House Bill 1373 -- Senate Bill 2816

Relating to Community Associations

H1373    GENERAL BILL by Representative Julio Robaina (Compare H 0433, S 0902 , S 2816) Co-Sponsors: Luis Garcia, Yolly Roberson, Priscilla Taylor

Identical Bill filed by Senator Alex Villalobos (S 2816)
Community Associations; provides disclosure requirements for certain
contracts for initial sale of parcel of real property & each contract
for initial sale of residential unit; requires notice of proposed
amendments to be provided to unit owners; authorizes board to install
hurricane protection that complies with applicable building code;
revises powers & duties of homeowners' associations, etc. Amends FS.
EFFECTIVE DATE: 07/01/2007.
03/02/07 HOUSE Filed

03/06/07 HOUSE Introduced -HJ 00096

03/11/07 HOUSE Referred to Jobs & Entrepreneurship Council; Policy & Budget
                Council

03/15/07 HOUSE Referred to Business Regulation (JE) by Jobs &
                  Entrepreneurship Council -HJ 00225
03/20/07 HOUSE On Committee agenda-- Business Regulation (JE), 03/22/07,
                  9:15 am, Reed Hall
03/22/07 HOUSE Favorable with 3 amendment(s) by Business Regulation (JE);
                  YEAS 9 NAYS 0

03/23/07 HOUSE Now in Jobs & Entrepreneurship Council -HJ 00264
04/10/07 HOUSE On Council agenda-- Jobs & Entrepreneurship Council,
                  04/12/07, 8:00 am, Morris Hall


367      Section 1.  Section 190.048, Florida Statutes, is amended
368 to read:
369      190.048  Sale of real estate within a district; required
370 disclosure to purchaser.--
371      (1)(a)  Subsequent to the establishment of a district under
372 this chapter, each contract for the initial sale of a parcel of
373 real property and each contract for the initial sale of a
374 residential unit within the district shall include as a separate
375 addendum to the contract, immediately prior to the space
376 reserved in the contract for the signature of the purchaser, the
377 following disclosure statement in boldfaced and conspicuous type
378 which is larger than the type in the remaining text of the
379 contract: "THE   (Name of District)   COMMUNITY DEVELOPMENT
380 DISTRICT MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES
381 AND ASSESSMENTS, ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS
382 PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF
383 CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE
384 SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES
385 AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL
386 GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND
387 ASSESSMENTS PROVIDED FOR BY LAW."
388      (b)  The disclosure statement in paragraph (a) shall also
389 fully disclose all covenants and restrictions to which the
390 property is subject. This addendum shall disclose any existing
391 agreement between a developer and other party that obligates the
392 purchaser of the unit to additional taxes, assessments, or fees
393 within 10 years following the sale of the unit. Such disclosure
394 shall provide a reasonable estimate of the first 3 years for
395 each tax, assessment, or fee. Such disclosure shall be provided
396 to the purchaser within 10 days after the execution of the sales
397 contract; otherwise, the contract may be voided at the election
398 of the purchaser and any deposits shall be returned in full.
399 However, such disclosure may be provided to the purchaser later
400 than 10 days after the execution of the sales contract if the
401 closing date has been extended by an additional 10 days.
402      (2)(a)  Failure to provide the disclosure statement as
403 required in subsection (1) within 10 days shall constitute a
404 rebuttable presumption of willful noncompliance with subsection
405 (1) and shall result in a fine of $2,500 for each violation, up
406 to a maximum of $10,000, payable to the prospective buyer, and
407 shall include reasonable attorney's fees and collection costs,
408 due 30 days after the execution or voiding of the sales
409 contract.
410      (b)  The developer and sales agent shall submit an annual
411 report to the Department of Community Affairs that certifies
412 compliance with this section and payment of any related fines
413 and criminal penalties for such noncompliance as may be passed
414 by the Legislature. Failure by the developer or sales agent to
415 provide an annual report shall result in a $50,000 fine payable
416 to the department.
417      Section 2.  Section 190.0485, Florida Statutes, is amended
418 to read:
419      190.0485  Notice of establishment.--Within 30 days after
420 the effective date of a rule or ordinance establishing a
421 community development district under this act, the district
422 shall cause to be recorded in the property records in the county
423 in which it is located a "Notice of Establishment of the
424 __________ Community Development District." The notice shall, at
425 a minimum, include the legal description of the district and a
426 copy of the disclosure statement specified in s. 190.048(1)(a).
720      Section 3.  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.
754      Section 4.  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 6.  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 two written inquiry inquiries 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.
1018      (b)  Quorum; voting requirements; proxies.--
1019      1.  Unless a lower number is provided in the bylaws, the
1020 percentage of voting interests required to constitute a quorum
1021 at a meeting of the members shall be a majority of the voting
1022 interests. Unless otherwise provided in this chapter or in the
1023 declaration, articles of incorporation, or bylaws, and except as
1024 provided in subparagraph (d)3., decisions shall be made by
1025 owners of a majority of the voting interests represented at a
1026 meeting at which a quorum is present.
1027      2.  Except as specifically otherwise provided herein, after
1028 January 1, 1992, unit owners may not vote by general proxy, but
1029 may vote by limited proxies substantially conforming to a
1030 limited proxy form adopted by the division. Limited proxies and
1031 general proxies may be used to establish a quorum. Limited
1032 proxies shall be used for votes taken to waive or reduce
1033 reserves in accordance with subparagraph (f)2.; for votes taken
1034 to waive the financial reporting requirements of s. 718.111(13);
1035 for votes taken to amend the declaration pursuant to s. 718.110;
1036 for votes taken to amend the articles of incorporation or bylaws
1037 pursuant to this section; and for any other matter for which
1038 this chapter requires or permits a vote of the unit owners.
1039 Except as provided in paragraph (d), after January 1, 1992, No
1040 proxy, limited or general, shall be used in the election of
1041 board members. General proxies may be used for other matters for
1042 which limited proxies are not required, and may also be used in
1043 voting for nonsubstantive changes to items for which a limited
1044 proxy is required and given. Notwithstanding the provisions of
1045 this subparagraph, unit owners may vote in person at unit owner
1046 meetings. Nothing contained herein shall limit the use of
1047 general proxies or require the use of limited proxies for any
1048 agenda item or election at any meeting of a timeshare
1049 condominium association.
1050      3.  Any proxy given shall be effective only for the
1051 specific meeting for which originally given and any lawfully
1052 adjourned meetings thereof. In no event shall any proxy be valid
1053 for a period longer than 90 days after the date of the first
1054 meeting for which it was given. Every proxy is revocable at any
1055 time at the pleasure of the unit owner executing it.
1056      4.  A member of the board of administration or a committee
1057 may submit in writing his or her agreement or disagreement with
1058 any action taken at a meeting that the member did not attend.
1059 This agreement or disagreement may not be used as a vote for or
1060 against the action taken and may not be used for the purposes of
1061 creating a quorum.
1062      5.  When any of the board or committee members meet by
1063 telephone conference, those board or committee members attending
1064 by telephone conference may be counted toward obtaining a quorum
1065 and may vote by telephone. A telephone speaker must be used so
1066 that the conversation of those board or committee members
1067 attending by telephone may be heard by the board or committee
1068 members attending in person as well as by any unit owners
1069 present at a meeting.
1070      (c)  Board of administration meetings.--Meetings of the
1071 board of administration at which a quorum of the members is
1072 present shall be open to all unit owners. No action shall be
1073 taken or resolution made without an open meeting of the board of
1074 administration. The board of administration shall address agenda
1075 items proposed by a petition of 20 percent of the unit owners.
1076 Unless otherwise provided in the bylaws, boards of
1077 administration shall use rules of parliamentary procedure in
1078 conducting all association meetings and business. A unit owner's
1079 facsimile signature shall constitute the unit owner's original
1080 signature in any matter under this chapter that requires the
1081 unit owner's signature. Correspondence from the board of
1082 administration to unit owners shall be accomplished by the same
1083 delivery method used by the unit owner except as otherwise
1084 provided in this paragraph. Any unit owner may tape record or
1085 videotape meetings of the board of administration. The right to
1086 attend such meetings includes the right to speak at such
1087 meetings with reference to all designated agenda items. The
1088 division shall adopt reasonable rules governing the tape
1089 recording and videotaping of the meeting. The association may
1090 adopt written reasonable rules governing the frequency,
1091 duration, and manner of unit owner statements. Adequate notice
1092 of all meetings, which notice shall specifically incorporate an
1093 identification of agenda items, shall be posted conspicuously on
1094 the condominium property at least 48 continuous hours preceding
1095 the meeting except in an emergency. Any item not included on the
1096 notice may be taken up on an emergency basis by at least a
1097 majority plus one of the members of the board or by a petition
1098 of 20 percent of the unit owners. Such emergency action shall be
1099 noticed and ratified at the next regular meeting of the board.
1100 However, written notice of any meeting at which nonemergency
1101 special assessments, or at which amendment to rules regarding
1102 unit use, will be considered shall be mailed, delivered, or
1103 electronically transmitted to the unit owners and posted
1104 conspicuously on the condominium property not less than 14 days
1105 prior to the meeting. Evidence of compliance with this 14-day
1106 notice shall be made by an affidavit executed by the person
1107 providing the notice and filed among the official records of the
1108 association. Upon notice to the unit owners, the board shall by
1109 duly adopted rule designate a specific location on the
1110 condominium property or association property upon which all
1111 notices of board meetings shall be posted. If there is no
1112 condominium property or association property upon which notices
1113 can be posted, notices of board meetings shall be mailed,
1114 delivered, or electronically transmitted at least 14 days before
1115 the meeting to the owner of each unit. In lieu of or in addition
1116 to the physical posting of notice of any meeting of the board of
1117 administration on the condominium property, the association may,
1118 by reasonable rule, adopt a procedure for conspicuously posting
1119 and repeatedly broadcasting the notice and the agenda on a
1120 closed-circuit cable television system serving the condominium
1121 association. However, if broadcast notice is used in lieu of a
1122 notice posted physically on the condominium property, the notice
1123 and agenda must be broadcast at least four times every broadcast
1124 hour of each day that a posted notice is otherwise required
1125 under this section. When broadcast notice is provided, the
1126 notice and agenda must be broadcast in a manner and for a
1127 sufficient continuous length of time so as to allow an average
1128 reader to observe the notice and read and comprehend the entire
1129 content of the notice and the agenda. Notice of any meeting in
1130 which regular or special assessments against unit owners are to
1131 be considered for any reason shall specifically state contain a
1132 statement that assessments will be considered and the nature,
1133 cost, and breakdown of any such assessments. Meetings of a
1134 committee to take final action on behalf of the board or make
1135 recommendations to the board regarding the association budget
1136 are subject to the provisions of this paragraph. Meetings of a
1137 committee that does not take final action on behalf of the board
1138 or make recommendations to the board regarding the association
1139 budget are subject to the provisions of this section, unless
1140 those meetings are exempted from this section by the bylaws of
1141 the association. Notwithstanding any other law, the requirement
1142 that board meetings and committee meetings be open to the unit
1143 owners is inapplicable to meetings between the board or a
1144 committee and the association's attorney, with respect to
1145 proposed or pending litigation, when the meeting is held for the
1146 purpose of seeking or rendering legal advice.
1147      (d)  Unit owner meetings.--
1148      1.  There shall be an annual meeting of the unit owners.
1149 Unless the bylaws provide otherwise, a vacancy on the board
1150 caused by the expiration of a director's term shall be filled by
1151 electing a new board member, and the election shall be by secret
1152 ballot; however, if the number of vacancies equals or exceeds
1153 the number of candidates, no election is required. If there is
1154 no provision in the bylaws for terms of the members of the
1155 board, the terms of all members of the board shall expire upon
1156 the election of their successors at the annual meeting. Any unit
1157 owner desiring to be a candidate for board membership shall
1158 comply with subparagraph 3. The only prohibition against
1159 eligibility for board membership shall be for a person who has
1160 been convicted of any felony by any court of record in the
1161 United States and who has not had his or her right to vote
1162 restored pursuant to law in the jurisdiction of his or her
1163 residence is not eligible for board membership. The validity of
1164 an action by the board is not affected if it is later determined
1165 that a member of the board is ineligible for board membership
1166 due to having been convicted of a felony.
1167      2.  The bylaws shall provide the method of calling meetings
1168 of unit owners, including annual meetings. Written notice, which
1169 notice must include an agenda, shall be mailed, hand delivered,
1170 or electronically transmitted to each unit owner at least 14
1171 days prior to the annual meeting and shall be posted in a
1172 conspicuous place on the condominium property at least 14
1173 continuous days preceding the annual meeting. Upon notice to the
1174 unit owners, the board shall by duly adopted rule designate a
1175 specific location on the condominium property or association
1176 property upon which all notices of unit owner meetings shall be
1177 posted; however, if there is no condominium property or
1178 association property upon which notices can be posted, this
1179 requirement does not apply. In lieu of or in addition to the
1180 physical posting of notice of any meeting of the unit owners on
1181 the condominium property, the association may, by reasonable
1182 rule, adopt a procedure for conspicuously posting and repeatedly
1183 broadcasting the notice and the agenda on a closed-circuit cable
1184 television system serving the condominium association. However,
1185 if broadcast notice is used in lieu of a notice posted
1186 physically on the condominium property, the notice and agenda
1187 must be broadcast at least four times every broadcast hour of
1188 each day that a posted notice is otherwise required under this
1189 section. When broadcast notice is provided, the notice and
1190 agenda must be broadcast in a manner and for a sufficient
1191 continuous length of time so as to allow an average reader to
1192 observe the notice and read and comprehend the entire content of
1193 the notice and the agenda. Unless a unit owner waives in writing
1194 the right to receive notice of the annual meeting, such notice
1195 shall be hand delivered, mailed, or electronically transmitted
1196 to each unit owner. Notice for meetings and notice for all other
1197 purposes shall be mailed to each unit owner at the address last
1198 furnished to the association by the unit owner, or hand
1199 delivered to each unit owner. However, if a unit is owned by
1200 more than one person, the association shall provide notice, for
1201 meetings and all other purposes, to that one address which the
1202 developer initially identifies for that purpose and thereafter
1203 as one or more of the owners of the unit shall so advise the
1204 association in writing, or if no address is given or the owners
1205 of the unit do not agree, to the address provided on the deed of
1206 record. An officer of the association, or the manager or other
1207 person providing the first notice of the association meeting,
1208 and the second notice as provided for in subparagraph 3., shall
1209 provide an affidavit or United States Postal Service certificate
1210 of mailing, to be included in the official records of the
1211 association affirming that the notices were notice was mailed or
1212 hand delivered, in accordance with this provision.
1213      3.  The members of the board shall be elected by written
1214 ballot or voting machine. Proxies shall in no event be used in
1215 electing the board, either in general elections or elections to
1216 fill vacancies caused by recall, resignation, or otherwise,
1217 unless otherwise provided in this chapter. Not less than 60 days
1218 before a scheduled election, the association or its
1219 representative shall mail, deliver, or electronically transmit,
1220 whether by separate association mailing or included in another
1221 association mailing, delivery, or transmission, including
1222 regularly published newsletters, to each unit owner entitled to
1223 a vote, a first notice of the date of the election. Any unit
1224 owner or other eligible person desiring to be a candidate for
1225 the board must give written notice to the association or its
1226 representative not less than 40 days before a scheduled
1227 election. Together with the written notice and agenda as set
1228 forth in subparagraph 2., the association or its representative
1229 shall mail, deliver, or electronically transmit a second notice
1230 of the election to all unit owners entitled to vote therein,
1231 together with a ballot which shall list all candidates. Upon
1232 request of a candidate, the association or its representative
1233 shall include an information sheet, no larger than 81/2 inches
1234 by 11 inches, which must be furnished by the candidate not less
1235 than 35 days before the election, to be included with the
1236 mailing, delivery, or transmission of the ballot, with the costs
1237 of mailing, delivery, or electronic transmission and copying to
1238 be borne by the association. The association or its
1239 representative is not liable for the contents of the information
1240 sheets prepared by the candidates. In order to reduce costs, the
1241 association may print or duplicate the information sheets on
1242 both sides of the paper. The division shall by rule establish
1243 voting procedures consistent with the provisions contained
1244 herein, including rules establishing procedures for giving
1245 notice by electronic transmission and rules providing for the
1246 secrecy of ballots. All ballot envelopes must be placed in a
1247 locked or sealed ballot drop box immediately upon receipt, and
1248 the box shall not be opened in advance of the election meeting.
1249 Elections shall be decided by a plurality of those ballots cast.
1250 There shall be no quorum requirement; however, at least 20
1251 percent of the eligible voters must cast a ballot in order to
1252 have a valid election of members of the board. No unit owner
1253 shall permit any other person to vote his or her ballot, and any
1254 such ballots improperly cast shall be deemed invalid, provided
1255 any unit owner who violates this provision may be fined by the
1256 association in accordance with s. 718.303. A unit owner who
1257 needs assistance in casting the ballot for the reasons stated in
1258 s. 101.051 may obtain assistance in casting the ballot. The
1259 regular election shall occur on the date of the annual meeting.
1260 The provisions of this subparagraph shall not apply to timeshare
1261 condominium associations. Notwithstanding the provisions of this
1262 subparagraph, an election is not required unless more candidates
1263 file notices of intent to run or are nominated than board
1264 vacancies exist.
1265      4.  Any approval by unit owners called for by this chapter
1266 or the applicable declaration or bylaws, including, but not
1267 limited to, the approval requirement in s. 718.111(8), shall be
1268 made at a duly noticed meeting of unit owners and shall be
1269 subject to all requirements of this chapter or the applicable
1270 condominium documents relating to unit owner decisionmaking,
1271 except that unit owners may take action by written agreement,
1272 without meetings, on matters for which action by written
1273 agreement without meetings is expressly allowed by the
1274 applicable bylaws or declaration or any statute that provides
1275 for such action.
1276      5.  Unit owners may waive notice of specific meetings if
1277 allowed by the applicable bylaws or declaration or any statute.
1278 If authorized by the bylaws, notice of meetings of the board of
1279 administration, unit owner meetings, except unit owner meetings
1280 called to recall board members under paragraph (j), and
1281 committee meetings may be given by electronic transmission to
1282 unit owners who consent to receive notice by electronic
1283 transmission.
1284      6.  Unit owners shall have the right to participate in
1285 meetings of unit owners with reference to all designated agenda
1286 items. However, the association may adopt reasonable rules
1287 governing the frequency, duration, and manner of unit owner
1288 participation.
1289      7.  Any unit owner may tape record or videotape a meeting
1290 of the unit owners subject to reasonable rules adopted by the
1291 division.
1292      8.  Unless otherwise provided in the bylaws, any vacancy
1293 occurring on the board before the expiration of a term may be
1294 filled by the affirmative vote of the majority of the remaining
1295 directors, even if the remaining directors constitute less than
1296 a quorum, or by the sole remaining director. In the alternative,
1297 a board may hold an election to fill the vacancy, in which case
1298 the election procedures must conform to the requirements of
1299 subparagraph 3. unless the association has opted out of the
1300 statutory election process, in which case the bylaws of the
1301 association control. Unless otherwise provided in the bylaws, a
1302 board member appointed or elected under this section shall fill
1303 the vacancy for the unexpired term of the seat being filled.
1304 Filling vacancies created by recall is governed by paragraph (j)
1305 and rules adopted by the division.
1306      9.  Unit owners shall have the right to have items placed
1307 on the agenda of the annual meeting and voted upon if a written
1308 request is made to the board of administration by 20 percent or
1309 more of all voting interests at least 90 days before the date of
1310 the annual meeting.
1311
1312 Notwithstanding subparagraphs (b)2. and (d)3., an association
1313 may, by the affirmative vote of a majority of the total voting
1314 interests, provide for different voting and election procedures
1315 in its bylaws, which vote may be by a proxy specifically
1316 delineating the different voting and election procedures. The
1317 different voting and election procedures may provide for
1318 elections to be conducted by limited or general proxy.
1319      (e)  Budget meeting.--
1320      1.  Any meeting at which a proposed annual budget of an
1321 association will be considered by the board or unit owners shall
1322 be open to all unit owners. At least 14 days prior to such a
1323 meeting, the board shall hand deliver to each unit owner, mail
1324 to each unit owner at the address last furnished to the
1325 association by the unit owner, or electronically transmit to the
1326 location furnished by the unit owner for that purpose a notice
1327 of such meeting and a copy of the proposed annual budget. An
1328 officer or manager of the association, or other person providing
1329 notice of such meeting, shall execute an affidavit evidencing
1330 compliance with such notice requirement, and such affidavit
1331 shall be filed among the official records of the association.
1332      2.a.  If a board adopts in any fiscal year an annual budget
1333 which requires assessments against unit owners which exceed 115
1334 percent of assessments for the preceding fiscal year, the board
1335 shall conduct a special meeting of the unit owners to consider a
1336 substitute budget if the board receives, within 21 days after
1337 adoption of the annual budget, a written request for a special
1338 meeting from at least 10 percent of all voting interests. The
1339 special meeting shall be conducted within 60 days after adoption
1340 of the annual budget. At least 14 days prior to such special
1341 meeting, the board shall hand deliver to each unit owner, or
1342 mail to each unit owner at the address last furnished to the
1343 association, a notice of the meeting. An officer or manager of
1344 the association, or other person providing notice of such
1345 meeting shall execute an affidavit evidencing compliance with
1346 this notice requirement, and such affidavit shall be filed among
1347 the official records of the association. Unit owners may
1348 consider and adopt a substitute budget at the special meeting. A
1349 substitute budget is adopted if approved by a majority of all
1350 voting interests unless the bylaws require adoption by a greater
1351 percentage of voting interests. If there is not a quorum at the
1352 special meeting or a substitute budget is not adopted, the
1353 annual budget previously adopted by the board shall take effect
1354 as scheduled.
1355      b.  Any determination of whether assessments exceed 115
1356 percent of assessments for the prior fiscal year shall exclude
1357 any authorized provision for reasonable reserves for repair or
1358 replacement of the condominium property, anticipated expenses of
1359 the association which the board does not expect to be incurred
1360 on a regular or annual basis, or assessments for betterments to
1361 the condominium property.
1362      c.  If the developer controls the board, assessments shall
1363 not exceed 115 percent of assessments for the prior fiscal year
1364 unless approved by a majority of all voting interests.
1365      (f)  Annual budget.--
1366      1.  The association shall prepare an annual budget of
1367 estimated revenues and expenses. The adopted budget of the prior
1368 fiscal year shall remain in effect until the association has
1369 adopted a new budget for the current fiscal year. The proposed
1370 annual budget of estimated revenues and common expenses shall be
1371 detailed and shall show the amounts budgeted by accounts and
1372 expense classifications, including, if applicable, but not
1373 limited to, those expenses listed in s. 718.504(21). A
1374 multicondominium association shall adopt a separate budget of
1375 common expenses for each condominium the association operates
1376 and shall adopt a separate budget of common expenses for the
1377 association. In addition, if the association maintains limited
1378 common elements with the cost to be shared only by those
1379 entitled to use the limited common elements as provided for in
1380 s. 718.113(1), the budget or a schedule attached thereto shall
1381 show amounts budgeted therefor. If, after turnover of control of
1382 the association to the unit owners, any of the expenses listed
1383 in s. 718.504(21) are not applicable, they need not be listed.
1384      2.  In addition to annual operating expenses, the budget
1385 shall include reserve accounts for capital expenditures and
1386 deferred maintenance. These accounts shall include, but are not
1387 limited to, structural repairs, roof replacement, building
1388 painting, and pavement resurfacing, regardless of the amount of
1389 deferred maintenance expense or replacement cost, and for any
1390 other item for which the deferred maintenance expense or
1391 replacement cost exceeds $10,000. The amount to be reserved
1392 shall be computed by means of a formula which is based upon
1393 estimated remaining useful life and estimated replacement cost
1394 or deferred maintenance expense of each reserve item. The
1395 association may adjust replacement reserve assessments annually
1396 to take into account any changes in estimates or extension of
1397 the useful life of a reserve item caused by deferred
1398 maintenance. This subsection does not apply to an adopted budget
1399 in which the members of an association have determined, by a
1400 majority vote at a duly called meeting of the association, to
1401 provide no reserves or less reserves than required by this
1402 subsection. However, prior to turnover of control of an
1403 association by a developer to unit owners other than a developer
1404 pursuant to s. 718.301, the developer may vote to waive the
1405 reserves or reduce the funding of reserves for the first 2
1406 fiscal years of the association's operation, beginning with the
1407 fiscal year in which the initial declaration is recorded, after
1408 which time reserves may be waived or reduced only upon the vote
1409 of a majority of all nondeveloper voting interests voting in
1410 person or by limited proxy at a duly called meeting of the
1411 association. If a meeting of the unit owners has been called to
1412 determine whether to waive or reduce the funding of reserves,
1413 and no such result is achieved or a quorum is not attained, the
1414 reserves as included in the budget shall go into effect. After
1415 the turnover, the developer may vote its voting interest to
1416 waive or reduce the funding of reserves.
1417      3.  Reserve funds and any interest accruing thereon shall
1418 remain in the reserve account or accounts, and shall be used
1419 only for authorized reserve expenditures unless their use for
1420 other purposes is approved in advance by a majority vote at a
1421 duly called meeting of the association. Prior to turnover of
1422 control of an association by a developer to unit owners other
1423 than the developer pursuant to s. 718.301, the developer-
1424 controlled association shall not vote to use reserves for
1425 purposes other than that for which they were intended without
1426 the approval of a majority of all nondeveloper voting interests,
1427 voting in person or by limited proxy at a duly called meeting of
1428 the association.
1429      4.  The only voting interests which are eligible to vote on
1430 questions that involve waiving or reducing the funding of
1431 reserves, or using existing reserve funds for purposes other
1432 than purposes for which the reserves were intended, are the
1433 voting interests of the units subject to assessment to fund the
1434 reserves in question. The face of all ballots that involve
1435 questions relating to waiving or reducing the funding of
1436 reserves, or using existing reserve funds for purposes other
1437 than purposes for which the reserves were intended, shall
1438 contain the following statement in capitalized, bold letters in
1439 a font size larger than any other used on the face of the
1440 ballot: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING
1441 ALTERNATE USES OF EXISTING RESERVES, MAY RESULT IN UNIT OWNER
1442 LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS
1443 REGARDING THOSE RESERVE ITEMS.
1444      5.  A vote to provide for no reserves or a percentage of
1445 reserves shall be made at the annual meeting of the unit owners
1446 called under paragraph (d). The division shall adopt the form
1447 for the ballot for no reserves and a percentage of reserves.
1448      6.  Notwithstanding subparagraph 3., the association after
1449 turnover of control of the association may, in case of a
1450 catastrophic event, use reserve funds for nonscheduled purposes
1451 to mitigate further damage to units or common elements or to
1452 make the condominium accessible for repairs.
1453      7.  Except in cases of emergency, or unless otherwise
1454 provided for in the bylaws or approved by a vote of a majority
1455 of the unit owners in advance, the board of administration may
1456 not apply for or accept a loan or line of credit in an amount
1457 that exceeds 10 percent of the association's annual budget for
1458 the current year.
1459      (g)  Assessments.--After the declaration has been recorded,
1460 and until such time as the association has been created, all
1461 common expenses shall be paid by the developer. Assessments
1462 shall be levied in an amount determined by the adopted budget or
1463 an authorized special assessment. The manner of collecting from
1464 the unit owners their shares of the common expenses shall be
1465 stated in the bylaws. Assessments shall be made against units on
1466 a quarter-annual, or more frequent, basis not less frequently
1467 than quarterly in an amount which is not less than that required
1468 to provide funds in advance for payment of all of the
1469 anticipated current operating expenses and for all of the unpaid
1470 operating expenses previously incurred. Nothing in this
1471 paragraph shall preclude the right of an association to
1472 accelerate assessments of an owner delinquent in payment of
1473 common expenses against whom a lien has been filed. Accelerated
1474 assessments shall be due and payable after on the date the claim
1475 of lien is filed. Such accelerated assessments shall include the
1476 amounts due for the remainder of the budget year in which the
1477 claim of lien was filed.
1478      (h)  Amendment of bylaws.--
1479      1.  The method by which the bylaws may be amended
1480 consistent with the provisions of this chapter shall be stated.
1481 If the bylaws fail to provide a method of amendment, the bylaws
1482 may be amended if the amendment is approved by the owners of not
1483 less than two-thirds of the voting interests.
1484      2.  No bylaw shall be revised or amended by reference to
1485 its title or number only. Proposals to amend existing bylaws
1486 shall contain the full text of the bylaws to be amended; new
1487 words shall be inserted in the text underlined, and words to be
1488 deleted shall be lined through with hyphens. However, if the
1489 proposed change is so extensive that this procedure would
1490 hinder, rather than assist, the understanding of the proposed
1491 amendment, it is not necessary to use underlining and hyphens as
1492 indicators of words added or deleted, but, instead, a notation
1493 must be inserted immediately preceding the proposed amendment in
1494 substantially the following language: "Substantial rewording of
1495 bylaw. See bylaw _____ for present text."
1496      3.  Nonmaterial errors or omissions in the bylaw process
1497 will not invalidate an otherwise properly promulgated amendment.
1498      (i)  Transfer fees.--No charge shall be made by the
1499 association or any body thereof in connection with the sale,
1500 mortgage, lease, sublease, or other transfer of a unit unless
1501 the association is required to approve such transfer and a fee
1502 for such approval is provided for in the declaration, articles,
1503 or bylaws. Any such fee may be preset, but in no event may such
1504 fee exceed $100 per applicant other than husband/wife or
1505 parent/dependent child, which are considered one applicant.
1506 However, if the lease or sublease is a renewal of a lease or
1507 sublease with the same lessee or sublessee, no charge shall be
1508 made. The foregoing notwithstanding, an association may, if the
1509 authority to do so appears in the declaration or bylaws, require
1510 that a prospective lessee place a security deposit, in an amount
1511 not to exceed the equivalent of 1 month's rent, into an escrow
1512 account maintained by the association. The security deposit
1513 shall protect against damages to the common elements or
1514 association property. Payment of interest, claims against the
1515 deposit, refunds, and disputes under this paragraph shall be
1516 handled in the same fashion as provided in part II of chapter
1517 83.
1518      (j)  Recall of board members.--Subject to the provisions of
1519 s. 718.301, any member of the board of administration may be
1520 recalled and removed from office with or without cause by the
1521 vote or agreement in writing by a majority of all the voting
1522 interests. A special meeting of the unit owners to recall a
1523 member or members of the board of administration may be called
1524 by 10 percent of the voting interests giving notice of the
1525 meeting as required for a meeting of unit owners, and the notice
1526 shall state the purpose of the meeting. Electronic transmission
1527 may not be used as a method of giving notice of a meeting called
1528 in whole or in part for this purpose.
1529      1.  If the recall is approved by a majority of all voting
1530 interests by a vote at a meeting, the recall will be effective
1531 as provided herein. The board shall duly notice and hold a board
1532 meeting within 5 full business days of the adjournment of the
1533 unit owner meeting to recall one or more board members. At the
1534 meeting, the board shall either certify the recall, in which
1535 case such member or members shall be recalled effective
1536 immediately, and the member or members recalled shall turn over
1537 to the board within 5 full business days any and all records and
1538 property of the association in their possession, or shall 
1539 proceed as set forth in subparagraph 3.
1540      2.  Beginning January 1, 2008, if the proposed recall is by
1541 an agreement in writing by a majority of all voting interests,
1542 the agreement in writing or a copy thereof shall be served on
1543 the association and the ombudsman appointed pursuant to s.
1544 718.5011, together with a current copy of the unit owner roster,
1545 by certified mail or by personal service, Monday through Friday,
1546 excluding legal holidays, between the hours of 8:00 a.m. and
1547 5:00 p.m., in the manner authorized by chapter 48 and the
1548 Florida Rules of Civil Procedure. The
1555 board of administration shall duly notice and hold a meeting of
1556 the board within 5 full business days after receipt of the
1557 agreement in writing. At the meeting, the board shall either
1558 certify the written agreement to recall a member or members of
1559 the board, the in which case such member or members shall be
1560 recalled effective immediately and shall turn over to the board
1561 within 5 full business days any and all records and property of
1562 the association in their possession, or proceed as described in
1563 subparagraph 3.
1564      3.  If the board determines not to certify the
1565 written agreement to recall a member or members of the board, or
1566 does not certify the recall by a vote at a meeting, the
1567 board shall, within 5 full business days after the
1585 meeting, file with the division a
1586 petition for arbitration pursuant to the procedures in s.
1587 718.1255. For the purposes of this section, the unit owners who
1588 voted at the meeting or who executed the agreement in writing
1589 shall constitute one party under the petition for arbitration.
1590 If the arbitrator certifies the recall as to any member or
1591 members of the board, the recall will be effective upon mailing
1592 of the final order of arbitration to the association. If the
1593 association fails to comply with the order of the arbitrator,
1594 the division may take action pursuant to s. 718.501. Any member
1595 or members so recalled shall deliver to the board any and all
1596 records of the association in their possession within 5 full
1597 business days of the effective date of the recall.
1598      4.  If the board fails to duly notice and hold a board
1599 meeting within 5 full business days of service of an agreement
1600 in writing or within 5 full business days of the adjournment of
1601 the unit owner recall meeting, the recall shall be deemed
1602 effective and the board members so recalled shall immediately
1603 turn over to the board any and all records and property of the
1604 association.
1605     5.  If a vacancy occurs on the board as a result of a
1606 recall and less than a majority of the board members are
1607 removed, the vacancy may be filled by the affirmative vote of a
1608 majority of the remaining directors, notwithstanding any
1609 provision to the contrary contained in this subsection. If
1610 vacancies occur on the board as a result of a recall and a
1611 majority or more of the board members are removed, the vacancies
1612 shall be filled in accordance with procedural rules to be
1613 adopted by the division, which rules need not be consistent with
1614 this subsection. The rules must provide procedures governing the
1615 conduct of the recall election as well as the operation of the
1616 association during the period after a recall but prior to the
1617 recall election.
1618      (k)  Arbitration.--There shall be a provision for mandatory
1619 nonbinding arbitration as provided for in s. 718.1255.
1620      (k)(l)  Certificate of compliance.--There shall be a
1621 provision that a certificate of compliance from a licensed
1622 electrical contractor or electrician may be accepted by the
1623 association's board as evidence of compliance of the condominium
1624 units with the applicable fire and life safety code.
1625 Notwithstanding the provisions of chapter 633 or of any other
1626 code, statute, ordinance, administrative rule, or regulation, or
1627 any interpretation of the foregoing, an association,
1628 condominium, or unit owner is not obligated to retrofit the
1629 common elements or units of a residential condominium with a
1630 fire sprinkler system or other engineered lifesafety system in a
1631 building that has been certified for occupancy by the applicable
1632 governmental entity, if the unit owners have voted to forego
1633 such retrofitting and engineered lifesafety system by the
1634 affirmative vote of two-thirds of all voting interests in the
1635 affected condominium. However, a condominium association may not
1636 vote to forego the retrofitting with a fire sprinkler system of
1637 common areas in a high-rise building. For purposes of this
1638 subsection, the term "high-rise building" means a building that
1639 is greater than 75 feet in height where the building height is
1640 measured from the lowest level of fire department access to the
1641 floor of the highest occupiable story. For purposes of this
1642 subsection, the term "common areas" means any enclosed hallway,
1643 corridor, lobby, stairwell, or entryway. In no event shall the
1644 local authority having jurisdiction require completion of
1645 retrofitting of common areas with a sprinkler system before the
1646 end of 2014.
1647      1.  A vote to forego retrofitting may be obtained by
1648 limited proxy or by a ballot personally cast at a duly called
1649 membership meeting, or by execution of a written consent by the
1650 member, and shall be effective upon the recording of a
1651 certificate attesting to such vote in the public records of the
1652 county where the condominium is located. The association shall
1653 mail, hand deliver, or electronically transmit to each unit
1654 owner written notice at least 14 days prior to such membership
1655 meeting in which the vote to forego retrofitting of the required
1656 fire sprinkler system is to take place. Within 30 days after the
1657 association's opt-out vote, notice of the results of the opt-out
1658 vote shall be mailed, hand delivered, or electronically
1659 transmitted to all unit owners. Evidence of compliance with this
1660 30-day notice shall be made by an affidavit executed by the
1661 person providing the notice and filed among the official records
1662 of the association. After such notice is provided to each owner,
1663 a copy of such notice shall be provided by the current owner to
1664 a new owner prior to closing and shall be provided by a unit
1665 owner to a renter prior to signing a lease.
1666      2.  As part of the information collected annually from
1667 condominiums, the division shall require condominium
1668 associations to report the membership vote and recording of a
1669 certificate under this subsection and, if retrofitting has been
1670 undertaken, the per-unit cost of such work. The division shall
1671 annually report to the Division of State Fire Marshal of the
1672 Department of Financial Services the number of condominiums that
1673 have elected to forego retrofitting.
1674      (l)(m)  Common elements; limited power to convey.--
1675      1.  With respect to condominiums created on or after
1676 October 1, 1994, the bylaws shall include a provision granting
1677 the association a limited power to convey a portion of the
1678 common elements to a condemning authority for the purpose of
1679 providing utility easements, right-of-way expansion, or other
1680 public purposes, whether negotiated or as a result of eminent
1681 domain proceedings.
1682      2.  In any case where the bylaws are silent as to the
1683 association's power to convey common elements as described in
1684 subparagraph 1., the bylaws shall be deemed to include the
1685 provision described in subparagraph 1.
1686      Section 7.  Section 718.113, Florida Statutes, is amended
1687 to read:
1688      718.113  Maintenance; limitation upon improvement; display
1689 of flag; display of religious decorations; hurricane shutters.--
1690      (1)  Maintenance of the common elements is the
1691 responsibility of the association. The declaration may provide
1692 that certain limited common elements shall be maintained by
1693 those entitled to use the limited common elements or that the
1694 association shall provide the maintenance, either as a common
1695 expense or with the cost shared only by those entitled to use
1696 the limited common elements. If the maintenance is to be by the
1697 association at the expense of only those entitled to use the
1698 limited common elements, the declaration shall describe in
1699 detail the method of apportioning such costs among those
1700 entitled to use the limited common elements, and the association
1701 may use the provisions of s. 718.116 to enforce payment of the
1702 shares of such costs by the unit owners entitled to use the
1703 limited common elements.
1704      (2)(a)  Except as otherwise provided in this section, there
1705 shall be no material alteration or substantial additions to the
1706 common elements or to real property which is association
1707 property, except in a manner provided in the declaration as
1708 originally recorded or as amended under the procedures provided
1709 therein. If the declaration as originally recorded or as amended
1710 under the procedures provided therein does not specify the
1711 procedure for approval of material alterations or substantial
1712 additions, 75 percent of the total voting interests of the
1713 association must approve the alterations or additions.
1714      (b)  There shall not be any material alteration of, or
1715 substantial addition to, the common elements of any condominium
1716 operated by a multicondominium association unless approved in
1717 the manner provided in the declaration of the affected
1718 condominium or condominiums as originally recorded or as amended
1719 under the procedures provided therein. If a declaration as
1720 originally recorded or as amended under the procedures provided
1721 therein does not specify a procedure for approving such an
1722 alteration or addition, the approval of 75 percent of the total
1723 voting interests of each affected condominium is required. This
1724 subsection does not prohibit a provision in any declaration,
1725 articles of incorporation, or bylaws as originally recorded or
1726 as amended under the procedures provided therein requiring the
1727 approval of unit owners in any condominium operated by the same
1728 association or requiring board approval before a material
1729 alteration or substantial addition to the common elements is
1730 permitted. This paragraph is intended to clarify existing law
1731 and applies to associations existing on the effective date of
1732 this act.
1733      (c)  There shall not be any material alteration or
1734 substantial addition made to association real property operated
1735 by a multicondominium association, except as provided in the
1736 declaration, articles of incorporation, or bylaws as originally
1737 recorded or as amended under the procedures provided therein. If
1738 the declaration, articles of incorporation, or bylaws as
1739 originally recorded or as amended under the procedures provided
1740 therein do not specify the procedure for approving an alteration
1741 or addition to association real property, the approval of 75
1742 percent of the total voting interests of the association is
1743 required. This paragraph is intended to clarify existing law and
1744 applies to associations existing on the effective date of this
1745 act.
1746      (3)  A unit owner shall not do anything within his or her
1747 unit or on the common elements which would adversely affect the
1748 safety or soundness of the common elements or any portion of the
1749 association property or condominium property which is to be
1750 maintained by the association.
1751      (4)  Any unit owner may display one portable, removable
1752 United States flag in a respectful way and, on Armed Forces Day,
1753 Memorial Day, Flag Day, Independence Day, and Veterans Day, may
1754 display in a respectful way portable, removable official flags,
1755 not larger than 41/2 feet by 6 feet, that represent the United
1756 States Army, Navy, Air Force, Marine Corps, or Coast Guard,
1757 regardless of any declaration rules or requirements dealing with
1758 flags or decorations.
1759      (5)  Each board of administration shall, at each annual
1760 meeting, adopt or restate hurricane shutter specifications for
1761 each building within each condominium operated by the
1762 association which shall include color, style, and other factors
1763 deemed relevant by the board. All specifications adopted or
1764 restated by the board shall comply with the applicable building
1765 code. Notwithstanding any provision to the contrary in the
1766 condominium documents, if approval is required by the documents,
1767 a board shall not refuse to approve the installation or
1768 replacement of hurricane shutters conforming to the
1769 specifications adopted by the board. The board may, subject to
1770 the provisions of s. 718.3026, and the approval of a majority of
1771 voting interests of the condominium, install hurricane shutters
1772 and may maintain, repair, or replace such approved hurricane
1773 shutters or hurricane protection that complies with the
1774 applicable building code, whether on or within common elements,
1775 limited common elements, units, or association property.
1776 However, where laminated glass or window film architecturally
1777 designed to function as hurricane protection which complies with
1778 the applicable building code has been installed, the board may
1779 not install hurricane shutters. The board may operate shutters
1780 installed pursuant to this subsection without permission of the
1781 unit owners only where such operation is necessary to preserve
1782 and protect the condominium property and association property.
1783 The installation, replacement, operation, repair, and
1784 maintenance of such shutters in accordance with the procedures
1785 set forth herein shall not be deemed a material alteration to
1786 the common elements or association property within the meaning
1787 of this section.
1788      (6)  Every 5 years, the board of administration shall have
1789 the condominium buildings inspected by a professional engineer
1790 or professional architect registered in the state for the
1791 purpose of determining that the building is structurally and
1792 electrically safe. The engineer or architect shall provide a
1793 report indicating the manner and type of inspection forming the
1794 basis for the report and description of any matters identified
1795 as requiring remedial action. The report shall become an
1796 official record of the association to be provided to the members
1797 upon request pursuant to s. 718.111(12).
1798      (7)  No association may prohibit the attachment of
1799 religious items at the door or at the entrance of the unit. The
1800 may not adopt reasonable size restrictions for such items.
1808      Section 8.  Paragraph (d) of subsection (1) of section
1809 718.115, Florida Statutes, is amended to read:
1810      718.115  Common expenses and common surplus.--
1811      (1)
1812      (d)  If so provided in the declaration, the cost of a
1813 master antenna television system or duly franchised cable
1814 television service obtained pursuant to a bulk contract for
1815 basic service shall be deemed a common expense. If the
1816 declaration does not provide for the cost of a master antenna
1817 television system or duly franchised basic cable television
1818 service obtained under a bulk contract as a common expense, the
1819 board may enter into such a contract, and the cost of the
1820 service will be a common expense but allocated on a per-unit
1821 basis rather than a percentage basis if the declaration provides
1822 for other than an equal sharing of common expenses, and any
1823 contract entered into before July 1, 1998, in which the cost of
1824 the service is not equally divided among all unit owners, may be
1825 changed by vote of a majority of the voting interests present at
1826 a regular or special meeting of the association, to allocate the
1827 cost equally among all units. The contract shall be for a term
1828 of not less than 2 years.
1829      1.  Any contract made by the board after the effective date
1830 hereof for a community antenna system or duly franchised basic
1831 cable television service may be canceled by a majority of the
1832 voting interests present at the next regular or special meeting
1833 of the association. Any member may make a motion to cancel said
1834 contract, but if no motion is made or if such motion fails to
1835 obtain the required majority at the next regular or special
1836 meeting, whichever is sooner, following the making of the
1837 contract, then such contract shall be deemed ratified for the
1838 term therein expressed.
1839      2.  Any such contract shall provide, and shall be deemed to
1840 provide if not expressly set forth, that any hearing-impaired or
1841 legally blind unit owner who does not occupy the unit with a
1842 non-hearing-impaired or sighted person, or any unit owner
1843 receiving supplemental security income under Title XVI of the
1844 Social Security Act or food stamps as administered by the
1845 Department of Children and Family Services pursuant to s.
1846 414.31, may discontinue the service without incurring disconnect
1847 fees, penalties, or subsequent service charges, and, as to such
1848 units, the owners shall not be required to pay any common
1849 expenses charge related to such service. If less than all
1850 members of an association share the expenses of cable
1851 television, the expense shall be shared equally by all
1852 participating unit owners. The association may use the
1853 provisions of s. 718.116 to enforce payment of the shares of
1854 such costs by the unit owners receiving cable television.
1880      Section 9.  Section 718.1224, Florida Statutes, is created
1881 to read:
1882      718.1224  Prohibition against SLAPP suits.--
1883      (1)  It is the intent of the Legislature to protect the
1884 right of condominium unit owners to exercise their rights to
1885 instruct their representatives and petition for redress of
1886 grievances before the various governmental entities of this
1887 state as protected by the First Amendment to the United States
1888 Constitution and s. 5, Art. I of the State Constitution. The
1889 Legislature recognizes that strategic lawsuits against public
1890 participation, or "SLAPP" suits as they are typically referred
1891 to, have occurred when association members are sued by
1892 individuals, business entities, or governmental entities arising
1893 out of a condominium unit owner's appearance and presentation
1894 before a governmental entity on matters related to the
1895 condominium association. However, it is the public policy of
1896 this state that governmental entities, business organizations,
1897 and individuals not to engage in SLAPP suits, because such
1898 actions are inconsistent with the right of condominium unit
1899 owners to participate in the state's institutions of government.
1900 Therefore, the Legislature finds and declares that prohibiting
1901 such lawsuits by governmental entities, business entities, and
1902 individuals against condominium unit owners who address matters
1903 concerning their condominium association will preserve this
1904 fundamental state policy, preserve the constitutional rights of
1905 condominium unit owners, and ensure the continuation of
1906 representative government in this state. It is the intent of the
1907 Legislature that such lawsuits be expeditiously disposed of by
1908 the courts. As used in this subsection, the term "governmental
1909 entity" means the state, including the executive, legislative,
1910 and judicial branches of government, the independent
1911 establishments of the state, counties, municipalities,
1912 districts, authorities, boards, or commissions, or any agencies
1913 of these branches which are subject to chapter 286.
1914      (2)  A governmental entity, business organization, or
1915 individual in this state may not file or cause to be filed
1916 through its employees or agents any lawsuit, cause of action,
1917 claim, cross-claim, or counterclaim against a condominium unit
1918 owner without merit and solely because such condominium unit
1919 owner has exercised the right to instruct his or her
1920 representatives or the right to petition for redress of
1921 grievances before the various governmental entities of this
1922 state, as protected by the First Amendment to the United States
1923 Constitution and s. 5, Art. I of the State Constitution.
1924      (3)  A condominium unit owner sued by a governmental
1925 entity, business organization, or individual in violation of
1926 this section has a right to an expeditious resolution of a claim
1927 that the suit is in violation of this section. A condominium
1928 unit owner may petition the court for an order dismissing the
1929 action or granting final judgment in favor of that condominium
1930 unit owner. The petitioner may file a motion for summary
1931 judgment, together with supplemental affidavits, seeking a
1932 determination that the governmental entity's, business
1933 organization's, or individual's lawsuit has been brought in
1934 violation of this section. The governmental entity, business
1935 organization, or individual shall thereafter file its response
1936 and any supplemental affidavits. As soon as practicable, the
1937 court shall set a hearing on the petitioner's motion, which
1938 shall be held at the earliest possible time after the filing of
1939 the governmental entity's, business organization's or
1940 individual's response. The court may award the condominium unit
1941 owner sued by the governmental entity, business organization, or
1942 individual actual damages arising from the governmental
1943 entity's, individual's, or business organization's violation of
1944 this section. A court may treble the damages awarded to a
1945 prevailing condominium unit owner and shall state the basis for
1946 the treble damages award in its judgment. The court shall award
1947 the prevailing party reasonable attorney's fees and costs
1948 incurred in connection with a claim that an action was filed in
1949 violation of this section.
1950      (4)  Condominium associations may not expend association
1951 funds in prosecuting a SLAPP suit against a condominium unit
1952 owner.
1953      Section 10.  Subsection (4) of section 718.1255, Florida
1954 Statutes, is amended to read:
1955      718.1255  Alternative dispute resolution; voluntary
1956 mediation; mandatory nonbinding arbitration; legislative
1957 findings.--
1958      (4)  MANDATORY NONBINDING ARBITRATION AND MEDIATION OF
1959 DISPUTES.--The Division of Florida Land Sales, Condominiums,
1960 and Mobile Homes of the Department of
1961 Business and Professional Regulation shall employ full-time
1962 attorneys to act as arbitrators to conduct the arbitration
1963 hearings provided by this chapter. The division may also certify
1964 attorneys who are not employed by the division to act as
1965 arbitrators to conduct the arbitration hearings provided by this
1966 section. No person may be employed by the department as a full-
1967 time arbitrator unless he or she is a member in good standing of
1968 The Florida Bar. The department shall promulgate rules of
1969 procedure to govern such arbitration hearings including
1970 mediation incident thereto. The decision of an arbitrator shall
1971 be final; however, such a decision shall not be deemed final
1972 agency action. Nothing in this provision shall be construed to
1973 foreclose parties from proceeding in a trial de novo unless the
1974 parties have agreed that the arbitration is binding. If such
1975 judicial proceedings are initiated, the final decision of the
1976 arbitrator shall be admissible in evidence in the trial de novo.
1977      (a)  Prior to the institution of court litigation, a party
1978 to a dispute shall petition the division for nonbinding
1979 arbitration. The petition must be accompanied by a filing fee in
1980 the amount of $50. Filing fees collected under this section must
1981 be used to defray the expenses of the alternative dispute
1982 resolution program.
1983      (b)  The petition must recite, and have attached thereto,
1984 supporting proof that the petitioner gave the respondents:
1985      1.  Advance written notice of the specific nature of the
1986 dispute;
1987      2.  A demand for relief, and a reasonable opportunity to
1988 comply or to provide the relief; and
1989      3.  Notice of the intention to file an arbitration petition
1990 or other legal action in the absence of a resolution of the
1991 dispute.
1992
1993 Failure to include the allegations or proof of compliance with
1994 these prerequisites requires dismissal of the petition without
1995 prejudice.
1996      (c)  Upon receipt, the petition shall be promptly reviewed
1997 by the division to determine the existence of a dispute and
1998 compliance with the requirements of paragraphs (a) and (b). If
1999 emergency relief is required and is not available through
2000 arbitration, a motion to stay the arbitration may be filed. The
2001 motion must be accompanied by a verified petition alleging facts
2002 that, if proven, would support entry of a temporary injunction,
2003 and if an appropriate motion and supporting papers are filed,
2004 the division may abate the arbitration pending a court hearing
2005 and disposition of a motion for temporary injunction.
2006      (d)  Upon determination by the division that a dispute
2007 exists and that the petition substantially meets the
2008 requirements of paragraphs (a) and (b) and any other applicable
2009 rules, a copy of the petition shall forthwith be served by the
2010 division upon all respondents.
2011      (e)  Either before or after the filing of the respondents'
2012 answer to the petition, any party may request that the
2013 arbitrator refer the case to mediation under this section and
2014 any rules adopted by the division. Upon receipt of a request for
2015 mediation, the division shall promptly refer the case contact
2016 the parties to determine if there is agreement that mediation
2017 would be appropriate. If all parties agree, the dispute must be
2018 referred to mediation. Notwithstanding a lack of an agreement by
2019 all parties, The arbitrator may refer a dispute to mediation at
2020 any time.
2021      (f)  Upon referral of a case to mediation, the parties must
2022 select a mutually acceptable mediator. To assist in the
2023 selection, the arbitrator shall provide the parties with a list
2024 of both volunteer and paid mediators that have been certified by
2025 the division under s. 718.501. If the parties are unable to
2026 agree on a mediator within the time allowed by the arbitrator,
2027 the arbitrator shall appoint a mediator from the list of
2028 certified mediators. If a case is referred to mediation, the
2029 parties shall attend a mediation conference, as scheduled by the
2030 parties and the mediator. If any party fails to attend a duly
2031 noticed mediation conference, without the permission or approval
2032 of the arbitrator or mediator, the arbitrator must impose
2033 sanctions against the party, including the striking of any
2034 pleadings filed, the entry of an order of dismissal or default
2035 if appropriate, and the award of costs and attorneys' fees
2036 incurred by the other parties. Unless otherwise agreed to by the
2037 parties or as provided by order of the arbitrator, a party is
2038 deemed to have appeared at a mediation conference by the
2039 physical presence of the party or its representative having full
2040 authority to settle without further consultation, provided that
2041 an association may comply by having one or more representatives
2042 present with full authority to negotiate a settlement and
2043 recommend that the board of administration ratify and approve
2044 such a settlement within 5 days from the date of the mediation
2045 conference. The parties shall share equally the expense of
2046 mediation, unless they agree otherwise.
2047      (g)  The purpose of mediation as provided for by this
2048 section is to present the parties with an opportunity to resolve
2049 the underlying dispute in good faith, and with a minimum
2050 expenditure of time and resources.
2051      (h)  Mediation proceedings must generally be conducted in
2052 accordance with the Florida Rules of Civil Procedure, and these
2053 proceedings are privileged and confidential to the same extent
2054 as court-ordered mediation. Persons who are not parties to the
2055 dispute are not allowed to attend the mediation conference
2056 without the consent of all parties, with the exception of
2057 counsel for the parties and corporate representatives designated
2058 to appear for a party. If the mediator declares an impasse after
2059 a mediation conference has been held, the arbitration proceeding
2060 terminates, unless all parties agree in writing to continue the
2061 arbitration proceeding, in which case the arbitrator's decision
2062 shall be either binding or nonbinding, as agreed upon by the
2063 parties; in the arbitration proceeding, the arbitrator shall not
2064 consider any evidence relating to the unsuccessful mediation
2065 except in a proceeding to impose sanctions for failure to appear
2066 at the mediation conference. If the parties do not agree to
2067 continue arbitration, the arbitrator shall enter an order of
2068 dismissal, and either party may institute a suit in a court of
2069 competent jurisdiction. The parties may seek to recover any
2070 costs and attorneys' fees incurred in connection with
2071 arbitration and mediation proceedings under this section as part
2072 of the costs and fees that may be recovered by the prevailing
2073 party in any subsequent litigation.
2074      (i)  Arbitration shall be conducted according to rules
2075 promulgated by the division. The filing of a petition for
2076 arbitration shall toll the applicable statute of limitations.
2077      (j)  At the request of any party to the arbitration, such
2078 arbitrator shall issue subpoenas for the attendance of witnesses
2079 and the production of books, records, documents, and other
2080 evidence and any party on whose behalf a subpoena is issued may
2081 apply to the court for orders compelling such attendance and
2082 production. Subpoenas shall be served and shall be enforceable
2083 in the manner provided by the Florida Rules of Civil Procedure.
2084 Discovery may, in the discretion of the arbitrator, be permitted
2085 in the manner provided by the Florida Rules of Civil Procedure.
2086 Rules adopted by the division may authorize any reasonable
2087 sanctions except contempt for a violation of the arbitration
2088 procedural rules of the division or for the failure of a party
2089 to comply with a reasonable nonfinal order issued by an
2090 arbitrator which is not under judicial review.
2091      (k)  The arbitration decision shall be presented to the
2092 parties in writing. An arbitration decision is final in those
2093 disputes in which the parties have agreed to be bound. An
2094 arbitration decision is also final if a complaint for a trial de
2095 novo is not filed in a court of competent jurisdiction in which
2096 the condominium is located within 30 days. The right to file for
2097 a trial de novo entitles the parties to file a complaint in the
2098 appropriate trial court for a judicial resolution of the
2099 dispute. The prevailing party in an arbitration proceeding shall
2100 be awarded the costs of the arbitration and reasonable
2101 attorney's fees in an amount determined by the arbitrator. Such
2102 an award shall include the costs and reasonable attorney's fees
2103 incurred in the arbitration proceeding as well as the costs and
2104 reasonable attorney's fees incurred in preparing for and
2105 attending any scheduled mediation.
2106      (l)  The party who files a complaint for a trial de novo
2107 shall be assessed the other party's arbitration costs, court
2108 costs, and other reasonable costs, including attorney's fees,
2109 investigation expenses, and expenses for expert or other
2110 testimony or evidence incurred after the arbitration hearing if
2111 the judgment upon the trial de novo is not more favorable than
2112 the arbitration decision. If the judgment is more favorable, the
2113 party who filed a complaint for trial de novo shall be awarded
2114 reasonable court costs and attorney's fees.
2115      (m)  Any party to an arbitration proceeding may enforce an
2116 arbitration award by filing a petition in a court of competent
2117 jurisdiction in which the condominium is located. A petition may
2118 not be granted unless the time for appeal by the filing of a
2119 complaint for trial de novo has expired. If a complaint for a
2120 trial de novo has been filed, a petition may not be granted with
2121 respect to an arbitration award that has been stayed. If the
2122 petition for enforcement is granted, the petitioner shall
2123 recover reasonable attorney's fees and costs incurred in
2124 enforcing the arbitration award. A mediation settlement may also
2125 be enforced through the county or circuit court, as applicable,
2126 and any costs and fees incurred in the enforcement of a
2127 settlement agreement reached at mediation must be awarded to the
2128 prevailing party in any enforcement action.
2129      Section 11.  Subsection (1) of section 718.302, Florida
2130 Statutes, is amended to read:
2131      718.302  Agreements entered into by the association.--
2132      (1)  Any grant or reservation made by a declaration, lease,
2133 or other document, and any contract made by an association prior
2134 to assumption of control of the association by unit owners other
2135 than the developer, that provides for services, products,
2136 operation, maintenance, or management of a condominium
2137 association or property serving the unit owners of a condominium
2138 shall be fair and reasonable, and such grant, reservation, or
2139 contract may be canceled by unit owners other than the
2140 developer:
2141      (a)  If the association operates only one condominium and
2142 the unit owners other than the developer have assumed control of
2143 the association, or if unit owners other than the developer own
2144 not less than 75 percent of the voting interests in the
2145 condominium, the cancellation shall be by concurrence of the
2146 owners of not less than 75 percent of the voting interests other
2147 than the voting interests owned by the developer. If a grant,
2148 reservation, or contract is so canceled and the unit owners
2149 other than the developer have not assumed control of the
2150 association, the association shall make a new contract or
2151 otherwise provide for maintenance, management, or operation in
2152 lieu of the canceled obligation, at the direction of the owners
2153 of not less than a majority of the voting interests in the
2154 condominium other than the voting interests owned by the
2155 developer.
2156      (b)  If the association operates more than one condominium
2157 and the unit owners other than the developer have not assumed
2158 control of the association, and if unit owners other than the
2159 developer own at least 75 percent of the voting interests in a
2160 condominium operated by the association, any grant, reservation,
2161 or contract for maintenance, management, or operation of
2162 buildings containing the units in that condominium or of
2163 improvements used only by unit owners of that condominium may be
2164 canceled by concurrence of the owners of at least 75 percent of
2165 the voting interests in the condominium other than the voting
2166 interests owned by the developer. No grant, reservation, or
2167 contract for maintenance, management, or operation of
2168 recreational areas or any other property serving more than one
2169 condominium, and operated by more than one association, may be
2170 canceled except pursuant to paragraph (d).
2171      (c)  If the association operates more than one condominium
2172 and the unit owners other than the developer have assumed
2173 control of the association, the cancellation shall be by
2174 concurrence of the owners of not less than 75 percent of the
2175 total number of voting interests in all condominiums operated by
2176 the association other than the voting interests owned by the
2177 developer.
2178      (d)  If the owners of units in a condominium have the right
2179 to use property in common with owners of units in other
2180 condominiums and those condominiums are operated by more than
2181 one association, no grant, reservation, or contract for
2182 maintenance, management, or operation of the property serving
2183 more than one condominium may be canceled until unit owners
2184 other than the developer have assumed control of all of the
2185 associations operating the condominiums that are to be served by
2186 the recreational area or other property, after which
2187 cancellation may be effected by concurrence of the owners of not
2188 less than 75 percent of the total number of voting interests in
2189 those condominiums other than voting interests owned by the
2190 developer.
2191      Section 12.  Paragraphs (f) and (g) are added to subsection
2192 (1) of section 718.3025, Florida Statutes, to read:
2193      718.3025  Agreements for operation, maintenance, or
2194 management of condominiums; specific requirements.--
2195      (1)  No written contract between a party contracting to
2196 provide maintenance or management services and an association
2197 which contract provides for operation, maintenance, or
2198 management of a condominium association or property serving the
2199 unit owners of a condominium shall be valid or enforceable
2200 unless the contract:
2201      (f)  Requires that all obligations under the contract be
2202 completed within a 1-year period.
2203      (g)  Contains a provision expressly prohibiting automatic
2204 renewal of the contract.
2205      Section 13.  Paragraph (a) of subsection (2) of section
2206 718.3026, Florida Statutes, is amended to read:
2207      718.3026  Contracts for products and services; in writing;
2208 bids; exceptions.--Associations with less than 100 units may opt
2209 out of the provisions of this section if two-thirds of the unit
2210 owners vote to do so, which opt-out may be accomplished by a
2211 proxy specifically setting forth the exception from this
2212 section.
2213      (2)(a)1.  Notwithstanding the foregoing, contracts with
2214 employees of the association, and contracts for attorney,
2215 accountant, architect, community association manager, timeshare
2216 management firm, engineering, and landscape architect services
2217 are not subject to the provisions of this section.
2218      2.  A contract executed before January 1, 1992, and any
2219 renewal thereof, is not subject to the competitive bid
2220 requirements of this section. If a contract was awarded under
2221 the competitive bid procedures of this section, any renewal of
2222 that contract is not subject to such competitive bid
2223 requirements if the contract contains a provision that allows
2224 the board to cancel the contract on 30 days' notice. Materials,
2225 equipment, or services provided to a condominium under a local
2226 government franchise agreement by a franchise holder are not
2227 subject to the competitive bid requirements of this section. A
2228 contract with a manager, if made by a competitive bid, may be
2229 made for up to 3 years. A condominium whose declaration or
2230 bylaws provides for competitive bidding for services may operate
2231 under the provisions of that declaration or bylaws in lieu of
2232 this section if those provisions are not less stringent than the
2233 requirements of this section.
2234      3.  A contract by and between a service provider and an
2235 association shall not be for a term in excess of 3 years and
2236 shall not contain an automatic renewal clause.
2237      4.  A contract for construction or repair of the property
2238 that exceeds 10 percent of the total annual budget of the
2239 association, including reserves, should have the approval of an
2240 attorney hired by the association.
2241      Section 14.  Subsection (3) of section 718.303, Florida
2242 Statutes, is amended and subsection (4) is added to that
2243 section, to read:
2244      718.303  Obligations of owners; waiver; levy of fine
2245 against unit by association.--
2246      (3)  If the declaration or bylaws so provide, the
2247 association may levy reasonable fines against a unit for the
2248 failure of the owner of the unit, or its occupant, licensee, or
2249 invitee, to comply with any provision of the declaration, the
2250 association bylaws, or reasonable rules of the association. No
2251 fine will become a lien against a unit. No fine may exceed $100
2252 per violation. However, a fine may be levied on the basis of
2253 each day of a continuing violation, with a single notice and
2254 opportunity for hearing, provided that no such fine shall in the
2255 aggregate exceed $1,000. No fine may be levied except after
2256 giving reasonable notice and opportunity for a hearing to the
2257 unit owner and, if applicable, its licensee or invitee. The
2258 hearing must be held before a committee of other unit owners who
2259 are not members of the board of administration of the
2260 association. If the committee does not agree with the fine, the
2261 fine may not be levied. The provisions of this subsection do not
2262 apply to unoccupied units.
2263      (4)  Anyone subject to an action under this section shall
2264 be notified of the violation by certified mail, return receipt
2265 requested, and, except in the case of eminent danger to person
2266 or property, have 30 days in which to respond in writing. If no
2267 response is provided and the violation continues or is repeated,
2268 the association may proceed under subsections (1) and (2)
2269 without further notice except as provided in subsection (3).
2270      Section 15.  Section 718.501, Florida Statutes, is amended
2271 to read:
2272      718.501  Powers and duties of Division of Florida Land
2273 Sales, Condominiums, and Mobile Homes.--
2275      (1)  The Division of Florida Land Sales, Condominiums,
2276 and Mobile Homes of the Department of
2277 Business and Professional Regulation, referred to as the
2278 "division" in this part, in addition to other powers and duties
2279 prescribed by chapter 498, has the power to enforce and ensure
2280 compliance with the provisions of this chapter and rules
2281 promulgated pursuant hereto relating to the development,
2282 construction, sale, lease, ownership, operation, and management
2283 of residential condominium units. In performing its duties, the
2284 division has the following powers and duties:
2285      (a)  The division may make necessary public or private
2286 investigations within or outside this state to determine whether
2287 any person has violated this chapter or any rule or order
2288 hereunder, to aid in the enforcement of this chapter, or to aid
2289 in the adoption of rules or forms hereunder.
2290      (b)  The division may require or permit any person to file
2291 a statement in writing, under oath or otherwise, as the division
2292 determines, as to the facts and circumstances concerning a
2293 matter to be investigated.
2294      (c)  For the purpose of any investigation under this
2295 chapter, the division director or any officer or employee
2296 designated by the division director may administer oaths or
2297 affirmations, subpoena witnesses and compel their attendance,
2298 take evidence, and require the production of any matter which is
2299 relevant to the investigation, including the existence,
2300 description, nature, custody, condition, and location of any
2301 books, documents, or other tangible things and the identity and
2302 location of persons having knowledge of relevant facts or any
2303 other matter reasonably calculated to lead to the discovery of
2304 material evidence. Upon the failure by a person to obey a
2305 subpoena or to answer questions propounded by the investigating
2306 officer and upon reasonable notice to all persons affected
2307 thereby, the division may apply to the circuit court for an
2308 order compelling compliance.
2309      (d)  Notwithstanding any remedies available to unit owners
2310 and associations, if the division has reasonable cause to
2311 believe that a violation of any provision of this chapter or
2312 rule promulgated pursuant hereto has occurred, the division may
2313 institute enforcement proceedings in its own name against any
2314 developer, association, officer, or member of the board of
2315 administration, or its assignees or agents, as follows:
2316      1.  The division may permit a person whose conduct or
2317 actions may be under investigation to waive formal proceedings
2318 and enter into a consent proceeding whereby orders, rules, or
2319 letters of censure or warning, whether formal or informal, may
2320 be entered against the person.
2321      2.  The division may issue an order requiring the
2322 developer, association, officer, or member of the board of
2323 administration, or its assignees or agents, to cease and desist
2324 from the unlawful practice and take such affirmative action as
2325 in the judgment of the division will carry out the purposes of
2326 this chapter. Such affirmative action may include, but is not
2327 limited to, an order requiring a developer to pay moneys
2328 determined to be owed to a condominium association.
2329      3.  The division may bring an action in circuit court on
2330 behalf of a class of unit owners, lessees, or purchasers for
2331 declaratory relief, injunctive relief, or restitution.
2332      4.  The division may impose a civil penalty against a
2333 developer or association, or its assignee or agent, for any
2334 violation of this chapter or a rule promulgated pursuant hereto.
2335 The division may impose a civil penalty individually against any
2336 officer or board member who willfully and knowingly violates a
2337 provision of this chapter, a rule adopted pursuant hereto, or a
2338 final order of the division. The term "willfully and knowingly"
2339 means that the division informed the officer or board member
2340 that his or her action or intended action violates this chapter,
2341 a rule adopted under this chapter, or a final order of the
2342 division and that the officer or board member refused to comply
2343 with the requirements of this chapter, a rule adopted under this
2344 chapter, or a final order of the division. The division, prior
2345 to initiating formal agency action under chapter 120, shall
2346 afford the officer or board member an opportunity to voluntarily
2347 comply with this chapter, a rule adopted under this chapter, or
2348 a final order of the division. An officer or board member who
2349 complies within 10 days is not subject to a civil penalty. A
2350 penalty may be imposed on the basis of each day of continuing
2351 violation, but in no event shall the penalty for any offense
2352 exceed $5,000. By January 1, 1998, the division shall adopt, by
2353 rule, penalty guidelines applicable to possible violations or to
2354 categories of violations of this chapter or rules adopted by the
2355 division. The guidelines must specify a meaningful range of
2356 civil penalties for each such violation of the statute and rules
2357 and must be based upon the harm caused by the violation, the
2358 repetition of the violation, and upon such other factors deemed
2359 relevant by the division. For example, the division may consider
2360 whether the violations were committed by a developer or owner-
2361 controlled association, the size of the association, and other
2362 factors. The guidelines must designate the possible mitigating
2363 or aggravating circumstances that justify a departure from the
2364 range of penalties provided by the rules. It is the legislative
2365 intent that minor violations be distinguished from those which
2366 endanger the health, safety, or welfare of the condominium
2367 residents or other persons and that such guidelines provide
2368 reasonable and meaningful notice to the public of likely
2369 penalties that may be imposed for proscribed conduct. This
2370 subsection does not limit the ability of the division to
2371 informally dispose of administrative actions or complaints by
2372 stipulation, agreed settlement, or consent order. All amounts
2373 collected shall be deposited with the Chief Financial Officer to
2374 the credit of the Division of Florida Land Sales, Condominiums,
2375 and Mobile Homes Trust Fund. If a
2376 developer fails to pay the civil penalty, the division shall
2377 thereupon issue an order directing that such developer cease and
2378 desist from further operation until such time as the civil
2379 penalty is paid or may pursue enforcement of the penalty in a
2380 court of competent jurisdiction. If an association fails to pay
2381 the civil penalty, the division shall thereupon pursue
2382 enforcement in a court of competent jurisdiction, and the order
2383 imposing the civil penalty or the cease and desist order will
2384 not become effective until 20 days after the date of such order.
2385 Any action commenced by the division shall be brought in the
2386 county in which the division has its executive offices or in the
2387 county where the violation occurred.
2388      (e)  The division shall is authorized to prepare and
2389 disseminate a prospectus and other information to assist
2390 prospective owners, purchasers, lessees, and developers of
2391 residential condominiums in assessing the rights, privileges,
2392 and duties pertaining thereto.
2393      (f)  The division has authority to adopt rules pursuant to
2394 ss. 120.536(1) and 120.54 to implement and enforce the
2395 provisions of this chapter.
2396      (g)  The division shall establish procedures for providing
2397 notice to an association when the division is considering the
2398 issuance of a declaratory statement with respect to the
2399 declaration of condominium or any related document governing in
2400 such condominium community.
2401      (h)  The division shall furnish each association which pays
2402 the fees required by paragraph (2)(a) a copy of this act,
2403 subsequent changes to this act on an annual basis, an amended
2404 version of this act as it becomes available from the Secretary
2405 of State's office on a biennial basis, and the rules promulgated
2406 pursuant thereto on an annual basis.
2407      (i)  The division shall annually provide each association
2408 with a summary of declaratory statements and formal legal
2409 opinions relating to the operations of condominiums which were
2410 rendered by the division during the previous year.
2411      (j)  The division shall provide training programs for
2412 condominium association board members and unit owners in
2413 conjunction with the recommendations of the ombudsman, at the
2414 associations' expense.
2415      (k)  The division shall maintain a toll-free telephone
2416 number accessible to condominium unit owners.
2417      (l)  The division shall develop a program to certify both
2418 volunteer and paid mediators to provide mediation of condominium
2419 disputes. The division shall provide, upon request, a list of
2420 such mediators to any association, unit owner, or other
2421 participant in arbitration proceedings under s. 718.1255
2422 requesting a copy of the list. The division shall include on the
2423 list of volunteer mediators only the names of persons who have
2424 received at least 20 hours of training in mediation techniques
2425 or who have mediated at least 20 disputes. In order to become
2426 initially certified by the division, paid mediators must be
2427 certified by the Supreme Court to mediate court cases in either
2428 county or circuit courts. However, the division may adopt, by
2429 rule, additional factors for the certification of paid
2430 mediators, which factors must be related to experience,
2431 education, or background. Any person initially certified as a
2432 paid mediator by the division must, in order to continue to be
2433 certified, comply with the factors or requirements imposed by
2434 rules adopted by the division.
2435      (m)  When a complaint is made, the division shall conduct
2436 its inquiry with due regard to the interests of the affected
2437 parties. Within 30 days after receipt of a complaint, the
2438 division shall acknowledge the complaint in writing and notify
2439 the complainant whether the complaint is within the jurisdiction
2440 of the division and whether additional information is needed by
2441 the division from the complainant. The division shall conduct
2442 its investigation and shall, within 90 days after receipt of the
2443 original complaint or of timely requested additional
2444 information, take action upon the complaint. However, the
2445 failure to complete the investigation within 90 days does not
2446 prevent the division from continuing the investigation,
2447 accepting or considering evidence obtained or received after 90
2448 days, or taking administrative action if reasonable cause exists
2449 to believe that a violation of this chapter or a rule of the
2450 division has occurred. If an investigation is not completed
2451 within the time limits established in this paragraph, the
2452 division shall, on a monthly basis, notify the complainant in
2453 writing of the status of the investigation. When reporting its
2454 action to the complainant, the division shall inform the
2455 complainant of any right to a hearing pursuant to ss. 120.569
2456 and 120.57.
2457      (n)  Upon a finding that any association has committed a
2458 violation within the jurisdiction of the division, the division
2459 shall require the association to:
2460 mail and post a notice to all unit owners setting forth
2461 the facts and findings relative to any and all violations, as
2462 well as a description of the corrective action required.
2472      (2)(a)  Effective January 1, 1992, each condominium
2473 association which operates more than two units shall pay to the
2474 division an annual fee in the amount of $4 for each residential
2475 unit in condominiums operated by the association. If the fee is
2476 not paid by March 1, then the association shall be assessed a
2477 penalty of 10 percent of the amount due, and the association
2478 will not have standing to maintain or defend any action in the
2479 courts of this state until the amount due, plus any penalty, is
2480 paid.
2481      (b)  All fees shall be deposited in the Division of Florida
2482 Land Sales, Condominiums, and Mobile
2483 Homes Trust Fund as provided by law. 
2486      Section 16.  Section 718.5011, Florida Statutes, is amended
2487 to read:
2488      718.5011  Ombudsman; appointment; administration.--
2489      (1)  There is created an Office of the Condominium
2490 Ombudsman, to be located, solely for administrative purposes,
2491 within the Division of Florida Land Sales, Condominiums,
2492 and Mobile Homes. The ombudsman shall
2493 exercise his or her policymaking and other functions delegated
2494 by this chapter independently of the Department of Business and
2495 Professional Regulation and without approval or control of the
2496 department. The department shall render administrative support
2497 to the Office of the Condominium Ombudsman in matters pertaining
2498 to budget, personnel, office space, equipment, and supplies. All
2499 revenues collected for the office by the department shall be
2500 deposited in a separate fund or account from which the
2501 department may not use or divert the revenues. The functions of
2502 the office shall be funded by the Division of Florida Land
2503 Sales, Condominiums, and Mobile Homes
2504 Trust Fund. The ombudsman shall be a bureau chief of the
2505 division, and the office shall be set within the division in the
2506 same manner as any other bureau is staffed and funded.
2523      Section 17.  Section 718.5012, Florida Statutes, is amended
2524 to read:
2525      718.5012  Ombudsman; powers and duties.--
2526      (1)  The ombudsman shall have the powers that are necessary
2527 to carry out the duties of his or her office, including the
2528 following specific powers:
2529      (a)(1)  To have access to and use of all files and records
2530 of the division.
2531      (b)(2)  To employ professional and clerical staff as
2532 necessary for the efficient operation of the office.
2533      (c)(3)  To prepare and issue reports and recommendations to
2534 the Governor, the department, the division, the Advisory Council
2535 on Condominiums, the President of the Senate, and the Speaker of
2536 the House of Representatives on any matter or subject within the
2537 jurisdiction of the division. The ombudsman shall make
2538 recommendations he or she deems appropriate for legislation
2539 relative to division procedures, rules, jurisdiction, personnel,
2540 and functions.
2541      (d)(4)  To act as liaison between the division, unit
2542 owners, boards of directors, board members, community
2543 association managers, and other affected parties. The ombudsman
2544 shall develop policies and procedures to assist unit owners,
2545 boards of directors, board members, community association
2546 managers, and other affected parties to understand their rights
2547 and responsibilities as set forth in this chapter and the
2548 condominium documents governing their respective association.
2549 The ombudsman shall coordinate and assist in the preparation and
2550 adoption of educational and reference material, and shall
2551 endeavor to coordinate with private or volunteer providers of
2552 these services, so that the availability of these resources is
2553 made known to the largest possible audience.
2554      (e)(5)  To monitor and review procedures and disputes
2555 concerning condominium elections or meetings, including, but not
2556 limited to, recommending that the division pursue enforcement
2557 action in any manner where there is reasonable cause to believe
2558 that election misconduct has occurred. 
2574      (f)(6)  To make recommendations to the division for changes
2575 in rules and procedures for the filing, investigation, and
2576 resolution of complaints filed by unit owners, associations, and
2577 managers.
2578      (g)(7)  To provide resources to assist members of boards of
2579 directors and officers of associations to carry out their powers
2580 and duties consistent with this chapter, division rules, and the
2581 condominium documents governing the association.
2582      (h)(8)  To order, encourage, and facilitate voluntary
2583 meetings with and between unit owners, boards of directors,
2584 board members, community association managers, and other
2585 affected parties when the meetings may assist in resolving a
2586 dispute within a community association before a person submits a
2587 dispute for a formal or administrative remedy. It is the intent
2588 of the Legislature that the ombudsman act as a neutral resource
2589 for both the rights and responsibilities of unit owners,
2590 associations, and board members.
2602      (2)(9)  Fifteen percent of the total voting interests in a
2603 condominium association, or six unit owners, whichever is
2604 greater, may petition the ombudsman to appoint an election
2605 monitor to attend the annual meeting of the unit owners and
2606 conduct the election of directors. 
2614 The ombudsman shall appoint a division
2615 employee, a person or persons specializing in condominium
2616 election monitoring, or an attorney licensed to practice in this
2617 state as the election monitor. All costs associated with the
2618 election monitoring process shall be paid by the association.
2619 The division shall adopt a rule establishing procedures for the
2620 appointment of election monitors and the scope and extent of the
2621 monitor's role in the election process.
2622      (3)  Any unit owner or association acting in good faith on
2623 the advice or opinion of the office of the ombudsman shall be
2624 immune from any penalties or actions.
2659      Section 18.  Section 718.504, Florida Statutes, is amended
2660 to read:
2661      718.504  Prospectus or offering circular.--Every developer
2662 of a residential condominium which contains more than 20
2663 residential units, or which is part of a group of residential
2664 condominiums which will be served by property to be used in
2665 common by unit owners of more than 20 residential units, shall
2666 prepare a prospectus or offering circular and file it with the
2667 Division of Florida Land Sales, Condominiums, 
2668 and Mobile Homes prior to entering into an
2669 enforceable contract of purchase and sale of any unit or lease
2670 of a unit for more than 5 years and shall furnish a copy of the
2671 prospectus or offering circular to each buyer. In addition to
2672 the prospectus or offering circular, each buyer shall be
2673 furnished a separate page entitled "Frequently Asked Questions
2674 and Answers," which shall be in accordance with a format
2675 approved by the division and a copy of the financial information
2676 required by s. 718.111. This page shall, in readable language,
2677 inform prospective purchasers regarding their voting rights and
2678 unit use restrictions, including restrictions on the leasing of
2679 a unit; shall indicate whether and in what amount the unit
2680 owners or the association is obligated to pay rent or land use
2681 fees for recreational or other commonly used facilities; shall
2682 contain a statement identifying that amount of assessment which,
2683 pursuant to the budget, would be levied upon each unit type,
2684 exclusive of any special assessments, and which shall further
2685 identify the basis upon which assessments are levied, whether
2686 monthly, quarterly, or otherwise; shall state and identify any
2687 court cases in which the association is currently a party of
2688 record in which the association may face liability in excess of
2689 $100,000; and which shall further state whether membership in a
2690 recreational facilities association is mandatory, and if so,
2691 shall identify the fees currently charged per unit type. The
2692 division shall by rule require such other disclosure as in its
2693 judgment will assist prospective purchasers. The prospectus or
2694 offering circular may include more than one condominium,
2695 although not all such units are being offered for sale as of the
2696 date of the prospectus or offering circular. The prospectus or
2697 offering circular must contain the following information:
3044      (21)  An estimated operating budget for the condominium and
3045 the association, and a schedule of the unit owner's expenses shall 
3046 be attached as an exhibit and shall contain the following information:
3048      (a)  The estimated monthly and annual revenues and expenses
3049 of the condominium and the association that are earned by the
3050 association or collected from unit owners by assessments.
3051      (b)  The estimated monthly and annual expenses of each unit
3052 owner for a unit, other than common expenses paid by all unit
3053 owners, payable by the unit owner to persons or entities other
3054 than the association, as well as to the association, including
3055 fees assessed pursuant to s. 718.113(1) for maintenance of
3056 limited common elements where such costs are shared only by
3057 those entitled to use the limited common element, and the total
3058 estimated monthly and annual expense. There may be excluded from
3059 this estimate expenses which are not provided for or
3060 contemplated by the condominium documents, including, but not
3061 limited to, the costs of private telephone; maintenance of the
3062 interior of condominium units, which is not the obligation of
3063 the association; maid or janitorial services privately
3064 contracted for by the unit owners; utility bills billed directly
3065 to each unit owner for utility services to his or her unit;
3066 insurance premiums other than those incurred for policies
3067 obtained by the condominium; and similar personal expenses of
3068 the unit owner. A unit owner's estimated payments for
3069 assessments shall also be stated in the estimated amounts for
3070 the times when they will be due.
3071      (c)  The estimated items of expenses of the condominium and
3072 the association, except as excluded under paragraph (b),
3073 including, but not limited to, the following items, which shall
3074 be stated either as an association expense collectible by
3075 assessments or as unit owners' expenses payable to persons other
3076 than the association:
3077      1.  Expenses for the association and condominium:
3078      a.  Administration of the association.
3079      b.  Management fees.
3080      c.  Maintenance.
3081      d.  Rent for recreational and other commonly used
3082 facilities.
3083      e.  Taxes upon association property.
3084      f.  Taxes upon leased areas.
3085      g.  Insurance.
3086      h.  Security provisions.
3087      i.  Other expenses.
3088      j.  Operating capital.
3089      k.  Reserves.
3090      l.  Fees payable to the division.
3091      2.  Expenses for a unit owner:
3092      a.  Rent for the unit, if subject to a lease.
3093      b.  Rent payable by the unit owner directly to the lessor
3094 or agent under any recreational lease or lease for the use of
3095 commonly used facilities, which use and payment is a mandatory
3096 condition of ownership and is not included in the common expense
3097 or assessments for common maintenance paid by the unit owners to
3098 the association.
3099      (d)  The estimated amounts shall be stated for a period of
3100 at least 12 months and may distinguish between the period prior
3101 to the time unit owners other than the developer elect a
3102 majority of the board of administration and the period after
3103 that date.
4204      Section 19.  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.--
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      (d)  An association shall be deemed to have provided for
4556 reserve accounts when reserve accounts have been initially
4557 established by the developer or when the membership of the
4558 association affirmatively elects to provide for reserves. If
4559 reserve accounts are not initially provided for by the
4560 developer, the membership of the association may elect to do so
4561 upon the affirmative approval of not less than a majority of the
4562 total voting interests of the association. Such approval may be
4563 attained by vote of the members at a duly called meeting of the
4564 membership or upon a written consent executed by not less than a
4565 majority of the total voting interests in the community. The
4566 approval action of the membership shall state that reserve
4567 accounts shall be provided for in the budget and designate the
4568 components for which the reserve accounts are to be established.
4569 Upon approval by the membership, the board of directors shall
4570 provide for the required reserve accounts for inclusion in the
4571 budget in the next fiscal year following the approval and in
4572 each year thereafter. Once established as provided in this
4573 subsection, the reserve accounts shall be funded or maintained
4574 or shall have their funding waived in the manner provided in
4575 paragraph (f).
4576      (e)  The amount to be reserved in any account established
4577 shall be computed by means of a formula that is based upon
4578 estimated remaining useful life and estimated replacement cost
4579 or deferred maintenance expense of each reserve item. The
4580 association may adjust replacement reserve assessments annually
4581 to take into account any changes in estimates of cost or useful
4582 life of a reserve item.
4583      (f)  Once a reserve account or reserve accounts are
4584 established, the membership of the association, upon a majority
4585 vote at a meeting at which a quorum is present, may provide for
4586 no reserves or less reserves than required by this section. If a
4587 meeting of the unit owners is called to determine whether to
4588 waive or reduce the funding of reserves and no such result is
4589 achieved or a quorum is not present, the reserves as included in
4590 the budget shall go into effect. After the turnover, the
4591 developer may vote its voting interest to waive or reduce the
4592 funding of reserves. Any vote taken pursuant to this subsection
4593 to waive or reduce reserves shall be applicable only to one
4594 budget year.
4595      (g)  Funding formulas for reserves authorized by this
4596 section shall be based on either a separate analysis of each of
4597 the required assets or a pooled analysis of two or more of the
4598 required assets.
4599      1.  If the association maintains separate reserve accounts
4600 for each of the required assets, the amount of the contribution
4601 to each reserve account shall be the sum of the following two
4602 calculations:
4603      a.  The total amount necessary, if any, to bring a negative
4604 component balance to zero.
4605      b.  The total estimated deferred maintenance expense or
4606 estimated replacement cost of the reserve component less the
4607 estimated balance of the reserve component as of the beginning
4608 of the period for which the budget will be in effect. The
4609 remainder, if greater than zero, shall be divided by the
4610 estimated remaining useful life of the component.
4611
4612 The formula may be adjusted each year for changes in estimates
4613 and deferred maintenance performed during the year and may
4614 include factors such as inflation and earnings on invested
4615 funds.
4616      2.  If the association maintains a pooled account of two or
4617 more of the required reserve assets, the amount of the
4618 contribution to the pooled reserve account as disclosed on the
4619 proposed budget shall not be less than that required to ensure
4620 that the balance at the beginning of the period for which the
4621 budget will go into effect plus the projected annual cash
4622 inflows over the remaining estimated useful life of all of the
4623 assets that make up the reserve pool are equal to or greater
4624 than the projected annual cash outflows over the remaining
4625 estimated useful lives of all of the assets that make up the
4626 reserve pool, based on the current reserve analysis. The
4627 projected annual cash inflows may include estimated earnings
4628 from investment of principal. The reserve funding formula shall
4629 not include any type of balloon payments.
4630      (h)  Reserve funds and any interest accruing thereon shall
4631 remain in the reserve account or accounts and shall be used only
4632 for authorized reserve expenditures unless their use for other
4633 purposes is approved in advance by a majority vote at a meeting
4634 at which a quorum is present. Prior to turnover of control of an
4635 association by a developer to parcel owners, the developer-
4636 controlled association shall not vote to use reserves for
4637 purposes other than those for which they were intended without
4638 the approval of a majority of all nondeveloper voting interests
4639 voting in person or by limited proxy at a duly called meeting of
4640 the association.
4641      (7)  FINANCIAL REPORTING.--Within 90 days after the end of
4642 the fiscal year, or annually on a date provided in the bylaws,
4643 the association shall prepare and complete, or contract with a
4644 third party for the preparation and completion of, a financial
4645 report for the preceding fiscal year. Within 21 days after the
4646 final financial report is completed by the association or
4647 received from the third party, but not later than 120 days after
4648 the end of the fiscal year or other date as provided in the
4649 bylaws, the association shall prepare an annual financial report
4650 within 60 days after the close of the fiscal year. The
4651 association shall, within the time limits set forth in
4652 subsection (5), provide each member with a copy of the annual
4653 financial report or a written notice that a copy of the
4654 financial report is available upon request at no charge to the
4655 member. Financial reports shall be prepared as follows:
4656      (a)  An association that meets the criteria of this
4657 paragraph shall prepare or cause to be prepared a complete set
4658 of financial statements in accordance with generally accepted
4659 accounting principles as adopted by the Board of Accountancy.
4660 The financial statements shall be based upon the association's
4661 total annual revenues, as follows:
4662      1.  An association with total annual revenues of $100,000
4663 or more, but less than $200,000, shall prepare compiled
4664 financial statements.
4665      2.  An association with total annual revenues of at least
4666 $200,000, but less than $400,000, shall prepare reviewed
4667 financial statements.
4668      3.  An association with total annual revenues of $400,000
4669 or more shall prepare audited financial statements.
4670      (b)1.  An association with total annual revenues of less
4671 than $100,000 shall prepare a report of cash receipts and
4672 expenditures.
4673      2.  An association in a community of fewer than 50 parcels,
4674 regardless of the association's annual revenues, may prepare a
4675 report of cash receipts and expenditures in lieu of financial
4676 statements required by paragraph (a) unless the governing
4677 documents provide otherwise.
4678      3.  A report of cash receipts and disbursement must
4679 disclose the amount of receipts by accounts and receipt
4680 classifications and the amount of expenses by accounts and
4681 expense classifications, including, but not limited to, the
4682 following, as applicable: costs for security, professional, and
4683 management fees and expenses; taxes; costs for recreation
4684 facilities; expenses for refuse collection and utility services;
4685 expenses for lawn care; costs for building maintenance and
4686 repair; insurance costs; administration and salary expenses; and
4687 reserves if maintained by the association.
4688      (c)  If 20 percent of the parcel owners petition the board
4689 for a level of financial reporting higher than that required by
4690 this section, the association shall duly notice and hold a
4691 meeting of members within 30 days of receipt of the petition for
4692 the purpose of voting on raising the level of reporting for that
4693 fiscal year. Upon approval of a majority of the total voting
4694 interests of the parcel owners, the association shall prepare or
4695 cause to be prepared, shall amend the budget or adopt a special
4696 assessment to pay for the financial report regardless of any
4697 provision to the contrary in the governing documents, and shall
4698 provide within 90 days of the meeting or the end of the fiscal
4699 year, whichever occurs later:
4700      1.  Compiled, reviewed, or audited financial statements, if
4701 the association is otherwise required to prepare a report of
4702 cash receipts and expenditures;
4703      2.  Reviewed or audited financial statements, if the
4704 association is otherwise required to prepare compiled financial
4705 statements; or
4706      3.  Audited financial statements if the association is
4707 otherwise required to prepare reviewed financial statements.
4708      (d)  If approved by a majority of the voting interests
4709 present at a properly called meeting of the association, an
4710 association may prepare or cause to be prepared:
4711      1.  A report of cash receipts and expenditures in lieu of a
4712 compiled, reviewed, or audited financial statement;
4713      2.  A report of cash receipts and expenditures or a
4714 compiled financial statement in lieu of a reviewed or audited
4715 financial statement; or
4716      3.  A report of cash receipts and expenditures, a compiled
4717 financial statement, or a reviewed financial statement in lieu
4718 of an audited financial statement.
5269      Section 20.  Section 720.307, Florida Statutes, is amended
5270 to read:
5271      720.307  Transition of association control in a
5272 community.--With respect to homeowners' associations:
5273      (1)  Members other than the developer are entitled to elect
5274 at least a majority of the members of the board of directors of
5275 the homeowners' association when the earlier of the following
5276 events occurs:
5277      (a)  Three months after 75 90 percent of the parcels in all
5278 phases of the community that will ultimately be operated by the
5279 homeowners' association have been conveyed to members; or
5280      (b)  Such other percentage of the parcels has been conveyed
5281 to members, or such other date or event has occurred, as is set
5282 forth in the governing documents in order to comply with the
5283 requirements of any governmentally chartered entity with regard
5284 to the mortgage financing of parcels.
5285
5286 For purposes of this section, the term "members other than the
5287 developer" shall not include builders, contractors, or others
5288 who purchase a parcel for the purpose of constructing
5289 improvements thereon for resale.
5290      (2)  The developer is entitled to elect at least one member
5291 of the board of directors of the homeowners' association as long
5292 as the developer holds for sale in the ordinary course of
5293 business at least 5 percent of the parcels in all phases of the
5294 community. After the developer relinquishes control of the
5295 homeowners' association, the developer may exercise the right to
5296 vote any developer-owned voting interests in the same manner as
5297 any other member, except for purposes of reacquiring control of
5298 the homeowners' association or selecting the majority of the
5299 members of the board of directors.
5300      (3)  Prior to turnover, the developer or owner of all
5301 common areas shall convey the title to all common areas to the
5302 association immediately upon incorporation of the association.
5303 If additional common areas are acquired prior to transition of
5304 control and subject to the governing documents, title to those
5305 common areas shall also be immediately transferred to the
5306 association.
5307      (4)  At the time the members are entitled to elect at least
5308 a majority of the board of directors of the homeowners'
5309 association, the developer shall, at the developer's expense,
5310 within no more than 30 90 days deliver the following documents
5311 to the board:
5312      (a)  All deeds to common property owned by the association
5313 or the developer.
5314      (b)  The original of the association's declarations of
5315 covenants and restrictions.
5316      (c)  A certified copy of the articles of incorporation of
5317 the association.
5318      (d)  A copy of the bylaws.
5319      (e)  The minute books, including all minutes.
5320      (f)  The books and records of the association.
5321      (g)  Policies, rules, and regulations, if any, which have
5322 been adopted.
5323      (h)  Resignations of directors who are required to resign
5324 because the developer is required to relinquish control of the
5325 association.
5326      (i)  The financial records of the association from the date
5327 of incorporation through the date of turnover.
5328      (j)  All association funds and control thereof.
5329      (k)  All tangible property of the association.
5330      (l)  A copy of all contracts which may be in force with the
5331 association as one of the parties.
5332      (m)  A list of the names and addresses and telephone
5333 numbers of all contractors, subcontractors, or others in the
5334 current employ of the association.
5335      (n)  Any and all insurance policies in effect.
5336      (o)  Any permits issued to the association by governmental
5337 entities.
5338      (p)  Any and all warranties in effect.
5339      (q)  A roster of current homeowners and their addresses and
5340 telephone numbers and section and lot numbers.
5341      (r)  Employment and service contracts in effect.
5342      (s)  All other contracts and agreements in effect to which
5343 the association is a party.
5344      (t)  The financial records, including financial statements
5345 of the association, and source documents from the incorporation
5346 of the association through the date of turnover. The records
5347 shall be audited by an independent certified public accountant
5348 for the period of the incorporation of the association or for
5349 the period covered by the last audit, if an audit has been
5350 performed for each fiscal year since incorporation. All
5351 financial statements shall be prepared in accordance with
5352 generally accepted accounting standards and shall be audited in
5353 accordance with generally accepted auditing standards as
5354 prescribed by the Board of Accountancy. The accountant
5355 performing the review shall examine to the extent necessary
5356 supporting documents and records, including the cash
5357 disbursements and related paid invoices to determine whether
5358 expenditures were for association purposes and the billings,
5359 cash receipts, and related records to determine whether the
5360 developer was charged and paid the proper amounts of
5361 assessments. This paragraph applies to associations with a date
5362 of incorporation after December 31, 2007.
5363      (5)(4)  This section applies to any mandatory homeowners'
5364 association existing under this chapter does not apply to a
5365 homeowners' association in existence on the effective date of
5366 this act, or to a homeowners' association, no matter when
5367 created, if such association is created in a community that is
5368 included in an effective development-of-regional-impact
5369 development order as of the effective date of this act, together
5370 with any approved modifications thereof.
2240    Section 21.   Section 718.1257, Florida Statutes is created
2241 to read: 
2242  718.1257.  Emotional support animals.--
2243      (1)  Every unit-owner or renter of a condominium unit in
2244 in this state shall have the right to own a companion animal and to have
2245 such animal live with them in their condominium unit if
2246 such companion animal is deemed helpful to the person's physical
2247 or psychological well-being as attested to by at least two
2248  qualified health care professionals. 
2249 (2)  Any municipal or county code or ordinance, or any 
2250 purported rule, declaration, by-law or other form of restriction
2251 contrary to the right provided in subsection (1) contained in
2252 any governing document of any condominium association shall be
2253 deemed unconscionable, and thus unenforceable, invalid and of no 
2254 legal effect.
2255      (3)  An animal does not require specialized training or
2256 skill in assisting its owner to be classified as a companion
2256 animal pursuant to this section. The animal can be a cat, dog,
2257 ferret, bird, gerbil, or any other commonly accepted
2258 domesticated animal. However, if such training can be
2259 documented, a letter from only one qualified health care
2260 professional is required, as per pre-existing federal disability
2261 and fair housing laws.
2262      (4)  Qualified health professionals include any physician
2263 or advanced registered nurse practitioner who is licensed in
2264 this state to prescribe medications for emotional or mental
2265 conditions, or any mental health worker, mental health
2266 counselor, psychologist, or social worker, who is licensed in
2267 this state to practice counseling therapy. The letter must say
2268 that the animal is necessary to ameliorate and help with life
2269 functions for a condition covered under the Americans with
2270 Disabilities Act. The letter does not have to give details of
2271 the nature of the unit owner's disorder, in order not to invade
2272 the patient's privacy per the Health Insurance Portability and
2273 Accountability Act. Where the primary residence of the owner is
2274 in another state, the qualified health care professional is
2275 defined as a qualified health care professional licensed in
2276 their home state.
2277      (5)  If it becomes necessary for an owner or renter in any
2278 condominium unit to enforce this section in court against an
2279 association which has threatened to limit his or her right
2280 to own and reside with a companion animal either orally or in 
2281 writing, the homeowner shall be entitled to recover
2282 his or her reasonable costs and attorney's fees if the unit
2283 owner or renter is the prevailing party. This attorney's fee
2284 provision is not reciprocal.
     Section 23.  This act shall take effect July 1, 2007.

CODING: Words stricken are deleted; words underlined are additions


   

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