Florida Senate - 2015 CS for CS for SB 748
By the Committees on Judiciary; and Regulated Industries; and
Senator Ring
590-03657-15 2015748c2
1 A bill to be entitled
2 An act relating to residential properties; amending s.
3 617.0721, F.S.; authorizing the use of a copy,
4 facsimile transmission, or other reliable reproduction
5 of an original proxy vote for certain purposes;
6 amending s. 718.103, F.S.; revising and providing
7 definitions; amending s. 718.111, F.S.; providing that
8 the vote necessary to charge use fees for the use of
9 the common elements or association property may be
10 approved by a majority of the voting interests
11 present, in person or by proxy, at a meeting of the
12 association if a quorum has been established; revising
13 the liability of unit owners under certain conditions;
14 revising what constitutes official records of an
15 association; amending s. 718.112, F.S.; revising the
16 requirements for board of administration and unit
17 owner meetings; clarifying the voting process for
18 providing reserves; amending s. 718.113, F.S.;
19 revising the term governing documents to condominium
20 documents; amending s. 718.116, F.S.; revising the
21 provisions relating to the liability of condominium
22 unit owners and mortgagees; revising applicability;
23 revising effect of a claim of lien; creating s.
24 718.128, F.S.; authorizing condominium associations to
25 conduct elections by electronic voting under certain
26 conditions; providing that a member voting
27 electronically is counted toward a quorum; providing
28 applicability; providing that a unit owner’s consent
29 to online voting is valid until the unit owner opts
30 out according to specified procedures; amending s.
31 718.301, F.S.; adding conditions under which certain
32 unit owners are entitled to elect at least a majority
33 of the members of the board of administration of an
34 association; requiring a bulk-unit purchaser to
35 relinquish control of the association under certain
36 circumstances; requiring a bulk-unit purchaser to
37 deliver certain items, at the bulk-unit purchaser’s
38 expense, during the transfer of association control
39 from the bulk-unit purchaser; amending s. 718.302,
40 F.S.; revising the conditions under which certain
41 grants, reservations, or contracts made by an
42 association may be cancelled; prohibiting a lender
43 unit purchaser from voting on cancellation of certain
44 grants, reservations, or contracts while the
45 association is under control of that lender-unit
46 purchaser; amending s. 718.303, F.S.; providing that a
47 fine may be levied by the board or its authorized
48 designee under certain conditions; revising the
49 requirements for levying a fine or suspension;
50 amending s. 718.501, F.S.; conforming provisions of
51 ch. 718, F.S., relating to the enforcement powers of
52 the Division of Florida Condominiums, Timeshares, and
53 Mobile Homes; creating s. 718.709, F.S.; providing
54 applicability of the provisions relating to the
55 Distressed Condominium Relief Act; creating part VIII
56 of ch. 718, F.S.; providing legislative intent;
57 providing definitions; authorizing a bulk-unit
58 purchaser to exercise certain developer rights;
59 requiring a bulk-unit purchaser to pay a working
60 capital contribution under certain circumstances;
61 providing applicability; authorizing a lender-unit
62 purchaser to exercise any developer rights he or she
63 acquires; requiring a bulk-unit purchaser and a
64 lender-unit purchaser to comply with specified
65 provisions under ch. 718, F.S.; limiting the rights of
66 bulk-unit purchasers and lender-unit purchasers to
67 vote on reserves or funding of reserves; prohibiting
68 the transfer of such voting rights; providing
69 assessment liability for bulk-unit purchasers and
70 lender-unit purchasers; providing for suspension of a
71 director who has been elected or appointed by a bulk
72 unit purchaser in certain circumstances; specifying
73 amendments and alterations for which a majority
74 approval of unit owners is required; requiring consent
75 of a bulk-unit purchaser, lender-unit purchaser, or
76 developer to certain amendments; requiring certain
77 warranties and disclosures; requiring an architect or
78 engineer to disclose specified information in a
79 condition report under certain circumstances;
80 subjecting multiple bulk-unit purchasers to joint and
81 several liability; prohibiting a board of
82 administration, a majority of which is elected by a
83 bulk-unit purchaser, from resolving certain
84 construction disputes unless other conditions are
85 satisfied; providing that a bulk-unit purchaser or
86 lender-unit purchaser who does not comply with ch.
87 718, F.S., forfeits all protections or exemptions
88 under ch. 718, F.S.; clarifying conditions under which
89 a bulk-unit purchaser must deliver certain items
90 during the transfer of association control from the
91 bulk-unit purchaser; providing conditions by which a
92 person may become a bulk-unit purchaser following
93 acquisition of title to timeshare interests that are
94 or ultimately will be included in a timeshare plan;
95 requiring disclosure to purchasers by certain bulk
96 unit purchasers of timeshare interests; amending s.
97 719.104, F.S.; revising what constitutes the official
98 records of an association; amending s. 719.106, F.S.;
99 revising the requirements for board of administration
100 and shareholder meetings; amending s. 719.108, F.S.;
101 revising applicability; revising the effect of a claim
102 of lien; creating s. 719.129, F.S.; authorizing
103 cooperative associations to conduct elections by
104 electronic voting under certain conditions; providing
105 that a member voting electronically is counted toward
106 a quorum; providing applicability; providing that a
107 unit owner’s consent to online voting is valid until
108 the unit owner opts out according to specified
109 procedures; amending s. 719.303, F.S.; providing that
110 a fine may be levied by the board or its authorized
111 designee under certain conditions; revising the
112 requirements for levying a fine or suspension;
113 amending s. 720.301, F.S.; revising the definition of
114 the term “governing documents”; creating s. 720.3015,
115 F.S.; providing a short title; amending s. 720.303,
116 F.S.; authorizing a homeowners’ association to provide
117 notice by electronic transmission in certain
118 circumstances; amending s. 720.305, F.S.; revising the
119 requirements for levying a fine or suspension;
120 revising the application of certain provisions;
121 amending s. 720.306, F.S.; revising the requirements
122 for the adoption of amendments to the governing
123 documents; revising the requirements for the election
124 of directors; revising the requirements for board of
125 director and member meetings; amending s. 720.3085,
126 F.S.; providing that the association may recover from
127 the parcel owner a reasonable charge imposed by a
128 management or bookkeeping company or a collection
129 agent which are incurred in connection with a
130 delinquent assessment; providing that such charges
131 must be liquidated, noncontingent, and based upon
132 actual time expended; providing that fees for
133 collection are not recoverable in a certain
134 circumstance; specifying the hierarchy for the
135 application of payments received for collection
136 services contracted for by the association; creating
137 s. 720.317, F.S.; authorizing homeowners’ associations
138 to conduct elections by electronic voting under
139 certain conditions; providing that a member voting
140 electronically is counted toward a quorum; providing
141 applicability; providing that a member’s consent to
142 online voting is valid until the member opts out
143 according to specified procedures; providing an
144 effective date.
145
146 Be It Enacted by the Legislature of the State of Florida:
147
148 Section 1. Subsection (2) of section 617.0721, Florida
149 Statutes, is amended to read:
150 617.0721 Voting by members.—
151 (2) A member who is entitled to vote may vote in person or,
152 unless the articles of incorporation or the bylaws otherwise
153 provide, may vote by proxy executed in writing by the member or
154 by his or her duly authorized attorney in fact. Notwithstanding
155 any provision to the contrary in the articles of incorporation
156 or bylaws, any copy, facsimile transmission, or other reliable
157 reproduction of the original proxy may be substituted or used in
158 lieu of the original proxy for any purpose for which the
159 original proxy could be used if the copy, facsimile
160 transmission, or other reproduction is a complete reproduction
161 of the entire proxy. An appointment of a proxy is not valid
162 after 11 months following the date of its execution unless
163 otherwise provided in the proxy.
164 (a) If directors or officers are to be elected by members,
165 the bylaws may provide that such elections may be conducted by
166 mail.
167 (b) A corporation may reject a vote, consent, waiver, or
168 proxy appointment if the secretary or other officer or agent
169 authorized to tabulate votes, acting in good faith, has a
170 reasonable basis for doubting the validity of the signature on
171 it or the signatory’s authority to sign for the member.
172 Section 2. Present subsections (12) through (30) of section
173 718.103, Florida Statutes, are redesignated as subsections (13)
174 through (31), respectively, a new subsection (12) is added to
175 that section, and present subsection (16) of that section is
176 amended, to read:
177 718.103 Definitions.—As used in this chapter, the term:
178 (12) “Condominium documents” means:
179 (a) The recorded declaration of condominium for a community
180 and all duly adopted and recorded amendments, supplements, and
181 exhibits of the declaration;
182 (b) The recorded articles of incorporation and bylaws of
183 the condominium association and any duly adopted and recorded
184 amendments of the declaration; and
185 (c) Rules and regulations adopted under the authority of
186 the recorded declaration of condominium, articles of
187 incorporation or bylaws, and duly adopted amendments of the
188 declaration.
189 (17)(16) “Developer” means a person who creates a
190 condominium or offers condominium parcels for sale or lease in
191 the ordinary course of business, but does not include:
192 (a) An owner or lessee of a condominium or cooperative unit
193 who has acquired the unit for his or her own occupancy;
194 (b) A cooperative association that creates a condominium by
195 conversion of an existing residential cooperative after control
196 of the association has been transferred to the unit owners if,
197 following the conversion, the unit owners are the same persons
198 who were unit owners of the cooperative and no units are offered
199 for sale or lease to the public as part of the plan of
200 conversion;
201 (c) A bulk-unit purchaser, lender-unit purchaser, bulk
202 assignee, or bulk buyer as defined in s. 718.802 718.703;
203 (d) A person who acquires title to 7 or fewer units
204 operated by the same association consisting of 40 or fewer units
205 or who acquires title to less than 20 percent of the units
206 operated by the same association consisting of more than 40
207 units, regardless of whether that person offers any of those
208 units for sale;
209 (e) The trustee and any related trust association of a
210 timeshare trust, interests in which are qualified as timeshare
211 estates pursuant to s. 721.08 or s. 721.53; or
212 (f)(d) A state, county, or municipal entity acting as a
213 lessor and not otherwise named as a developer in the declaration
214 of condominium.
215 Section 3. Subsection (4), paragraph (j) of subsection (11)
216 and paragraph (a) of subsection (12) of section 718.111, Florida
217 Statutes, are amended to read:
218 718.111 The association.—
219 (4) ASSESSMENTS; MANAGEMENT OF COMMON ELEMENTS.—The
220 association has the power to make and collect assessments and to
221 lease, maintain, repair, and replace the common elements or the
222 association property; however, the association may not charge a
223 use fee against a unit owner for the use of common elements or
224 association property unless otherwise provided for in the
225 declaration of condominium or by a majority of the voting
226 interests present, in person or by proxy, at a meeting of the
227 association if a quorum has been established vote of the
228 association or unless the charges relate to expenses incurred by
229 an owner having exclusive use of the common elements or
230 association property.
231 (11) INSURANCE.—In order to protect the safety, health, and
232 welfare of the people of the State of Florida and to ensure
233 consistency in the provision of insurance coverage to
234 condominiums and their unit owners, this subsection applies to
235 every residential condominium in the state, regardless of the
236 date of its declaration of condominium. It is the intent of the
237 Legislature to encourage lower or stable insurance premiums for
238 associations described in this subsection.
239 (j) Any portion of the condominium property that must be
240 insured by the association against property loss pursuant to
241 paragraph (f) which is damaged by an insurable event shall be
242 reconstructed, repaired, or replaced as necessary by the
243 association as a common expense. In the absence of an insurable
244 event, the association or the unit owners shall be responsible
245 for the reconstruction, repair, or replacement, as determined by
246 the maintenance provisions of the declaration or bylaws. All
247 property insurance deductibles, uninsured losses, and other
248 damages in excess of property insurance coverage under the
249 property insurance policies maintained by the association are a
250 common expense of the condominium, except that:
251 1. A unit owner is responsible for the costs of repair or
252 replacement of any portion of the condominium property not paid
253 by insurance proceeds if such damage is caused by intentional
254 conduct, negligence, or failure to comply with the terms of the
255 declaration or the rules of the association by a unit owner, the
256 members of his or her family, unit occupants, tenants, guests,
257 or invitees, without compromise of the subrogation rights of the
258 insurer.
259 2. The provisions of subparagraph 1. regarding the
260 financial responsibility of a unit owner for the costs of
261 repairing or replacing other portions of the condominium
262 property also apply to the costs of repair or replacement of
263 personal property of other unit owners or the association, as
264 well as other property, whether real or personal, which the unit
265 owners are required to insure.
266 3. To the extent the cost of repair or reconstruction for
267 which the unit owner is responsible under this paragraph is
268 reimbursed to the association by insurance proceeds, and the
269 association has collected the cost of such repair or
270 reconstruction from the unit owner, the association shall
271 reimburse the unit owner without the waiver of any rights of
272 subrogation.
273 4. The association is not obligated to pay for
274 reconstruction or repairs of property losses as a common expense
275 if the property losses were known or should have been known to a
276 unit owner and were not reported to the association until after
277 the insurance claim of the association for that property was
278 settled or resolved with finality, or denied because it was
279 untimely filed.
280 (12) OFFICIAL RECORDS.—
281 (a) From the inception of the association, the association
282 shall maintain each of the following items, if applicable, which
283 constitutes the official records of the association:
284 1. A copy of the plans, permits, warranties, and other
285 items provided by the developer pursuant to s. 718.301(4).
286 2. A photocopy of the recorded declaration of condominium
287 of each condominium operated by the association and each
288 amendment to each declaration.
289 3. A photocopy of the recorded bylaws of the association
290 and each amendment to the bylaws.
291 4. A certified copy of the articles of incorporation of the
292 association, or other documents creating the association, and
293 each amendment thereto.
294 5. A copy of the current rules of the association.
295 6. A book or books that contain the minutes of all meetings
296 of the association, the board of administration, and the unit
297 owners, which minutes must be retained for at least 7 years.
298 7. A current roster of all unit owners and their mailing
299 addresses, unit identifications, voting certifications, and, if
300 known, telephone numbers. The association shall also maintain
301 the electronic mailing addresses and facsimile numbers of unit
302 owners consenting to receive notice by electronic transmission.
303 The electronic mailing addresses and facsimile numbers are not
304 accessible to unit owners if consent to receive notice by
305 electronic transmission is not provided in accordance with
306 subparagraph (c)5. However, the association is not liable for an
307 inadvertent disclosure of the electronic mail address or
308 facsimile number for receiving electronic transmission of
309 notices.
310 8. All current insurance policies of the association and
311 condominiums operated by the association.
312 9. A current copy of any management agreement, lease, or
313 other contract to which the association is a party or under
314 which the association or the unit owners have an obligation or
315 responsibility.
316 10. Bills of sale or transfer for all property owned by the
317 association.
318 11. Accounting records for the association and separate
319 accounting records for each condominium that the association
320 operates. All accounting records must be maintained for at least
321 7 years. Any person who knowingly or intentionally defaces or
322 destroys such records, or who knowingly or intentionally fails
323 to create or maintain such records, with the intent of causing
324 harm to the association or one or more of its members, is
325 personally subject to a civil penalty pursuant to s.
326 718.501(1)(d). The accounting records must include, but are not
327 limited to:
328 a. Accurate, itemized, and detailed records of all receipts
329 and expenditures.
330 b. A current account and a monthly, bimonthly, or quarterly
331 statement of the account for each unit designating the name of
332 the unit owner, the due date and amount of each assessment, the
333 amount paid on the account, and the balance due.
334 c. All audits, reviews, accounting statements, and
335 financial reports of the association or condominium.
336 d. All contracts for work to be performed. Bids for work to
337 be performed are also considered official records and must be
338 maintained by the association.
339 12. Ballots, sign-in sheets, voting proxies, and all other
340 papers relating to voting by unit owners, which must be
341 maintained for 1 year from the date of the election, vote, or
342 meeting to which the document relates, notwithstanding paragraph
343 (b).
344 13. All rental records if the association is acting as
345 agent for the rental of condominium units.
346 14. A copy of the current question and answer sheet as
347 described in s. 718.504.
348 15. All other written records of the association not
349 specifically included in the foregoing which are related to the
350 operation of the association.
351 16. A copy of the inspection report as described in s.
352 718.301(4)(p).
353 Section 4. Paragraphs (c), (d), and (f) of subsection (2)
354 of section 718.112, Florida Statutes, are amended to read:
355 718.112 Bylaws.—
356 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
357 following and, if they do not do so, shall be deemed to include
358 the following:
359 (c) Board of administration meetings.—Meetings of the board
360 of administration at which a quorum of the members is present
361 are open to all unit owners. Members of the board of
362 administration may use e-mail as a means of communication but
363 may not cast a vote on an association matter via e-mail. A unit
364 owner may tape record or videotape the meetings; however, a unit
365 owner may not post the recordings on any website or other media
366 that can readily be viewed by persons who are not members of the
367 association. The right to attend such meetings includes the
368 right to speak at such meetings with reference to all designated
369 agenda items. The division shall adopt reasonable rules
370 governing the tape recording and videotaping of the meeting. The
371 association may adopt written reasonable rules governing the
372 frequency, duration, and manner of unit owner statements.
373 1. Adequate notice of all board meetings, which must
374 specifically identify all agenda items, must be posted
375 conspicuously on the condominium property or association
376 property at least 48 continuous hours before the meeting except
377 in an emergency. If 20 percent of the voting interests petition
378 the board to address an item of business, the board, within 60
379 days after receipt of the petition, shall place the item on the
380 agenda at its next regular board meeting or at a special meeting
381 called for that purpose. An item not included on the notice may
382 be taken up on an emergency basis by a vote of at least a
383 majority plus one of the board members. Such emergency action
384 must be noticed and ratified at the next regular board meeting.
385 However, written notice of a meeting at which a nonemergency
386 special assessment or an amendment to rules regarding unit use
387 will be considered must be mailed, delivered, or electronically
388 transmitted to the unit owners and posted conspicuously on the
389 condominium property or association property at least 14 days
390 before the meeting. Evidence of compliance with this 14-day
391 notice requirement must be made by an affidavit executed by the
392 person providing the notice and filed with the official records
393 of the association. Upon notice to the unit owners, the board
394 shall, by duly adopted rule, designate a specific location on
395 the condominium or association property where all notices of
396 board meetings must be posted. If there is no condominium
397 property or association property where notices can be posted,
398 notices shall be mailed, delivered, or electronically
399 transmitted to each unit owner at least 14 days before the
400 meeting. In lieu of or in addition to the physical posting of
401 the notice on the condominium property or association property,
402 the association may, by reasonable rule, adopt a procedure for
403 conspicuously posting and repeatedly broadcasting the notice and
404 the agenda on a closed-circuit cable television system serving
405 the condominium association. However, if broadcast notice is
406 used in lieu of a notice physically posted on condominium
407 property or association property, the notice and agenda must be
408 broadcast at least four times every broadcast hour of each day
409 that a posted notice is otherwise required under this section.
410 If broadcast notice is provided, the notice and agenda must be
411 broadcast in a manner and for a sufficient continuous length of
412 time so as to allow an average reader to observe the notice and
413 read and comprehend the entire content of the notice and the
414 agenda. Notice of any meeting in which regular or special
415 assessments against unit owners are to be considered must
416 specifically state that assessments will be considered and
417 provide the nature, estimated cost, and description of the
418 purposes for such assessments.
419 2. Meetings of a committee to take final action on behalf
420 of the board or make recommendations to the board regarding the
421 association budget are subject to this paragraph. Meetings of a
422 committee that does not take final action on behalf of the board
423 or make recommendations to the board regarding the association
424 budget are subject to this section, unless those meetings are
425 exempted from this section by the bylaws of the association.
426 3. Notwithstanding any other law, the requirement that
427 board meetings and committee meetings be open to the unit owners
428 does not apply to:
429 a. Meetings between the board or a committee and the
430 association’s attorney, with respect to proposed or pending
431 litigation, if the meeting is held for the purpose of seeking or
432 rendering legal advice; or
433 b. Board meetings held for the purpose of discussing
434 personnel matters.
435 (d) Unit owner meetings.—
436 1. An annual meeting of the unit owners shall be held at
437 the location provided in the association bylaws and, if the
438 bylaws are silent as to the location, the meeting shall be held
439 within 45 miles of the condominium property. However, such
440 distance requirement does not apply to an association governing
441 a timeshare condominium.
442 2. Unless the bylaws provide otherwise, a vacancy on the
443 board caused by the expiration of a director’s term shall be
444 filled by electing a new board member, and the election must be
445 by secret ballot. An election is not required if the number of
446 vacancies equals or exceeds the number of candidates. For
447 purposes of this paragraph, the term “candidate” means an
448 eligible person who has timely submitted the written notice, as
449 described in sub-subparagraph 4.a., of his or her intention to
450 become a candidate. Except in a timeshare or nonresidential
451 condominium, or if the staggered term of a board member does not
452 expire until a later annual meeting, or if all members’ terms
453 would otherwise expire but there are no candidates, the terms of
454 all board members expire at the annual meeting, and such members
455 may stand for reelection unless prohibited by the bylaws. If the
456 bylaws or articles of incorporation permit terms of no more than
457 2 years, the association board members may serve 2-year terms.
458 If the number of board members whose terms expire at the annual
459 meeting equals or exceeds the number of candidates, the
460 candidates become members of the board effective upon the
461 adjournment of the annual meeting. Unless the bylaws provide
462 otherwise, any remaining vacancies shall be filled by the
463 affirmative vote of the majority of the directors making up the
464 newly constituted board even if the directors constitute less
465 than a quorum or there is only one director. In a residential
466 condominium association of more than 10 units or in a
467 residential condominium association that does not include
468 timeshare units or timeshare interests, coowners of a unit may
469 not serve as members of the board of directors at the same time
470 unless they own more than one unit or unless there are not
471 enough eligible candidates to fill the vacancies on the board at
472 the time of the vacancy. A unit owner in a residential
473 condominium desiring to be a candidate for board membership must
474 comply with sub-subparagraph 4.a. and must be eligible to be a
475 candidate to serve on the board of directors at the time of the
476 deadline for submitting a notice of intent to run in order to
477 have his or her name listed as a proper candidate on the ballot
478 or to serve on the board. A person who has been suspended or
479 removed by the division under this chapter, or who is delinquent
480 in the payment of any monetary obligation due to the
481 association, is not eligible to be a candidate for board
482 membership and may not be listed on the ballot. A person who has
483 been convicted of any felony in this state or in a United States
484 District or Territorial Court, or who has been convicted of any
485 offense in another jurisdiction which would be considered a
486 felony if committed in this state, is not eligible for board
487 membership unless such felon’s civil rights have been restored
488 for at least 5 years as of the date such person seeks election
489 to the board. The validity of an action by the board is not
490 affected if it is later determined that a board member is
491 ineligible for board membership due to having been convicted of
492 a felony. This subparagraph does not limit the term of a member
493 of the board of a nonresidential condominium.
494 3. The bylaws must provide the method of calling meetings
495 of unit owners, including annual meetings. Written notice must
496 include an agenda, must be mailed, hand delivered, or
497 electronically transmitted to each unit owner at least 14 days
498 before the annual meeting, and must be posted in a conspicuous
499 place on the condominium property or association property at
500 least 14 continuous days before the annual meeting. Upon notice
501 to the unit owners, the board shall, by duly adopted rule,
502 designate a specific location on the condominium property or
503 association property where all notices of unit owner meetings
504 shall be posted. This requirement does not apply if there is no
505 condominium property or association property for posting
506 notices. In lieu of, or in addition to, the physical posting of
507 meeting notices, the association may, by reasonable rule, adopt
508 a procedure for conspicuously posting and repeatedly
509 broadcasting the notice and the agenda on a closed-circuit cable
510 television system serving the condominium association. However,
511 if broadcast notice is used in lieu of a notice posted
512 physically on the condominium property or association property,
513 the notice and agenda must be broadcast at least four times
514 every broadcast hour of each day that a posted notice is
515 otherwise required under this section. If broadcast notice is
516 provided, the notice and agenda must be broadcast in a manner
517 and for a sufficient continuous length of time so as to allow an
518 average reader to observe the notice and read and comprehend the
519 entire content of the notice and the agenda. Unless a unit owner
520 waives in writing the right to receive notice of the annual
521 meeting, such notice must be hand delivered, mailed, or
522 electronically transmitted to each unit owner. Notice for
523 meetings and notice for all other purposes must be mailed to
524 each unit owner at the address last furnished to the association
525 by the unit owner, or hand delivered to each unit owner.
526 However, if a unit is owned by more than one person, the
527 association must provide notice to the address that the
528 developer identifies for that purpose and thereafter as one or
529 more of the owners of the unit advise the association in
530 writing, or if no address is given or the owners of the unit do
531 not agree, to the address provided on the deed of record. An
532 officer of the association, or the manager or other person
533 providing notice of the association meeting, must provide an
534 affidavit or United States Postal Service certificate of
535 mailing, to be included in the official records of the
536 association affirming that the notice was mailed or hand
537 delivered in accordance with this provision.
538 4. The members of the board of a residential condominium
539 shall be elected by written ballot or voting machine. Proxies
540 may not be used in electing the board in general elections or
541 elections to fill vacancies caused by recall, resignation, or
542 otherwise, unless otherwise provided in this chapter. This
543 subparagraph does not apply to an association governing a
544 timeshare condominium.
545 a. At least 60 days before a scheduled election, the
546 association shall mail, deliver, or electronically transmit, by
547 separate association mailing or included in another association
548 mailing, delivery, or transmission, including regularly
549 published newsletters, to each unit owner entitled to a vote, a
550 first notice of the date of the election. A unit owner or other
551 eligible person desiring to be a candidate for the board must
552 give written notice of his or her intent to be a candidate to
553 the association at least 40 days before a scheduled election.
554 Together with the written notice and agenda as set forth in
555 subparagraph 3., the association shall mail, deliver, or
556 electronically transmit a second notice of the election to all
557 unit owners entitled to vote, together with a ballot that lists
558 all candidates. Upon request of a candidate, an information
559 sheet, no larger than 8 1/2 inches by 11 inches, which must be
560 furnished by the candidate at least 35 days before the election,
561 must be included with the mailing, delivery, or transmission of
562 the ballot, with the costs of mailing, delivery, or electronic
563 transmission and copying to be borne by the association. The
564 association is not liable for the contents of the information
565 sheets prepared by the candidates. In order to reduce costs, the
566 association may print or duplicate the information sheets on
567 both sides of the paper. The division shall by rule establish
568 voting procedures consistent with this sub-subparagraph,
569 including rules establishing procedures for giving notice by
570 electronic transmission and rules providing for the secrecy of
571 ballots. Elections shall be decided by a plurality of ballots
572 cast. There is no quorum requirement; however, at least 20
573 percent of the eligible voters must cast a ballot in order to
574 have a valid election. A unit owner may not permit any other
575 person to vote his or her ballot, and any ballots improperly
576 cast are invalid. A unit owner who violates this provision may
577 be fined by the association in accordance with s. 718.303. A
578 unit owner who needs assistance in casting the ballot for the
579 reasons stated in s. 101.051 may obtain such assistance. The
580 regular election must occur on the date of the annual meeting.
581 Notwithstanding this sub-subparagraph, an election is not
582 required unless more candidates file notices of intent to run or
583 are nominated than board vacancies exist.
584 b. Within 90 days after being elected or appointed to the
585 board of an association of a residential condominium, each newly
586 elected or appointed director shall certify in writing to the
587 secretary of the association that he or she has read the
588 association’s declaration of condominium, articles of
589 incorporation, bylaws, and current written policies; that he or
590 she will work to uphold such documents and policies to the best
591 of his or her ability; and that he or she will faithfully
592 discharge his or her fiduciary responsibility to the
593 association’s members. In lieu of this written certification,
594 within 90 days after being elected or appointed to the board,
595 the newly elected or appointed director may submit a certificate
596 of having satisfactorily completed the educational curriculum
597 administered by a division-approved condominium education
598 provider within 1 year before or 90 days after the date of
599 election or appointment. The written certification or
600 educational certificate is valid and does not have to be
601 resubmitted as long as the director serves on the board without
602 interruption. A director of an association of a residential
603 condominium who fails to timely file the written certification
604 or educational certificate is suspended from service on the
605 board until he or she complies with this sub-subparagraph. The
606 board may temporarily fill the vacancy during the period of
607 suspension. The secretary shall cause the association to retain
608 a director’s written certification or educational certificate
609 for inspection by the members for 5 years after a director’s
610 election or the duration of the director’s uninterrupted tenure,
611 whichever is longer. Failure to have such written certification
612 or educational certificate on file does not affect the validity
613 of any board action.
614 c. Any challenge to the election process must be commenced
615 within 60 days after the election results are announced.
616 5. Any approval by unit owners called for by this chapter
617 or the applicable declaration or bylaws, including, but not
618 limited to, the approval requirement in s. 718.111(8), must be
619 made at a duly noticed meeting of unit owners and is subject to
620 all requirements of this chapter or the applicable condominium
621 documents relating to unit owner decisionmaking, except that
622 unit owners may take action by written agreement, without
623 meetings, on matters for which action by written agreement
624 without meetings is expressly allowed by the applicable bylaws
625 or declaration or any law that provides for such action.
626 6. Unit owners may waive notice of specific meetings if
627 allowed by the applicable bylaws or declaration or any law. If
628 authorized by the bylaws, Notice of meetings of the board of
629 administration, unit owner meetings, except unit owner meetings
630 called to recall board members under paragraph (j), and
631 committee meetings may be given by electronic transmission to
632 unit owners who consent to receive notice by electronic
633 transmission.
634 7. Unit owners have the right to participate in meetings of
635 unit owners with reference to all designated agenda items.
636 However, the association may adopt reasonable rules governing
637 the frequency, duration, and manner of unit owner participation.
638 8. A unit owner may tape record or videotape a meeting of
639 the unit owners subject to reasonable rules adopted by the
640 division; however, a unit owner may not post the recording on
641 any website or other media that can readily be viewed by persons
642 who are not members of the association.
643 9. Unless otherwise provided in the bylaws, any vacancy
644 occurring on the board before the expiration of a term may be
645 filled by the affirmative vote of the majority of the remaining
646 directors, even if the remaining directors constitute less than
647 a quorum, or by the sole remaining director. In the alternative,
648 a board may hold an election to fill the vacancy, in which case
649 the election procedures must conform to sub-subparagraph 4.a.
650 unless the association governs 10 units or fewer and has opted
651 out of the statutory election process, in which case the bylaws
652 of the association control. Unless otherwise provided in the
653 bylaws, a board member appointed or elected under this section
654 shall fill the vacancy for the unexpired term of the seat being
655 filled. Filling vacancies created by recall is governed by
656 paragraph (j) and rules adopted by the division.
657 10. This chapter does not limit the use of general or
658 limited proxies, require the use of general or limited proxies,
659 or require the use of a written ballot or voting machine for any
660 agenda item or election at any meeting of a timeshare
661 condominium association or nonresidential condominium
662 association.
663
664 Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a., an
665 association of 10 or fewer units may, by affirmative vote of a
666 majority of the total voting interests, provide for different
667 voting and election procedures in its bylaws, which may be by a
668 proxy specifically delineating the different voting and election
669 procedures. The different voting and election procedures may
670 provide for elections to be conducted by limited or general
671 proxy.
672 (f) Annual budget.—
673 1. The proposed annual budget of estimated revenues and
674 expenses must be detailed and must show the amounts budgeted by
675 accounts and expense classifications, including, at a minimum,
676 any if applicable, but not limited to, those expenses listed in
677 s. 718.504(21). A multicondominium association shall adopt a
678 separate budget of common expenses for each condominium the
679 association operates and shall adopt a separate budget of common
680 expenses for the association. In addition, if the association
681 maintains limited common elements with the cost to be shared
682 only by those entitled to use the limited common elements as
683 provided for in s. 718.113(1), the budget or a schedule attached
684 to it must show the amount budgeted for this maintenance. If,
685 after turnover of control of the association to the unit owners,
686 any of the expenses listed in s. 718.504(21) are not applicable,
687 they need not be listed.
688 2.a. In addition to annual operating expenses, the budget
689 must include reserve accounts for capital expenditures and
690 deferred maintenance. These accounts must include, but are not
691 limited to, roof replacement, building painting, and pavement
692 resurfacing, regardless of the amount of deferred maintenance
693 expense or replacement cost, and for any other item that has a
694 deferred maintenance expense or replacement cost that exceeds
695 $10,000. The amount to be reserved must be computed using a
696 formula based upon estimated remaining useful life and estimated
697 replacement cost or deferred maintenance expense of each reserve
698 item. The association may adjust replacement reserve assessments
699 annually to take into account any changes in estimates or
700 extension of the useful life of a reserve item caused by
701 deferred maintenance. This subsection does not apply to an
702 adopted budget in which the members of an association have
703 determined, by a majority vote at a duly called meeting of the
704 association, to provide no reserves or less reserves than
705 required by this subsection.
706 b. Before However, prior to turnover of control of an
707 association by a developer to unit owners other than a developer
708 pursuant to s. 718.301, the developer may vote the voting
709 interests allocated to its units to waive the reserves or reduce
710 the funding of reserves through the period expiring at the end
711 of the second fiscal year after the fiscal year in which the
712 certificate of a surveyor and mapper is recorded pursuant to s.
713 718.104(4)(e) or an instrument that transfers title to a unit in
714 the condominium which is not accompanied by a recorded
715 assignment of developer rights in favor of the grantee of such
716 unit is recorded, whichever occurs first, after which time
717 reserves may be waived or reduced only upon the vote of a
718 majority of all nondeveloper voting interests voting in person
719 or by limited proxy at a duly called meeting of the association.
720 If a meeting of the unit owners has been called to determine
721 whether to waive or reduce the funding of reserves, and no such
722 result is achieved or a quorum is not attained, the reserves
723 included in the budget shall go into effect. After the turnover,
724 the developer may vote its voting interest to waive or reduce
725 the funding of reserves.
726 3. Reserve funds and any interest accruing thereon shall
727 remain in the reserve account or accounts, and may be used only
728 for authorized reserve expenditures unless their use for other
729 purposes is approved in advance by a majority vote at a duly
730 called meeting of the association. Before Prior to turnover of
731 control of an association by a developer to unit owners other
732 than the developer pursuant to s. 718.301, the developer
733 controlled association may shall not vote to use reserves for
734 purposes other than those that for which they were intended
735 without the approval of a majority of all nondeveloper voting
736 interests, voting in person or by limited proxy at a duly called
737 meeting of the association.
738 4. The only voting interests that are eligible to vote on
739 questions that involve waiving or reducing the funding of
740 reserves, or using existing reserve funds for purposes other
741 than purposes for which the reserves were intended, are the
742 voting interests of the units subject to assessment to fund the
743 reserves in question. Proxy questions relating to waiving or
744 reducing the funding of reserves or using existing reserve funds
745 for purposes other than purposes for which the reserves were
746 intended must shall contain the following statement in
747 capitalized, bold letters in a font size larger than any other
748 used on the face of the proxy ballot: WAIVING OF RESERVES, IN
749 WHOLE OR IN PART, OR ALLOWING ALTERNATIVE USES OF EXISTING
750 RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF
751 UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS.
752 Section 5. Subsection (7) of section 718.113, Florida
753 Statutes, is amended to read:
754 718.113 Maintenance; limitation upon improvement; display
755 of flag; hurricane shutters and protection; display of religious
756 decorations.—
757 (7) Notwithstanding the provisions of this section or the
758 condominium governing documents of a condominium or a
759 multicondominium association, the board of administration may,
760 without any requirement for approval of the unit owners, install
761 upon or within the common elements or association property solar
762 collectors, clotheslines, or other energy-efficient devices
763 based on renewable resources for the benefit of the unit owners.
764 Section 6. Paragraphs (a) and (b) of subsection (1),
765 subsection (3), and paragraph (b) of subsection (5) of section
766 718.116, Florida Statutes, are amended to read:
767 718.116 Assessments; liability; lien and priority;
768 interest; collection.—
769 (1)(a) A unit owner, regardless of how the unit owner has
770 acquired his or her title has been acquired, including, but not
771 limited to, by purchase at a foreclosure sale or by deed in lieu
772 of foreclosure, is liable for all assessments that which come
773 due while he or she is the unit owner, including any special
774 assessments or installments on special assessments coming due
775 during the period of ownership, regardless of when the special
776 assessment was levied. Additionally, a unit owner is jointly and
777 severally liable with the previous unit owner for all unpaid
778 monthly and special assessments, interest and late fees on both
779 unpaid assessments and unpaid special assessments, and costs and
780 reasonable attorney fees incurred by the association in an
781 attempt to collect all such amounts that came due up to the time
782 of transfer of title. This joint and several liability of a
783 subsequent unit owner does not apply to an owner who acquires
784 title through purchase of a tax deed and is without prejudice to
785 any right the present unit owner may have to recover from the
786 previous unit owner the amounts paid by the present unit owner.
787 For the purposes of this section paragraph, the term “previous
788 unit owner” does not include an association that acquires title
789 to a unit delinquent property through foreclosure or by deed in
790 lieu of foreclosure. A present unit owner’s liability for unpaid
791 assessments, interest, late fees, and costs and reasonable
792 attorney fees is limited to any unpaid assessments, interest,
793 late fees, and costs and reasonable attorney fees that accrued
794 before the association acquired title to the unit delinquent
795 property through foreclosure or by deed in lieu of foreclosure.
796 (b)1. The liability of a first mortgagee or its successor
797 or assignees who acquire title to a unit by foreclosure or by
798 deed in lieu of foreclosure for the unpaid assessments,
799 interest, late fees, costs and reasonable attorney fees, and any
800 other fee, cost, or expense incurred by or on behalf of the
801 association in the collection process which that became due
802 before the mortgagee’s acquisition of title is limited to the
803 lesser of:
804 a. The unit’s unpaid common expenses and regular periodic
805 assessments which accrued or came due during the 12 months
806 immediately preceding the acquisition of title and for which
807 payment in full has not been received by the association; or
808 b. One percent of the original mortgage debt. The
809 provisions of this paragraph apply only if the first mortgagee
810 joined the association as a defendant in the foreclosure action.
811 Joinder of the association is not required if, on the date the
812 complaint is filed, the association was dissolved or did not
813 maintain an office or agent for service of process at a location
814 which was known to or reasonably discoverable by the mortgagee.
815 2. An association, or its successor or assignee, that
816 acquires title to a unit through the foreclosure of its lien for
817 assessments is not liable for any unpaid assessments, late fees,
818 interest, or reasonable attorney attorney’s fees and costs that
819 came due before the association’s acquisition of title in favor
820 of any other association, as defined in s. 718.103(2) or s.
821 720.301(9), which holds a superior lien interest on the unit.
822 This subparagraph is intended to clarify existing law.
823 (3) Assessments and installments on assessments which are
824 not paid when due bear interest at the rate provided in the
825 declaration, from the due date until paid. The rate may not
826 exceed the rate allowed by law, and, if no rate is provided in
827 the declaration, interest accrues at the rate of 18 percent per
828 year. If provided by the declaration or bylaws, the association
829 may, in addition to such interest, charge an administrative late
830 fee of up to the greater of $25 or 5 percent of each delinquent
831 installment for which the payment is late. The association may
832 also recover from the unit owner any reasonable charges imposed
833 upon the association under a written contract with its
834 management or bookkeeping company or collection agent which are
835 incurred in connection with collecting a delinquent assessment.
836 Such charges must be based on the actual time expended
837 performing necessary, nonduplicative services. Fees for
838 collection are not recoverable for the period after referral of
839 the matter to an association’s legal counsel. Any payment
840 received by an association must be applied first to any interest
841 accrued by the association, then to any administrative late fee,
842 then to any costs and reasonable attorney attorney’s fees
843 incurred in collection, then to any reasonable costs for
844 collection services contracted by the association, and then to
845 the delinquent assessment. The foregoing is applicable
846 notwithstanding s. 673.3111, any purported accord and
847 satisfaction, or any restrictive endorsement, designation, or
848 instruction placed on or accompanying a payment. The preceding
849 sentence is intended to clarify existing law. A late fee is not
850 subject to chapter 687 or s. 718.303(4).
851 (5)
852 (b) To be valid, a claim of lien must state the description
853 of the condominium parcel, the name of the record owner, the
854 name and address of the association, the amount due, and the due
855 dates. It must be executed and acknowledged by an officer or
856 authorized agent of the association. The lien is not effective 1
857 year after the claim of lien was recorded unless, within that
858 time, an action to enforce the lien is commenced. The 1-year
859 period is automatically extended for any length of time during
860 which the association is prevented from filing a foreclosure
861 action by an automatic stay resulting from a bankruptcy petition
862 filed by the parcel owner or any other person claiming an
863 interest in the parcel. The claim of lien secures all unpaid
864 assessments that are due and that may accrue after the claim of
865 lien is recorded and through the entry of a final judgment, as
866 well as interest, authorized administrative late fees, and all
867 reasonable costs and attorney attorney’s fees incurred by the
868 association incident to the collection process, including, but
869 not limited to, any reasonable costs for collection services
870 contracted for by the association. Upon payment in full, the
871 person making the payment is entitled to a satisfaction of the
872 lien.
873 Section 7. Section 718.128, Florida Statutes, is created to
874 read:
875 718.128 Electronic voting.—The association may conduct
876 elections and other unit owner votes through an Internet-based
877 online voting system if a unit owner consents in writing to
878 online voting and if the following requirements are met:
879 (1) The association provides each unit owner with:
880 (a) A method to authenticate the unit owner’s identity to
881 the online voting system.
882 (b) For elections of the board, a method to transmit an
883 electronic ballot to the online voting system that ensures the
884 secrecy and integrity of each ballot.
885 (c) A method to confirm, at least 14 days before the voting
886 deadline, that the unit owner’s electronic device can
887 successfully communicate with the online voting system.
888 (2) The association uses an online voting system that is:
889 (a) Able to authenticate the unit owner’s identity.
890 (b) Able to authenticate the validity of each electronic
891 vote to ensure that the vote is not altered in transit.
892 (c) Able to transmit a receipt from the online voting
893 system to each unit owner who casts an electronic vote.
894 (d) For elections of the board of administration, able to
895 permanently separate any authentication or identifying
896 information from the electronic election ballot, rendering it
897 impossible to tie an election ballot to a specific unit owner.
898 (e) Able to store and keep electronic votes accessible to
899 election officials for recount, inspection, and review purposes.
900 (3) A unit owner voting electronically pursuant to this
901 section shall be counted as being in attendance at the meeting
902 for purposes of determining a quorum. A substantive vote of the
903 unit owners may not be taken on any issue other than the issues
904 specifically identified in the electronic vote when a quorum is
905 established based on unit owners voting electronically pursuant
906 to this section.
907 (4) This section applies to an association that provides
908 for and authorizes an online voting system pursuant to this
909 section by a board resolution. The board resolution must provide
910 that unit owners receive notice of the opportunity to vote
911 through an online voting system, must establish reasonable
912 procedures and deadlines for unit owners to consent in writing
913 to online voting, and must establish reasonable procedures and
914 deadlines for unit owners to opt out of online voting after
915 giving consent. Written notice of a meeting at which the
916 resolution will be considered must be mailed, delivered, or
917 electronically transmitted to the unit owners and posted
918 conspicuously on the condominium property or association
919 property at least 14 days before the meeting. Evidence of
920 compliance with the 14-day notice requirement must be made by an
921 affidavit executed by the person providing the notice and filed
922 with the official records of the association.
923 (5) A unit owner’s consent to online voting is valid until
924 the unit owner opts out of online voting according to the
925 procedures established by the board of administration pursuant
926 to paragraph (4).
927 (6) This section may apply to any matter that requires a
928 vote of the unit owners.
929 Section 8. Subsections (1) and (4) of section 718.301,
930 Florida Statutes, are amended to read:
931 718.301 Transfer of association control; claims of defect
932 by association.—
933 (1) If unit owners other than the developer own 15 percent
934 or more of the units in a condominium that ultimately will be
935 operated ultimately by an association, as provided in the
936 declaration, articles of incorporation, or bylaws as originally
937 recorded, the unit owners other than the developer are entitled
938 to elect at least one-third of the members of the board of
939 administration of the association. Unit owners other than the
940 developer are entitled to elect at least a majority of the
941 members of the board of administration of an association, upon
942 the first to occur of any of the following events that occur:
943 (a) Three years after 50 percent of the units that
944 ultimately will be operated ultimately by the association, as
945 provided in the declaration, articles of incorporation, or
946 bylaws as originally recorded, have been conveyed to
947 purchasers.;
948 (b) Three months after 90 percent of the units that
949 ultimately will be operated ultimately by the association, as
950 provided in the declaration, articles of incorporation, or
951 bylaws as originally recorded, have been conveyed to
952 purchasers.;
953 (c) When all the units that ultimately will be operated
954 ultimately by the association, as provided in the declaration,
955 articles of incorporation, or bylaws as originally recorded,
956 have been completed, some of them have been conveyed to
957 purchasers, and none of the others is are being offered for sale
958 by the developer in the ordinary course of business.;
959 (d) When some of the units have been conveyed to purchasers
960 and none of the others is are being constructed or offered for
961 sale by the developer in the ordinary course of business.;
962 (e) When the developer files a petition seeking protection
963 in bankruptcy.;
964 (f) When a bulk-unit purchaser who owns a majority of the
965 units that ultimately will be operated by the association, as
966 provided in the declaration, articles of incorporation, or
967 bylaws as originally recorded, files a petition seeking
968 protection in bankruptcy.
969 (g)(f) When a receiver for the developer is appointed by a
970 circuit court and is not discharged within 30 days after such
971 appointment, unless the court determines within 30 days after
972 appointment of the receiver that transfer of control would be
973 detrimental to the association or its members.; or
974 (h) When a receiver for a bulk-unit purchaser who owns a
975 majority of the units that ultimately will be operated by the
976 association, as provided in the declaration, articles of
977 incorporation, or bylaws as originally recorded, is appointed by
978 a circuit court and is not discharged within 30 days after such
979 appointment, unless the court determines within 30 days after
980 appointment of the receiver that transfer of control would be
981 detrimental to the association or its members.
982 (i) Five years after the date of recording of the first
983 conveyance to a bulk-unit purchaser who owns a majority of the
984 units that ultimately will be operated by the association, as
985 provided in the declaration, articles of incorporation, or
986 bylaws as originally recorded. Notwithstanding that unit owners
987 other than the developer are entitled to elect a majority of the
988 members of the board of administration and notwithstanding s.
989 718.112(2)(f)2., 5 years after the date of recording of the
990 first conveyance of a unit to a bulk-unit purchaser who owns a
991 majority of the units, the bulk-unit purchaser may exercise the
992 right to vote for each unit owned by the bulk-unit purchaser in
993 the same manner as any other unit owner except for the purposes
994 of reacquiring control of the association or electing or
995 appointing a majority of the members of the board of
996 administration.
997 (j)(g) Seven years after the date of the recording of the
998 certificate of a surveyor and mapper pursuant to s.
999 718.104(4)(e) or the recording of an instrument that transfers
1000 title to a unit in the condominium which is not accompanied by a
1001 recorded assignment of developer rights in favor of the grantee
1002 of such unit, whichever occurs first; or, in the case of an
1003 association that may ultimately may operate more than one
1004 condominium, 7 years after the date of the recording of the
1005 certificate of a surveyor and mapper pursuant to s.
1006 718.104(4)(e) or the recording of an instrument that transfers
1007 title to a unit which is not accompanied by a recorded
1008 assignment of developer rights in favor of the grantee of such
1009 unit, whichever occurs first, for the first condominium it
1010 operates; or, in the case of an association operating a phase
1011 condominium created pursuant to s. 718.403, 7 years after the
1012 date of the recording of the certificate of a surveyor and
1013 mapper pursuant to s. 718.104(4)(e) or the recording of an
1014 instrument that transfers title to a unit which is not
1015 accompanied by a recorded assignment of developer rights in
1016 favor of the grantee of such unit, whichever occurs first.
1017
1018 The developer is entitled to elect at least one member of the
1019 board of administration of an association as long as the
1020 developer holds for sale in the ordinary course of business at
1021 least 5 percent, in condominiums with fewer than 500 units, and
1022 2 percent, in condominiums with more than 500 units, of the
1023 units in a condominium operated by the association. After the
1024 developer relinquishes control of the association, the developer
1025 may exercise the right to vote any developer-owned units in the
1026 same manner as any other unit owner except for purposes of
1027 reacquiring control of the association or selecting a the
1028 majority of the members of the board of administration.
1029 (4) At the time that unit owners other than the developer
1030 elect a majority of the members of the board of administration
1031 of an association, the developer or bulk-unit purchaser shall
1032 relinquish control of the association, and the unit owners shall
1033 accept control. Simultaneously, or for the purposes of paragraph
1034 (c) not more than 90 days thereafter, the developer or bulk-unit
1035 purchaser shall deliver to the association, at the developer’s
1036 or bulk-unit purchaser’s expense, all property of the unit
1037 owners and of the association which is held or controlled by the
1038 developer or bulk-unit purchaser, including, but not limited to,
1039 the following items, if applicable, as to each condominium
1040 operated by the association:
1041 (a)1. The original or a photocopy of the recorded
1042 declaration of condominium and all amendments thereto. If a
1043 photocopy is provided, it must be certified by affidavit of the
1044 developer, a bulk-unit purchaser, or an officer or agent of the
1045 developer or bulk-unit purchaser as being a complete copy of the
1046 actual recorded declaration.
1047 2. A certified copy of the articles of incorporation of the
1048 association or, if the association was created before prior to
1049 the effective date of this act and it is not incorporated,
1050 copies of the documents creating the association.
1051 3. A copy of the bylaws.
1052 4. The minute books, including all minutes, and other books
1053 and records of the association, if any.
1054 5. Any house rules and regulations that have been adopted
1055 promulgated.
1056 (b) Resignations of officers and members of the board of
1057 administration who are required to resign because the developer
1058 or bulk-unit purchaser is required to relinquish control of the
1059 association.
1060 (c) The financial records, including financial statements
1061 of the association, and source documents from the incorporation
1062 of the association through the date of turnover. The records
1063 must be audited for the period from the incorporation of the
1064 association or from the period covered by the last audit, if an
1065 audit has been performed for each fiscal year since
1066 incorporation, by an independent certified public accountant.
1067 All financial statements must be prepared in accordance with
1068 generally accepted accounting principles and must be audited in
1069 accordance with generally accepted auditing standards, as
1070 prescribed by the Florida Board of Accountancy, pursuant to
1071 chapter 473. The accountant performing the audit shall examine
1072 to the extent necessary supporting documents and records,
1073 including the cash disbursements and related paid invoices, to
1074 determine whether if expenditures were for association purposes
1075 and the billings, cash receipts, and related records to
1076 determine whether that the developer or bulk-unit purchaser was
1077 charged and paid the proper amounts of assessments.
1078 (d) Association funds or control thereof.
1079 (e) All tangible personal property that is property of the
1080 association, which is represented by the developer or bulk-unit
1081 purchaser to be part of the common elements or which is
1082 ostensibly part of the common elements, and an inventory of that
1083 property.
1084 (f) A copy of the plans and specifications used utilized in
1085 the construction or remodeling of improvements and the supplying
1086 of equipment to the condominium and in the construction and
1087 installation of all mechanical components serving the
1088 improvements and the site with a certificate in affidavit form
1089 of the developer, the bulk-unit purchaser, or the developer’s or
1090 bulk-unit purchaser’s agent or an architect or engineer
1091 authorized to practice in this state that such plans and
1092 specifications represent, to the best of his or her knowledge
1093 and belief, the actual plans and specifications used utilized in
1094 the construction and improvement of the condominium property and
1095 for the construction and installation of the mechanical
1096 components serving the improvements. If the condominium property
1097 has been declared a condominium more than 3 years after the
1098 completion of construction or remodeling of the improvements,
1099 the requirements of this paragraph does do not apply.
1100 (g) A list of the names and addresses of all contractors,
1101 subcontractors, and suppliers used utilized in the construction
1102 or remodeling of the improvements and in the landscaping of the
1103 condominium or association property which the developer or bulk
1104 unit purchaser had knowledge of at any time in the development
1105 of the condominium.
1106 (h) Insurance policies.
1107 (i) Copies of any certificates of occupancy that may have
1108 been issued for the condominium property.
1109 (j) Any other permits applicable to the condominium
1110 property which have been issued by governmental bodies and are
1111 in force or were issued within 1 year before prior to the date
1112 the unit owners other than the developer or bulk-unit purchaser
1113 took control of the association.
1114 (k) All written warranties of the contractor,
1115 subcontractors, suppliers, and manufacturers, if any, that are
1116 still effective.
1117 (l) A roster of unit owners and their addresses and
1118 telephone numbers, if known, as shown on the developer’s or
1119 bulk-unit purchaser’s records.
1120 (m) Leases of the common elements and other leases to which
1121 the association is a party.
1122 (n) Employment contracts or service contracts in which the
1123 association is one of the contracting parties or service
1124 contracts in which the association or the unit owners have an
1125 obligation or responsibility, directly or indirectly, to pay
1126 some or all of the fee or charge of the person or persons
1127 performing the service.
1128 (o) All other contracts to which the association is a
1129 party.
1130 (p) A report included in the official records, under seal
1131 of an architect or engineer authorized to practice in this
1132 state, attesting to required maintenance, useful life, and
1133 replacement costs of the following applicable common elements
1134 comprising a turnover inspection report:
1135 1. Roof.
1136 2. Structure.
1137 3. Fireproofing and fire protection systems.
1138 4. Elevators.
1139 5. Heating and cooling systems.
1140 6. Plumbing.
1141 7. Electrical systems.
1142 8. Swimming pool or spa and equipment.
1143 9. Seawalls.
1144 10. Pavement and parking areas.
1145 11. Drainage systems.
1146 12. Painting.
1147 13. Irrigation systems.
1148 (q) A copy of the certificate of a surveyor and mapper
1149 recorded pursuant to s. 718.104(4)(e) or the recorded instrument
1150 that transfers title to a unit in the condominium which is not
1151 accompanied by a recorded assignment of developer or bulk-unit
1152 purchaser rights in favor of the grantee of such unit, whichever
1153 occurred first.
1154 Section 9. Subsections (1) through (4) of section 718.302,
1155 Florida Statutes, are amended to read:
1156 718.302 Agreements entered into by the association.—
1157 (1) A Any grant or reservation made by a declaration,
1158 lease, or other document, and a any contract made by an
1159 association before prior to assumption of control of the
1160 association by unit owners other than the developer, a bulk-unit
1161 purchaser, or a lender-unit purchaser, which that provides for
1162 operation, maintenance, or management of a condominium
1163 association or property serving the unit owners of a condominium
1164 must shall be fair and reasonable, and such grant, reservation,
1165 or contract may be canceled by unit owners other than the
1166 developer or a bulk-unit purchaser. A lender-unit purchaser may
1167 not vote on cancellation of a grant, reservation, or contract
1168 made by the association while the association is under control
1169 of that lender-unit purchaser.:
1170 (a) If the association operates only one condominium and
1171 the unit owners other than the developer, a bulk-unit purchaser,
1172 or a lender-unit purchaser have assumed control of the
1173 association, or if the unit owners other than the developer, a
1174 bulk-unit purchaser, or a lender-unit purchaser own at least not
1175 less than 75 percent of the voting interests in the condominium,
1176 the cancellation shall be by concurrence of the owners of at
1177 least not less than 75 percent of the voting interests other
1178 than the voting interests owned by the developer, a bulk-unit
1179 purchaser, or a lender-unit purchaser. If a grant, reservation,
1180 or contract is so canceled and the unit owners other than the
1181 developer or a bulk-unit purchaser have not assumed control of
1182 the association, the association shall make a new contract or
1183 otherwise provide for maintenance, management, or operation in
1184 lieu of the canceled obligation, at the direction of the owners
1185 of not less than a majority of the voting interests in the
1186 condominium other than the voting interests owned by the
1187 developer, a bulk-unit purchaser, or a lender-unit purchaser.
1188 (b) If the association operates more than one condominium
1189 and the unit owners other than the developer, a bulk-unit
1190 purchaser, or a lender-unit purchaser have not assumed control
1191 of the association, and if the unit owners other than the
1192 developer or a bulk-unit purchaser own at least 75 percent of
1193 the voting interests in a condominium operated by the
1194 association, any grant, reservation, or contract for
1195 maintenance, management, or operation of buildings containing
1196 the units in that condominium or of improvements used only by
1197 the unit owners of that condominium may be canceled by
1198 concurrence of the owners of at least 75 percent of the voting
1199 interests in the condominium other than the voting interests
1200 owned by the developer or a bulk-unit purchaser. A No grant,
1201 reservation, or contract for maintenance, management, or
1202 operation of recreational areas or any other property serving
1203 more than one condominium, and operated by more than one
1204 association, may not be canceled except pursuant to paragraph
1205 (d).
1206 (c) If the association operates more than one condominium
1207 and the unit owners other than the developer, a bulk-unit
1208 purchaser, or a lender-unit purchaser have assumed control of
1209 the association, the cancellation shall be by concurrence of the
1210 owners of at least not less than 75 percent of the total number
1211 of voting interests in all condominiums operated by the
1212 association other than the voting interests owned by the
1213 developer or a bulk-unit purchaser.
1214 (d) If the owners of units in a condominium have the right
1215 to use property in common with owners of units in other
1216 condominiums and those condominiums are operated by more than
1217 one association, a no grant, reservation, or contract for
1218 maintenance, management, or operation of the property serving
1219 more than one condominium may not be canceled until the unit
1220 owners other than the developer, a bulk-unit purchaser, or a
1221 lender-unit purchaser have assumed control of all of the
1222 associations operating the condominiums that are to be served by
1223 the recreational area or other property, after which
1224 cancellation may be effected by concurrence of the owners of at
1225 least not less than 75 percent of the total number of voting
1226 interests in those condominiums other than voting interests
1227 owned by the developer, a bulk-unit purchaser, or a lender-unit
1228 purchaser.
1229 (2) A Any grant or reservation made by a declaration,
1230 lease, or other document, or a any contract made by the
1231 developer or association before prior to the time when unit
1232 owners other than the developer or a bulk-unit purchaser elect a
1233 majority of the board of administration, which grant,
1234 reservation, or contract requires the association to purchase
1235 condominium property or to lease condominium property to another
1236 party, shall be deemed ratified unless rejected by a majority of
1237 the voting interests of the unit owners other than the developer
1238 or a bulk-unit purchaser within 18 months after the unit owners
1239 other than the developer or a bulk-unit purchaser elect a
1240 majority of the board of administration. A lender-unit purchaser
1241 may not vote on cancellation of a grant, reservation, or
1242 contract made by the association while the association is under
1243 control of that lender-unit purchaser. This subsection does not
1244 apply to a any grant or reservation made by a declaration under
1245 which whereby persons other than the developer or the
1246 developer’s or bulk-unit purchaser’s heirs, assigns, affiliates,
1247 directors, officers, or employees are granted the right to use
1248 the condominium property, if so long as such persons are
1249 obligated to pay at least, at a minimum, a proportionate share
1250 of the cost associated with such property.
1251 (3) A Any grant or reservation made by a declaration,
1252 lease, or other document, and a any contract made by an
1253 association, whether before or after assumption of control of
1254 the association by unit owners other than the developer, a bulk
1255 unit purchaser, or a lender-unit purchaser, which that provides
1256 for operation, maintenance, or management of a condominium
1257 association or property serving the unit owners of a condominium
1258 may shall not be in conflict with the powers and duties of the
1259 association or the rights of the unit owners as provided in this
1260 chapter. This subsection is intended only as a clarification of
1261 existing law.
1262 (4) A Any grant or reservation made by a declaration,
1263 lease, or other document, and a any contract made by an
1264 association before prior to assumption of control of the
1265 association by unit owners other than the developer, a bulk-unit
1266 purchaser, or a lender-unit purchaser, must shall be fair and
1267 reasonable.
1268 Section 10. Subsections (3), (4), and (5) of section
1269 718.303, Florida Statutes, are amended, and subsection (7) is
1270 added to that section, to read:
1271 718.303 Obligations of owners and occupants; remedies.—
1272 (3) The association may levy reasonable fines for the
1273 failure of the owner of the unit or its occupant, licensee, or
1274 invitee to comply with any provision of the declaration, the
1275 association bylaws, or reasonable rules of the association. A
1276 fine may not become a lien against a unit. A fine may be levied
1277 by the board or its authorized designee on the basis of each day
1278 of a continuing violation, with a single notice and opportunity
1279 for hearing before an impartial committee as provided in
1280 paragraph (b). However, the fine may not exceed $100 per
1281 violation, or $1,000 in the aggregate.
1282 (a) An association may suspend, for a reasonable period of
1283 time, the right of a unit owner, or a unit owner’s tenant,
1284 guest, or invitee, to use the common elements, common
1285 facilities, or any other association property for failure to
1286 comply with any provision of the declaration, the association
1287 bylaws, or reasonable rules of the association. This paragraph
1288 does not apply to limited common elements intended to be used
1289 only by that unit, common elements needed to access the unit,
1290 utility services provided to the unit, parking spaces, or
1291 elevators.
1292 (b) A fine or suspension levied by the board of
1293 administration or its authorized designee may not be imposed
1294 unless the board association first provides at least 14 days’
1295 written notice and an opportunity for a hearing to the unit
1296 owner and, if applicable, its occupant, licensee, or invitee.
1297 The hearing must be held before an impartial a committee of
1298 other unit owners who are neither board members, nor persons
1299 residing in a board member’s household, the board’s authorized
1300 designee, nor persons residing in the household of the board’s
1301 authorized designee. The role of the impartial committee is
1302 limited to determining whether to confirm or reject the fine or
1303 suspension levied by the board. If the impartial committee does
1304 not agree, the fine or suspension may not be imposed.
1305 (4) If a unit owner is more than 90 days delinquent in
1306 paying a fee, fine, or other monetary obligation due to the
1307 association, the association may suspend the right of the unit
1308 owner or the unit’s occupant, licensee, or invitee to use common
1309 elements, common facilities, or any other association property
1310 until the fee, fine, or other monetary obligation is paid in
1311 full. This subsection does not apply to limited common elements
1312 intended to be used only by that unit, common elements needed to
1313 access the unit, utility services provided to the unit, parking
1314 spaces, or elevators. The notice and hearing requirements under
1315 subsection (3) do not apply to suspensions imposed under this
1316 subsection.
1317 (5) An association may suspend the voting rights of a unit
1318 or member due to nonpayment of any fee, fine, or other monetary
1319 obligation due to the association which is more than 90 days
1320 delinquent. A voting interest or consent right allocated to a
1321 unit or member which has been suspended by the association shall
1322 be subtracted from may not be counted towards the total number
1323 of voting interests in the association, which shall be reduced
1324 by the number of suspended voting interests when calculating the
1325 total percentage or number of all voting interests available to
1326 take or approve any action, and the suspended voting interests
1327 may not be considered for any purpose, including, but not
1328 limited to, the percentage or number of voting interests
1329 necessary to constitute a quorum, the percentage or number of
1330 voting interests required to conduct an election, or the
1331 percentage or number of voting interests required to approve an
1332 action under this chapter or pursuant to the declaration,
1333 articles of incorporation, or bylaws. The suspension ends upon
1334 full payment of all obligations currently due or overdue the
1335 association. The notice and hearing requirements under
1336 subsection (3) do not apply to a suspension imposed under this
1337 subsection.
1338 (7) The suspensions permitted by paragraph (3)(a) and
1339 subsections (4) and (5) apply to a member and, when appropriate,
1340 the member’s tenants, guests, or invitees, even if the
1341 delinquency or failure that resulted in the suspension arose
1342 from less than all of the multiple units owned by the member.
1343 Section 11. Subsection (1) of section 718.501, Florida
1344 Statutes, is amended to read:
1345 718.501 Authority, responsibility, and duties of Division
1346 of Florida Condominiums, Timeshares, and Mobile Homes.—
1347 (1) The division may enforce and ensure compliance with the
1348 provisions of this chapter and rules relating to the
1349 development, construction, sale, lease, ownership, operation,
1350 and management of residential condominium units. In performing
1351 its duties, the division has complete jurisdiction to
1352 investigate complaints and enforce compliance with respect to
1353 associations that are still under the control of the developer,
1354 the control of a bulk-unit purchaser or lender-unit purchaser,
1355 or the control of a bulk assignee or bulk buyer pursuant to part
1356 VII of this chapter and complaints against developers, bulk-unit
1357 purchasers, lender-unit purchasers, bulk assignees, or bulk
1358 buyers involving improper turnover or failure to turnover,
1359 pursuant to s. 718.301. However, after turnover has occurred,
1360 the division has jurisdiction to investigate only complaints
1361 related only to financial issues, elections, and unit owner
1362 access to association records pursuant to s. 718.111(12).
1363 (a)1. The division may make necessary public or private
1364 investigations within or outside this state to determine whether
1365 any person has violated this chapter or any rule or order
1366 hereunder, to aid in the enforcement of this chapter, or to aid
1367 in the adoption of rules or forms.
1368 2. The division may submit any official written report,
1369 worksheet, or other related paper, or a duly certified copy
1370 thereof, compiled, prepared, drafted, or otherwise made by and
1371 duly authenticated by a financial examiner or analyst to be
1372 admitted as competent evidence in any hearing in which the
1373 financial examiner or analyst is available for cross-examination
1374 and attests under oath that such documents were prepared as a
1375 result of an examination or inspection conducted pursuant to
1376 this chapter.
1377 (b) The division may require or permit any person to file a
1378 statement in writing, under oath or otherwise, as the division
1379 determines, as to the facts and circumstances concerning a
1380 matter to be investigated.
1381 (c) For the purpose of any investigation under this
1382 chapter, the division director or any officer or employee
1383 designated by the division director may administer oaths or
1384 affirmations, subpoena witnesses and compel their attendance,
1385 take evidence, and require the production of any matter that
1386 which is relevant to the investigation, including the existence,
1387 description, nature, custody, condition, and location of any
1388 books, documents, or other tangible things and the identity and
1389 location of persons having knowledge of relevant facts or any
1390 other matter reasonably calculated to lead to the discovery of
1391 material evidence. Upon the failure of by a person to obey a
1392 subpoena or to answer questions propounded by the investigating
1393 officer and upon reasonable notice to all affected persons, the
1394 division may apply to the circuit court for an order compelling
1395 compliance.
1396 (d) Notwithstanding any remedies available to unit owners
1397 and associations, if the division has reasonable cause to
1398 believe that a violation of any provision of this chapter or a
1399 related rule has occurred, the division may institute
1400 enforcement proceedings in its own name against any developer,
1401 bulk-unit purchaser, lender-unit purchaser, bulk assignee, bulk
1402 buyer, association, officer, or member of the board of
1403 administration, or his or her its assignees or agents, as
1404 follows:
1405 1. The division may permit a person whose conduct or
1406 actions may be under investigation to waive formal proceedings
1407 and enter into a consent proceeding under which whereby orders,
1408 rules, or letters of censure or warning, whether formal or
1409 informal, may be entered against the person.
1410 2. The division may issue an order requiring the developer,
1411 bulk-unit purchaser, lender-unit purchaser, bulk assignee, bulk
1412 buyer, association, developer-designated officer, or developer
1413 designated member of the board of administration, or his or her
1414 developer-designated assignees or agents, the bulk assignee
1415 designated assignees or agents, bulk buyer-designated assignees
1416 or agents, community association manager, or the community
1417 association management firm to cease and desist from the
1418 unlawful practice and take such affirmative action as in the
1419 judgment of the division to carry out the purposes of this
1420 chapter. If the division finds that a developer, bulk-unit
1421 purchaser, lender-unit purchaser, bulk assignee, bulk buyer,
1422 association, officer, or member of the board of administration,
1423 or his or her its assignees or agents, is violating or is about
1424 to violate any provision of this chapter, any rule adopted or
1425 order issued by the division, or any written agreement entered
1426 into with the division, and the violation presents an immediate
1427 danger to the public requiring an immediate final order, it may
1428 issue an emergency cease and desist order reciting with
1429 particularity the facts underlying such findings. The emergency
1430 cease and desist order is effective for 90 days. If the division
1431 begins nonemergency cease and desist proceedings, the emergency
1432 cease and desist order remains effective until the conclusion of
1433 the proceedings under ss. 120.569 and 120.57.
1434 3. If a developer, bulk-unit purchaser, lender-unit
1435 purchaser, bulk assignee, or bulk buyer, fails to pay any
1436 restitution determined by the division to be owed and, plus any
1437 accrued interest charged at the highest rate permitted by law,
1438 within 30 days after expiration of any appellate time period of
1439 a final order requiring payment of restitution or the conclusion
1440 of any appeal thereof, whichever is later, the division shall
1441 must bring an action in circuit or county court on behalf of any
1442 association, class of unit owners, lessees, or purchasers for
1443 restitution, declaratory relief, injunctive relief, or any other
1444 available remedy. The division may also temporarily revoke its
1445 acceptance of the filing for the developer, bulk-unit purchaser,
1446 or lender-unit purchaser, to which the restitution relates until
1447 payment of restitution is made.
1448 4. The division may petition the court for appointment of a
1449 receiver or conservator who,. if appointed, the receiver or
1450 conservator may take action to implement the court order to
1451 ensure the performance of the order and to remedy any breach
1452 thereof. In addition to all other means provided by law for the
1453 enforcement of an injunction or temporary restraining order, the
1454 circuit court may impound or sequester the property of a party
1455 defendant, including books, papers, documents, and related
1456 records, and allow the examination and use of the property by
1457 the division and a court-appointed receiver or conservator.
1458 5. The division may apply to the circuit court for an order
1459 of restitution under which whereby the defendant in an action
1460 brought pursuant to subparagraph 4. is ordered to make
1461 restitution of those sums shown by the division to have been
1462 obtained by the defendant in violation of this chapter. At the
1463 option of the court, such restitution is payable to the
1464 conservator or receiver appointed pursuant to subparagraph 4. or
1465 directly to the persons whose funds or assets were obtained in
1466 violation of this chapter.
1467 6. The division may impose a civil penalty against a
1468 developer, bulk-unit purchaser, lender-unit purchaser, bulk
1469 assignee, or bulk buyer, or association, or its assignee or
1470 agent, for a any violation of this chapter or a related rule.
1471 The division may impose a civil penalty individually against an
1472 officer or board member who willfully and knowingly violates a
1473 provision of this chapter, an adopted rule, or a final order of
1474 the division; may order the removal of such individual as an
1475 officer or from the board of administration or as an officer of
1476 the association; and may prohibit such individual from serving
1477 as an officer or on the board of a community association for a
1478 period of time. The term “willfully and knowingly” means that
1479 the division informed the officer or board member that his or
1480 her action or intended action violates this chapter, a rule
1481 adopted under this chapter, or a final order of the division and
1482 that the officer or board member refused to comply with the
1483 requirements of this chapter, a rule adopted under this chapter,
1484 or a final order of the division. The division, Before
1485 initiating formal agency action under chapter 120, the division
1486 must afford the officer or board member an opportunity to
1487 voluntarily comply, and an officer or board member who complies
1488 within 10 days is not subject to a civil penalty. A penalty may
1489 be imposed on the basis of each day of continuing violation, but
1490 the penalty for any offense may not exceed $5,000. By January 1,
1491 1998, The division shall adopt, by rule, penalty guidelines
1492 applicable to possible violations or to categories of violations
1493 of this chapter or rules adopted by the division. The guidelines
1494 must specify a meaningful range of civil penalties for each such
1495 violation of the statute and rules and must be based upon the
1496 harm caused by the violation, the repetition of the violation,
1497 and upon such other factors deemed relevant by the division. For
1498 example, The division may consider whether the violations were
1499 committed by a developer, bulk-unit purchaser, lender-unit
1500 purchaser, bulk assignee, or bulk buyer, or owner-controlled
1501 association, the size of the association, and other factors. The
1502 guidelines must designate the possible mitigating or aggravating
1503 circumstances that justify a departure from the range of
1504 penalties provided by the rules. It is the legislative intent
1505 that minor violations be distinguished from those that which
1506 endanger the health, safety, or welfare of the condominium
1507 residents or other persons and that such guidelines provide
1508 reasonable and meaningful notice to the public of likely
1509 penalties that may be imposed for proscribed conduct. This
1510 subsection does not limit the ability of the division to
1511 informally dispose of administrative actions or complaints by
1512 stipulation, agreed settlement, or consent order. All amounts
1513 collected shall be deposited with the Chief Financial Officer to
1514 the credit of the Division of Florida Condominiums, Timeshares,
1515 and Mobile Homes Trust Fund. If a developer, bulk-unit
1516 purchaser, lender-unit purchaser, bulk assignee, or bulk buyer
1517 fails to pay the civil penalty and the amount deemed to be owed
1518 to the association, the division shall issue an order directing
1519 that such developer, bulk-unit purchaser, lender-unit purchaser,
1520 bulk assignee, or bulk buyer cease and desist from further
1521 operation until such time as the civil penalty is paid or may
1522 pursue enforcement of the penalty in a court of competent
1523 jurisdiction. If an association fails to pay the civil penalty,
1524 the division shall pursue enforcement in a court of competent
1525 jurisdiction, and the order imposing the civil penalty or the
1526 cease and desist order is not effective until 20 days after the
1527 date of such order. Any action commenced by the division shall
1528 be brought in the county in which the division has its executive
1529 offices or in the county where the violation occurred.
1530 7. If a unit owner presents the division with proof that
1531 the unit owner has requested access to official records in
1532 writing by certified mail, and that after 10 days the unit owner
1533 again made the same request for access to official records in
1534 writing by certified mail, and that more than 10 days has
1535 elapsed since the second request and the association has still
1536 failed or refused to provide access to official records as
1537 required by this chapter, the division shall issue a subpoena
1538 requiring production of the requested records where the records
1539 are kept pursuant to s. 718.112.
1540 8. In addition to subparagraph 6., the division may seek
1541 the imposition of a civil penalty through the circuit court for
1542 any violation for which the division may issue a notice to show
1543 cause under paragraph (r). The civil penalty shall be at least
1544 $500 but no more than $5,000 for each violation. The court may
1545 also award to the prevailing party court costs and reasonable
1546 attorney attorney’s fees and, if the division prevails, may also
1547 award reasonable costs of investigation.
1548 (e) The division may prepare and disseminate a prospectus
1549 and other information to assist prospective owners, purchasers,
1550 lessees, and developers of residential condominiums in assessing
1551 the rights, privileges, and duties pertaining thereto.
1552 (f) The division may adopt rules to administer and enforce
1553 the provisions of this chapter.
1554 (g) The division shall establish procedures for providing
1555 notice to an association and the developer, bulk-unit purchaser,
1556 lender-unit purchaser, bulk assignee, or bulk buyer during the
1557 period in which the developer, bulk-unit purchaser, lender-unit
1558 purchaser, bulk assignee, or bulk buyer controls the association
1559 if the division is considering the issuance of a declaratory
1560 statement with respect to the declaration of condominium or any
1561 related document governing such condominium community.
1562 (h) The division shall furnish each association that pays
1563 the fees required by paragraph (2)(a) a copy of this chapter, as
1564 amended, and the rules adopted thereto on an annual basis.
1565 (i) The division shall annually provide each association
1566 with a summary of declaratory statements and formal legal
1567 opinions relating to the operations of condominiums which were
1568 rendered by the division during the previous year.
1569 (j) The division shall provide training and educational
1570 programs for condominium association board members and unit
1571 owners. The training may, at in the division’s discretion,
1572 include web-based electronic media, and live training and
1573 seminars in various locations throughout the state. The division
1574 may review and approve education and training programs for board
1575 members and unit owners offered by providers, and shall maintain
1576 a current list of approved programs and providers, and shall
1577 make such list available to board members and unit owners in a
1578 reasonable and cost-effective manner.
1579 (k) The division shall maintain a toll-free telephone
1580 number accessible to condominium unit owners.
1581 (l) The division shall develop a program to certify both
1582 volunteer and paid mediators to provide mediation of condominium
1583 disputes. Upon request, the division shall provide, upon
1584 request, a list of such mediators to any association, unit
1585 owner, or other participant in arbitration proceedings under s.
1586 718.1255 requesting a copy of the list. The division shall
1587 include on the list of volunteer mediators only the names of
1588 individuals persons who have received at least 20 hours of
1589 training in mediation techniques or who have mediated at least
1590 20 disputes. In order to become initially certified by the
1591 division, paid mediators must be certified by the Supreme Court
1592 to mediate court cases in county or circuit courts. However, the
1593 division may adopt, by rule, additional factors for the
1594 certification of paid mediators, which must be related to
1595 experience, education, or background. In order to continue to be
1596 certified, an individual Any person initially certified as a
1597 paid mediator by the division must, in order to continue to be
1598 certified, comply with the factors or requirements adopted by
1599 rule.
1600 (m) If a complaint is made, the division shall must conduct
1601 its inquiry with due regard for the interests of the affected
1602 parties. Within 30 days after receipt of a complaint, the
1603 division shall acknowledge the complaint in writing and notify
1604 the complainant as to whether the complaint is within the
1605 jurisdiction of the division and whether additional information
1606 is needed by the division from the complainant. The division
1607 shall conduct its investigation and, within 90 days after
1608 receipt of the original complaint or of timely requested
1609 additional information, take action upon the complaint. However,
1610 the failure to complete the investigation within 90 days does
1611 not prevent the division from continuing the investigation,
1612 accepting or considering evidence obtained or received after 90
1613 days, or taking administrative action if reasonable cause exists
1614 to believe that a violation of this chapter or a rule has
1615 occurred. If an investigation is not completed within the time
1616 limits established in this paragraph, the division shall, on a
1617 monthly basis, notify the complainant in writing of the status
1618 of the investigation. When reporting its action to the
1619 complainant, the division shall inform the complainant of any
1620 right to a hearing pursuant to ss. 120.569 and 120.57.
1621 (n) Condominium association directors, officers, and
1622 employees; condominium developers; bulk-unit purchasers, lender
1623 unit purchasers, bulk assignees, bulk buyers, and community
1624 association managers; and community association management firms
1625 have an ongoing duty to reasonably cooperate with the division
1626 in any investigation pursuant to this section. The division
1627 shall refer to local law enforcement authorities any person who
1628 whom the division believes has altered, destroyed, concealed, or
1629 removed any record, document, or thing required to be kept or
1630 maintained by this chapter with the purpose to impair its verity
1631 or availability in the department’s investigation.
1632 (o) The division may:
1633 1. Contract with agencies in this state or other
1634 jurisdictions to perform investigative functions; or
1635 2. Accept grants-in-aid from any source.
1636 (p) The division shall cooperate with similar agencies in
1637 other jurisdictions to establish uniform filing procedures and
1638 forms, public offering statements, advertising standards, and
1639 rules and common administrative practices.
1640 (q) The division shall consider notice to a developer,
1641 bulk-unit purchaser, lender-unit purchaser, bulk assignee, or
1642 bulk buyer to be complete when it is delivered to the address of
1643 the developer, bulk-unit purchaser, lender-unit purchaser, bulk
1644 assignee, or bulk buyer currently on file with the division.
1645 (r) In addition to its enforcement authority, the division
1646 may issue a notice to show cause, which must provide for a
1647 hearing, upon written request, in accordance with chapter 120.
1648 (s) The division shall submit to the Governor, the
1649 President of the Senate, the Speaker of the House of
1650 Representatives, and the chairs of the legislative
1651 appropriations committees an annual report that includes, but
1652 need not be limited to, the number of training programs provided
1653 for condominium association board members and unit owners;, the
1654 number of complaints received, by type;, the number and percent
1655 of complaints acknowledged in writing within 30 days and the
1656 number and percent of investigations acted upon within 90 days
1657 in accordance with paragraph (m);, and the number of
1658 investigations exceeding the 90-day requirement. The annual
1659 report must also include an evaluation of the division’s core
1660 business processes and make recommendations for improvements,
1661 including statutory changes. The report shall be submitted by
1662 September 30 following the end of the fiscal year.
1663 Section 12. Section 718.709, Florida Statutes, is created
1664 to read:
1665 718.709 Applicability.—Sections 718.701-718.708, relating
1666 to the Distressed Condominium Relief Act, apply to title to
1667 units acquired on or after July 1, 2010, but before July 1,
1668 2016.
1669 Section 13. Part VIII of chapter 718, Florida Statutes,
1670 consisting of sections 718.801-718.813, is created to read:
1671 PART VIII
1672 BULK-UNIT PURCHASERS AND LENDER-UNIT PURCHASERS
1673 718.801 Legislative intent.—The Legislature declares that
1674 it is the public policy of this state to protect the interests
1675 of developers, lenders, unit owners, and condominium
1676 associations with regard to bulk-unit purchasers or lender-unit
1677 purchasers of condominium units and that there is a need to
1678 balance such interests by limiting the applicability of the
1679 Distressed Condominium Relief Act. Notwithstanding the
1680 limitation, the Distressed Condominium Relief Act applies to
1681 title acquired on or after July 1, 2010, but before July 1,
1682 2016.
1683 718.802 Definitions.—As used in this part, the term:
1684 (1) “Bulk assignee” means a person who is not a bulk buyer
1685 and who:
1686 (a) Acquires more than seven condominium parcels in a
1687 single condominium;
1688 (b) Receives an assignment of any of the developer rights,
1689 other than or in addition to those rights described in
1690 subsection (3), as set forth in the declaration of condominium
1691 or this chapter:
1692 1. By a written instrument recorded as part of or as an
1693 exhibit of the deed;
1694 2. By a separate instrument recorded in the public records
1695 of the county in which the condominium is located; or
1696 3. Pursuant to a final judgment or certificate of title
1697 issued in favor of a purchaser at a foreclosure sale; and
1698 (c) Acquired condominium parcels on or after July 1, 2010,
1699 but before July 1, 2016. The date of such acquisition shall be
1700 determined by the date of recording a deed or other instrument
1701 of conveyance for such parcels in the public records of the
1702 county in which the condominium is located, or by the date of
1703 issuing a certificate of title in a foreclosure proceeding with
1704 respect to such condominium parcels.
1705
1706 A mortgagee or its assignee may not be deemed a bulk assignee or
1707 developer by reason of the acquisition of condominium units and
1708 receipt of an assignment of some or all of a developer’s rights
1709 unless the mortgage or its assignee exercises any of the
1710 developer rights other than those described in subsection (3).
1711 (2)“Bulk-unit purchaser” means a person who acquires title
1712 to the greater of at least eight units or 20 percent of the
1713 units that ultimately will be operated by the same association,
1714 as provided in the declaration, articles of incorporation, or
1715 bylaws as originally recorded. Multiple bulk-unit purchasers may
1716 be members of an association simultaneously or successively.
1717 There may be one or more bulk-unit purchasers while the
1718 developer still owns units operated by the association. A person
1719 who acquires title to units or timeshare interests in a
1720 condominium, which units or timeshare interests are or
1721 ultimately will be included in a timeshare plan governed by
1722 chapter 721, may elect to be a bulk-unit purchaser pursuant to
1723 s. 718.813. The term does not include a lender-unit purchaser.
1724 Further, the term does not include an acquirer of units if any
1725 transfer of title to the acquirer is made:
1726 (a) With intent to defraud or materially harm a purchaser,
1727 a unit owner, or the association;
1728 (b) Where the acquirer is a person or limited liability
1729 company that would be an insider, as defined in s. 726.102, of
1730 the bulk-unit purchaser or of the developer; or
1731 (c) As a fraudulent transfer under chapter 726.
1732 (3) “Bulk buyer” means a person who acquired condominium
1733 parcels on or after July 1, 2010, but before July 1, 2016, and
1734 the date of acquisition shall be determined in the same manner
1735 as in subsection (1). Further, the term means a person who
1736 acquires more than seven condominium parcels in a single
1737 condominium but who does not receive an assignment of any
1738 developer rights or receives only some or all of the following
1739 rights:
1740 (a) The right to conduct sales, leasing, and marketing
1741 activities within the condominium.
1742 (b) The right to be exempt from the payment of working
1743 capital contributions to the condominium association arising out
1744 of, or in connection with, the bulk buyer’s acquisition of the
1745 units.
1746 (c) The right to be exempt from any rights of first refusal
1747 which may be held by the condominium association and would
1748 otherwise be applicable to subsequent transfers of title from
1749 the bulk buyer to a third-party purchaser concerning one or more
1750 units.
1751 (4) “Lender-unit purchaser” means a person, or the person’s
1752 successors, assigns, or wholly owned subsidiaries, who holds a
1753 mortgage from a developer or from a bulk-unit purchaser on the
1754 greater of at least eight units or 20 percent of the units that,
1755 as provided in the declaration, articles of incorporation, or
1756 bylaws as originally recorded, ultimately will be operated by
1757 the same association; who subsequently obtains title to such
1758 units through foreclosure or deed in lieu of foreclosure; and
1759 who makes the election to become a lender-unit purchaser
1760 pursuant to 718.808(4). However, a mortgagee or its wholly owned
1761 subsidiary that acquires and sells units to one or more bulk
1762 unit purchasers is not a developer or a lender-unit purchaser
1763 with respect to the sale.
1764 718.803 Exercise of rights.—
1765 (1) A bulk-unit purchaser may exercise only the following
1766 developer rights, provided such rights are contained in the
1767 declaration:
1768 (a) The right to conduct sales, leasing, and marketing
1769 activities within the condominium, including the use of the
1770 sales and leasing office.
1771 (b) The right to assign limited common elements and use
1772 rights to common elements and association property which were
1773 not assigned before the bulk-unit purchaser acquired title to
1774 the units. Such rights may include, without limitation, the
1775 rights to garages, parking spaces, storage areas, and cabanas.
1776 If there is more than one bulk-unit purchaser, this right must
1777 be established in a written assignment from the developer which
1778 specifies the bulk-unit purchaser who has such a right as to
1779 specified limited common elements, common elements, and
1780 association property.
1781 (c) For a phase condominium, the right to add phases.
1782 (2) If the initial purchaser of a unit from the developer
1783 is required to make a working capital contribution to the
1784 association, a bulk-unit purchaser shall pay a working capital
1785 contribution to the association, which must be calculated in the
1786 same manner for each unit acquired, upon the earlier of:
1787 (a) Sale of a unit by the bulk-unit purchaser to a third
1788 party other than the bulk-unit purchaser; or
1789 (b) Five years from the date of acquisition of title to a
1790 unit by the bulk-unit purchaser.
1791 (3) If a bulk-unit purchaser exercises developer rights
1792 other than those specified in subsection (1), he or she is no
1793 longer deemed to be a bulk-unit purchaser, and this part does
1794 not apply to such person.
1795 (4) Except as set forth in this part, a lender-unit
1796 purchaser may exercise any developer rights that the lender-unit
1797 purchaser acquires.
1798 718.804 Compliance.—A bulk-unit purchaser and a lender-unit
1799 purchaser shall comply with all applicable requirements of s.
1800 718.202 and part V of this chapter in connection with any units
1801 that they own or sell.
1802 718.805 Voting rights.—
1803 (1) For the first 2 fiscal years following the first
1804 conveyance of a unit to a bulk-unit purchaser or lender-unit
1805 purchaser, the bulk-unit purchaser or lender-unit purchaser may
1806 vote the voting interests allocated to his or her units to waive
1807 reserves or reduce the funding of reserves. After these 2 fiscal
1808 years, the bulk-unit purchaser or lender-unit purchaser may not
1809 vote his or her voting interests to waive reserves or reduce the
1810 funding of reserves until the bulk-unit purchaser or lender-unit
1811 purchaser holds less than a majority of the voting interests in
1812 the association.
1813 (2) A bulk-unit purchaser or lender-unit purchaser may not
1814 transfer his or her right to vote to waive reserves or reduce
1815 the funding of reserves to other bulk-unit purchasers or lender
1816 unit purchasers to extend the time period in subsection (1).
1817 718.806 Assessment liability; election of directors.—
1818 (1) BULK-UNIT PURCHASER ASSESSMENT LIABILITY.—A bulk-unit
1819 purchaser is liable for all assessments on his or her units
1820 which become due while the bulk-unit purchaser holds title to
1821 such units. Additionally, the bulk-unit purchaser is jointly and
1822 severally liable with the previous owner for all unpaid regular
1823 periodic assessments and special assessments that became due
1824 before the acquisition of title, for all other monetary
1825 obligations accrued which are secured by the association’s lien,
1826 and for all costs advanced by the association for the
1827 maintenance and repair of the units acquired by the bulk-unit
1828 purchaser.
1829 (2) LENDER-UNIT PURCHASER ASSESSMENT LIABILITY.—The
1830 liability of a lender-unit purchaser or his or her successors or
1831 assignees for the units that the lender-unit purchaser owns is
1832 limited to the lesser of:
1833 (a) The units’ unpaid common expenses and the regular
1834 periodic assessments that accrued or became due during the 12
1835 months immediately preceding the lender-unit purchaser’s
1836 acquisition of title and for which payment in full has not been
1837 received by the association; or
1838 (b) One percent of the original mortgage debt.
1839
1840 The lender-unit purchaser acquiring title must comply with s.
1841 718.116(1)(c).
1842 (3) DIRECTOR ELECTED BY BULK-UNIT PURCHASER.—A director who
1843 has been elected or appointed by a bulk-unit purchaser is
1844 automatically suspended from board service for 30 days following
1845 the failure of the bulk-unit purchaser to timely pay monetary
1846 obligations on a unit the bulk-unit purchaser owns. The
1847 remaining directors may temporarily fill the vacancy created by
1848 the suspension. Once the bulk-unit purchaser has cured all
1849 outstanding delinquencies on the unit, the suspended director
1850 shall replace the temporary appointee and resume service on the
1851 board for the unexpired term.
1852 718.807 Amendments and material alterations.—
1853 (1) The following amendments or alterations may not go into
1854 effect unless approved by a majority vote of unit owners other
1855 than the developer, a bulk-unit purchaser, or a lender-unit
1856 purchaser:
1857 (a) An amendment described in s. 718.110(4) or (8).
1858 (b) An amendment creating, changing, or terminating leasing
1859 restrictions.
1860 (c) An amendment of the declaration pertaining to the
1861 condominium’s status as housing for older persons.
1862 (d) An amendment pursuant to s. 718.110(14) or an amendment
1863 that otherwise reclassifies a portion of the common elements as
1864 a limited common element or that authorizes the association to
1865 change the limited common elements assigned to any unit.
1866 (e) Material alterations or substantial additions to the
1867 common elements or association property any time one of the
1868 following owns a percentage of voting interests equal to or
1869 greater than the percentage required to approve the amendment:
1870 1. A bulk-unit purchaser;
1871 2. A lender-unit purchaser;
1872 3. The developer and a bulk-unit purchaser;
1873 4. The developer and a lender-unit purchaser; or
1874 5. A bulk-unit purchaser and a lender-unit purchaser.
1875 (2) Notwithstanding subsection (1), consent of the
1876 developer, a bulk-unit purchaser, or a lender-unit purchaser is
1877 required for an amendment that would otherwise require the
1878 approval of such voting interests based upon the requirements of
1879 the declaration, articles of incorporation, or bylaws or s.
1880 718.110 or s. 718.113.
1881 718.808 Warranties and disclosures.—
1882 (1) As the seller, a bulk-unit purchaser or lender-unit
1883 purchaser is deemed to have granted an implied warranty of
1884 fitness and merchantability to a purchaser of each unit sold for
1885 a period of 3 years, which begins on the date of the completion
1886 of repairs or improvements that the bulk-unit purchaser or
1887 lender-unit purchaser makes to the unit, common elements, or
1888 limited common elements. The bulk-unit purchaser or lender-unit
1889 purchaser is not deemed to have granted a warranty on
1890 improvements, repairs, or alterations to the condominium which
1891 he or she did not undertake.
1892 (2) The statute of limitations in s. 718.203 is tolled
1893 while the bulk-unit purchaser begins the process of appointing
1894 or electing a majority of the board of administration.
1895 (3) As the seller, the bulk-unit purchaser shall include
1896 the following disclosure to purchasers in conspicuous type on
1897 the first page of the sales contract:
1898
1899 SELLER IS A BULK-UNIT PURCHASER UNDER THE CONDOMINIUM ACT.
1900 SELLER IS NOT THE DEVELOPER OF THE CONDOMINIUM FOR ANY PURPOSE
1901 UNDER THE CONDOMINIUM ACT.
1902
1903 (4) A mortgagee who acquires units may elect to become a
1904 lender-unit purchaser by providing written notice of the
1905 election to the association addressed to the registered agent at
1906 the address specified in the records of the Department of State.
1907 The notice shall be delivered within the time period ending upon
1908 the earliest of:
1909 (a) The date on which the mortgagee exercises any developer
1910 rights other than the developer rights described in s.
1911 718.803(1)(a);
1912 (b) Before the sale of a unit by the mortgagee; or
1913 (c) One hundred eighty days after the recording of the
1914 certificate of title or of the deed in lieu of foreclosure if
1915 the mortgagee acquired the units by foreclosure or by deed in
1916 lieu of foreclosure.
1917 (5) As the seller, the lender-unit purchaser shall include
1918 the following disclosure to purchasers in conspicuous type on
1919 the first page of the sales contract:
1920
1921 SELLER IS A LENDER-UNIT PURCHASER UNDER THE CONDOMINIUM ACT.
1922 SELLER IS NOT THE DEVELOPER OF THE CONDOMINIUM FOR ANY PURPOSE
1923 UNDER THE CONDOMINIUM ACT. SELLER TOOK TITLE TO THE UNIT(S)
1924 BEING SOLD TO PURCHASER BY FORECLOSURE OR DEED IN LIEU OF
1925 FORECLOSURE.
1926
1927 (6)(a) At or before the signing of a contract to sell a
1928 unit, the bulk-unit purchaser and the lender-unit purchaser must
1929 provide a condition report that complies with s. 718.616(2) and
1930 (3) and this section to the prospective purchaser and must
1931 obtain verification of delivery of such condition report. A
1932 condition report is not required in connection with a sale to a
1933 bulk-unit purchaser or in connection with a deed in lieu of
1934 foreclosure to a lender-unit purchaser. A mortgagee is not
1935 required to deliver to a bulk-unit purchaser a condition report
1936 even if the mortgagee acquires and transfers developer rights to
1937 such bulk-unit purchaser.
1938 (b) The condition report must include a reasonably detailed
1939 description of the repairs or replacements necessary to cure
1940 defective construction identified in the condition report.
1941 (c) If, during the course of preparing the condition
1942 report, the architect or engineer becomes aware of a component
1943 that violates an applicable building code or federal or state
1944 law or that deviates from the building plans approved by the
1945 permitting authority, the architect or engineer shall disclose
1946 such information in the condition report. The architect or
1947 engineer shall make written inquiry to the applicable local
1948 government authority of any building code violations and shall
1949 include in the condition report any of the authority’s responses
1950 or its failure to respond.
1951 (d) The condition report shall be prepared before the bulk
1952 unit purchaser or the lender-unit purchaser enters into his or
1953 her first sales contract, but the condition report may not be
1954 prepared more than 6 months before the first sales contract is
1955 agreed upon. If the bulk-unit purchaser or lender-unit purchaser
1956 remains engaged in selling units, the condition report shall be
1957 updated no later than 1 year after the closing of the first
1958 sales contract and each year thereafter.
1959 (e) If a bulk-unit purchaser or lender-unit purchaser fails
1960 to provide the condition report in accordance with this section,
1961 the bulk-unit purchaser or lender-unit purchaser is deemed to
1962 grant implied warranties of fitness and merchantability which
1963 are not limited to the construction, improvements, or repairs
1964 that he or she undertakes to the units, common elements, or
1965 limited common elements.
1966 718.809 Joint and several liability.—For purposes of this
1967 chapter, if there are multiple bulk-unit purchasers within the
1968 same association, the units owned by the multiple bulk-unit
1969 purchasers and the rights of the bulk-unit purchasers shall be
1970 aggregated as if there were only one bulk-unit purchaser. Each
1971 bulk-unit purchaser is jointly and severally liable with his or
1972 her predecessor bulk-unit purchasers for compliance with this
1973 chapter.
1974 718.810 Construction disputes.—A board of administration
1975 composed of a majority of directors elected or appointed by a
1976 bulk-unit purchaser may not resolve a construction dispute that
1977 is subject to chapter 558 unless such resolution is approved by
1978 a majority of the voting interests of the unit owners other than
1979 the developer and a bulk-unit purchaser.
1980 718.811 Noncompliance.—A bulk-unit purchaser or a lender
1981 unit purchaser who fails to substantially comply with the
1982 requirements of this chapter pertaining to the obligations and
1983 rights of bulk-unit purchasers and lender-unit purchasers
1984 forfeits all protections or exemptions provided under the
1985 Condominium Act.
1986 718.812 Documents to be delivered upon turnover.—If a bulk
1987 unit purchaser elects a majority of the board of administration
1988 and the unit owners other than the bulk-unit purchaser elect a
1989 majority, the bulk-unit purchaser must deliver all of the items
1990 specified in s. 718.301(4) to the association. However, the
1991 bulk-unit purchaser is not required to deliver items that were
1992 never in the possession of the bulk-unit purchaser. In
1993 conjunction with the acquisition of units, the bulk-unit
1994 purchaser shall undertake a good faith effort to obtain the
1995 items specified in s. 718.301(4) which must be delivered to the
1996 association. If the bulk-unit purchaser cannot obtain such
1997 items, the bulk-unit purchaser must deliver a certificate in
1998 writing to the association which names or describes items that
1999 were not obtainable by the bulk-unit purchaser and which
2000 describes the good faith efforts that were undertaken to obtain
2001 the items. Delivery of the certificate relieves the bulk-unit
2002 purchaser of his or her responsibility under s. 718.301 to
2003 deliver the documents and materials referenced in the
2004 certificate. The responsibility of the bulk-unit purchaser to
2005 conduct the audit required by s. 718.301(4)(c) begins on the
2006 date the bulk-unit purchaser elects or appoints a majority of
2007 the members of the board of administration and ends on the date
2008 the bulk-unit purchaser no longer controls the board.
2009 718.813 Timeshare Condominiums.—With respect to the
2010 acquisition of title to units or timeshare interests in a
2011 condominium, which units or timeshare interests are or
2012 ultimately will be included in a timeshare plan governed by
2013 chapter 721:
2014 (1) Any person otherwise qualified to be a bulk-unit
2015 purchaser pursuant to s. 718.802 is not a bulk-unit purchaser
2016 unless that person makes an election to become a bulk-unit
2017 purchaser by providing notice to the association addressed to
2018 the registered agent at the address specified in the records of
2019 the Department of State. The notice shall be delivered within
2020 the time period ending upon the earliest of:
2021 (a) The date on which the person exercises any developer
2022 rights other than the developer rights described in s.
2023 718.803(1)(a);
2024 (b) The sale of any unit or timeshare interest by the
2025 person; or
2026 (c) One hundred eighty days after the recording of the deed
2027 or other instrument of conveyance by which the person acquired
2028 the units or timeshare interests.
2029 (2) If a person has made an election to be a bulk-unit
2030 purchaser pursuant to subsection (1), the bulk-unit purchaser,
2031 when selling units or timeshare interests, shall include the
2032 following disclosure to purchasers in conspicuous type on the
2033 first page of the contract for sale of units or timeshare
2034 interests:
2035
2036 SELLER IS A BULK-UNIT PURCHASER UNDER THE CONDOMINIUM ACT.
2037 SELLER IS NOT THE DEVELOPER OF THE CONDOMINIUM FOR ANY PURPOSE
2038 UNDER THE CONDOMINIUM.
2039
2040 Section 14. Paragraph (a) of subsection (2) of section
2041 719.104, Florida Statutes, is amended to read:
2042 719.104 Cooperatives; access to units; records; financial
2043 reports; assessments; purchase of leases.—
2044 (2) OFFICIAL RECORDS.—
2045 (a) From the inception of the association, the association
2046 shall maintain a copy of each of the following, where
2047 applicable, which shall constitute the official records of the
2048 association:
2049 1. The plans, permits, warranties, and other items provided
2050 by the developer pursuant to s. 719.301(4).
2051 2. A photocopy of the cooperative documents.
2052 3. A copy of the current rules of the association.
2053 4. A book or books containing the minutes of all meetings
2054 of the association, of the board of directors, and of the unit
2055 owners, which minutes shall be retained for a period of not less
2056 than 7 years.
2057 5. A current roster of all unit owners and their mailing
2058 addresses, unit identifications, voting certifications, and, if
2059 known, telephone numbers. The association shall also maintain
2060 the electronic mailing addresses and the numbers designated by
2061 unit owners for receiving notice sent by electronic transmission
2062 of those unit owners consenting to receive notice by electronic
2063 transmission. The electronic mailing addresses and numbers
2064 provided by unit owners to receive notice by electronic
2065 transmission shall be removed from association records when
2066 consent to receive notice by electronic transmission is revoked.
2067 However, the association is not liable for an erroneous
2068 disclosure of the electronic mail address or the number for
2069 receiving electronic transmission of notices.
2070 6. All current insurance policies of the association.
2071 7. A current copy of any management agreement, lease, or
2072 other contract to which the association is a party or under
2073 which the association or the unit owners have an obligation or
2074 responsibility.
2075 8. Bills of sale or transfer for all property owned by the
2076 association.
2077 9. Accounting records for the association and separate
2078 accounting records for each unit it operates, according to good
2079 accounting practices. All accounting records shall be maintained
2080 for a period of not less than 7 years. The accounting records
2081 shall include, but not be limited to:
2082 a. Accurate, itemized, and detailed records of all receipts
2083 and expenditures.
2084 b. A current account and a monthly, bimonthly, or quarterly
2085 statement of the account for each unit designating the name of
2086 the unit owner, the due date and amount of each assessment, the
2087 amount paid upon the account, and the balance due.
2088 c. All audits, reviews, accounting statements, and
2089 financial reports of the association.
2090 d. All contracts for work to be performed. Bids for work to
2091 be performed shall also be considered official records and shall
2092 be maintained for a period of 1 year.
2093 10. Ballots, sign-in sheets, voting proxies, and all other
2094 papers relating to voting by unit owners, which shall be
2095 maintained for a period of 1 year after the date of the
2096 election, vote, or meeting to which the document relates.
2097 11. All rental records where the association is acting as
2098 agent for the rental of units.
2099 12. A copy of the current question and answer sheet as
2100 described in s. 719.504.
2101 13. All other written records of the association not
2102 specifically included in the foregoing which are related to the
2103 operation of the association.
2104 Section 15. Paragraphs (c) and (d) of subsection (1) of
2105 section 719.106, Florida Statutes, are amended to read:
2106 719.106 Bylaws; cooperative ownership.—
2107 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
2108 documents shall provide for the following, and if they do not,
2109 they shall be deemed to include the following:
2110 (c) Board of administration meetings.—Meetings of the board
2111 of administration at which a quorum of the members is present
2112 shall be open to all unit owners. Any unit owner may tape record
2113 or videotape meetings of the board of administration; however, a
2114 unit owner may not post the recordings on any website or other
2115 media that can readily be viewed by persons who are not members
2116 of the association. The right to attend such meetings includes
2117 the right to speak at such meetings with reference to all
2118 designated agenda items. The division shall adopt reasonable
2119 rules governing the tape recording and videotaping of the
2120 meeting. The association may adopt reasonable written rules
2121 governing the frequency, duration, and manner of unit owner
2122 statements. Adequate notice of all meetings shall be posted in a
2123 conspicuous place upon the cooperative property at least 48
2124 continuous hours preceding the meeting, except in an emergency.
2125 Any item not included on the notice may be taken up on an
2126 emergency basis by at least a majority plus one of the members
2127 of the board. Such emergency action shall be noticed and
2128 ratified at the next regular meeting of the board. However,
2129 written notice of any meeting at which nonemergency special
2130 assessments, or at which amendment to rules regarding unit use,
2131 will be considered shall be mailed, delivered, or electronically
2132 transmitted to the unit owners and posted conspicuously on the
2133 cooperative property not less than 14 days before the meeting.
2134 Evidence of compliance with this 14-day notice shall be made by
2135 an affidavit executed by the person providing the notice and
2136 filed among the official records of the association. Upon notice
2137 to the unit owners, the board shall by duly adopted rule
2138 designate a specific location on the cooperative property upon
2139 which all notices of board meetings shall be posted. In lieu of
2140 or in addition to the physical posting of notice of any meeting
2141 of the board of administration on the cooperative property, the
2142 association may, by reasonable rule, adopt a procedure for
2143 conspicuously posting and repeatedly broadcasting the notice and
2144 the agenda on a closed-circuit cable television system serving
2145 the cooperative association. However, if broadcast notice is
2146 used in lieu of a notice posted physically on the cooperative
2147 property, the notice and agenda must be broadcast at least four
2148 times every broadcast hour of each day that a posted notice is
2149 otherwise required under this section. When broadcast notice is
2150 provided, the notice and agenda must be broadcast in a manner
2151 and for a sufficient continuous length of time so as to allow an
2152 average reader to observe the notice and read and comprehend the
2153 entire content of the notice and the agenda. Notice of any
2154 meeting in which regular assessments against unit owners are to
2155 be considered for any reason shall specifically contain a
2156 statement that assessments will be considered and the nature of
2157 any such assessments. Meetings of a committee to take final
2158 action on behalf of the board or to make recommendations to the
2159 board regarding the association budget are subject to the
2160 provisions of this paragraph. Meetings of a committee that does
2161 not take final action on behalf of the board or make
2162 recommendations to the board regarding the association budget
2163 are subject to the provisions of this section, unless those
2164 meetings are exempted from this section by the bylaws of the
2165 association. Notwithstanding any other law to the contrary, the
2166 requirement that board meetings and committee meetings be open
2167 to the unit owners does not apply to board or committee meetings
2168 held for the purpose of discussing personnel matters or meetings
2169 between the board or a committee and the association’s attorney,
2170 with respect to proposed or pending litigation, if the meeting
2171 is held for the purpose of seeking or rendering legal advice.
2172 (d) Shareholder meetings.—There shall be an annual meeting
2173 of the shareholders. All members of the board of administration
2174 shall be elected at the annual meeting unless the bylaws provide
2175 for staggered election terms or for their election at another
2176 meeting. Any unit owner desiring to be a candidate for board
2177 membership must comply with subparagraph 1. The bylaws must
2178 provide the method for calling meetings, including annual
2179 meetings. Written notice, which must incorporate an
2180 identification of agenda items, shall be given to each unit
2181 owner at least 14 days before the annual meeting and posted in a
2182 conspicuous place on the cooperative property at least 14
2183 continuous days preceding the annual meeting. Upon notice to the
2184 unit owners, the board must by duly adopted rule designate a
2185 specific location on the cooperative property upon which all
2186 notice of unit owner meetings are posted. In lieu of or in
2187 addition to the physical posting of the meeting notice, the
2188 association may, by reasonable rule, adopt a procedure for
2189 conspicuously posting and repeatedly broadcasting the notice and
2190 the agenda on a closed-circuit cable television system serving
2191 the cooperative association. However, if broadcast notice is
2192 used in lieu of a posted notice, the notice and agenda must be
2193 broadcast at least four times every broadcast hour of each day
2194 that a posted notice is otherwise required under this section.
2195 If broadcast notice is provided, the notice and agenda must be
2196 broadcast in a manner and for a sufficient continuous length of
2197 time to allow an average reader to observe the notice and read
2198 and comprehend the entire content of the notice and the agenda.
2199 Unless a unit owner waives in writing the right to receive
2200 notice of the annual meeting, the notice of the annual meeting
2201 must be sent by mail, hand delivered, or electronically
2202 transmitted to each unit owner. An officer of the association
2203 must provide an affidavit or United States Postal Service
2204 certificate of mailing, to be included in the official records
2205 of the association, affirming that notices of the association
2206 meeting were mailed, hand delivered, or electronically
2207 transmitted, in accordance with this provision, to each unit
2208 owner at the address last furnished to the association.
2209 1. The board of administration shall be elected by written
2210 ballot or voting machine. A proxy may not be used in electing
2211 the board of administration in general elections or elections to
2212 fill vacancies caused by recall, resignation, or otherwise
2213 unless otherwise provided in this chapter.
2214 a. At least 60 days before a scheduled election, the
2215 association shall mail, deliver, or transmit, whether by
2216 separate association mailing, delivery, or electronic
2217 transmission or included in another association mailing,
2218 delivery, or electronic transmission, including regularly
2219 published newsletters, to each unit owner entitled to vote, a
2220 first notice of the date of the election. Any unit owner or
2221 other eligible person desiring to be a candidate for the board
2222 of administration must give written notice to the association at
2223 least 40 days before a scheduled election. Together with the
2224 written notice and agenda as set forth in this section, the
2225 association shall mail, deliver, or electronically transmit a
2226 second notice of election to all unit owners entitled to vote,
2227 together with a ballot that lists all candidates. Upon request
2228 of a candidate, the association shall include an information
2229 sheet, no larger than 8 1/2 inches by 11 inches, which must be
2230 furnished by the candidate at least 35 days before the election,
2231 to be included with the mailing, delivery, or electronic
2232 transmission of the ballot, with the costs of mailing, delivery,
2233 or transmission and copying to be borne by the association. The
2234 association is not liable for the contents of the information
2235 sheets provided by the candidates. In order to reduce costs, the
2236 association may print or duplicate the information sheets on
2237 both sides of the paper. The division shall by rule establish
2238 voting procedures consistent with this subparagraph, including
2239 rules establishing procedures for giving notice by electronic
2240 transmission and rules providing for the secrecy of ballots.
2241 Elections shall be decided by a plurality of those ballots cast.
2242 There is no quorum requirement. However, at least 20 percent of
2243 the eligible voters must cast a ballot in order to have a valid
2244 election. A unit owner may not permit any other person to vote
2245 his or her ballot, and any such ballots improperly cast are
2246 invalid. A unit owner who needs assistance in casting the ballot
2247 for the reasons stated in s. 101.051 may obtain assistance in
2248 casting the ballot. Any unit owner violating this provision may
2249 be fined by the association in accordance with s. 719.303. The
2250 regular election must occur on the date of the annual meeting.
2251 This subparagraph does not apply to timeshare cooperatives.
2252 Notwithstanding this subparagraph, an election and balloting are
2253 not required unless more candidates file a notice of intent to
2254 run or are nominated than vacancies exist on the board. Any
2255 challenge to the election process must be commenced within 60
2256 days after the election results are announced.
2257 b. Within 90 days after being elected or appointed to the
2258 board, each new director shall certify in writing to the
2259 secretary of the association that he or she has read the
2260 association’s bylaws, articles of incorporation, proprietary
2261 lease, and current written policies; that he or she will work to
2262 uphold such documents and policies to the best of his or her
2263 ability; and that he or she will faithfully discharge his or her
2264 fiduciary responsibility to the association’s members. Within 90
2265 days after being elected or appointed to the board, in lieu of
2266 this written certification, the newly elected or appointed
2267 director may submit a certificate of having satisfactorily
2268 completed the educational curriculum administered by an
2269 education provider as approved by the division pursuant to the
2270 requirements established in chapter 718 within 1 year before or
2271 90 days after the date of election or appointment. The
2272 educational certificate is valid and does not have to be
2273 resubmitted as long as the director serves on the board without
2274 interruption. A director who fails to timely file the written
2275 certification or educational certificate is suspended from
2276 service on the board until he or she complies with this sub
2277 subparagraph. The board may temporarily fill the vacancy during
2278 the period of suspension. The secretary of the association shall
2279 cause the association to retain a director’s written
2280 certification or educational certificate for inspection by the
2281 members for 5 years after a director’s election or the duration
2282 of the director’s uninterrupted tenure, whichever is longer.
2283 Failure to have such written certification or educational
2284 certificate on file does not affect the validity of any board
2285 action.
2286 2. Any approval by unit owners called for by this chapter,
2287 or the applicable cooperative documents, must be made at a duly
2288 noticed meeting of unit owners and is subject to this chapter or
2289 the applicable cooperative documents relating to unit owner
2290 decisionmaking, except that unit owners may take action by
2291 written agreement, without meetings, on matters for which action
2292 by written agreement without meetings is expressly allowed by
2293 the applicable cooperative documents or law which provides for
2294 the unit owner action.
2295 3. Unit owners may waive notice of specific meetings if
2296 allowed by the applicable cooperative documents or law. If
2297 authorized by the bylaws, Notice of meetings of the board of
2298 administration, shareholder meetings, except shareholder
2299 meetings called to recall board members under paragraph (f), and
2300 committee meetings may be given by electronic transmission to
2301 unit owners who consent to receive notice by electronic
2302 transmission.
2303 4. Unit owners have the right to participate in meetings of
2304 unit owners with reference to all designated agenda items.
2305 However, the association may adopt reasonable rules governing
2306 the frequency, duration, and manner of unit owner participation.
2307 5. Any unit owner may tape record or videotape meetings of
2308 the unit owners subject to reasonable rules adopted by the
2309 division; however, a unit owner may not post the recordings on
2310 any website or other media that can readily be viewed by persons
2311 who are not members of the association.
2312 6. Unless otherwise provided in the bylaws, a vacancy
2313 occurring on the board before the expiration of a term may be
2314 filled by the affirmative vote of the majority of the remaining
2315 directors, even if the remaining directors constitute less than
2316 a quorum, or by the sole remaining director. In the alternative,
2317 a board may hold an election to fill the vacancy, in which case
2318 the election procedures must conform to the requirements of
2319 subparagraph 1. unless the association has opted out of the
2320 statutory election process, in which case the bylaws of the
2321 association control. Unless otherwise provided in the bylaws, a
2322 board member appointed or elected under this subparagraph shall
2323 fill the vacancy for the unexpired term of the seat being
2324 filled. Filling vacancies created by recall is governed by
2325 paragraph (f) and rules adopted by the division.
2326
2327 Notwithstanding subparagraphs (b)2. and (d)1., an association
2328 may, by the affirmative vote of a majority of the total voting
2329 interests, provide for a different voting and election procedure
2330 in its bylaws, which vote may be by a proxy specifically
2331 delineating the different voting and election procedures. The
2332 different voting and election procedures may provide for
2333 elections to be conducted by limited or general proxy.
2334 Section 16. Subsections (3) and (4) of section 719.108,
2335 Florida Statutes, are amended to read:
2336 719.108 Rents and assessments; liability; lien and
2337 priority; interest; collection; cooperative ownership.—
2338 (3) Rents and assessments, and installments on them, not
2339 paid when due bear interest at the rate provided in the
2340 cooperative documents from the date due until paid. This rate
2341 may not exceed the rate allowed by law and, if a rate is not
2342 provided in the cooperative documents, accrues at 18 percent per
2343 annum. If the cooperative documents or bylaws so provide, the
2344 association may charge an administrative late fee in addition to
2345 such interest, not to exceed the greater of $25 or 5 percent of
2346 each installment of the assessment for each delinquent
2347 installment that the payment is late. The association may also
2348 recover from the unit owner any reasonable charges imposed upon
2349 the association under a written contract with its management or
2350 bookkeeping company or collection agent which are incurred in
2351 connection with collecting a delinquent assessment. Such charges
2352 must be based on the actual time expended performing necessary,
2353 nonduplicative services. Fees for collection are not recoverable
2354 for the period after referral of the matter to an association’s
2355 legal counsel. Any payment received by an association must be
2356 applied first to any interest accrued by the association, then
2357 to any administrative late fee, then to any costs and reasonable
2358 attorney fees incurred in collection, then to any reasonable
2359 costs for collection services contracted for by the association,
2360 and then to the delinquent assessment. The foregoing applies
2361 notwithstanding s. 673.3111, any purported accord and
2362 satisfaction, or any restrictive endorsement, designation, or
2363 instruction placed on or accompanying a payment. The preceding
2364 sentence is intended to clarify existing law. A late fee is not
2365 subject to chapter 687 or s. 719.303(4).
2366 (4) The association has a lien on each cooperative parcel
2367 for any unpaid rents and assessments, plus interest, any
2368 reasonable costs for collection services contracted for by the
2369 association, and any authorized administrative late fees. If
2370 authorized by the cooperative documents, the lien also secures
2371 reasonable attorney fees incurred by the association incident to
2372 the collection of the rents and assessments or enforcement of
2373 such lien. The lien is effective from and after recording a
2374 claim of lien in the public records in the county in which the
2375 cooperative parcel is located which states the description of
2376 the cooperative parcel, the name of the unit owner, the amount
2377 due, and the due dates. Except as otherwise provided in this
2378 chapter, a lien may not be filed by the association against a
2379 cooperative parcel until 30 days after the date on which a
2380 notice of intent to file a lien has been delivered to the owner.
2381 (a) The notice must be sent to the unit owner at the
2382 address of the unit by first-class United States mail, and the
2383 notice must be in substantially the following form:
2384 NOTICE OF INTENT
2385 TO RECORD A CLAIM OF LIEN
2386 RE: Unit ...(unit number)... of ...(name of cooperative)...
2387 The following amounts are currently due on your account to
2388 ...(name of association)..., and must be paid within 30 days
2389 after your receipt of this letter. This letter shall serve as
2390 the association’s notice of intent to record a Claim of Lien
2391 against your property no sooner than 30 days after your receipt
2392 of this letter, unless you pay in full the amounts set forth
2393 below:
2394 Maintenance due ...(dates)... $.....
2395 Late fee, if applicable $.....
2396 Interest through ...(dates)...* $.....
2397 Certified mail charges $.....
2398 Other costs $.....
2399 TOTAL OUTSTANDING $.....
2400 *Interest accrues at the rate of .... percent per annum.
2401 1. If the most recent address of the unit owner on the
2402 records of the association is the address of the unit, the
2403 notice must be sent by certified mail, return receipt requested,
2404 to the unit owner at the address of the unit.
2405 2. If the most recent address of the unit owner on the
2406 records of the association is in the United States, but is not
2407 the address of the unit, the notice must be sent by certified
2408 mail, return receipt requested, to the unit owner at his or her
2409 most recent address.
2410 3. If the most recent address of the unit owner on the
2411 records of the association is not in the United States, the
2412 notice must be sent by first-class United States mail to the
2413 unit owner at his or her most recent address.
2414 (b) A notice that is sent pursuant to this subsection is
2415 deemed delivered upon mailing. A claim of lien must be executed
2416 and acknowledged by an officer or authorized agent of the
2417 association. The lien is not effective 1 year after the claim of
2418 lien was recorded unless, within that time, an action to enforce
2419 the lien is commenced. The 1-year period is automatically
2420 extended for any length of time during which the association is
2421 prevented from filing a foreclosure action by an automatic stay
2422 resulting from a bankruptcy petition filed by the parcel owner
2423 or any other person claiming an interest in the parcel. The
2424 claim of lien secures all unpaid rents and assessments that are
2425 due and that may accrue after the claim of lien is recorded and
2426 through the entry of a final judgment, as well as interest and
2427 all reasonable costs and attorney fees incurred by the
2428 association incident to the collection process. Upon payment in
2429 full, the person making the payment is entitled to a
2430 satisfaction of the lien.
2431 (c) By recording a notice in substantially the following
2432 form, a unit owner or the unit owner’s agent or attorney may
2433 require the association to enforce a recorded claim of lien
2434 against his or her cooperative parcel:
2435 NOTICE OF CONTEST OF LIEN
2436 TO: ...(Name and address of association)...:
2437 You are notified that the undersigned contests the claim of lien
2438 filed by you on ...., ...(year)..., and recorded in Official
2439 Records Book .... at Page ...., of the public records of ....
2440 County, Florida, and that the time within which you may file
2441 suit to enforce your lien is limited to 90 days from the date of
2442 service of this notice. Executed this .... day of ....,
2443 ...(year)....
2444 Signed: ...(Owner or Attorney)...
2445 After notice of contest of lien has been recorded, the clerk of
2446 the circuit court shall mail a copy of the recorded notice to
2447 the association by certified mail, return receipt requested, at
2448 the address shown in the claim of lien or most recent amendment
2449 to it and shall certify to the service on the face of the
2450 notice. Service is complete upon mailing. After service, the
2451 association has 90 days in which to file an action to enforce
2452 the lien. If the action is not filed within the 90-day period,
2453 the lien is void. However, the 90-day period shall be extended
2454 for any length of time during which the association is prevented
2455 from filing its action because of an automatic stay resulting
2456 from the filing of a bankruptcy petition by the unit owner or by
2457 any other person claiming an interest in the parcel.
2458 (d) A release of lien must be in substantially the
2459 following form:
2460 RELEASE OF LIEN
2461 The undersigned lienor, in consideration of the final payment in
2462 the amount of $...., hereby waives and releases its lien and
2463 right to claim a lien for unpaid assessments through ....,
2464 ...(year)..., recorded in the Official Records Book .... at Page
2465 ...., of the public records of .... County, Florida, for the
2466 following described real property:
2467 THAT COOPERATIVE PARCEL WHICH INCLUDES UNIT NO. .... OF ...(NAME
2468 OF COOPERATIVE)..., A COOPERATIVE AS SET FORTH IN THE
2469 COOPERATIVE DOCUMENTS AND THE EXHIBITS ANNEXED THERETO AND
2470 FORMING A PART THEREOF, RECORDED IN OFFICIAL RECORDS BOOK ....,
2471 PAGE ...., OF THE PUBLIC RECORDS OF .... COUNTY, FLORIDA.
2472 ...(Signature of Authorized Agent)... ...(Signature of
2473 Witness)...
2474 ...(Print Name)... ...(Print Name)...
2475 ...(Signature of Witness)...
2476 ...(Print Name)...
2477 Sworn to (or affirmed) and subscribed before me this .... day of
2478 ...., ...(year)..., by ...(name of person making statement)....
2479 ...(Signature of Notary Public)...
2480 ...(Print, type, or stamp commissioned name of Notary Public)...
2481 Personally Known .... OR Produced .... as identification.
2482 Section 17. Section 719.129, Florida Statutes, is created
2483 to read:
2484 719.129 Electronic voting.—The association may conduct
2485 elections and other unit owner votes through an Internet-based
2486 online voting system if a unit owner consents in writing to
2487 online voting and if the following requirements are met:
2488 (1) The association provides each unit owner with:
2489 (a) A method to authenticate the unit owner’s identity to
2490 the online voting system.
2491 (b) For elections of the board, a method to transmit an
2492 electronic ballot to the online voting system that ensures the
2493 secrecy and integrity of each ballot.
2494 (c) A method to confirm, at least 14 days before the voting
2495 deadline, that the unit owner’s electronic device can
2496 successfully communicate with the online voting system.
2497 (2) The association uses an online voting system that is:
2498 (a) Able to authenticate the unit owner’s identity.
2499 (b) Able to authenticate the validity of each electronic
2500 vote to ensure that the vote is not altered in transit.
2501 (c) Able to transmit a receipt from the online voting
2502 system to each unit owner who casts an electronic vote.
2503 (d) For elections of the board of administration, able to
2504 permanently separate any authentication or identifying
2505 information from the electronic election ballot, rendering it
2506 impossible to tie an election ballot to a specific unit owner.
2507 (e) Able to store and keep electronic votes accessible to
2508 election officials for recount, inspection, and review purposes.
2509 (3) A unit owner voting electronically pursuant to this
2510 section shall be counted as being in attendance at the meeting
2511 for purposes of determining a quorum. A substantive vote of the
2512 unit owners may not be taken on any issue other than the issues
2513 specifically identified in the electronic vote when a quorum is
2514 established based on unit owners voting electronically pursuant
2515 to this section.
2516 (4) This section applies to an association that provides
2517 for and authorizes an online voting system pursuant to this
2518 section by a board resolution. The board resolution must provide
2519 that unit owners receive notice of the opportunity to vote
2520 through an online voting system, must establish reasonable
2521 procedures and deadlines for unit owners to consent in writing
2522 to online voting, and must establish reasonable procedures and
2523 deadlines for unit owners to opt out of online voting after
2524 giving consent. Written notice of a meeting at which the
2525 resolution will be considered must be mailed, delivered, or
2526 electronically transmitted to the unit owners and posted
2527 conspicuously on the condominium property or association
2528 property at least 14 days before the meeting. Evidence of
2529 compliance with the 14-day notice requirement must be made by an
2530 affidavit executed by the person providing the notice and filed
2531 with the official records of the association.
2532 (5) A unit owner’s consent to online voting is valid until
2533 the unit owner opts out of online voting pursuant to the
2534 procedures established by the board of administration pursuant
2535 to paragraph (4).
2536 (6) This section may apply to any matter that requires a
2537 vote of the unit owners.
2538 Section 18. Subsection (3) of section 719.303, Florida
2539 Statutes, is amended to read:
2540 719.303 Obligations of owners.—
2541 (3) The association may levy reasonable fines for failure
2542 of the unit owner or the unit’s occupant, licensee, or invitee
2543 to comply with any provision of the cooperative documents or
2544 reasonable rules of the association. A fine may not become a
2545 lien against a unit. A fine may be levied by the board of
2546 administration or its authorized designee on the basis of each
2547 day of a continuing violation, with a single notice and
2548 opportunity for hearing before an impartial committee as
2549 provided in paragraph (b). However, the fine may not exceed $100
2550 per violation, or $1,000 in the aggregate.
2551 (a) An association may suspend, for a reasonable period of
2552 time, the right of a unit owner, or a unit owner’s tenant,
2553 guest, or invitee, to use the common elements, common
2554 facilities, or any other association property for failure to
2555 comply with any provision of the cooperative documents or
2556 reasonable rules of the association. This paragraph does not
2557 apply to limited common elements intended to be used only by
2558 that unit, common elements needed to access the unit, utility
2559 services provided to the unit, parking spaces, or elevators.
2560 (b) A fine or suspension levied by the board of
2561 administration or its authorized designee may not be imposed
2562 unless the board first provides at least 14 days’ written except
2563 after giving reasonable notice and an opportunity for a hearing
2564 to the unit owner and, if applicable, its occupant, the unit’s
2565 licensee, or invitee. The hearing must be held before an
2566 impartial a committee of other unit owners who are neither board
2567 members, persons residing in a board member’s household, nor the
2568 authorized designee or members of the authorized designee’s
2569 household. The role of the impartial committee is limited to
2570 determining whether to confirm or reject the fine or suspension
2571 levied by the board or its authorized designee. If the impartial
2572 committee does not agree with the fine or suspension, it may not
2573 be imposed.
2574 Section 19. Subsection (8) of section 720.301, Florida
2575 Statutes, is amended to read:
2576 720.301 Definitions.—As used in this chapter, the term:
2577 (8) “Governing documents” means:
2578 (a) The recorded declaration of covenants for a community,
2579 and all duly adopted and recorded amendments, supplements, and
2580 recorded exhibits thereto; and
2581 (b) The articles of incorporation and bylaws of the
2582 homeowners’ association, and any duly adopted amendments
2583 thereto; and
2584 (c) Rules and regulations adopted under the authority of
2585 the recorded declaration, articles of incorporation, or bylaws
2586 and duly adopted amendments thereto.
2587 Section 20. Section 720.3015, Florida Statutes, is created
2588 to read:
2589 720.3015 Short title.—This chapter may be cited as the
2590 “Homeowners’ Association Act.”
2591 Section 21. Paragraph (c) of subsection (2) of section
2592 720.303, Florida Statutes, is amended to read:
2593 720.303 Association powers and duties; meetings of board;
2594 official records; budgets; financial reporting; association
2595 funds; recalls.—
2596 (2) BOARD MEETINGS.—
2597 (c) The bylaws shall provide for giving notice to parcel
2598 owners and members of all board meetings and, if they do not do
2599 so, shall be deemed to provide the following:
2600 1. Notices of all board meetings must be posted in a
2601 conspicuous place in the community at least 48 hours in advance
2602 of a meeting, except in an emergency. In the alternative, if
2603 notice is not posted in a conspicuous place in the community,
2604 notice of each board meeting must be mailed or delivered to each
2605 member at least 7 days before the meeting, except in an
2606 emergency. Notwithstanding this general notice requirement, for
2607 communities with more than 100 members, the bylaws may provide
2608 for a reasonable alternative to posting or mailing of notice for
2609 each board meeting, including publication of notice, provision
2610 of a schedule of board meetings, or the conspicuous posting and
2611 repeated broadcasting of the notice on a closed-circuit cable
2612 television system serving the homeowners’ association. However,
2613 if broadcast notice is used in lieu of a notice posted
2614 physically in the community, the notice must be broadcast at
2615 least four times every broadcast hour of each day that a posted
2616 notice is otherwise required. When broadcast notice is provided,
2617 the notice and agenda must be broadcast in a manner and for a
2618 sufficient continuous length of time so as to allow an average
2619 reader to observe the notice and read and comprehend the entire
2620 content of the notice and the agenda. The association bylaws or
2621 amended bylaws may provide for giving notice by electronic
2622 transmission in a manner authorized by law for meetings of the
2623 board of directors, committee meetings requiring notice under
2624 this section, and annual and special meetings of the members;
2625 however, a member must consent in writing to receiving notice by
2626 electronic transmission.
2627 2. An assessment may not be levied at a board meeting
2628 unless the notice of the meeting includes a statement that
2629 assessments will be considered and the nature of the
2630 assessments. Written notice of any meeting at which special
2631 assessments will be considered or at which amendments to rules
2632 regarding parcel use will be considered must be mailed,
2633 delivered, or electronically transmitted to the members and
2634 parcel owners and posted conspicuously on the property or
2635 broadcast on closed-circuit cable television not less than 14
2636 days before the meeting.
2637 3. Directors may not vote by proxy or by secret ballot at
2638 board meetings, except that secret ballots may be used in the
2639 election of officers. This subsection also applies to the
2640 meetings of any committee or other similar body, when a final
2641 decision will be made regarding the expenditure of association
2642 funds, and to any body vested with the power to approve or
2643 disapprove architectural decisions with respect to a specific
2644 parcel of residential property owned by a member of the
2645 community.
2646 Section 22. Section 720.305, Florida Statutes, is amended
2647 to read:
2648 720.305 Obligations of members; remedies at law or in
2649 equity; levy of fines and suspension of use rights.—
2650 (1) Each member and the member’s tenants, guests, and
2651 invitees, and each association, are governed by, and must comply
2652 with, this chapter, the governing documents of the community,
2653 and the rules of the association. Actions at law or in equity,
2654 or both, to redress alleged failure or refusal to comply with
2655 these provisions may be brought by the association or by any
2656 member against:
2657 (a) The association;
2658 (b) A member;
2659 (c) Any director or officer of an association who willfully
2660 and knowingly fails to comply with these provisions; and
2661 (d) Any tenants, guests, or invitees occupying a parcel or
2662 using the common areas.
2663
2664 The prevailing party in any such litigation is entitled to
2665 recover reasonable attorney attorney’s fees and costs. A member
2666 prevailing in an action between the association and the member
2667 under this section, in addition to recovering his or her
2668 reasonable attorney attorney’s fees, may recover additional
2669 amounts as determined by the court to be necessary to reimburse
2670 the member for his or her share of assessments levied by the
2671 association to fund its expenses of the litigation. This relief
2672 does not exclude other remedies provided by law. This section
2673 does not deprive any person of any other available right or
2674 remedy.
2675 (2) The association may levy reasonable fines. A fine may
2676 not exceed of up to $100 per violation against any member or any
2677 member’s tenant, guest, or invitee for the failure of the owner
2678 of the parcel or its occupant, licensee, or invitee to comply
2679 with any provision of the declaration, the association bylaws,
2680 or reasonable rules of the association unless otherwise provided
2681 in the governing documents. A fine may be levied by the board or
2682 its authorized designee for each day of a continuing violation,
2683 with a single notice and opportunity for hearing, except that
2684 the fine may not exceed $1,000 in the aggregate unless otherwise
2685 provided in the governing documents. A fine of less than $1,000
2686 may not become a lien against a parcel. In any action to recover
2687 a fine, the prevailing party is entitled to reasonable attorney
2688 fees and costs from the nonprevailing party as determined by the
2689 court.
2690 (a) An association may suspend, for a reasonable period of
2691 time, the right of a member, or a member’s tenant, guest, or
2692 invitee, to use common areas and facilities for the failure of
2693 the owner of the parcel or its occupant, licensee, or invitee to
2694 comply with any provision of the declaration, the association
2695 bylaws, or reasonable rules of the association. This paragraph
2696 does not apply to that portion of common areas used to provide
2697 access or utility services to the parcel. A suspension may not
2698 prohibit impair the right of an owner or tenant of a parcel from
2699 having to have vehicular and pedestrian ingress to and egress
2700 from the parcel, including, but not limited to, the right to
2701 park.
2702 (b) A fine or suspension may not be imposed by the board of
2703 administration or its authorized designee without at least 14
2704 days’ notice to the person sought to be fined or suspended and
2705 an opportunity for a hearing before an impartial a committee of
2706 at least three members appointed by the board who are not
2707 officers, directors, or employees of the association, or the
2708 spouse, parent, child, brother, or sister of an officer,
2709 director, or employee, or the board’s designee or the designee’s
2710 family. If the committee, by majority vote, does not approve a
2711 proposed fine or suspension, it may not be imposed. The role of
2712 the impartial committee is limited to determining whether to
2713 confirm or reject the fine or suspension levied by the board or
2714 its authorized designee. If the board of administration or its
2715 authorized designee association imposes a fine or suspension,
2716 the association must provide written notice of such fine or
2717 suspension by mail or hand delivery to the parcel owner and, if
2718 applicable, to any tenant, licensee, or invitee of the parcel
2719 owner.
2720 (3) If a member is more than 90 days delinquent in paying
2721 any fee, fine, or other a monetary obligation due to the
2722 association, the association may suspend the rights of the
2723 member, or the member’s tenant, guest, or invitee, to use common
2724 areas and facilities until the fee, fine, or other monetary
2725 obligation is paid in full. This subsection does not apply to
2726 that portion of common areas used to provide access or utility
2727 services to the parcel. A suspension may does not prohibit
2728 impair the right of an owner or tenant of a parcel from having
2729 to have vehicular and pedestrian ingress to and egress from the
2730 parcel, including, but not limited to, the right to park. The
2731 notice and hearing requirements under subsection (2) do not
2732 apply to a suspension imposed under this subsection.
2733 (4) An association may suspend the voting rights of a
2734 parcel or member for the nonpayment of any fee, fine, or other
2735 monetary obligation due to the association which that is more
2736 than 90 days delinquent. A voting interest or consent right
2737 allocated to a parcel or member which has been suspended by the
2738 association shall be subtracted from may not be counted towards
2739 the total number of voting interests in the association, which
2740 shall be reduced by the number of suspended voting interests
2741 when calculating the total percentage or number of all voting
2742 interests available to take or approve any action, and the
2743 suspended voting interests may not be considered for any
2744 purpose, including, but not limited to, the percentage or number
2745 of voting interests necessary to constitute a quorum, the
2746 percentage or number of voting interests required to conduct an
2747 election, or the percentage or number of voting interests
2748 required to approve an action under this chapter or pursuant to
2749 the governing documents. The notice and hearing requirements
2750 under subsection (2) do not apply to a suspension imposed under
2751 this subsection. The suspension ends upon full payment of all
2752 obligations currently due or overdue to the association.
2753 (5) All suspensions imposed pursuant to subsection (3) or
2754 subsection (4) must be approved at a properly noticed board
2755 meeting. Upon approval, the association must notify the parcel
2756 owner and, if applicable, the parcel’s occupant, licensee, or
2757 invitee by mail or hand delivery.
2758 (6) The suspensions permitted by paragraph (2)(a) and
2759 subsections (3) and (4) apply to a member and, when appropriate,
2760 the member’s tenants, guests, or invitees, even if the
2761 delinquency or failure that resulted in the suspension arose
2762 from less than all of the multiple parcels owned by the member.
2763 Section 23. Paragraph (b) of subsection (1) and subsections
2764 (9) and (10) of section 720.306, Florida Statutes, are amended
2765 to read:
2766 720.306 Meetings of members; voting and election
2767 procedures; amendments.—
2768 (1) QUORUM; AMENDMENTS.—
2769 (b) Unless otherwise provided in the governing documents or
2770 required by law, and other than those matters set forth in
2771 paragraph (c), any governing document of an association may be
2772 amended by the affirmative vote of two-thirds of the voting
2773 interests of the association. Within 30 days after recording an
2774 amendment to the governing documents, the association shall
2775 provide copies of the amendment to the members. However, if a
2776 copy of the proposed amendment is provided to the members before
2777 they vote on the amendment and the proposed amendment is not
2778 changed before the vote, the association, in lieu of providing a
2779 copy of the amendment, may provide notice to the members that
2780 the amendment was adopted, identifying the official book and
2781 page number or instrument number of the recorded amendment and
2782 that a copy of the amendment is available at no charge to the
2783 member upon written request to the association. The copies and
2784 notice described in this paragraph may be provided
2785 electronically to those owners who previously consented to
2786 receive notice electronically. The failure to timely provide
2787 notice of the recording of the amendment does not affect the
2788 validity or enforceability of the amendment.
2789 (9) ELECTIONS AND BOARD VACANCIES.—
2790 (a) Elections of directors must be conducted in accordance
2791 with the procedures set forth in the governing documents of the
2792 association. Except as provided in paragraph (b), all members of
2793 the association are eligible to serve on the board of directors,
2794 and a member may nominate himself or herself as a candidate for
2795 the board at a meeting where the election is to be held;
2796 provided, however, that if the election process allows
2797 candidates to be nominated in advance of the meeting, the
2798 association is not required to allow nominations at the meeting.
2799 An election is not required unless more candidates are nominated
2800 than vacancies exist. Except as otherwise provided in the
2801 governing documents, boards of directors must be elected by a
2802 plurality of the votes cast by eligible voters. Any challenge to
2803 the election process must be commenced within 60 days after the
2804 election results are announced.
2805 (b) A person who is delinquent in the payment of any fee,
2806 fine, or other monetary obligation to the association on the day
2807 that he or she could last nominate himself or herself or be
2808 nominated for the board may not seek election to the board, and
2809 his or her name may not be listed on the ballot. A person
2810 serving as a board member who becomes more than 90 days
2811 delinquent in the payment of any fee, fine, or other monetary
2812 obligation to the association shall be deemed to have abandoned
2813 his or her seat on the board, creating a vacancy on the board to
2814 be filled according to law. For purposes of this paragraph, the
2815 term “any fee, fine, or other monetary obligation” means any
2816 delinquency to the association with respect to any parcel for
2817 more than 90 days is not eligible for board membership. A person
2818 who has been convicted of any felony in this state or in a
2819 United States District or Territorial Court, or has been
2820 convicted of any offense in another jurisdiction which would be
2821 considered a felony if committed in this state, may not seek
2822 election to the board and is not eligible for board membership
2823 unless such felon’s civil rights have been restored for at least
2824 5 years as of the date on which such person seeks election to
2825 the board. The validity of any action by the board is not
2826 affected if it is later determined that a person was ineligible
2827 to seek election to the board or that a member of the board is
2828 ineligible for board membership.
2829 (c) Any election dispute between a member and an
2830 association must be submitted to mandatory binding arbitration
2831 with the division. Such proceedings must be conducted in the
2832 manner provided by s. 718.1255 and the procedural rules adopted
2833 by the division. Unless otherwise provided in the bylaws, any
2834 vacancy occurring on the board before the expiration of a term
2835 may be filled by an affirmative vote of the majority of the
2836 remaining directors, even if the remaining directors constitute
2837 less than a quorum, or by the sole remaining director. In the
2838 alternative, a board may hold an election to fill the vacancy,
2839 in which case the election procedures must conform to the
2840 requirements of the governing documents. Unless otherwise
2841 provided in the bylaws, a board member appointed or elected
2842 under this section is appointed for the unexpired term of the
2843 seat being filled. Filling vacancies created by recall is
2844 governed by s. 720.303(10) and rules adopted by the division.
2845 (10) RECORDING.—Any parcel owner may tape record or
2846 videotape meetings of the board of directors and meetings of the
2847 members; however, a parcel owner may not post the recordings on
2848 any website or other media that can readily be viewed by persons
2849 who are not members of the association. The board of directors
2850 of the association may adopt reasonable rules governing the
2851 taping of meetings of the board and the membership.
2852 Section 24. Paragraph (a) of subsection (1) and subsection
2853 (3) of section 720.3085, Florida Statutes, are amended to read:
2854 720.3085 Payment for assessments; lien claims.—
2855 (1) When authorized by the governing documents, the
2856 association has a lien on each parcel to secure the payment of
2857 assessments and other amounts provided for by this section.
2858 Except as otherwise set forth in this section, the lien is
2859 effective from and shall relate back to the date on which the
2860 original declaration of the community was recorded. However, as
2861 to first mortgages of record, the lien is effective from and
2862 after recording of a claim of lien in the public records of the
2863 county in which the parcel is located. This subsection does not
2864 bestow upon any lien, mortgage, or certified judgment of record
2865 on July 1, 2008, including the lien for unpaid assessments
2866 created in this section, a priority that, by law, the lien,
2867 mortgage, or judgment did not have before July 1, 2008.
2868 (a) To be valid, a claim of lien must state the description
2869 of the parcel, the name of the record owner, the name and
2870 address of the association, the assessment amount due, and the
2871 due date. The claim of lien secures all unpaid assessments that
2872 are due and that may accrue subsequent to the recording of the
2873 claim of lien and before entry of a certificate of title, as
2874 well as interest, late charges, and reasonable collection costs
2875 and attorney fees incurred by the association incident to the
2876 collection process. The person making payment is entitled to a
2877 satisfaction of the lien upon payment in full.
2878 (3) Assessments and installments on assessments that are
2879 not paid when due bear interest from the due date until paid at
2880 the rate provided in the declaration of covenants or the bylaws
2881 of the association, which rate may not exceed the rate allowed
2882 by law. If no rate is provided in the declaration or bylaws,
2883 interest accrues at the rate of 18 percent per year.
2884 (a) If the declaration or bylaws so provide, the
2885 association may also charge an administrative late fee not to
2886 exceed the greater of $25 or 5 percent of the amount of each
2887 installment that is paid past the due date. The association may
2888 also recover from the parcel owner any reasonable charges
2889 imposed upon the association under a written contract with its
2890 management or bookkeeping company or collection agent which are
2891 incurred in connection with collecting a delinquent assessment.
2892 Such charges must be based on the actual time expended
2893 performing necessary, nonduplicative services. Fees for
2894 collection are not recoverable for the period after referral of
2895 the matter to an association’s legal counsel.
2896 (b) Any payment received by an association and accepted
2897 shall be applied first to any interest accrued, then to any
2898 administrative late fee, then to any costs and reasonable
2899 attorney fees incurred in collection, then to any reasonable
2900 costs for collection services contracted for by the association,
2901 and then to the delinquent assessment. This paragraph applies
2902 notwithstanding any restrictive endorsement, designation, or
2903 instruction placed on or accompanying a payment. A late fee is
2904 not subject to the provisions of chapter 687 and is not a fine.
2905 Section 25. Section 720.317, Florida Statutes, is created
2906 to read:
2907 720.317 Electronic voting.—The association may conduct
2908 elections and other membership votes through an Internet-based
2909 online voting system if a member consents in writing to online
2910 voting and if the following requirements are met:
2911 (1) The association provides each member with:
2912 (a) A method to authenticate the member’s identity to the
2913 online voting system.
2914 (b) A method to confirm, at least 14 days before the voting
2915 deadline, that the member’s electronic device can successfully
2916 communicate with the online voting system.
2917 (c) A method that is consistent with the election and
2918 voting procedures in the association’s bylaws.
2919 (2) The association uses an online voting system that is:
2920 (a) Able to authenticate the member’s identity.
2921 (b) Able to authenticate the validity of each electronic
2922 vote to ensure that the vote is not altered in transit.
2923 (c) Able to transmit a receipt from the online voting
2924 system to each member who casts an electronic vote.
2925 (d) Able to permanently separate any authentication or
2926 identifying information from the electronic election ballot,
2927 rendering it impossible to tie an election ballot to a specific
2928 member. This paragraph only applies if the association’s bylaws
2929 provide for secret ballots for the election of directors.
2930 (e) Able to store and keep electronic ballots accessible to
2931 election officials for recount, inspection, and review purposes.
2932 (3) A member voting electronically pursuant to this section
2933 shall be counted as being in attendance at the meeting for
2934 purposes of determining a quorum.
2935 (4) This section applies to an association that provides
2936 for and authorizes an online voting system pursuant to this
2937 section by a board resolution. The board resolution must provide
2938 that members receive notice of the opportunity to vote through
2939 an online voting system, must establish reasonable procedures
2940 and deadlines for members to consent in writing to online
2941 voting, and must establish reasonable procedures and deadlines
2942 for members to opt out of online voting after giving consent.
2943 Written notice of a meeting at which the board resolution
2944 regarding online voting will be considered must be mailed,
2945 delivered, or electronically transmitted to the unit owners and
2946 posted conspicuously on the condominium property or association
2947 property at least 14 days before the meeting. Evidence of
2948 compliance with the 14-day notice requirement must be made by an
2949 affidavit executed by the person providing the notice and filed
2950 with the official records of the association.
2951 (5) A member’s consent to online voting is valid until the
2952 member opts out of online voting pursuant to the procedures
2953 established by the board of administration pursuant to paragraph
2954 (4).
2955 (6) This section may apply to any matter that requires a
2956 vote of the members.
2957 Section 26. This act shall take effect July 1, 2015.