| 714 |
Section
20. Subsection (17) of section 718.103, Florida |
| 715 |
Statutes, is amended to read: |
| 716 |
718.103 Definitions.--As
used in this chapter, the term: |
| 717 |
(17) "Division"
means the Division of Florida Land Sales, |
| 718 |
Condominiums, Homeowners'
Associations, and Mobile Homes of the |
| 719 |
Department of Business and
Professional Regulation. |
| 720 |
Section
21. Paragraph (f) of subsection (4) of section |
| 721 |
718.104, Florida Statutes, is amended
to read: |
| 722 |
718.104 Creation
of condominiums; contents of |
| 723 |
declaration.--Every condominium
created in this state shall be |
| 724 |
created pursuant to this chapter. |
| 725 |
(4) The
declaration must contain or provide for the |
| 726 |
following matters: |
| 727 |
(f) The
undivided share of ownership of the common |
| 728 |
elements and common surplus of the
condominium that is |
| 729 |
appurtenant to each unit stated as a
percentage or a fraction of |
| 730 |
the whole. In the declaration of
condominium for residential |
| 731 |
condominiums created after April 1, 2007
1992, the ownership |
| 732 |
share of the common elements assigned
to each residential unit |
| 733 |
shall be based either
upon the total square footage of each |
| 734 |
residential unit in uniform
relationship to the total square |
| 735 |
footage of each other residential unit
in the condominium or on |
| 736 |
an equal
fractional basis. |
| 737 |
Section
22. Paragraph (c) of subsection (4) of section |
| 738 |
718.105, Florida Statutes, is amended
to read: |
| 739 |
718.105 Recording
of declaration.-- |
| 740 |
(4) |
| 741 |
(c) If
the sum of money held by the clerk has not been |
| 742 |
paid to the developer or association
as provided in paragraph |
| 743 |
(b) by 3 years after the date the
declaration was originally |
| 744 |
recorded, the clerk in his or her
discretion may notify, in |
| 745 |
writing, the registered agent of the
association that the sum is |
| 746 |
still available and the purpose for
which it was deposited. If |
| 747 |
the association does not record the
certificate within 90 days |
| 748 |
after the clerk has given the notice,
the clerk may disburse the |
| 749 |
money to the developer. If the
developer cannot be located, the |
| 750 |
clerk shall disburse the money to the
Division of Florida Land |
| 751 |
Sales, Condominiums, Homeowners'
Associations, and Mobile Homes |
| 752 |
for deposit in the Division of Florida
Land Sales, Condominiums, |
| 753 |
Homeowners'
Associations, and Mobile Homes Trust Fund. |
| 754 |
Section
23. Paragraph (d) is added to subsection (1) of |
| 755 |
section 718.110, Florida Statutes, to
read: |
| 756 |
718.110 Amendment
of declaration; correction of error or |
| 757 |
omission in declaration by circuit
court.-- |
| 758 |
(1) |
| 759 |
(d) Notice
of a proposed amendment to the declaration |
| 760 |
shall be sent to
the unit owner by certified mail. |
| 761 |
Section
24. Subsection (5), paragraph (b) of subsection |
| 762 |
(7), paragraphs (b) and (c) of
subsection (12), and subsection |
| 763 |
(13) of section 718.111, Florida
Statutes, are amended, and |
| 764 |
subsection (15) is added to that
section, to read: |
| 765 |
718.111 The
association.-- |
| 766 |
(5) RIGHT
OF ACCESS TO UNITS.--The association has the |
| 767 |
irrevocable right of access to each
unit during reasonable |
| 768 |
hours, when necessary for the
maintenance, repair, or |
| 769 |
replacement of any common elements or
of any portion of a unit |
| 770 |
to be maintained by the association
pursuant to the declaration |
| 771 |
or as necessary to prevent damage to
the common elements or to a |
| 772 |
unit or units. Except
in cases of emergency, the association |
| 773 |
must give the unit
owner 24 hours' advance written notice of |
| 774 |
intent to access
the unit and such access must include two |
| 775 |
persons, one of
whom must be a member of the board of |
| 776 |
administration. |
| 777 |
(7) TITLE
TO PROPERTY.-- |
| 778 |
(b) Subject
to the provisions of s. 718.112(2)(l)(m), the |
| 779 |
association, through its board, has
the limited power to convey |
| 780 |
a portion of the common elements to a
condemning authority for |
| 781 |
the purposes of providing utility
easements, right-of-way |
| 782 |
expansion, or other public purposes,
whether negotiated or as a |
| 783 |
result of eminent domain proceedings. |
| 784 |
(12) OFFICIAL
RECORDS.-- |
| 785 |
(b) The
official records of the association shall be |
| 786 |
maintained within the state. The
records of the association |
| 787 |
shall be made available to a unit
owner, at a location within 30 |
| 788 |
miles'
driving distance of the condominium property, within 5 |
| 789 |
working days after receipt of written
request by the board or |
| 790 |
its designee. This paragraph may be
complied with by having a |
| 791 |
copy of the official records of the
association available for |
| 792 |
inspection or copying on the
condominium property or association |
| 793 |
property. |
| 794 |
(c) The
official records of the association are open to |
| 795 |
inspection by any association member
or the authorized |
| 796 |
representative of such member at all
reasonable times. The right |
| 797 |
to inspect the records includes the
right to make or obtain |
| 798 |
copies, at the reasonable expense, if
any, of the association |
| 799 |
member. The association may adopt
reasonable rules regarding the |
| 800 |
frequency, time, location, notice, and
manner of record |
| 801 |
inspections and copying. The failure
of an association to |
| 802 |
provide the records within 10 working
days after receipt of a |
| 803 |
written request shall create a
rebuttable presumption that the |
| 804 |
association willfully failed to comply
with this paragraph. A |
| 805 |
unit owner who is denied access to
official records is entitled |
| 806 |
to the actual damages or minimum
damages for the association's |
| 807 |
willful failure to comply with this
paragraph. The minimum |
| 808 |
damages shall be $50 per calendar day
up to 10 days, the |
| 809 |
calculation to begin on the 11th
working day after receipt of |
| 810 |
the written request. The failure to
permit inspection of the |
| 811 |
association records as provided herein
entitles any person |
| 812 |
prevailing in an enforcement action to
recover reasonable |
| 813 |
attorney's fees from the person in
control of the records who, |
| 814 |
directly or indirectly, knowingly
denied access to the records |
| 815 |
for inspection. The association shall
maintain an adequate |
| 816 |
number of copies of the declaration,
articles of incorporation, |
| 817 |
bylaws, and rules, and all amendments
to each of the foregoing, |
| 818 |
as well as the question and answer
sheet provided for in s. |
| 819 |
718.504 and year-end financial
information required in this |
| 820 |
section on the condominium property to
ensure their availability |
| 821 |
to unit owners and prospective
purchasers, and may charge its |
| 822 |
actual costs for preparing and
furnishing these documents to |
| 823 |
those requesting the same.
Notwithstanding the provisions of |
| 824 |
this paragraph, the following records
shall not be accessible to |
| 825 |
unit owners: |
| 826 |
1. Any
record protected by the lawyer-client privilege as |
| 827 |
described in s. 90.502; and any record
protected by the work- |
| 828 |
product privilege, including any
record prepared by an |
| 829 |
association attorney or prepared at
the attorney's express |
| 830 |
direction; which reflects a mental
impression, conclusion, |
| 831 |
litigation strategy, or legal theory
of the attorney or the |
| 832 |
association, and which was prepared
exclusively for civil or |
| 833 |
criminal litigation or for adversarial
administrative |
| 834 |
proceedings, or which was prepared in
anticipation of imminent |
| 835 |
civil or criminal litigation or
imminent adversarial |
| 836 |
administrative proceedings until the
conclusion of the |
| 837 |
litigation or adversarial
administrative proceedings. |
| 838 |
2. Information
obtained by an association in connection |
| 839 |
with the approval of the lease, sale,
or other transfer of a |
| 840 |
unit. |
| 841 |
3. Medical
records of unit owners. |
| 842 |
4. Social
security numbers, driver's license numbers, |
| 843 |
credit card
numbers, and other personal identifying information |
| 844 |
of unit owners,
occupants, or tenants. |
| 845 |
(13) FINANCIAL
REPORTING.--Within 90 days after the end of |
| 846 |
the fiscal year, or annually on a date
provided in the bylaws, |
| 847 |
the association shall prepare and
complete, or contract for the |
| 848 |
preparation and completion of, a
financial report for the |
| 849 |
preceding fiscal year. Within 21 days
after the final financial |
| 850 |
report is completed by the association
or received from the |
| 851 |
third party, but not later than 120
days after the end of the |
| 852 |
fiscal year or other date as provided
in the bylaws, the |
| 853 |
association shall mail to each unit
owner at the address last |
| 854 |
furnished to the association by the
unit owner, or hand deliver |
| 855 |
to each unit owner, a copy of the
financial report or a notice |
| 856 |
that a copy of the financial report
will be mailed or hand |
| 857 |
delivered to the unit owner,
without charge, upon receipt of a |
| 858 |
written
request from the unit owner. The division shall adopt |
| 859 |
rules setting forth uniform accounting
principles and standards |
| 860 |
to be used by all associations and
shall adopt rules addressing |
| 861 |
financial reporting requirements for
multicondominium |
| 862 |
associations. In adopting such rules,
the division shall |
| 863 |
consider the number of members and
annual revenues of an |
| 864 |
association. Financial reports shall
be prepared as follows: |
| 865 |
(a) An
association that meets the criteria of this |
| 866 |
paragraph shall prepare or cause to be
prepared a complete set |
| 867 |
of financial statements in accordance
with generally accepted |
| 868 |
accounting principles. The financial
statements shall be based |
| 869 |
upon the association's total annual
revenues, as follows: |
| 870 |
1. An
association with total annual revenues of $100,000 |
| 871 |
or more, but less than $200,000, shall
prepare compiled |
| 872 |
financial statements. |
| 873 |
2. An
association with total annual revenues of at least |
| 874 |
$200,000, but less than $400,000,
shall prepare reviewed |
| 875 |
financial statements. |
| 876 |
3. An
association with total annual revenues of $400,000 |
| 877 |
or more shall prepare audited
financial statements. |
| 878 |
(b)1. An
association with total annual revenues of less |
| 879 |
than $100,000 shall prepare a report
of cash receipts and |
| 880 |
expenditures. |
| 881 |
2. An
association which operates less than 50 units, |
| 882 |
regardless of the association's annual
revenues, shall prepare a |
| 883 |
report of cash receipts and
expenditures in lieu of financial |
| 884 |
statements required by paragraph (a). |
| 885 |
3. A
report of cash receipts and disbursements must |
| 886 |
disclose the amount of receipts by
accounts and receipt |
| 887 |
classifications and the amount of
expenses by accounts and |
| 888 |
expense classifications, including,
but not limited to, the |
| 889 |
following, as applicable: costs for
security, professional and |
| 890 |
management fees and expenses, taxes,
costs for recreation |
| 891 |
facilities, expenses for refuse
collection and utility services, |
| 892 |
expenses for lawn care, costs for
building maintenance and |
| 893 |
repair, insurance costs,
administration and salary expenses, and |
| 894 |
reserves accumulated and expended for
capital expenditures, |
| 895 |
deferred maintenance, and any other
category for which the |
| 896 |
association maintains reserves. |
| 897 |
(c) An
association may prepare or cause to be prepared, |
| 898 |
without a meeting of or approval by
the unit owners: |
| 899 |
1. Compiled,
reviewed, or audited financial statements, if |
| 900 |
the association is required to prepare
a report of cash receipts |
| 901 |
and expenditures; |
| 902 |
2. Reviewed
or audited financial statements, if the |
| 903 |
association is required to prepare
compiled financial |
| 904 |
statements; or |
| 905 |
3. Audited
financial statements if the association is |
| 906 |
required to prepare reviewed financial
statements. |
| 907 |
(d) If
approved by a majority of the voting interests |
| 908 |
present at a properly called meeting
of the association, an |
| 909 |
association may prepare or cause to be
prepared: |
| 910 |
1. A
report of cash receipts and expenditures in lieu of a |
| 911 |
compiled, reviewed, or audited
financial statement; |
| 912 |
2. A
report of cash receipts and expenditures or a |
| 913 |
compiled financial statement in lieu
of a reviewed or audited |
| 914 |
financial statement; or |
| 915 |
3. A
report of cash receipts and expenditures, a compiled |
| 916 |
financial statement, or a reviewed
financial statement in lieu |
| 917 |
of an audited financial statement. |
| 918 |
|
| 919 |
Such meeting and approval must occur
prior to the end of the |
| 920 |
fiscal year and is effective only for
the fiscal year in which |
| 921 |
the vote is taken. With respect to an
association to which the |
| 922 |
developer has not turned over control
of the association, all |
| 923 |
unit owners, including the developer,
may vote on issues related |
| 924 |
to the preparation of financial
reports for the first 2 fiscal |
| 925 |
years of the association's operation,
beginning with the fiscal |
| 926 |
year in which the declaration is
recorded. Thereafter, all unit |
| 927 |
owners except the developer may vote
on such issues until |
| 928 |
control is turned over to the
association by the developer. An |
| 929 |
association or board of
administration may not waive the |
| 930 |
financial reporting requirements of
this section for more than 2 |
| 931 |
years. |
| 932 |
(15) RECONSTRUCTION
AFTER CASUALTY.-- |
| 933 |
(a) In
the event the condominium property and units are |
| 934 |
damaged after a
casualty, the board of administration shall |
| 935 |
obtain reliable and
detailed estimates of the cost necessary to |
| 936 |
repair and replace
the damaged property to substantially the |
| 937 |
same condition
existing immediately prior to the casualty and |
| 938 |
substantially in
accordance with the original plans and |
| 939 |
specifications of
the condominium as soon as possible and not |
| 940 |
later than 60 days
after the casualty. If the damage to the |
| 941 |
condominium
property exceeds 50 percent of the property's value, |
| 942 |
the condominium may
be terminated unless 75 percent of the unit |
| 943 |
owners agree to
reconstruction and repair within 90 days after |
| 944 |
the casualty. |
| 945 |
(b) The
board of administration shall engage the services |
| 946 |
of a registered
architect and knowledgeable construction |
| 947 |
specialists to
prepare any necessary plans and specifications |
| 948 |
and shall receive
and approve bids for reconstruction, execute |
| 949 |
all necessary
contracts for restoration, and arrange for |
| 950 |
disbursement of
construction funds, the approval of work, and |
| 951 |
all other matters
pertaining to the repairs and reconstruction |
| 952 |
required. |
| 953 |
(c) If
the proceeds of the hazard insurance policy |
| 954 |
maintained by the
association pursuant to paragraph (11)(b) are |
| 955 |
insufficient to pay
the estimated costs of reconstruction or at |
| 956 |
any time during
reconstruction and repair, assessments shall be |
| 957 |
made against all
unit owners according to their share of the |
| 958 |
common elements and
expenses as set forth in the declaration of |
| 959 |
condominium. |
| 960 |
(d) Assessments
shall be made against unit owners for |
| 961 |
damage to their
units according to the cost of reconstruction or |
| 962 |
repair of their
respective units. The assessments shall be |
| 963 |
levied and
collected as all other assessments are provided for |
| 964 |
in this chapter. |
| 965 |
Section
25. Subsection (2) of section 718.112, Florida |
| 966 |
Statutes, is amended to read: |
| 967 |
718.112 Bylaws.-- |
| 968 |
(2) REQUIRED
PROVISIONS.--The bylaws of the association |
| 969 |
shall provide for the following and,
if they do not do so, shall |
| 970 |
be deemed to include the following: |
| 971 |
(a) Administration.-- |
| 972 |
1. The
form of administration of the association shall be |
| 973 |
described indicating the title of the
officers and board of |
| 974 |
administration and specifying the
powers, duties, manner of |
| 975 |
selection and removal, and
compensation, if any, of officers and |
| 976 |
boards. In the absence of such a
provision or determination by |
| 977 |
the board or membership, the
board of administration shall be |
| 978 |
composed of five members who are
unit owners, except in the case |
| 979 |
of a condominium which has five or
fewer units, in which case in |
| 980 |
a not-for-profit corporation the board
shall consist of not |
| 981 |
fewer than three members who are
unit owners. In the absence of |
| 982 |
provisions to the contrary in the
bylaws, the board of |
| 983 |
administration shall have a president,
a secretary, and a |
| 984 |
treasurer, who shall perform the
duties of such officers |
| 985 |
customarily performed by officers of
corporations. Unless |
| 986 |
prohibited in the bylaws, the board of
administration may |
| 987 |
appoint other officers and grant them
the duties it deems |
| 988 |
appropriate. Unless otherwise provided
in the bylaws, the |
| 989 |
officers shall serve without
compensation and at the pleasure of |
| 990 |
the board of administration. Unless
otherwise provided in the |
| 991 |
bylaws, the members of the board shall
serve without |
| 992 |
compensation. |
| 993 |
2. When
a unit owner files a written inquiry by certified |
| 994 |
mail with the board of administration,
the board shall respond |
| 995 |
in writing by certified mail,
return receipt requested, to the |
| 996 |
unit owner within 30 days after
of receipt of the inquiry. The |
| 997 |
board's response shall either give a
substantive response to the |
| 998 |
inquirer, notify the inquirer that a
legal opinion has been |
| 999 |
requested, or notify the inquirer that
advice has been requested |
| 1000 |
from the division. If the board
requests advice from the |
| 1001 |
division, the board shall, within 10
days after of
its receipt |
| 1002 |
of the advice, provide in writing by
certified mail a |
| 1003 |
substantive response to the inquirer.
If a legal opinion is |
| 1004 |
requested, the board shall, within 60
days after the receipt of |
| 1005 |
the inquiry, provide in writing by
certified mail a substantive |
| 1006 |
response to the inquiry. The failure
to provide a substantive |
| 1007 |
response to the inquiry as provided
herein precludes the board |
| 1008 |
from recovering attorney's fees and
costs in any subsequent |
| 1009 |
litigation, administrative proceeding,
or arbitration arising |
| 1010 |
out of the inquiry. The
association may through its board of |
| 1011 |
administration
adopt reasonable rules and regulations regarding |
| 1012 |
the frequency and
manner of responding to unit owner inquiries, |
| 1013 |
one of which may be
that the association is only obligated to |
| 1014 |
respond to one
written inquiry per unit in any given 30-day |
| 1015 |
period. In such a
case, any additional inquiry or inquiries must |
| 1016 |
be responded to in
the subsequent 30-day period, or periods, as |
| 1017 |
applicable. |