HB 1195

1
A bill to be entitled
2An act relating to community associations; amending s.
3718.111, F.S.; requiring an insurance company insuring
4condominium association property to provide notice to unit
5owners if the insurance will be cancelled or not renewed
6by the association; authorizing a majority of the voting
7interests of the association to direct the board to obtain
8substitute coverage; amending s. 718.113, F.S.;
9authorizing the board of a condominium association to
10install impact glass or other code-compliant windows under
11certain circumstances; amending s. 718.116, F.S.;
12providing that a condominium association may not be deemed
13to be the previous owner of a condominium unit under
14certain circumstances; requiring a tenant to pay all of a
15unit owner's outstanding monetary obligations relating to
16the unit to the condominium association under certain
17circumstances; amending s. 720.303, F.S.; providing that a
18member of a homeowners' association has the right to speak
19on any matter placed on the agenda of the board of the
20association for at least 3 minutes; amending s. 720.306,
21F.S.; specifying additional requirements for elections for
22members of the board of a homeowners' association;
23specifying additional requirements for candidates to be a
24member of the board of a homeowners' association; amending
25s. 720.3085, F.S.; providing that a condominium
26homeowners' association may not be deemed to be the
27previous owner of a parcel under certain circumstances;
28providing an effective date.
29
30Be It Enacted by the Legislature of the State of Florida:
31
32     Section 1.  Paragraph (d) of subsection (11) of section
33718.111, Florida Statutes, is amended to read:
34     718.111  The association.-
35     (11)  INSURANCE.-In order to protect the safety, health,
36and welfare of the people of the State of Florida and to ensure
37consistency in the provision of insurance coverage to
38condominiums and their unit owners, this subsection applies to
39every residential condominium in the state, regardless of the
40date of its declaration of condominium. It is the intent of the
41Legislature to encourage lower or stable insurance premiums for
42associations described in this subsection.
43     (d)  An association controlled by unit owners operating as
44a residential condominium shall use its best efforts to obtain
45and maintain adequate property insurance to protect the
46association, the association property, the common elements, and
47the condominium property that must be insured by the association
48pursuant to this subsection. However, if an association having
4950 or fewer units cancels or does not renew insurance coverage
50required or permitted under this subsection, the insurance
51company must notify all unit owners by certified and regular
52mail at least 30 days before the effective date of a termination
53of coverage. Upon receipt of the notice, a majority of the
54voting interests may agree in writing to direct the board to
55obtain substitute coverage for the association as a common
56expense.
57     Section 2.  Subsection (5) of section 718.113, Florida
58Statutes, is amended to read:
59     718.113  Maintenance; limitation upon improvement; display
60of flag; hurricane shutters; display of religious decorations.-
61     (5)  Each board of administration shall adopt hurricane
62shutter specifications for each building within each condominium
63operated by the association which shall include color, style,
64and other factors deemed relevant by the board. All
65specifications adopted by the board must shall comply with the
66applicable building code.
67     (a)  The board may, subject to the provisions of s.
68718.3026, and the approval of a majority of voting interests of
69the condominium, install hurricane shutters, impact glass or
70other code-compliant windows, or hurricane protection that
71complies with or exceeds the applicable building code. However,
72or both, except that a vote of the owners is not required if the
73maintenance, repair, and replacement of hurricane shutters,
74impact glass, or other code-compliant windows or other forms of
75hurricane protection are the responsibility of the association
76pursuant to the declaration of condominium. If However, where
77hurricane protection or laminated glass or window film
78architecturally designed to function as hurricane protection
79which complies with or exceeds the current applicable building
80code has been previously installed, the board may not install
81hurricane shutters, or other hurricane protection, or impact
82glass or other code-compliant windows except upon approval by a
83majority vote of the voting interests.
84     (b)  The association is shall be responsible for the
85maintenance, repair, and replacement of the hurricane shutters
86or other hurricane protection authorized by this subsection if
87such hurricane shutters or other hurricane protection is the
88responsibility of the association pursuant to the declaration of
89condominium. If the hurricane shutters or other hurricane
90protection authorized by this subsection are the responsibility
91of the unit owners pursuant to the declaration of condominium,
92the responsibility for the maintenance, repair, and replacement
93of such items are shall be the responsibility of the unit owner.
94     (c)  The board may operate shutters installed pursuant to
95this subsection without permission of the unit owners only if
96where such operation is necessary to preserve and protect the
97condominium property and association property. The installation,
98replacement, operation, repair, and maintenance of such shutters
99in accordance with the procedures set forth in this paragraph
100are herein shall not be deemed a material alteration to the
101common elements or association property within the meaning of
102this section.
103     (d)  Notwithstanding any provision to the contrary in the
104condominium documents, if approval is required by the documents,
105a board may shall not refuse to approve the installation or
106replacement of hurricane shutters by a unit owner conforming to
107the specifications adopted by the board.
108     Section 3.  Subsections (1) and (11) of section 718.116,
109Florida Statutes, are amended to read:
110     718.116  Assessments; liability; lien and priority;
111interest; collection.-
112     (1)(a)  A unit owner, regardless of how his or her title
113has been acquired, including by purchase at a foreclosure sale
114or by deed in lieu of foreclosure, is liable for all assessments
115which come due while he or she is the unit owner. Additionally,
116a unit owner is jointly and severally liable with the previous
117owner for all unpaid assessments that came due up to the time of
118transfer of title. This liability is without prejudice to any
119right the owner may have to recover from the previous owner the
120amounts paid by the owner. Notwithstanding the provisions of
121this paragraph, the association may not be deemed the previous
122owner for purposes of joint and several liability for
123assessments which came due while the association owned the unit
124or units on which it has foreclosed or taken title via deed in
125lieu of foreclosure.
126     (b)  The liability of a first mortgagee or its successor or
127assignees who acquire title to a unit by foreclosure or by deed
128in lieu of foreclosure for the unpaid assessments that became
129due before the mortgagee's acquisition of title is limited to
130the lesser of:
131     1.  The unit's unpaid common expenses and regular periodic
132assessments which accrued or came due during the 12 months
133immediately preceding the acquisition of title and for which
134payment in full has not been received by the association; or
135     2.  One percent of the original mortgage debt. The
136provisions of this paragraph apply only if the first mortgagee
137joined the association as a defendant in the foreclosure action.
138Joinder of the association is not required if, on the date the
139complaint is filed, the association was dissolved or did not
140maintain an office or agent for service of process at a location
141which was known to or reasonably discoverable by the mortgagee.
142     (c)  The person acquiring title shall pay the amount owed
143to the association within 30 days after transfer of title.
144Failure to pay the full amount when due shall entitle the
145association to record a claim of lien against the parcel and
146proceed in the same manner as provided in this section for the
147collection of unpaid assessments.
148     (d)  With respect to each timeshare unit, each owner of a
149timeshare estate therein is jointly and severally liable for the
150payment of all assessments and other charges levied against or
151with respect to that unit pursuant to the declaration or bylaws,
152except to the extent that the declaration or bylaws may provide
153to the contrary.
154     (e)  Notwithstanding the provisions of paragraph (b), a
155first mortgagee or its successor or assignees who acquire title
156to a condominium unit as a result of the foreclosure of the
157mortgage or by deed in lieu of foreclosure of the mortgage shall
158be exempt from liability for all unpaid assessments attributable
159to the parcel or chargeable to the previous owner which came due
160prior to acquisition of title if the first mortgage was recorded
161prior to April 1, 1992. If, however, the first mortgage was
162recorded on or after April 1, 1992, or on the date the mortgage
163was recorded, the declaration included language incorporating by
164reference future amendments to this chapter, the provisions of
165paragraph (b) shall apply.
166     (f)  The provisions of this subsection are intended to
167clarify existing law, and shall not be available in any case
168where the unpaid assessments sought to be recovered by the
169association are secured by a lien recorded prior to the
170recording of the mortgage. Notwithstanding the provisions of
171chapter 48, the association shall be a proper party to intervene
172in any foreclosure proceeding to seek equitable relief.
173     (g)  For purposes of this subsection, the term "successor
174or assignee" as used with respect to a first mortgagee includes
175only a subsequent holder of the first mortgage.
176     (11)  If the unit is occupied by a tenant and the unit
177owner is delinquent in paying any monetary obligation due to the
178association, the association may make a written demand that the
179tenant pay the outstanding and future monetary obligations
180related to the condominium unit to the association, and the
181tenant must make such payment. The demand is continuing in
182nature and, upon demand, the tenant must pay the monetary
183obligations to the association until the association releases
184the tenant or the tenant discontinues tenancy in the unit. The
185association must mail written notice to the unit owner of the
186association's demand that the tenant make payments to the
187association. The association shall, upon request, provide the
188tenant with written receipts for payments made. A tenant who
189acts in good faith in response to a written demand from an
190association is immune from any claim from the unit owner.
191     (a)  If the tenant prepaid rent to the unit owner before
192receiving the demand from the association and provides written
193evidence of paying the rent to the association within 14 days
194after receiving the demand, the tenant shall receive credit for
195the prepaid rent for the applicable period and must make any
196subsequent rental payments to the association to be credited
197against the monetary obligations of the unit owner to the
198association.
199     (b)  The tenant is not liable for increases in the amount
200of the monetary obligations due unless the tenant was notified
201in writing of the increase at least 10 days before the date the
202rent is due. The liability of the tenant may not exceed the
203amount due from the tenant to the tenant's landlord. The
204tenant's landlord shall provide the tenant a credit against
205rents due to the unit owner in the amount of moneys paid to the
206association under this section.
207     (c)  The association may issue notices under s. 83.56 and
208may sue for eviction under ss. 83.59-83.625 as if the
209association were a landlord under part II of chapter 83 if the
210tenant fails to pay a required payment to the association.
211However, the association is not otherwise considered a landlord
212under chapter 83 and specifically has no duties under s. 83.51.
213     (d)  The tenant does not, by virtue of payment of monetary
214obligations to the association, have any of the rights of a unit
215owner to vote in any election or to examine the books and
216records of the association.
217     (e)  A court may supersede the effect of this subsection by
218appointing a receiver.
219     Section 4.  Paragraph (b) of subsection (2) of section
220720.303, Florida Statutes, is amended to read:
221     720.303  Association powers and duties; meetings of board;
222official records; budgets; financial reporting; association
223funds; recalls.-
224     (2)  BOARD MEETINGS.-
225     (b)  Members have the right to attend all meetings of the
226board and to speak on any matter placed on the agenda by
227petition of the voting interests for at least 3 minutes. The
228association may adopt written reasonable rules expanding the
229right of members to speak and governing the frequency, duration,
230and other manner of member statements, which rules must be
231consistent with this paragraph and may include a sign-up sheet
232for members wishing to speak. Notwithstanding any other law,
233meetings between the board or a committee and the association's
234attorney to discuss proposed or pending litigation or meetings
235of the board held for the purpose of discussing personnel
236matters are not required to be open to the members other than
237directors.
238     Section 5.  Subsection (9) of section 720.306, Florida
239Statutes, is amended to read:
240     720.306  Meetings of members; voting and election
241procedures; amendments.-
242     (9)(a)  ELECTIONS AND BOARD VACANCIES.-Notwithstanding the
243governing documents of the association, elections of directors
244must be conducted in accordance with the procedures set forth in
245s. 718.112(2)(d)3. the governing documents of the association.
246All members of the association are eligible to serve on the
247board of directors, and a member may nominate himself or herself
248as a candidate for the board at a meeting where the election is
249to be held or, if the election process allows voting by absentee
250ballot, in advance of the balloting. except as otherwise
251provided in this section the governing documents, boards of
252directors must be elected by a plurality of the votes cast by
253eligible voters.
254     (b)  Co-owners of a parcel may not serve as members of the
255board of directors at the same time unless they own more than
256one parcel or unless there are not enough eligible candidates to
257fill the vacancies on the board at the time of the vacancy. A
258person who is delinquent in the payment of any fee, fine, or
259other obligation to the association by more than 90 days is not
260eligible for board membership. A person who has been convicted
261of any felony in this state or in a United States District or
262Territorial Court, or who has been convicted of any offense in
263another jurisdiction which would be considered a felony if
264committed in this state, is not eligible for board membership
265unless such felon's civil rights have been restored for at least
2665 years as of the date on which such person seeks election to
267the board. The validity of an action by the board is not
268affected if it is later determined that a member of the board is
269ineligible for board membership due to having been convicted of
270a felony.
271     (c)  Any election dispute between a member and an
272association must be submitted to mandatory binding arbitration
273with the division. Such proceedings must be conducted in the
274manner provided by s. 718.1255 and the procedural rules adopted
275by the division. Unless otherwise provided in the bylaws, any
276vacancy occurring on the board before the expiration of a term
277may be filled by an affirmative vote of the majority of the
278remaining directors, even if the remaining directors constitute
279less than a quorum, or by the sole remaining director. In the
280alternative, a board may hold an election to fill the vacancy,
281in which case the election procedures must conform to the
282requirements of the governing documents. Unless otherwise
283provided in the bylaws, a board member appointed or elected
284under this section is appointed for the unexpired term of the
285seat being filled. Filling vacancies created by recall is
286governed by s. 720.303(10) and rules adopted by the division.
287     Section 6.  Subsection (2) of section 720.3085, Florida
288Statutes, is amended to read:
289     720.3085  Payment for assessments; lien claims.-
290     (2)(a)  A parcel owner, regardless of how his or her title
291to property has been acquired, including by purchase at a
292foreclosure sale or by deed in lieu of foreclosure, is liable
293for all assessments that come due while he or she is the parcel
294owner. The parcel owner's liability for assessments may not be
295avoided by waiver or suspension of the use or enjoyment of any
296common area or by abandonment of the parcel upon which the
297assessments are made. Notwithstanding the provisions of this
298paragraph, the association may not be deemed the previous owner
299for purposes of joint and several liability for assessments
300which came due while the association owned the parcel or parcels
301on which it has foreclosed or taken title via deed in lieu of
302foreclosure.
303     (b)  A parcel owner is jointly and severally liable with
304the previous parcel owner for all unpaid assessments that came
305due up to the time of transfer of title. This liability is
306without prejudice to any right the present parcel owner may have
307to recover any amounts paid by the present owner from the
308previous owner.
309     (c)  Notwithstanding anything to the contrary contained in
310this section, the liability of a first mortgagee, or its
311successor or assignee as a subsequent holder of the first
312mortgage who acquires title to a parcel by foreclosure or by
313deed in lieu of foreclosure for the unpaid assessments that
314became due before the mortgagee's acquisition of title, shall be
315the lesser of:
316     1.  The parcel's unpaid common expenses and regular
317periodic or special assessments that accrued or came due during
318the 12 months immediately preceding the acquisition of title and
319for which payment in full has not been received by the
320association; or
321     2.  One percent of the original mortgage debt.
322
323The limitations on first mortgagee liability provided by this
324paragraph apply only if the first mortgagee filed suit against
325the parcel owner and initially joined the association as a
326defendant in the mortgagee foreclosure action. Joinder of the
327association is not required if, on the date the complaint is
328filed, the association was dissolved or did not maintain an
329office or agent for service of process at a location that was
330known to or reasonably discoverable by the mortgagee.
331     Section 7.  This act shall take effect July 1, 2011.


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