Florida Senate - 2011 SB 1516
By Senator Ring
32-01556C-11 20111516__
1 A bill to be entitled
2 An act relating to community associations; amending s.
3 718.111, F.S.; requiring an insurance company insuring
4 condominium association property to provide notice to
5 unit owners if the insurance will be cancelled or not
6 renewed by the association; authorizing a majority of
7 the voting interests of the association to direct the
8 board to obtain substitute coverage; amending s.
9 718.113, F.S.; authorizing the board of a condominium
10 association to install impact glass or other code
11 compliant windows under certain circumstances;
12 amending s. 718.116, F.S.; providing that a
13 condominium association may not be deemed to be the
14 previous owner of a condominium unit under certain
15 circumstances; requiring a tenant to pay all of a unit
16 owner’s outstanding monetary obligations relating to
17 the unit to the condominium association under certain
18 circumstances; amending s. 720.303, F.S.; providing
19 that a member of a homeowners’ association has the
20 right to speak on any matter placed on the agenda of
21 the board of the association for at least 3 minutes;
22 amending s. 720.306, F.S.; specifying additional
23 requirements for elections for members of the board of
24 a homeowners’ association; specifying additional
25 requirements for candidates to be a member of the
26 board of a homeowners’ association; amending s.
27 720.3085, F.S.; providing that a condominium
28 homeowners’ association may not be deemed to be the
29 previous owner of a parcel under certain
30 circumstances; providing an effective date.
31
32 Be It Enacted by the Legislature of the State of Florida:
33
34 Section 1. Paragraph (d) of subsection (11) of section
35 718.111, Florida Statutes, is amended to read:
36 718.111 The association.—
37 (11) INSURANCE.—In order to protect the safety, health, and
38 welfare of the people of the State of Florida and to ensure
39 consistency in the provision of insurance coverage to
40 condominiums and their unit owners, this subsection applies to
41 every residential condominium in the state, regardless of the
42 date of its declaration of condominium. It is the intent of the
43 Legislature to encourage lower or stable insurance premiums for
44 associations described in this subsection.
45 (d) An association controlled by unit owners operating as a
46 residential condominium shall use its best efforts to obtain and
47 maintain adequate property insurance to protect the association,
48 the association property, the common elements, and the
49 condominium property that must be insured by the association
50 pursuant to this subsection. However, if an association having
51 50 or fewer units cancels or does not renew insurance coverage
52 required or permitted under this subsection, the insurance
53 company must notify all unit owners by certified and regular
54 mail at least 30 days before the effective date of a termination
55 of coverage. Upon receipt of the notice, a majority of the
56 voting interests may agree in writing to direct the board to
57 obtain substitute coverage for the association as a common
58 expense.
59 Section 2. Subsection (5) of section 718.113, Florida
60 Statutes, is amended to read:
61 718.113 Maintenance; limitation upon improvement; display
62 of flag; hurricane shutters; display of religious decorations.—
63 (5) Each board of administration shall adopt hurricane
64 shutter specifications for each building within each condominium
65 operated by the association which shall include color, style,
66 and other factors deemed relevant by the board. All
67 specifications adopted by the board must shall comply with the
68 applicable building code.
69 (a) The board may, subject to the provisions of s.
70 718.3026, and the approval of a majority of voting interests of
71 the condominium, install hurricane shutters, impact glass or
72 other code-compliant windows, or hurricane protection that
73 complies with or exceeds the applicable building code. However,
74 or both, except that a vote of the owners is not required if the
75 maintenance, repair, and replacement of hurricane shutters,
76 impact glass, or other code-compliant windows or other forms of
77 hurricane protection are the responsibility of the association
78 pursuant to the declaration of condominium. If However, where
79 hurricane protection or laminated glass or window film
80 architecturally designed to function as hurricane protection
81 which complies with or exceeds the current applicable building
82 code has been previously installed, the board may not install
83 hurricane shutters, or other hurricane protection, or impact
84 glass or other code-compliant windows except upon approval by a
85 majority vote of the voting interests.
86 (b) The association is shall be responsible for the
87 maintenance, repair, and replacement of the hurricane shutters
88 or other hurricane protection authorized by this subsection if
89 such hurricane shutters or other hurricane protection is the
90 responsibility of the association pursuant to the declaration of
91 condominium. If the hurricane shutters or other hurricane
92 protection authorized by this subsection are the responsibility
93 of the unit owners pursuant to the declaration of condominium,
94 the responsibility for the maintenance, repair, and replacement
95 of such items are shall be the responsibility of the unit owner.
96 (c) The board may operate shutters installed pursuant to
97 this subsection without permission of the unit owners only if
98 where such operation is necessary to preserve and protect the
99 condominium property and association property. The installation,
100 replacement, operation, repair, and maintenance of such shutters
101 in accordance with the procedures set forth in this paragraph
102 are herein shall not be deemed a material alteration to the
103 common elements or association property within the meaning of
104 this section.
105 (d) Notwithstanding any provision to the contrary in the
106 condominium documents, if approval is required by the documents,
107 a board may shall not refuse to approve the installation or
108 replacement of hurricane shutters by a unit owner conforming to
109 the specifications adopted by the board.
110 Section 3. Subsections (1) and (11) of section 718.116,
111 Florida Statutes, are amended to read:
112 718.116 Assessments; liability; lien and priority;
113 interest; collection.—
114 (1)(a) A unit owner, regardless of how his or her title has
115 been acquired, including by purchase at a foreclosure sale or by
116 deed in lieu of foreclosure, is liable for all assessments which
117 come due while he or she is the unit owner. Additionally, a unit
118 owner is jointly and severally liable with the previous owner
119 for all unpaid assessments that came due up to the time of
120 transfer of title. This liability is without prejudice to any
121 right the owner may have to recover from the previous owner the
122 amounts paid by the owner. Notwithstanding the provisions of
123 this paragraph, the association may not be deemed the previous
124 owner for purposes of joint and several liability for
125 assessments which came due while the association owned the unit
126 or units on which it has foreclosed or taken title via deed in
127 lieu of foreclosure.
128 (b) The liability of a first mortgagee or its successor or
129 assignees who acquire title to a unit by foreclosure or by deed
130 in lieu of foreclosure for the unpaid assessments that became
131 due before the mortgagee’s acquisition of title is limited to
132 the lesser of:
133 1. The unit’s unpaid common expenses and regular periodic
134 assessments which accrued or came due during the 12 months
135 immediately preceding the acquisition of title and for which
136 payment in full has not been received by the association; or
137 2. One percent of the original mortgage debt. The
138 provisions of this paragraph apply only if the first mortgagee
139 joined the association as a defendant in the foreclosure action.
140 Joinder of the association is not required if, on the date the
141 complaint is filed, the association was dissolved or did not
142 maintain an office or agent for service of process at a location
143 which was known to or reasonably discoverable by the mortgagee.
144 (c) The person acquiring title shall pay the amount owed to
145 the association within 30 days after transfer of title. Failure
146 to pay the full amount when due shall entitle the association to
147 record a claim of lien against the parcel and proceed in the
148 same manner as provided in this section for the collection of
149 unpaid assessments.
150 (d) With respect to each timeshare unit, each owner of a
151 timeshare estate therein is jointly and severally liable for the
152 payment of all assessments and other charges levied against or
153 with respect to that unit pursuant to the declaration or bylaws,
154 except to the extent that the declaration or bylaws may provide
155 to the contrary.
156 (e) Notwithstanding the provisions of paragraph (b), a
157 first mortgagee or its successor or assignees who acquire title
158 to a condominium unit as a result of the foreclosure of the
159 mortgage or by deed in lieu of foreclosure of the mortgage shall
160 be exempt from liability for all unpaid assessments attributable
161 to the parcel or chargeable to the previous owner which came due
162 prior to acquisition of title if the first mortgage was recorded
163 prior to April 1, 1992. If, however, the first mortgage was
164 recorded on or after April 1, 1992, or on the date the mortgage
165 was recorded, the declaration included language incorporating by
166 reference future amendments to this chapter, the provisions of
167 paragraph (b) shall apply.
168 (f) The provisions of this subsection are intended to
169 clarify existing law, and shall not be available in any case
170 where the unpaid assessments sought to be recovered by the
171 association are secured by a lien recorded prior to the
172 recording of the mortgage. Notwithstanding the provisions of
173 chapter 48, the association shall be a proper party to intervene
174 in any foreclosure proceeding to seek equitable relief.
175 (g) For purposes of this subsection, the term “successor or
176 assignee” as used with respect to a first mortgagee includes
177 only a subsequent holder of the first mortgage.
178 (11) If the unit is occupied by a tenant and the unit owner
179 is delinquent in paying any monetary obligation due to the
180 association, the association may make a written demand that the
181 tenant pay the outstanding and future monetary obligations
182 related to the condominium unit to the association, and the
183 tenant must make such payment. The demand is continuing in
184 nature and, upon demand, the tenant must pay the monetary
185 obligations to the association until the association releases
186 the tenant or the tenant discontinues tenancy in the unit. The
187 association must mail written notice to the unit owner of the
188 association’s demand that the tenant make payments to the
189 association. The association shall, upon request, provide the
190 tenant with written receipts for payments made. A tenant who
191 acts in good faith in response to a written demand from an
192 association is immune from any claim from the unit owner.
193 (a) If the tenant prepaid rent to the unit owner before
194 receiving the demand from the association and provides written
195 evidence of paying the rent to the association within 14 days
196 after receiving the demand, the tenant shall receive credit for
197 the prepaid rent for the applicable period and must make any
198 subsequent rental payments to the association to be credited
199 against the monetary obligations of the unit owner to the
200 association.
201 (b) The tenant is not liable for increases in the amount of
202 the monetary obligations due unless the tenant was notified in
203 writing of the increase at least 10 days before the date the
204 rent is due. The liability of the tenant may not exceed the
205 amount due from the tenant to the tenant’s landlord. The
206 tenant’s landlord shall provide the tenant a credit against
207 rents due to the unit owner in the amount of moneys paid to the
208 association under this section.
209 (c) The association may issue notices under s. 83.56 and
210 may sue for eviction under ss. 83.59-83.625 as if the
211 association were a landlord under part II of chapter 83 if the
212 tenant fails to pay a required payment to the association.
213 However, the association is not otherwise considered a landlord
214 under chapter 83 and specifically has no duties under s. 83.51.
215 (d) The tenant does not, by virtue of payment of monetary
216 obligations to the association, have any of the rights of a unit
217 owner to vote in any election or to examine the books and
218 records of the association.
219 (e) A court may supersede the effect of this subsection by
220 appointing a receiver.
221 Section 4. Paragraph (b) of subsection (2) of section
222 720.303, Florida Statutes, is amended to read:
223 720.303 Association powers and duties; meetings of board;
224 official records; budgets; financial reporting; association
225 funds; recalls.—
226 (2) BOARD MEETINGS.—
227 (b) Members have the right to attend all meetings of the
228 board and to speak on any matter placed on the agenda by
229 petition of the voting interests for at least 3 minutes. The
230 association may adopt written reasonable rules expanding the
231 right of members to speak and governing the frequency, duration,
232 and other manner of member statements, which rules must be
233 consistent with this paragraph and may include a sign-up sheet
234 for members wishing to speak. Notwithstanding any other law,
235 meetings between the board or a committee and the association’s
236 attorney to discuss proposed or pending litigation or meetings
237 of the board held for the purpose of discussing personnel
238 matters are not required to be open to the members other than
239 directors.
240 Section 5. Subsection (9) of section 720.306, Florida
241 Statutes, is amended to read:
242 720.306 Meetings of members; voting and election
243 procedures; amendments.—
244 (9)(a) ELECTIONS AND BOARD VACANCIES.—Notwithstanding the
245 governing documents of the association, elections of directors
246 must be conducted in accordance with the procedures set forth in
247 s. 718.112(2)(d)3. the governing documents of the association.
248 All members of the association are eligible to serve on the
249 board of directors, and a member may nominate himself or herself
250 as a candidate for the board at a meeting where the election is
251 to be held or, if the election process allows voting by absentee
252 ballot, in advance of the balloting. except as otherwise
253 provided in this section the governing documents, boards of
254 directors must be elected by a plurality of the votes cast by
255 eligible voters.
256 (b) Co-owners of a parcel may not serve as members of the
257 board of directors at the same time unless they own more than
258 one parcel or unless there are not enough eligible candidates to
259 fill the vacancies on the board at the time of the vacancy. A
260 person who is delinquent in the payment of any fee, fine, or
261 other obligation to the association by more than 90 days is not
262 eligible for board membership. A person who has been convicted
263 of any felony in this state or in a United States District or
264 Territorial Court, or who has been convicted of any offense in
265 another jurisdiction which would be considered a felony if
266 committed in this state, is not eligible for board membership
267 unless such felon’s civil rights have been restored for at least
268 5 years as of the date on which such person seeks election to
269 the board. The validity of an action by the board is not
270 affected if it is later determined that a member of the board is
271 ineligible for board membership due to having been convicted of
272 a felony.
273 (c) Any election dispute between a member and an
274 association must be submitted to mandatory binding arbitration
275 with the division. Such proceedings must be conducted in the
276 manner provided by s. 718.1255 and the procedural rules adopted
277 by the division. Unless otherwise provided in the bylaws, any
278 vacancy occurring on the board before the expiration of a term
279 may be filled by an affirmative vote of the majority of the
280 remaining directors, even if the remaining directors constitute
281 less than a quorum, or by the sole remaining director. In the
282 alternative, a board may hold an election to fill the vacancy,
283 in which case the election procedures must conform to the
284 requirements of the governing documents. Unless otherwise
285 provided in the bylaws, a board member appointed or elected
286 under this section is appointed for the unexpired term of the
287 seat being filled. Filling vacancies created by recall is
288 governed by s. 720.303(10) and rules adopted by the division.
289 Section 6. Subsection (2) of section 720.3085, Florida
290 Statutes, is amended to read:
291 720.3085 Payment for assessments; lien claims.—
292 (2)(a) A parcel owner, regardless of how his or her title
293 to property has been acquired, including by purchase at a
294 foreclosure sale or by deed in lieu of foreclosure, is liable
295 for all assessments that come due while he or she is the parcel
296 owner. The parcel owner’s liability for assessments may not be
297 avoided by waiver or suspension of the use or enjoyment of any
298 common area or by abandonment of the parcel upon which the
299 assessments are made. Notwithstanding the provisions of this
300 paragraph, the association may not be deemed the previous owner
301 for purposes of joint and several liability for assessments
302 which came due while the association owned the parcel or parcels
303 on which it has foreclosed or taken title via deed in lieu of
304 foreclosure.
305 (b) A parcel owner is jointly and severally liable with the
306 previous parcel owner for all unpaid assessments that came due
307 up to the time of transfer of title. This liability is without
308 prejudice to any right the present parcel owner may have to
309 recover any amounts paid by the present owner from the previous
310 owner.
311 (c) Notwithstanding anything to the contrary contained in
312 this section, the liability of a first mortgagee, or its
313 successor or assignee as a subsequent holder of the first
314 mortgage who acquires title to a parcel by foreclosure or by
315 deed in lieu of foreclosure for the unpaid assessments that
316 became due before the mortgagee’s acquisition of title, shall be
317 the lesser of:
318 1. The parcel’s unpaid common expenses and regular periodic
319 or special assessments that accrued or came due during the 12
320 months immediately preceding the acquisition of title and for
321 which payment in full has not been received by the association;
322 or
323 2. One percent of the original mortgage debt.
324
325 The limitations on first mortgagee liability provided by this
326 paragraph apply only if the first mortgagee filed suit against
327 the parcel owner and initially joined the association as a
328 defendant in the mortgagee foreclosure action. Joinder of the
329 association is not required if, on the date the complaint is
330 filed, the association was dissolved or did not maintain an
331 office or agent for service of process at a location that was
332 known to or reasonably discoverable by the mortgagee.
333 Section 7. This act shall take effect July 1, 2011.