	maintenance, but such accounts are not created or established
417	pursuant to paragraph (d), each financial report for the
418	preceding fiscal year required under subsection (7) must also
419	contain the following statement in conspicuous type: THE BUDGET
420	OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED
421	EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
422	DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
423	OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
424	PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
425	FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
426	RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
427	ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
428	(d)  An association shall be deemed to have provided for
429	reserve accounts if when reserve accounts have been initially
430	established by the developer or if when the membership of the
431	association affirmatively elects to provide for reserves. If
432	reserve accounts are not initially provided for by the
433	developer, the membership of the association may elect to do so
434	upon the affirmative approval of not less than a majority of the
435	total voting interests of the association. Such approval may be
436	obtained attained by vote of the members at a duly called
437	meeting of the membership or by the upon a written consent of
438	executed by not less than a majority of the total voting
439	interests in the community. The approval action of the
440	membership shall state that reserve accounts shall be provided
441	for in the budget and shall designate the components for which
442	the reserve accounts are to be established. Upon approval by the
443	membership, the board of directors shall include provide for the
444	required reserve accounts for inclusion in the budget in the
445	next fiscal year following the approval and in each year
446	thereafter. Once established as provided in this subsection, the
447	reserve accounts shall be funded or maintained or shall have
448	their funding waived in the manner provided in paragraph (f).
449	(f)  After one or more Once a reserve account or reserve
450	accounts are established, the membership of the association,
451	upon a majority vote at a meeting at which a quorum is present,
452	may provide for no reserves or less reserves than required by
453	this section. If a meeting of the unit owners has been called to
454	determine whether to waive or reduce the funding of reserves and
455	no such result is achieved or a quorum is not present, the
456	reserves as included in the budget shall go into effect. After
457	the turnover, the developer may vote its voting interest to
458	waive or reduce the funding of reserves. Any vote taken pursuant
459	to this subsection to waive or reduce reserves is shall be
460	applicable only to one budget year.
461	(g)  Funding formulas for reserves authorized by this
462	section shall be based on either a separate analysis of each of
463	the required assets or a pooled analysis of two or more of the
464	required assets.
465	1.  If the association maintains separate reserve accounts
466	for each of the required assets, the amount of the contribution
467	to each reserve account is shall be the sum of the following two
468	calculations:
469	a.  The total amount necessary, if any, to bring a negative
470	component balance to zero.
471	b.  The total estimated deferred maintenance expense or
472	estimated replacement cost of the reserve component less the
473	estimated balance of the reserve component as of the beginning
474	of the period for which the budget will be in effect. The
475	remainder, if greater than zero, shall be divided by the
476	estimated remaining useful life of the component.
477
478	The formula may be adjusted each year for changes in estimates
479	and deferred maintenance performed during the year and may
480	include factors such as inflation and earnings on invested
481	funds.
482	2.  If the association maintains a pooled account of two or
483	more of the required reserve assets, the amount of the
484	contribution to the pooled reserve account as disclosed on the
485	proposed budget may shall not be less than that required to
486	ensure that the balance on hand at the beginning of the period
487	for which the budget will go into effect plus the projected
488	annual cash inflows over the remaining estimated useful life of
489	all of the assets that make up the reserve pool are equal to or
490	greater than the projected annual cash outflows over the
491	remaining estimated useful lives of all of the assets that make
492	up the reserve pool, based on the current reserve analysis. The
493	projected annual cash inflows may include estimated earnings
494	from investment of principal and accounts receivable minus the
495	allowance for doubtful accounts. The reserve funding formula may
496	shall not include any type of balloon payments.
497	(12)  COMPENSATION PROHIBITED.--A director, officer, or
498	committee member of the association may not receive directly or
499	indirectly any salary or compensation from the association for
500	the performance of duties as a director, officer, or committee
501	member and may not in any other way benefit financially from
502	service to the association. This subsection does not preclude:
503	(a)  Participation by such person in a financial benefit
504	accruing to all or a significant number of members as a result
505	of actions lawfully taken by the board or a committee of which
506	he or she is a member, including, but not limited to, routine
507	maintenance, repair, or replacement of community assets.
508	(b)  Reimbursement for out-of-pocket expenses incurred by
509	such person on behalf of the association, subject to approval in
510	accordance with procedures established by the association's
511	governing documents or, in the absence of such procedures, in
512	accordance with an approval process established by the board.
513	(c)  Any recovery of insurance proceeds derived from a
514	policy of insurance maintained by the association for the
515	benefit of its members.
516	(d)  Any fee or compensation authorized in the governing
517	documents.
518	(e)  Any fee or compensation authorized in advance by a
519	vote of a majority of the voting interests voting in person or
520	by proxy at a meeting of the members.
521	Section 3.  Subsection (2) of section 720.305, Florida
522	Statutes, is amended to read:
523	720.305  Obligations of members; remedies at law or in
524	equity; levy of fines and suspension of use rights.--
525	(2)  If the governing documents so provide, an association
526	may suspend, for a reasonable period of time, the rights of a
527	member or a member's tenants, guests, or invitees, or both, to
528	use common areas and facilities and may levy reasonable fines of
529	up to, not to exceed $100 per violation, against any member or
530	any tenant, guest, or invitee. A fine may be levied on the basis
531	of each day of a continuing violation, with a single notice and
532	opportunity for hearing, except that no such fine may shall
533	exceed $1,000 in the aggregate unless otherwise provided in the
534	governing documents. A fine of less than $1,000 may shall not
535	become a lien against a parcel. In any action to recover a fine,
536	the prevailing party is entitled to collect its reasonable
537	attorney's fees and costs from the nonprevailing party as
538	determined by the court.
539	(a)  A fine or suspension may not be imposed without notice
540	of at least 14 days' notice days to the person sought to be
541	fined or suspended and an opportunity for a hearing before a
542	committee of at least three members appointed by the board who
543	are not officers, directors, or employees of the association, or
544	the spouse, parent, child, brother, or sister of an officer,
545	director, or employee. If the committee, by majority vote, does
546	not approve a proposed fine or suspension, it may not be
547	imposed.
548	(b)  The requirements of this subsection do not apply to
549	the imposition of suspensions or fines upon any member because
550	of the failure of the member to pay assessments or other charges
551	when due if such action is authorized by the governing
552	documents.
553	(c)  Suspension of common-area-use rights do shall not
554	impair the right of an owner or tenant of a parcel to have
555	vehicular and pedestrian ingress to and egress from the parcel,
556	including, but not limited to, the right to park.
557	Section 4.  Subsections (8) and (9) of section 720.306,
558	Florida Statutes, are amended to read:
559	720.306  Meetings of members; voting and election
560	procedures; amendments.--
561	(8)  PROXY VOTING.--The members have the right, unless
562	otherwise provided in this subsection or in the governing
563	documents, to vote in person or by proxy.
564	(a)  To be valid, a proxy must be dated, must state the
565	date, time, and place of the meeting for which it was given, and
566	must be signed by the authorized person who executed the proxy.
567	A proxy is effective only for the specific meeting for which it
568	was originally given, as the meeting may lawfully be adjourned
569	and reconvened from time to time, and automatically expires 90
570	days after the date of the meeting for which it was originally
571	given. A proxy is revocable at any time at the pleasure of the
572	person who executes it. If the proxy form expressly so provides,
573	any proxy holder may appoint, in writing, a substitute to act in
574	his or her place.
575	(b)  If the governing documents permit voting by secret
576	ballot by members who are not in attendance at a meeting of the
577	members for the election of directors, such ballots shall be
578	placed in an inner envelope with no identifying markings and
579	mailed or delivered to the association in an outer envelope
580	bearing identifying information reflecting the name of the
581	member, the lot or parcel for which the vote is being cast, and
582	the signature of the lot or parcel owner casting that ballot.
583	After the eligibility of the member to vote and confirmation
584	that no other ballot has been submitted for that lot or parcel,
585	the inner envelope shall be removed from the outer envelope
586	bearing the identification information, placed with the ballots
587	which were personally cast, and opened when the ballots are
588	counted. If more than one ballot is submitted for a lot or
589	parcel, the ballots for that lot or parcel shall be
590	disqualified. Any vote by ballot received after the closing of
591	the balloting may not be considered.
592	(9)  ELECTIONS; BOARD MEMBER CERTIFICATION.--
593	(a)  Elections of directors must be conducted in accordance
594	with the procedures set forth in the governing documents of the
595	association. All members of the association are shall be
596	eligible to serve on the board of directors, and a member may
597	nominate himself or herself as a candidate for the board at a
598	meeting where the election is to be held or, if the election
599	process allows voting by absentee ballot, in advance of the
600	balloting. Except as otherwise provided in the governing
601	documents, boards of directors must be elected by a plurality of
602	the votes cast by eligible voters. Any election dispute between
603	a member and an association must be submitted to mandatory
604	binding arbitration with the division. Such proceedings shall be
605	conducted in the manner provided by s. 718.1255 and the
606	procedural rules adopted by the division.
607	(b)  Within 30 days after being elected to the board of
608	directors, a new director shall certify in writing to the
609	secretary of the association that he or she has read the
610	association's declarations of covenants and restrictions,
611	articles of incorporation, bylaws, and current written policies
612	and that he or she will work to uphold each to the best of his
613	or her ability and will faithfully discharge his or her
614	fiduciary responsibility to the association's members. Failure
615	to timely file such statement shall automatically disqualify the
616	director from service on the association's board of directors.
617	The secretary shall cause the association to retain a director's
618	certification for inspection by the members for 5 years after a
619	director's election. Failure to have such certification on file
620	does not affect the validity of any appropriate action.
621	Section 5.  Paragraph (a) of subsection (1) of section
622	720.401, Florida Statutes, is amended to read:
623	720.401  Prospective purchasers subject to association
624	membership requirement; disclosure required; covenants;
625	assessments; contract cancellation.--
626	(1)(a)  A prospective parcel owner in a community must be
627	presented a disclosure summary before executing the contract for
628	sale. The disclosure summary must be in a form substantially
629	similar to the following form:
630
631	DISCLOSURE SUMMARY
632	FOR
633	(NAME OF COMMUNITY)
634
635	1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
636	BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
637	2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
638	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
639	COMMUNITY.
640	3.  YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
641	ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
642	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL
643	ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
644	ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
645	IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
646	4.  YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
647	RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
648	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
649	5.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
650	LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION MAY COULD RESULT
651	IN A LIEN ON YOUR PROPERTY.
652	6.  THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
653	FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
654	OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
655	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
656	7.  IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE
657	DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
658	RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
659	MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
660	8.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
661	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
662	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
663	DOCUMENTS BEFORE PURCHASING PROPERTY.
664	9.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
665	CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
666	PROPERTY IS LOCATED, OR, IF ARE NOT RECORDED, AND CAN BE
667	OBTAINED FROM THE DEVELOPER.
668	10.  THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES
669	OR FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR THE
670	PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT
671	INFRASTRUCTURE OR OTHER IMPROVEMENTS.
672	11.  YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS
673	OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE
674	UP TO THE TIME OF TRANSFER OF TITLE.
675
676	DATE:     PURCHASER:
677	PURCHASER:
678
679	The disclosure must be supplied by the developer, or by the
680	parcel owner if the sale is by an owner that is not the
681	developer. Any contract or agreement for sale shall refer to and
682	incorporate the disclosure summary and shall include, in
683	prominent language, a statement that the potential buyer should
684	not execute the contract or agreement until he or she has they
685	have received and read the disclosure summary required by this
686	section.
687	Section 6.  Effective July 1, 2010, paragraph (d) of
688	subsection (1) of section 34.01, Florida Statutes, is amended to
689	read:
690	34.01  Jurisdiction of county court.--
691	(1)  County courts shall have original jurisdiction:
692	(d)  Of disputes occurring in the homeowners' associations
693	as described in part IV of chapter 720 s. 720.311(2)(a), which
694	shall be concurrent with jurisdiction of the circuit courts.
695	Section 7.  Effective July 1, 2010, subsection (2) of
696	section 720.302, Florida Statutes, is amended to read:
697	720.302  Purposes, scope, and application.--
698	(2)  The Legislature recognizes that it is not in the best
699	interest of homeowners' associations or the individual
700	association members thereof to create or impose a bureau or
701	other agency of state government to regulate the affairs of
702	homeowners' associations. However, in accordance with part IV of
703	this chapter s. 720.311, the Legislature finds that homeowners'
704	associations and their individual members will benefit from an
705	expedited alternative process for resolution of election and
706	recall disputes and presuit mediation of other disputes
707	involving covenant enforcement in homeowner's associations and
708	deed-restricted communities using the procedures provided in
709	part IV of and authorizes the department to hear, administer,
710	and determine these disputes as more fully set forth in this
711	chapter. Further, the Legislature recognizes that certain
712	contract rights have been created for the benefit of homeowners'
713	associations and members thereof as well as deed-restricted
714	communities before the effective date of this act and that part
715	IV of this chapter is ss. 720.301-720.407 are not intended to
716	impair such contract rights, including, but not limited to, the
717	rights of the developer to complete the community as initially
718	contemplated.
719	Section 8.  Effective July 1, 2010, section 720.311,
720	Florida Statutes, is repealed.
721	Section 9.  Effective July 1, 2010, part IV of chapter 720,
722	Florida Statutes, to be entitled "Dispute Resolution,"
723	consisting of sections 720.501, 720.502, 720.503, 720.504,
724	720.505, 720.506, 720.507, 720.508, 720.509, and 720.510, is
725	created to read:
726	720.501  Short title.--This part may be cited as the "Home
727	Court Advantage Dispute Resolution Act."
728	720.502  Legislative findings.--The Legislature finds that
729	alternative dispute resolution has made progress in reducing
730	court dockets and trials and in offering a more efficient, cost-
731	effective option to litigation.
732	720.503  Applicability of this part.--
733	(1)  Unless otherwise provided in this part, before a
734	dispute described in this part between a homeowners' association
735	and a parcel owner or owners, or a dispute between parcel owners
736	within the same homeowners' association, may be filed in court,
737	the dispute is subject to presuit mediation pursuant to s.
738	720.505 or presuit arbitration pursuant to s. 720.507, at the
739	option of the aggrieved party who initiates the first formal
740	action of alternative dispute resolution under this part. The
741	parties may mutually agree to participate in both presuit
742	mediation and presuit arbitration prior to suit being filed by
743	either party.
744	(2)  Unless otherwise provided in this part, the mediation
745	and arbitration provisions of this part are limited to disputes
746	between an association and a parcel owner or owners or between
747	parcel owners regarding the use of or changes to the parcel or
748	the common areas under the governing documents and other
749	disputes involving violations of the recorded declaration of
750	covenants or other governing documents, disputes arising
751	concerning enforcement of the governing documents or any
752	amendments thereto, and disputes involving access to the
753	official records of the association. A dispute concerning title
754	to any parcel or common area, interpretation or enforcement of
755	any warranty, the levy of a fee or assessment, the collection of
756	an assessment levied against a party, the eviction or other
757	removal of a tenant from a parcel, alleged breaches of fiduciary
758	duty by one or more directors, or any action to collect mortgage
759	indebtedness or to foreclosure a mortgage shall not be subject
760	to the provisions of this part.
761	(3)  All disputes arising after the effective date of this
762	part involving the election of the board of directors for an
763	association or the recall of any member of the board or officer
764	of the association shall not be eligible for presuit mediation
765	under s. 720.505, but shall be subject to the provisions
766	concerning presuit arbitration under s. 720.507.
767	(4)  In any dispute subject to presuit mediation or presuit
768	arbitration under this part for which emergency relief is
769	required, a motion for temporary injunctive relief may be filed
770	with the court without first complying with the presuit
771	mediation or presuit arbitration requirements of this part.
772	After any issues regarding emergency or temporary relief are
773	resolved, the court may refer the parties to a mediation program
774	administered by the courts or require mediation or arbitration
775	under this part.
776	(5)  The mailing of a statutory notice of presuit mediation
777	or presuit arbitration as provided in this part shall toll the
778	applicable statute of limitations during the pendency of the
779	mediation or arbitration and for a period of 30 days following
780	the conclusion of either proceeding. The 30-day period shall
781	start upon the filing of the mediator's notice of impasse or the
782	arbitrator's written arbitration award. If the parties mutually
783	agree to participate in both presuit mediation and presuit
784	arbitration under this part, the tolling of the applicable
785	statute of limitations for each such alternative dispute
786	resolution proceeding shall be consecutive.
787	720.504  Notice of dispute.--Prior to giving the statutory
788	notice to proceed under presuit medication or presuit
789	arbitration under this part, the aggrieved association or parcel
790	owner shall first provide written notice of the dispute to the
791	responding party in the manner provided by this section.
792	(1)  The notice of dispute shall be delivered to the
793	responding party by certified mail, return receipt requested, or
794	the notice of dispute may be hand delivered, and the person
795	making delivery shall file with their notice of mediation either
796	the proof of receipt of mailing or an affidavit stating the date
797	and time of the delivery of the notice of dispute. If the notice
798	is delivered by certified mail, return receipt requested, and
799	the responding party fails or refuses to accept delivery, notice
800	shall be considered properly delivered for purposes of this
801	section on the date of the first attempted delivery.
802	(2)  The notice of dispute shall state with specificity the
803	nature of the dispute, including the date, time, and location of
804	each event that is the subject of the dispute and the action
805	requested to resolve the dispute. The notice shall also include
806	the text of any provision in the governing documents, including
807	the rules and regulations, of the association which form the
808	basis of the dispute.
809	(3)  Unless the parties otherwise agree in writing to a
810	longer time period, the party receiving the notice of dispute
811	shall have 10 days following the date of receipt of notice to
812	resolve the dispute. If the alleged dispute has not been
813	resolved within the 10-day period, the aggrieved party may
814	proceed under this part at any time thereafter within the
815	applicable statute of limitations.
816	(4)  A copy of the notice and the text of the provision in
817	the governing documents, or the rules and regulations, of the
818	association which are the basis of the dispute, along with proof
819	of service of the notice of dispute and a copy of any written
820	responses received from the responding party, shall be included
821	as an exhibit to any demand for mediation or arbitration under
822	this part.
823	720.505  Presuit mediation.--
824	(1)  Disputes between an association and a parcel owner or
825	owners and between parcel owners must be submitted to presuit
826	mediation before the dispute may be filed in court; or, at the
827	election of the party initiating the presuit procedures, such
828	dispute may be submitted to presuit arbitration pursuant to s.
829	720.507 before the dispute may be filed in court. An aggrieved
830	party who elects to use the presuit mediation procedure under
831	this section shall serve on the responding party a written
832	notice of presuit mediation in substantially the following form:
833
834	STATUTORY NOTICE OF PRESUIT MEDIATION
835
836	THE ALLEGED AGGRIEVED PARTY, ____________________,
837	HEREBY DEMANDS THAT ____________________, AS THE
838	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
839	MEDIATION IN CONNECTION WITH THE FOLLOWING DISPUTE(S)
840	WITH YOU, WHICH BY STATUTE ARE OF A TYPE THAT ARE
841	SUBJECT TO PRESUIT MEDIATION:
842
843	ATTACHED IS A COPY OF THE PRIOR NOTICE OF VIOLATION
844	WHICH DETAILS THE SPECIFIC NATURE OF THE DISPUTE(S) TO
845	BE MEDIATED AND THE AUTHORITY SUPPORTING A FINDING OF
846	A VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
847	LIMITED TO, THE APPLICABLE PROVISIONS OF THE GOVERNING
848	DOCUMENTS OF THE ASSOCIATION BELIEVED TO APPLY TO THE
849	DISPUTE BETWEEN THE PARTIES, AND A COPY OF THE NOTICE
850	YOU RECEIVED OR REFUSED AND COPIES OF ANY WRITTEN
851	RESPONSE(S) RECEIVED FROM YOU ABOUT THIS DISPUTE.
852
853	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
854	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
855	MEDIATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
856	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
857	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
858	MEDIATION WITH A NEUTRAL THIRD-PARTY MEDIATOR IN ORDER
859	TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
860	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
861	PARTICIPATE IN THIS PROCESS. UNLESS YOU RESPOND TO
862	THIS NOTICE BY FILING WITH THE AGGRIEVED PARTY A
863	NOTICE OF OPTING OUT AND DEMAND FOR ARBITRATION UNDER
864	S. 720.506, FLORIDA STATUTES, YOUR FAILURE TO
865	PARTICIPATE IN THE MEDIATION PROCESS MAY RESULT IN A
866	LAWSUIT BEING FILED IN COURT AGAINST YOU WITHOUT
867	FURTHER NOTICE.
868
869	THE PROCESS OF MEDIATION INVOLVES A SUPERVISED
870	NEGOTIATION PROCESS IN WHICH A TRAINED, NEUTRAL THIRD-
871	PARTY MEDIATOR MEETS WITH BOTH PARTIES AND ASSISTS
872	THEM IN EXPLORING POSSIBLE OPPORTUNITIES FOR RESOLVING
873	PART OR ALL OF THE DISPUTE. BY AGREEING TO PARTICIPATE
874	IN PRESUIT MEDIATION, YOU ARE NOT BOUND IN ANY WAY TO
875	CHANGE YOUR POSITION. FURTHERMORE, THE MEDIATOR HAS NO
876	AUTHORITY TO MAKE ANY DECISIONS IN THIS MATTER OR TO
877	DETERMINE WHO IS RIGHT OR WRONG AND MERELY ACTS AS A
878	FACILITATOR TO ENSURE THAT EACH PARTY UNDERSTANDS THE
879	POSITION OF THE OTHER PARTY AND THAT ALL OPTIONS FOR
880	REASONABLE SETTLEMENT ARE FULLY EXPLORED.
881
882	IF AN AGREEMENT IS REACHED, IT SHALL BE REDUCED TO
883	WRITING AND BECOME A BINDING AND ENFORCEABLE CONTRACT
884	BETWEEN THE PARTIES. A RESOLUTION OF ONE OR MORE
885	DISPUTES IN THIS FASHION AVOIDS THE NEED TO LITIGATE
886	THESE ISSUES IN COURT. THE FAILURE TO REACH AN
887	AGREEMENT, OR THE FAILURE OF A PARTY TO PARTICIPATE IN
888	THE PROCESS, RESULTS IN THE MEDIATOR DECLARING AN
889	IMPASSE IN THE MEDIATION, AFTER WHICH THE AGGRIEVED
890	PARTY MAY PROCEED TO FILE A LAWSUIT ON ALL
891	OUTSTANDING, UNSETTLED DISPUTES. IF YOU HAVE FAILED OR
892	REFUSED TO PARTICIPATE IN THE ENTIRE MEDIATION
893	PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER
894	ATTORNEY'S FEES IF YOU PREVAIL IN A SUBSEQUENT COURT
895	PROCEEDING INVOLVING THE SAME DISPUTE.
896
897	THE AGGRIEVED PARTY HAS SELECTED FROM A LIST OF
898	ELIGIBLE, QUALIFIED MEDIATORS AT LEAST FIVE CERTIFIED
899	MEDIATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
900	NEUTRAL AND QUALIFIED TO MEDIATE THE DISPUTE. YOU HAVE
901	THE RIGHT TO SELECT ANY ONE OF THESE MEDIATORS. THE
902	FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR MORE
903	OF THE LISTED MEDIATORS DOES NOT MEAN THAT THE
904	MEDIATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
905	FACILITATOR. THE NAMES OF THE MEDIATORS THAT THE
906	AGGRIEVED PARTY HEREBY SUBMITS TO YOU FROM WHOM YOU
907	MAY CHOOSE ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE
908	NUMBERS, AND HOURLY RATES ARE AS FOLLOWS:
909
910	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
911	HOURLY RATES OF THE MEDIATORS. OTHER PERTINENT
912	INFORMATION ABOUT THE BACKGROUND OF THE MEDIATORS MAY
913	BE INCLUDED AS AN ATTACHMENT.)
914
915	YOU MAY CONTACT THE OFFICES OF THESE MEDIATORS TO
916	CONFIRM THAT EACH OF THE ABOVE-LISTED MEDIATORS WILL
917	BE NEUTRAL AND WILL NOT SHOW ANY FAVORITISM TOWARD
918	EITHER PARTY. UNLESS OTHERWISE AGREED TO BY THE
919	PARTIES, PART IV OF CHAPTER 720, FLORIDA STATUTES,
920	REQUIRES THAT THE PARTIES SHARE THE COSTS OF PRESUIT
921	MEDIATION EQUALLY, INCLUDING THE FEE CHARGED BY THE
922	MEDIATOR. AN AVERAGE MEDIATION MAY REQUIRE 3 TO 4
923	HOURS OF THE MEDIATOR'S TIME, INCLUDING SOME
924	PREPARATION TIME, AND THE PARTIES WOULD NEED TO
925	EQUALLY SHARE THE MEDIATOR'S FEES AS WELL AS BE
926	RESPONSIBLE FOR ALL OF THEIR OWN ATTORNEY'S FEES IF
927	THEY CHOOSE TO EMPLOY AN ATTORNEY IN CONNECTION WITH
928	THE MEDIATION. HOWEVER, USE OF AN ATTORNEY IS NOT
929	REQUIRED AND IS AT THE OPTION OF EACH PARTY. THE
930	MEDIATORS MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR
931	ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY
932	HEREBY AGREES TO PAY OR PREPAY ONE-HALF OF THE
933	SELECTED MEDIATOR'S ESTIMATED FEES AND TO FORWARD THIS
934	AMOUNT OR SUCH OTHER REASONABLE ADVANCE DEPOSITS AS
935	THE MEDIATOR REQUIRES FOR THIS PURPOSE UPON THE
936	SELECTION OF THE MEDIATOR. ANY FUNDS DEPOSITED WILL BE
937	RETURNED TO YOU IF THESE FUNDS ARE IN EXCESS OF YOUR
938	SHARE OF THE MEDIATOR FEES INCURRED.
939
940	TO BEGIN YOUR PARTICIPATION IN PRESUIT MEDIATION TO
941	TRY TO RESOLVE THE DISPUTE WITH YOU AND AVOID FURTHER
942	LEGAL ACTION, PLEASE SIGN BELOW AND CLEARLY INDICATE
943	WHICH MEDIATOR IS ACCEPTABLE TO YOU FROM THE FIVE
944	MEDIATORS LISTED BY THE AGGRIEVED PARTY ABOVE.
945
946	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
947	OF PRESUIT MEDIATION WITHIN 20 DAYS. IN YOUR RESPONSE
948	YOU MUST PROVIDE A LISTING OF AT LEAST THREE DATES AND
949	TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE
950	MEDIATION THAT ARE WITHIN 90 DAYS AFTER THE POSTMARKED
951	DATE OF THE MAILING OF THIS NOTICE OF PRESUIT
952	MEDIATION OR WITHIN 90 DAYS AFTER THE DATE YOU WERE
953	SERVED WITH A COPY OF THIS NOTICE. THE AGGRIEVED PARTY
954	WILL THEN ASK THE MEDIATOR TO SCHEDULE A MUTUALLY
955	CONVENIENT TIME AND PLACE FOR THE MEDIATION CONFERENCE
956	TO BE HELD. IF YOU DO NOT PROVIDE A LIST OF AVAILABLE
957	DATES AND TIMES, THE MEDIATOR IS AUTHORIZED TO
958	SCHEDULE A MEDIATION CONFERENCE WITHOUT TAKING YOUR
959	SCHEDULE AND CONVENIENCE INTO CONSIDERATION. IN NO
960	EVENT SHALL THE MEDIATION CONFERENCE BE LATER THAN 90
961	DAYS AFTER THE NOTICE OF PRESUIT MEDIATION WAS FIRST
962	SERVED UNLESS ALL PARTIES MUTUALLY AGREE OTHERWISE. IN
963	THE EVENT THAT YOU FAIL TO RESPOND WITHIN 20 DAYS
964	AFTER THE DATE OF THIS NOTICE, FAIL TO PROVIDE THE
965	MEDIATOR WITH DATES AND TIMES IN WHICH YOU ARE
966	AVAILABLE FOR THE MEDIATION CONFERENCE, FAIL TO AGREE
967	TO AT LEAST ONE OF THE MEDIATORS THAT THE AGGRIEVED
968	PARTY HAS LISTED, FAIL TO PAY OR PREPAY TO THE
969	MEDIATOR ONE-HALF OF THE COSTS INVOLVED, OR FAIL TO
970	APPEAR AND PARTICIPATE AT THE SCHEDULED MEDIATION, THE
971	AGGRIEVED PARTY WILL BE AUTHORIZED TO PROCEED WITH THE
972	FILING OF A LAWSUIT AGAINST YOU WITHOUT FURTHER
973	NOTICE. IN ANY SUBSEQUENT COURT ACTION, THE AGGRIEVED
974	PARTY MAY SEEK AN AWARD OF REASONABLE ATTORNEY'S FEES
975	AND COSTS INCURRED IN ATTEMPTING TO OBTAIN MEDIATION.
976
977	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
978	LAW, YOUR RESPONSE MUST BE MAILED BY CERTIFIED, FIRST-
979	CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE AGGRIEVED
980	PARTY LISTED ABOVE AT THE ADDRESS SHOWN ON THIS NOTICE
981	AND POSTMARKED NO MORE THAN 20 DAYS AFTER THE DATE OF
982	THE POSTMARKED DATE FOR THIS NOTICE OR WITHIN 20 DAYS
983	AFTER THE DATE UPON WHICH YOU WERE SERVED WITH A COPY
984	OF THIS NOTICE.
985
986	________________________
987	SIGNATURE OF AGGRIEVED PARTY
988
989	______________________
990	PRINTED NAME OF AGGRIEVED PARTY
991
992	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
993	ACCEPTANCE OF THE AGREEMENT TO MEDIATE.
994
995	AGREEMENT TO MEDIATE
996
997	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
998	PRESUIT MEDIATION AND AGREES TO ATTEND A MEDIATION
999	CONDUCTED BY THE FOLLOWING MEDIATOR(S) LISTED BELOW AS
1000	ACCEPTABLE TO MEDIATE THIS DISPUTE:
1001
1002	(LIST ONE ACCEPTABLE MEDIATOR FROM THOSE LISTED BY THE
1003	AGGRIEVED PARTY.)
1004
1005	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE CAN
1006	ATTEND AND PARTICIPATE IN THE PRESUIT MEDIATION AT THE
1007	FOLLOWING DATES AND TIMES:
1008
1009	(LIST AT LEAST THREE AVAILABLE DATES AND TIMES WITHIN
1010	THE 90-DAY TIME LIMIT DESCRIBED ABOVE.)
1011
1012	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
1013	MEDIATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
1014	AS THE MEDIATOR MAY REQUIRE FOR THIS PURPOSE.
1015
1016	______________________________
1017	SIGNATURE OF RESPONDING PARTY #1
1018	______________________________
1019	TELEPHONE CONTACT INFORMATION
1020
1021	______________________________
1022	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
1023	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
1024	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
1025	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
1026	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
1027
1028	(2)(a)  Service of the notice of presuit mediation shall be
1029	effected either by personal service, as provided in chapter 48,
1030	or by certified mail, return receipt requested, in a letter in
1031	substantial conformity with the form provided in subsection (1),
1032	with an additional copy being sent by regular first-class mail,
1033	to the address of the responding party as it last appears on the
1034	books and records of the association or, if not available, then
1035	as it last appears in the official records of the county
1036	property appraiser where the parcel in dispute is located. The
1037	responding party has either 20 days after the postmarked date of
1038	the mailing of the statutory notice or 20 days after the date
1039	the responding party is served with a copy of the notice to
1040	serve a written response to the aggrieved party. The response
1041	shall be served by certified mail, return receipt requested,
1042	with an additional copy being sent by regular first-class mail,
1043	to the address shown on the statutory notice. The date of the
1044	postmark on the envelope for the response shall constitute the
1045	date that the response is served. Once the parties have agreed
1046	on a mediator, the mediator may schedule or reschedule the
1047	mediation for a date and time mutually convenient to the parties
1048	within 90 days after the date of service of the statutory
1049	notice. After such 90-day period, the mediator may reschedule
1050	the mediation only upon the mutual written agreement of all the
1051	parties.
1052	(b)  The parties shall share the costs of presuit mediation
1053	equally, including the fee charged by the mediator, if any,
1054	unless the parties agree otherwise, and the mediator may require
1055	advance payment of his or her reasonable fees and costs. Each
1056	party shall be responsible for that party's own attorney's fees
1057	if a party chooses to be represented by an attorney at the
1058	mediation.
1059	(c)  The party responding to the aggrieved party may
1060	provide a notice of opting out under s. 720.506 and demand
1061	arbitration or may sign the agreement to mediate included in the
1062	notice of presuit mediation. A responding party signing the
1063	agreement to mediate must clearly indicate the name of the
1064	mediator who is acceptable from the five names provided by the
1065	aggrieved party and must provide a list of dates and times in
1066	which the responding party is available to participate in the
1067	mediation within 90 days after the date the responding party was
1068	served, either by process server or by certified mail, with the
1069	statutory notice of presuit mediation.
1070	(d)  The mediator who has been selected and agreed to
1071	mediate must schedule the mediation conference at a mutually
1072	convenient time and place within that 90-day period; but, if the
1073	responding party does not provide a list of available dates and
1074	times, the mediator is authorized to schedule a mediation
1075	conference without taking the responding party's schedule and
1076	convenience into consideration. Within 10 days after the
1077	designation of the mediator, the mediator shall coordinate with
1078	the parties and notify the parties in writing of the date, time,
1079	and place of the mediation conference.
1080	(e)  The mediation conference must be held on the scheduled
1081	date and may be rescheduled if a rescheduled date is approved by
1082	the mediator. However, in no event shall the mediation be held
1083	later than 90 days after the notice of presuit mediation was
1084	first served, unless all parties mutually agree in writing
1085	otherwise. If the presuit mediation is not completed within the
1086	required time limits, the mediator shall declare an impasse
1087	unless the mediation date is extended by mutual written
1088	agreement by all parties and approved by the mediator.
1089	(f)  If the responding party fails to respond within 30
1090	days after the date of service of the statutory notice of
1091	presuit mediation, fails to agree to at least one of the
1092	mediators listed by the aggrieved party in the notice, fails to
1093	pay or prepay to the mediator one-half of the costs of the
1094	mediator, or fails to appear and participate at the scheduled
1095	mediation, the aggrieved party shall be authorized to proceed
1096	with the filing of a lawsuit without further notice.
1097	(g)1.  The failure of any party to respond to the statutory
1098	notice of presuit mediation within 20 days, the failure to agree
1099	upon a mediator, the failure to provide a listing of dates and
1100	times in which the responding party is available to participate
1101	in the mediation within 90 days after the date the responding
1102	party was served with the statutory notice of presuit mediation,
1103	the failure to make payment of fees and costs within the time
1104	established by the mediator, or the failure to appear for a
1105	scheduled mediation session without the approval of the
1106	mediator, shall in each instance constitute a failure or refusal
1107	to participate in the mediation process and shall operate as an
1108	impasse in the presuit mediation by such party, entitling the
1109	other party to file a lawsuit in court and to seek an award of
1110	the costs and attorney's fees associated with the mediation.
1111	2.  Persons who fail or refuse to participate in the entire
1112	mediation process may not recover attorney's fees and costs in
1113	subsequent litigation relating to the same dispute between the
1114	same parties. If any presuit mediation session cannot be
1115	scheduled and conducted within 90 days after the offer to
1116	participate in mediation was filed, through no fault of either
1117	party, then an impasse shall be deemed to have occurred unless
1118	the parties mutually agree in writing to extend this deadline.
1119	In the event of such impasse, each party shall be responsible
1120	for its own costs and attorney's fees and one-half of any
1121	mediator fees and filing fees, and either party may file a
1122	lawsuit in court regarding the dispute.
1123	720.506  Opt-out of presuit mediation.--A party served with
1124	a notice of presuit mediation under s. 720.505 may opt out of
1125	presuit mediation and demand that the dispute proceed under
1126	nonbinding arbitration as follows:
1127	(1)  In lieu of a response to the notice of presuit
1128	mediation as required under s. 720.505, the responding party may
1129	serve upon the aggrieved party, in the same manner as the
1130	response to a notice for presuit mediation under s. 720.505, a
1131	notice of opting out of mediation and demand that the dispute
1132	instead proceed to presuit arbitration under s. 720.507.
1133	(2)  The aggrieved party shall be relieved from having to
1134	satisfy the requirements of s. 720.504 as a condition precedent
1135	to filing the demand for presuit arbitration.
1136	(3)  Except as otherwise provided in this part, the choice
1137	of which presuit alternative dispute resolution procedure is
1138	used shall be at the election of the aggrieved party who first
1139	initiated such proceeding after complying with the provisions of
1140	s. 720.504.
1141	720.507  Presuit arbitration.--
1142	(1)  Disputes between an association and a parcel owner or
1143	owners and disputes between parcel owners are subject to a
1144	demand for presuit arbitration pursuant to this section before
1145	the dispute may be filed in court. A party who elects to use the
1146	presuit arbitration procedure under this part shall serve on the
1147	responding party a written notice of presuit arbitration in
1148	substantially the following form:
1149
1150	STATUTORY NOTICE OF PRESUIT ARBITRATION
1151
1152	THE ALLEGED AGGRIEVED PARTY, ____________________,
1153	HEREBY DEMANDS THAT ____________________, AS THE
1154	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
1155	ARBITRATION IN CONNECTION WITH THE FOLLOWING
1156	DISPUTE(S) WITH YOU, WHICH BY STATUTE ARE OF A TYPE
1157	THAT ARE SUBJECT TO PRESUIT ARBITRATION:
1158
1159	(LIST SPECIFIC NATURE OF THE DISPUTE OR DISPUTES TO BE
1160	ARBITRATED AND THE AUTHORITY SUPPORTING A FINDING OF A
1161	VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
1162	LIMITED TO, ALL APPLICABLE PROVISIONS OF THE GOVERNING
1163	DOCUMENTS BELIEVED TO APPLY TO THE DISPUTE BETWEEN THE
1164	PARTIES.)
1165
1166	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
1167	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
1168	ARBITRATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
1169	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
1170	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
1171	ARBITRATION WITH A NEUTRAL THIRD-PARTY ARBITRATOR IN
1172	ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
1173	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
1174	PARTICIPATE IN THIS PROCESS. IF YOU FAIL TO
1175	PARTICIPATE IN THE ARBITRATION PROCESS, A LAWSUIT MAY
1176	BE BROUGHT AGAINST YOU IN COURT WITHOUT FURTHER
1177	WARNING.
1178
1179	THE PROCESS OF ARBITRATION INVOLVES A NEUTRAL THIRD
1180	PERSON WHO CONSIDERS THE LAW AND FACTS PRESENTED BY
1181	THE PARTIES AND RENDERS A WRITTEN DECISION CALLED AN
1182	"ARBITRATION AWARD." PURSUANT TO S. 720.507, FLORIDA
1183	STATUTES, THE ARBITRATION AWARD SHALL BE FINAL UNLESS
1184	A LAWSUIT IS FILED IN A COURT OF COMPETENT
1185	JURISDICTION FOR THE JUDICIAL CIRCUIT IN WHICH THE
1186	PARCEL(S) GOVERNED BY THE HOMEOWNERS' ASSOCIATION
1187	IS/ARE LOCATED WITHIN 30 DAYS AFTER THE DATE OF THE
1188	ARBITRATION AWARD.
1189
1190	IF A SETTLEMENT AGREEMENT IS REACHED BEFORE THE
1191	ARBITRATION AWARD, IT SHALL BE REDUCED TO WRITING AND
1192	BECOME A BINDING AND ENFORCEABLE CONTRACT OF THE
1193	PARTIES. A RESOLUTION OF ONE OR MORE DISPUTES IN THIS
1194	FASHION AVOIDS THE NEED TO ARBITRATE THESE ISSUES OR
1195	TO LITIGATE THESE ISSUES IN COURT AND SHALL BE THE
1196	SAME AS A SETTLEMENT AGREEMENT REACHED BETWEEN THE
1197	PARTIES UNDER S. 720.505, FLORIDA STATUTES. THE
1198	FAILURE OF A PARTY TO PARTICIPATE IN THE ARBITRATION
1199	PROCESS MAY RESULT IN THE ARBITRATOR ISSUING AN
1200	ARBITRATION AWARD BY DEFAULT IN THE ARBITRATION. IF
1201	YOU HAVE FAILED OR REFUSED TO PARTICIPATE IN THE
1202	ENTIRE ARBITRATION PROCESS, YOU WILL NOT BE ENTITLED
1203	TO RECOVER ATTORNEY'S FEES, EVEN IF YOU PREVAIL IN A
1204	SUBSEQUENT COURT PROCEEDING INVOLVING THE SAME DISPUTE
1205	BETWEEN THE SAME PARTIES.
1206
1207	THE AGGRIEVED PARTY HAS SELECTED AT LEAST FIVE
1208	ARBITRATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
1209	NEUTRAL AND QUALIFIED TO ARBITRATE THE DISPUTE. YOU
1210	HAVE THE RIGHT TO SELECT ANY ONE OF THE ARBITRATORS.
1211	THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR
1212	MORE OF THE LISTED ARBITRATORS DOES NOT MEAN THAT THE
1213	ARBITRATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
1214	ARBITRATOR. ANY ARBITRATOR WHO CANNOT ACT IN THIS
1215	CAPACITY IS REQUIRED ETHICALLY TO DECLINE TO ACCEPT
1216	ENGAGEMENT. THE NAMES OF THE FIVE ARBITRATORS THAT THE
1217	AGGRIEVED PARTY HAS CHOSEN FROM WHICH YOU MAY SELECT
1218	ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE NUMBERS,
1219	AND HOURLY RATES, ARE AS FOLLOWS:
1220
1221	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
1222	HOURLY RATES OF AT LEAST FIVE ARBITRATORS.
1223
1224	YOU MAY CONTACT THE OFFICES OF THESE ARBITRATORS TO
1225	CONFIRM THAT THE LISTED ARBITRATORS WILL BE NEUTRAL
1226	AND WILL NOT SHOW ANY FAVORITISM TOWARD EITHER PARTY.
1227
1228	UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART IV OF
1229	CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE
1230	PARTIES SHARE THE COSTS OF PRESUIT ARBITRATION
1231	EQUALLY, INCLUDING THE FEE CHARGED BY THE ARBITRATOR.
1232	THE PARTIES SHALL BE RESPONSIBLE FOR THEIR OWN
1233	ATTORNEY'S FEES IF THEY CHOOSE TO EMPLOY AN ATTORNEY
1234	IN CONNECTION WITH THE ARBITRATION. HOWEVER, USE OF AN
1235	ATTORNEY TO REPRESENT YOU FOR THE ARBITRATION IS NOT
1236	REQUIRED. THE ARBITRATOR SELECTED MAY REQUIRE THE
1237	ADVANCE PAYMENT OF SOME OR ALL OF THE ANTICIPATED
1238	FEES. THE AGGRIEVED PARTY HEREBY AGREES TO PAY OR
1239	PREPAY ONE-HALF OF THE SELECTED ARBITRATOR'S ESTIMATED
1240	FEES AND TO FORWARD THIS AMOUNT OR SUCH OTHER
1241	REASONABLE ADVANCE DEPOSITS AS THE ARBITRATOR WHO IS
1242	SELECTED REQUIRES FOR THIS PURPOSE. ANY FUNDS
1243	DEPOSITED WILL BE RETURNED TO YOU IF THESE FUNDS ARE
1244	IN EXCESS OF YOUR SHARE OF THE FEES INCURRED.
1245
1246	PLEASE SIGN THE AGREEMENT TO ARBITRATE BELOW AND
1247	CLEARLY INDICATE THE NAME OF THE ARBITRATOR WHO IS
1248	ACCEPTABLE TO YOU FROM THE NAMES LISTED BY THE
1249	AGGRIEVED PARTY.
1250
1251	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
1252	WITHIN 20 DAYS AFTER THE DATE THAT THE NOTICE OF
1253	PRESUIT ARBITRATION WAS EITHER PERSONALLY SERVED ON
1254	YOU OR 20 DAYS AFTER THE POSTMARKED DATE THAT THIS
1255	NOTICE OF PRESUIT ARBITRATION WAS SENT TO YOU BY
1256	CERTIFIED MAIL. YOU MUST ALSO PROVIDE A LIST OF AT
1257	LEAST THREE DATES AND TIMES IN WHICH YOU ARE AVAILABLE
1258	TO PARTICIPATE IN THE ARBITRATION THAT ARE WITHIN 90
1259	DAYS AFTER THE DATE YOU WERE PERSONALLY SERVED OR
1260	WITHIN 90 DAYS AFTER THE POSTMARKED DATE OF THE
1261	CERTIFIED MAILING OF THIS STATUTORY NOTICE OF PRESUIT
1262	ARBITRATION. A COPY OF THIS NOTICE AND YOUR RESPONSE
1263	WILL BE PROVIDED BY THE AGGRIEVED PARTY TO THE
1264	ARBITRATOR SELECTED, AND THE ARBITRATOR WILL SCHEDULE
1265	A MUTUALLY CONVENIENT TIME AND PLACE FOR THE
1266	ARBITRATION CONFERENCE TO BE HELD. IF YOU DO NOT
1267	PROVIDE A LIST OF AVAILABLE DATES AND TIMES, THE
1268	ARBITRATOR IS AUTHORIZED TO SCHEDULE AN ARBITRATION
1269	CONFERENCE WITHOUT TAKING YOUR SCHEDULE AND
1270	CONVENIENCE INTO CONSIDERATION. THE ARBITRATION
1271	CONFERENCE MUST BE HELD ON THE SCHEDULED DATE, OR ANY
1272	RESCHEDULED DATE APPROVED BY THE ARBITRATOR. IN NO
1273	EVENT SHALL THE ARBITRATION CONFERENCE BE LATER THAN
1274	90 DAYS AFTER NOTICE OF THE PRESUIT ARBITRATION WAS
1275	FIRST SERVED, UNLESS ALL PARTIES MUTUALLY AGREE IN
1276	WRITING OTHERWISE. IF THE ARBITRATION IS NOT COMPLETED
1277	WITHIN THE REQUIRED TIME LIMITS, THE ARBITRATOR SHALL
1278	ISSUE AN ARBITRATION AWARD, UNLESS THE HEARING IS
1279	EXTENDED BY MUTUAL WRITTEN AGREEMENT OF THE PARTIES
1280	AND APPROVED BY THE ARBITRATOR. IN THE EVENT THAT YOU
1281	FAIL TO RESPOND WITHIN 20 DAYS AFTER THE DATE YOU WERE
1282	SERVED WITH A COPY OF THIS NOTICE, FAIL TO PROVIDE THE
1283	ARBITRATOR WITH DATES AND TIMES IN WHICH YOU ARE
1284	AVAILABLE FOR THE ARBITRATION CONFERENCE, FAIL TO
1285	AGREE EITHER TO ONE OF THE ARBITRATORS THAT THE
1286	AGGRIEVED PARTY HAS NAMED, FAIL TO PAY OR PREPAY TO
1287	THE ARBITRATOR ONE-HALF OF THE COSTS INVOLVED AS
1288	REQUIRED, OR FAIL TO APPEAR AND PARTICIPATE AT THE
1289	SCHEDULED ARBITRATION CONFERENCE, THE AGGRIEVED PARTY
1290	MAY REQUEST THE ARBITRATOR TO ISSUE AN ARBITRATION
1291	AWARD. IN THE SUBSEQUENT COURT ACTION, THE AGGRIEVED
1292	PARTY SHALL BE ENTITLED TO RECOVER AN AWARD OF
1293	REASONABLE ATTORNEY'S FEES AND COSTS, INCLUDING ANY
1294	FEES PAID TO THE ARBITRATOR, INCURRED IN OBTAINING AN
1295	ARBITRATION AWARD PURSUANT TO S. 720.507, FLORIDA
1296	STATUTES.
1297
1298	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
1299	LAW, YOUR RESPONSE MUST BE POSTMARKED AND MAILED BY
1300	CERTIFIED, FIRST-CLASS MAIL, RETURN RECEIPT REQUESTED,
1301	TO THE ADDRESS SHOWN ON THIS NOTICE OF PRESUIT
1302	ARBITRATION.
1303
1304	_________________________
1305	SIGNATURE OF AGGRIEVED PARTY
1306
1307	______________________
1308	PRINTED NAME OF AGGRIEVED PARTY
1309
1310	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
1311	ACCEPTANCE OF THE AGREEMENT TO ARBITRATE.
1312
1313	AGREEMENT TO ARBITRATE
1314
1315	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
1316	PRESUIT ARBITRATION AND AGREES TO ATTEND AN
1317	ARBITRATION CONDUCTED BY THE FOLLOWING ARBITRATOR
1318	LISTED BELOW AS SOMEONE WHO WOULD BE ACCEPTABLE TO
1319	ARBITRATE THIS DISPUTE:
1320
1321	(IN YOUR RESPONSE, SELECT THE NAME OF ONE ARBITRATOR
1322	THAT IS ACCEPTABLE TO YOU FROM THOSE ARBITRATORS
1323	LISTED BY THE AGGRIEVED PARTY.)
1324
1325	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE IS
1326	AVAILABLE AND ABLE TO ATTEND AND PARTICIPATE IN THE
1327	PRESUIT ARBITRATION CONFERENCE AT THE FOLLOWING DATES
1328	AND TIMES:
1329
1330	(LIST ALL AVAILABLE DATES AND TIMES, OF WHICH THERE
1331	MUST BE AT LEAST THREE, WITHIN 90 DAYS AFTER THE DATE
1332	ON WHICH YOU WERE SERVED, EITHER BY PROCESS SERVER OR
1333	BY CERTIFIED MAIL, WITH THE NOTICE OF PRESUIT
1334	ARBITRATION.)
1335
1336	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
1337	ARBITRATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
1338	AS THE ARBITRATOR MAY REQUIRE FOR THIS PURPOSE.
1339
1340	______________________________
1341	SIGNATURE OF RESPONDING PARTY #1
1342	______________________________
1343	TELEPHONE CONTACT INFORMATION
1344
1345	______________________________
1346	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
1347	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
1348	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
1349	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
1350	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
1351
1352	(2)(a)  Service of the statutory notice of presuit
1353	arbitration shall be effected either by personal service, as
1354	provided in chapter 48, or by certified mail, return receipt
1355	requested, in a letter in substantial conformity with the form
1356	provided in subsection (1), with an additional copy being sent
1357	by regular first-class mail, to the address of the responding
1358	party as it last appears on the books and records of the
1359	association, or if not available, the last address as it appears
1360	on the official records of the county property appraiser for the
1361	county in which the property is situated that is subject to the
1362	association documents. The responding party has 20 days after
1363	the postmarked date of the certified mailing of the statutory
1364	notice of presuit arbitration or 20 days after the date the
1365	responding party is personally served with the statutory notice
1366	of presuit arbitration by to serve a written response to the
1367	aggrieved party. The response shall be served by certified mail,
1368	return receipt requested, with an additional copy being sent by
1369	regular first-class mail, to the address shown on the statutory
1370	notice of presuit arbitration. The postmarked date on the
1371	envelope of the response shall constitute the date the response
1372	was served.
1373	(b)  The parties shall share the costs of presuit
1374	arbitration equally, including the fee charged by the
1375	arbitrator, if any, unless the parties agree otherwise, and the
1376	arbitrator may require advance payment of his or her reasonable
1377	fees and costs. Each party shall be responsible for all of their
1378	own attorney's fees if a party chooses to be represented by an
1379	attorney for the arbitration proceedings.
1380	(c)1.  The party responding to the aggrieved party must
1381	sign the agreement to arbitrate included in the notice of
1382	presuit arbitration and clearly indicate the name of the
1383	arbitrator who is acceptable of those arbitrators listed by the
1384	aggrieved party. The responding party must provide a list of at
1385	least three dates and times in which the responding party is
1386	available to participate in the arbitration conference within 90
1387	days after the date the responding party was served with the
1388	statutory notice of presuit arbitration.
1389	2.  The arbitrator must schedule the arbitration conference
1390	at a mutually convenient time and place, but if the responding
1391	party does not provide a list of available dates and times, the
1392	arbitrator is authorized to schedule an arbitration conference
1393	without taking the responding party's schedule and convenience
1394	into consideration. Within 10 days after the designation of the
1395	arbitrator, the arbitrator shall notify the parties in writing
1396	of the date, time, and place of the arbitration conference.
1397	3.  The arbitration conference must be held on the
1398	scheduled date and may be rescheduled if approved by the
1399	arbitrator. However, in no event shall the arbitration hearing
1400	be later than 90 days after the notice of presuit arbitration
1401	was first served, unless all parties mutually agree in writing
1402	otherwise. If the arbitration hearing is not completed within
1403	the required time limits, the arbitrator may issue an
1404	arbitration award unless the time for the hearing is extended as
1405	provided herein. If the responding party fails to respond within
1406	20 days after the date of statutory notice of presuit
1407	arbitration, fails to agree to at least one of the arbitrators
1408	that have been listed by the aggrieved party in the presuit
1409	notice of arbitration, fails to pay or prepay to the arbitrator
1410	one-half of the costs involved, or fails to appear and
1411	participate at the scheduled arbitration, the aggrieved party is
1412	authorized to proceed with a request that the arbitrator issue
1413	an arbitration award.
1414	(d)1.  The failure of any party to respond to the statutory
1415	notice of presuit arbitration within 20 days, the failure to
1416	either select one of the five arbitrators listed by the
1417	aggrieved party, the failure to provide a listing of dates and
1418	times in which the responding party is available to participate
1419	in the arbitration conference within 90 days after the date of
1420	the responding party being served with the statutory notice of
1421	presuit arbitration, the failure to make payment of fees and
1422	costs as required within the time established by the arbitrator,
1423	or the failure to appear for an arbitration conference without
1424	the approval of the arbitrator, shall entitle the other party to
1425	request the arbitrator to enter an arbitration award, including
1426	an award of the reasonable costs and attorney's fees associated
1427	with the arbitration.
1428	2.  Persons who fail or refuse to participate in the entire
1429	arbitration process may not recover attorney's fees and costs in
1430	any subsequent litigation proceeding relating to the same
1431	dispute involving the same parties.
1432	(3)(a)  In an arbitration proceeding, the arbitrator may
1433	not consider any unsuccessful mediation of the dispute.
1434	(b)  An arbitrator in a proceeding initiated pursuant to
1435	the provisions of this part may shorten the time for discovery
1436	or otherwise limit discovery in a manner consistent with the
1437	policy goals of this part to reduce the time and expense of
1438	litigating homeowners' association disputes initiated pursuant
1439	to this chapter and promoting an expeditious alternative dispute
1440	resolution procedure for parties to such actions.
1441	(4)  At the request of any party to the arbitration, the
1442	arbitrator may issue subpoenas for the attendance of witnesses
1443	and the production of books, records, documents, and other
1444	evidence, and any party on whose behalf a subpoena is issued may
1445	apply to the court for orders compelling such attendance and
1446	production. Subpoenas shall be served and are enforceable in the
1447	manner provided by the Florida Rules of Civil Procedure.
1448	Discovery may, at the discretion of the arbitrator, be permitted
1449	in the manner provided by the Florida Rules of Civil Procedure.
1450	(5)  The final arbitration award shall be sent to the
1451	parties in writing no later than 30 days after the date of the
1452	arbitration hearing, absent extraordinary circumstances
1453	necessitating a later filing the reasons for which shall be
1454	stated in the final award if filed more than 30 days after the
1455	date of the final session of the arbitration conference. An
1456	agreed arbitration award is final in those disputes in which the
1457	parties have mutually agreed to be bound. An arbitration award
1458	decided by the arbitrator is final unless a lawsuit seeking a
1459	trial de novo is filed in a court of competent jurisdiction
1460	within 30 days after the date of the arbitration award. The
1461	right to file for a trial de novo entitles the parties to file a
1462	complaint in the appropriate trial court for a judicial
1463	resolution of the dispute. The prevailing party in an
1464	arbitration proceeding shall be awarded the costs of the
1465	arbitration and reasonable attorney's fees in an amount
1466	determined by the arbitrator.
1467	(6)  The party filing a motion for a trial de novo shall be
1468	assessed the other party's arbitration costs, court costs, and
1469	other reasonable costs, including attorney's fees, investigation
1470	expenses, and expenses for expert or other testimony or evidence
1471	incurred after the arbitration hearing, if the judgment upon the
1472	trial de novo is not more favorable than the final arbitration
1473	award.
1474	720.508  Rules of procedure.--
1475	(1)  Presuit mediation and presuit arbitration proceedings
1476	under this part must be conducted in accordance with the
1477	applicable Florida Rules of Civil Procedure and rules governing
1478	mediations and arbitrations under chapter 44, except that this
1479	part shall be controlling to the extent of any conflict with
1480	other applicable rules or statutes. The arbitrator may shorten
1481	any applicable time period and otherwise limit the scope of
1482	discovery on request of the parties or within the discretion of
1483	the arbitrator exercised consistent with the purpose and
1484	objective of reducing the expense and expeditiously concluding
1485	proceedings under this part.
1486	(2)  Presuit mediation proceedings under s. 720.505 are
1487	privileged and confidential to the same extent as court-ordered
1488	mediation under chapter 44. An arbitrator or judge may not
1489	consider any information or evidence arising from the presuit
1490	mediation proceeding except in a proceeding to impose sanctions
1491	for failure to attend a presuit mediation session or to enforce
1492	a mediated settlement agreement.
1493	(3)  Persons who are not parties to the dispute may not
1494	attend the presuit mediation conference without consent of all
1495	parties, with the exception of counsel for the parties and a
1496	corporate representative designated by the association. Presuit
1497	mediations under this part are not a board meeting for purposes
1498	of notice and participation set forth in this chapter.
1499	(4)  Attendance at a mediation conference by the board of
1500	directors shall not require notice or participation by nonboard
1501	members as otherwise required by this chapter for meetings of
1502	the board.
1503	(5)  Settlement agreements resulting from a mediation or
1504	arbitration proceeding do not have precedential value in
1505	proceedings involving parties other than those participating in
1506	the mediation or arbitration.
1507	(6)  Arbitration awards by an arbitrator shall have
1508	precedential value in other proceedings involving the same
1509	association or with respect to the same parcel owner.
1510	720.509  Mediators and arbitrators; qualifications and
1511	registration.--A person is authorized to conduct mediation or
1512	arbitration under this part if he or she has been certified as a
1513	circuit court civil mediator under the requirements adopted
1514	pursuant to s. 44.106, is a member in good standing with The
1515	Florida Bar, and otherwise meets all other requirements imposed
1516	by chapter 44.
1517	720.510  Enforcement of mediation agreement or arbitration
1518	award.--
1519	(1)  A mediation settlement may be enforced through the
1520	county or circuit court, as applicable, and any costs and
1521	attorney's fees incurred in the enforcement of a settlement
1522	agreement reached at mediation shall be awarded to the
1523	prevailing party in any enforcement action.
1524	(2)  Any party to an arbitration proceeding may enforce an
1525	arbitration award by filing a petition in a court of competent
1526	jurisdiction in which the homeowners' association is located.
1527	The prevailing party in such proceeding shall be awarded
1528	reasonable attorney's fees and costs incurred in such
1529	proceeding.
1530	(3)  If a complaint is filed seeking a trial de novo, the
1531	arbitration award shall be stayed and a petition to enforce the
1532	award may not be granted. Such award, however, shall be
1533	admissible in the court proceeding seeking a trial de novo.
1534	Section 10.  (1)  Notwithstanding any other provisions of
1535	law, any three or more condominium associations may form a
1536	self-insurance fund for the purposes of pooling and spreading
1537	the liabilities of its participant associations arising from the
1538	deductible provisions of the commercial lines residential
1539	property insurance policies of the participants applicable to
1540	hurricane losses, if:
1541	(a)  Such fund is a not-for-profit corporation pursuant to
1542	chapter 617, Florida Statutes.
1543	(b)  The fund is implemented through contracts among the
1544	participating associations, or through contracts between the
1545	participating associations and another legal entity established
1546	for and limited to establishing and implementing the program.
1547	(c)  The liability of the fund for claims is limited to
1548	funds available for the payment of claims.
1549	(d)  The contract provided to a participating
1550	association clearly discloses the obligations of the
1551	participants in the fund and the obligations of the fund,
1552	including the limited liability of the fund as defined in
1553	paragraph (c). The contract must specify a reasonable date
1554	for the payment of claims which provides the fund with
1555	adequate time to verify and account for all claims for a
1556	given year so that claims payments can be properly
1557	calculated after consideration of the funds available. Before
1558	execution of the contract, the association or its
1559	representative must be provided a separate disclosure form
1560	specifying the limited liability of the fund and all
1561	administrative fees and estimated expenses, and provide
1562	examples of the manner in which available funds will be
1563	allocated among claimants if claims exceed the funds
1564	available for the payment thereof. Such disclosure must be
1565	signed by a representative of the participating association
1566	before or at the time of execution of the contract.
1567	(e)  The contributions charged for participating in the
1568	fund are established by the fund and calculated as a percentage
1569	of the participant's hurricane deductible dollar amount. The
1570	fund may determine the method and timing of payment of
1571	contributions.
1572	(f)  All members of the governing board of the fund must
1573	be participating associations in the fund, and the governing
1574	body shall have all powers necessary to establish and
1575	administer the fund as authorized by the participants in the
1576	fund. All decisions of the fund shall be based upon a vote of
1577	the majority of the board. The board may contract with
1578	individual professionals to administer the fund.
1579	(g)  The fund uses and contracts with knowledgeable
1580	persons or business entities to administer and service the fund,
1581	including marketing, policy, contract administration, claims
1582	administration, accounting services, and legal services.
1583	(h)  The fund uses a properly licensed general lines
1584	insurance agent who is a Florida resident for solicitation
1585	of participation in the fund and does not prevent,
1586	impede, or restrict any applicant or participant in
1587	the fund from maintaining or selecting an agent of
1588	choice. The fund may not favor one or more agents over
1589	another agent. The organizational documents, the contract,
1590	and notices of disclosure must be filed with the Office of
1591	Insurance Regulation not less than 45 days prior to
1592	solicitation by the fund.
1593	(i)  The fund is audited by an independent auditor no less
1594	frequently than every 2 years.
1595	(2)  The fund may accumulate funds or periodically
1596	distribute excess funds to its participants on a pro rata
1597	basis, reflecting loss experience of individual participants
1598	and proportionate contributions paid by participants.
1599	(3)  Participants in the fund must have a deductible
1600	no greater than as provided in s. 627.701(8), Florida
1601	Statutes. Self-insurance funds or pools established
1602	pursuant to this section are not subject to licensure
1603	requirements or regulation pursuant to the Florida
1604	Insurance Code, except for part IX of chapter 626,
1605	Florida Statutes, which may be enforced by the
1606	Office of Insurance Regulation or the Department
1607	of Financial Services, as applicable, and are not
1608	subject to any fees, taxes, or assessments related to
1609	the writing or transaction of insurance in this state.
1610	Section 11.  Except as otherwise expressly provided in this
1611	act, this act shall take effect July 1, 2009.

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