Florida House of Representatives - 2002                 HB 843
    By Representative Mack

1                     A bill to be entitled
2     An act relating to condominiums, cooperatives,
3     and homeowners' associations; amending s.
4     702.09, F.S.; redefining the terms "mortgage"
5     and "foreclosure proceedings"; amending s.
6     718.104, F.S.; revising provisions relating to
7     declarations for the creation of a condominium;
8     amending s. 718.106, F.S.; revising provisions
9     relating to appurtenances that pass with a
10   condominium unit; amending s. 718.110, F.S.;
11    revising provisions relating to amendments to a
12    declaration of condominium; amending s.
13    718.111, F.S.; revising provisions relating to
14    the association; amending s. 718.112, F.S.;
15    revising provisions relating to bylaws;
16    amending s. 718.113, F.S.; revising provisions
17    relating to material alterations of common
18    elements or association real property operated
19    by a multicondominium association; amending s.
20    718.115, F.S.; revising provisions relating to
21    common expenses; amending s. 718.1255, F.S.,
22    relating to alternative dispute resolution
23    procedures; providing for the expedited
24    handling of any allegation of an irregularity
25    in the election of any director of the board of
26    administration of a condominium; amending s.
27    718.405, F.S.; revising provisions relating to
28    multicondominiums and multicondominium
29    associations; amending s. 718.503, F.S.;
30    relating to disclosure requirements for the
31   sale of certain condominiums; removing the

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1         requirement that question and answer sheets be
2         part of the closing documents; amending s.
3        718.504, F.S.; revising provisions relating to
4         the prospectus or offering circular; providing
5         an effective date.
6
7  Be It Enacted by the Legislature of the State of Florida:
8
9         Section 1.  Section 702.09, Florida Statutes, is
10  amended to read:
11        702.09  Definitions.--For the purposes of ss. 702.07
12  and 702.08 the words "decree of foreclosure" shall include a
13  judgment or order rendered or passed in the foreclosure
14  proceedings in which the decree of foreclosure shall be
15  rescinded, vacated, and set aside; the word "mortgage" shall
16  mean any written instrument securing the payment of money or
17  advances and includes liens to secure payment of assessments
18  arising under chapters 718, 719, and 720; the word "debt"
19  shall include promissory notes, bonds, and all other written
20  obligations given for the payment of money; the words
21  "foreclosure proceedings" shall embrace every action in the
22  circuit or county courts of this state wherein it is sought to
23  foreclose a mortgage and sell the property covered by the
24  same; and the word "property" shall mean and include both real
25  and personal property.
26         Section 2.  Paragraph (h) of subsection (4) and
27  subsection (5) of section 718.104, Florida Statutes, are
28  amended to read:
29        718.104  Creation of condominiums; contents of
30  declaration.--Every condominium created in this state shall be
31  created pursuant to this chapter.

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1         (4)  The declaration must contain or provide for the
2  following matters:
3         (h)  If a developer reserves the right, in a
4  declaration recorded on or after July 1, 2000, to create a
5  multicondominium, the declaration must state, or provide a
6  specific formula for determining, the fractional or percentage
7  shares of liability for the common expenses of the association
8  and of ownership of the common surplus of the association to
9  be allocated to the units in each condominium to be operated
10  by the association.  If a the declaration recorded on or after
11  July 1, 2000, for a condominium operated by a multicondominium
12  association as originally recorded fails to so provide, the
13  share of liability for the common expenses of the association
14  and of ownership of the common surplus of the association
15  allocated to each unit in each condominium operated by the
16  association shall be a fraction of the whole, the numerator of
17  which is the number "one" and the denominator of which is the
18  total number of units in all condominiums operated by the
19  association.
20         (5)  The declaration as originally recorded or as
21  amended under the procedures provided therein may include
22  covenants and restrictions concerning the use, occupancy, and
23  transfer of the units permitted by law with reference to real
24  property. With the exception of amendments that materially
25  modify unit appurtenances as provided in s. 718.110(4),
26  properly adopted amendments may be applied to owners of units
27  existing as of the effective date of the amendment, including
28  those who did not consent to the amendment. This section is
29  intended to clarify existing law and applies to associations
30  existing on the effective date of this act.  However, the rule
31  against perpetuities shall not defeat a right given any person

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1  or entity by the declaration for the purpose of allowing unit
2  owners to retain reasonable control over the use, occupancy,
3  and transfer of units.
4         Section 3.  Paragraph (b) of subsection (2) of section
5  718.106, Florida Statutes, is amended to read:
6        718.106  Condominium parcels; appurtenances; possession
7  and enjoyment.--
8         (2)  There shall pass with a unit, as appurtenances
9  thereto:
10         (b)  The exclusive right to use such portion of the
11  common elements as may be provided by the declaration,
12  including the right to transfer such right to other units or
13  unit owners to the extent authorized by the declaration as
14  originally recorded, or amendments to the declaration adopted
15  pursuant to the provisions contained therein under s.
16  718.110(2). Amendments to declarations of condominium
17  providing for the transfer of use rights with respect to
18  limited common elements are not amendments that materially
19  modify unit appurtenances as described in s. 718.110(4).
20  However, in order to be effective, the transfer of use rights
21  with respect to limited common elements must be effectuated in
22  conformity with the procedures set forth in the declaration as
23  originally recorded or as amended under the procedures
24  provided therein. The transfers must be evidenced by a written
25  instrument that is executed with the formalities of a deed and
26  recorded in the land records of the county in which the
27  condominium is located in order to be effective. The
28  instrument of transfer must also specify the legal description
29  of the unit that is transferring use rights, as well as the
30  legal description of the unit obtaining the transfer of those
31  rights. Any first mortgagee with respect to both the unit that

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1  is transferring the use rights and the unit that is receiving
2  the transfer of use rights must also consent to the transfer,
3  evidence of which must be recorded with the instruments of
4  transfer. This section is intended to clarify existing law and
5  applies to associations existing on the effective date of this
6  act.
7         Section 4.  Subsection (4) of section 718.110, Florida
8  Statutes, is amended to read:
9        718.110  Amendment of declaration; correction of error
10  or omission in declaration by circuit court.--
11         (4)  Unless otherwise provided in the declaration as
12  originally recorded, no amendment may change the configuration
13  or size of any unit in any material fashion, materially alter
14  or modify the appurtenances to the unit, or change the
15  proportion or percentage by which the unit owner shares the
16  common expenses of the condominium and owns the common surplus
17  of the condominium unless the record owner of the unit and all
18  record owners of liens on the unit join in the execution of
19  the amendment and unless all the record owners of all other
20  units in the same condominium approve the amendment.  The
21  acquisition of property by the association, and material
22  alterations or substantial additions to such property or the
23  common elements by the association in accordance with s.
24  718.111(7) or s. 718.113, amendments providing for the
25  transfer of use rights in limited common elements pursuant to
26  s. 718.106(2)(b), and amendments restricting or modifying the
27  right to lease condominium units shall not be deemed to
28  constitute a material alteration or modification of the
29  appurtenances to the units. With the exception of properly
30  adopted amendments that materially modify unit appurtenances
31  as provided in this section, amendments may be applied to all
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1  owners of units existing as of the effective date of the
2  amendment, including those who did not consent to the
3  amendment. This section is intended to clarify existing law
4  and applies to associations existing on the effective date of
5  this act. A declaration recorded after April 1, 1992, may not
6  require the approval of less than a majority of total voting
7  interests of the condominium for amendments under this
8  subsection, unless otherwise required by a governmental
9  entity.
10         Section 5.  Subsection (4), paragraph (a) of subsection
11  (7), and subsection (13) of section 718.111, Florida Statutes,
12  are amended to read:
13        718.111  The association.--
14        (4)  ASSESSMENTS; MANAGEMENT OF COMMON ELEMENTS.--The
15  association has the power to make and collect assessments and
16  to lease, maintain, repair, and replace the common elements or
17  association property; however, the association may not charge
18  a use fee against a unit owner for the use of common elements
19  or association property unless otherwise provided for in the
20  declaration of condominium or by a majority vote of the
21  association or unless the charges relate to expenses incurred
22  by an owner having exclusive use of the common elements or
23  association property.
24         (7)  TITLE TO PROPERTY.--
25         (a)  The association has the power to acquire title to
26  property or otherwise hold, convey, lease, and mortgage
27  association property for the use and benefit of its members.
28  The power to acquire personal property shall be exercised by
29  the board of administration. Except as otherwise permitted in
30  subsections (8) and (9) and in s. 718.114, no association may
31  acquire, convey, lease, or mortgage association real property
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1  except in the manner provided in the declaration, and if the
2  declaration does not specify the procedure, then approval of
3  75 percent of the total voting interests shall be required.
4         (13)  FINANCIAL REPORTING.--Within 90 days after the
5  end of the fiscal year, or annually on a date provided in the
6  bylaws, the association shall prepare and complete, or
7  contract for the preparation and completion of or cause to be
8  prepared and completed by a third party, a financial report
9  for the preceding fiscal year.  Within 21 days after the final
10  financial report is completed by the association or received
11  by the association from the third party, but not later than
12  120 days after the end of the fiscal year or other date as
13  provided in the bylaws, the association shall mail to each
14  unit owner at the address last furnished to the association by
15  the unit owner, or hand deliver to each unit owner, a copy of
16  the financial report or a notice that a copy of the financial
17  report will be mailed or hand delivered to the unit owner,
18  without charge, upon receipt of a written request from the
19  unit owner.  The division shall adopt rules setting forth
20  uniform accounting principles and standards to be used by all
21  associations and shall adopt rules addressing financial
22  reporting requirements for multicondominium associations.  In
23  adopting such rules, the division shall consider the number of
24  members and annual revenues of an association.  Financial
25  reports shall be prepared as follows:
26         (a)  An association that meets the criteria of this
27  paragraph shall prepare or cause to be prepared a complete set
28  of financial statements in accordance with generally accepted
29  accounting principles.  The financial statements shall be
30  based upon the association's total annual revenues, as
31  follows:

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1         1.  An association with total annual revenues of
2  $100,000 or more, but less than $200,000, shall prepare
3  compiled financial statements.
4         2.  An association with total annual revenues of at
5  least $200,000, but less than $400,000, shall prepare reviewed
6    financial statements.
7         3.  An association with total annual revenues of
8   $400,000 or more shall prepare audited financial statements.
9         (b)1.  An association with total annual revenues of
10  less than $100,000 shall prepare a report of cash receipts and
11  expenditures.
12         2.  An association which operates less than 50 units,
13  regardless of the association's annual revenues, shall prepare
14  a report of cash receipts and expenditures in lieu of
15  financial statements required by paragraph (a).
16         3.  A report of cash receipts and disbursements must
17  disclose the amount of receipts by accounts and receipt
18  classifications and the amount of expenses by accounts and
19  expense classifications, including, but not limited to, the
20  following, as applicable: costs for security, professional and
21  management fees and expenses, taxes, costs for recreation
22  facilities, expenses for refuse collection and utility
23  services, expenses for lawn care, costs for building
24  maintenance and repair, insurance costs, administration and
25  salary expenses, and reserves accumulated and expended for
26  capital expenditures, deferred maintenance, and any other
27  category for which the association maintains reserves.
28         (c)  An association may prepare or cause to be
29  prepared, without a meeting of or approval by the unit owners:
30
31
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1         1.  Compiled, reviewed, or audited financial
2  statements, if the association is required to prepare a report
3  of cash receipts and expenditures;
4         2.  Reviewed or audited financial statements, if the
5  association is required to prepare compiled financial
6  statements; or
7         3.  Audited financial statements if the association is
8  required to prepare reviewed financial statements.
9         (d)  If approved by a majority of the voting interests
10  present at a properly called meeting of the association, an
11  association may prepare or cause to be prepared:
12         1.  A report of cash receipts and expenditures in lieu
13  of a compiled, reviewed, or audited financial statement;
14         2.  A report of cash receipts and expenditures or a
15  compiled financial statement in lieu of a reviewed or audited
16  financial statement; or
17         3.  A report of cash receipts and expenditures, a
18  compiled financial statement, or a reviewed financial
19  statement in lieu of an audited financial statement.
20
21  Such meeting and approval must occur prior to the end of the
22  fiscal year and is effective only for the fiscal year in which
23  the vote is taken. With respect to an association to which the
24  developer has not turned over control of the association, all
25  unit owners, including the developer, may vote on issues
26  related to the preparation of financial reports for the first
27  2 fiscal years of the association's operation, beginning with
28  the fiscal year in which the declaration is recorded.
29  Thereafter, all unit owners except the developer may vote on
30  such issues until control is turned over to the association by
31  the developer.

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1         Section 6.  Subsection (3) of section 718.112, Florida
2  Statutes, is amended to read:
3        718.112  Bylaws.--
4         (3)  OPTIONAL PROVISIONS.--The bylaws as originally
5  recorded or as amended under the procedures provided therein
6  may provide for the following:
7         (a)  A method of adopting and amending administrative
8  rules and regulations governing the details of the operation
9  and use of the common elements.
10         (b)  Restrictions on and requirements for the use,
11  maintenance, and appearance of the units and the use of the
12  common elements.
13         (c)  Other provisions which are not inconsistent with
14  this chapter or with the declaration, as may be desired. With
15  the exception of properly adopted amendments that materially
16  modify unit appurtenances as provided in this section,
17  amendments may be applied to all owners of units existing as
18  of the effective date of the amendment, including those who
19  did not consent to the amendment. This subsection is intended
20  to clarify existing law and applies to associations existing
21  on the effective date of this act.
22         Section 7.  Subsection (2) of section 718.113, Florida
23  Statutes, is amended to read:
24        718.113  Maintenance; limitation upon improvement;
25  display of flag; hurricane shutters.--
26         (2)(a)  Except as otherwise provided in this section,
27  there shall be no material alteration or substantial additions
28  to the common elements or to real property which is
29  association property, except in a manner provided in the
30  declaration as originally recorded or as amended under the
31  procedures provided therein.  If the declaration as originally

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1  recorded or as amended under the procedures provided therein
2  does not specify the procedure for approval of material
3  alterations or substantial additions, 75 percent of the total
4  voting interests of the association must approve the
5  alterations or additions.
6         (b)  There shall not be any material alteration of, or
7  substantial addition to, the common elements of any
8  condominium operated by a multicondominium association unless
9  approved in the manner provided in the declaration of the
10  affected condominium or condominiums as originally recorded or
11  as amended under the procedures provided therein. If a
12  declaration as originally recorded or as amended under the
13  procedures provided therein does not specify a procedure for
14  approving such an alteration or addition, the approval of 75
15  percent of the total voting interests of each affected
16  condominium is required. This subsection does not prohibit a
17  provision in any declaration, articles of incorporation, or
18  bylaws as originally recorded or as amended under the
19  procedures provided therein requiring the approval of unit
20  owners in any condominium operated by the same association or
21  requiring board approval before a material alteration or
22  substantial addition to the common elements is permitted. This
23  paragraph is intended to clarify existing law and applies to
24  associations existing on the effective date of this act.
25         (c)  There shall not be any material alteration or
26  substantial addition made to association real property
27  operated by a multicondominium association, except as provided
28  in the declaration, articles of incorporation, or bylaws as
29  originally recorded or as amended under the procedures
30  provided therein. If the declaration, articles of
31  incorporation, or bylaws as originally recorded or as amended

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1  under the procedures provided therein do not specify the
2  procedure for approving an alteration or addition to
3  association real property, the approval of 75 percent of the
4  total voting interests of the association is required. This
5  paragraph is intended to clarify existing law and applies to
6  associations existing on the effective date of this act.
7         Section 8.  Paragraphs (b) and (c) of subsection (1) of
8  section 718.115, Florida Statutes, are amended to read:
9        718.115  Common expenses and common surplus.--
10         (1)
11         (b)  The common expenses of a condominium within a
12  multicondominium are the common expenses directly attributable
13  to the operation of that condominium. The common expenses of a
14  multicondominium association do not include the common
15  expenses directly attributable to the operation of any
16  specific condominium or condominiums within the
17  multicondominium. This paragraph is intended to clarify
18  existing law and applies to associations existing on the
19  effective date of this act.
20         (c)  The common expenses of a multicondominium
21  association may include categories of expenses related to the
22  property or common elements within a specific condominium in
23  the multicondominium if such property or common elements are
24  areas in which all members of the multicondominium association
25  have use rights or from which all members receive tangible
26  economic benefits. Such common expenses of the association
27  shall be identified in the declaration or bylaws as originally
28  recorded or as amended under the procedures provided therein
29  of each condominium within the multicondominium association.
30  This paragraph is intended to clarify existing law and applies
31  to associations existing on the effective date of this act.

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1         Section 9.  Subsection (5) is added to section
2  718.1255, Florida Statutes, to read:
3        718.1255  Alternative dispute resolution; voluntary
4  mediation; mandatory nonbinding arbitration; legislative
5  findings.--
6        (5)  DISPUTES INVOLVING ELECTION IRREGULARITIES.--Every
7  arbitration petition received by the division and required to
8  be filed under this section challenging the legality of the
9  election of any director of the board of administration must
10  be handled on an expedited basis in the manner provided by the
11  division's rules for recall arbitration disputes.
12         Section 10.  Subsections (1) and (4) of section
13  718.405, Florida Statutes, are amended to read:
14        718.405  Multicondominiums; multicondominium
15  associations.--
16         (1)  An association may operate more than one
17  condominium. For multicondominiums created on or after July 1,
18  2000, if the declaration for each condominium to be operated
19  by that association must provide provides for participation in
20  a multicondominium, in conformity with this section, and
21  disclose discloses or describe describes:
22         (a)  The manner or formula by which the assets,
23  liabilities, common surplus, and common expenses of the
24  association will be apportioned among the units within the
25  condominiums operated by the association, in accordance with
26  s. 718.104(4)(g) or (h), as applicable.
27         (b)  Whether unit owners in any other condominium, or
28  any other persons, will or may have the right to use
29  recreational areas or any other facilities or amenities that
30  are common elements of the condominium, and, if so, the
31

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1  specific formula by which the other users will share the
2  common expenses related to those facilities or amenities.
3         (c)  Recreational and other commonly used facilities or
4  amenities which the developer has committed to provide that
5  will be owned, leased by, or dedicated by a recorded plat to
6  the association but which are not included within any
7  condominium operated by the association. The developer may
8  reserve the right to add additional facilities or amenities if
9  the declaration and prospectus for each condominium to be
10  operated by the association contains the following statement
11  in conspicuous type and in substantially the following form:
12  RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT
13  CONSENT OF UNIT OWNERS OR THE ASSOCIATION.
14         (d)  The voting rights of the unit owners in the
15  election of directors and in other multicondominium
16  association affairs when a vote of the owners is taken,
17  including, but not limited to, a statement as to whether each
18  unit owner will have a right to personally cast his or her own
19  vote in all matters voted upon.
20         (4)  This section does not prevent or restrict the
21  formation of a multicondominium by the merger or consolidation
22  of two or more condominium associations. Mergers or
23  consolidations of associations shall be accomplished in
24  accordance with this chapter, the declarations of the
25  condominiums being merged or consolidated, and chapter 617.
26  Section 718.110(4) does not apply to amendments to
27  declarations necessary to effect a merger or consolidation.
28  This section is intended to clarify existing law and applies
29  to associations existing on the effective date of this act.
30         Section 11.  Subsection (2) of section 718.503, Florida
31  Statutes, is amended to read:

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1        718.503  Developer disclosure prior to sale;
2  nondeveloper unit owner disclosure prior to sale;
3  voidability.--
4         (2)  NONDEVELOPER DISCLOSURE.--
5         (a)  Each unit owner who is not a developer as defined
6  by this chapter shall comply with the provisions of this
7  subsection prior to the sale of his or her unit.  Each
8  prospective purchaser who has entered into a contract for the
9  purchase of a condominium unit is entitled, at the seller's
10  expense, to a current copy of the declaration of condominium,
11  articles of incorporation of the association, bylaws, and
12  rules of the association, as well as a copy of the question
13  and answer sheet provided for by s. 718.504 and a copy of the
14  financial information required by s. 718.111.
15         (b)  If a person licensed under part I of chapter 475
16  provides to or otherwise obtains for a prospective purchaser
17  the documents described in this subsection, the person is not
18  liable for any error or inaccuracy contained in the documents.
19         (c)  Each contract entered into after July 1, 1992, for
20  the resale of a residential unit shall contain in conspicuous
21  type either:
22         1.  A clause which states:  THE BUYER HEREBY
23 ACKNOWLEDGES THAT BUYER HAS BEEN PROVIDED A CURRENT COPY OF
24  THE DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION OF
25  THE ASSOCIATION, BYLAWS, RULES OF THE ASSOCIATION, AND A COPY
26  OF THE MOST RECENT YEAR-END FINANCIAL INFORMATION AND THE
27  QUESTION AND ANSWER SHEET MORE THAN 3 DAYS, EXCLUDING
28  SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, PRIOR TO EXECUTION OF
29  THIS CONTRACT; or
30         2.  A clause which states:  THIS AGREEMENT IS VOIDABLE
31  BY BUYER BY DELIVERING WRITTEN NOTICE OF THE BUYER'S INTENTION

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1  TO CANCEL WITHIN 3 DAYS, EXCLUDING SATURDAYS, SUNDAYS, AND
2  LEGAL HOLIDAYS, AFTER THE DATE OF EXECUTION OF THIS AGREEMENT
3  BY THE BUYER AND RECEIPT BY BUYER OF A CURRENT COPY OF THE
4  DECLARATION OF CONDOMINIUM, ARTICLES OF INCORPORATION, BYLAWS,
5  AND RULES OF THE ASSOCIATION, AND A COPY OF THE MOST RECENT
6  YEAR-END FINANCIAL INFORMATION AND QUESTION AND ANSWER SHEET
7  IF SO REQUESTED IN WRITING. ANY PURPORTED WAIVER OF THESE
8  VOIDABILITY RIGHTS SHALL BE OF NO EFFECT. BUYER MAY EXTEND THE
9  TIME FOR CLOSING FOR A PERIOD OF NOT MORE THAN 3 DAYS,
10  EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS, AFTER THE
11  BUYER RECEIVES THE DECLARATION, ARTICLES OF INCORPORATION,
12 BYLAWS, AND RULES, AND QUESTION AND ANSWER SHEET IF REQUESTED
13  IN WRITING.  BUYER'S RIGHT TO VOID THIS AGREEMENT SHALL
14  TERMINATE AT CLOSING.
15
16  A contract that does not conform to the requirements of this
17  paragraph is voidable at the option of the purchaser prior to
18  closing.
19         Section 12.  Subsection (15) of section 718.504,
20  Florida Statutes, is amended to read:
21        718.504  Prospectus or offering circular.--Every
22  developer of a residential condominium which contains more
23  than 20 residential units, or which is part of a group of
24  residential condominiums which will be served by property to
25  be used in common by unit owners of more than 20 residential
26  units, shall prepare a prospectus or offering circular and
27  file it with the Division of Florida Land Sales, Condominiums,
28  and Mobile Homes prior to entering into an enforceable
29  contract of purchase and sale of any unit or lease of a unit
30  for more than 5 years and shall furnish a copy of the
31  prospectus or offering circular to each buyer.  In addition to

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1  the prospectus or offering circular, each buyer shall be
2  furnished a separate page entitled "Frequently Asked Questions
3  and Answers," which shall be in accordance with a format
4  approved by the division and a copy of the financial
5  information required by s. 718.111.  This page shall, in
6  readable language, inform prospective purchasers regarding
7  their voting rights and unit use restrictions, including
8  restrictions on the leasing of a unit; shall indicate whether
9  and in what amount the unit owners or the association is
10  obligated to pay rent or land use fees for recreational or
11  other commonly used facilities; shall contain a statement
12  identifying that amount of assessment which, pursuant to the
13  budget, would be levied upon each unit type, exclusive of any
14  special assessments, and which shall further identify the
15  basis upon which assessments are levied, whether monthly,
16  quarterly, or otherwise; shall state and identify any court
17  cases in which the association is currently a party of record
18  in which the association may face liability in excess of
19  $100,000; and which shall further state whether membership in
20  a recreational facilities association is mandatory, and if so,
21  shall identify the fees currently charged per unit type.  The
22  division shall by rule require such other disclosure as in its
23  judgment will assist prospective purchasers. The prospectus or
24  offering circular may include more than one condominium,
25  although not all such units are being offered for sale as of
26  the date of the prospectus or offering circular.  The
27  prospectus or offering circular must contain the following
28  infomation:
29         (15)  If a the condominium created on or after July 1,
30  2000, is or may become part of a multicondominium, the
31  following information must be provided:

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1         (a)  A statement in conspicuous type in substantially
2  the following form:  THIS CONDOMINIUM IS (MAY BE) PART OF A
3 MULTICONDOMINIUM DEVELOPMENT IN WHICH OTHER CONDOMINIUMS WILL
4  (MAY) BE OPERATED BY THE SAME ASSOCIATION. Immediately
5  following this statement, the location in the prospectus or
6  offering circular and its exhibits where the multicondominium
7  aspects of the offering are described must be stated.
8         (b)  A summary of the provisions in the declaration,
9  articles of incorporation, and bylaws which establish and
10  provide for the operation of the multicondominium, including a
11  statement as to whether unit owners in the condominium will
12  have the right to use recreational or other facilities located
13  or planned to be located in other condominiums operated by the
14  same association, and the manner of sharing the common
15  expenses related to such facilities.
16        (c)  A statement of the minimum and maximum number of
17  condominiums, and the minimum and maximum number of units in
18  each of those condominiums, which will or may be operated by
19  the association, and the latest date by which the exact number
20  will be finally determined.
21       (d)  A statement as to whether any of the condominiums
22  in the multicondominium may include units intended to be used
23  for nonresidential purposes and the purpose or purposes
24  permitted for such use.
25       (e)  A general description of the location and
26  approximate acreage of any land on which any additional
27  condominiums to be operated by the association may be located.
28        Section 13.  This act shall take effect July 1, 2002.
29
30
31

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1            *****************************************
2                       LEGISLATIVE SUMMARY
3    Revises provisions relating to: declarations for the
4    creation of a condominium; appurtenances that pass with a
      condominium unit; amendments to a declaration of
5    condominium; financial management of an association;
      bylaws; property operated by a multicondominium
6   association; common expenses; handling allegations of
      irregularity in an election of a director of the board of
7   administration of a condominium; removing the requirement
      for question and answer sheets in closing documents; and
8    the prospectus or offering circular. See bill for details.

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