Florida Senate - 2001        (NP)                      SB 2298

    By Senator Cowin

   11-12E-01

  1                      A bill to be entitled

  2         An act relating to Marion County; requiring a

  3         disclosure summary to prospective purchasers of

  4         property in a subdivision that requires

  5         membership in a homeowners' association;

  6         providing for audits of certain homeowners'

  7         associations; authorizing the creation of a

  8         homeowners' grievance board to mediate

  9         complaints from homeowners; authorizing the

10         county to provide monetary penalties and the

11         revocation or suspension of business permits or

12         occupational licenses; providing for the

13         disclosure of maintenance and amenity fees in a

14         complete financial report by the developer;

15         providing for methods of distribution of

16         financial reports; providing exceptions;

17         providing for severability; providing an

18         effective date.

19

20  Be It Enacted by the Legislature of the State of Florida:

21

22         Section 1.  Public Interest.--It is declared to be in

23  the public interest of the state that, in order to safeguard

24  the life, health, property, and public welfare of homeowners

25  and prospective homeowners in Marion County, developers and

26  homeowners' associations in Marion County are subject to the

27  requirements of this act in addition to what may otherwise be

28  required by general law.

29         Section 2.  Disclosure.--

30         (1)  A prospective parcel owner in a residential

31  subdivision in Marion County in which owners are required to

  1  be members of a homeowners' association must be presented a

  2  written disclosure summary at least 7 days before executing

  3  the contract for sale. The disclosure summary must be in a

  4  form substantially similar to the following form:

  5

  6                        DISCLOSURE SUMMARY

  7                               FOR

  8                      (NAME OF SUBDIVISION)

  9

10         1.  AS A PURCHASER OF PROPERTY IN THIS SUBDIVISION, YOU

11  WILL BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.

12         2. THIS SUBDIVISION'S HOMEOWNERS' ASSOCIATION (IS) (IS

13  NOT) UNDER THE CONTROL OF THE DEVELOPER.

14         3.  THERE HAVE BEEN OR WILL BE RECORDED DEED

15  RESTRICTIONS AND COVENANTS GOVERNING THE USE AND OCCUPANCY OF

16  PROPERTIES IN THIS SUBDIVISION.

17         4.  YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE

18  DEVELOPER OR ASSOCIATION, WHICH ASSESSMENTS ARE SUBJECT TO

19  PERIODIC CHANGE.

20         5.  YOUR FAILURE TO PAY THESE ASSESSMENTS COULD RESULT

21  IN A LIEN ON YOUR PROPERTY.

22         6.  THERE (IS) (IS NOT) AN OBLIGATION TO PAY AMENITIES

23  OR MAINTENANCE FEES FOR RECREATIONAL OR OTHER COMMONLY USED

24  FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS'

25  ASSOCIATION.  (If such obligation exists, then the amount of

26  the current obligation shall be set forth.)

27         7.  THE RESTRICTIVE COVENANTS (CAN) (CANNOT) BE AMENDED

28  WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP.

29         8.  A CERTIFIED PLAT OF THE PLANNED DEVELOPMENT IS ON

30  FILE WITH THE COUNTY DENOTING ALL PHASES OF THE COMMUNITY,

31  INCLUDING ALL ROADS, FACILITIES, DRAINAGE AREAS, PARKS,

  1  SIDEWALKS, ETC. A COPY OF THE CERTIFIED PLAT IS ALSO AVAILABLE

  2  FOR VIEWING AT THE DEVELOPER'S OR OWNER'S SALES OFFICE.

  3         9.  THERE (IS) (IS NOT) A COMMUNITY DEBT FOR WHICH THE

  4  HOMEOWNERS (ARE) (WILL BE) RESPONSIBLE.

  5         10.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM

  6  ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER,

  7  YOU SHOULD REFER TO THE DEED RESTRICTIONS AND COVENANTS AND

  8  THE ASSOCIATION GOVERNING DOCUMENTS.

  9         11.  THESE DOCUMENTS ARE MATTERS OF PUBLIC RECORD AND

10  CAN BE OBTAINED FROM THE RECORD OFFICE IN MARION COUNTY.

11  PURCHASER:                                 DATE:              

12  PURCHASER:                                 DATE:              

13  DEVELOPER/SELLER:                          DATE:              

14

15  The disclosure must be supplied by the developer or by the

16  parcel owner if the sale is by an owner that is not the

17  developer.  Any contract or agreement for sale shall refer to

18  and incorporate the disclosure summary and shall include a

19  statement that the potential buyer should not execute the

20  contract or agreement until he or she has received and read

21  the disclosure summary required by this section. The latest

22  deed restrictions and covenants must also be included with the

23  disclosure summary. A prospective purchaser who has received

24  the required disclosure at least 1 day before executing a

25  contract or agreement for sale may waive the 7-day requirement

26  by executing an acknowledgment that the prospective purchaser

27  understands that the purchaser is entitled to a 7-day advance

28  notice period but that the purchaser nevertheless desires to

29  waive such period and execute a contract or agreement for

30  sale.

31

  1         (2)  Any homeowners' association that collects more

  2  than $10,000 in amenity or maintenance fees or any other type

  3  of fees shall cause an annual audit to be conducted of its

  4  accounts. The homeowners' association and all property owners

  5  who are required to become members of the association must be

  6  given copies of the audit each year. The audit must be

  7  completed within a reasonable time but not later than 120 days

  8  after the close of the fiscal year.

  9         (3)  This section does not apply to any association

10  regulated under chapter 718, chapter 719, chapter 721, or

11  chapter 723, Florida Statutes, or to a subdivider registered

12  under chapter 498, Florida Statutes; it also does not apply if

13  disclosure regarding the association is otherwise made in

14  connection with the requirements of chapter 718, chapter 719,

15  chapter 721, or chapter 723, Florida Statutes.

16         Section 3.  Financial reporting.--(1)  In a residential

17  subdivision in Marion County in which the owners of lots or

18  parcels must pay, together with all other property owners,

19  their pro-rata share (which share is calculated periodically

20  based upon the historical or projected actual expense) of the

21  actual expense of maintaining the common areas, recreational

22  facilities, and other properties serving the lots or parcels,

23  the developer or owner of such areas, facilities, or

24  properties shall make public, within 60 days following the end

25  of each fiscal year, a complete financial report as follows:

26         (a)  The financial report must denote the beginning

27  month/day/year and ending month/day/year for the applicable

28  fiscal year.

29         (b)  The developer or owner shall list the specific

30  amenities or maintenance items of the subdivision for which

31  amenity or maintenance fees have been imposed. The amenities

  1  or maintenance items shall be listed in sufficient detail to

  2  clearly denote each amenity or maintenance item that may incur

  3  expenses to be paid from the homeowners' amenity or

  4  maintenance fees.

  5         (c)  The developer or owner shall report the actual,

  6  total receipts of maintenance fees, amenity fees, and the

  7  grand total of all fees received by it. The developer or owner

  8  shall also report an itemized listing of the expenditures made

  9  against specific amenities, maintenance items, and the grand

10  total of all expenditures made by it from those fees for that

11  year.

12         (d)  The developer or owner shall certify that the

13  financial report is an accurate and factual representation of

14  the amount of amenity or maintenance fees collected and

15  expended during that year and shall sign and date that

16  certification.

17         (2)  The certified financial report shall be completed

18  within 60 days after the end of the fiscal year. Within 3 days

19  after completion, the financial report shall be made public by

20  mailing it to each lot or parcel owner in the subdivision and

21  by posting it in prominent locations in the subdivision for at

22  least a 30-day period.

23         (3)  An annual audit of the developer's financial

24  report shall be performed by an independent certified

25  accountant. The developer or owner shall attest by his or her

26  signature that the documents and financial data provided to

27  the auditor represent all records pertaining to the collection

28  and expenditure of amenity or maintenance fees. The audit

29  shall be completed and shall be posted beside the financial

30  report within 30 days after completion of the financial report

31  and shall be made available for copying by homeowners.

  1         (4)  This section does not apply to amounts paid to

  2  homeowner associations pursuant to chapter 617, chapter 718,

  3  chapter 719, chapter 721, or chapter 723, Florida Statutes, or

  4  to amounts paid to local governmental entities, including

  5  special districts.

  6         Section 4.  Oversight.--(1)  A homeowner in a

  7  residential subdivision who has paid maintenance or amenity

  8  fees to the association or to the developer to provide

  9  services on behalf of the association that will subsequently

10  assume such responsibility and who has not been provided the

11  maintenance service or use of the amenity within 30 days after

12  notification has the right to file a complaint with a

13  homeowners' grievance board as provided in subsection (2).

14         (2)  The Marion County Board of County Commissioners

15  may create a homeowners' grievance board to mediate complaints

16  from homeowners alleging violations of this act. This

17  subsection does not limit a homeowner's right to seek legal

18  recourse against a party for a violation of that party's

19  obligations in the deed restrictions or covenants.

20         (3)  The county may provide penalties for violations or

21  noncompliance with this act, which penalties may include

22  monetary fines or revocation or suspension or denial of any

23  occupational license or other permits to do business issued to

24  the developer or owner by the county.

25         Section 5.  If any provision of this act or its

26  application to any person or circumstance is held invalid, the

27  invalidity does not affect other provisions or applications of

28  the act which can be given effect without the invalid

29  provision or application, and to this end the provisions of

30  this act are declared severable.

31         Section 6.  This act shall take effect October 1, 2001.


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