H1223 GENERAL BILL
by Robaina; (CO-SPONSORS) Antone; Arza; Barreiro; Cantens; Garcia; Llorente;
Murzin; Rivera; Rubio; Wiles; Zapata
RECOMMENDED by Business Regulation
Condominium Associations; prohibits exercise of multiple votes by owners
of multiple units; provides for grandfathering & modification of rental
rights; provides certain voting & approval criteria for amendments
depriving owners of certain rights; authorizes association to conduct
criminal background checks of potential unit owners & tenants; requires
creation of Condominium Owners' Bill of Rights, etc. Amends Ch. 718.
EFFECTIVE DATE: Upon becoming law.
02/20/04 HOUSE Prefiled
03/02/04 HOUSE Introduced -HJ 00095
Business Regulation
State Administration
Appropriations
Now in Business Regulation - For more
info see:
COMMITTEE
ON BUSINESS REGULATION
The bill was
heard in this Committee on Wednesday, 3-10-2004, at 3.15. p.m. in
Morris Hall.
Result: Favorable With Committee Substitute
VOTE:
N Altman
Y Ambler
Y Attkisson
Y Baxley
Y Benson
Y Bowen
Y Brandenburg
Y Dean |
Y
Farkas
Y Fields
Y Garcia
Y Greenstein
Y Harper
Y Henriquez
Y Holloway
Y Jennings |
N
Johnson
N Joyner
N Justice
Y Kallinger
N Kosmas
Y Littlefield
Y Mahon
Y Mayfield |
Y
Mealor
Y Murzin
Y Paul
Y Prieguez
Y Reagan
Y Richardson
Y Ritter
Y Robaina |
Y
Ryan
Y Smith
Y Sorensen
Y Stargel
Y Vana
N Wishner
Y Zapata |
Total Yeas:
33 Total Nays: 6 Total
Missed: 0
Total Vote:
39
( Identical
S 2498 -- Senator Evelyn Lynn,
Compare
H 1663 -- Representative Mary Brandenburg )
CODING: Words stricken
are deletions; words underlined are
additions.
1 A bill to be entitled
2 An act relating to condominium associations;
amending s.
3 718.103, F.S.; defining the term "immediate
family
4 member"; amending s. 718.104, F.S.;
prohibiting the
5 exercise of multiple votes by owners
of multiple units;
6 amending s. 718.110, F.S.; providing
for grandfathering
7 and modification of rental rights; providing
for certain
8 application of the amendment of unit
owners' rental
9 rights; providing certain voting and
approval criteria for
10 amendments depriving owners of certain
rights; amending s.
11 718.112, F.S.; requiring super majority
votes to reduce
12 certain required reserves; creating
s. 718.1125, F.S.;
13 imposing eligibility restrictions on
association members;
14 authorizing the Division of Florida
Land Sales,
15 Condominiums, and Mobile Homes to adopt
rules; amending s.
16 718.116, F.S.; increasing percentage
of mortgage debt used
17 as a limit on liability in certain
foreclosure actions;
18 requiring notice of intent to record
a claim of lien;
19 designating liens inoperative and unenforceable
if
20 requirements are not fulfilled; changing
priority of
21 claims to which payments for delinquent
assessments are
22 made; providing that certain late fees
and interest shall
23 not be the sole basis for a lien; providing
limitations on
24 recording a claim of lien; requiring
a claim of lien and
25 notice for collections to contain a
certain statement;
26 providing criminal penalties for willful
and malicious
27 imposition, enforcement, or overvaluation
of a lien;
28 requiring a super majority board approval
for excess funds
29 from a special assessment to be credited
against future
30 assessments; requiring board actions
imposing financial
31 hardships to be ratified by a majority
of all voting
32 interests; amending s. 718.3025, F.S.;
requiring
33 additional disclosures for contract
validity or
34 enforceability; providing that certain
business entities
35 may be contracted by the association
to provide certain
36 services if approved by a majority
of all unit owners;
37 amending s. 718.3026, F.S.; deleting
a provision
38 authorizing associations with fewer
than 100 units to opt
39 out of certain products and services
contracting
40 requirements; lowering a threshold
percentage to require
41 competitive bidding; requiring a minimum
number of bids;
42 specifying nonapplication to all employment
contracts;
43 creating s. 718.305, F.S.; authorizing
the association to
44 conduct criminal background checks
of potential unit
45 owners and tenants; amending s. 718.501,
F.S.; requiring
46 mandatory training for certain board
members; creating s.
47 718.5011, F.S.; creating an Office
of the Condominium
48 Ombudsman within the division of Florida
Land Sales,
49 Condominiums, and Mobile Homes; providing
for the office's
50 independence from the division; authorizing
the Joint
51 Legislative Auditing Committee to appoint
the ombudsman;
52 requiring the ombudsman to be an attorney;
providing for
53 the filling of a vacant ombudsman position;
requiring the
54 ombudsman and staff to subscribe to
the oath of office
55 required of state officers; prohibiting
the ombudsman and
56 staff from engaging in any other profession,
serving as a
57 representative or employee of any political
party, or
58 receiving remuneration for activities
on behalf of
59 political candidates; prohibiting the
ombudsman and staff
60 from seeking public office unless resigned
from the Office
61 of the Condominium Ombudsman; providing
requirements and
62 limitations on office staff; creating
s. 718.5012, F.S.;
63 providing for powers and duties of
the ombudsman; creating
64 s. 718.5013, F.S.; providing for compensation
and expenses
65 for the office; authorizing the ombudsman
to employ
66 clerical and technical assistants for
certain purposes;
67 creating s. 718.5014, F.S.; providing
for the location of
68 the ombudsman's office; creating s.
718.5015, F.S.;
69 creating the Advisory Council on Condominiums;
providing
70 for membership, functions, meetings,
and offices of the
71 council; amending s. 718.504, F.S.;
revising provisions
72 relating to certain prospectus and
offering circulars;
73 requiring developers of certain condominiums
to provide a
74 prospectus including a "Frequently
Asked Questions and
75 Answers" document; requiring the document
to contain
76 certain information; reducing the threshold
amount to be
77 required to be disclosed in controversy
for litigation;
78 requiring certain information to be
included in the
79 prospectus or offering circular; providing
for a type two
80 transfer of all records, personnel,
property, and
81 unexpended balances of appropriations,
allocations, or
82 other funds for the administration
of pt. VIIII of ch.
83 468, F.S., from the Division of Professions
to the
84 Division of Florida Land Sales, Condominiums,
and Mobile
85 Homes within the Department of Business
and Professional
86 Regulation; preserving the department's
authority to
87 pursue certain remedies; creating s.
718.510, F.S.;
88 requiring the creation of a Condominium
Owners' Bill of
89 Rights; providing an effective date.
90
91 Be It Enacted by the Legislature of
the State of Florida:
92
93 Section
1. Subsections (18) through (30) of section
94 718.103, Florida Statutes, are renumbered
as subsections (19)
95 through (31), respectively, and a new
subsection (18) is added
96 to said section, to read:
97 718.103
Definitions.--As used in this chapter, the term:
98 (18)
"Immediate family member" means a parent, child,
99 spouse, sibling,
grandparent, grandchild, uncle, aunt, niece,
100 nephew, great-uncle,
great-aunt, great-nephew, great-niece,
101 first cousin,
or second cousin by blood, marriage, or adoption
102 and includes
half and step relatives.
103 Section
2. Paragraph (j) of subsection (4) of section
104 718.104, Florida Statutes, is amended
to read:
105 718.104
Creation of condominiums; contents of
106 declaration.--Every condominium created
in this state shall be
107 created pursuant to this chapter.
108 (4)
The declaration must contain or provide for the
109 following matters:
110 (j)
Unit owners' membership and voting rights in the
111 association. However, any provision
in a declaration or bylaws
112 allowing
an owner of multiple units in the same condominium to
113 exercise
multiple votes shall be void.
114 Section
3. Subsection (13) is added to section 718.110,
115 Florida Statutes, to read:
116 718.110
Amendment of declaration; correction of error or
117 omission in declaration by circuit
court; grandfathering and
118 modification
of certain rights.--
119 (13)(a)
Unless expressly stated in the amendment, any
120 amendment
restricting unit owners' rights relating to the rental
121 of units,
keeping of pets, or allocation of parking spaces shall
122 apply only
to unit owners who purchase their unit after the
123 effective
date of that amendment.
124 (b)
Notwithstanding any other provision of law, or of the
125 declaration
or bylaws, if an amendment expressly deprives
126 current unit
owners of any part of their rights mentioned in
127 subsection
(a), it must be approved by at least three-fourths of
128 the voting
interests. A declaration or an amendment to a
129 declaration
may provide for a higher super majority vote
130 requirement.
131 Section
4. Paragraph (f) of subsection (2) of section
132 718.112, Florida Statutes, is amended
to read:
133 718.112
Bylaws.--
134 (2)
REQUIRED PROVISIONS.--The bylaws shall provide for the
135 following and, if they do not do so,
shall be deemed to include
136 the following:
137 (f)
Annual budget.--
138 1.
The proposed annual budget of common expenses shall be
139 detailed and shall show the amounts
budgeted by accounts and
140 expense classifications, including,
if applicable, but not
141 limited to, those expenses listed
in s. 718.504(21). A
142 multicondominium association shall
adopt a separate budget of
143 common expenses for each condominium
the association operates
144 and shall adopt a separate budget
of common expenses for the
145 association. In addition, if the association
maintains limited
146 common elements with the cost to be
shared only by those
147 entitled to use the limited common
elements as provided for in
148 s. 718.113(1), the budget or a schedule
attached thereto shall
149 show amounts budgeted therefor. If,
after turnover of control of
150 the association to the unit owners,
any of the expenses listed
151 in s. 718.504(21) are not applicable,
they need not be listed.
152 2.
In addition to annual operating expenses, the budget
153 shall include reserve accounts for
capital expenditures and
154 deferred maintenance. These accounts
shall include, but are not
155 limited to, roof replacement, building
painting, and pavement
156 resurfacing, regardless of the amount
of deferred maintenance
157 expense or replacement cost, and for
any other item for which
158 the deferred maintenance expense or
replacement cost exceeds
159 $10,000. The amount to be reserved
shall be computed by means of
160 a formula which is based upon estimated
remaining useful life
161 and estimated replacement cost or
deferred maintenance expense
162 of each reserve item. The association
may adjust replacement
163 reserve assessments annually to take
into account any changes in
164 estimates or extension of the useful
life of a reserve item
165 caused by deferred maintenance. This
subsection does not apply
166 to an adopted budget in which the
members of an association have
167 determined, by a two-thirdsmajority
vote at a duly called
168 meeting of the association, to provide
no reserves or less
169 reserves than required by this subsection.
However, prior to
170 turnover of control of an association
by a developer to unit
171 owners other than a developer pursuant
to s. 718.301, the
172 developer may vote to waive the reserves
or reduce the funding
173 of reserves for the first 2 fiscal
years of the association's
174 operation, beginning with the fiscal
year in which the initial
175 declaration is recorded, after which
time reserves may be waived
176 or reduced only upon the vote of a
majority of all nondeveloper
177 voting interests voting in person
or by limited proxy at a duly
178 called meeting of the association.
If a meeting of the unit
179 owners has been called to determine
whether to waive or reduce
180 the funding of reserves, and no such
result is achieved or a
181 quorum is not attained, the reserves
as included in the budget
182 shall go into effect. After the turnover,
the developer may vote
183 its voting interest to waive or reduce
the funding of reserves.
184 3.
Reserve funds and any interest accruing thereon shall
185 remain in the reserve account or accounts,
and shall be used
186 only for authorized reserve expenditures
unless their use for
187 other purposes is approved in advance
by a majority vote at a
188 duly called meeting of the association.
Prior to turnover of
189 control of an association by a developer
to unit owners other
190 than the developer pursuant to s.
718.301, the developer-
191 controlled association shall not vote
to use reserves for
192 purposes other than that for which
they were intended without
193 the approval of a majority of all
nondeveloper voting interests,
194 voting in person or by limited proxy
at a duly called meeting of
195 the association.
196 4. In
a multicondominium association, the only voting
197 interests which are eligible to vote
on questions that involve
198 waiving or reducing the funding of
reserves, or using existing
199 reserve funds for purposes other than
purposes for which the
200 reserves were intended, are the voting
interests of the units
201 subject to assessment to fund the
reserves in question.
202 Section
5. Section 718.1125, Florida Statutes, is created
203 to read:
204 718.1125
Board eligibility restrictions.--
205 (1)
Notwithstanding any provision of the declaration or
206 bylaws, no
one may serve on the board of the same association:
207 (a)
Alongside an immediate family member who is also on
208 that board.
If this paragraph is violated, the later-elected
209 immediate
family member's election shall be deemed void. Good-
210 faith ignorance
of such a relationship shall prevent the
211 operation
of this paragraph, but only until such a relationship
212 is discovered.
213 (b)
Unless actually resident in the condominium for at
214 least 3 months
out of the year prior to the annual meeting at
215 which he
or she was elected.
216 (c)
Unless subjected to a criminal background check by the
217 Department
of Law Enforcement, the results of which shall be
218 available
to all unit owners in that condominium notwithstanding
219 any public
records exemption.
220 (d)
For more than 2 consecutive years. A person barred
221 from serving
on a board under this paragraph may seek reelection
222 after an
intervening 2 years or may seek to be reelected
223 immediately,
only if, no other candidate seeks to be elected and
224 the person
otherwise barred is approved by a majority of the
225 voting interests.
226 (2)
The Department of Law Enforcement shall, in
227 coordination
with the division, adopt rules pursuant to chapter
228 120 to provide
for criminal background checks required by
229 paragraph
(1)(e) and for recovering the costs of such checks
230 from associations.
231 Section
6. Paragraphs (b) and (c) of subsection (1),
232 subsection (3), paragraphs (a) and
(b) of subsection (5),
233 paragraph (b) of subsection (6), and
subsection (10) of section
234 718.116, Florida Statutes, are amended,
paragraph (e) is added
235 to subsection (6) of said section,
and subsection (11) is added
236 to said section, to read:
237 718.116
Assessments; liability; lien and priority;
238 interest; collection.--
239 (1)
240 (b)
The liability of a first mortgagee or its successor or
241 assignees who acquire title to a unit
by foreclosure or by deed
242 in lieu of foreclosure for the unpaid
assessments that became
243 due prior to the mortgagee's acquisition
of title is limited to
244 the lesser of:
245 1.
The unit's unpaid common expenses and regular periodic
246 assessments which accrued or came
due during the 6 months
247 immediately preceding the acquisition
of title and for which
248 payment in full has not been received
by the association; or
249 2. FiveOne
percent of the original mortgage debt. The
250 provisions of this paragraph apply
only if the first mortgagee
251 joined the association as a defendant
in the foreclosure action.
252 Joinder of the association is not
required if, on the date the
253 complaint is filed, the association
was dissolved or did not
254 maintain an office or agent for service
of process at a location
255 which was known to or reasonably discoverable
by the mortgagee.
256 (c)
The person acquiring title shall pay the amount owed
257 to the association within 30 days
after transfer of title.
258 Failure to pay the full amount when
due shall entitle the
259 association to record a claim of lien
against the parcel and
260 proceed in the same manner as provided
in this section for the
261 collection of unpaid assessments.
Such
a lien may not be
262 recorded
until 30 days after the association posts notice by
263 certified
mail to the person acquiring title of its intent to
264 record the
lien.
265 (3)
Assessments and installments on them which are not
266 paid when due bear interest at the
rate provided in the
267 declaration, from the due date until
paid. This rate may not
268 exceed the rate allowed by law, and,
if no rate is provided in
269 the declaration, interest shall accrue
at the rate of 18 percent
270 per year. Also, if the declaration
or bylaws so provide, the
271 association may charge an administrative
late fee in addition to
272 such interest, in an amount not to
exceed the greater of $25 or
273 5 percent of each installment of the
assessment for each
274 delinquent installment that the payment
is late. Any payment
275 received by an association shall be
applied first to the
276 delinquent
assessment, then to any interest accrued by the
277 association, then to any administrative
late fee, and then to
278 any costs and reasonable attorney's
fees incurred in collection,
279 and
then to the delinquent assessment. The foregoing shall
be
280 applicable notwithstanding any restrictive
endorsement,
281 designation, or instruction placed
on or accompanying a payment.
282 A late fee shall not be subject to
the provisions in chapter 687
283 or s. 718.303(3).
284 (5)(a)
The association has a lien on each condominium
285 parcel to secure the payment of assessments.
No
administrative
286 late fee
or interest shall be the sole basis for a lien. Except
287 as otherwise provided in subsection
(1) and as set forth below,
288 the lien is effective from and shall
relate back to the
289 recording of the original declaration
of condominium, or, in the
290 case of lien on a parcel located in
a phase condominium, the
291 last to occur of the recording of
the original declaration or
292 amendment thereto creating the parcel.
However, as to first
293 mortgages of record, the lien is effective
from and after
294 recording of a claim of lien in the
public records of the county
295 in which the condominium parcel is
located. Nothing in this
296 subsection shall be construed to bestow
upon any lien, mortgage,
297 or certified judgment of record on
April 1, 1992, including the
298 lien for unpaid assessments created
herein, a priority which, by
299 law, the lien, mortgage, or judgment
did not have before that
300 date.
301 (b)
To be valid, a claim of lien must state the
302 description of the condominium parcel,
the name of the record
303 owner, the name and address of the
association, the amount due,
304 and the due dates. It must be executed
and acknowledged by an
305 officer or authorized agent of the
association. The claim of
306 lien may
not be recorded until 45 days after the association
307 posts notice
of its intent to record the claim by certified or
308 registered
mail to the record owner or delivers such notice to
309 the record
owner by hand. Failure to comply with this
310 requirement
renders the claim of lien inoperative and
311 unenforceable
until compliance. No such lien shall be
effective
312 longer than 1 year after the claim
of lien was recorded unless,
313 within that time, an action to enforce
the lien is commenced.
314 The 1-year period shall automatically
be extended for any length
315 of time during which the association
is prevented from filing a
316 foreclosure action by an automatic
stay resulting from a
317 bankruptcy petition filed by the parcel
owner or any other
318 person claiming an interest in the
parcel. The claim of lien
319 shall secure all unpaid assessments
which are due and which may
320 accrue subsequent to the recording
of the claim of lien and
321 prior to the entry of a certificate
of title, as well as
322 interest and all reasonable costs
and attorney's fees incurred
323 by the association incident to the
collection process. Upon
324 payment in full, the person making
the payment is entitled to a
325 satisfaction of the lien.
326 (6)
327 (b)
No foreclosure judgment may be entered until at least
328 30 days after the association gives
written notice to the unit
329 owner of its intention to foreclose
its lien to collect the
330 unpaid assessments. If this notice
is not given at least 30 days
331 before the foreclosure action is filed,
and if the unpaid
332 assessments, including those coming
due after the claim of lien
333 is recorded, are paid before the entry
of a final judgment of
334 foreclosure or
money judgment, the association shall not recover
335 attorney's fees or costs. The notice
must be given by delivery
336 of a copy of it to the unit owner
or by certified or registered
337 mail, return receipt requested, addressed
to the unit owner at
338 his or her last known address; and,
upon such mailing, the
339 notice shall be deemed to have been
given, and the court shall
340 proceed with the foreclosure action
and may award attorney's
341 fees and costs as permitted by law.
The notice requirements of
342 this subsection are satisfied if the
unit owner records a notice
343 of contest of lien as provided in
subsection (5). The notice
344 requirements of this subsection do
not apply if an action to
345 foreclose a mortgage on the condominium
unit is pending before
346 any court; if the rights of the association
would be affected by
347 such foreclosure; and if actual, constructive,
or substitute
348 service of process has been made on
the unit owner. Each claim
349 of lien as
well as each 30-day written notice for collections
350 shall contain
the following statement distinguished in
351 conspicuous
bold, enlarged, or italicized type:
352
353 UNDER FLORIDA
LAW, YOUR CONDOMINIUM UNIT, EVEN IF NOT YOUR
354 HOMESTEAD
RESIDENCE, IS SUBJECT TO FORECLOSURE FOR FAILING TO
355 MAKE MAINTENANCE
ASSESSMENT PAYMENTS.
356 (e)
A board member or officer of an association, or his or
357 her immediate
family member, who willfully and maliciously acts
358 to impose,
enforce, or increase the overall value of a lien for
359 the payment
of assessments with the intent to purchase or assist
360 in the purchase
of a condominium unit at foreclosure commits a
361 misdemeanor
of the first degree, punishable as provided in s.
362 775.082 or
s. 775.083.
363 (10)
The specific purpose or purposes of any special
364 assessment approved in accordance
with the condominium documents
365 shall be set forth in a written notice
of such assessment sent
366 or delivered to each unit owner. The
funds collected pursuant to
367 a special assessment shall be used
only for the specific purpose
368 or purposes set forth in such notice.
However, upon completion
369 of such specific purpose or purposes,
any excess funds will be
370 considered common surplus, and may,
at the discretion of the
371 board,
either be returned to the unit owners or, upon
approval
372 of two-thirds
of the board, be applied as a credit toward future
373 assessments.
374 (11)
Notwithstanding any provision of the declaration or
375 bylaws, any
action of the board, even those characterized as
376 special assessments,
that imposes a financial hardship on any or
377 all of the
unit owners must be ratified by a majority of the
378 voting interests
at a duly convened meeting of the association
379 to be held
within 60 days of such action or such action shall be
380 void.
381 Section
7. Paragraph (e) of subsection (1) of section
382 718.3025, Florida Statutes, is amended,
subsection (4) of said
383 section is renumbered as subsection
(5), and a new subsection
384 (4) is added to said section, to read:
385 718.3025
Agreements for operation, maintenance, or
386 management of condominiums; specific
requirements.--
387 (1)
No written contract between a party contracting to
388 provide maintenance or management
services and an association
389 which contract provides for operation,
maintenance, or
390 management of a condominium association
or property serving the
391 unit owners of a condominium shall
be valid or enforceable
392 unless the contract:
393 (e)
Discloses any financial or ownership interest which
394 the developer, if the developer is
in control of the
395 association, any
officer of the association, or any member of
396 the board
holds with regard to the party contracting to provide
397 maintenance or management services.
398 (4)
A business entity of whom an association's board
399 member or
officer or his or her immediate family member is an
400 employee,
or in which an association's board member or officer
401 or any or
all of his or her immediate family members together
402 hold an ownership
interest of 10 percent or more, may be
403 contracted
to provide maintenance or management services to that
404 association
only if approved by a majority of all unit owners. A
405 contract
in violation of this subsection shall be void.
406 Section
8. Section 718.3026, Florida Statutes, is amended
407 to read:
408 718.3026
Contracts for products and services; in writing;
409 bids; exceptions.--Associations
with less than 100 units may opt
410 out
of the provisions of this section if two-thirds of the unit
411 owners
vote to do so, which opt-out may be accomplished by a
412 proxy
specifically setting forth the exception from this
413 section.
414 (1)
All contracts as further described herein or any
415 contract that is not to be fully performed
within 1 year after
416 the making thereof, for the purchase,
lease, or renting of
417 materials or equipment to be used
by the association in
418 accomplishing its purposes under this
chapter, and all contracts
419 for the provision of services, shall
be in writing. If a
420 contract for the purchase, lease,
or renting of materials or
421 equipment, or for the provision of
services, requires payment by
422 the association on behalf of any condominium
operated by the
423 association in the aggregate that
exceeds 2.5 5
percent of the
424 total annual budget of the association,
including reserves, the
425 association shall obtain no
fewer than three competitive bids
426 for the materials, equipment, or services.
Nothing contained
427 herein shall be construed to require
the association to accept
428 the lowest bid.
429 (2)(a)1.
Notwithstanding the foregoing, employment
430 contracts with employees of the association,
and contracts for
431 attorney,
accountant, architect, community association manager,
432 timeshare
management firm, engineering, and landscape architect
433 services
are not subject to the provisions of this section.
434 2.
A contract executed before January 1, 1992, and any
435 renewal thereof, is not subject to
the competitive bid
436 requirements of this section. If a
contract was awarded under
437 the competitive bid procedures of
this section, any renewal of
438 that contract is not subject to such
competitive bid
439 requirements if the contract contains
a provision that allows
440 the board to cancel the contract on
30 days' notice. Materials,
441 equipment, or services provided to
a condominium under a local
442 government franchise agreement by
a franchise holder are not
443 subject to the competitive bid requirements
of this section. A
444 contract with a manager, if made by
a competitive bid, may be
445 made for up to 3 years. A condominium
whose declaration or
446 bylaws provides for competitive bidding
for services may operate
447 under the provisions of that declaration
or bylaws in lieu of
448 this section if those provisions are
not less stringent than the
449 requirements of this section.
450 (b)
Nothing contained herein is intended to limit the
451 ability of an association to obtain
needed products and services
452 in an emergency.
453 (c)
This section shall not apply if the business entity
454 with which the association desires
to enter into a contract is
455 the only source of supply within the
county serving the
456 association.
457 (d)
Nothing contained herein shall excuse a party
458 contracting to provide maintenance
or management services from
459 compliance with s. 718.3025.
460 Section
9. Section 718.305, Florida Statutes, is created
461 to read:
462 718.305
Criminal background checks for potential unit
463 owners and
tenants.--Upon receiving notice of a potential unit
464 owner or
tenant, the association shall, at the expense of the
465 applicant,
conduct a criminal background check of all persons
466 seeking to
own or rent a unit.
467 Section
10. Paragraph (j) of subsection (1) of section
468 718.501, Florida Statutes, is amended
to read:
469 718.501
Powers and duties of Division of Florida Land
470 Sales, Condominiums, and Mobile Homes.--
471 (1)
The Division of Florida Land Sales, Condominiums, and
472 Mobile Homes of the Department of
Business and Professional
473 Regulation, referred to as the "division"
in this part, in
474 addition to other powers and duties
prescribed by chapter 498,
475 has the power to enforce and ensure
compliance with the
476 provisions of this chapter and rules
promulgated pursuant hereto
477 relating to the development, construction,
sale, lease,
478 ownership, operation, and management
of residential condominium
479 units. In performing its duties, the
division has the following
480 powers and duties:
481 (j)
The division shall provide training programs for
482 condominium association board members
and unit owners. Training
483 shall be
mandatory for newly elected board members and members
484 currently
serving on a board who have not previously voluntarily
485 attended
training.
486 Section
11. Section 718.5011, Florida Statutes, is created
487 to read:
488 718.5011
Ombudsman; appointment; oath; restrictions on
489 ombudsman
and his or her employees.--
490 (1)
There is created an Office of the Condominium
491 Ombudsman
that for administrative purposes shall be located
492 within the
Division of Florida Land Sales, Condominiums, and
493 Mobile Homes.
However, the office shall be independent of the
494 division.
495 (2)
The Joint Legislative Auditing Committee shall appoint
496 an ombudsman
by majority vote of the members of that committee.
497 The ombudsman
shall be an attorney admitted to practice before
498 the Florida
Supreme Court and shall serve at the pleasure of the
499 Joint Legislative
Auditing Committee. Vacancies in the office
500 shall be
filled in the same manner as the original appointment.
501 The ombudsman
and attorneys under his staff shall take and
502 subscribe
to the oath of office required of state officers by
503 the State
Constitution. No officer or full-time employee of the
504 ombudsman's
office shall actively engage in any other business
505 or profession;
serve as the representative of any political
506 party, executive
committee, or other governing body thereof;
507 serve as
an executive, officer, or employee of any political
508 party, committee,
organization, or association; receive
509 remuneration
for activities on behalf of any candidate for
510 public office;
or engage on behalf of any candidate for public
511 office in
the solicitation of votes or other activities on
512 behalf of
such candidacy. Neither the ombudsman nor any employee
513 of his or
her office shall become a candidate for election to
514 public office
unless he or she first resigns from his or her
515 office or
employment.
516 Section
12. Section 718.5012, Florida Statutes, is created
517 to read:
518 718.5012
Ombudsman; powers and duties.--The ombudsman
519 shall have
such powers as are necessary to carry out the duties
520 of his or
her office, including, but not limited to, the
521 following
specific powers:
522 (1)
To have access to and use of all files and records of
523 the division.
524 (2)
To prepare and issue reports, recommendations, and
525 proposed
orders to the division, the Governor, the Advisory
526 Council on
Condominiums, the President of the Senate, the
527 Speaker of
the House of Representatives, and minority leaders of
528 the Senate
and the House of Representatives on any matter or
529 subject within
the jurisdiction of the division, and to make
530 such recommendations
as he or she deems appropriate for
531 legislation
relative to division procedures, rules,
532 jurisdiction,
personnel, and functions.
533 (3)
To act as liaison between the division and unit
534 owners, and
to assist any unit owner in the preparation and
535 filing of
a complaint to be investigated by the division. The
536 ombudsman
shall establish procedures for receiving complaints.
537 Any complaint
deemed valid by the ombudsman and properly falling
538 within the
jurisdiction of the division and requiring remedial
539 action shall
be identified and promptly filed with the division.
540 Upon the
concurrence of the division, the ombudsman shall
541 establish
target dates for concluding an investigation and for
542 taking appropriate
specified remedial action. The ombudsman may
543 recommend
that the division initiate enforcement proceedings in
544 accordance
with chapter 120. The department and the ombudsman
545 may take
findings of a criminal nature and submit them as
546 evidence
to the State Attorneys office, and work with them to
547 bring charges
against the alleged parties involved.
548 (4)
To make recommendations to the division for changes in
549 rules and
procedures for the filing, investigation, and
550 resolution
of complaints filed by unit owners.
551 Section
13. Section 718.5013, Florida Statutes, is created
552 to read:
553 718.5013
Ombudsman; compensation and expenses.--
554 (1)
All costs and expenses incurred by the Office of the
555 Condominium
Ombudsman shall be paid from disbursements from the
556 Division
of Florida Land Sales, Condominiums, and Mobile Homes
557 Trust Fund
and shall require approval of the Joint Legislative
558 Auditing
Committee.
559 (2)
The Joint Legislative Auditing Committee may authorize
560 the ombudsman
to employ clerical and technical assistants whose
561 qualifications,
duties, and responsibilities the committee shall
562 from time
to time prescribe, and to enter into such contracts as
563 necessary.
The committee may authorize retention of the services
564 of additional
attorneys or experts to the extent that the best
565 interests
of the people of the state will be better served
566 thereby,
including the retention of expert witnesses and other
567 technical
personnel for participation in contested proceedings
568 before the
division.
569 Section
14. Section 718.5014, Florida Statutes, is created
570 to read:
571 718.5014
Ombudsman; location.--The ombudsman shall
572 maintain
his or her principal office in Leon County on the
573 premises
of the division or, if suitable space cannot be
574 provided
there, at such other place convenient to the offices of
575 the division
as will enable the ombudsman to expeditiously carry
576 out the duties
and functions of his or her office. The ombudsman
577 may establish
branch offices upon the concurrence of the Joint
578 Legislative
Auditing Committee
579 Section
15. Section 718.5015, Florida Statutes, is created
580 to read:
581 718.5015
Advisory council; membership functions.--
582 (1)
There is created the Advisory Council on Condominiums.
583 The council
shall consist of seven members. Two members shall be
584 appointed
by the Speaker of the House of Representatives, two
585 members shall
be appointed by the President of the Senate, and
586 three members
shall be appointed by the Governor. At least one
587 member shall
represent timeshare condominiums. Members shall be
588 appointed
to 2-year terms; however, of the initial appointments,
589 one of the
members appointed by each of the Governor, the
590 Speaker of
the House of Representatives, and the President of
591 the Senate
shall be appointed to 1-year terms. In addition to
592 these appointed
members, the director of the Division of Florida
593 Land Sales,
Condominiums, and Mobile Homes shall serve as an ex
594 officio member
of the council. It is the intent of the
595 Legislature
that the persons appointed to this council represent
596 a cross-section
of persons interested in condominium issues. For
597 administrative
purposes, the council shall be located in the
598 Division
of Florida Land Sales, Condominiums, and Mobile Homes
599 of the Department
of Business and Professional Regulation.
600 Members of
the council shall serve without compensation, but
601 shall be
entitled to receive per diem and travel expenses
602 pursuant
to s. 112.061 while on official business.
603 (2)
The functions of the advisory council shall be to:
604 (a)
Receive input from the public regarding issues of
605 concern with
respect to condominiums and to receive
606 recommendations
for any changes to be made in the condominium
607 law. The
issues that the council shall consider shall include,
608 but shall
not be limited to, the rights and responsibilities of
609 the unit
owners in relation to the rights and responsibilities
610 of the association.
611 (b)
Review, evaluate, and advise the division concerning
612 revisions
and adoption of rules affecting condominiums.
613 (c)
Recommend improvements, if needed, in the education
614 programs
offered by the division.
615 (3)
The council is authorized to elect a chair and vice
616 chair and
such other offices as it may deem advisable. The
617 council shall
meet at the call of its chair, at the request of a
618 majority
of its membership, at the request of the division, or
619 at such times
as may be prescribed by its rules. A majority of
620 the members
of the council shall constitute a quorum for the
621 transaction
of all business and the carrying out of the duties
622 of the council.
623 Section
16. Section 718.504, Florida Statutes, is amended,
624 and subsection (29) is added to said
section, to read:
625 718.504
Prospectus or offering circular; "Frequently Asked
626 Questions
and Answers".--Every developer of a residential
627 condominium which contains more than
20 residential units, or
628 which is part of a group of residential
condominiums which will
629 be served by property to be used in
common by unit owners of
630 more than 20 residential units, shall
prepare a prospectus or
631 offering circular and file it with
the Division of Florida Land
632 Sales, Condominiums, and Mobile Homes
prior to entering into an
633 enforceable contract of purchase and
sale of any unit or lease
634 of a unit for more than 5 years and
shall furnish a copy of the
635 prospectus or offering circular to
each buyer. In addition to
636 the prospectus or offering circular,
any
prospective each
buyer
637 from the
developer or a current unit owner shall be furnished a
638 separate documentpage
entitled "Frequently Asked Questions and
639 Answers," which shall be in accordance
with a format approved by
640 the division and a copy of the financial
information required by
641 s. 718.111. This documentpage
shall, in readable language,
642 inform prospective purchasers regarding
their voting rights and
643 unit use restrictions, including restrictions
on the leasing of
644 a unit; shall indicate whether and
in what amount the unit
645 owners or the association is obligated
to pay rent or land use
646 fees for recreational or other commonly
used facilities; shall
647 contain a statement identifying that
amount of assessment which,
648 pursuant to the budget, would be levied
upon each unit type,
649 exclusive of any special assessments,
and which shall further
650 identify the basis upon which assessments
are levied, whether
651 monthly, quarterly, or otherwise;
shall state and identify any
652 court cases in which the association
is currently a party of
653 record in which the association may
face liability in excess
of
654 $25,000 or
more $100,000;
and which shall further state whether
655 membership in a recreational facilities
association is
656 mandatory, and if so, shall identify
the fees currently charged
657 per unit type. The division shall
by rule require such other
658 disclosure as in its judgment will
assist prospective
659 purchasers. The prospectus or offering
circular may include more
660 than one condominium, although not
all such units are being
661 offered for sale as of the date of
the prospectus or offering
662 circular. The prospectus or offering
circular must contain the
663 following information:
664 (1)
The front cover or the first page must contain only:
665 (a)
The name of the condominium.
666 (b)
The following statements in conspicuous type:
667 1.
THIS PROSPECTUS (OFFERING CIRCULAR) CONTAINS IMPORTANT
668 MATTERS TO BE CONSIDERED IN ACQUIRING
A CONDOMINIUM UNIT.
669 2.
THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN
670 NATURE. A PROSPECTIVE PURCHASER SHOULD
REFER TO ALL REFERENCES,
671 ALL EXHIBITS HERETO, THE CONTRACT
DOCUMENTS, AND SALES
672 MATERIALS.
673 3.
ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY
674 STATING THE REPRESENTATIONS OF THE
DEVELOPER. REFER TO THIS
675 PROSPECTUS (OFFERING CIRCULAR) AND
ITS EXHIBITS FOR CORRECT
676 REPRESENTATIONS.
677 (2)
Summary: The next page must contain all statements
678 required to be in conspicuous type
in the prospectus or offering
679 circular.
680 (3)
A separate index of the contents and exhibits of the
681 prospectus.
682 (4)
Beginning on the first page of the text (not including
683 the summary and index), a description
of the condominium,
684 including, but not limited to, the
following information:
685 (a)
Its name and location.
686 (b)
A description of the condominium property, including,
687 without limitation:
688 1.
The number of buildings, the number of units in each
689 building, the number of bathrooms
and bedrooms in each unit, and
690 the total number of units, if the
condominium is not a phase
691 condominium, or the maximum number
of buildings that may be
692 contained within the condominium,
the minimum and maximum
693 numbers of units in each building,
the minimum and maximum
694 numbers of bathrooms and bedrooms
that may be contained in each
695 unit, and the maximum number of units
that may be contained
696 within the condominium, if the condominium
is a phase
697 condominium.
698 2.
The page in the condominium documents where a copy of
699 the plot plan and survey of the condominium
is located.
700 3.
The estimated latest date of completion of
701 constructing, finishing, and equipping.
In lieu of a date, the
702 description shall include a statement
that the estimated date of
703 completion of the condominium is in
the purchase agreement and a
704 reference to the article or paragraph
containing that
705 information.
706 (c)
The maximum number of units that will use facilities
707 in common with the condominium. If
the maximum number of units
708 will vary, a description of the basis
for variation and the
709 minimum amount of dollars per unit
to be spent for additional
710 recreational facilities or enlargement
of such facilities. If
711 the addition or enlargement of facilities
will result in a
712 material increase of a unit owner's
maintenance expense or
713 rental expense, if any, the maximum
increase and limitations
714 thereon shall be stated.
715 (5)(a)
A statement in conspicuous type describing whether
716 the condominium is created and being
sold as fee simple
717 interests or as leasehold interests.
If the condominium is
718 created or being sold on a leasehold,
the location of the lease
719 in the disclosure materials shall
be stated.
720 (b)
If timeshare estates are or may be created with
721 respect to any unit in the condominium,
a statement in
722 conspicuous type stating that timeshare
estates are created and
723 being sold in units in the condominium.
724 (6)
A description of the recreational and other commonly
725 used facilities that will be used
only by unit owners of the
726 condominium, including, but not limited
to, the following:
727 (a)
Each room and its intended purposes, location,
728 approximate floor area, and capacity
in numbers of people.
729 (b)
Each swimming pool, as to its general location,
730 approximate size and depths, approximate
deck size and capacity,
731 and whether heated.
732 (c)
Additional facilities, as to the number of each
733 facility, its approximate location,
approximate size, and
734 approximate capacity.
735 (d)
A general description of the items of personal
736 property and the approximate number
of each item of personal
737 property that the developer is committing
to furnish for each
738 room or other facility or, in the
alternative, a representation
739 as to the minimum amount of expenditure
that will be made to
740 purchase the personal property for
the facility.
741 (e)
The estimated date when each room or other facility
742 will be available for use by the unit
owners.
743 (f)1.
An identification of each room or other facility to
744 be used by unit owners that will not
be owned by the unit owners
745 or the association;
746 2.
A reference to the location in the disclosure materials
747 of the lease or other agreements providing
for the use of those
748 facilities; and
749 3.
A description of the terms of the lease or other
750 agreements, including the length of
the term; the rent payable,
751 directly or indirectly, by each unit
owner, and the total rent
752 payable to the lessor, stated in monthly
and annual amounts for
753 the entire term of the lease; and
a description of any option to
754 purchase the property leased under
any such lease, including the
755 time the option may be exercised,
the purchase price or how it
756 is to be determined, the manner of
payment, and whether the
757 option may be exercised for a unit
owner's share or only as to
758 the entire leased property.
759 (g)
A statement as to whether the developer may provide
760 additional facilities not described
above; their general
761 locations and types; improvements
or changes that may be made;
762 the approximate dollar amount to be
expended; and the maximum
763 additional common expense or cost
to the individual unit owners
764 that may be charged during the first
annual period of operation
765 of the modified or added facilities.
766
767 Descriptions as to locations, areas,
capacities, numbers,
768 volumes, or sizes may be stated as
approximations or minimums.
769 (7)
A description of the recreational and other facilities
770 that will be used in common with other
condominiums, community
771 associations, or planned developments
which require the payment
772 of the maintenance and expenses of
such facilities, either
773 directly or indirectly, by the unit
owners. The description
774 shall include, but not be limited
to, the following:
775 (a)
Each building and facility committed to be built.
776 (b)
Facilities not committed to be built except under
777 certain conditions, and a statement
of those conditions or
778 contingencies.
779 (c)
As to each facility committed to be built, or which
780 will be committed to be built upon
the happening of one of the
781 conditions in paragraph (b), a statement
of whether it will be
782 owned by the unit owners having the
use thereof or by an
783 association or other entity which
will be controlled by them, or
784 others, and the location in the exhibits
of the lease or other
785 document providing for use of those
facilities.
786 (d)
The year in which each facility will be available for
787 use by the unit owners or, in the
alternative, the maximum
788 number of unit owners in the project
at the time each of all of
789 the facilities is committed to be
completed.
790 (e)
A general description of the items of personal
791 property, and the approximate number
of each item of personal
792 property, that the developer is committing
to furnish for each
793 room or other facility or, in the
alternative, a representation
794 as to the minimum amount of expenditure
that will be made to
795 purchase the personal property for
the facility.
796 (f)
If there are leases, a description thereof, including
797 the length of the term, the rent payable,
and a description of
798 any option to purchase.
799
800 Descriptions shall include location,
areas, capacities, numbers,
801 volumes, or sizes and may be stated
as approximations or
802 minimums.
803 (8)
Recreation lease or associated club membership:
804 (a)
If any recreational facilities or other facilities
805 offered by the developer and available
to, or to be used by,
806 unit owners are to be leased or have
club membership associated,
807 the following statement in conspicuous
type shall be included:
808 THERE IS A RECREATIONAL FACILITIES
LEASE ASSOCIATED WITH THIS
809 CONDOMINIUM; or, THERE IS A CLUB MEMBERSHIP
ASSOCIATED WITH THIS
810 CONDOMINIUM. There shall be a reference
to the location in the
811 disclosure materials where the recreation
lease or club
812 membership is described in detail.
813 (b)
If it is mandatory that unit owners pay a fee, rent,
814 dues, or other charges under a recreational
facilities lease or
815 club membership for the use of facilities,
there shall be in
816 conspicuous type the applicable statement:
817 1.
MEMBERSHIP IN THE RECREATIONAL FACILITIES CLUB IS
818 MANDATORY FOR UNIT OWNERS; or
819 2.
UNIT OWNERS ARE REQUIRED, AS A CONDITION OF OWNERSHIP,
820 TO BE LESSEES UNDER THE RECREATIONAL
FACILITIES LEASE; or
821 3.
UNIT OWNERS ARE REQUIRED TO PAY THEIR SHARE OF THE
822 COSTS AND EXPENSES OF MAINTENANCE,
MANAGEMENT, UPKEEP,
823 REPLACEMENT, RENT, AND FEES UNDER
THE RECREATIONAL FACILITIES
824 LEASE (OR THE OTHER INSTRUMENTS PROVIDING
THE FACILITIES); or
825 4.
A similar statement of the nature of the organization
826 or the manner in which the use rights
are created, and that unit
827 owners are required to pay.
828
829 Immediately following the applicable
statement, the location in
830 the disclosure materials where the
development is described in
831 detail shall be stated.
832 (c)
If the developer, or any other person other than the
833 unit owners and other persons having
use rights in the
834 facilities, reserves, or is entitled
to receive, any rent, fee,
835 or other payment for the use of the
facilities, then there shall
836 be the following statement in conspicuous
type: THE UNIT OWNERS
837 OR THE ASSOCIATION(S) MUST PAY RENT
OR LAND USE FEES FOR
838 RECREATIONAL OR OTHER COMMONLY USED
FACILITIES. Immediately
839 following this statement, the location
in the disclosure
840 materials where the rent or land use
fees are described in
841 detail shall be stated.
842 (d)
If, in any recreation format, whether leasehold, club,
843 or other, any person other than the
association has the right to
844 a lien on the units to secure the
payment of assessments, rent,
845 or other exactions, there shall appear
a statement in
846 conspicuous type in substantially
the following form:
847 1.
THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
848 SECURE THE PAYMENT OF RENT AND OTHER
EXACTIONS UNDER THE
849 RECREATION LEASE. THE UNIT OWNER'S
FAILURE TO MAKE THESE
850 PAYMENTS MAY RESULT IN FORECLOSURE
OF THE LIEN; or
851 2.
THERE IS A LIEN OR LIEN RIGHT AGAINST EACH UNIT TO
852 SECURE THE PAYMENT OF ASSESSMENTS
OR OTHER EXACTIONS COMING DUE
853 FOR THE USE, MAINTENANCE, UPKEEP,
OR REPAIR OF THE RECREATIONAL
854 OR COMMONLY USED FACILITIES. THE UNIT
OWNER'S FAILURE TO MAKE
855 THESE PAYMENTS MAY RESULT IN FORECLOSURE
OF THE LIEN.
856
857 Immediately following the applicable
statement, the location in
858 the disclosure materials where the
lien or lien right is
859 described in detail shall be stated.
860 (9)
If the developer or any other person has the right to
861 increase or add to the recreational
facilities at any time after
862 the establishment of the condominium
whose unit owners have use
863 rights therein, without the consent
of the unit owners or
864 associations being required, there
shall appear a statement in
865 conspicuous type in substantially
the following form:
866 RECREATIONAL FACILITIES MAY BE EXPANDED
OR ADDED WITHOUT CONSENT
867 OF UNIT OWNERS OR THE ASSOCIATION(S).
Immediately following this
868 statement, the location in the disclosure
materials where such
869 reserved rights are described shall
be stated.
870 (10)
A statement of whether the developer's plan includes
871 a program of leasing units rather
than selling them, or leasing
872 units and selling them subject to
such leases. If so, there
873 shall be a description of the plan,
including the number and
874 identification of the units and the
provisions and term of the
875 proposed leases, and a statement in
boldfaced type that: THE
876 UNITS MAY BE TRANSFERRED SUBJECT TO
A LEASE.
877 (11)
The arrangements for management of the association
878 and maintenance and operation of the
condominium property and of
879 other property that will serve the
unit owners of the
880 condominium property, and a description
of the management
881 contract and all other contracts for
these purposes having a
882 term in excess of 1 year, including
the following:
883 (a)
The names of contracting parties.
884 (b)
The term of the contract.
885 (c)
The nature of the services included.
886 (d)
The compensation, stated on a monthly and annual
887 basis, and provisions for increases
in the compensation.
888 (e)
A reference to the volumes and pages of the
889 condominium documents and of the exhibits
containing copies of
890 such contracts.
891
892 Copies of all described contracts shall
be attached as exhibits.
893 If there is a contract for the management
of the condominium
894 property, then a statement in conspicuous
type in substantially
895 the following form shall appear, identifying
the proposed or
896 existing contract manager: THERE IS
(IS TO BE) A CONTRACT FOR
897 THE MANAGEMENT OF THE CONDOMINIUM
PROPERTY WITH (NAME OF THE
898 CONTRACT MANAGER). Immediately following
this statement, the
899 location in the disclosure materials
of the contract for
900 management of the condominium property
shall be stated.
901 (12)
If the developer or any other person or persons other
902 than the unit owners has the right
to retain control of the
903 board of administration of the association
for a period of time
904 which can exceed 1 year after the
closing of the sale of a
905 majority of the units in that condominium
to persons other than
906 successors or alternate developers,
then a statement in
907 conspicuous type in substantially
the following form shall be
908 included: THE DEVELOPER (OR OTHER
PERSON) HAS THE RIGHT TO
909 RETAIN CONTROL OF THE ASSOCIATION
AFTER A MAJORITY OF THE UNITS
910 HAVE BEEN SOLD. Immediately following
this statement, the
911 location in the disclosure materials
where this right to control
912 is described in detail shall be stated.
913 (13)
If there are any restrictions upon the sale,
914 transfer, conveyance, or leasing of
a unit, then a statement in
915 conspicuous type in substantially
the following form shall be
916 included: THE SALE, LEASE, OR TRANSFER
OF UNITS IS RESTRICTED OR
917 CONTROLLED. Immediately following
this statement, the location
918 in the disclosure materials where
the restriction, limitation,
919 or control on the sale, lease, or
transfer of units is described
920 in detail shall be stated.
921 (14)
If the condominium is part of a phase project, the
922 following information shall be stated:
923 (a)
A statement in conspicuous type in substantially the
924 following form: THIS IS A PHASE CONDOMINIUM.
ADDITIONAL LAND AND
925 UNITS MAY BE ADDED TO THIS CONDOMINIUM.
Immediately following
926 this statement, the location in the
disclosure materials where
927 the phasing is described shall be
stated.
928 (b)
A summary of the provisions of the declaration which
929 provide for the phasing.
930 (c)
A statement as to whether or not residential buildings
931 and units which are added to the condominium
may be
932 substantially different from the residential
buildings and units
933 originally in the condominium. If
the added residential
934 buildings and units may be substantially
different, there shall
935 be a general description of the extent
to which such added
936 residential buildings and units may
differ, and a statement in
937 conspicuous type in substantially
the following form shall be
938 included: BUILDINGS AND UNITS WHICH
ARE ADDED TO THE CONDOMINIUM
939 MAY BE SUBSTANTIALLY DIFFERENT FROM
THE OTHER BUILDINGS AND
940 UNITS IN THE CONDOMINIUM. Immediately
following this statement,
941 the location in the disclosure materials
where the extent to
942 which added residential buildings
and units may substantially
943 differ is described shall be stated.
944 (d)
A statement of the maximum number of buildings
945 containing units, the maximum and
minimum numbers of units in
946 each building, the maximum number
of units, and the minimum and
947 maximum square footage of the units
that may be contained within
948 each parcel of land which may be added
to the condominium.
949 (15)
If a condominium created on or after July 1, 2000, is
950 or may become part of a multicondominium,
the following
951 information must be provided:
952 (a)
A statement in conspicuous type in substantially the
953 following form: THIS CONDOMINIUM IS
(MAY BE) PART OF A
954 MULTICONDOMINIUM DEVELOPMENT IN WHICH
OTHER CONDOMINIUMS WILL
955 (MAY) BE OPERATED BY THE SAME ASSOCIATION.
Immediately following
956 this statement, the location in the
prospectus or offering
957 circular and its exhibits where the
multicondominium aspects of
958 the offering are described must be
stated.
959 (b)
A summary of the provisions in the declaration,
960 articles of incorporation, and bylaws
which establish and
961 provide for the operation of the multicondominium,
including a
962 statement as to whether unit owners
in the condominium will have
963 the right to use recreational or other
facilities located or
964 planned to be located in other condominiums
operated by the same
965 association, and the manner of sharing
the common expenses
966 related to such facilities.
967 (c)
A statement of the minimum and maximum number of
968 condominiums, and the minimum and
maximum number of units in
969 each of those condominiums, which
will or may be operated by the
970 association, and the latest date by
which the exact number will
971 be finally determined.
972 (d)
A statement as to whether any of the condominiums in
973 the multicondominium may include units
intended to be used for
974 nonresidential purposes and the purpose
or purposes permitted
975 for such use.
976 (e)
A general description of the location and approximate
977 acreage of any land on which any additional
condominiums to be
978 operated by the association may be
located.
979 (16)
If the condominium is created by conversion of
980 existing improvements, the following
information shall be
981 stated:
982 (a)
The information required by s. 718.616.
983 (b)
A caveat that there are no express warranties unless
984 they are stated in writing by the
developer.
985 (17)
A summary of the restrictions, if any, to be imposed
986 on units concerning the use of any
of the condominium property,
987 including statements as to whether
there are restrictions upon
988 children and pets, and reference to
the volumes and pages of the
989 condominium documents where such restrictions
are found, or if
990 such restrictions are contained elsewhere,
then a copy of the
991 documents containing the restrictions
shall be attached as an
992 exhibit.
993 (18)
If there is any land that is offered by the developer
994 for use by the unit owners and that
is neither owned by them nor
995 leased to them, the association, or
any entity controlled by
996 unit owners and other persons having
the use rights to such
997 land, a statement shall be made as
to how such land will serve
998 the condominium. If any part of such
land will serve the
999 condominium, the statement shall describe
the land and the
1000 nature and term of service, and the
declaration or other
1001 instrument creating such servitude
shall be included as an
1002 exhibit.
1003 (19)
The manner in which utility and other services,
1004 including, but not limited to, sewage
and waste disposal, water
1005 supply, and storm drainage, will
be provided and the person or
1006 entity furnishing them.
1007 (20)
An explanation of the manner in which the
1008 apportionment of common expenses
and ownership of the common
1009 elements has been determined.
1010 (21)
An estimated operating budget for the condominium and
1011 the association, and a schedule of
the unit owner's expenses
1012 shall be attached as an exhibit and
shall contain the following
1013 information:
1014 (a)
The estimated monthly and annual expenses of the
1015 condominium and the association that
are collected from unit
1016 owners by assessments.
1017 (b)
The estimated monthly and annual expenses of each unit
1018 owner for a unit, other than common
expenses paid by all unit
1019 owners, payable by the unit owner
to persons or entities other
1020 than the association, as well as
to the association, including
1021 fees assessed pursuant to s. 718.113(1)
for maintenance of
1022 limited common elements where such
costs are shared only by
1023 those entitled to use the limited
common element, and the total
1024 estimated monthly and annual expense.
There may be excluded from
1025 this estimate expenses which are
not provided for or
1026 contemplated by the condominium documents,
including, but not
1027 limited to, the costs of private
telephone; maintenance of the
1028 interior of condominium units, which
is not the obligation of
1029 the association; maid or janitorial
services privately
1030 contracted for by the unit owners;
utility bills billed directly
1031 to each unit owner for utility services
to his or her unit;
1032 insurance premiums other than those
incurred for policies
1033 obtained by the condominium; and
similar personal expenses of
1034 the unit owner. A unit owner's estimated
payments for
1035 assessments shall also be stated
in the estimated amounts for
1036 the times when they will be due.
1037 (c)
The estimated items of expenses of the condominium and
1038 the association, except as excluded
under paragraph (b),
1039 including, but not limited to, the
following items, which shall
1040 be stated either as an association
expense collectible by
1041 assessments or as unit owners' expenses
payable to persons other
1042 than the association:
1043 1.
Expenses for the association and condominium:
1044 a.
Administration of the association.
1045 b.
Management fees.
1046 c.
Maintenance.
1047 d.
Rent for recreational and other commonly used
1048 facilities.
1049 e.
Taxes upon association property.
1050 f.
Taxes upon leased areas.
1051 g.
Insurance.
1052 h.
Security provisions.
1053 i.
Other expenses.
1054 j.
Operating capital.
1055 k.
Reserves.
1056 l.
Fees payable to the division.
1057 2.
Expenses for a unit owner:
1058 a.
Rent for the unit, if subject to a lease.
1059 b.
Rent payable by the unit owner directly to the lessor
1060 or agent under any recreational lease
or lease for the use of
1061 commonly used facilities, which use
and payment is a mandatory
1062 condition of ownership and is not
included in the common expense
1063 or assessments for common maintenance
paid by the unit owners to
1064 the association.
1065 (d)
The estimated amounts shall be stated for a period of
1066 at least 12 months and may distinguish
between the period prior
1067 to the time unit owners other than
the developer elect a
1068 majority of the board of administration
and the period after
1069 that date.
1070 (22)
A schedule of estimated closing expenses to be paid
1071 by a buyer or lessee of a unit and
a statement of whether title
1072 opinion or title insurance policy
is available to the buyer and,
1073 if so, at whose expense.
1074 (23)
The identity of the developer and the chief operating
1075 officer or principal directing the
creation and sale of the
1076 condominium and a statement of its
and his or her experience in
1077 this field.
1078 (24)
Copies of the following, to the extent they are
1079 applicable, shall be included as
exhibits:
1080 (a)
The declaration of condominium, or the proposed
1081 declaration if the declaration has
not been recorded.
1082 (b)
The articles of incorporation creating the
1083 association.
1084 (c)
The bylaws of the association.
1085 (d)
The ground lease or other underlying lease of the
1086 condominium.
1087 (e)
The management agreement and all maintenance and other
1088 contracts for management of the association
and operation of the
1089 condominium and facilities used by
the unit owners having a
1090 service term in excess of 1 year.
1091 (f)
The estimated operating budget for the condominium and
1092 the required schedule of unit owners'
expenses.
1093 (g)
A copy of the floor plan of the unit and the plot plan
1094 showing the location of the residential
buildings and the
1095 recreation and other common areas.
1096 (h)
The lease of recreational and other facilities that
1097 will be used only by unit owners
of the subject condominium.
1098 (i)
The lease of facilities used by owners and others.
1099 (j)
The form of unit lease, if the offer is of a
1100 leasehold.
1101 (k)
A declaration of servitude of properties serving the
1102 condominium but not owned by unit
owners or leased to them or
1103 the association.
1104 (l)
The statement of condition of the existing building or
1105 buildings, if the offering is of
units in an operation being
1106 converted to condominium ownership.
1107 (m)
The statement of inspection for termite damage and
1108 treatment of the existing improvements,
if the condominium is a
1109 conversion.
1110 (n)
The form of agreement for sale or lease of units.
1111 (o)
A copy of the agreement for escrow of payments made to
1112 the developer prior to closing.
1113 (p)
A copy of the documents containing any restrictions on
1114 use of the property required by subsection
(17).
1115 (25)
Any prospectus or offering circular complying, prior
1116 to the effective date of this act,
with the provisions of former
1117 ss. 711.69 and 711.802 may continue
to be used without amendment
1118 or may be amended to comply with
the provisions of this chapter.
1119 (26)
A brief narrative description of the location and
1120 effect of all existing and intended
easements located or to be
1121 located on the condominium property
other than those described
1122 in the declaration.
1123 (27)
If the developer is required by state or local
1124 authorities to obtain acceptance
or approval of any dock or
1125 marina facilities intended to serve
the condominium, a copy of
1126 any such acceptance or approval acquired
by the time of filing
1127 with the division under s. 718.502(1)
or a statement that such
1128 acceptance or approval has not been
acquired or received.
1129 (28)
Evidence demonstrating that the developer has an
1130 ownership, leasehold, or contractual
interest in the land upon
1131 which the condominium is to be developed.
1132 (29)
Whether the association is currently a party of
1133 record in
litigation in which the association may face liability
1134 of $25,000
or more and, if so, the nature and title of that
1135 litigation.
1136 Section
17. All of the records, personnel, property,
and
1137 unexpended
balances of appropriations, allocations, or other
1138 funds for
the administration of part VIII of chapter 468,
1139 Florida
Statutes, shall be transferred by a type two transfer as
1140 defined
in s. 20.06(2), Florida Statutes, from the Division of
1141 Professions
of the Department of Business and Professional
1142 Regulation
to the Division of Florida Land Sales, Condominiums,
1143 and Mobile
Homes of the Department of Business and Professional
1144 Regulation.
1145 Section
18. The Department of Business and Professional
1146 Regulation
may continue to prosecute any existing legal
1147 proceedings
and related administrative cases that are in
1148 existence
on the effective date of this act.
1149 Section
19. Section 718.510, Florida Statutes, is created
1150 to read:
1151 718.510
Condominium Owners' Bill of Rights.--The division
1152 shall adopt
rules to provide for a brochure entitled
1153 "Condominium
Owners' Bill of Rights," which shall explain what
1154 rights are
afforded to condominium owners and potential
1155 purchasers
of condominiums under this chapter. It is the intent
1156 of the Legislature
that this brochure be widely distributed and
1157 as conveniently
available as possible.
1158 Section
20. This act shall take effect upon becoming a
1159 law.
CODING: Words stricken
are deletions; words underlined are
additions. |