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38	will continue under the repealed provisions; creating part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

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