720.301
Definitions.--As used in ss. 720.301-720.312, the term:
(1)
"Assessment" or "amenity fee" means a sum or sums of money
payable to the association, to the developer or other owner of common areas,
or to recreational facilities and other properties serving the parcels
by the owners of one or more parcels as authorized in the governing documents,
which if not paid by the owner of a parcel, can result in a lien against
the parcel.
(2) "Common
area" means all real property within a community which is owned or
leased by an association or dedicated for use or maintenance by the association
or its members, including, regardless of whether title has been conveyed
to the association:
(a) Real property
the use of which is dedicated to the association or its members by a recorded
plat; or
(b) Real property
committed by a declaration of covenants to be leased or conveyed to the
association.
(3) "Community"
means the real property that is or will be subject to a declaration of
covenants which is recorded in the county where the property is located.
The term "community" includes all real property, including undeveloped
phases, that is or was the subject of a development-of-regional-impact
development order, together with any approved modification thereto.
(4) "Declaration
of covenants," or "declaration," means a recorded written instrument
in the nature of covenants running with the land which subjects the land
comprising the community to the jurisdiction and control of an association
or associations in which the owners of the parcels, or their association
representatives, must be members.
(5) "Developer"
means a person or entity that:
(a) Creates
the community served by the association; or
(b) Succeeds
to the rights and liabilities of the person or entity that created the
community served by the association, provided that such is evidenced in
writing.
(6) "Governing
documents" means:
(a) The recorded
declaration of covenants for a community, and all duly adopted and recorded
amendments, supplements, and recorded exhibits thereto; and
(b) The articles
of incorporation and bylaws of the homeowners' association, and any duly
adopted amendments thereto.
(7) "Homeowners'
association" or "association" means a Florida corporation responsible
for the operation of a community or a mobile home subdivision in which
the voting membership is made up of parcel owners or their agents, or a
combination thereof, and in which membership is a mandatory condition of
parcel ownership, and which is authorized to impose assessments that, if
unpaid, may become a lien on the parcel. The term "homeowners' association"
does not include a community development district or other similar special
taxing district created pursuant to statute.
(8) "Member"
means a member of an association, and may include, but is not limited to,
a parcel owner or an association representing parcel owners or a combination
thereof.
(9) "Parcel"
means a platted or unplatted lot, tract, unit, or other subdivision of
real property within a community, as described in the declaration:
(a) Which is
capable of separate conveyance; and
(b) Of which
the parcel owner, or an association in which the parcel owner must be a
member, is obligated:
1. By the governing
documents to be a member of an association that serves the community; and
2. To pay to
the homeowners' association assessments that, if not paid, may result in
a lien.
(10) "Parcel
owner" means the record owner of legal title to a parcel.
(11) "Voting
interest" means the voting rights distributed to the members of the
homeowners' association, pursuant to the governing documents.
History.--s. 33, ch.
92-49; s. 52, ch. 95-274; s. 4, ch. 99-382; s. 44, ch. 2000-258.
Note.--Former s.
617.301.
720.302
Homeowners' associations; purposes, scope, and application.--
(1)
The purposes of ss. 720.301-720.312 are to give statutory recognition to
corporations that operate residential communities in this state, to provide
procedures for operating homeowners' associations, and to protect the rights
of association members without unduly impairing the ability of such associations
to perform their functions.
(2) The Legislature
recognizes that it is not in the best interest of homeowners' associations
or the individual association members thereof to create or impose a bureau
or other agency of state government to regulate the affairs of homeowners'
associations. Further, the Legislature recognizes that certain contract
rights have been created for the benefit of homeowners' associations and
members thereof before the effective date of this act and that ss. 720.301-720.312
are not intended to impair such contract rights, including, but not limited
to, the rights of the developer to complete the community as initially
contemplated.
(3) Sections
720.301-720.312 do not apply to:
(a) A community
that is composed of property primarily intended for commercial, industrial,
or other nonresidential use; or
(b) The commercial
or industrial parcels in a community that contains both residential parcels
and parcels intended for commercial or industrial use.
(4) Sections
720.301-720.312 do not apply to any association that is subject to regulation
under chapter 718, chapter 719, or chapter 721; or to any nonmandatory
association formed under chapter 723.
History.--s.
34, ch. 92-49; s. 53, ch. 95-274; s. 45, ch. 2000-258.
Note.--Former s.
617.302.
720.303
Association powers and duties; meetings of board; official records; budgets;
financial reporting.--
(1)
POWERS AND DUTIES.--An association which operates a community as defined
in s. 720.301, must be operated by an association that is a Florida corporation.
After October 1, 1995, the association must be incorporated and the initial
governing documents must be recorded in the official records of the county
in which the community is located. An association may operate more than
one community. The officers and directors of an association have a fiduciary
relationship to the members who are served by the association. The powers
and duties of an association include those set forth in this chapter and,
except as expressly limited or restricted in this chapter, those set forth
in the governing documents. After control of the association is obtained
by unit owners other than the developer, the association may institute,
maintain, settle, or appeal actions or hearings in its name on behalf of
all members concerning matters of common interest to the members, including,
but not limited to, the common areas; roof or structural components of
a building, or other improvements for which the association is responsible;
mechanical, electrical, or plumbing elements serving an improvement or
building for which the association is responsible; representations of the
developer pertaining to any existing or proposed commonly used facility;
and protesting ad valorem taxes on commonly used facilities. The association
may defend actions in eminent domain or bring inverse condemnation actions.
Before commencing litigation against any party in the name of the association
involving amounts in controversy in excess of $100,000, the association
must obtain the affirmative approval of a majority of the voting interests
at a meeting of the membership at which a quorum has been attained. This
subsection does not limit any statutory or common-law right of any individual
member or class of members to bring any action without participation by
the association. A member does not have authority to act for the association
by virtue of being a member. An association may have more than one class
of members and may issue membership certificates.
(2) BOARD MEETINGS.--A
meeting of the board of directors of an association occurs whenever a quorum
of the board gathers to conduct association business. All meetings of the
board must be open to all members except for meetings between the board
and its attorney with respect to proposed or pending litigation where the
contents of the discussion would otherwise be governed by the attorney-client
privilege. Notices of all board meetings must be posted in a conspicuous
place in the community at least 48 hours in advance of a meeting, except
in an emergency. In the alternative, if notice is not posted in a conspicuous
place in the community, notice of each board meeting must be mailed or
delivered to each member at least 7 days before the meeting, except in
an emergency. Notwithstanding this general notice requirement, for communities
with more than 100 members, the bylaws may provide for a reasonable alternative
to posting or mailing of notice for each board meeting, including publication
of notice, provision of a schedule of board meetings, or the conspicuous
posting and repeated broadcasting of the notice on a closed-circuit cable
television system serving the homeowners' association. However, if broadcast
notice is used in lieu of a notice posted physically in the community,
the notice must be broadcast at least four times every broadcast hour of
each day that a posted notice is otherwise required. When broadcast notice
is provided, the notice and agenda must be broadcast in a manner and for
a sufficient continuous length of time so as to allow an average reader
to observe the notice and read and comprehend the entire content of the
notice and the agenda. The bylaws or amended bylaws may provide for giving
notice by electronic transmission in a manner authorized by law for meetings
of the board of directors, committee meetings requiring notice under this
section, and annual and special meetings of the members; however, a member
must consent in writing to receiving notice by electronic transmission.
An assessment may not be levied at a board meeting unless the notice of
the meeting includes a statement that assessments will be considered and
the nature of the assessments. Directors may not vote by proxy or by secret
ballot at board meetings, except that secret ballots may be used in the
election of officers. This subsection also applies to the meetings of any
committee or other similar body, when a final decision will be made regarding
the expenditure of association funds, and to any body vested with the power
to approve or disapprove architectural decisions with respect to a specific
parcel of residential property owned by a member of the community.
(3) MINUTES.--Minutes
of all meetings of the members of an association and of the board of directors
of an association must be maintained in written form or in another form
that can be converted into written form within a reasonable time. A vote
or abstention from voting on each matter voted upon for each director present
at a board meeting must be recorded in the minutes.
(4) OFFICIAL
RECORDS.--The association shall maintain each of the following items, when
applicable, which constitute the official records of the association:
(a) Copies
of any plans, specifications, permits, and warranties related to improvements
constructed on the common areas or other property that the association
is obligated to maintain, repair, or replace.
(b) A copy
of the bylaws of the association and of each amendment to the bylaws.
(c) A copy
of the articles of incorporation of the association and of each amendment
thereto.
(d) A copy
of the declaration of covenants and a copy of each amendment thereto.
(e) A copy
of the current rules of the homeowners' association.
(f) The minutes
of all meetings of the board of directors and of the members, which minutes
must be retained for at least 7 years.
(g) A current
roster of all members and their mailing addresses and parcel identifications.
(h) All of
the association's insurance policies or a copy thereof, which policies
must be retained for at least 7 years.
(i) A current
copy of all contracts to which the association is a party, including, without
limitation, any management agreement, lease, or other contract under which
the association has any obligation or responsibility. Bids received by
the association for work to be performed must also be considered official
records and must be kept for a period of 1 year.
(j) The financial
and accounting records of the association, kept according to good accounting
practices. All financial and accounting records must be maintained for
a period of at least 7 years. The financial and accounting records must
include:
1. Accurate,
itemized, and detailed records of all receipts and expenditures.
2. A current
account and a periodic statement of the account for each member, designating
the name and current address of each member who is obligated to pay assessments,
the due date and amount of each assessment or other charge against the
member, the date and amount of each payment on the account, and the balance
due.
3. All tax
returns, financial statements, and financial reports of the association.
4. Any other
records that identify, measure, record, or communicate financial information.
(5) INSPECTION
AND COPYING OF RECORDS.--The official records shall be maintained within
the state and must be open to inspection and available for photocopying
by members or their authorized agents at reasonable times and places within
10 business days after receipt of a written request for access. This subsection
may be complied with by having a copy of the official records available
for inspection or copying in the community.
(a) The failure
of an association to provide access to the records within 10 business days
after receipt of a written request creates a rebuttable presumption that
the association willfully failed to comply with this subsection.
(b) A member
who is denied access to official records is entitled to the actual damages
or minimum damages for the association's willful failure to comply with
this subsection. The minimum damages are to be $50 per calendar day up
to 10 days, the calculation to begin on the 11th business day after receipt
of the written request.
(c) The association
may adopt reasonable written rules governing the frequency, time, location,
notice, and manner of inspections, and may impose fees to cover the costs
of providing copies of the official records, including, without limitation,
the costs of copying. The association shall maintain an adequate number
of copies of the recorded governing documents, to ensure their availability
to members and prospective members, and may charge only its actual costs
for reproducing and furnishing these documents to those persons who are
entitled to receive them.
(6) BUDGETS.--The
association shall prepare an annual budget. The budget must reflect the
estimated revenues and expenses for that year and the estimated surplus
or deficit as of the end of the current year. The budget must set out separately
all fees or charges for recreational amenities, whether owned by the association,
the developer, or another person. The association shall provide each member
with a copy of the annual budget or a written notice that a copy of the
budget is available upon request at no charge to the member. The copy must
be provided to the member within the time limits set forth in subsection
(5).
(7) FINANCIAL
REPORTING.--The association shall prepare an annual financial report within
60 days after the close of the fiscal year. The association shall, within
the time limits set forth in subsection (5), provide each member with a
copy of the annual financial report or a written notice that a copy of
the financial report is available upon request at no charge to the member.
The financial report must consist of either:
(a) Financial
statements presented in conformity with generally accepted accounting principles;
or
(b) A financial
report of actual receipts and expenditures, cash basis, which report must
show:
1. The amount
of receipts and expenditures by classification; and
2. The beginning
and ending cash balances of the association.
(8) ASSOCIATION
FUNDS; COMMINGLING.--
(a) All association
funds held by a developer shall be maintained separately in the association's
name. Reserve and operating funds of the association shall not be commingled
prior to turnover except the association may jointly invest reserve funds;
however, such jointly invested funds must be accounted for separately.
(b) No developer
in control of a homeowners' association shall commingle any association
funds with his or her funds or with the funds of any other homeowners'
association or community association.
(9) APPLICABILITY.--Sections
617.1601-617.1604 do not apply to a homeowners' association in which the
members have the inspection and copying rights set forth in this section.
History.--s. 35,
ch. 92-49; s. 54, ch. 95-274; s. 1, ch. 97-311; s. 1, ch. 98-261; s. 46,
ch. 2000-258.
720.304
Homeowners' associations; right of owners to peaceably assemble; display
of flag.--
(1)
All common areas and recreational facilities serving any homeowners' association
shall be available to parcel owners in the homeowners' association served
thereby and their invited guests for the use intended for such common areas
and recreational facilities. The entity or entities responsible for the
operation of the common areas and recreational facilities may adopt reasonable
rules and regulations pertaining to the use of such common areas and recreational
facilities. No entity or entities shall unreasonably restrict any parcel
owner's right to peaceably assemble or right to invite public officers
or candidates for public office to appear and speak in common areas and
recreational facilities.
(2) Any homeowner
may display one portable, removable United States flag in a respectful
manner, regardless of any declaration rules or requirements dealing with
flags or decorations.
(3) Any owner
prevented from exercising rights guaranteed by subsection (1) or subsection
(2) may bring an action in the appropriate court of the county in which
the alleged infringement occurred, and, upon favorable adjudication, the
court shall enjoin the enforcement of any provision contained in any homeowners'
association document or rule that operates to deprive the owner of such
rights.
History.--s. 36,
ch. 92-49; s. 51, ch. 2000-258; s. 1, ch. 2002-50.
1Note.--Section 3,
ch. 2002-50, provides that "[t]his act applies retroactively regardless
of any declaration rules or requirements of a homeowners' association dealing
with flags or decorations."
Note.--Former s.
617.304.
720.305
Obligations of members; remedies at law or in equity; levy of fines and
suspension of use rights; failure to fill sufficient number of vacancies
on board of directors to constitute a quorum; appointment of receiver upon
petition of any member.--
(1)
Each member and the member's tenants, guests, and invitees, and each association,
are governed by, and must comply with, this chapter, the governing documents
of the community, and the rules of the association. Actions at law or in
equity, or both, to redress alleged failure or refusal to comply with these
provisions may be brought by the association or by any member against:
(a) The association;
(b) A member;
(c) Any director
or officer of an association who willfully and knowingly fails to comply
with these provisions; and
(d) Any tenants,
guests, or invitees occupying a parcel or using the common areas.
The prevailing party
in any such litigation is entitled to recover reasonable attorney's fees
and costs. This section does not deprive any person of any other available
right or remedy.
(2) If the
governing documents so provide, an association may suspend, for a reasonable
period of time, the rights of a member or a member's tenants, guests, or
invitees, or both, to use common areas and facilities and may levy reasonable
fines, not to exceed $100 per violation, against any member or any tenant,
guest, or invitee. A fine may be levied on the basis of each day of a continuing
violation, with a single notice and opportunity for hearing, except that
no such fine shall exceed $1,000 in the aggregate unless otherwise provided
in the governing documents.
(a) A fine
or suspension may not be imposed without notice of at least 14 days to
the person sought to be fined or suspended and an opportunity for a hearing
before a committee of at least three members appointed by the board who
are not officers, directors, or employees of the association, or the spouse,
parent, child, brother, or sister of an officer, director, or employee.
If the committee, by majority vote, does not approve a proposed fine or
suspension, it may not be imposed.
(b) The requirements
of this subsection do not apply to the imposition of suspensions or fines
upon any member because of the failure of the member to pay assessments
or other charges when due if such action is authorized by the governing
documents.
(c) Suspension
of common-area-use rights shall not impair the right of an owner or tenant
of a parcel to have vehicular and pedestrian ingress to and egress from
the parcel, including, but not limited to, the right to park.
(3) If the
governing documents so provide, an association may suspend the voting rights
of a member for the nonpayment of regular annual assessments that are delinquent
in excess of 90 days.
(4) If an association
fails to fill vacancies on the board of directors sufficient to constitute
a quorum in accordance with the bylaws, any member may apply to the circuit
court that has jurisdiction over the community served by the association
for the appointment of a receiver to manage the affairs of the association.
At least 30 days before applying to the circuit court, the member shall
mail to the association, by certified or registered mail, and post, in
a conspicuous place on the property of the community served by the association,
a notice describing the intended action, giving the association 30 days
to fill the vacancies. If during such time the association fails to fill
a sufficient number of vacancies so that a quorum can be assembled, the
member may proceed with the petition. If a receiver is appointed, the homeowners'
association shall be responsible for the salary of the receiver, court
costs, attorney's fees, and all other expenses of the receivership. The
receiver has all the powers and duties of a duly constituted board of directors
and shall serve until the association fills a sufficient number of vacancies
on the board so that a quorum can be assembled.
History.--s. 37,
ch. 92-49; s. 55, ch. 95-274; s. 2, ch. 97-311; s. 51, ch. 2000-258.
Note.--Former s.
617.305.
720.306
Meetings of members; voting and election procedures; amendments.--
(1)
QUORUM; AMENDMENTS.--
(a) Unless
a lower number is provided in the bylaws, the percentage of voting interests
required to constitute a quorum at a meeting of the members shall be 30
percent of the total voting interests. Unless otherwise provided in this
chapter or in the articles of incorporation or bylaws, decisions that require
a vote of the members must be made by the concurrence of at least a majority
of the voting interests present, in person or by proxy, at a meeting at
which a quorum has been attained.
(b) Unless
otherwise provided in the governing documents or required by law, and other
than those matters set forth in paragraph (c), any governing document of
an association may be amended by the affirmative vote of two-thirds of
the voting interests of the association.
(c) Unless
otherwise provided in the governing documents as originally recorded, an
amendment may not affect vested rights unless the record owner of the affected
parcel and all record owners of liens on the affected parcels join in the
execution of the amendment.
(2) ANNUAL
MEETING.--The association shall hold a meeting of its members annually
for the transaction of any and all proper business at a time, date, and
place stated in, or fixed in accordance with, the bylaws. The election
of directors, if one is required to be held, must be held at, or in conjunction
with, the annual meeting or as provided in the governing documents.
(3) SPECIAL
MEETINGS.--Special meetings must be held when called by the board of directors
or, unless a different percentage is stated in the governing documents,
by at least 10 percent of the total voting interests of the association.
Business conducted at a special meeting is limited to the purposes described
in the notice of the meeting.
(4) CONTENT
OF NOTICE.--Unless law or the governing documents require otherwise, notice
of an annual meeting need not include a description of the purpose or purposes
for which the meeting is called. Notice of a special meeting must include
a description of the purpose or purposes for which the meeting is called.
(5) ADJOURNMENT.--Unless
the bylaws require otherwise, adjournment of an annual or special meeting
to a different date, time, or place must be announced at that meeting before
an adjournment is taken, or notice must be given of the new date, time,
or place pursuant to s. 720.303(2). Any business that might have been transacted
on the original date of the meeting may be transacted at the adjourned
meeting. If a new record date for the adjourned meeting is or must be fixed
under 1s. 617.0707, notice of the adjourned meeting must be given to persons
who are entitled to vote and are members as of the new record date but
were not members as of the previous record date.
(6) PROXY VOTING.--The
members have the right, unless otherwise provided in this subsection or
in the governing documents, to vote in person or by proxy. To be valid,
a proxy must be dated, must state the date, time, and place of the meeting
for which it was given, and must be signed by the authorized person who
executed the proxy. A proxy is effective only for the specific meeting
for which it was originally given, as the meeting may lawfully be adjourned
and reconvened from time to time, and automatically expires 90 days after
the date of the meeting for which it was originally given. A proxy is revocable
at any time at the pleasure of the person who executes it. If the proxy
form expressly so provides, any proxy holder may appoint, in writing, a
substitute to act in his or her place.
(7) ELECTIONS.--Elections
of directors must be conducted in accordance with the procedures set forth
in the governing documents of the association. All members of the association
shall be eligible to serve on the board of directors, and a member may
nominate himself or herself as a candidate for the board at a meeting where
the election is to be held. Except as otherwise provided in the governing
documents, boards of directors must be elected by a plurality of the votes
cast by eligible voters.
(8) RECORDING.--Any
parcel owner may tape record or videotape meetings of the board of directors
and meetings of the members. The board of directors of the association
may adopt reasonable rules governing the taping of meetings of the board
and the membership.
History.--s. 38,
ch. 92-49; s. 56, ch. 95-274; s. 4, ch. 96-343; s. 1718, ch. 97-102; s.
47, ch. 2000-258.
1Note.--Section
617.0707 does not exist.
720.307
Transition of association control in a community.--With respect to homeowners'
associations:
(1)
Members other than the developer are entitled to elect at least a majority
of the members of the board of directors of the homeowners' association
when the earlier of the following events occurs:
(a) Three months
after 90 percent of the parcels in all phases of the community that will
ultimately be operated by the homeowners' association have been conveyed
to members; or
(b) Such other
percentage of the parcels has been conveyed to members, or such other date
or event has occurred, as is set forth in the governing documents in order
to comply with the requirements of any governmentally chartered entity
with regard to the mortgage financing of parcels.
For purposes of this
section, the term "members other than the developer" shall not include
builders, contractors, or others who purchase a parcel for the purpose
of constructing improvements thereon for resale.
(2) The developer
is entitled to elect at least one member of the board of directors of the
homeowners' association as long as the developer holds for sale in the
ordinary course of business at least 5 percent of the parcels in all phases
of the community. After the developer relinquishes control of the homeowners'
association, the developer may exercise the right to vote any developer-owned
voting interests in the same manner as any other member, except for purposes
of reacquiring control of the homeowners' association or selecting the
majority of the members of the board of directors.
(3) At the
time the members are entitled to elect at least a majority of the board
of directors of the homeowners' association, the developer shall, at the
developer's expense, within no more than 90 days deliver the following
documents to the board:
(a) All deeds
to common property owned by the association.
(b) The original
of the association's declarations of covenants and restrictions.
(c) A certified
copy of the articles of incorporation of the association.
(d) A copy
of the bylaws.
(e) The minute
books, including all minutes.
(f) The books
and records of the association.
(g) Policies,
rules, and regulations, if any, which have been adopted.
(h) Resignations
of directors who are required to resign because the developer is required
to relinquish control of the association.
(i) The financial
records of the association from the date of incorporation through the date
of turnover.
(j) All association
funds and control thereof.
(k) All tangible
property of the association.
(l) A copy
of all contracts which may be in force with the association as one of the
parties.
(m) A list
of the names and addresses and telephone numbers of all contractors, subcontractors,
or others in the current employ of the association.
(n) Any and
all insurance policies in effect.
(o) Any permits
issued to the association by governmental entities.
(p) Any and
all warranties in effect.
(q) A roster
of current homeowners and their addresses and telephone numbers and section
and lot numbers.
(r) Employment
and service contracts in effect.
(s) All other
contracts in effect to which the association is a party.
(4) This section
does not apply to a homeowners' association in existence on the effective
date of this act, or to a homeowners' association, no matter when created,
if such association is created in a community that is included in an effective
development-of-regional-impact development order as of the effective date
of this act, together with any approved modifications thereof.
History.--s. 57,
ch. 95-274; s. 2, ch. 98-261; s. 48, ch. 2000-258.
Note.--Former s.
617.307.
720.3075
Prohibited clauses in homeowners' association documents.--
(1)
It is declared that the public policy of this state prohibits the inclusion
or enforcement of certain types of clauses in homeowners' association documents,
including declaration of covenants, articles of incorporation, bylaws,
or any other document of the association which binds members of the association,
which either have the effect of or provide that:
(a) A developer
has the unilateral ability and right to make changes to the homeowners'
association documents after the transition of homeowners' association control
in a community from the developer to the nondeveloper members, as set forth
in s. 720.307, has occurred.
(b) A homeowners'
association is prohibited or restricted from filing a lawsuit against the
developer, or the homeowners' association is otherwise effectively prohibited
or restricted from bringing a lawsuit against the developer.
(c) After the
transition of homeowners' association control in a community from the developer
to the nondeveloper members, as set forth in s. 720.307, has occurred,
a developer is entitled to cast votes in an amount that exceeds one vote
per residential lot.
Such clauses are
declared null and void as against the public policy of this state.
(2) The public
policy described in subsection (1) prohibits the inclusion or enforcement
of such clauses created on or after the effective date of s. 3, chapter
98-261, Laws of Florida.
1(3) Homeowners'
association documents, including declarations of covenants, articles of
incorporation, or bylaws, may not preclude the display of one portable,
removable United States flag by property owners. However, the flag must
be displayed in a respectful manner, consistent with Title 36 U.S.C. chapter
10.
(4) Homeowners'
association documents, including declarations of covenants, articles of
incorporation, or bylaws, entered after October 1, 2001, may not prohibit
any property owner from implementing Xeriscape or Florida-friendly landscape,
as defined in s. 373.185(1), on his or her land.
History.--s. 3, ch.
98-261; s. 49, ch. 2000-258; s. 47, ch. 2000-302; s. 8, ch. 2001-252; s.
2, ch. 2002-50.
1Note.--Section 3,
ch. 2002-50, provides that "[t]his act applies retroactively regardless
of any declaration rules or requirements of a homeowners' association dealing
with flags or decorations."
Note.--Former s.
617.3075.
720.308
Assessments and charges.--
For any
community created after October 1, 1995, the governing documents must describe
the manner in which expenses are shared and specify the member's proportional
share thereof. Assessments levied pursuant to the annual budget or special
assessment must be in the member's proportional share of expenses as described
in the governing document, which share may be different among classes of
parcels based upon the state of development thereof, levels of services
received by the applicable members, or other relevant factors. While the
developer is in control of the homeowners' association, it may be excused
from payment of its share of the operating expenses and assessments related
to its parcels for any period of time for which the developer has, in the
declaration, obligated itself to pay any operating expenses incurred that
exceed the assessments receivable from other members and other income of
the association. This section does not apply to an association, no matter
when created, if the association is created in a community that is included
in an effective development-of-regional-impact development order as of
the effective date of this act, together with any approved modifications
thereto.
History.--s. 58,
ch. 95-274; s. 51, ch. 2000-258.
Note.--Former s.
617.308.
720.309
Agreements entered into by the association
Any grant
or reservation made by any document, and any contract with a term in excess
of 10 years made by an association before control of the association is
turned over to the members other than the developer, which provide for
operation, maintenance, or management of the association or common areas
must be fair and reasonable.
History.--s. 59,
ch. 95-274; s. 51, ch. 2000-258.
Note.--Former s.
617.309.
720.31
Recreational leaseholds; right to acquire; escalation clauses
(1)
Any lease of recreational or other commonly used facilities serving a community,
which lease is entered into by the association or its members before control
of the homeowners' association is turned over to the members other than
the developer, must provide as follows:
(a) That the
facilities may not be offered for sale unless the homeowners' association
has the option to purchase the facilities, provided the homeowners' association
meets the price and terms and conditions of the facility owner by executing
a contract with the facility owner within 90 days, unless agreed to otherwise,
from the date of mailing of the notice by the facility owner to the homeowners'
association. If the facility owner offers the facilities for sale, he or
she shall notify the homeowners' association in writing stating the price
and the terms and conditions of sale.
(b) If a contract
between the facility owner and the association is not executed within such
90-day period, unless extended by mutual agreement, then, unless the facility
owner thereafter elects to offer the facilities at a price lower than the
price specified in his or her notice to the homeowners' association, he
or she has no further obligations under this subsection, and his or her
only obligation shall be as set forth in subsection (2).
(c) If the
facility owner thereafter elects to offer the facilities at a price lower
than the price specified in his or her notice to the homeowners' association,
the homeowners' association will have an additional 10 days to meet the
price and terms and condition of the facility owner by executing a contract.
(2) If a facility
owner receives a bona fide offer to purchase the facilities that he or
she intends to consider or make a counteroffer to, his or her only obligations
shall be to notify the homeowners' association that he or she has received
an offer, to disclose the price and material terms and conditions upon
which he or she would consider selling the facilities, and to consider
any offer made by the homeowners' association. The facility owner shall
be under no obligation to sell to the homeowners' association or to interrupt
or delay other negotiations, and he or she shall be free at any time to
execute a contract for the sale of the facilities to a party or parties
other than the homeowners' association.
(3)(a) As used
in subsections (1) and (2), the term "notify" means the placing of a notice
in the United States mail addressed to the president of the homeowners'
association. Each such notice shall be deemed to have been given upon the
deposit of the notice in the United States mail.
(b) As used
in subsection (1), the term "offer" means any solicitation by the facility
owner directed to the general public.
(4) This section
does not apply to:
(a) Any sale
or transfer to a person who would be included within the table of descent
and distribution if the facility owner were to die intestate.
(b) Any transfer
by gift, devise, or operation of law.
(c) Any transfer
by a corporation to an affiliate. As used herein, the term "affiliate"
means any shareholder of the transferring corporation; any corporation
or entity owned or controlled, directly or indirectly, by the transferring
corporation; or any other corporation or entity owned or controlled, directly
or indirectly, by any shareholder of the transferring corporation.
(d) Any transfer
to a governmental or quasi-governmental entity.
(e) Any conveyance
of an interest in the facilities incidental to the financing of such facilities.
(f) Any conveyance
resulting from the foreclosure of a mortgage, deed of trust, or other instrument
encumbering the facilities or any deed given in lieu of such foreclosure.
(g) Any sale
or transfer between or among joint tenants in common owning the facilities.
(h) The purchase
of the facilities by a governmental entity under its powers of eminent
domain.
(5)(a) The
Legislature declares that the public policy of this state prohibits the
inclusion or enforcement of escalation clauses in land leases or other
leases for recreational facilities, land, or other commonly used facilities
that serve residential communities, and such clauses are hereby declared
void. For purposes of this section, an escalation clause is any clause
in a lease which provides that the rental rate under the lease or agreement
is to increase at the same percentage rate as any nationally recognized
and conveniently available commodity or consumer price index.
(b) This public
policy prohibits the inclusion of such escalation clauses in leases entered
into after the effective date of this amendment.
(c) This section
is inapplicable:
1. If the lessor
is the Federal Government, this state, any political subdivision of this
state, or any agency of a political subdivision of this state; or
2. To a homeowners'
association that is in existence on the effective date of this act, or
to an association, no matter when created, if the association is created
in a community that is included in an effective development-of-regional-impact
development order as of the effective date of this act, together with any
approved modifications thereto.
History.--s. 60,
ch. 95-274; s. 107, ch. 97-102; s. 51, ch. 2000-258.
Note.--Former s.
617.31.
720.311
Dispute resolution
The Legislature
finds that alternative dispute resolution has made progress in reducing
court dockets and trials and in offering a more efficient, cost-effective
option to litigation. At any time after the filing in a court of competent
jurisdiction of a complaint relating to a dispute under ss. 720.301-720.312,
the court may order that the parties enter mediation or arbitration procedures.
History.--s. 61,
ch. 95-274; s. 50, ch. 2000-258.
Note.--Former s.
617.311.
720.312
Declaration of covenants; survival after tax deed or foreclosure
All provisions
of a declaration of covenants relating to a parcel that has been sold for
taxes or special assessments survive and are enforceable after the issuance
of a tax deed or master's deed, or upon the foreclosure of an assessment,
a certificate or lien, a tax deed, tax certificate, or tax lien, to the
same extent that they would be enforceable against a voluntary grantee
of title to the parcel immediately before the delivery of the tax deed
or master's deed or immediately before the foreclosure.
History.--s. 62,
ch. 95-274; s. 51, ch. 2000-258.
Note.--Former s.
617.312.
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