29-402-02

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15  rescinded, vacated, and set aside; the word "mortgage" shall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  information:

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.

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1            *****************************************

2                          SENATE SUMMARY

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

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