| 4068 |
Section
51. Subsections (2), (4), (7), (8), (9), and (10) |
| 4069 |
of section 720.301,
Florida Statutes, are amended, and |
| 4070 |
subsection (14) is added
to that section, to read: |
| 4071 |
720.301 Definitions.--As
used in this chapter, the term: |
| 4072 |
(2) "Common
area" means all real property within a |
| 4073 |
community which is owned
or leased by an association or |
| 4074 |
dedicated
for use or maintenance by the association or its |
| 4075 |
members, including,
regardless of whether title has been |
| 4076 |
conveyed to the
association: |
| 4077 |
(a) Real
property the use of which is dedicated to the |
| 4078 |
association or its
members by a recorded plat; or |
| 4079 |
(b) Real
property committed by a declaration of covenants |
| 4080 |
to be leased or conveyed
to the association. |
| 4081 |
(4) "Declaration
of covenants," or "declaration," means a |
| 4082 |
recorded written
instrument in the nature of covenants running |
| 4083 |
with the land,
according to the recorded plat, which subjects |
| 4084 |
the land comprising the
community to the jurisdiction and |
| 4085 |
control of an association
or associations in which the owners of |
| 4086 |
the parcels,
or their association representatives, must be |
| 4087 |
members. Upon
the execution of the sale of the first lot, a |
| 4088 |
declaration
may not be amended without the vote of approval of |
| 4089 |
two-thirds
majority of the owners of residential parcels that |
| 4090 |
have
been purchased, with a tie vote resulting in a negative |
| 4091 |
vote.
Exceptions shall be amendments identifying additional |
| 4092 |
phases
of the community as they are constructed. These |
| 4093 |
amendments
may not contain any other changes to the existing |
| 4094 |
declaration. |
| 4095 |
(7) "Division"
means the Division of Florida Land Sales, |
| 4096 |
Condominiums, Homeowners'
Associations, and Mobile Homes in the |
| 4097 |
Department of Business
and Professional Regulation. |
| 4098 |
(8) "Governing
documents" means: |
| 4099 |
(a) Each
set of The recorded
declaration of covenants for |
| 4100 |
a community, and all duly
adopted and recorded amendments, |
| 4101 |
supplements, and recorded
exhibits thereto; and |
| 4102 |
(b) The
articles of incorporation and bylaws of the |
| 4103 |
homeowners' association,
and any duly adopted amendments |
| 4104 |
thereto. |
| 4105 |
|
| 4106 |
When
different sets of covenants exist for each recorded plat, |
| 4107 |
those
covenants shall only apply to the plat for which they are |
| 4108 |
recorded
and specified. The different sets of covenants may not |
| 4109 |
be
commingled. |
| 4110 |
(9) "Homeowners'
association" or "association" means a |
| 4111 |
Florida corporation,
as authorized by chapter 720 or an |
| 4112 |
authorized
not-for-profit corporation pursuant to chapter 617, |
| 4113 |
responsible for the administration
operation of a community or a |
| 4114 |
mobile home subdivision
in compliance with applicable federal, |
| 4115 |
state,
and local laws and the governing documents of the |
| 4116 |
association.
In addition, a homeowners' association means a |
| 4117 |
Florida
corporation in which the voting membership is made up of |
| 4118 |
parcel owners or their
agents, or a combination thereof, and in |
| 4119 |
which membership is a
mandatory condition of parcel ownership, |
| 4120 |
and which is authorized
to impose assessments that, if unpaid, |
| 4121 |
may become a lien on the
parcel. Any homeowners' association or |
| 4122 |
other
named association that administers a residential community |
| 4123 |
where
membership is mandatory shall be required to comply with |
| 4124 |
this
chapter, except if exempted. The term "homeowners' |
| 4125 |
association" does
not include a community development district |
| 4126 |
or other similar special
taxing district created pursuant to |
| 4127 |
statute. |
| 4128 |
(10) "Member"
means a member of an association, and may |
| 4129 |
include, but is not
limited to, a parcel owner or an association |
| 4130 |
representing
parcel owners or a combination thereof, and |
| 4131 |
includes any person or
entity obligated by the governing |
| 4132 |
documents to pay an
assessment or amenity fee. |
| 4133 |
(14) "Homeowners'
Association Advisory Council" means a |
| 4134 |
group
of persons appointed to recommend changes in laws that |
| 4135 |
affect
the administration of mandatory homeowners' associations. |
| 4136 |
Section
52. Subsections (1) and (2) of section 720.302, |
| 4137 |
Florida Statutes, are
amended to read: |
| 4138 |
720.302 Purposes,
scope, and application.-- |
| 4139 |
(1) The
purposes of this chapter are to give statutory |
| 4140 |
recognition to
corporations not for profit that administer
or |
| 4141 |
operate residential
communities in this state, to provide |
| 4142 |
regulations
procedures for operating
homeowners' associations, |
| 4143 |
and to protect the rights
of association members without unduly |
| 4144 |
impairing the ability of
such associations to perform their |
| 4145 |
functions as
authorized by federal, state, and local laws and |
| 4146 |
the
governing documents of the association. |
| 4147 |
(2) Having
provided certain powers and authority to |
| 4148 |
homeowners'
associations and deed restrictions created by |
| 4149 |
developers
of mandated properties in residential communities, |
| 4150 |
the Legislature
recognizes that it is necessary to provide |
| 4151 |
regulatory
oversight to ensure compliance with federal, state, |
| 4152 |
and
local laws. It is the intent of the Legislature to protect |
| 4153 |
the
rights of parcel owners by ensuring that the powers and |
| 4154 |
authority
granted to homeowners' associations and deed |
| 4155 |
restrictions
created by developers of mandated properties in |
| 4156 |
residential
communities conform to a system of checks and |
| 4157 |
balances
to prevent abuses of governmental authority. The |
| 4158 |
Department
of Business and Professional Regulation shall create |
| 4159 |
a
Division of Mandated Properties. No later than July 1, 2008, |
| 4160 |
the
division shall establish a process for collecting an annual |
| 4161 |
fee
which shall not exceed $4 for each association member in |
| 4162 |
communities
administered by the association during each of the |
| 4163 |
following
2 years and, thereafter, shall not exceed the Cost of |
| 4164 |
Living
Index. Funds collected shall be deposited in the Division |
| 4165 |
of
Florida Land Sales, Condominiums, Homeowners' Associations, |
| 4166 |
and
Mobile Homes Trust Fund Trust Fund. Funds shall be utilized |
| 4167 |
by the
division for, but not limited to, the review and approval |
| 4168 |
of
deed restrictions before releasing for recording at the |
| 4169 |
county
level by the developer or owner of the initial lots to be |
| 4170 |
developed;
education; enforcement; investigation; and |
| 4171 |
prosecution
of policies and procedures related to mandated |
| 4172 |
properties.
Upon transition of authorities, duties, |
| 4173 |
responsibilities,
and rights from the developer to the parcel |
| 4174 |
owners,
all amendments, alterations, or modifications to the |
| 4175 |
governing
documents must be approved by at least two-thirds of |
| 4176 |
the
parcel owners or homeowners' association members. The |
| 4177 |
governing
documents may not contain provisions that reduce this |
| 4178 |
percentage
of majority approval for changes to the governing |
| 4179 |
documents.
The ombudsman may not engage the services of industry |
| 4180 |
partisans
with a vested interest in the administration of deed- |
| 4181 |
restricted
communities or in the mandatory homeowners' |
| 4182 |
association
to implement its powers, who have practiced in this |
| 4183 |
field
within the last 3 years. Furthermore not
in the best |
| 4184 |
interest
of homeowners' associations or the individual |
| 4185 |
association
members thereof to create or impose a bureau or |
| 4186 |
other
agency of state government to regulate the affairs of |
| 4187 |
homeowners'
associations. However, in accordance with s. |
| 4188 |
720.311, the Legislature
finds that homeowners' associations and |
| 4189 |
their individual members
will benefit from an expedited |
| 4190 |
alternative process for
resolution of election and recall |
| 4191 |
disputes and presuit
mediation of other disputes involving |
| 4192 |
covenant enforcement,
disputes relating to the transition of |
| 4193 |
control
of the association from the developer or owner to |
| 4194 |
members
of the association, and authorizes the department to |
| 4195 |
hear, administer, and
determine these disputes as more fully set |
| 4196 |
forth in this chapter.
Further, the Legislature recognizes that |
| 4197 |
certain contract rights
have been created for the benefit of |
| 4198 |
homeowners' associations
and members thereof before the |
| 4199 |
effective date of this
act and that ss. 720.301-720.407 are not |
| 4200 |
intended to impair such
contract rights, as long as they are |
| 4201 |
accepted
by a two-thirds majority of the homeowners' association |
| 4202 |
members,
including, but not limited to, the rights of the |
| 4203 |
developer to complete the
community as initially contemplated. |
| 4204 |
Section
53. Section 720.303, Florida Statutes, is amended |
| 4205 |
to read: |
| 4206 |
720.303 Association
powers and duties; meetings of board; |
| 4207 |
official records;
budgets; financial reporting; association |
| 4208 |
funds; recalls.-- |
| 4209 |
(1) POWERS
AND DUTIES.-- |
| 4210 |
(a) An
association which operates a community as defined |
| 4211 |
in s. 720.301, must be incorporated
in this state, operated by |
| 4212 |
an
association that is a Florida corporation. After October 1, |
| 4213 |
1995,
the association must be incorporated and the initial |
| 4214 |
governing documents must
be recorded in the official records of |
| 4215 |
the county in which the
community is located. An association may |
| 4216 |
operate
more than one community. |
| 4217 |
(b) The
officers and directors of an association have a |
| 4218 |
fiduciary relationship of
to the members who are served by
the |
| 4219 |
association. |
| 4220 |
(c) The
powers and duties of an association include those |
| 4221 |
set forth in this chapter
and, except as expressly limited or |
| 4222 |
restricted
in this chapter, those specifically
set forth in the |
| 4223 |
governing documents. The
officers and directors of the |
| 4224 |
association
may not take any action that is inconsistent with |
| 4225 |
the
declaration of covenants. |
| 4226 |
(d) After
control of the association is obtained by |
| 4227 |
members from
other than the developer, the
association may |
| 4228 |
institute, maintain, or
settle on ,
or appeal actions or |
| 4229 |
hearings
in its name on behalf of the all
members concerning |
| 4230 |
matters of common
interest to the members, including, but not |
| 4231 |
limited
to, the common areas; roof or structural components of a |
| 4232 |
building,
or other improvements for which the association is |
| 4233 |
responsible;
mechanical, electrical, or plumbing elements |
| 4234 |
serving
an improvement or building for which the association is |
| 4235 |
responsible;
representations of the developer pertaining to any |
| 4236 |
existing
or proposed commonly used facility; and protesting ad |
| 4237 |
valorem
taxes on commonly used facilities. The association may |
| 4238 |
defend
actions in eminent domain or bring inverse condemnation |
| 4239 |
actions.
Before commencing any legal action
litigation against |
| 4240 |
any party in the name of
the association involving amounts in |
| 4241 |
controversy in excess of $50,000
$100,000, the association must |
| 4242 |
obtain the affirmative
approval of a majority of the members of |
| 4243 |
the association voting
interests at a meeting of the association |
| 4244 |
membership
at which a quorum is present has
been attained. |
| 4245 |
(e) The
association may enter into contracts for the |
| 4246 |
benefit
of the members of the association, including, but not |
| 4247 |
limited
to, contracts for maintaining, repairing, or improving |
| 4248 |
the
common areas of the association. This subsection does not |
| 4249 |
limit
any statutory or common-law right of any individual member |
| 4250 |
or
class of members to bring any action without participation by |
| 4251 |
the
association. |
| 4252 |
(f) A
member does not have the authority
to act for the |
| 4253 |
association by virtue of
being a member of the association.
An |
| 4254 |
association
may have more than one class of members and may |
| 4255 |
issue
membership certificates. |
| 4256 |
(g) In
any civil or criminal action between a member and |
| 4257 |
the
association, it shall not be a defense by the association |
| 4258 |
that
the association's actions, although incompatible with the |
| 4259 |
declaration
of covenants, have been uniformly applied. |
| 4260 |
(h) An
association may not restrict a member's freedom of |
| 4261 |
association
and may not limit the number of guests a member may |
| 4262 |
have
within a 24-hour period. |
| 4263 |
(i) An
association of 15 or fewer parcels
parcel owners |
| 4264 |
may enforce only the
requirements of those deed restrictions |
| 4265 |
established prior to the
purchase of each parcel upon an |
| 4266 |
affected parcel owner or
owners. |
| 4267 |
(j) The
officers and directors of an association may be |
| 4268 |
personally
liable for damages to a member if the actions of the |
| 4269 |
officers
and directors demonstrate a pattern of behavior |
| 4270 |
intended
to harass a member of the association. |
| 4271 |
(k) Any
action of the association by and through the |
| 4272 |
officers
and directors that limits the legal use of any portion |
| 4273 |
of a
member's property that is incompatible with the declaration |
| 4274 |
of
covenants shall entitle the member to compensation for the |
| 4275 |
fair
market value of that portion of the member's property, the |
| 4276 |
use of
which is being restricted. |
| 4277 |
(l) In
any association with more than 50 but fewer than 75 |
| 4278 |
parcels,
for purposes of establishing setback limits, any parcel |
| 4279 |
of 1
acre or less shall be deemed to have one front for purposes |
| 4280 |
of
determining the required front setback, if any. Only those |
| 4281 |
setbacks
specifically set forth in the declaration of covenants |
| 4282 |
may be
enforced by the association. Where the covenants are |
| 4283 |
silent,
the applicable county or municipal setbacks shall apply. |
| 4284 |
(2) BOARD
MEETINGS.-- |
| 4285 |
(a) A
meeting of the board of directors of an association |
| 4286 |
occurs whenever a quorum
of the board gathers to conduct |
| 4287 |
association business. All
meetings of the board must be open to |
| 4288 |
all members except for
meetings between the board and its |
| 4289 |
attorney with respect to
proposed or pending litigation where |
| 4290 |
the contents of the
discussion would otherwise be governed by |
| 4291 |
the attorney-client
privilege. |
| 4292 |
(b) Members
have the right to attend all meetings of the |
| 4293 |
board and to speak on any
matter placed on the agenda by |
| 4294 |
petition
of the voting interests for at least 3 minutes. The |
| 4295 |
association may adopt
written reasonable rules expanding the |
| 4296 |
right of members to speak
and governing the frequency, duration, |
| 4297 |
and other manner of
member statements, which rules must be |
| 4298 |
consistent with this
paragraph and may include a sign-up sheet |
| 4299 |
for
members wishing to speak. Notwithstanding any other law,
the |
| 4300 |
requirement that board
meetings and committee meetings be open |
| 4301 |
to the members is
inapplicable to meetings between the board or |
| 4302 |
a committee and the
association's attorney, with respect to |
| 4303 |
meetings of the board
held for the purpose of discussing |
| 4304 |
personnel matters. |
| 4305 |
(c) The
bylaws shall provide for giving notice to parcel |
| 4306 |
owners and members of all
board meetings and, if they do not do |
| 4307 |
so, shall be deemed to
provide the following: |
| 4308 |
1. Notices
of all board meetings and the agendas
must be |
| 4309 |
posted in a conspicuous
place in the community at least 48 hours |
| 4310 |
in advance of a meeting,
except in an emergency. In the |
| 4311 |
alternative, if notice is
not posted in a conspicuous place in |
| 4312 |
the community, notice of
each board meeting and agenda must
be |
| 4313 |
mailed or delivered to
each member at least 7 days before the |
| 4314 |
meeting, except in an
emergency. Notwithstanding this general |
| 4315 |
notice requirement, for
communities with more than 100 members, |
| 4316 |
the bylaws may provide
for a reasonable alternative to posting |
| 4317 |
or mailing of notice for
each board meeting, including |
| 4318 |
publication of notice,
provision of a schedule of board |
| 4319 |
meetings, or the
conspicuous posting and repeated broadcasting |
| 4320 |
of the notice on a
closed-circuit cable television system |
| 4321 |
serving the homeowners'
association. However, if broadcast |
| 4322 |
notice is used in lieu of
a notice posted physically in the |
| 4323 |
community, the notice
must be broadcast at least four times |
| 4324 |
every broadcast hour of
each day that a posted notice is |
| 4325 |
otherwise required. When
broadcast notice is provided, the |
| 4326 |
notice and agenda must be
broadcast in a manner and for a |
| 4327 |
sufficient continuous
length of time so as to allow an average |
| 4328 |
reader to observe the
notice and read and comprehend the entire |
| 4329 |
content of the notice and
the agenda. The bylaws or amended |
| 4330 |
bylaws may provide for
giving notice by electronic transmission |
| 4331 |
in a manner authorized by
law for meetings of the board of |
| 4332 |
directors, committee
meetings requiring notice under this |
| 4333 |
section, and annual and
special meetings of the members; |
| 4334 |
however, a member must
consent in writing to receiving notice by |
| 4335 |
electronic transmission. |
| 4336 |
2. An
assessment may not be levied at a board meeting |
| 4337 |
unless the notice of the
meeting includes a statement that |
| 4338 |
assessments will be
considered and the nature of the |
| 4339 |
assessments. Written
notice of any meeting at which special |
| 4340 |
assessments will be
considered or at which amendments to rules |
| 4341 |
regarding parcel use will
be considered must be mailed, |
| 4342 |
delivered, or
electronically transmitted to the members and |
| 4343 |
parcel owners and posted
conspicuously on the property or |
| 4344 |
broadcast on
closed-circuit cable television not less than 14 |
| 4345 |
days before the meeting. |
| 4346 |
3. Directors
may not vote by proxy or by secret ballot at |
| 4347 |
board meetings,
except that secret ballots may be used in the |
| 4348 |
election
of officers. This subsection also applies to the |
| 4349 |
meetings of any committee
or other similar body, when a final |
| 4350 |
decision will be made
regarding the expenditure of association |
| 4351 |
funds, and to any body
vested with the power to approve or |
| 4352 |
disapprove architectural
decisions with respect to a specific |
| 4353 |
parcel of residential
property owned by a member of the |
| 4354 |
community. |
| 4355 |
(d) If
10 20
percent of the total voting interests |
| 4356 |
petition the board to
address an item of business, the board |
| 4357 |
shall at its next regular
board meeting or at a special meeting |
| 4358 |
of the board, but not
later than 60 days after the receipt of |
| 4359 |
the petition, take the
petitioned item up on an agenda. The |
| 4360 |
board shall give all
members notice of the meeting at which the |
| 4361 |
petitioned item shall be
addressed in accordance with the 14-day |
| 4362 |
notice requirement
pursuant to subparagraph (c)2. Each member |
| 4363 |
shall have the right to
speak for at least 3 minutes on each |
| 4364 |
matter placed on the
agenda by petition. The board shall address |
| 4365 |
all
items on the agenda , provided
that the member signs the |
| 4366 |
sign-up
sheet, if one is provided, or submits a written request |
| 4367 |
to
speak prior to the meeting. Other than addressing the |
| 4368 |
petitioned
item at the meeting, the board is not obligated to |
| 4369 |
take
any other action requested by the petition. |
| 4370 |
(e) Detailed
agendas for board meetings with specific |
| 4371 |
items
that will be addressed shall be published and made |
| 4372 |
available
to all members no less than 7 days prior to the date |
| 4373 |
of the
board meeting. |
| 4374 |
(3) MINUTES.--Minutes
of all meetings of the members of an |
| 4375 |
association and of the
board of directors of an association must |
| 4376 |
be maintained in written
form or in another form that can be |
| 4377 |
converted into written
form within a reasonable time. A vote or |
| 4378 |
abstention from voting on
each matter voted upon by for
each |
| 4379 |
director present at a
board meeting shall must
be recorded in |
| 4380 |
the minutes. |
| 4381 |
(4) OFFICIAL
RECORDS.--The association shall maintain each |
| 4382 |
of the following items,
when applicable, which constitute the |
| 4383 |
official records of the
association: |
| 4384 |
(a) Copies
of any plans, specifications, permits, and |
| 4385 |
warranties related to
improvements constructed on the common |
| 4386 |
areas or other property as
platted and recorded that the |
| 4387 |
association is obligated
to maintain, repair, or replace. If |
| 4388 |
such
documents do not exist, the association shall obtain the |
| 4389 |
documents
or forfeit the right to assess any fees to maintain |
| 4390 |
the
common areas of property. |
| 4391 |
(b) A
copy of the bylaws of the association and of each |
| 4392 |
amendment to the bylaws. |
| 4393 |
(c) A
copy of the articles of incorporation of the |
| 4394 |
association and of each
amendment thereto. |
| 4395 |
(d) A
copy of each set of the
declaration of covenants and |
| 4396 |
a copy of each amendment
thereto. |
| 4397 |
(e) A
copy of the current rules of the homeowners' |
| 4398 |
association. |
| 4399 |
(f) The
minutes of all meetings of the board of directors |
| 4400 |
and of the members, which
minutes must be retained for at least |
| 4401 |
7 years. |
| 4402 |
(g) A
current roster of all members and their mailing |
| 4403 |
addresses and parcel
identifications. The association shall also |
| 4404 |
maintain the electronic
mailing addresses and the numbers |
| 4405 |
designated by members for
receiving notice sent by electronic |
| 4406 |
transmission of those
members consenting to receive notice by |
| 4407 |
electronic transmission.
The electronic mailing addresses and |
| 4408 |
numbers provided by unit
owners to receive notice by electronic |
| 4409 |
transmission shall be
removed from association records when |
| 4410 |
consent to receive notice
by electronic transmission is revoked. |
| 4411 |
However, the association
is not liable for an erroneous |
| 4412 |
disclosure of the
electronic mail address or the number for |
| 4413 |
receiving electronic
transmission of notices. |
| 4414 |
(h) All
of the association's insurance policies or a copy |
| 4415 |
thereof, which policies
must be retained for at least 7 years. |
| 4416 |
(i) A
current copy of all contracts to which the |
| 4417 |
association is a party,
including, without limitation, any |
| 4418 |
management agreement,
lease, or other contract under which the |
| 4419 |
association has any
obligation or responsibility. A contract or |
| 4420 |
written
agreement may not be allowed to maintain property that |
| 4421 |
is
not owned by and deeded to the association. Bids received
by |
| 4422 |
the association for work
to be performed must also be considered |
| 4423 |
official records and must
be kept for a period of 1 year. |
| 4424 |
(j) The
financial and accounting records of the |
| 4425 |
association, kept
according to good accounting practices. All |
| 4426 |
financial and accounting
records shall must
be maintained for a |
| 4427 |
period of at least 7
years. The financial and accounting records |
| 4428 |
must include: |
| 4429 |
1. Accurate,
itemized, and detailed records of all |
| 4430 |
receipts and
expenditures. |
| 4431 |
2. A
current account and a periodic statement of the |
| 4432 |
account for each member,
designating the name and current |
| 4433 |
address of each member
who is obligated to pay assessments, the |
| 4434 |
due date and amount of
each assessment or other charge against |
| 4435 |
the member, the date and
amount of each payment on the account, |
| 4436 |
and the balance due. |
| 4437 |
3. All
tax returns, financial statements, and financial |
| 4438 |
reports of the
association. |
| 4439 |
4. Any
other records that identify, measure, record, or |
| 4440 |
communicate financial
information. |
| 4441 |
(k) A
copy of the disclosure summary described in s. |
| 4442 |
720.401(1). |
| 4443 |
(l) All
other written records of the association not |
| 4444 |
specifically included in
the foregoing which are related to the |
| 4445 |
operation of the
association. |
| 4446 |
(m) All
interpretations of any governing documents, as |
| 4447 |
provided
by any legal source or attorney as long as they are not |
| 4448 |
part
of a pending lawsuit. |
| 4449 |
(n) All
architectural requests and approvals or denials, |
| 4450 |
which
shall be maintained as long as the association exists or |
| 4451 |
is
active. |
| 4452 |
(5) INSPECTION
AND COPYING OF RECORDS.--The official |
| 4453 |
records shall be
maintained within the county in which the |
| 4454 |
governing
documents are recorded state
and must be open to |
| 4455 |
inspection and available
for photocopying by machine, video, |
| 4456 |
digital
cameras, or any other methods available to members or |
| 4457 |
their authorized agents
at reasonable times and places within 10 |
| 4458 |
business days after
receipt of a written request for access. |
| 4459 |
This subsection may be
complied with by having a copy of the |
| 4460 |
official records
available for inspection or copying in the |
| 4461 |
community. If the
association has a photocopy machine available |
| 4462 |
where the records are
maintained, it must provide parcel owners |
| 4463 |
with copies on request
during the inspection if the entire |
| 4464 |
request
is limited to no more than 25 pages. |
| 4465 |
(a) The
failure of an association to provide access to the |
| 4466 |
records within 10
business days after receipt of a written |
| 4467 |
request creates a
rebuttable presumption that the association |
| 4468 |
willfully failed to
comply with this subsection. |
| 4469 |
(b) A
member who is denied access to official records is |
| 4470 |
entitled to the actual
damages or minimum damages for the |
| 4471 |
association's willful
failure to comply with this subsection. |
| 4472 |
The minimum damages are
to be $100 $50 per calendar day up to 10 |
| 4473 |
days, the calculation to
begin on the 11th business day after |
| 4474 |
receipt of the written
request. |
| 4475 |
(c) The
association may adopt reasonable written rules |
| 4476 |
governing the frequency,
time, location, notice, records to be |
| 4477 |
inspected, and
manner of inspections, but may not impose a |
| 4478 |
requirement that a parcel
owner demonstrate any proper purpose |
| 4479 |
for the inspection, state
any reason for the inspection, or |
| 4480 |
limit a parcel owner's
right to inspect records to less than one |
| 4481 |
8-hour business day per
month. The association may only impose |
| 4482 |
fees to cover the actual
costs of providing copies of the |
| 4483 |
official records,
including, without limitation, the costs of |
| 4484 |
copying.
The association may charge up to 5
50 cents per page |
| 4485 |
for copies made on the
association's photocopier. If the |
| 4486 |
association does not have
a photocopy machine available where |
| 4487 |
the records are kept, or
if the records requested to be copied |
| 4488 |
exceed 25 pages in
length, the association may have copies made |
| 4489 |
by an outside vendor and
may charge the actual cost of copying |
| 4490 |
only.
The association may impose a one-time fee not
to exceed 1 |
| 4491 |
cent
per page and limited to a total of $5 if the parcel owner |
| 4492 |
provides
the necessary equipment and materials for copying and |
| 4493 |
the
labor to make the requested copies. The association shall |
| 4494 |
maintain an adequate
number of copies of the recorded governing |
| 4495 |
documents, to ensure
their availability to members and |
| 4496 |
prospective members.
Notwithstanding the provisions of this |
| 4497 |
paragraph, the following
records shall not be accessible to |
| 4498 |
members or parcel owners: |
| 4499 |
1. Any
record protected by the lawyer-client privilege as |
| 4500 |
described in s. 90.502
and any record protected by the work- |
| 4501 |
product privilege,
including, but not limited to, any record |
| 4502 |
prepared by an
association attorney or prepared at the |
| 4503 |
attorney's express
direction which reflects a mental impression, |
| 4504 |
conclusion, litigation
strategy, or legal theory of the attorney |
| 4505 |
or the association and
was prepared exclusively for civil or |
| 4506 |
criminal litigation or
for adversarial administrative |
| 4507 |
proceedings or which was
prepared in anticipation of imminent |
| 4508 |
civil or criminal
litigation or imminent adversarial |
| 4509 |
administrative
proceedings until the conclusion of the |
| 4510 |
litigation or adversarial
administrative proceedings. |
| 4511 |
2. Information
obtained by an association in connection |
| 4512 |
with the approval of the
lease, sale, or other transfer of a |
| 4513 |
parcel. |
| 4514 |
3. Disciplinary,
health, insurance, and personnel records |
| 4515 |
of the association's
employees. |
| 4516 |
4. Medical
records of parcel owners or community |
| 4517 |
residents. |
| 4518 |
(6) BUDGETS.-- |
| 4519 |
(a) The
association shall prepare an annual budget that |
| 4520 |
sets
out the annual operating expenses. The budget must reflect |
| 4521 |
the estimated revenues
and expenses for that year and the |
| 4522 |
estimated surplus or
deficit as of the end of the current year. |
| 4523 |
The budget must set out
separately all fees or charges paid for |
| 4524 |
by
the association for recreational amenities, whether owned
by |
| 4525 |
the association, the
developer, or another person. The |
| 4526 |
association shall provide
each member with a copy of the annual |
| 4527 |
budget or a written
notice that a copy of the budget is |
| 4528 |
available upon request at
no charge to the member. The copy must |
| 4529 |
be provided to the member
within the time limits set forth in |
| 4530 |
subsection (5). |
| 4531 |
(b) In
addition to annual operating expenses, the budget |
| 4532 |
may include reserve
accounts for capital expenditures and |
| 4533 |
deferred maintenance
for which the association is responsible to |
| 4534 |
the extent that the
governing documents do not limit increases |
| 4535 |
in assessments,
including reserves. If the budget of the |
| 4536 |
association includes
reserve accounts, such reserves shall be |
| 4537 |
determined,
maintained, and waived in the manner provided in |
| 4538 |
this subsection. Once
an association provides for reserve |
| 4539 |
accounts in the
budget, the association shall thereafter |
| 4540 |
determine, maintain,
and waive reserves in compliance with the |
| 4541 |
provisions of this
subsection. |
| 4542 |
(c) If
the budget of the association does not provide for |
| 4543 |
reserve
accounts governed by this subsection and the association |
| 4544 |
is
responsible for the repair and maintenance of capital |
| 4545 |
improvements
that may result in a special assessment if reserves |
| 4546 |
are
not provided, each financial report for the preceding fiscal |
| 4547 |
year
required by subsection (7) shall contain the following |
| 4548 |
statement
in conspicuous type: THE BUDGET OF THE ASSOCIATION |
| 4549 |
DOES
NOT PROVIDE FOR RESERVE ACCOUNTS FOR CAPITAL EXPENDITURES |
| 4550 |
AND
DEFERRED MAINTENANCE THAT MAY RESULT IN SPECIAL ASSESSMENTS. |
| 4551 |
OWNERS
MAY ELECT TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO THE |
| 4552 |
PROVISIONS
OF SECTION 720.303(6), FLORIDA STATUTES, UPON THE |
| 4553 |
APPROVAL
OF NOT LESS THAN A MAJORITY OF THE TOTAL VOTING |
| 4554 |
INTERESTS
OF THE ASSOCIATION. |
| 4555 |
|