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38	repealed provisions; creating part IV of ch. 720, F.S.,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

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