CS/CS/CS/HB 27

1	A bill to be entitled
2	An act relating to residential properties; amending s.
3	468.436, F.S.; revising a ground for disciplinary action
4	relating to misconduct or negligence; requiring the
5	Department of Business and Professional Regulation to
6	enter an order permanently revoking certain community
7	association manager licenses; amending s. 718.111, F.S.;
8	providing that an association has power to borrow money;
9	requiring two-thirds vote of members to borrow money above
10	a certain threshold; requiring certain notice of meeting;
11	requiring that association access to a unit must be by two
12	persons, one of whom must be a board member or manager or
13	employee of the association; providing an exception for
14	emergencies; amending s. 718.112, F.S.; revising notice
15	requirements for board of administration meetings;
16	revising requirements for the reappointment of certain
17	board members; providing an exception to the expiration of
18	the terms of members of certain boards; revising board
19	eligibility requirements; revising notice requirements for
20	board candidates; establishing requirements for newly
21	elected board members; providing requirements for bylaw
22	amendments by a board of administration; amending s.
23	718.116, F.S.; authorizing association demands for
24	assessment payments from tenants of delinquent owners
25	during pendency of a foreclosure action of a condominium
26	unit; providing for notice; providing for credits against
27	rent for assessment payments by tenants; providing for
28	eviction proceedings for nonpayment; providing for effect
29	of provisions on rights and duties of the tenant and
30	association; amending s. 718.501, F.S.; providing for
31	division jurisdiction to investigate complaints concerning
32	failure to maintain common elements; prohibiting an
33	officer or director from acting as such for a specified
34	period after having been found to have committed specified
35	violations; providing for payment of restitution and costs
36	of investigation and prosecution in certain circumstances;
37	amending s. 718.115, F.S.; requiring that certain services
38	obtained pursuant to a bulk contract as provided in the
39	declaration be deemed a common expense; requiring that
40	such contracts contain certain provisions; authorizing the
41	cancellation of certain contracts; amending s. 718.1265,
42	F.S.; limiting the exercise of specified special powers
43	unless a certain number of units are rendered
44	uninhabitable; amending s. 718.303, F.S.; revising
45	provisions relating to levy of fines; amending s.
46	718.5012, F.S.; providing a responsibility of the
47	ombudsman to prepare and adopt a "Florida Condominium
48	Handbook"; requiring the publishing and updating of the
49	handbook to be done in conjunction with the Division of
50	Florida Condominiums, Timeshares, and Mobile Homes;
51	providing the purpose of the handbook; requiring the
52	handbook to be published on the ombudsman's Internet
53	website; amending s.  720.303, F.S.; revising provisions
54	relating to homeowners' association board meetings,
55	inspection and copying of records, reserve accounts of
56	budgets, and recall of directors; prohibiting a salary or
57	compensation for certain association personnel; providing
58	exceptions; providing requirements for the borrowing of
59	funds or committing to a line of credit by the board;
60	providing requirements relating to transfer fees; amending
61	s. 720.304, F.S.; revising requirements with respect to
62	the display of flags; amending s. 720.305, F.S.;
63	authorizing fines assessed against members which exceed a
64	certain amount to become a lien against a parcel; amending
65	s. 720.306, F.S.; providing requirements for secret
66	ballots; requiring newly elected members of a board of
67	directors to make certain certifications in writing to the
68	association; providing for disqualification for failure to
69	make such certifications; requiring an association to
70	retain certifications for a specified time; amending s.
71	720.3085, F.S.; requiring a tenant in a unit in which the
72	regular assessments are delinquent to pay future regular
73	assessments to the association; requiring notice;
74	providing for eviction by the association; specifying
75	rights of the tenant; creating s. 720.3095, F.S.;
76	providing requirements of maintenance and management
77	contracts of a homeowners' association; requiring
78	disclosures; providing a penalty; providing exceptions;
79	creating s. 720.3096, F.S.; limiting contracts entered
80	into by a homeowners' association; providing requirements
81	for such contracts; amending s. 720.401,  F.S.; requiring
82	that the disclosure summary to prospective parcel owners
83	include additional provisions; amending s. 34.01, F.S.;
84	correcting a cross-reference to conform to changes made by
85	the act; amending s. 720.302, F.S.; correcting a cross-
86	reference to conform to changes made by the act;
87	establishing legislative intent; repealing s. 720.311,
88	F.S., relating to a procedure for dispute resolution in
89	homeowners' associations; providing that dispute
90	resolution cases pending on the date of repeal will
91	continue under the repealed provisions; creating part IV
92	of ch. 720, F.S., relating to dispute resolution; creating
93	s. 720.501, F.S.; providing a short title; creating s.
94	720.502, F.S.; providing legislative findings; creating s.
95	720.503, F.S.; setting applicability of provisions for
96	mediation and arbitration applicable to disputes in
97	homeowners' associations; creating exceptions; providing
98	applicability; tolling applicable statutes of limitations;
99	creating s. 720.504, F.S.; requiring that the notice of
100	dispute be delivered before referral to mediation or
101	arbitration; creating s. 720.505, F.S.; creating a
102	statutory notice form for referral to mediation; requiring
103	delivery by certified mail or personal delivery; setting
104	deadlines; requiring parties to share costs; requiring the
105	selection of a mediator and times to meet; providing
106	penalties for failure to mediate; creating s. 720.506,
107	F.S.; creating an opt-out provision; creating s. 720.507,
108	F.S.; creating a statutory notice form for referral to
109	arbitration; requiring delivery by certified mail or
110	personal delivery; setting deadlines; requiring parties to
111	share costs; requiring the selection of an arbitrator and
112	times to meet; providing penalties for failure to
113	arbitrate; creating s. 720.508, F.S.; providing for rules
114	of procedure; providing for confidentiality; creating s.
115	720.509, F.S.; setting qualifications for mediators and
116	arbitrators; creating s. 720.510, F.S.; providing for
117	enforcement of mediation agreements and arbitration
118	awards; amending s. 718.103, F.S.; expanding the
119	definition of "developer" to include a bulk assignee or
120	bulk buyer; amending s. 718.301, F.S.; revising conditions
121	under which unit owners other than the developer may elect
122	not less than a majority of the members of the board of
123	administration of an association; creating part VII of ch.
124	718, F.S.; providing a short title; providing legislative
125	findings and intent; defining the terms "bulk assignee"
126	and "bulk buyer"; providing for the assignment of
127	developer rights by a bulk assignee; specifying
128	liabilities of bulk assignees and bulk buyers; providing
129	exceptions; providing additional responsibilities of bulk
130	assignees and bulk buyers; authorizing certain entities to
131	assign developer rights to a bulk assignee; limiting the
132	number of bulk assignees at any given time; providing for
133	the transfer of control of a board of administration;
134	providing effects of such transfer on parcels acquired by
135	a bulk assignee; providing obligations of a bulk assignee
136	upon the transfer of control of a board of administration;
137	requiring that a bulk assignee certify certain information
138	in writing; providing for the resolution of a conflict
139	between specified provisions of state law; providing that
140	the failure of a bulk assignee or bulk buyer to comply
141	with specified provisions of state law results in the loss
142	of certain protections and exemptions; requiring that a
143	bulk assignee or bulk buyer file certain information with
144	the Division of Florida Condominiums, Timeshares, and
145	Mobile Homes of the Department of Business and
146	Professional Regulation before offering any units for sale
147	or lease in excess of a specified term; requiring that a
148	copy of such information be provided to a prospective
149	purchaser; requiring that certain contracts and disclosure
150	statements contain specified statements; requiring that a
151	bulk assignee or bulk buyer comply with certain disclosure
152	requirements; prohibiting a bulk assignee from taking
153	certain actions on behalf of an association while the bulk
154	assignee is in control of the board of administration of
155	the association and requiring that such bulk assignee
156	comply with certain requirements; requiring that a bulk
157	assignee or bulk buyer comply with certain requirements
158	regarding certain contracts; providing unit owners with
159	specified protections regarding certain contracts;
160	requiring that a bulk buyer comply with certain
161	requirements regarding the transfer of a unit; prohibiting
162	a person from being classified as a bulk assignee or bulk
163	buyer unless condominium parcels were acquired before a
164	specified date; providing for the determination of the
165	date of acquisition of a parcel; providing that the
166	assignment of developer rights to a bulk assignee does not
167	release a developer from certain liabilities; preserving
168	certain liabilities for certain parties; requiring all new
169	residential construction in a deed-restricted community
170	that requires mandatory membership in the association
171	under specified provisions of Florida law to comply with
172	specified provisions of federal law; providing an
173	effective date.
174
175	Be It Enacted by the Legislature of the State of Florida:
176
177	Section 1.  Paragraph (b) of subsection (2) of section
178	468.436, Florida Statutes, is amended, and subsection (6) is
179	added to that section, to read:
180	468.436  Disciplinary proceedings.--
181	(2)  The following acts constitute grounds for which the
182	disciplinary actions in subsection (4) may be taken:
183	(b)1.  Violation of any provision of this part.
184	2.  Violation of any lawful order or rule rendered or
185	adopted by the department or the council.
186	3.  Being convicted of or pleading nolo contendere to a
187	felony in any court in the United States.
188	4.  Obtaining a license or certification or any other
189	order, ruling, or authorization by means of fraud,
190	misrepresentation, or concealment of material facts.
191	5.  Committing acts of gross misconduct or gross negligence
192	in connection with the profession.
193	6.  Contracting, on behalf of an association, with any
194	entity in which the licensee has a financial interest that is
195	not disclosed.
196	(6)  Upon the fifth or later finding that a community
197	association manager is guilty of any of the grounds set forth in
198	subsection (2), or upon the third or later finding that a
199	community association manager is guilty of a specific ground for
200	which the disciplinary actions set forth in subsection (2) may
201	be taken, the department's discretion under subsection (4) shall
202	not apply and the division shall enter an order permanently
203	revoking the license.
204	Section 2.  Subsections (3) and (5) of section 718.111,
205	Florida Statutes, are amended to read:
206	718.111  The association.--
207	(3)  POWER TO MANAGE CONDOMINIUM PROPERTY AND TO CONTRACT,
208	SUE, AND BE SUED.--
209	(a)  The association may contract, sue, or be sued with
210	respect to the exercise or nonexercise of its powers. For these
211	purposes, the powers of the association include, but are not
212	limited to, the maintenance, management, and operation of the
213	condominium property.
214	(b)  After control of the association is obtained by unit
215	owners other than the developer, the association may institute,
216	maintain, settle, or appeal actions or hearings in its name on
217	behalf of all unit owners concerning matters of common interest
218	to most or all unit owners, including, but not limited to, the
219	common elements; the roof and structural components of a
220	building or other improvements; mechanical, electrical, and
221	plumbing elements serving an improvement or a building;
222	representations of the developer pertaining to any existing or
223	proposed commonly used facilities; and protesting ad valorem
224	taxes on commonly used facilities and on units; and may defend
225	actions in eminent domain or bring inverse condemnation actions.
226	(c)  If the association has the authority to maintain a
227	class action, the association may be joined in an action as
228	representative of that class with reference to litigation and
229	disputes involving the matters for which the association could
230	bring a class action. Nothing herein limits any statutory or
231	common-law right of any individual unit owner or class of unit
232	owners to bring any action without participation by the
233	association which may otherwise be available.
234	(d)  The borrowing of funds or committing to a line of
235	credit by the board of administration shall be considered a
236	special assessment, and any meeting of the board of
237	administration to discuss such matters shall be noticed as
238	provided in s. 718.112(2)(c). The board shall not have the
239	authority to enter into a line of credit or borrow funds for any
240	purpose unless the specific use of funds from the line of credit
241	or loan is set forth in the notice of meeting with the same
242	specificity as required for a special assessment or unless the
243	borrowing or line of credit has received the prior approval of
244	not less than two-thirds of the voting interests of the
245	association.
246	(5)  RIGHT OF ACCESS TO UNITS.--The association has the
247	irrevocable right of access to each unit during reasonable
248	hours, when necessary for the maintenance, repair, or
249	replacement of any common elements or of any portion of a unit
250	to be maintained by the association pursuant to the declaration
251	or as necessary to prevent damage to the common elements or to a
252	unit or units. Except in cases of emergency, the association
253	must give the unit owner advance written notice of not less than
254	24 hours of its intent to access the unit and such access must
255	be by two persons, one of whom must be a member of the board of
256	administration or a manager or employee of the association and
257	one of whom must be an authorized representative of the
258	association. The identity of the authorized representative
259	seeking access to the unit shall be provided to the unit owner
260	prior to entering the unit.
261	Section 3.  Paragraphs (c) and (h) of subsection (2) of
262	section 718.112, Florida Statutes, are amended to read:
263	718.112  Bylaws.--
264	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
265	following and, if they do not do so, shall be deemed to include
266	the following:
267	(c)  Board of administration meetings.--Meetings of the
268	board of administration at which a quorum of the members is
269	present shall be open to all unit owners. Any unit owner may
270	tape record or videotape meetings of the board of
271	administration. The right to attend such meetings includes the
272	right to speak at such meetings with reference to all designated
273	agenda items. The division shall adopt reasonable rules
274	governing the tape recording and videotaping of the meeting. The
275	association may adopt written reasonable rules governing the
276	frequency, duration, and manner of unit owner statements.
277	Adequate notice of all meetings, which notice shall specifically
278	incorporate an identification of agenda items, shall be posted
279	conspicuously on the condominium property at least 48 continuous
280	hours preceding the meeting except in an emergency. If 20
281	percent of the voting interests petition the board to address an
282	item of business, the board shall at its next regular board
283	meeting or at a special meeting of the board, but not later than
284	60 days after the receipt of the petition, place the item on the
285	agenda. Any item not included on the notice may be taken up on
286	an emergency basis by at least a majority plus one of the
287	members of the board. Such emergency action shall be noticed and
288	ratified at the next regular meeting of the board. However,
289	written notice of any meeting at which nonemergency special
290	assessments, or at which amendment to rules regarding unit use,
291	will be considered shall be mailed, delivered, or electronically
292	transmitted to the unit owners and posted conspicuously on the
293	condominium property not less than 14 days prior to the meeting.
294	Evidence of compliance with this 14-day notice shall be made by
295	an affidavit executed by the person providing the notice and
296	filed among the official records of the association. Upon notice
297	to the unit owners, the board shall by duly adopted rule
298	designate a specific location on the condominium property or
299	association property upon which all notices of board meetings
300	shall be posted. If there is no condominium property or
301	association property upon which notices can be posted, notices
302	of board meetings shall be mailed, delivered, or electronically
303	transmitted at least 14 days before the meeting to the owner of
304	each unit. In lieu of or in addition to the physical posting of
305	notice of any meeting of the board of administration on the
306	condominium property, the association may, by reasonable rule,
307	adopt a procedure for conspicuously posting and repeatedly
308	broadcasting the notice and the agenda on a closed-circuit cable
309	television system serving the condominium association. However,
310	if broadcast notice is used in lieu of a notice posted
311	physically on the condominium property, the notice and agenda
312	must be broadcast at least four times every broadcast hour of
313	each day that a posted notice is otherwise required under this
314	section. When broadcast notice is provided, the notice and
315	agenda must be broadcast in a manner and for a sufficient
316	continuous length of time so as to allow an average reader to
317	observe the notice and read and comprehend the entire content of
318	the notice and the agenda. Notice of any meeting in which
319	regular or special assessments against unit owners are to be
320	considered for any reason shall specifically state that
321	assessments will be considered and the nature of, actual amount
322	of any bids or proposals for estimated cost, and description of
323	the purposes for such assessments. Meetings of a committee to
324	take final action on behalf of the board or make recommendations
325	to the board regarding the association budget are subject to the
326	provisions of this paragraph. Meetings of a committee that does
327	not take final action on behalf of the board or make
328	recommendations to the board regarding the association budget
329	are subject to the provisions of this section, unless those
330	meetings are exempted from this section by the bylaws of the
331	association. Notwithstanding any other law, the requirement that
332	board meetings and committee meetings be open to the unit owners
333	is inapplicable to meetings between the board or a committee and
334	the association's attorney, with respect to proposed or pending
335	litigation, when the meeting is held for the purpose of seeking
336	or rendering legal advice.
337	(d)  Unit owner meetings.--
338	1.  There shall be an annual meeting of the unit owners
339	held at the location provided in the association bylaws and, if
340	the bylaws are silent as to the location, the meeting shall be
341	held within 45 miles of the condominium property. However, such
342	distance requirement does not apply to an association governing
343	a timeshare condominium. Unless the bylaws provide otherwise, a
344	vacancy on the board caused by the expiration of a director's
345	term shall be filled by electing a new board member, and the
346	election shall be by secret ballot; however, if the number of
347	vacancies equals or exceeds the number of candidates, no
348	election is required. Except in an association governing a
349	timeshare condominium, the terms of all members of the board
350	shall expire at the annual meeting and such board members may
351	stand for reelection unless otherwise permitted by the bylaws.
352	In the event that the bylaws permit staggered terms of no more
353	than 2 years and upon approval of a majority of the total voting
354	interests, the association board members may serve 2-year
355	staggered terms. If the number no person is interested in or
356	demonstrates an intention to run for the position of a board
357	members member whose terms have term has expired according to
358	the provisions of this subparagraph exceeds the number of
359	eligible association members showing interest in or
360	demonstrating an intention to run for the vacant positions, each
361	such board member whose term has expired shall become eligible
362	for reappointment be automatically reappointed to the board of
363	administration and need not stand for reelection. In a
364	condominium association of more than 10 units, or in a
365	condominium association that does not include timeshare units,
366	coowners of a unit may not serve as members of the board of
367	directors at the same time unless they own more than one unit
368	and are not co-occupants of a unit or unless there is an
369	insufficient number of eligible association members showing
370	interest in or demonstrating an intention to run for the vacant
371	positions on the board. Any unit owner desiring to be a
372	candidate for board membership shall comply with sub-
373	subparagraph subparagraph 3.a. A person who has been suspended
374	or removed by the division under this chapter, or who is
375	delinquent in the payment of any fee, fine, or special or
376	regular assessment as provided in paragraph (n), is not eligible
377	for board membership. A person who has been convicted of any
378	felony in this state or in a United States District or
379	Territorial Court, or who has been convicted of any offense in
380	another jurisdiction that would be considered a felony if
381	committed in this state, is not eligible for board membership
382	unless such felon's civil rights have been restored for a period
383	of no less than 5 years as of the date on which such person
384	seeks election to the board. The validity of an action by the
385	board is not affected if it is later determined that a member of
386	the board is ineligible for board membership due to having been
387	convicted of a felony.
388	2.  The bylaws shall provide the method of calling meetings
389	of unit owners, including annual meetings. Written notice, which
390	notice must include an agenda, shall be mailed, hand delivered,
391	or electronically transmitted to each unit owner at least 14
392	days prior to the annual meeting and shall be posted in a
393	conspicuous place on the condominium property at least 14
394	continuous days preceding the annual meeting. Upon notice to the
395	unit owners, the board shall by duly adopted rule designate a
396	specific location on the condominium property or association
397	property upon which all notices of unit owner meetings shall be
398	posted; however, if there is no condominium property or
399	association property upon which notices can be posted, this
400	requirement does not apply. In lieu of or in addition to the
401	physical posting of notice of any meeting of the unit owners on
402	the condominium property, the association may, by reasonable
403	rule, adopt a procedure for conspicuously posting and repeatedly
404	broadcasting the notice and the agenda on a closed-circuit cable
405	television system serving the condominium association. However,
406	if broadcast notice is used in lieu of a notice posted
407	physically on the condominium property, the notice and agenda
408	must be broadcast at least four times every broadcast hour of
409	each day that a posted notice is otherwise required under this
410	section. When broadcast notice is provided, the notice and
411	agenda must be broadcast in a manner and for a sufficient
412	continuous length of time so as to allow an average reader to
413	observe the notice and read and comprehend the entire content of
414	the notice and the agenda. Unless a unit owner waives in writing
415	the right to receive notice of the annual meeting, such notice
416	shall be hand delivered, mailed, or electronically transmitted
417	to each unit owner. Notice for meetings and notice for all other
418	purposes shall be mailed to each unit owner at the address last
419	furnished to the association by the unit owner, or hand
420	delivered to each unit owner. However, if a unit is owned by
421	more than one person, the association shall provide notice, for
422	meetings and all other purposes, to that one address which the
423	developer initially identifies for that purpose and thereafter
424	as one or more of the owners of the unit shall so advise the
425	association in writing, or if no address is given or the owners
426	of the unit do not agree, to the address provided on the deed of
427	record. An officer of the association, or the manager or other
428	person providing notice of the association meeting, shall
429	provide an affidavit or United States Postal Service certificate
430	of mailing, to be included in the official records of the
431	association affirming that the notice was mailed or hand
432	delivered, in accordance with this provision.
433	3.a.  The members of the board shall be elected by written
434	ballot or voting machine. Proxies shall in no event be used in
435	electing the board, either in general elections or elections to
436	fill vacancies caused by recall, resignation, or otherwise,
437	unless otherwise provided in this chapter. Not less than 60 days
438	before a scheduled election, the association shall mail,
439	deliver, or electronically transmit, whether by separate
440	association mailing or included in another association mailing,
441	delivery, or transmission, including regularly published
442	newsletters, to each unit owner entitled to a vote, a first
443	notice of the date of the election along with a certification
444	form provided by the division attesting that he or she has read
445	and understands, to the best of his or her ability, the
446	governing documents of the association and the provisions of
447	this chapter and any applicable rules. Any unit owner or other
448	eligible person desiring to be a candidate for the board must
449	give written notice of his or her intent to be a candidate to
450	the association not less than 40 days before a scheduled
451	election. Together with the written notice and agenda as set
452	forth in subparagraph 2., the association shall mail, deliver,
453	or electronically transmit a second notice of the election to
454	all unit owners entitled to vote therein, together with a ballot
455	which shall list all candidates. Upon request of a candidate,
456	the association shall include an information sheet, no larger
457	than 8 1/2 inches by 11 inches, which must be furnished by the
458	candidate not less than 35 days before the election, shall along
459	with the signed certification form provided for in this
460	subparagraph, to be included with the mailing, delivery, or
461	transmission of the ballot, with the costs of mailing, delivery,
462	or electronic transmission and copying to be borne by the
463	association. The association is not liable for the contents of
464	the information sheets prepared by the candidates. In order to
465	reduce costs, the association may print or duplicate the
466	information sheets on both sides of the paper. The division
467	shall by rule establish voting procedures consistent with the
468	provisions contained herein, including rules establishing
469	procedures for giving notice by electronic transmission and
470	rules providing for the secrecy of ballots. Elections shall be
471	decided by a plurality of those ballots cast. There shall be no
472	quorum requirement; however, at least 20 percent of the eligible
473	voters must cast a ballot in order to have a valid election of
474	members of the board. No unit owner shall permit any other
475	person to vote his or her ballot, and any such ballots
476	improperly cast shall be deemed invalid, provided any unit owner
477	who violates this provision may be fined by the association in
478	accordance with s. 718.303. A unit owner who needs assistance in
479	casting the ballot for the reasons stated in s. 101.051 may
480	obtain assistance in casting the ballot. The regular election
481	shall occur on the date of the annual meeting. The provisions of
482	this sub-subparagraph subparagraph shall not apply to timeshare
483	condominium associations. Notwithstanding the provisions of this
484	sub-subparagraph subparagraph, an election is not required
485	unless more candidates file notices of intent to run or are
486	nominated than board vacancies exist.
487	b.  Within 90 days after being elected to the board, each
488	newly elected director shall certify in writing to the secretary
489	of the association that he or she has read the association's
490	declarations of covenants and restrictions, articles of
491	incorporation, bylaws, and current written policies; that he or
492	she will work to uphold such documents and policies to the best
493	of his or her ability; and that he or she will faithfully
494	discharge his or her fiduciary responsibility to the
495	association's members. In lieu of this written certification,
496	the newly elected director may submit a certificate of
497	satisfactory completion of the educational curriculum
498	administered by a division-approved condominium education
499	provider. Failure to timely file the written certification or
500	educational certificate automatically disqualifies the director
501	from service on the board. The secretary shall cause the
502	association to retain a director's written certification or
503	educational certificate for inspection by the members for 5
504	years after a director's election. Failure to have such written
505	certification or educational certificate on file does not affect
506	the validity of any appropriate action.
507	4.  Any approval by unit owners called for by this chapter
508	or the applicable declaration or bylaws, including, but not
509	limited to, the approval requirement in s. 718.111(8), shall be
510	made at a duly noticed meeting of unit owners and shall be
511	subject to all requirements of this chapter or the applicable
512	condominium documents relating to unit owner decisionmaking,
513	except that unit owners may take action by written agreement,
514	without meetings, on matters for which action by written
515	agreement without meetings is expressly allowed by the
516	applicable bylaws or declaration or any statute that provides
517	for such action.
518	5.  Unit owners may waive notice of specific meetings if
519	allowed by the applicable bylaws or declaration or any statute.
520	If authorized by the bylaws, notice of meetings of the board of
521	administration, unit owner meetings, except unit owner meetings
522	called to recall board members under paragraph (j), and
523	committee meetings may be given by electronic transmission to
524	unit owners who consent to receive notice by electronic
525	transmission.
526	6.  Unit owners shall have the right to participate in
527	meetings of unit owners with reference to all designated agenda
528	items. However, the association may adopt reasonable rules
529	governing the frequency, duration, and manner of unit owner
530	participation.
531	7.  Any unit owner may tape record or videotape a meeting
532	of the unit owners subject to reasonable rules adopted by the
533	division.
534	8.  Unless otherwise provided in the bylaws, any vacancy
535	occurring on the board before the expiration of a term may be
536	filled by the affirmative vote of the majority of the remaining
537	directors, even if the remaining directors constitute less than
538	a quorum, or by the sole remaining director. In the alternative,
539	a board may hold an election to fill the vacancy, in which case
540	the election procedures must conform to the requirements of sub-
541	subparagraph subparagraph 3.a. unless the association governs 10
542	units or fewer less and has opted out of the statutory election
543	process, in which case the bylaws of the association control.
544	Unless otherwise provided in the bylaws, a board member
545	appointed or elected under this section shall fill the vacancy
546	for the unexpired term of the seat being filled. Filling
547	vacancies created by recall is governed by paragraph (j) and
548	rules adopted by the division.
549
550	Notwithstanding subparagraph subparagraphs (b)2. and sub-
551	subparagraph (d)3.a., an association of 10 or fewer units may,
552	by the affirmative vote of a majority of the total voting
553	interests, provide for different voting and election procedures
554	in its bylaws, which vote may be by a proxy specifically
555	delineating the different voting and election procedures. The
556	different voting and election procedures may provide for
557	elections to be conducted by limited or general proxy.
558	(h)  Amendment of bylaws.--
559	1.  The method by which the bylaws may be amended
560	consistent with the provisions of this chapter shall be stated.
561	If the bylaws fail to provide a method of amendment, the bylaws
562	may be amended if the amendment is approved by the owners of not
563	less than two-thirds of the voting interests.
564	2.  No bylaw shall be revised or amended by reference to
565	its title or number only. Proposals to amend existing bylaws
566	shall contain the full text of the bylaws to be amended; new
567	words shall be inserted in the text underlined, and words to be
568	deleted shall be lined through with hyphens. However, if the
569	proposed change is so extensive that this procedure would
570	hinder, rather than assist, the understanding of the proposed
571	amendment, it is not necessary to use underlining and hyphens as
572	indicators of words added or deleted, but, instead, a notation
573	must be inserted immediately preceding the proposed amendment in
574	substantially the following language: "Substantial rewording of
575	bylaw. See bylaw _____ for present text."
576	3.  Nonmaterial errors or omissions in the bylaw process
577	will not invalidate an otherwise properly promulgated amendment.
578	4.  If the bylaws provide for amendment by the board of
579	administration, no bylaw may be amended unless it is heard and
580	noticed at two consecutive meetings of the board of
581	administration that are at least 1 week apart.
582	Section 4.  Subsection (11) is added to section 718.116,
583	Florida Statutes, to read:
584	718.116  Assessments; liability; lien and priority;
585	interest; collection.--
586	(11)  During the pendency of any foreclosure action of a
587	condominium unit, if the unit is occupied by a tenant and the
588	unit owner is delinquent in the payment of regular assessments,
589	the association may demand that the tenant pay to the
590	association the future regular assessments related to the
591	condominium unit. The demand shall be continuing in nature, and
592	upon demand the tenant shall continue to pay the regular
593	assessments to the association until the association releases
594	the tenant or the tenant discontinues tenancy in the unit. The
595	association shall mail written notice to the unit owner of the
596	association's demand that the tenant pay regular assessments to
597	the association. The tenant shall not be liable for increases in
598	the amount of the regular assessment due unless the tenant was
599	reasonably notified of the increase prior to the day that the
600	rent is due. The tenant shall be given a credit against rents
601	due to the unit owner in the amount of assessments paid to the
602	association. The association shall, upon request, provide the
603	tenant with written receipts for payments made. The association
604	may issue notices under s. 83.56 and may sue for eviction under
605	ss. 83.59-83.625 as if the association were a landlord under
606	part II of chapter 83 should the tenant fail to pay an
607	assessment. However, the association shall not otherwise be
608	considered a landlord under chapter 83 and shall specifically
609	not have any duty under s. 83.51. The tenant shall not, by
610	virtue of payment of assessments, have any of the rights of a
611	unit owner to vote in any election or to examine the books and
612	records of the association. A court may supersede the effect of
613	this subsection by appointing a receiver.
614	Section 5.  Subsection (1) of section 718.501, Florida
615	Statutes, is amended to read:
616	718.501  Authority, responsibility, and duties of Division
617	of Florida Condominiums, Timeshares, and Mobile Homes.--
618	(1)  The Division of Florida Condominiums, Timeshares, and
619	Mobile Homes of the Department of Business and Professional
620	Regulation, referred to as the "division" in this part, has the
621	power to enforce and ensure compliance with the provisions of
622	this chapter and rules relating to the development,
623	construction, sale, lease, ownership, operation, and management
624	of residential condominium units. In performing its duties, the
625	division has complete jurisdiction to investigate complaints and
626	enforce compliance with the provisions of this chapter with
627	respect to associations that are still under developer control
628	and complaints against developers involving improper turnover or
629	failure to turnover, pursuant to s. 718.301. However, after
630	turnover has occurred, the division shall only have jurisdiction
631	to investigate complaints related to financial issues, failure
632	to maintain common elements, elections, and unit owner access to
633	association records pursuant to s. 718.111(12).
634	(a)1.  The division may make necessary public or private
635	investigations within or outside this state to determine whether
636	any person has violated this chapter or any rule or order
637	hereunder, to aid in the enforcement of this chapter, or to aid
638	in the adoption of rules or forms hereunder.
639	2.  The division may submit any official written report,
640	worksheet, or other related paper, or a duly certified copy
641	thereof, compiled, prepared, drafted, or otherwise made by and
642	duly authenticated by a financial examiner or analyst to be
643	admitted as competent evidence in any hearing in which the
644	financial examiner or analyst is available for cross-examination
645	and attests under oath that such documents were prepared as a
646	result of an examination or inspection conducted pursuant to
647	this chapter.
648	(b)  The division may require or permit any person to file
649	a statement in writing, under oath or otherwise, as the division
650	determines, as to the facts and circumstances concerning a
651	matter to be investigated.
652	(c)  For the purpose of any investigation under this
653	chapter, the division director or any officer or employee
654	designated by the division director may administer oaths or
655	affirmations, subpoena witnesses and compel their attendance,
656	take evidence, and require the production of any matter which is
657	relevant to the investigation, including the existence,
658	description, nature, custody, condition, and location of any
659	books, documents, or other tangible things and the identity and
660	location of persons having knowledge of relevant facts or any
661	other matter reasonably calculated to lead to the discovery of
662	material evidence. Upon the failure by a person to obey a
663	subpoena or to answer questions propounded by the investigating
664	officer and upon reasonable notice to all persons affected
665	thereby, the division may apply to the circuit court for an
666	order compelling compliance.
667	(d)  Notwithstanding any remedies available to unit owners
668	and associations, if the division has reasonable cause to
669	believe that a violation of any provision of this chapter or
670	related rule has occurred, the division may institute
671	enforcement proceedings in its own name against any developer,
672	association, officer, or member of the board of administration,
673	or its assignees or agents, as follows:
674	1.  The division may permit a person whose conduct or
675	actions may be under investigation to waive formal proceedings
676	and enter into a consent proceeding whereby orders, rules, or
677	letters of censure or warning, whether formal or informal, may
678	be entered against the person.
679	2.  The division may issue an order requiring the
680	developer, association, developer-designated officer, or
681	developer-designated member of the board of administration,
682	developer-designated assignees or agents, community association
683	manager, or community association management firm to cease and
684	desist from the unlawful practice and take such affirmative
685	action as in the judgment of the division will carry out the
686	purposes of this chapter. If the division finds that a
687	developer, association, officer, or member of the board of
688	administration, or its assignees or agents, is violating or is
689	about to violate any provision of this chapter, any rule adopted
690	or order issued by the division, or any written agreement
691	entered into with the division, and presents an immediate danger
692	to the public requiring an immediate final order, it may issue
693	an emergency cease and desist order reciting with particularity
694	the facts underlying such findings. The emergency cease and
695	desist order is effective for 90 days. If the division begins
696	nonemergency cease and desist proceedings, the emergency cease
697	and desist order remains effective until the conclusion of the
698	proceedings under ss. 120.569 and 120.57.
699	3.  If a developer fails to pay any restitution determined
700	by the division to be owed, plus any accrued interest at the
701	highest rate permitted by law, within 30 days after expiration
702	of any appellate time period of a final order requiring payment
703	of restitution or the conclusion of any appeal thereof,
704	whichever is later, the division shall bring an action in
705	circuit or county court on behalf of any association, class of
706	unit owners, lessees, or purchasers for restitution, declaratory
707	relief, injunctive relief, or any other available remedy. The
708	division may also temporarily revoke its acceptance of the
709	filing for the developer to which the restitution relates until
710	payment of restitution is made.
711	4.  The division may petition the court for the appointment
712	of a receiver or conservator. If appointed, the receiver or
713	conservator may take action to implement the court order to
714	ensure the performance of the order and to remedy any breach
715	thereof. In addition to all other means provided by law for the
716	enforcement of an injunction or temporary restraining order, the
717	circuit court may impound or sequester the property of a party
718	defendant, including books, papers, documents, and related
719	records, and allow the examination and use of the property by
720	the division and a court-appointed receiver or conservator.
721	5.  The division may apply to the circuit court for an
722	order of restitution whereby the defendant in an action brought
723	pursuant to subparagraph 4. shall be ordered to make restitution
724	of those sums shown by the division to have been obtained by the
725	defendant in violation of this chapter. Such restitution shall,
726	at the option of the court, be payable to the conservator or
727	receiver appointed pursuant to subparagraph 4. or directly to
728	the persons whose funds or assets were obtained in violation of
729	this chapter.
730	6.  The division may impose a civil penalty against a
731	developer or association, or its assignee or agent, for any
732	violation of this chapter or a rule adopted under this chapter.
733	The division may impose a civil penalty individually against any
734	officer or board member who willfully and knowingly violates a
735	provision of this chapter, adopted rule, or a final order of the
736	division; may order the removal of such individual as an officer
737	or from the board of administration or as an officer of the
738	association; and may prohibit such individual from serving as an
739	officer or on the board of a community association for a period
740	of time. The term "willfully and knowingly" means that the
741	division informed the officer or board member that his or her
742	action or intended action violates this chapter, a rule adopted
743	under this chapter, or a final order of the division and that
744	the officer or board member refused to comply with the
745	requirements of this chapter, a rule adopted under this chapter,
746	or a final order of the division. The division, prior to
747	initiating formal agency action under chapter 120, shall afford
748	the officer or board member an opportunity to voluntarily comply
749	with this chapter, a rule adopted under this chapter, or a final
750	order of the division. An officer or board member who complies
751	within 10 days is not subject to a civil penalty. A penalty may
752	be imposed on the basis of each day of continuing violation, but
753	in no event shall the penalty for any offense exceed $5,000. By
754	January 1, 1998, the division shall adopt, by rule, penalty
755	guidelines applicable to possible violations or to categories of
756	violations of this chapter or rules adopted by the division. The
757	guidelines must specify a meaningful range of civil penalties
758	for each such violation of the statute and rules and must be
759	based upon the harm caused by the violation, the repetition of
760	the violation, and upon such other factors deemed relevant by
761	the division. For example, the division may consider whether the
762	violations were committed by a developer or owner-controlled
763	association, the size of the association, and other factors. The
764	guidelines must designate the possible mitigating or aggravating
765	circumstances that justify a departure from the range of
766	penalties provided by the rules. It is the legislative intent
767	that minor violations be distinguished from those which endanger
768	the health, safety, or welfare of the condominium residents or
769	other persons and that such guidelines provide reasonable and
770	meaningful notice to the public of likely penalties that may be
771	imposed for proscribed conduct. This subsection does not limit
772	the ability of the division to informally dispose of
773	administrative actions or complaints by stipulation, agreed
774	settlement, or consent order. All amounts collected shall be
775	deposited with the Chief Financial Officer to the credit of the
776	Division of Florida Condominiums, Timeshares, and Mobile Homes
777	Trust Fund. If a developer fails to pay the civil penalty and
778	the amount deemed to be owed to the association, the division
779	shall issue an order directing that such developer cease and
780	desist from further operation until such time as the civil
781	penalty is paid or may pursue enforcement of the penalty in a
782	court of competent jurisdiction. If an association fails to pay
783	the civil penalty, the division shall pursue enforcement in a
784	court of competent jurisdiction, and the order imposing the
785	civil penalty or the cease and desist order will not become
786	effective until 20 days after the date of such order. Any action
787	commenced by the division shall be brought in the county in
788	which the division has its executive offices or in the county
789	where the violation occurred.
790	7.  If a unit owner presents the division with proof that
791	the unit owner has requested access to official records in
792	writing by certified mail, and that after 10 days the unit owner
793	again made the same request for access to official records in
794	writing by certified mail, and that more than 10 days has
795	elapsed since the second request and the association has still
796	failed or refused to provide access to official records as
797	required by this chapter, the division shall issue a subpoena
798	requiring production of the requested records where the records
799	are kept pursuant to s. 718.112.
800	8.  In addition to subparagraph 6., the division may seek
801	the imposition of a civil penalty through the circuit court for
802	any violation for which the division may issue a notice to show
803	cause under paragraph (r). The civil penalty shall be at least
804	$500 but no more than $5,000 for each violation. The court may
805	also award to the prevailing party court costs and reasonable
806	attorney's fees and, if the division prevails, may also award
807	reasonable costs of investigation.
808	9.  Notwithstanding subparagraph 6., when the division
809	finds that an officer or director has intentionally falsified
810	association records with the intent to conceal material facts
811	from the division, the board, or unit owners, the division shall
812	prohibit the officer or director from acting as an officer or
813	director of any condominium, cooperative, or homeowners'
814	association for at least 1 year.
815	10.  When the division finds that any person has derived an
816	improper personal benefit from a condominium association, the
817	division shall order the person to pay restitution to the
818	association and shall order the person to pay to the division
819	the costs of investigation and prosecution.
820	(e)  The division may prepare and disseminate a prospectus
821	and other information to assist prospective owners, purchasers,
822	lessees, and developers of residential condominiums in assessing
823	the rights, privileges, and duties pertaining thereto.
824	(f)  The division has authority to adopt rules pursuant to
825	ss. 120.536(1) and 120.54 to implement and enforce the
826	provisions of this chapter.
827	(g)  The division shall establish procedures for providing
828	notice to an association and the developer during the period
829	where the developer controls the association when the division
830	is considering the issuance of a declaratory statement with
831	respect to the declaration of condominium or any related
832	document governing in such condominium community.
833	(h)  The division shall furnish each association which pays
834	the fees required by paragraph (2)(a) a copy of this act,
835	subsequent changes to this act on an annual basis, an amended
836	version of this act as it becomes available from the Secretary
837	of State's office on a biennial basis, and the rules adopted
838	thereto on an annual basis.
839	(i)  The division shall annually provide each association
840	with a summary of declaratory statements and formal legal
841	opinions relating to the operations of condominiums which were
842	rendered by the division during the previous year.
843	(j)  The division shall provide training and educational
844	programs for condominium association board members and unit
845	owners. The training may, in the division's discretion, include
846	web-based electronic media, and live training and seminars in
847	various locations throughout the state. The division shall have
848	the authority to review and approve education and training
849	programs for board members and unit owners offered by providers
850	and shall maintain a current list of approved programs and
851	providers and shall make such list available to board members
852	and unit owners in a reasonable and cost-effective manner.
853	(k)  The division shall maintain a toll-free telephone
854	number accessible to condominium unit owners.
855	(l)  The division shall develop a program to certify both
856	volunteer and paid mediators to provide mediation of condominium
857	disputes. The division shall provide, upon request, a list of
858	such mediators to any association, unit owner, or other
859	participant in arbitration proceedings under s. 718.1255
860	requesting a copy of the list. The division shall include on the
861	list of volunteer mediators only the names of persons who have
862	received at least 20 hours of training in mediation techniques
863	or who have mediated at least 20 disputes. In order to become
864	initially certified by the division, paid mediators must be
865	certified by the Supreme Court to mediate court cases in county
866	or circuit courts. However, the division may adopt, by rule,
867	additional factors for the certification of paid mediators,
868	which factors must be related to experience, education, or
869	background. Any person initially certified as a paid mediator by
870	the division must, in order to continue to be certified, comply
871	with the factors or requirements imposed by rules adopted by the
872	division.
873	(m)  When a complaint is made, the division shall conduct
874	its inquiry with due regard to the interests of the affected
875	parties. Within 30 days after receipt of a complaint, the
876	division shall acknowledge the complaint in writing and notify
877	the complainant whether the complaint is within the jurisdiction
878	of the division and whether additional information is needed by
879	the division from the complainant. The division shall conduct
880	its investigation and shall, within 90 days after receipt of the
881	original complaint or of timely requested additional
882	information, take action upon the complaint. However, the
883	failure to complete the investigation within 90 days does not
884	prevent the division from continuing the investigation,
885	accepting or considering evidence obtained or received after 90
886	days, or taking administrative action if reasonable cause exists
887	to believe that a violation of this chapter or a rule of the
888	division has occurred. If an investigation is not completed
889	within the time limits established in this paragraph, the
890	division shall, on a monthly basis, notify the complainant in
891	writing of the status of the investigation. When reporting its
892	action to the complainant, the division shall inform the
893	complainant of any right to a hearing pursuant to ss. 120.569
894	and 120.57.
895	(n)  Condominium association directors, officers, and
896	employees; condominium developers; community association
897	managers; and community association management firms have an
898	ongoing duty to reasonably cooperate with the division in any
899	investigation pursuant to this section. The division shall refer
900	to local law enforcement authorities any person whom the
901	division believes has altered, destroyed, concealed, or removed
902	any record, document, or thing required to be kept or maintained
903	by this chapter with the purpose to impair its verity or
904	availability in the department's investigation.
905	(o)  The division may:
906	1.  Contract with agencies in this state or other
907	jurisdictions to perform investigative functions; or
908	2.  Accept grants-in-aid from any source.
909	(p)  The division shall cooperate with similar agencies in
910	other jurisdictions to establish uniform filing procedures and
911	forms, public offering statements, advertising standards, and
912	rules and common administrative practices.
913	(q)  The division shall consider notice to a developer to
914	be complete when it is delivered to the developer's address
915	currently on file with the division.
916	(r)  In addition to its enforcement authority, the division
917	may issue a notice to show cause, which shall provide for a
918	hearing, upon written request, in accordance with chapter 120.
919	(s)  The division shall submit to the Governor, the
920	President of the Senate, the Speaker of the House of
921	Representatives, and the chairs of the legislative
922	appropriations committees an annual report that includes, but
923	need not be limited to, the number of training programs provided
924	for condominium association board members and unit owners, the
925	number of complaints received by type, the number and percent of
926	complaints acknowledged in writing within 30 days and the number
927	and percent of investigations acted upon within 90 days in
928	accordance with paragraph (m), and the number of investigations
929	exceeding the 90-day requirement. The annual report shall also
930	include an evaluation of the division's core business processes
931	and make recommendations for improvements, including statutory
932	changes. The report shall be submitted by September 30 following
933	the end of the fiscal year.
934	Section 6.  Paragraph (d) of subsection (1) of section
935	718.115, Florida Statutes, is amended to read:
936	718.115  Common expenses and common surplus.--
937	(1)
938	(d)  If so provided in the declaration, the cost of
939	communications services as defined in chapter 202, information
940	services, or Internet services a master antenna television
941	system or duly franchised cable television service obtained
942	pursuant to a bulk contract shall be deemed a common expense. If
943	the declaration does not provide for the cost of communications
944	services as defined in chapter 202, information services, or
945	Internet services a master antenna television system or duly
946	franchised cable television service obtained under a bulk
947	contract as a common expense, the board may enter into such a
948	contract, and the cost of the service will be a common expense
949	but allocated on a per-unit basis rather than a percentage basis
950	if the declaration provides for other than an equal sharing of
951	common expenses, and any contract entered into before July 1,
952	1998, in which the cost of the service is not equally divided
953	among all unit owners, may be changed by vote of a majority of
954	the voting interests present at a regular or special meeting of
955	the association, to allocate the cost equally among all units.
956	The contract shall be for a term of not less than 2 years.
957	1.  Any contract made by the board after the effective date
958	hereof for communications services as defined in chapter 202,
959	information services, or Internet services a community antenna
960	system or duly franchised cable television service may be
961	canceled by a majority of the voting interests present at the
962	next regular or special meeting of the association. Any member
963	may make a motion to cancel the said contract, but if no motion
964	is made or if such motion fails to obtain the required majority
965	at the next regular or special meeting, whichever occurs is
966	sooner, following the making of the contract, then such contract
967	shall be deemed ratified for the term therein expressed.
968	2.  Any such contract shall provide, and shall be deemed to
969	provide if not expressly set forth, that any hearing-impaired or
970	legally blind unit owner who does not occupy the unit with a
971	non-hearing-impaired or sighted person, or any unit owner
972	receiving supplemental security income under Title XVI of the
973	Social Security Act or food stamps as administered by the
974	Department of Children and Family Services pursuant to s.
975	414.31, may discontinue the cable or video service without
976	incurring disconnect fees, penalties, or subsequent service
977	charges, and, as to such units, the owners shall not be required
978	to pay any common expenses charge related to such service. If
979	fewer less than all members of an association share the expenses
980	of cable or video service television, the expense shall be
981	shared equally by all participating unit owners. The association
982	may use the provisions of s. 718.116 to enforce payment of the
983	shares of such costs by the unit owners receiving cable or video
984	service television.
985	Section 7.  Subsection (2) of section 718.1265, Florida
986	Statutes, is amended to read:
987	718.1265  Association emergency powers.--
988	(2)  The special powers authorized under subsection (1)
989	shall be limited to that time reasonably necessary to protect
990	the health, safety, and welfare of the association and the unit
991	owners and the unit owners' family members, tenants, guests,
992	agents, or invitees and shall be reasonably necessary to
993	mitigate further damage and make emergency repairs.
994	Additionally, unless 20 percent or more of the units are made
995	uninhabitable by the emergency, the special powers authorized
996	under subsection (1) shall only be exercised during the term of
997	the Governor's executive order or proclamation declaring the
998	state of emergency in the locale in which the condominium is
999	located.
1000	Section 8.  Subsection (3) of section 718.303, Florida
1001	Statutes, is amended, and subsections (4) and (5) are added to
1002	that section, to read:
1003	718.303  Obligations of owners; waiver; levy of fine
1004	against unit by association.--
1005	(3)  If a unit owner is delinquent for more than 90 days in
1006	the payment of regular or special assessments or the declaration
1007	or bylaws so provide, the association may suspend, for a
1008	reasonable time, the right of a unit owner or a unit's occupant,
1009	licensee, or invitee to use common elements, common facilities,
1010	or any other association property. This subsection does not
1011	apply to limited common elements intended to be used only by
1012	that unit, common elements that must be used to access the unit,
1013	utility services provided to the unit, parking spaces, or
1014	elevators. The association may also levy reasonable fines
1015	against a unit for the failure of the owner of the unit, or its
1016	occupant, licensee, or invitee, to comply with any provision of
1017	the declaration, the association bylaws, or reasonable rules of
1018	the association. No fine will become a lien against a unit. A No
1019	fine may not exceed $100 per violation. However, a fine may be
1020	levied on the basis of each day of a continuing violation, with
1021	a single notice and opportunity for hearing, provided that no
1022	such fine shall in the aggregate exceed $1,000. A No fine may
1023	not be levied and a suspension may not be imposed unless the
1024	association first gives except after giving reasonable notice
1025	and opportunity for a hearing to the unit owner and, if
1026	applicable, its occupant, licensee, or invitee. The hearing must
1027	be held before a committee of other unit owners who are neither
1028	board members nor persons residing in a board member's
1029	household. If the committee does not agree with the fine or
1030	suspension, the fine or suspension may not be levied or imposed.
1031	The provisions of this subsection do not apply to unoccupied
1032	units.
1033	(4)  The notice and hearing requirements of subsection (3)
1034	do not apply to the imposition of suspensions or fines against a
1035	unit owner or a unit's occupant, licensee, or invitee because of
1036	the failure to pay any amounts due the association. If such a
1037	fine or suspension is imposed, the association must levy the
1038	fine or impose a reasonable suspension at a properly noticed
1039	board meeting, and after the imposition of such fine or
1040	suspension, the association must notify the unit owner and, if
1041	applicable, the unit's occupant, licensee, or invitee by mail or
1042	hand delivery.
1043	(5)  If the declaration or bylaws so provide, an
1044	association may also suspend the voting rights of a member due
1045	to nonpayment of assessments, fines, or other charges payable to
1046	the association which are delinquent in excess of 90 days
1047	Section 9.  Subsection (4) of section 718.5012, Florida
1048	Statutes, is amended to read:
1049	718.5012  Ombudsman; powers and duties.--The ombudsman
1050	shall have the powers that are necessary to carry out the duties
1051	of his or her office, including the following specific powers:
1052	(4)  To act as liaison between the division, unit owners,
1053	boards of directors, board members, community association
1054	managers, and other affected parties. The ombudsman shall
1055	develop policies and procedures to assist unit owners, boards of
1056	directors, board members, community association managers, and
1057	other affected parties to understand their rights and
1058	responsibilities as set forth in this chapter and the
1059	condominium documents governing their respective association.
1060	The ombudsman shall coordinate and assist in the preparation and
1061	adoption of educational and reference material, and shall
1062	endeavor to coordinate with private or volunteer providers of
1063	these services, so that the availability of these resources is
1064	made known to the largest possible audience. In conjunction with
1065	the division, included in the preparation and adoption of
1066	educational and reference materials shall be the publishing and
1067	updating of a "Florida Condominium Handbook" to facilitate
1068	understanding of chapter 718, the contents of which are stated
1069	in a clear, conspicuous, and easily understandable manner. The
1070	handbook shall be made publicly available on the ombudsman's
1071	Internet website.
1072	Section 10.  Paragraph (b) of subsection (2), paragraphs
1073	(a) and (c) of subsection (5), paragraphs (b), (c), (d), (f),
1074	and (g) of subsection (6), and paragraph (d) of subsection (10)
1075	of section 720.303, Florida Statutes, are amended, and
1076	subsections (12), (13), and (14) are added to that section, to
1077	read:
1078	720.303  Association powers and duties; meetings of board;
1079	official records; budgets; financial reporting; association
1080	funds; recalls.--
1081	(2)  BOARD MEETINGS.--
1082	(b)  Members have the right to attend all meetings of the
1083	board and to speak on any matter placed on the agenda by
1084	petition of the voting interests for at least 3 minutes. The
1085	association may adopt written reasonable rules expanding the
1086	right of members to speak and governing the frequency, duration,
1087	and other manner of member statements, which rules must be
1088	consistent with this paragraph and may include a sign-up sheet
1089	for members wishing to speak. Notwithstanding any other law, the
1090	requirement that board meetings and committee meetings be open
1091	to the members is inapplicable to meetings between the board or
1092	a committee to discuss proposed or pending litigation with and
1093	the association's attorney, or with respect to meetings of the
1094	board held for the purpose of discussing personnel matters are
1095	not required to be open to the members.
1096	(5)  INSPECTION AND COPYING OF RECORDS.--The official
1097	records shall be maintained within the state and must be open to
1098	inspection and available for photocopying by members or their
1099	authorized agents at reasonable times and places within 10
1100	business days after receipt of a written request for access.
1101	This subsection may be complied with by having a copy of the
1102	official records available for inspection or copying in the
1103	community. If the association has a photocopy machine available
1104	where the records are maintained, it must provide parcel owners
1105	with copies on request during the inspection if the entire
1106	request is limited to no more than 25 pages.
1107	(a)  The failure of an association to provide access to the
1108	records within 10 business days after receipt of a written
1109	request submitted by certified mail, return receipt requested,
1110	creates a rebuttable presumption that the association willfully
1111	failed to comply with this subsection.
1112	(c)  The association may adopt reasonable written rules
1113	governing the frequency, time, location, notice, records to be
1114	inspected, and manner of inspections, but may not require impose
1115	a requirement that a parcel owner to demonstrate any proper
1116	purpose for the inspection, state any reason for the inspection,
1117	or limit a parcel owner's right to inspect records to less than
1118	one 8-hour business day per month. The association may impose
1119	fees to cover the costs of providing copies of the official
1120	records, including, without limitation, the costs of copying.
1121	The association may charge up to 50 cents per page for copies
1122	made on the association's photocopier. If the association does
1123	not have a photocopy machine available where the records are
1124	kept, or if the records requested to be copied exceed 25 pages
1125	in length, the association may have copies made by an outside
1126	vendor or association management company personnel and may
1127	charge the actual cost of copying, including any reasonable
1128	costs involving personnel fees and charges at an hourly rate for
1129	employee time to cover administrative costs to the association.
1130	The association shall maintain an adequate number of copies of
1131	the recorded governing documents, to ensure their availability
1132	to members and prospective members. Notwithstanding the
1133	provisions of this paragraph, the following records are shall
1134	not be accessible to members or parcel owners:
1135	1.  Any record protected by the lawyer-client privilege as
1136	described in s. 90.502 and any record protected by the work-
1137	product privilege, including, but not limited to, any record
1138	prepared by an association attorney or prepared at the
1139	attorney's express direction which reflects a mental impression,
1140	conclusion, litigation strategy, or legal theory of the attorney
1141	or the association and which was prepared exclusively for civil
1142	or criminal litigation or for adversarial administrative
1143	proceedings or which was prepared in anticipation of imminent
1144	civil or criminal litigation or imminent adversarial
1145	administrative proceedings until the conclusion of the
1146	litigation or adversarial administrative proceedings.
1147	2.  Information obtained by an association in connection
1148	with the approval of the lease, sale, or other transfer of a
1149	parcel.
1150	3.  Disciplinary, health, insurance, and personnel records
1151	of the association's employees.
1152	4.  Medical records of parcel owners or community
1153	residents.
1154	(6)  BUDGETS.--
1155	(b)  In addition to annual operating expenses, the budget
1156	may include reserve accounts for capital expenditures and
1157	deferred maintenance for which the association is responsible.
1158	If reserve accounts are not established pursuant to paragraph
1159	(d), funding of such reserves shall be limited to the extent
1160	that the governing documents do not limit increases in
1161	assessments, including reserves. If the budget of the
1162	association includes reserve accounts established pursuant to
1163	paragraph (d), such reserves shall be determined, maintained,
1164	and waived in the manner provided in this subsection. Once an
1165	association provides for reserve accounts pursuant to paragraph
1166	(d) in the budget, the association shall thereafter determine,
1167	maintain, and waive reserves in compliance with this subsection.
1168	The provisions of this section do not preclude the termination
1169	of a reserve account established pursuant to this paragraph upon
1170	approval of a majority of the voting interests of the
1171	association. Upon such approval, the terminating reserve account
1172	shall be removed from the budget.
1173	(c)1.  If the budget of the association does not provide
1174	for reserve accounts pursuant to paragraph (d) governed by this
1175	subsection and the association is responsible for the repair and
1176	maintenance of capital improvements that may result in a special
1177	assessment if reserves are not provided, each financial report
1178	for the preceding fiscal year required by subsection (7) shall
1179	contain the following statement in conspicuous type: THE BUDGET
1180	OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
1181	CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN
1182	SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE
1183	ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
1184	FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A
1185	MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY
1186	VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
1187	2.  If the budget of the association does provide for
1188	funding accounts for deferred expenditures, including, but not
1189	limited to, funds for capital expenditures and deferred
1190	maintenance, but such accounts are not created or established
1191	pursuant to paragraph (d), each financial report for the
1192	preceding fiscal year required under subsection (7) must also
1193	contain the following statement in conspicuous type: THE BUDGET
1194	OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED
1195	EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
1196	DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
1197	OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
1198	PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
1199	FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
1200	RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
1201	ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
1202	(d)  An association shall be deemed to have provided for
1203	reserve accounts if when reserve accounts have been initially
1204	established by the developer or if when the membership of the
1205	association affirmatively elects to provide for reserves. If
1206	reserve accounts are not initially provided for by the
1207	developer, the membership of the association may elect to do so
1208	upon the affirmative approval of not less than a majority of the
1209	total voting interests of the association. Such approval may be
1210	obtained attained by vote of the members at a duly called
1211	meeting of the membership or by the upon a written consent of
1212	executed by not less than a majority of the total voting
1213	interests in the community. The approval action of the
1214	membership shall state that reserve accounts shall be provided
1215	for in the budget and shall designate the components for which
1216	the reserve accounts are to be established. Upon approval by the
1217	membership, the board of directors shall include provide for the
1218	required reserve accounts for inclusion in the budget in the
1219	next fiscal year following the approval and in each year
1220	thereafter. Once established as provided in this subsection, the
1221	reserve accounts shall be funded or maintained or shall have
1222	their funding waived in the manner provided in paragraph (f).
1223	(f)  After one or more Once a reserve account or reserve
1224	accounts are established, the membership of the association,
1225	upon a majority vote at a meeting at which a quorum is present,
1226	may provide for no reserves or less reserves than required by
1227	this section. If a meeting of the unit owners has been called to
1228	determine whether to waive or reduce the funding of reserves and
1229	no such result is achieved or a quorum is not present, the
1230	reserves as included in the budget shall go into effect. After
1231	the turnover, the developer may vote its voting interest to
1232	waive or reduce the funding of reserves. Any vote taken pursuant
1233	to this subsection to waive or reduce reserves is shall be
1234	applicable only to one budget year.
1235	(g)  Funding formulas for reserves authorized by this
1236	section shall be based on either a separate analysis of each of
1237	the required assets or a pooled analysis of two or more of the
1238	required assets.
1239	1.  If the association maintains separate reserve accounts
1240	for each of the required assets, the amount of the contribution
1241	to each reserve account is shall be the sum of the following two
1242	calculations:
1243	a.  The total amount necessary, if any, to bring a negative
1244	component balance to zero.
1245	b.  The total estimated deferred maintenance expense or
1246	estimated replacement cost of the reserve component less the
1247	estimated balance of the reserve component as of the beginning
1248	of the period for which the budget will be in effect. The
1249	remainder, if greater than zero, shall be divided by the
1250	estimated remaining useful life of the component.
1251
1252	The formula may be adjusted each year for changes in estimates
1253	and deferred maintenance performed during the year and may
1254	include factors such as inflation and earnings on invested
1255	funds.
1256	2.  If the association maintains a pooled account of two or
1257	more of the required reserve assets, the amount of the
1258	contribution to the pooled reserve account as disclosed on the
1259	proposed budget may shall not be less than that required to
1260	ensure that the balance on hand at the beginning of the period
1261	for which the budget will go into effect plus the projected
1262	annual cash inflows over the remaining estimated useful life of
1263	all of the assets that make up the reserve pool are equal to or
1264	greater than the projected annual cash outflows over the
1265	remaining estimated useful lives of all of the assets that make
1266	up the reserve pool, based on the current reserve analysis. The
1267	projected annual cash inflows may include estimated earnings
1268	from investment of principal and accounts receivable minus the
1269	allowance for doubtful accounts. The reserve funding formula may
1270	shall not include any type of balloon payments.
1271	(10)  RECALL OF DIRECTORS.--
1272	(d)  If the board determines not to certify the written
1273	agreement or written ballots to recall a director or directors
1274	of the board or does not certify the recall by a vote at a
1275	meeting, the board shall, within 5 full business days after the
1276	meeting, initiate file with the department a petition for
1277	binding arbitration pursuant to the applicable procedures in s.
1278	720.507 ss. 718.112(2)(j) and 718.1255 and the rules adopted
1279	thereunder. For the purposes of this section, the members who
1280	voted at the meeting or who executed the agreement in writing
1281	shall constitute one party under the petition for arbitration.
1282	If the arbitrator certifies the recall as to any director or
1283	directors of the board, the recall will be effective upon
1284	mailing of the final order of arbitration to the association.
1285	The director or directors so recalled shall deliver to the board
1286	any and all records of the association in their possession
1287	within 5 full business days after the effective date of the
1288	recall.
1289	(12)  COMPENSATION PROHIBITED.--A director, officer, or
1290	committee member of the association may not receive directly or
1291	indirectly any salary or compensation from the association for
1292	the performance of duties as a director, officer, or committee
1293	member and may not in any other way benefit financially from
1294	service to the association. This subsection does not preclude:
1295	(a)  Participation by such person in a financial benefit
1296	accruing to all or a significant number of members as a result
1297	of actions lawfully taken by the board or a committee of which
1298	he or she is a member, including, but not limited to, routine
1299	maintenance, repair, or replacement of community assets.
1300	(b)  Reimbursement for out-of-pocket expenses incurred by
1301	such person on behalf of the association, subject to approval in
1302	accordance with procedures established by the association's
1303	governing documents or, in the absence of such procedures, in
1304	accordance with an approval process established by the board.
1305	(c)  Any recovery of insurance proceeds derived from a
1306	policy of insurance maintained by the association for the
1307	benefit of its members.
1308	(d)  Any fee or compensation authorized in the governing
1309	documents.
1310	(e)  Any fee or compensation authorized in advance by a
1311	vote of a majority of the voting interests voting in person or
1312	by proxy at a meeting of the members.
1313	(f)  A developer or its representative from serving as a
1314	director, officer, or committee member of the association and
1315	benefiting financially from service to the association.
1316	(13)  BORROWING.--The borrowing of funds or committing to a
1317	line of credit by the board of administration shall be
1318	considered a special assessment, and any meeting of the board of
1319	administration to discuss such matters shall be noticed as
1320	provided in paragraph (2)(c). The board shall not have the
1321	authority to enter into a line of credit or borrow funds for any
1322	purpose unless the specific use of the funds from the line of
1323	credit or loan is set forth in the notice of meeting with the
1324	same specificity as required for a special assessment or unless
1325	the borrowing or line of credit has received the prior approval
1326	of not less than two-thirds of the voting interests of the
1327	association.
1328	(14)  TRANSFER FEES.--No charge may be made by the
1329	association or anybody thereof in connection with the sale,
1330	mortgage, lease, sublease, or other transfer of a parcel.
1331	Nothing in this subsection shall be construed to prohibit an
1332	association from requiring as a condition to permitting the
1333	letting or renting of a parcel, when the association has such
1334	authority in the documents, the depositing into an escrow
1335	account maintained by the association a security deposit in an
1336	amount not to exceed the equivalent of one month's rent. The
1337	security deposit shall protect against damages to the common
1338	areas or association property. Within 15 days after a tenant
1339	vacates the premises, the association shall refund the full
1340	security deposit or give written notice to the tenant of any
1341	claim made against the security. Disputes under this subsection
1342	shall be handled in the same fashion as disputes concerning
1343	security deposits under s. 83.49.
1344	Section 11.  Paragraph (a) of subsection (2) of section
1345	720.304, Florida Statutes, is amended to read:
1346	720.304  Right of owners to peaceably assemble; display of
1347	flag; SLAPP suits prohibited.--
1348	(2)(a)  Any homeowner may display within the boundaries of
1349	the homeowner's parcel one portable, removable United States
1350	flag or official flag of the State of Florida in a respectful
1351	manner, and one portable, removable official flag, in a
1352	respectful way and, on Armed Forces Day, Memorial Day, Flag Day,
1353	Independence Day, and Veterans' Day, may display in a respectful
1354	way portable, removable official flags manner, not larger than 4
1355	1/2 feet by 6 feet, that represent which represents the United
1356	States Army, Navy, Air Force, Marine Corps, or Coast Guard, or a
1357	POW-MIA flag, regardless of any declaration covenants,
1358	restrictions, bylaws, rules, or requirements dealing with flags
1359	or decorations of the association.
1360	Section 12.  Subsection (2) of section 720.305, Florida
1361	Statutes, is amended to read:
1362	720.305  Obligations of members; remedies at law or in
1363	equity; levy of fines and suspension of use rights.--
1364	(2)  If the governing documents so provide, an association
1365	may suspend, for a reasonable period of time, the rights of a
1366	member or a member's tenants, guests, or invitees, or both, to
1367	use common areas and facilities and may levy reasonable fines of
1368	up to, not to exceed $100 per violation, against any member or
1369	any tenant, guest, or invitee. A fine may be levied on the basis
1370	of each day of a continuing violation, with a single notice and
1371	opportunity for hearing, except that no such fine may shall
1372	exceed $1,000 in the aggregate unless otherwise provided in the
1373	governing documents. A fine of less than $1,000 may shall not
1374	become a lien against a parcel. In any action to recover a fine,
1375	the prevailing party is entitled to collect its reasonable
1376	attorney's fees and costs from the nonprevailing party as
1377	determined by the court.
1378	(a)  A fine or suspension may not be imposed without notice
1379	of at least 14 days' notice days to the person sought to be
1380	fined or suspended and an opportunity for a hearing before a
1381	committee of at least three members appointed by the board who
1382	are not officers, directors, or employees of the association, or
1383	the spouse, parent, child, brother, or sister of an officer,
1384	director, or employee. If the committee, by majority vote, does
1385	not approve a proposed fine or suspension, it may not be
1386	imposed.
1387	(b)  The requirements of this subsection do not apply to
1388	the imposition of suspensions or fines upon any member because
1389	of the failure of the member to pay assessments or other charges
1390	when due if such action is authorized by the governing
1391	documents.
1392	(c)  Suspension of common-area-use rights do shall not
1393	impair the right of an owner or tenant of a parcel to have
1394	vehicular and pedestrian ingress to and egress from the parcel,
1395	including, but not limited to, the right to park.
1396	Section 13.  Subsections (8) and (9) of section 720.306,
1397	Florida Statutes, are amended to read:
1398	720.306  Meetings of members; voting and election
1399	procedures; amendments.--
1400	(8)  PROXY VOTING.--The members have the right, unless
1401	otherwise provided in this subsection or in the governing
1402	documents, to vote in person or by proxy.
1403	(a)  To be valid, a proxy must be dated, must state the
1404	date, time, and place of the meeting for which it was given, and
1405	must be signed by the authorized person who executed the proxy.
1406	A proxy is effective only for the specific meeting for which it
1407	was originally given, as the meeting may lawfully be adjourned
1408	and reconvened from time to time, and automatically expires 90
1409	days after the date of the meeting for which it was originally
1410	given. A proxy is revocable at any time at the pleasure of the
1411	person who executes it. If the proxy form expressly so provides,
1412	any proxy holder may appoint, in writing, a substitute to act in
1413	his or her place.
1414	(b)  If the governing documents permit voting by secret
1415	ballot by members who are not in attendance at a meeting of the
1416	members for the election of directors, such ballots shall be
1417	placed in an inner envelope with no identifying markings and
1418	mailed or delivered to the association in an outer envelope
1419	bearing identifying information reflecting the name of the
1420	member, the lot or parcel for which the vote is being cast, and
1421	the signature of the lot or parcel owner casting that ballot.
1422	After the eligibility of the member to vote and confirmation
1423	that no other ballot has been submitted for that lot or parcel,
1424	the inner envelope shall be removed from the outer envelope
1425	bearing the identification information, placed with the ballots
1426	which were personally cast, and opened when the ballots are
1427	counted. If more than one ballot is submitted for a lot or
1428	parcel, the ballots for that lot or parcel shall be
1429	disqualified. Any vote by ballot received after the closing of
1430	the balloting may not be considered.
1431	(9)  ELECTIONS; BOARD MEMBER CERTIFICATION.--
1432	(a)  Elections of directors must be conducted in accordance
1433	with the procedures set forth in the governing documents of the
1434	association. All members of the association are shall be
1435	eligible to serve on the board of directors, and a member may
1436	nominate himself or herself as a candidate for the board at a
1437	meeting where the election is to be held or, if the election
1438	process allows voting by absentee ballot, in advance of the
1439	balloting. Except as otherwise provided in the governing
1440	documents, boards of directors must be elected by a plurality of
1441	the votes cast by eligible voters. Any election dispute between
1442	a member and an association must be submitted to mandatory
1443	binding arbitration with the division. Such proceedings shall be
1444	conducted in the manner provided by s. 720.507 718.1255 and the
1445	procedural rules adopted by the division.
1446	(b)  Within 30 days after being elected to the board of
1447	directors, a new director shall certify in writing to the
1448	secretary of the association that he or she has read the
1449	association's declarations of covenants and restrictions,
1450	articles of incorporation, bylaws, and current written policies
1451	and that he or she will work to uphold each to the best of his
1452	or her ability and will faithfully discharge his or her
1453	fiduciary responsibility to the association's members. Failure
1454	to timely file such statement shall automatically disqualify the
1455	director from service on the association's board of directors.
1456	The secretary shall cause the association to retain a director's
1457	certification for inspection by the members for 5 years after a
1458	director's election. Failure to have such certification on file
1459	does not affect the validity of any appropriate action.
1460	Section 14.  Section (8) is added to section 720.3085,
1461	Florida Statutes, to read:
1462	720.3085  Payment for assessments; lien claims.--
1463	(8)  During the pendency of any foreclosure action of a
1464	parcel within a homeowners' association, if the home is occupied
1465	by a tenant and the parcel owner is delinquent in the payment of
1466	regular assessments, the association may demand that the tenant
1467	pay to the association the future regular assessments related to
1468	the parcel. The demand shall be continuing in nature, and upon
1469	demand the tenant shall continue to pay the regular assessments
1470	to the association until the association releases the tenant or
1471	the tenant discontinues tenancy in the unit. The association
1472	shall mail written notice to the parcel owner of the
1473	association's demand that the tenant pay regular assessments to
1474	the association. The tenant shall not be liable for increases in
1475	the amount of the regular assessment due unless the tenant was
1476	reasonably notified of the increase prior to the day that the
1477	rent is due. The tenant shall be given a credit against rents
1478	due to the parcel owner in the amount of assessments paid to the
1479	association. The association shall, upon request, provide the
1480	tenant with written receipts for payments made. The association
1481	may issue notices under s. 83.56 and may sue for eviction under
1482	ss. 83.59-83.625 as if the association were a landlord under
1483	part II of chapter 83 should the tenant fail to pay an
1484	assessment. However, the association shall not otherwise be
1485	considered a landlord under chapter 83 and shall specifically
1486	not have any duty under s. 83.51. The tenant shall not, by
1487	virtue of payment of assessments, have any of the rights of a
1488	unit owner to vote in any election or to examine the books and
1489	records of the association. A court may supersede the effect of
1490	this subsection by appointing a receiver.
1491	Section 15.  Section 720.3095, Florida Statutes, is created
1492	to read:
1493	720.3095  Management and maintenance agreements entered
1494	into by the association.--
1495	(1)  A written contract between a party contracting to
1496	provide maintenance or management services and an association
1497	which provides for operation, maintenance, or management of a
1498	homeowners' association is not valid or enforceable unless the
1499	contract:
1500	(a)  Specifies the services, obligations, and
1501	responsibilities of the party contracting to provide maintenance
1502	or management services to the unit owners.
1503	(b)  Specifies those costs incurred in the performance of
1504	those services, obligations, or responsibilities which are to be
1505	reimbursed by the association to the party contracting to
1506	provide maintenance or management services.
1507	(c)  Provides an indication of how often each service,
1508	obligation, or responsibility is to be performed, whether stated
1509	for each service, obligation, or responsibility or in categories
1510	thereof.
1511	(d)  Specifies a minimum number of personnel to be employed
1512	by the party contracting to provide maintenance or management
1513	services for the purpose of providing service to the
1514	association.
1515	(e)  Discloses any financial or ownership interest which
1516	the developer, if the developer is in control of the
1517	association, holds with regard to the party contracting to
1518	provide maintenance or management services.
1519	(f)  Discloses any financial or ownership interest a board
1520	member or any party providing maintenance or management services
1521	to the association holds with the contracting party.
1522	(2)  In any case in which the party contracting to provide
1523	maintenance or management services fails to provide such
1524	services in accordance with the contract, the association is
1525	authorized to procure such services from some other party and
1526	shall be entitled to collect any fees or charges paid for
1527	services performed by another party from the party contracting
1528	to provide maintenance or management services.
1529	(3)  Any services or obligations not stated on the face of
1530	the contract shall be unenforceable.
1531	(4)  Notwithstanding the fact that certain vendors contract
1532	with associations to maintain equipment or property which is
1533	made available to serve unit owners, it is the intent of the
1534	Legislature that this section applies to contracts for
1535	maintenance or management services for which the association
1536	pays compensation. This section does not apply to contracts for
1537	services or property made available for the convenience of unit
1538	owners by lessees or licensees of the association, such as coin-
1539	operated laundry, food, soft drink, or telephone vendors; cable
1540	television operators; retail store operators; businesses;
1541	restaurants; or similar vendors.
1542	Section 16.  Section 720.3096, Florida Statutes, is created
1543	to read:
1544	720.3096  Limitation on agreements entered into by the
1545	association.--As to any contract or other transaction between an
1546	association and one or more of its directors or any other
1547	corporation, firm, association, or entity in which one or more
1548	of its directors are directors or officers or are financially
1549	interested:
1550	(1)  The association shall comply with the requirements of
1551	s. 617.0832.
1552	(2)  The disclosures required by s. 617.0832 shall be
1553	entered into the written minutes of the meeting.
1554	(3)  Approval of the contract or other transaction shall
1555	require an affirmative vote of two-thirds of the directors
1556	present.
1557	(4)  At the next regular or special meeting of the members,
1558	the existence of the contract or other transaction shall be
1559	disclosed to the members. Upon motion of any member, the
1560	contract or transaction shall be brought up for a vote and may
1561	be canceled by a majority vote of the members present. If the
1562	members cancel the contract, the association shall be liable for
1563	only the reasonable value of goods and services provided up to
1564	the time of cancellation and shall not be liable for any
1565	termination fee, liquidated damages, or other form of penalty
1566	for such cancellation.
1567	Section 17.  Paragraph (a) of subsection (1) of section
1568	720.401, Florida Statutes, is amended to read:
1569	720.401  Prospective purchasers subject to association
1570	membership requirement; disclosure required; covenants;
1571	assessments; contract cancellation.--
1572	(1)(a)  A prospective parcel owner in a community must be
1573	presented a disclosure summary before executing the contract for
1574	sale. The disclosure summary must be in a form substantially
1575	similar to the following form:
1576
1577	DISCLOSURE SUMMARY
1578	FOR
1579	(NAME OF COMMUNITY)
1580
1581	1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
1582	BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
1583	2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
1584	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
1585	COMMUNITY.
1586	3.  YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
1587	ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
1588	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL
1589	ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
1590	ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
1591	IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
1592	4.  YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
1593	RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
1594	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
1595	5.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
1596	LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION MAY COULD RESULT
1597	IN A LIEN ON YOUR PROPERTY.
1598	6.  THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
1599	FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
1600	OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
1601	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
1602	7.  IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE
1603	DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
1604	RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
1605	MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
1606	8.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
1607	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
1608	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
1609	DOCUMENTS BEFORE PURCHASING PROPERTY.
1610	9.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
1611	CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
1612	PROPERTY IS LOCATED, OR, IF ARE NOT RECORDED, AND CAN BE
1613	OBTAINED FROM THE DEVELOPER.
1614	10.  THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES
1615	OR FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR THE
1616	PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT
1617	INFRASTRUCTURE OR OTHER IMPROVEMENTS.
1618	11.  YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS
1619	OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE
1620	UP TO THE TIME OF TRANSFER OF TITLE.
1621
1622	DATE:     PURCHASER:
1623	PURCHASER:
1624
1625	The disclosure must be supplied by the developer, or by the
1626	parcel owner if the sale is by an owner that is not the
1627	developer. Any contract or agreement for sale shall refer to and
1628	incorporate the disclosure summary and shall include, in
1629	prominent language, a statement that the potential buyer should
1630	not execute the contract or agreement until he or she has they
1631	have received and read the disclosure summary required by this
1632	section.
1633	Section 18.  Paragraph (d) of subsection (1) of section
1634	34.01, Florida Statutes, is amended to read:
1635	34.01  Jurisdiction of county court.--
1636	(1)  County courts shall have original jurisdiction:
1637	(d)  Of disputes occurring in the homeowners' associations
1638	as described in part IV of chapter 720 s. 720.311(2)(a), which
1639	shall be concurrent with jurisdiction of the circuit courts.
1640	Section 19.  Subsection (2) of section 720.302, Florida
1641	Statutes, is amended to read:
1642	720.302  Purposes, scope, and application.--
1643	(2)  The Legislature recognizes that it is not in the best
1644	interest of homeowners' associations or the individual
1645	association members thereof to create or impose a bureau or
1646	other agency of state government to regulate the affairs of
1647	homeowners' associations. However, in accordance with part IV of
1648	this chapter s. 720.311, the Legislature finds that homeowners'
1649	associations and their individual members will benefit from an
1650	expedited alternative process for resolution of election and
1651	recall disputes and presuit mediation of other disputes
1652	involving covenant enforcement in homeowner's associations and
1653	deed-restricted communities using the procedures provided in
1654	part IV of and authorizes the department to hear, administer,
1655	and determine these disputes as more fully set forth in this
1656	chapter. Further, the Legislature recognizes that certain
1657	contract rights have been created for the benefit of homeowners'
1658	associations and members thereof as well as deed-restricted
1659	communities before the effective date of this act and that part
1660	IV of this chapter is ss. 720.301-720.407 are not intended to
1661	impair such contract rights, including, but not limited to, the
1662	rights of the developer to complete the community as initially
1663	contemplated.
1664	Section 20.  Section 720.311, Florida Statutes, is
1665	repealed.
1666	Section 21.  Part IV of chapter 720, Florida Statutes, to
1667	be entitled "Dispute Resolution," consisting of sections
1668	720.501, 720.502, 720.503, 720.504, 720.505, 720.506, 720.507,
1669	720.508, 720.509, and 720.510, is created to read:
1670	720.501  Short title.--This part may be cited as the "Home
1671	Court Advantage Dispute Resolution Act."
1672	720.502  Legislative findings.--The Legislature finds that
1673	alternative dispute resolution has made progress in reducing
1674	court dockets and trials and in offering a more efficient, cost-
1675	effective option to litigation.
1676	720.503  Applicability of this part.--
1677	(1)  Unless otherwise provided in this part, before a
1678	dispute described in this part between a homeowners' association
1679	and a parcel owner or owners, or a dispute between parcel owners
1680	within the same homeowners' association, may be filed in court,
1681	the dispute is subject to presuit mediation pursuant to s.
1682	720.505 or presuit arbitration pursuant to s. 720.507, at the
1683	option of the aggrieved party who initiates the first formal
1684	action of alternative dispute resolution under this part. The
1685	parties may mutually agree to participate in both presuit
1686	mediation and presuit arbitration prior to suit being filed by
1687	either party.
1688	(2)  Unless otherwise provided in this part, the mediation
1689	and arbitration provisions of this part are limited to disputes
1690	between an association and a parcel owner or owners or between
1691	parcel owners regarding the use of or changes to the parcel or
1692	the common areas under the governing documents and other
1693	disputes involving violations of the recorded declaration of
1694	covenants or other governing documents, disputes arising
1695	concerning enforcement of the governing documents or any
1696	amendments thereto, and disputes involving access to the
1697	official records of the association. A dispute concerning title
1698	to any parcel or common area, interpretation or enforcement of
1699	any warranty, the levy of a fee or assessment, the collection of
1700	an assessment levied against a party, the eviction or other
1701	removal of a tenant from a parcel, alleged breaches of fiduciary
1702	duty by one or more directors, or any action to collect mortgage
1703	indebtedness or to foreclosure a mortgage shall not be subject
1704	to the provisions of this part.
1705	(3)  All disputes arising after the effective date of this
1706	part involving the election of the board of directors for an
1707	association or the recall of any member of the board or officer
1708	of the association shall not be eligible for presuit mediation
1709	under s. 720.505, but shall be subject to the provisions
1710	concerning presuit arbitration under s. 720.507.
1711	(4)  In any dispute subject to presuit mediation or presuit
1712	arbitration under this part for which emergency relief is
1713	required, a motion for temporary injunctive relief may be filed
1714	with the court without first complying with the presuit
1715	mediation or presuit arbitration requirements of this part.
1716	After any issues regarding emergency or temporary relief are
1717	resolved, the court may refer the parties to a mediation program
1718	administered by the courts or require mediation or arbitration
1719	under this part.
1720	(5)  The mailing of a statutory notice of presuit mediation
1721	or presuit arbitration as provided in this part shall toll the
1722	applicable statute of limitations during the pendency of the
1723	mediation or arbitration and for a period of 30 days following
1724	the conclusion of either proceeding. The 30-day period shall
1725	start upon the filing of the mediator's notice of impasse or the
1726	arbitrator's written arbitration award. If the parties mutually
1727	agree to participate in both presuit mediation and presuit
1728	arbitration under this part, the tolling of the applicable
1729	statute of limitations for each such alternative dispute
1730	resolution proceeding shall be consecutive.
1731	720.504  Notice of dispute.--Prior to giving the statutory
1732	notice to proceed under presuit mediation or presuit arbitration
1733	under this part, the aggrieved association or parcel owner shall
1734	first provide written notice of the dispute to the responding
1735	party in the manner provided by this section.
1736	(1)  The notice of dispute shall be delivered to the
1737	responding party by certified mail, return receipt requested, or
1738	the notice of dispute may be hand delivered, and the person
1739	making delivery shall file with their notice of mediation either
1740	the proof of receipt of mailing or an affidavit stating the date
1741	and time of the delivery of the notice of dispute. If the notice
1742	is delivered by certified mail, return receipt requested, and
1743	the responding party fails or refuses to accept delivery, notice
1744	shall be considered properly delivered for purposes of this
1745	section on the date of the first attempted delivery.
1746	(2)  The notice of dispute shall state with specificity the
1747	nature of the dispute, including the date, time, and location of
1748	each event that is the subject of the dispute and the action
1749	requested to resolve the dispute. The notice shall also include
1750	the text of any provision in the governing documents, including
1751	the rules and regulations, of the association which form the
1752	basis of the dispute.
1753	(3)  Unless the parties otherwise agree in writing to a
1754	longer time period, the party receiving the notice of dispute
1755	shall have 10 days following the date of receipt of notice to
1756	resolve the dispute. If the alleged dispute has not been
1757	resolved within the 10-day period, the aggrieved party may
1758	proceed under this part at any time thereafter within the
1759	applicable statute of limitations.
1760	(4)  A copy of the notice and the text of the provision in
1761	the governing documents, or the rules and regulations, of the
1762	association which are the basis of the dispute, along with proof
1763	of service of the notice of dispute and a copy of any written
1764	responses received from the responding party, shall be included
1765	as an exhibit to any demand for mediation or arbitration under
1766	this part.
1767	720.505  Presuit mediation.--
1768	(1)  Disputes between an association and a parcel owner or
1769	owners and between parcel owners must be submitted to presuit
1770	mediation before the dispute may be filed in court; or, at the
1771	election of the party initiating the presuit procedures, such
1772	dispute may be submitted to presuit arbitration pursuant to s.
1773	720.507 before the dispute may be filed in court. An aggrieved
1774	party who elects to use the presuit mediation procedure under
1775	this section shall serve on the responding party a written
1776	notice of presuit mediation in substantially the following form:
1777
1778	STATUTORY NOTICE OF PRESUIT MEDIATION
1779
1780	THE ALLEGED AGGRIEVED PARTY, ____________________,
1781	HEREBY DEMANDS THAT ____________________, AS THE
1782	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
1783	MEDIATION IN CONNECTION WITH THE FOLLOWING DISPUTE(S)
1784	WITH YOU, WHICH BY STATUTE ARE OF A TYPE THAT ARE
1785	SUBJECT TO PRESUIT MEDIATION:
1786
1787	ATTACHED IS A COPY OF THE PRIOR NOTICE OF VIOLATION
1788	WHICH DETAILS THE SPECIFIC NATURE OF THE DISPUTE(S) TO
1789	BE MEDIATED AND THE AUTHORITY SUPPORTING A FINDING OF
1790	A VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
1791	LIMITED TO, THE APPLICABLE PROVISIONS OF THE GOVERNING
1792	DOCUMENTS OF THE ASSOCIATION BELIEVED TO APPLY TO THE
1793	DISPUTE BETWEEN THE PARTIES, AND A COPY OF THE NOTICE
1794	YOU RECEIVED OR REFUSED AND COPIES OF ANY WRITTEN
1795	RESPONSE(S) RECEIVED FROM YOU ABOUT THIS DISPUTE.
1796
1797	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
1798	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
1799	MEDIATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
1800	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
1801	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
1802	MEDIATION WITH A NEUTRAL THIRD-PARTY MEDIATOR IN ORDER
1803	TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
1804	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
1805	PARTICIPATE IN THIS PROCESS. UNLESS YOU RESPOND TO
1806	THIS NOTICE BY FILING WITH THE AGGRIEVED PARTY A
1807	NOTICE OF OPTING OUT AND DEMAND FOR ARBITRATION UNDER
1808	S. 720.506, FLORIDA STATUTES, YOUR FAILURE TO
1809	PARTICIPATE IN THE MEDIATION PROCESS MAY RESULT IN A
1810	LAWSUIT BEING FILED IN COURT AGAINST YOU WITHOUT
1811	FURTHER NOTICE.
1812
1813	THE PROCESS OF MEDIATION INVOLVES A SUPERVISED
1814	NEGOTIATION PROCESS IN WHICH A TRAINED, NEUTRAL THIRD-
1815	PARTY MEDIATOR MEETS WITH BOTH PARTIES AND ASSISTS
1816	THEM IN EXPLORING POSSIBLE OPPORTUNITIES FOR RESOLVING
1817	PART OR ALL OF THE DISPUTE. BY AGREEING TO PARTICIPATE
1818	IN PRESUIT MEDIATION, YOU ARE NOT BOUND IN ANY WAY TO
1819	CHANGE YOUR POSITION. FURTHERMORE, THE MEDIATOR HAS NO
1820	AUTHORITY TO MAKE ANY DECISIONS IN THIS MATTER OR TO
1821	DETERMINE WHO IS RIGHT OR WRONG AND MERELY ACTS AS A
1822	FACILITATOR TO ENSURE THAT EACH PARTY UNDERSTANDS THE
1823	POSITION OF THE OTHER PARTY AND THAT ALL OPTIONS FOR
1824	REASONABLE SETTLEMENT ARE FULLY EXPLORED.
1825
1826	IF AN AGREEMENT IS REACHED, IT SHALL BE REDUCED TO
1827	WRITING AND BECOME A BINDING AND ENFORCEABLE CONTRACT
1828	BETWEEN THE PARTIES. A RESOLUTION OF ONE OR MORE
1829	DISPUTES IN THIS FASHION AVOIDS THE NEED TO LITIGATE
1830	THESE ISSUES IN COURT. THE FAILURE TO REACH AN
1831	AGREEMENT, OR THE FAILURE OF A PARTY TO PARTICIPATE IN
1832	THE PROCESS, RESULTS IN THE MEDIATOR DECLARING AN
1833	IMPASSE IN THE MEDIATION, AFTER WHICH THE AGGRIEVED
1834	PARTY MAY PROCEED TO FILE A LAWSUIT ON ALL
1835	OUTSTANDING, UNSETTLED DISPUTES. IF YOU HAVE FAILED OR
1836	REFUSED TO PARTICIPATE IN THE ENTIRE MEDIATION
1837	PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER
1838	ATTORNEY'S FEES IF YOU PREVAIL IN A SUBSEQUENT COURT
1839	PROCEEDING INVOLVING THE SAME DISPUTE.
1840
1841	THE AGGRIEVED PARTY HAS SELECTED FROM A LIST OF
1842	ELIGIBLE, QUALIFIED MEDIATORS AT LEAST FIVE CERTIFIED
1843	MEDIATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
1844	NEUTRAL AND QUALIFIED TO MEDIATE THE DISPUTE. YOU HAVE
1845	THE RIGHT TO SELECT ANY ONE OF THESE MEDIATORS. THE
1846	FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR MORE
1847	OF THE LISTED MEDIATORS DOES NOT MEAN THAT THE
1848	MEDIATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
1849	FACILITATOR. THE NAMES OF THE MEDIATORS THAT THE
1850	AGGRIEVED PARTY HEREBY SUBMITS TO YOU FROM WHOM YOU
1851	MAY CHOOSE ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE
1852	NUMBERS, AND HOURLY RATES ARE AS FOLLOWS:
1853
1854	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
1855	HOURLY RATES OF THE MEDIATORS. OTHER PERTINENT
1856	INFORMATION ABOUT THE BACKGROUND OF THE MEDIATORS MAY
1857	BE INCLUDED AS AN ATTACHMENT.)
1858
1859	YOU MAY CONTACT THE OFFICES OF THESE MEDIATORS TO
1860	CONFIRM THAT EACH OF THE ABOVE-LISTED MEDIATORS WILL
1861	BE NEUTRAL AND WILL NOT SHOW ANY FAVORITISM TOWARD
1862	EITHER PARTY. UNLESS OTHERWISE AGREED TO BY THE
1863	PARTIES, PART IV OF CHAPTER 720, FLORIDA STATUTES,
1864	REQUIRES THAT THE PARTIES SHARE THE COSTS OF PRESUIT
1865	MEDIATION EQUALLY, INCLUDING THE FEE CHARGED BY THE
1866	MEDIATOR. AN AVERAGE MEDIATION MAY REQUIRE 3 TO 4
1867	HOURS OF THE MEDIATOR'S TIME, INCLUDING SOME
1868	PREPARATION TIME, AND THE PARTIES WOULD NEED TO
1869	EQUALLY SHARE THE MEDIATOR'S FEES AS WELL AS BE
1870	RESPONSIBLE FOR ALL OF THEIR OWN ATTORNEY'S FEES IF
1871	THEY CHOOSE TO EMPLOY AN ATTORNEY IN CONNECTION WITH
1872	THE MEDIATION. HOWEVER, USE OF AN ATTORNEY IS NOT
1873	REQUIRED AND IS AT THE OPTION OF EACH PARTY. THE
1874	MEDIATORS MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR
1875	ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY
1876	HEREBY AGREES TO PAY OR PREPAY ONE-HALF OF THE
1877	SELECTED MEDIATOR'S ESTIMATED FEES AND TO FORWARD THIS
1878	AMOUNT OR SUCH OTHER REASONABLE ADVANCE DEPOSITS AS
1879	THE MEDIATOR REQUIRES FOR THIS PURPOSE UPON THE
1880	SELECTION OF THE MEDIATOR. ANY FUNDS DEPOSITED WILL BE
1881	RETURNED TO YOU IF THESE FUNDS ARE IN EXCESS OF YOUR
1882	SHARE OF THE MEDIATOR FEES INCURRED.
1883
1884	TO BEGIN YOUR PARTICIPATION IN PRESUIT MEDIATION TO
1885	TRY TO RESOLVE THE DISPUTE WITH YOU AND AVOID FURTHER
1886	LEGAL ACTION, PLEASE SIGN BELOW AND CLEARLY INDICATE
1887	WHICH MEDIATOR IS ACCEPTABLE TO YOU FROM THE FIVE
1888	MEDIATORS LISTED BY THE AGGRIEVED PARTY ABOVE.
1889
1890	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
1891	OF PRESUIT MEDIATION WITHIN 20 DAYS. IN YOUR RESPONSE
1892	YOU MUST PROVIDE A LISTING OF AT LEAST THREE DATES AND
1893	TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE
1894	MEDIATION THAT ARE WITHIN 90 DAYS AFTER THE POSTMARKED
1895	DATE OF THE MAILING OF THIS NOTICE OF PRESUIT
1896	MEDIATION OR WITHIN 90 DAYS AFTER THE DATE YOU WERE
1897	SERVED WITH A COPY OF THIS NOTICE. THE AGGRIEVED PARTY
1898	WILL THEN ASK THE MEDIATOR TO SCHEDULE A MUTUALLY
1899	CONVENIENT TIME AND PLACE FOR THE MEDIATION CONFERENCE
1900	TO BE HELD. IF YOU DO NOT PROVIDE A LIST OF AVAILABLE
1901	DATES AND TIMES, THE MEDIATOR IS AUTHORIZED TO
1902	SCHEDULE A MEDIATION CONFERENCE WITHOUT TAKING YOUR
1903	SCHEDULE AND CONVENIENCE INTO CONSIDERATION. IN NO
1904	EVENT SHALL THE MEDIATION CONFERENCE BE LATER THAN 90
1905	DAYS AFTER THE NOTICE OF PRESUIT MEDIATION WAS FIRST
1906	SERVED UNLESS ALL PARTIES MUTUALLY AGREE OTHERWISE. IN
1907	THE EVENT THAT YOU FAIL TO RESPOND WITHIN 20 DAYS
1908	AFTER THE DATE OF THIS NOTICE, FAIL TO PROVIDE THE
1909	MEDIATOR WITH DATES AND TIMES IN WHICH YOU ARE
1910	AVAILABLE FOR THE MEDIATION CONFERENCE, FAIL TO AGREE
1911	TO AT LEAST ONE OF THE MEDIATORS THAT THE AGGRIEVED
1912	PARTY HAS LISTED, FAIL TO PAY OR PREPAY TO THE
1913	MEDIATOR ONE-HALF OF THE COSTS INVOLVED, OR FAIL TO
1914	APPEAR AND PARTICIPATE AT THE SCHEDULED MEDIATION, THE
1915	AGGRIEVED PARTY WILL BE AUTHORIZED TO PROCEED WITH THE
1916	FILING OF A LAWSUIT AGAINST YOU WITHOUT FURTHER
1917	NOTICE. IN ANY SUBSEQUENT COURT ACTION, THE AGGRIEVED
1918	PARTY MAY SEEK AN AWARD OF REASONABLE ATTORNEY'S FEES
1919	AND COSTS INCURRED IN ATTEMPTING TO OBTAIN MEDIATION.
1920
1921	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
1922	LAW, YOUR RESPONSE MUST BE MAILED BY CERTIFIED, FIRST-
1923	CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE AGGRIEVED
1924	PARTY LISTED ABOVE AT THE ADDRESS SHOWN ON THIS NOTICE
1925	AND POSTMARKED NO MORE THAN 20 DAYS AFTER THE DATE OF
1926	THE POSTMARKED DATE FOR THIS NOTICE OR WITHIN 20 DAYS
1927	AFTER THE DATE UPON WHICH YOU WERE SERVED WITH A COPY
1928	OF THIS NOTICE.
1929
1930	________________________
1931	SIGNATURE OF AGGRIEVED PARTY
1932
1933	______________________
1934	PRINTED NAME OF AGGRIEVED PARTY
1935
1936	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
1937	ACCEPTANCE OF THE AGREEMENT TO MEDIATE.
1938
1939	AGREEMENT TO MEDIATE
1940
1941	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
1942	PRESUIT MEDIATION AND AGREES TO ATTEND A MEDIATION
1943	CONDUCTED BY THE FOLLOWING MEDIATOR(S) LISTED BELOW AS
1944	ACCEPTABLE TO MEDIATE THIS DISPUTE:
1945
1946	(LIST ONE ACCEPTABLE MEDIATOR FROM THOSE LISTED BY THE
1947	AGGRIEVED PARTY.)
1948
1949	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE CAN
1950	ATTEND AND PARTICIPATE IN THE PRESUIT MEDIATION AT THE
1951	FOLLOWING DATES AND TIMES:
1952
1953	(LIST AT LEAST THREE AVAILABLE DATES AND TIMES WITHIN
1954	THE 90-DAY TIME LIMIT DESCRIBED ABOVE.)
1955
1956	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
1957	MEDIATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
1958	AS THE MEDIATOR MAY REQUIRE FOR THIS PURPOSE.
1959
1960	______________________________
1961	SIGNATURE OF RESPONDING PARTY #1
1962	______________________________
1963	TELEPHONE CONTACT INFORMATION
1964
1965	______________________________
1966	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
1967	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
1968	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
1969	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
1970	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
1971
1972	(2)(a)  Service of the notice of presuit mediation shall be
1973	effected either by personal service, as provided in chapter 48,
1974	or by certified mail, return receipt requested, in a letter in
1975	substantial conformity with the form provided in subsection (1),
1976	with an additional copy being sent by regular first-class mail,
1977	to the address of the responding party as it last appears on the
1978	books and records of the association or, if not available, then
1979	as it last appears in the official records of the county
1980	property appraiser where the parcel in dispute is located. The
1981	responding party has either 20 days after the postmarked date of
1982	the mailing of the statutory notice or 20 days after the date
1983	the responding party is served with a copy of the notice to
1984	serve a written response to the aggrieved party. The response
1985	shall be served by certified mail, return receipt requested,
1986	with an additional copy being sent by regular first-class mail,
1987	to the address shown on the statutory notice. The date of the
1988	postmark on the envelope for the response shall constitute the
1989	date that the response is served. Once the parties have agreed
1990	on a mediator, the mediator may schedule or reschedule the
1991	mediation for a date and time mutually convenient to the parties
1992	within 90 days after the date of service of the statutory
1993	notice. After such 90-day period, the mediator may reschedule
1994	the mediation only upon the mutual written agreement of all the
1995	parties.
1996	(b)  The parties shall share the costs of presuit mediation
1997	equally, including the fee charged by the mediator, if any,
1998	unless the parties agree otherwise, and the mediator may require
1999	advance payment of his or her reasonable fees and costs. Each
2000	party shall be responsible for that party's own attorney's fees
2001	if a party chooses to be represented by an attorney at the
2002	mediation.
2003	(c)  The party responding to the aggrieved party may
2004	provide a notice of opting out under s. 720.506 and demand
2005	arbitration or may sign the agreement to mediate included in the
2006	notice of presuit mediation. A responding party signing the
2007	agreement to mediate must clearly indicate the name of the
2008	mediator who is acceptable from the five names provided by the
2009	aggrieved party and must provide a list of dates and times in
2010	which the responding party is available to participate in the
2011	mediation within 90 days after the date the responding party was
2012	served, either by process server or by certified mail, with the
2013	statutory notice of presuit mediation.
2014	(d)  The mediator who has been selected and agreed to
2015	mediate must schedule the mediation conference at a mutually
2016	convenient time and place within that 90-day period; but, if the
2017	responding party does not provide a list of available dates and
2018	times, the mediator is authorized to schedule a mediation
2019	conference without taking the responding party's schedule and
2020	convenience into consideration. Within 10 days after the
2021	designation of the mediator, the mediator shall coordinate with
2022	the parties and notify the parties in writing of the date, time,
2023	and place of the mediation conference.
2024	(e)  The mediation conference must be held on the scheduled
2025	date and may be rescheduled if a rescheduled date is approved by
2026	the mediator. However, in no event shall the mediation be held
2027	later than 90 days after the notice of presuit mediation was
2028	first served, unless all parties mutually agree in writing
2029	otherwise. If the presuit mediation is not completed within the
2030	required time limits, the mediator shall declare an impasse
2031	unless the mediation date is extended by mutual written
2032	agreement by all parties and approved by the mediator.
2033	(f)  If the responding party fails to respond within 30
2034	days after the date of service of the statutory notice of
2035	presuit mediation, fails to agree to at least one of the
2036	mediators listed by the aggrieved party in the notice, fails to
2037	pay or prepay to the mediator one-half of the costs of the
2038	mediator, or fails to appear and participate at the scheduled
2039	mediation, the aggrieved party shall be authorized to proceed
2040	with the filing of a lawsuit without further notice.
2041	(g)1.  The failure of any party to respond to the statutory
2042	notice of presuit mediation within 20 days, the failure to agree
2043	upon a mediator, the failure to provide a listing of dates and
2044	times in which the responding party is available to participate
2045	in the mediation within 90 days after the date the responding
2046	party was served with the statutory notice of presuit mediation,
2047	the failure to make payment of fees and costs within the time
2048	established by the mediator, or the failure to appear for a
2049	scheduled mediation session without the approval of the
2050	mediator, shall in each instance constitute a failure or refusal
2051	to participate in the mediation process and shall operate as an
2052	impasse in the presuit mediation by such party, entitling the
2053	other party to file a lawsuit in court and to seek an award of
2054	the costs and attorney's fees associated with the mediation.
2055	2.  Persons who fail or refuse to participate in the entire
2056	mediation process may not recover attorney's fees and costs in
2057	subsequent litigation relating to the same dispute between the
2058	same parties. If any presuit mediation session cannot be
2059	scheduled and conducted within 90 days after the offer to
2060	participate in mediation was filed, through no fault of either
2061	party, then an impasse shall be deemed to have occurred unless
2062	the parties mutually agree in writing to extend this deadline.
2063	In the event of such impasse, each party shall be responsible
2064	for its own costs and attorney's fees and one-half of any
2065	mediator fees and filing fees, and either party may file a
2066	lawsuit in court regarding the dispute.
2067	720.506  Opt-out of presuit mediation.--A party served with
2068	a notice of presuit mediation under s. 720.505 may opt out of
2069	presuit mediation and demand that the dispute proceed under
2070	nonbinding arbitration as follows:
2071	(1)  In lieu of a response to the notice of presuit
2072	mediation as required under s. 720.505, the responding party may
2073	serve upon the aggrieved party, in the same manner as the
2074	response to a notice for presuit mediation under s. 720.505, a
2075	notice of opting out of mediation and demand that the dispute
2076	instead proceed to presuit arbitration under s. 720.507.
2077	(2)  The aggrieved party shall be relieved from having to
2078	satisfy the requirements of s. 720.504 as a condition precedent
2079	to filing the demand for presuit arbitration.
2080	(3)  Except as otherwise provided in this part, the choice
2081	of which presuit alternative dispute resolution procedure is
2082	used shall be at the election of the aggrieved party who first
2083	initiated such proceeding after complying with the provisions of
2084	s. 720.504.
2085	720.507  Presuit arbitration.--
2086	(1)  Disputes between an association and a parcel owner or
2087	owners and disputes between parcel owners are subject to a
2088	demand for presuit arbitration pursuant to this section before
2089	the dispute may be filed in court. A party who elects to use the
2090	presuit arbitration procedure under this part shall serve on the
2091	responding party a written notice of presuit arbitration in
2092	substantially the following form:
2093
2094	STATUTORY NOTICE OF PRESUIT ARBITRATION
2095
2096	THE ALLEGED AGGRIEVED PARTY, ____________________,
2097	HEREBY DEMANDS THAT ____________________, AS THE
2098	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
2099	ARBITRATION IN CONNECTION WITH THE FOLLOWING
2100	DISPUTE(S) WITH YOU, WHICH BY STATUTE ARE OF A TYPE
2101	THAT ARE SUBJECT TO PRESUIT ARBITRATION:
2102
2103	(LIST SPECIFIC NATURE OF THE DISPUTE OR DISPUTES TO BE
2104	ARBITRATED AND THE AUTHORITY SUPPORTING A FINDING OF A
2105	VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
2106	LIMITED TO, ALL APPLICABLE PROVISIONS OF THE GOVERNING
2107	DOCUMENTS BELIEVED TO APPLY TO THE DISPUTE BETWEEN THE
2108	PARTIES.)
2109
2110	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
2111	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
2112	ARBITRATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
2113	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
2114	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
2115	ARBITRATION WITH A NEUTRAL THIRD-PARTY ARBITRATOR IN
2116	ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
2117	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
2118	PARTICIPATE IN THIS PROCESS. IF YOU FAIL TO
2119	PARTICIPATE IN THE ARBITRATION PROCESS, A LAWSUIT MAY
2120	BE BROUGHT AGAINST YOU IN COURT WITHOUT FURTHER
2121	WARNING.
2122
2123	THE PROCESS OF ARBITRATION INVOLVES A NEUTRAL THIRD
2124	PERSON WHO CONSIDERS THE LAW AND FACTS PRESENTED BY
2125	THE PARTIES AND RENDERS A WRITTEN DECISION CALLED AN
2126	"ARBITRATION AWARD." PURSUANT TO S. 720.507, FLORIDA
2127	STATUTES, THE ARBITRATION AWARD SHALL BE FINAL UNLESS
2128	A LAWSUIT IS FILED IN A COURT OF COMPETENT
2129	JURISDICTION FOR THE JUDICIAL CIRCUIT IN WHICH THE
2130	PARCEL(S) GOVERNED BY THE HOMEOWNERS' ASSOCIATION
2131	IS/ARE LOCATED WITHIN 30 DAYS AFTER THE DATE OF THE
2132	ARBITRATION AWARD.
2133
2134	IF A SETTLEMENT AGREEMENT IS REACHED BEFORE THE
2135	ARBITRATION AWARD, IT SHALL BE REDUCED TO WRITING AND
2136	BECOME A BINDING AND ENFORCEABLE CONTRACT OF THE
2137	PARTIES. A RESOLUTION OF ONE OR MORE DISPUTES IN THIS
2138	FASHION AVOIDS THE NEED TO ARBITRATE THESE ISSUES OR
2139	TO LITIGATE THESE ISSUES IN COURT AND SHALL BE THE
2140	SAME AS A SETTLEMENT AGREEMENT REACHED BETWEEN THE
2141	PARTIES UNDER S. 720.505, FLORIDA STATUTES. THE
2142	FAILURE OF A PARTY TO PARTICIPATE IN THE ARBITRATION
2143	PROCESS MAY RESULT IN THE ARBITRATOR ISSUING AN
2144	ARBITRATION AWARD BY DEFAULT IN THE ARBITRATION. IF
2145	YOU HAVE FAILED OR REFUSED TO PARTICIPATE IN THE
2146	ENTIRE ARBITRATION PROCESS, YOU WILL NOT BE ENTITLED
2147	TO RECOVER ATTORNEY'S FEES, EVEN IF YOU PREVAIL IN A
2148	SUBSEQUENT COURT PROCEEDING INVOLVING THE SAME DISPUTE
2149	BETWEEN THE SAME PARTIES.
2150
2151	THE AGGRIEVED PARTY HAS SELECTED AT LEAST FIVE
2152	ARBITRATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
2153	NEUTRAL AND QUALIFIED TO ARBITRATE THE DISPUTE. YOU
2154	HAVE THE RIGHT TO SELECT ANY ONE OF THE ARBITRATORS.
2155	THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR
2156	MORE OF THE LISTED ARBITRATORS DOES NOT MEAN THAT THE
2157	ARBITRATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
2158	ARBITRATOR. ANY ARBITRATOR WHO CANNOT ACT IN THIS
2159	CAPACITY IS REQUIRED ETHICALLY TO DECLINE TO ACCEPT
2160	ENGAGEMENT. THE NAMES OF THE FIVE ARBITRATORS THAT THE
2161	AGGRIEVED PARTY HAS CHOSEN FROM WHICH YOU MAY SELECT
2162	ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE NUMBERS,
2163	AND HOURLY RATES, ARE AS FOLLOWS:
2164
2165	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
2166	HOURLY RATES OF AT LEAST FIVE ARBITRATORS.
2167
2168	YOU MAY CONTACT THE OFFICES OF THESE ARBITRATORS TO
2169	CONFIRM THAT THE LISTED ARBITRATORS WILL BE NEUTRAL
2170	AND WILL NOT SHOW ANY FAVORITISM TOWARD EITHER PARTY.
2171
2172	UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART IV OF
2173	CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE
2174	PARTIES SHARE THE COSTS OF PRESUIT ARBITRATION
2175	EQUALLY, INCLUDING THE FEE CHARGED BY THE ARBITRATOR.
2176	THE PARTIES SHALL BE RESPONSIBLE FOR THEIR OWN
2177	ATTORNEY'S FEES IF THEY CHOOSE TO EMPLOY AN ATTORNEY
2178	IN CONNECTION WITH THE ARBITRATION. HOWEVER, USE OF AN
2179	ATTORNEY TO REPRESENT YOU FOR THE ARBITRATION IS NOT
2180	REQUIRED. THE ARBITRATOR SELECTED MAY REQUIRE THE
2181	ADVANCE PAYMENT OF SOME OR ALL OF THE ANTICIPATED
2182	FEES. THE AGGRIEVED PARTY HEREBY AGREES TO PAY OR
2183	PREPAY ONE-HALF OF THE SELECTED ARBITRATOR'S ESTIMATED
2184	FEES AND TO FORWARD THIS AMOUNT OR SUCH OTHER
2185	REASONABLE ADVANCE DEPOSITS AS THE ARBITRATOR WHO IS
2186	SELECTED REQUIRES FOR THIS PURPOSE. ANY FUNDS
2187	DEPOSITED WILL BE RETURNED TO YOU IF THESE FUNDS ARE
2188	IN EXCESS OF YOUR SHARE OF THE FEES INCURRED.
2189
2190	PLEASE SIGN THE AGREEMENT TO ARBITRATE BELOW AND
2191	CLEARLY INDICATE THE NAME OF THE ARBITRATOR WHO IS
2192	ACCEPTABLE TO YOU FROM THE NAMES LISTED BY THE
2193	AGGRIEVED PARTY.
2194
2195	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
2196	WITHIN 20 DAYS AFTER THE DATE THAT THE NOTICE OF
2197	PRESUIT ARBITRATION WAS EITHER PERSONALLY SERVED ON
2198	YOU OR 20 DAYS AFTER THE POSTMARKED DATE THAT THIS
2199	NOTICE OF PRESUIT ARBITRATION WAS SENT TO YOU BY
2200	CERTIFIED MAIL. YOU MUST ALSO PROVIDE A LIST OF AT
2201	LEAST THREE DATES AND TIMES IN WHICH YOU ARE AVAILABLE
2202	TO PARTICIPATE IN THE ARBITRATION THAT ARE WITHIN 90
2203	DAYS AFTER THE DATE YOU WERE PERSONALLY SERVED OR
2204	WITHIN 90 DAYS AFTER THE POSTMARKED DATE OF THE
2205	CERTIFIED MAILING OF THIS STATUTORY NOTICE OF PRESUIT
2206	ARBITRATION. A COPY OF THIS NOTICE AND YOUR RESPONSE
2207	WILL BE PROVIDED BY THE AGGRIEVED PARTY TO THE
2208	ARBITRATOR SELECTED, AND THE ARBITRATOR WILL SCHEDULE
2209	A MUTUALLY CONVENIENT TIME AND PLACE FOR THE
2210	ARBITRATION CONFERENCE TO BE HELD. IF YOU DO NOT
2211	PROVIDE A LIST OF AVAILABLE DATES AND TIMES, THE
2212	ARBITRATOR IS AUTHORIZED TO SCHEDULE AN ARBITRATION
2213	CONFERENCE WITHOUT TAKING YOUR SCHEDULE AND
2214	CONVENIENCE INTO CONSIDERATION. THE ARBITRATION
2215	CONFERENCE MUST BE HELD ON THE SCHEDULED DATE, OR ANY
2216	RESCHEDULED DATE APPROVED BY THE ARBITRATOR. IN NO
2217	EVENT SHALL THE ARBITRATION CONFERENCE BE LATER THAN
2218	90 DAYS AFTER NOTICE OF THE PRESUIT ARBITRATION WAS
2219	FIRST SERVED, UNLESS ALL PARTIES MUTUALLY AGREE IN
2220	WRITING OTHERWISE. IF THE ARBITRATION IS NOT COMPLETED
2221	WITHIN THE REQUIRED TIME LIMITS, THE ARBITRATOR SHALL
2222	ISSUE AN ARBITRATION AWARD, UNLESS THE HEARING IS
2223	EXTENDED BY MUTUAL WRITTEN AGREEMENT OF THE PARTIES
2224	AND APPROVED BY THE ARBITRATOR. IN THE EVENT THAT YOU
2225	FAIL TO RESPOND WITHIN 20 DAYS AFTER THE DATE YOU WERE
2226	SERVED WITH A COPY OF THIS NOTICE, FAIL TO PROVIDE THE
2227	ARBITRATOR WITH DATES AND TIMES IN WHICH YOU ARE
2228	AVAILABLE FOR THE ARBITRATION CONFERENCE, FAIL TO
2229	AGREE EITHER TO ONE OF THE ARBITRATORS THAT THE
2230	AGGRIEVED PARTY HAS NAMED, FAIL TO PAY OR PREPAY TO
2231	THE ARBITRATOR ONE-HALF OF THE COSTS INVOLVED AS
2232	REQUIRED, OR FAIL TO APPEAR AND PARTICIPATE AT THE
2233	SCHEDULED ARBITRATION CONFERENCE, THE AGGRIEVED PARTY
2234	MAY REQUEST THE ARBITRATOR TO ISSUE AN ARBITRATION
2235	AWARD. IN THE SUBSEQUENT COURT ACTION, THE AGGRIEVED
2236	PARTY SHALL BE ENTITLED TO RECOVER AN AWARD OF
2237	REASONABLE ATTORNEY'S FEES AND COSTS, INCLUDING ANY
2238	FEES PAID TO THE ARBITRATOR, INCURRED IN OBTAINING AN
2239	ARBITRATION AWARD PURSUANT TO S. 720.507, FLORIDA
2240	STATUTES.
2241
2242	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
2243	LAW, YOUR RESPONSE MUST BE POSTMARKED AND MAILED BY
2244	CERTIFIED, FIRST-CLASS MAIL, RETURN RECEIPT REQUESTED,
2245	TO THE ADDRESS SHOWN ON THIS NOTICE OF PRESUIT
2246	ARBITRATION.
2247
2248	_________________________
2249	SIGNATURE OF AGGRIEVED PARTY
2250
2251	______________________
2252	PRINTED NAME OF AGGRIEVED PARTY
2253
2254	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
2255	ACCEPTANCE OF THE AGREEMENT TO ARBITRATE.
2256
2257	AGREEMENT TO ARBITRATE
2258
2259	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
2260	PRESUIT ARBITRATION AND AGREES TO ATTEND AN
2261	ARBITRATION CONDUCTED BY THE FOLLOWING ARBITRATOR
2262	LISTED BELOW AS SOMEONE WHO WOULD BE ACCEPTABLE TO
2263	ARBITRATE THIS DISPUTE:
2264
2265	(IN YOUR RESPONSE, SELECT THE NAME OF ONE ARBITRATOR
2266	THAT IS ACCEPTABLE TO YOU FROM THOSE ARBITRATORS
2267	LISTED BY THE AGGRIEVED PARTY.)
2268
2269	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE IS
2270	AVAILABLE AND ABLE TO ATTEND AND PARTICIPATE IN THE
2271	PRESUIT ARBITRATION CONFERENCE AT THE FOLLOWING DATES
2272	AND TIMES:
2273
2274	(LIST ALL AVAILABLE DATES AND TIMES, OF WHICH THERE
2275	MUST BE AT LEAST THREE, WITHIN 90 DAYS AFTER THE DATE
2276	ON WHICH YOU WERE SERVED, EITHER BY PROCESS SERVER OR
2277	BY CERTIFIED MAIL, WITH THE NOTICE OF PRESUIT
2278	ARBITRATION.)
2279
2280	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
2281	ARBITRATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
2282	AS THE ARBITRATOR MAY REQUIRE FOR THIS PURPOSE.
2283
2284	______________________________
2285	SIGNATURE OF RESPONDING PARTY #1
2286	______________________________
2287	TELEPHONE CONTACT INFORMATION
2288
2289	______________________________
2290	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
2291	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
2292	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
2293	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
2294	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
2295
2296	(2)(a)  Service of the statutory notice of presuit
2297	arbitration shall be effected either by personal service, as
2298	provided in chapter 48, or by certified mail, return receipt
2299	requested, in a letter in substantial conformity with the form
2300	provided in subsection (1), with an additional copy being sent
2301	by regular first-class mail, to the address of the responding
2302	party as it last appears on the books and records of the
2303	association, or if not available, the last address as it appears
2304	on the official records of the county property appraiser for the
2305	county in which the property is situated that is subject to the
2306	association documents. The responding party has 20 days after
2307	the postmarked date of the certified mailing of the statutory
2308	notice of presuit arbitration or 20 days after the date the
2309	responding party is personally served with the statutory notice
2310	of presuit arbitration by to serve a written response to the
2311	aggrieved party. The response shall be served by certified mail,
2312	return receipt requested, with an additional copy being sent by
2313	regular first-class mail, to the address shown on the statutory
2314	notice of presuit arbitration. The postmarked date on the
2315	envelope of the response shall constitute the date the response
2316	was served.
2317	(b)  The parties shall share the costs of presuit
2318	arbitration equally, including the fee charged by the
2319	arbitrator, if any, unless the parties agree otherwise, and the
2320	arbitrator may require advance payment of his or her reasonable
2321	fees and costs. Each party shall be responsible for all of their
2322	own attorney's fees if a party chooses to be represented by an
2323	attorney for the arbitration proceedings.
2324	(c)1.  The party responding to the aggrieved party must
2325	sign the agreement to arbitrate included in the notice of
2326	presuit arbitration and clearly indicate the name of the
2327	arbitrator who is acceptable of those arbitrators listed by the
2328	aggrieved party. The responding party must provide a list of at
2329	least three dates and times in which the responding party is
2330	available to participate in the arbitration conference within 90
2331	days after the date the responding party was served with the
2332	statutory notice of presuit arbitration.
2333	2.  The arbitrator must schedule the arbitration conference
2334	at a mutually convenient time and place, but if the responding
2335	party does not provide a list of available dates and times, the
2336	arbitrator is authorized to schedule an arbitration conference
2337	without taking the responding party's schedule and convenience
2338	into consideration. Within 10 days after the designation of the
2339	arbitrator, the arbitrator shall notify the parties in writing
2340	of the date, time, and place of the arbitration conference.
2341	3.  The arbitration conference must be held on the
2342	scheduled date and may be rescheduled if approved by the
2343	arbitrator. However, in no event shall the arbitration hearing
2344	be later than 90 days after the notice of presuit arbitration
2345	was first served, unless all parties mutually agree in writing
2346	otherwise. If the arbitration hearing is not completed within
2347	the required time limits, the arbitrator may issue an
2348	arbitration award unless the time for the hearing is extended as
2349	provided herein. If the responding party fails to respond within
2350	20 days after the date of statutory notice of presuit
2351	arbitration, fails to agree to at least one of the arbitrators
2352	that have been listed by the aggrieved party in the presuit
2353	notice of arbitration, fails to pay or prepay to the arbitrator
2354	one-half of the costs involved, or fails to appear and
2355	participate at the scheduled arbitration, the aggrieved party is
2356	authorized to proceed with a request that the arbitrator issue
2357	an arbitration award.
2358	(d)1.  The failure of any party to respond to the statutory
2359	notice of presuit arbitration within 20 days, the failure to
2360	either select one of the five arbitrators listed by the
2361	aggrieved party, the failure to provide a listing of dates and
2362	times in which the responding party is available to participate
2363	in the arbitration conference within 90 days after the date of
2364	the responding party being served with the statutory notice of
2365	presuit arbitration, the failure to make payment of fees and
2366	costs as required within the time established by the arbitrator,
2367	or the failure to appear for an arbitration conference without
2368	the approval of the arbitrator, shall entitle the other party to
2369	request the arbitrator to enter an arbitration award, including
2370	an award of the reasonable costs and attorney's fees associated
2371	with the arbitration.
2372	2.  Persons who fail or refuse to participate in the entire
2373	arbitration process may not recover attorney's fees and costs in
2374	any subsequent litigation proceeding relating to the same
2375	dispute involving the same parties.
2376	(3)(a)  In an arbitration proceeding, the arbitrator may
2377	not consider any unsuccessful mediation of the dispute.
2378	(b)  An arbitrator in a proceeding initiated pursuant to
2379	the provisions of this part may shorten the time for discovery
2380	or otherwise limit discovery in a manner consistent with the
2381	policy goals of this part to reduce the time and expense of
2382	litigating homeowners' association disputes initiated pursuant
2383	to this chapter and promoting an expeditious alternative dispute
2384	resolution procedure for parties to such actions.
2385	(4)  At the request of any party to the arbitration, the
2386	arbitrator may issue subpoenas for the attendance of witnesses
2387	and the production of books, records, documents, and other
2388	evidence, and any party on whose behalf a subpoena is issued may
2389	apply to the court for orders compelling such attendance and
2390	production. Subpoenas shall be served and are enforceable in the
2391	manner provided by the Florida Rules of Civil Procedure.
2392	Discovery may, at the discretion of the arbitrator, be permitted
2393	in the manner provided by the Florida Rules of Civil Procedure.
2394	(5)  The final arbitration award shall be sent to the
2395	parties in writing no later than 30 days after the date of the
2396	arbitration hearing, absent extraordinary circumstances
2397	necessitating a later filing the reasons for which shall be
2398	stated in the final award if filed more than 30 days after the
2399	date of the final session of the arbitration conference. An
2400	agreed arbitration award is final in those disputes in which the
2401	parties have mutually agreed to be bound. An arbitration award
2402	decided by the arbitrator is final unless a lawsuit seeking a
2403	trial de novo is filed in a court of competent jurisdiction
2404	within 30 days after the date of the arbitration award. The
2405	right to file for a trial de novo entitles the parties to file a
2406	complaint in the appropriate trial court for a judicial
2407	resolution of the dispute. The prevailing party in an
2408	arbitration proceeding shall be awarded the costs of the
2409	arbitration and reasonable attorney's fees in an amount
2410	determined by the arbitrator.
2411	(6)  The party filing a motion for a trial de novo shall be
2412	assessed the other party's arbitration costs, court costs, and
2413	other reasonable costs, including attorney's fees, investigation
2414	expenses, and expenses for expert or other testimony or evidence
2415	incurred after the arbitration hearing, if the judgment upon the
2416	trial de novo is not more favorable than the final arbitration
2417	award.
2418	720.508  Rules of procedure.--
2419	(1)  Presuit mediation and presuit arbitration proceedings
2420	under this part must be conducted in accordance with the
2421	applicable Florida Rules of Civil Procedure and rules governing
2422	mediations and arbitrations under chapter 44, except that this
2423	part shall be controlling to the extent of any conflict with
2424	other applicable rules or statutes. The arbitrator may shorten
2425	any applicable time period and otherwise limit the scope of
2426	discovery on request of the parties or within the discretion of
2427	the arbitrator exercised consistent with the purpose and
2428	objective of reducing the expense and expeditiously concluding
2429	proceedings under this part.
2430	(2)  Presuit mediation proceedings under s. 720.505 are
2431	privileged and confidential to the same extent as court-ordered
2432	mediation under chapter 44. An arbitrator or judge may not
2433	consider any information or evidence arising from the presuit
2434	mediation proceeding except in a proceeding to impose sanctions
2435	for failure to attend a presuit mediation session or to enforce
2436	a mediated settlement agreement.
2437	(3)  Persons who are not parties to the dispute may not
2438	attend the presuit mediation conference without consent of all
2439	parties, with the exception of counsel for the parties and a
2440	corporate representative designated by the association. Presuit
2441	mediations under this part are not a board meeting for purposes
2442	of notice and participation set forth in this chapter.
2443	(4)  Attendance at a mediation conference by the board of
2444	directors shall not require notice or participation by nonboard
2445	members as otherwise required by this chapter for meetings of
2446	the board.
2447	(5)  Settlement agreements resulting from a mediation or
2448	arbitration proceeding do not have precedential value in
2449	proceedings involving parties other than those participating in
2450	the mediation or arbitration.
2451	(6)  Arbitration awards by an arbitrator shall have
2452	precedential value in other proceedings involving the same
2453	association or with respect to the same parcel owner.
2454	720.509  Mediators and arbitrators; qualifications and
2455	registration.--A person is authorized to conduct mediation or
2456	arbitration under this part if he or she has been certified as a
2457	circuit court civil mediator under the requirements adopted
2458	pursuant to s. 44.106, is a member in good standing with The
2459	Florida Bar, and otherwise meets all other requirements imposed
2460	by chapter 44.
2461	720.510  Enforcement of mediation agreement or arbitration
2462	award.--
2463	(1)  A mediation settlement may be enforced through the
2464	county or circuit court, as applicable, and any costs and
2465	attorney's fees incurred in the enforcement of a settlement
2466	agreement reached at mediation shall be awarded to the
2467	prevailing party in any enforcement action.
2468	(2)  Any party to an arbitration proceeding may enforce an
2469	arbitration award by filing a petition in a court of competent
2470	jurisdiction in which the homeowners' association is located.
2471	The prevailing party in such proceeding shall be awarded
2472	reasonable attorney's fees and costs incurred in such
2473	proceeding.
2474	(3)  If a complaint is filed seeking a trial de novo, the
2475	arbitration award shall be stayed and a petition to enforce the
2476	award may not be granted. Such award, however, shall be
2477	admissible in the court proceeding seeking a trial de novo.
2478	Section 22.  Subsection (16) of section 718.103, Florida
2479	Statutes, is amended to read:
2480	718.103  Definitions.--As used in this chapter, the term:
2481	(16)  "Developer" means a person who creates a condominium
2482	or offers condominium parcels for sale or lease in the ordinary
2483	course of business, but does not include:
2484	(a)  An owner or lessee of a condominium or cooperative
2485	unit who has acquired the unit for his or her own occupancy;,
2486	nor does it include
2487	(b)  A cooperative association which creates a condominium
2488	by conversion of an existing residential cooperative after
2489	control of the association has been transferred to the unit
2490	owners if, following the conversion, the unit owners will be the
2491	same persons who were unit owners of the cooperative and no
2492	units are offered for sale or lease to the public as part of the
2493	plan of conversion;.
2494	(c)  A bulk assignee or bulk buyer as defined in s.
2495	718.703; or
2496	(d)  A state, county, or municipal entity is not a
2497	developer for any purposes under this act when it is acting as a
2498	lessor and not otherwise named as a developer in the declaration
2499	of condominium association.
2500	Section 23.  Subsection (1) of section 718.301, Florida
2501	Statutes, is amended to read:
2502	718.301  Transfer of association control; claims of defect
2503	by association.--
2504	(1)  When unit owners other than the developer own 15
2505	percent or more of the units in a condominium that will be
2506	operated ultimately by an association, the unit owners other
2507	than the developer shall be entitled to elect no less than one-
2508	third of the members of the board of administration of the
2509	association. Unit owners other than the developer are entitled
2510	to elect not less than a majority of the members of the board of
2511	administration of an association:
2512	(a)  Three years after 50 percent of the units that will be
2513	operated ultimately by the association have been conveyed to
2514	purchasers;
2515	(b)  Three months after 90 percent of the units that will
2516	be operated ultimately by the association have been conveyed to
2517	purchasers;
2518	(c)  When all the units that will be operated ultimately by
2519	the association have been completed, some of them have been
2520	conveyed to purchasers, and none of the others are being offered
2521	for sale by the developer in the ordinary course of business;
2522	(d)  When some of the units have been conveyed to
2523	purchasers and none of the others are being constructed or
2524	offered for sale by the developer in the ordinary course of
2525	business;
2526	(e)  When the developer files a petition seeking protection
2527	in bankruptcy;
2528	(f)  When a receiver for the developer is appointed by a
2529	circuit court and is not discharged within 30 days after such
2530	appointment, unless the court determines within 30 days after
2531	appointment of the receiver that transfer of control would be
2532	detrimental to the association or its members; or
2533	(g)  Seven years after recordation of the declaration of
2534	condominium; or, in the case of an association which may
2535	ultimately operate more than one condominium, 7 years after
2536	recordation of the declaration for the first condominium it
2537	operates; or, in the case of an association operating a phase
2538	condominium created pursuant to s. 718.403, 7 years after
2539	recordation of the declaration creating the initial phase,
2540
2541	whichever occurs first. The developer is entitled to elect at
2542	least one member of the board of administration of an
2543	association as long as the developer holds for sale in the
2544	ordinary course of business at least 5 percent, in condominiums
2545	with fewer than 500 units, and 2 percent, in condominiums with
2546	more than 500 units, of the units in a condominium operated by
2547	the association. Following the time the developer relinquishes
2548	control of the association, the developer may exercise the right
2549	to vote any developer-owned units in the same manner as any
2550	other unit owner except for purposes of reacquiring control of
2551	the association or selecting the majority members of the board
2552	of administration.
2553	Section 24.  Part VII of chapter 718, Florida Statutes,
2554	consisting of sections 718.701, 718.702, 718.703, 718.704,
2555	718.705, 718.706, 718.707, and 718.708, is created to read:
2556	718.701  Short title.--This part may be cited as the
2557	"Distressed Condominium Relief Act."
2558	718.702  Legislative intent.--
2559	(1)  The Legislature acknowledges the massive downturn in
2560	the condominium market which has transpired throughout the state
2561	and the impact of such downturn on developers, lenders, unit
2562	owners, and condominium associations. Numerous condominium
2563	projects have either failed or are in the process of failing,
2564	whereby the condominium has a small percentage of third-party
2565	unit owners as compared to the unsold inventory of units. As a
2566	result of the inability to find purchasers for this inventory of
2567	units, which results in part from the devaluing of real estate
2568	in this state, developers are unable to satisfy the requirements
2569	of their lenders, leading to defaults on mortgages.
2570	Consequently, lenders are faced with the task of finding a
2571	solution to the problem in order to be paid for their
2572	investments.
2573	(2)  The Legislature recognizes that all of the factors
2574	listed in this section lead to condominiums becoming distressed,
2575	resulting in detriment to the unit owners and the condominium
2576	association on account of the resulting shortage of assessment
2577	moneys available to support the financial requirements for
2578	proper maintenance of the condominium. Such shortage and the
2579	resulting lack of proper maintenance further erodes property
2580	values. The Legislature finds that individuals and entities
2581	within Florida and in other states have expressed interest in
2582	purchasing unsold inventory in one or more condominium projects,
2583	but are reticent to do so because of accompanying liabilities
2584	inherited from the original developer, which are by definition
2585	imputed to the successor purchaser, including a foreclosing
2586	mortgagee. This results in the potential purchaser having
2587	unknown and unquantifiable risks, and potential successor
2588	purchasers are unwilling to accept such risks. The result is
2589	that condominium projects stagnate, leaving all parties involved
2590	at an impasse without the ability to find a solution.
2591	(3)  The Legislature finds and declares that it is the
2592	public policy of this state to protect the interests of
2593	developers, lenders, unit owners, and condominium associations
2594	with regard to distressed condominiums, and that there is a need
2595	for relief from certain provisions of the Florida Condominium
2596	Act geared toward enabling economic opportunities within these
2597	condominiums for successor purchasers, including foreclosing
2598	mortgagees. Such relief would benefit existing unit owners and
2599	condominium associations. The Legislature further finds and
2600	declares that this situation cannot be open-ended without
2601	potentially prejudicing the rights of unit owners and
2602	condominium associations, and thereby declares that the
2603	provisions of this part shall be used by purchasers of
2604	condominium inventory for a specific and defined period.
2605	718.703  Definitions.--As used in this part, the term:
2606	(1)  "Bulk assignee" means a person who:
2607	(a)  Acquires more than seven condominium parcels as set
2608	forth in s. 718.707; and
2609	(b)  Receives an assignment of some or all of the rights of
2610	the developer as are set forth in the declaration of condominium
2611	or in this chapter by a written instrument recorded as an
2612	exhibit to the deed or as a separate instrument in the public
2613	records of the county in which the condominium is located.
2614	(2)  "Bulk buyer" means a person who acquires more than
2615	seven condominium parcels as set forth in s. 718.707 but who
2616	does not receive an assignment of any developer rights other
2617	than the right to conduct sales, leasing, and marketing
2618	activities within the condominium.
2619	718.704  Assignment and assumption of developer rights by
2620	bulk assignee; bulk buyer.--
2621	(1)  A bulk assignee shall be deemed to have assumed and is
2622	liable for all duties and responsibilities of the developer
2623	under the declaration and this chapter, except:
2624	(a)  Warranties of the developer under s. 718.203(1) or s.
2625	718.618, except for design, construction, development, or repair
2626	work performed by or on behalf of such bulk assignee;
2627	(b)  The obligation to:
2628	1.  Fund converter reserves under s. 718.618 for a unit
2629	which was not acquired by the bulk assignee; or
2630	2.  Provide converter warranties on any portion of the
2631	condominium property except as may be expressly provided by the
2632	bulk assignee in the contract for purchase and sale executed
2633	with a purchaser and pertaining to any design, construction,
2634	development, or repair work performed by or on behalf of the
2635	bulk assignee;
2636	(c)  The requirement to provide the association with a
2637	cumulative audit of the association's finances from the date of
2638	formation of the condominium association as required by s.
2639	718.301. However, the bulk assignee shall provide an audit for
2640	the period for which the bulk assignee elects a majority of the
2641	members of the board of administration;
2642	(d)  Any liability arising out of or in connection with
2643	actions taken by the board of administration or the developer-
2644	appointed directors before the bulk assignee elects a majority
2645	of the members of the board of administration; and
2646	(e)  Any liability for or arising out of the developer's
2647	failure to fund previous assessments or to resolve budgetary
2648	deficits in relation to a developer's right to guarantee
2649	assessments, except as otherwise provided in subsection (2).
2650
2651	Further, the bulk assignee is responsible for delivering
2652	documents and materials in accordance with s. 718.705(3). A bulk
2653	assignee may expressly assume some or all of the obligations of
2654	the developer described in paragraphs (a)-(e).
2655	(2)  A bulk assignee receiving the assignment of the rights
2656	of the developer to guarantee the level of assessments and fund
2657	budgetary deficits pursuant to s. 718.116 shall be deemed to
2658	have assumed and is liable for all obligations of the developer
2659	with respect to such guarantee, including any applicable funding
2660	of reserves to the extent required by law, for as long as the
2661	guarantee remains in effect. A bulk assignee not receiving an
2662	assignment of the right of the developer to guarantee the level
2663	of assessments and fund budgetary deficits pursuant to s.
2664	718.116 or a bulk buyer is not deemed to have assumed and is not
2665	liable for the obligations of the developer with respect to such
2666	guarantee, but is responsible for payment of assessments in the
2667	same manner as all other owners of condominium parcels.
2668	(3)  A bulk buyer is liable for the duties and
2669	responsibilities of the developer under the declaration and this
2670	chapter only to the extent provided in this part, together with
2671	any other duties or responsibilities of the developer expressly
2672	assumed in writing by the bulk buyer.
2673	(4)  An acquirer of condominium parcels is not considered a
2674	bulk assignee or a bulk buyer if the transfer to such acquirer
2675	was made with the intent to hinder, delay, or defraud any
2676	purchaser, unit owner, or the association, or if the acquirer is
2677	a person who would constitute an insider under s. 726.102(7).
2678	(5)  An assignment of developer rights to a bulk assignee
2679	may be made by the developer, a previous bulk assignee, or a
2680	court of competent jurisdiction acting on behalf of the
2681	developer or the previous bulk assignee. At any particular time,
2682	there may be no more than one bulk assignee within a
2683	condominium, but there may be more than one bulk buyer. If more
2684	than one acquirer of condominium parcels receives an assignment
2685	of developer rights from the same person, the bulk assignee is
2686	the acquirer whose instrument of assignment is recorded first in
2687	applicable public records.
2688	718.705  Board of administration; transfer of control.--
2689	(1)  For purposes of determining the timing for transfer of
2690	control of the board of administration of the association to
2691	unit owners other than the developer under ss. 718.301(1)(a) and
2692	(b), if a bulk assignee is entitled to elect a majority of the
2693	members of the board, a condominium parcel acquired by the bulk
2694	assignee shall not be deemed to be conveyed to a purchaser, or
2695	to be owned by an owner other than the developer, until such
2696	condominium parcel is conveyed to an owner who is not a bulk
2697	assignee.
2698	(2)  Unless control of the board of administration of the
2699	association has already been relinquished pursuant to s.
2700	718.301(1), the bulk assignee is obligated to relinquish control
2701	of the association in accordance with s. 718.301 and this part.
2702	(3)  When a bulk assignee relinquishes control of the board
2703	of administration as set forth in s. 718.301, the bulk assignee
2704	shall deliver all of those items required by s. 718.301(4).
2705	However, the bulk assignee is not required to deliver items and
2706	documents not in the possession of the bulk assignee during the
2707	period during which the bulk assignee was the owner of
2708	condominium parcels. In conjunction with acquisition of
2709	condominium parcels, a bulk assignee shall undertake a good
2710	faith effort to obtain the documents and materials required to
2711	be provided to the association pursuant to s. 718.301(4). To the
2712	extent the bulk assignee is not able to obtain all of such
2713	documents and materials, the bulk assignee shall certify in
2714	writing to the association the names or descriptions of the
2715	documents and materials that were not obtainable by the bulk
2716	assignee. Delivery of the certificate relieves the bulk assignee
2717	of responsibility for the delivery of the documents and
2718	materials referenced in the certificate as otherwise required
2719	under ss. 718.112 and 718.301 and this part. The responsibility
2720	of the bulk assignee for the audit required by s. 718.301(4)
2721	shall commence as of the date on which the bulk assignee elected
2722	a majority of the members of the board of administration.
2723	(4)  If a conflict arises between the provisions or
2724	application of this section and s. 718.301, this section shall
2725	prevail.
2726	(5)  Failure of a bulk assignee or bulk buyer to comply
2727	with all the requirements contained in this part shall result in
2728	the loss of any and all protections or exemptions provided under
2729	this part.
2730	718.706  Specific provisions pertaining to offering of
2731	units by a bulk assignee or bulk buyer.--
2732	(1)  Before offering any units for sale or for lease for a
2733	term exceeding 5 years, a bulk assignee or a bulk buyer shall
2734	file the following documents with the division and provide such
2735	documents to a prospective purchaser:
2736	(a)  An updated prospectus or offering circular, or a
2737	supplement to the prospectus or offering circular, filed by the
2738	creating developer prepared in accordance with s. 718.504, which
2739	shall include the form of contract for purchase and sale in
2740	compliance with s. 718.503(2);
2741	(b)  An updated Frequently Asked Questions and Answers
2742	sheet;
2743	(c)  The executed escrow agreement if required under s.
2744	718.202; and
2745	(d)  The financial information required by s. 718.111(13).
2746	However, if a financial information report does not exist for
2747	the fiscal year before acquisition of title by the bulk assignee
2748	or bulk buyer, or accounting records cannot be obtained in good
2749	faith by the bulk assignee or the bulk buyer which would permit
2750	preparation of the required financial information report, the
2751	bulk assignee or bulk buyer is excused from the requirement of
2752	this paragraph. However, the bulk assignee or bulk buyer must
2753	include in the purchase contract the following statement in
2754	conspicuous type:
2755	THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
2756	718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR OF THE
2757	ASSOCIATION IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER
2758	AS A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
2759	ASSOCIATION.
2760	(2)  Before offering any units for sale or for lease for a
2761	term exceeding 5 years, a bulk assignee shall file with the
2762	division and provide to a prospective purchaser a disclosure
2763	statement that must include, but is not limited to:
2764	(a)  A description to the purchaser of any rights of the
2765	developer which have been assigned to the bulk assignee;
2766	(b)  The following statement in conspicuous type:
2767	SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE DEVELOPER
2768	UNDER S. 718.203(1) OR S. 718.618, AS APPLICABLE, EXCEPT FOR
2769	DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
2770	OR ON BEHALF OF SELLER; and
2771	(c)  If the condominium is a conversion subject to part VI,
2772	the following statement in conspicuous type:
2773	SELLER HAS NO OBLIGATION TO FUND CONVERTER RESERVES OR TO
2774	PROVIDE CONVERTER WARRANTIES UNDER S. 718.618 ON ANY PORTION OF
2775	THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY REQUIRED OF
2776	THE SELLER IN THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE
2777	SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO ANY DESIGN,
2778	CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON
2779	BEHALF OF THE SELLER.
2780	(3)  In addition to the requirements set forth in
2781	subsection (1), a bulk assignee or bulk buyer must comply with
2782	the nondeveloper disclosure requirements set forth in s.
2783	718.503(2) before offering any units for sale or for lease for a
2784	term exceeding 5 years.
2785	(4)  A bulk assignee, while it is in control of the board
2786	of administration of the association, may not authorize, on
2787	behalf of the association:
2788	(a)  The waiver of reserves or the reduction of funding of
2789	the reserves in accordance with s. 718.112(2)(f)2., unless
2790	approved by a majority of the voting interests not controlled by
2791	the developer, bulk assignee, and bulk buyer; or
2792	(b)  The use of reserve expenditures for other purposes in
2793	accordance with s. 718.112(2)(f)3., unless approved by a
2794	majority of the voting interests not controlled by the
2795	developer, bulk assignee, and bulk buyer.
2796	(5)  A bulk assignee, while it is in control of the board
2797	of administration of the association, shall comply with the
2798	requirements imposed upon developers to transfer control of the
2799	association to the unit owners in accordance with s. 718.301.
2800	(6)  A bulk assignee or a bulk buyer shall comply with all
2801	the requirements of s. 718.302 regarding any contracts entered
2802	into by the association during the period the bulk assignee or
2803	bulk buyer maintains control of the board of administration.
2804	Unit owners shall be afforded all the protections contained in
2805	s. 718.302 regarding agreements entered into by the association
2806	before unit owners other than the developer, bulk assignee, or
2807	bulk buyer elected a majority of the board of administration.
2808	(7)  A bulk buyer shall comply with the requirements
2809	contained in the declaration regarding any transfer of a unit,
2810	including sales, leases, and subleases. A bulk buyer is not
2811	entitled to any exemptions afforded a developer or successor
2812	developer under this chapter regarding any transfer of a unit,
2813	including sales, leases, or subleases.
2814	718.707  Time limitation for classification as bulk
2815	assignee or bulk buyer.--A person acquiring condominium parcels
2816	may not be classified as a bulk assignee or bulk buyer unless
2817	the condominium parcels were acquired before July 1, 2011. The
2818	date of such acquisition shall be determined by the date of
2819	recording of a deed or other instrument of conveyance for such
2820	parcels in the public records of the county in which the
2821	condominium is located, or by the date of issuance of a
2822	certificate of title in a foreclosure proceeding with respect to
2823	such condominium parcels.
2824	718.708  Liability of developers and others.--An assignment
2825	of developer rights to a bulk assignee or bulk buyer does not
2826	release the developer from any liabilities under the declaration
2827	or this chapter. This part does not limit the liability of the
2828	developer for claims brought by unit owners, bulk assignees, or
2829	bulk buyers for violations of this chapter by the developer,
2830	unless specifically excluded in this part. Nothing contained
2831	within this part waives, releases, compromises, or limits the
2832	liability of contractors, subcontractors, materialmen,
2833	manufacturers, architects, engineers, or any participant in the
2834	design or construction of a condominium for any claim brought by
2835	an association, unit owners, bulk assignees, or bulk buyers
2836	arising from the design of the condominium, construction
2837	defects, misrepresentations associated with condominium
2838	property, or violations of this chapter, unless specifically
2839	excluded in this part.
2840	Section 25.  All new residential construction in any deed-
2841	restricted community that requires mandatory membership in the
2842	association under chapter 718, chapter 719, or chapter 720,
2843	Florida Statutes, must comply with the provisions of Pub. L. No.
2844	110-140, Title XIV, ss. 1402 to 1406, 15 U.S.C. ss. 8001-8005
2845	Section 26.  This act shall take effect July 1, 2009.

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