Florida Senate - 2007 CS for CS for SB 2816 By the Committees on Community Affairs; Regulated Industries; and Senator Villalobos 578-2666-07 

1 A bill to be entitled 

2 An act relating to community associations; 

3 amending s. 718.104, F.S.; revising required 

4 contents of a condominium declaration; amending 

5 s. 718.110, F.S.; requiring that notice of 

6 proposed amendments be provided to unit owners; 

7 amending s. 718.111, F.S.; providing 

8 authorization for condominium associations to 

9 access units for specified purposes; requiring

10 that official records of the association be

11 made available at certain locations; providing

12 that certain records may not be accessible to

13 unit owners; removing the requirement that the

14 association's annual financial report be

15 provided only to unit owners providing a 

16 written request for the report; restricting a

17 condominium association from waiving a

18 financial report for more than 2 years;

19 providing duties for condominium boards of

20 administration in the event of certain

21 casualties; providing that certain assessments

22 may be made against unit owners under certain

23 conditions; amending s. 718.112, F.S.;

24 authorizing the board or membership to

25 determine the composition of the board of 

26 administration under certain circumstances;

27 requiring members of the board of

28 administration to be unit owners, absent

29 provisions indicating board member

30 requirements; requiring the board to respond to

31 certain inquiries by certified mail, return 

Page 1 

1 receipt requested; authorizing a condominium 

2 association to respond only twice every 30 days 

3 to unit owner inquiries; providing board of 

4 administration and unit owners' meeting 

5 requirements; requiring the board to address 

6 certain agenda items proposed by a petition of 

7 20 percent of the unit owners; revising notice 

8 procedures; revising the terms of office and 

9 reelection of the members of a condominium 

10 association board; providing that certain 

11 persons providing notice of a meeting must 

12 provide an affidavit affirming that the notices 

13 were delivered; authorizing the association's 

14 representative to provide certain notices; 

15 providing for the securing of ballots; revising 

16 procedures relating to the filling of a vacancy 

17 on the board; removing a provision allowing an 

18 association to provide for different voting and 

19 election procedures in its bylaws; providing 

20 unit owners with the right to have items placed 

21 on the agenda of the annual meeting and voted 

22 upon under certain conditions; requiring the 

23 association to prepare an annual budget of 

24 estimated revenues and expenses; requiring the 

25 budget to include reserve accounts for certain 

26 purposes; requiring that certain ballot 

27 statements contain certain statements; 

28 requiring a vote to provide for no reserves or 

29 percentage of reserves to be made at certain 

30 times; authorizing the association to use 

31 reserve funds for nonscheduled purposes under 

Page 2 

1 certain conditions; prohibiting the board from 

2 applying for or accepting certain loans or 

3 lines of credit; requiring that common expenses 

4 be paid by the developer during a specified 

5 time; requiring that assessments be made 

6 against units on a quarter-annual or more 

7 frequent basis; providing that certain 

8 provisions may not preclude the right of an 

9 association to accelerate assessments of 

10 certain owners delinquent in payment of common 

11 expenses; providing that accelerated 

12 assessments are due and payable after the claim 

13 of lien is filed; revising assessment 

14 requirements; deleting the requirement that the 

15 bylaws include an element for mandatory 

16 nonbinding arbitration; amending s. 718.113, 

17 F.S.; requiring boards of administration to 

18 adopt or restate hurricane shutter 

19 specifications yearly at the annual meeting; 

20 authorizing the board to install hurricane 

21 protection that complies with the applicable 

22 building code; requiring the board to have the 

23 condominium buildings periodically inspected 

24 for structural and electrical soundness by a 

25 professional engineer or professional architect 

26 registered in the state; requiring the 

27 inspector to provide a report to the 

28 association and unit owners; prohibiting the 

29 board from prohibiting the display of certain 

30 religious items on the front-door area of a 

31 unit; creating s. 718.1224, F.S.; prohibiting 

Page 3 

1 certain lawsuits arising from unit owners' 

2 appearances and presentations before a 

3 governmental entity; providing a definition; 

4 providing for award of damages and attorney's 

5 fees; amending s. 718.1255, F.S.; requiring the 

6 division to promptly refer certain cases to 

7 mediation; creating s. 718.1257, F.S.; 

8 providing that condominium unit owners and 

9 renters have the right to own a companion 

10 animal and to have that animal live with them 

11 under specified conditions; amending s. 

12 718.302, F.S.; conforming provisions; amending 

13 s. 718.3025, F.S.; providing requirements for 

14 certain contracts between a party contracting 

15 to provide maintenance or management services 

16 and an association; amending s. 718.3026, F.S.; 

17 providing that certain contracts between a 

18 service provider and an association may not be 

19 for a term in excess of 3 years and may not 

20 contain an automatic renewal clause; requiring 

21 that certain contracts for construction occur 

22 under the advisement of an attorney; amending 

23 s. 718.303, F.S.; requiring hearings to levy 

24 fines to be held before a committee of unit 

25 owners who are not members of the board; 

26 requiring that persons subject to certain 

27 actions be notified of their violations in a 

28 certain manner; providing a timeframe within 

29 which a person must respond; authorizing the

30 budget to include reserve accounts for capital 

31 expenditures and deferred maintenance; 

Page 4 

1 providing a formula for calculating the amount 

2 to be reserved; authorizing the association to 

3 adjust replacement reserve assessments 

4 annually; authorizing the developer to vote to 

5 waive the reserves or reduce the funding of 

6 reserves for a certain period; revising 

7 provisions relating to financial reporting; 

8 revising time periods in which the association 

9 must complete its reporting; amending s. 

10 718.404, F.S.; providing for retroactive 

11 application of certain provisions; amending s. 

12 718.501, F.S.; requiring the division to 

13 prepare and disseminate a prospectus and other 

14 information for use by owners, purchasers, 

15 lessees, and developers of residential 

16 condominiums; providing that the board member 

17 training provided by the division shall be 

18 provided in conjunction with recommendations by 

19 the ombudsman; providing powers and duties of 

20 the division with respect to association 

21 violations; requiring associations to provide 

22 certain notice and to participate in certain 

23 educational training; amending s. 718.5011, 

24 F.S.; restricting location of the Office of the 

25 Condominium Ombudsman; providing that the 

26 ombudsman shall exercise his or her 

27 policymaking and other functions independently 

28 of the Department of Business and Professional 

29 Regulation and without approval or control of 

30 the department; requiring the department to 

31 render administrative support for certain 

Page 5 

1 matters; requiring that revenues collected by 

2 the department for the Office of the 

3 Condominium Ombudsman be deposited in a 

4 separate fund or account under specified 

5 conditions; amending s. 718.5012, F.S.; 

6 removing requirements that the ombudsman 

7 develop certain policies and procedures; 

8 providing additional powers and duties of the 

9 ombudsman; amending s. 718.504,F.S.; revising 

10 and providing information to be contained in 

11 the condominium prospectus or offering 

12 circular; amending s. 720.303, F.S.; revising 

13 procedures used in preparing the association's 

14 annual financial report; amending s. 720.307, 

15 F.S., relating to transition of association 

16 control in a community; revising criteria with 

17 respect to election of members to the board of 

18 directors; requiring certain developers and 

19 owners to convey title to all common areas 

20 prior to turnover; revising requirements for 

21 turnover of documents; requiring that certain 

22 information be included in the records and that 

23 the records be prepared in a specified manner; 

24 revising application to include certain 

25 associations; amending s. 720.3075, F.S.; 

26 prohibiting associations from restricting the 

27 use of hurricane shutters in certain 

28 circumstances; requiring a developer who rents 

29 or leases any unsold units in a condominium to 

30 pay all monthly maintenance fees on those units 

31 to the association as if the units were owned 

Page 6 

1 by individual owners; providing an effective 

2 date. 

3 

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

5 

6 Section 1. Paragraph (f) of subsection (4) of section 

7 718.104, Florida Statutes, is amended to read: 

8 718.104 Creation of condominiums; contents of 

9 declaration.--Every condominium created in this state shall be 

10 created pursuant to this chapter. 

11 (4) The declaration must contain or provide for the 

12 following matters: 

13 (f) The undivided share of ownership of the common 

14 elements and common surplus of the condominium that is 

15 appurtenant to each unit stated as a percentage or a fraction 

16 of the whole. In the declaration of condominium for 

17 residential condominiums created after April 1, 2007 1992, the 

18 ownership share of the common elements assigned to each 

19 residential unit shall be based either upon the total square 

20 footage of each residential unit in uniform relationship to 

21 the total square footage of each other residential unit in the 

22 condominium or on an equal fractional basis. 

23 Section 2. Paragraph (d) is added to subsection (1) of 

24 section 718.110, Florida Statutes, to read: 

25 718.110 Amendment of declaration; correction of error 

26 or omission in declaration by circuit court.-- 

27 (1) 

28 (d) Notice of a proposed amendment to the declaration 

29 shall be sent to the unit owner by certified mail. 

30 Section 3. Subsection (5), paragraph (b) of subsection 

31 (7), paragraphs (b) and (c) of subsection (12), and subsection 

Page 7 

1 (13) of section 718.111, Florida Statutes, are amended, and 

2 subsection (15) is added to that section, to read: 

3 718.111 The association.-- 

4 (5) RIGHT OF ACCESS TO UNITS.--The association has the 

5 irrevocable right of access to each unit during reasonable 

6 hours, when necessary for the maintenance, repair, or 

7 replacement of any common elements or of any portion of a unit 

8 to be maintained by the association pursuant to the 

9 declaration or as necessary to prevent damage to the common 

10 elements or to a unit or units. Except in cases of emergency, 

11 the association must give the unit owner 24 hours' advance 

12 written notice of intent to access the unit. 

13 (7) TITLE TO PROPERTY.-- 

14 (b) Subject to the provisions of s. 718.112(2)(m), the 

15 association, through its board, has the limited power to 

16 convey a portion of the common elements to a condemning 

17 authority for the purposes of providing utility easements, 

18 right-of-way expansion, or other public purposes, whether 

19 negotiated or as a result of eminent domain proceedings. 

20 (12) OFFICIAL RECORDS.-- 

21 (b) The official records of the association shall be 

22 maintained with the state, the records of the association 

23 shall be made available to a unit owner, at a location within 

24 the county in which the condominium property is located, 

25 within 5 working days after receipt of written request by the 

26 board or its designee. This paragraph may be complied with by 

27 having a copy of the official records of the association 

28 available for inspection or copying on the condominium 

29 property or association property. 

30 (c) The official records of the association are open 

31 to inspection by any association member or the authorized 

Page 8 

1 representative of such member at all reasonable times. The 

2 right to inspect the records includes the right to make or 

3 obtain copies, at the reasonable expense, if any, of the 

4 association member. The association may adopt reasonable rules 

5 regarding the frequency, time, location, notice, and manner of 

6 record inspections and copying. The failure of an association 

7 to provide the records within 10 working days after receipt of 

8 a written request shall create a rebuttable presumption that 

9 the association willfully failed to comply with this 

10 paragraph. A unit owner who is denied access to official 

11 records is entitled to the actual damages or minimum damages 

12 for the association's willful failure to comply with this 

13 paragraph. The minimum damages shall be $50 per calendar day 

14 up to 10 days, the calculation to begin on the 11th working 

15 day after receipt of the written request. The failure to 

16 permit inspection of the association records as provided 

17 herein entitles any person prevailing in an enforcement action 

18 to recover reasonable attorney's fees from the person in 

19 control of the records who, directly or indirectly, knowingly 

20 denied access to the records for inspection. The association 

21 shall maintain an adequate number of copies of the 

22 declaration, articles of incorporation, bylaws, and rules, and 

23 all amendments to each of the foregoing, as well as the 

24 question and answer sheet provided for in s. 718.504 and 

25 year-end financial information required in this section on the 

26 condominium property to ensure their availability to unit 

27 owners and prospective purchasers, and may charge its actual 

28 costs for preparing and furnishing these documents to those 

29 requesting the same. Notwithstanding the provisions of this 

30 paragraph, the following records shall not be accessible to 

31 unit owners: 

Page 9 

1 1. Any record protected by the lawyer-client privilege 

2 as described in s. 90.502; and any record protected by the 

3 work-product privilege, including any record prepared by an 

4 association attorney or prepared at the attorney's express 

5 direction; which reflects a mental impression, conclusion, 

6 litigation strategy, or legal theory of the attorney or the 

7 association, and which was prepared exclusively for civil or 

8 criminal litigation or for adversarial administrative 

9 proceedings, or which was prepared in anticipation of imminent 

10 civil or criminal litigation or imminent adversarial 

11 administrative proceedings until the conclusion of the 

12 litigation or adversarial administrative proceedings. 

13 2. Information obtained by an association in 

14 connection with the approval of the lease, sale, or other 

15 transfer of a unit. 

16 3. Medical records of unit owners. 

17 4. Social security numbers, driver's license numbers,  

18 credit card numbers, and other personal identifying  

19 information of unit owners, occupants, or tenants.  

20 (13) FINANCIAL REPORTING.--Within 90 days after the 

21 end of the fiscal year, or annually on a date provided in the 

22 bylaws, the association shall prepare and complete, or 

23 contract for the preparation and completion of, a financial 

24 report for the preceding fiscal year. Within 21 days after 

25 the final financial report is completed by the association or 

26 received from the third party, but not later than 120 days 

27 after the end of the fiscal year or other date as provided in 

28 the bylaws, the association shall mail to each unit owner at 

29 the address last furnished to the association by the unit 

30 owner, or hand deliver to each unit owner, a copy of the 

31 financial report or a notice that a copy of the financial 

Page 10 

1 report will be mailed or hand delivered to the unit owner,  

2 without charge, upon receipt of a written request from the  

3 unit owner. The division shall adopt rules setting forth 

4 uniform accounting principles and standards to be used by all 

5 associations and shall adopt rules addressing financial 

6 reporting requirements for multicondominium associations. In 

7 adopting such rules, the division shall consider the number of 

8 members and annual revenues of an association. Financial 

9 reports shall be prepared as follows: 

10 (a) An association that meets the criteria of this 

11 paragraph shall prepare or cause to be prepared a complete set 

12 of financial statements in accordance with generally accepted 

13 accounting principles. The financial statements shall be based 

14 upon the association's total annual revenues, as follows: 

15 1. An association with total annual revenues of 

16 $100,000 or more, but less than $200,000, shall prepare 

17 compiled financial statements. 

18 2. An association with total annual revenues of at 

19 least $200,000, but less than $400,000, shall prepare reviewed 

20 financial statements. 

21 3. An association with total annual revenues of 

22 $400,000 or more shall prepare audited financial statements. 

23 (b)1. An association with total annual revenues of 

24 less than $100,000 shall prepare a report of cash receipts and 

25 expenditures. 

26 2. An association which operates less than 50 units, 

27 regardless of the association's annual revenues, shall prepare 

28 a report of cash receipts and expenditures in lieu of 

29 financial statements required by paragraph (a). 

30 3. A report of cash receipts and disbursements must 

31 disclose the amount of receipts by accounts and receipt 

Page 11 

1 classifications and the amount of expenses by accounts and 

2 expense classifications, including, but not limited to, the 

3 following, as applicable: costs for security, professional and 

4 management fees and expenses, taxes, costs for recreation 

5 facilities, expenses for refuse collection and utility 

6 services, expenses for lawn care, costs for building 

7 maintenance and repair, insurance costs, administration and 

8 salary expenses, and reserves accumulated and expended for 

9 capital expenditures, deferred maintenance, and any other 

0 category for which the association maintains reserves. 

11 (c) An association may prepare or cause to be 

12 prepared, without a meeting of or approval by the unit owners: 

13 1. Compiled, reviewed, or audited financial 

14 statements, if the association is required to prepare a report 

15 of cash receipts and expenditures; 

16 2. Reviewed or audited financial statements, if the 

17 association is required to prepare compiled financial 

18 statements; or 

19 3. Audited financial statements if the association is 

20 required to prepare reviewed financial statements. 

21 (d) If approved by a majority of the voting interests 

22 present at a properly called meeting of the association, an 

23 association may prepare or cause to be prepared: 

24 1. A report of cash receipts and expenditures in lieu 

25 of a compiled, reviewed, or audited financial statement; 

26 2. A report of cash receipts and expenditures or a 

27 compiled financial statement in lieu of a reviewed or audited 

28 financial statement; or 

29 3. A report of cash receipts and expenditures, a 

30 compiled financial statement, or a reviewed financial 

31 statement in lieu of an audited financial statement. 

Page 12 

1 

2 Such meeting and approval must occur prior to the end of the 

3 fiscal year and is effective only for the fiscal year in which 

4 the vote is taken. With respect to an association to which the 

5 developer has not turned over control of the association, all 

6 unit owners, including the developer, may vote on issues

7 related to the preparation of financial reports for the first 

8 2 fiscal years of the association's operation, beginning with 

9 the fiscal year in which the declaration is recorded. 

10 Thereafter, all unit owners except the developer may vote on 

11 such issues until control is turned over to the association by 

12 the developer. An association or board of administration may  

13 not waive the financial reporting requirements of this section  

14 for more than 2 consecutive years.  

15 (15) RECONSTRUCTION AFTER CASUALTY.--  

16 (a) If the condominium property and units are damaged  

17 after a casualty, the board of administration shall obtain  

18 reliable and detailed estimates of the cost necessary to  

19 repair and replace the damaged property to substantially the  

20 same condition existing immediately before the casualty and  

21 substantially in accordance with the original plans and  

22 specifications of the condominium as soon as possible and not  

23 later than 60 days after the casualty. If the damage to the  

24 condominium property exceeds 50 percent of the property's  

25 value, the condominium may be terminated unless 75 percent of  

26 the unit owners agree to reconstruction and repair within 90  

27 days after the casualty.  

28 (b) The board of administration shall engage the  

29 services of a registered architect and knowledgeable  

30 construction specialists to prepare any necessary plans and  

31 specifications and shall receive and approve bids for  

Page 13 

1 reconstruction, execute all necessary contracts for  

2 restoration, and arrange for disbursement of construction  

3 funds, the approval of work, and all other matters pertaining  

4 to the repairs and reconstruction required.  

5 (c) If the proceeds of the hazard insurance policy  

6 maintained by the association under paragraph (11)(b) are  

7 insufficient to pay the estimated costs of reconstruction or  

8 at any time during reconstruction and repair, assessments  

9 shall be made against all unit owners according to their share  

10 of the common elements and expenses as set forth in the  

11 declaration of condominium.  

12 (d) Assessments shall be made against unit owners for  

13 damage to their units according to the cost of reconstruction  

14 or repair of their respective units. The assessments shall be  

15 levied and collected as all other assessments are provided for  

16 in this chapter.  

17 Section 4. Subsection (2) of section 718.112, Florida 

18 Statutes, is amended to read: 

19 718.112 Bylaws.-- 

20 (2) REQUIRED PROVISIONS.--The bylaws of the  

21 association shall provide for the following and, if they do 

22 not do so, shall be deemed to include the following: 

23 (a) Administration.-- 

24 1. The form of administration of the association shall 

25 be described indicating the title of the officers and board of 

26 administration and specifying the powers, duties, manner of 

27 selection and removal, and compensation, if any, of officers 

28 and boards. In the absence of such a provision or  

29 determination by the board or membership, the board of 

30 administration shall be composed of five members who are unit  

31 owners, except in the case of a condominium which has five or 

Page 14 

1 fewer units, in which case in a not-for-profit corporation the 

2 board shall consist of not fewer than three members who are  

3 unit owners. In the absence of provisions to the contrary in 

4 the bylaws, the board of administration shall have a 

5 president, a secretary, and a treasurer, who shall perform the 

6 duties of such officers customarily performed by officers of 

7 corporations. Unless prohibited in the bylaws, the board of 

8 administration may appoint other officers and grant them the 

9 duties it deems appropriate. Unless otherwise provided in the 

10 bylaws, the officers shall serve without compensation and at 

11 the pleasure of the board of administration. Unless otherwise 

12 provided in the bylaws, the members of the board shall serve 

13 without compensation. 

14 2. When a unit owner files a written inquiry by 

15 certified mail with the board of administration, the board 

16 shall respond in writing by certified mail, return receipt  

17 requested, to the unit owner within 30 days after of receipt 

18 of the inquiry. The board's response shall either give a 

19 substantive response to the inquirer, notify the inquirer that 

20 a legal opinion has been requested, or notify the inquirer 

21 that advice has been requested from the division. If the board 

22 requests advice from the division, the board shall, within 10 

23 days after of its receipt of the advice, provide in writing by  

24 certified mail a substantive response to the inquirer. If a 

25 legal opinion is requested, the board shall, within 60 days 

26 after the receipt of the inquiry, provide in writing by  

27 certified mail a substantive response to the inquiry. The 

28 failure to provide a substantive response to the inquiry as 

29 provided herein precludes the board from recovering attorney's 

30 fees and costs in any subsequent litigation, administrative 

31 proceeding, or arbitration arising out of the inquiry. The 

Page 15 

1 association may through its board of administration adopt 

2 reasonable rules and regulations regarding the frequency and 

3 manner of responding to unit owner inquiries, one of which may 

4 be that the association is only obligated to respond to two  

5 one written inquiries inquiry per unit in any given 30-day 

6 period. In such a case, any additional inquiry or inquiries 

7 must be responded to in the subsequent 30-day period, or 

8 periods, as applicable. 

9 (b) Quorum; voting requirements; proxies.-- 

10 1. Unless a lower number is provided in the bylaws, 

11 the percentage of voting interests required to constitute a 

12 quorum at a meeting of the members shall be a majority of the 

13 voting interests. Unless otherwise provided in this chapter 

14 or in the declaration, articles of incorporation, or bylaws, 

15 and except as provided in subparagraph (d)3., decisions shall 

16 be made by owners of a majority of the voting interests 

17 represented at a meeting at which a quorum is present. 

18 2. Except as specifically otherwise provided herein, 

19 after January 1, 1992, unit owners may not vote by general 

20 proxy, but may vote by limited proxies substantially 

21 conforming to a limited proxy form adopted by the division. 

22 Limited proxies and general proxies may be used to establish a 

23 quorum. Limited proxies shall be used for votes taken to waive 

24 or reduce reserves in accordance with subparagraph (f)2.; for 

25 votes taken to waive the financial reporting requirements of 

26 s. 718.111(13); for votes taken to amend the declaration 

27 pursuant to s. 718.110; for votes taken to amend the articles 

28 of incorporation or bylaws pursuant to this section; and for 

29 any other matter for which this chapter requires or permits a 

30 vote of the unit owners. A Except as provided in paragraph  

31 (d), after January 1, 1992, no proxy, limited or general, may  

Page 16 

1 not shall be used in the election of board members. General 

2 proxies may be used for other matters for which limited 

3 proxies are not required, and may also be used in voting for 

4 nonsubstantive changes to items for which a limited proxy is 

5 required and given. Notwithstanding the provisions of this 

6 subparagraph, unit owners may vote in person at unit owner 

7 meetings. Nothing contained herein shall limit the use of 

8 general proxies or require the use of limited proxies for any 

9 agenda item or election at any meeting of a timeshare 

10 condominium association. 

11 3. Any proxy given shall be effective only for the 

12 specific meeting for which originally given and any lawfully 

13 adjourned meetings thereof. In no event shall any proxy be 

14 valid for a period longer than 90 days after the date of the 

15 first meeting for which it was given. Every proxy is 

16 revocable at any time at the pleasure of the unit owner 

17 executing it. 

18 4. A member of the board of administration or a 

19 committee may submit in writing his or her agreement or 

20 disagreement with any action taken at a meeting that the 

21 member did not attend. This agreement or disagreement may not 

22 be used as a vote for or against the action taken and may not 

23 be used for the purposes of creating a quorum. 

24 5. When any of the board or committee members meet by 

25 telephone conference, those board or committee members 

26 attending by telephone conference may be counted toward 

27 obtaining a quorum and may vote by telephone. A telephone 

28 speaker must be used so that the conversation of those board 

29 or committee members attending by telephone may be heard by 

30 the board or committee members attending in person as well as 

31 by any unit owners present at a meeting. 

Page 17 

1 (c) Board of administration meetings.--Meetings of the 

2 board of administration at which a quorum of the members is 

3 present shall be open to all unit owners. The board of  

4 administration shall address agenda items proposed by a  

5 petition of 20 percent of the unit owners submitted at least  

6 48 hours before the meeting date, in time for the directors to  

7 study and understand the agenda items, and in time to post the

8 updated agenda before the meeting. A unit owner's facsimile  

9 signature constitutes the unit owner's original signature in  

10 any matter under this chapter that requires the unit owner's  

11 signature. Correspondence from the board of administration to  

12 unit owners shall be accomplished by the same, or a more  

13 secure, delivery method that is as secure as certified mail,  

14 return receipt requested, except as otherwise provided in this  

15 paragraph. Any unit owner may tape record or videotape 

16 meetings of the board of administration. The right to attend 

17 such meetings includes the right to speak at such meetings 

18 with reference to all designated agenda items. The division 

19 shall adopt reasonable rules governing the tape recording and 

20 videotaping of the meeting. The association may adopt written 

21 reasonable rules governing the frequency, duration, and manner 

22 of unit owner statements. Adequate notice of all meetings, 

23 which notice shall specifically incorporate an identification 

24 of agenda items, shall be posted conspicuously on the 

25 condominium property at least 48 continuous hours preceding 

26 the meeting except in an emergency. Any item not included on 

27 the notice may be taken up on an emergency basis by at least a 

28 majority plus one of the members of the board or by a petition  

29 of 20 percent of the unit owners. Such emergency action shall 

30 be noticed and ratified at the next regular meeting of the 

31 board. However, written notice of any meeting at which 

Page 18 

1 nonemergency special assessments, or at which amendment to 

2 rules regarding unit use, will be considered shall be mailed, 

3 delivered, or electronically transmitted to the unit owners 

4 and posted conspicuously on the condominium property not less 

5 than 14 days prior to the meeting. Evidence of compliance with 

6 this 14-day notice shall be made by an affidavit executed by 

7 the person providing the notice and filed among the official 

8 records of the association. Upon notice to the unit owners, 

9 the board shall by duly adopted rule designate a specific 

10 location on the condominium property or association property 

11 upon which all notices of board meetings shall be posted. If 

12 there is no condominium property or association property upon 

13 which notices can be posted, notices of board meetings shall 

14 be mailed, delivered, or electronically transmitted at least 

15 14 days before the meeting to the owner of each unit. In lieu 

16 of or in addition to the physical posting of notice of any 

17 meeting of the board of administration on the condominium 

18 property, the association may, by reasonable rule, adopt a 

19 procedure for conspicuously posting and repeatedly 

20 broadcasting the notice and the agenda on a closed-circuit 

21 cable television system serving the condominium association. 

22 However, if broadcast notice is used in lieu of a notice 

23 posted physically on the condominium property, the notice and 

24 agenda must be broadcast at least four times every broadcast 

25 hour of each day that a posted notice is otherwise required 

26 under this section. When broadcast notice is provided, the 

27 notice and agenda must be broadcast in a manner and for a 

28 sufficient continuous length of time so as to allow an average 

29 reader to observe the notice and read and comprehend the 

30 entire content of the notice and the agenda. Notice of any 

31 meeting in which regular or special assessments against unit 

Page 19 

1 owners are to be considered for any reason shall specifically 

2 state contain a statement that assessments will be considered 

3 and specify the nature, cost, and breakdown of any such 

4 assessments. Meetings of a committee to take final action on 

5 behalf of the board or make recommendations to the board 

6 regarding the association budget are subject to the provisions 

7 of this paragraph. Meetings of a committee that does not take 

8 final action on behalf of the board or make recommendations to 

9 the board regarding the association budget are subject to the 

10 provisions of this section, unless those meetings are exempted 

11 from this section by the bylaws of the association. 

12 Notwithstanding any other law, the requirement that board 

13 meetings and committee meetings be open to the unit owners is 

14 inapplicable to meetings between the board or a committee and 

15 the association's attorney, with respect to proposed or 

16 pending litigation, when the meeting is held for the purpose 

17 of seeking or rendering legal advice. 

18 (d) Unit owner meetings.-- 

19 1. There shall be an annual meeting of the unit 

20 owners. Unless the bylaws provide otherwise, a vacancy on the 

21 board caused by the expiration of a director's term shall be 

22 filled by electing a new board member, and the election shall 

23 be by secret ballot; however, if the number of vacancies 

24 equals or exceeds the number of candidates, no election is 

25 required. If there is no provision in the bylaws for terms of 

26 the members of the board, the terms of all members of the 

27 board shall expire upon the election of their successors at 

28 the annual meeting. Any unit owner desiring to be a candidate 

29 for board membership shall comply with subparagraph 3. The  

30 only prohibition against eligibility for board membership  

31 shall be for a person who has been convicted of any felony by 

Page 20 

1 any court of record in the United States and who has not had 

2 his or her right to vote restored pursuant to law in the 

3 jurisdiction of his or her residence is not eligible for board  

4 membership. The validity of an action by the board is not 

5 affected if it is later determined that a member of the board 

6 is ineligible for board membership due to having been 

7 convicted of a felony. 

8 2. The bylaws shall provide the method of calling 

9 meetings of unit owners, including annual meetings. Written 

10 notice, which notice must include an agenda, shall be mailed, 

11 hand delivered, or electronically transmitted to each unit 

12 owner at least 14 days prior to the annual meeting and shall 

13 be posted in a conspicuous place on the condominium property 

14 at least 14 continuous days preceding the annual meeting. Upon 

15 notice to the unit owners, the board shall by duly adopted 

16 rule designate a specific location on the condominium property 

17 or association property upon which all notices of unit owner 

18 meetings shall be posted; however, if there is no condominium 

19 property or association property upon which notices can be 

20 posted, this requirement does not apply. In lieu of or in 

21 addition to the physical posting of notice of any meeting of 

22 the unit owners on the condominium property, the association 

23 may, by reasonable rule, adopt a procedure for conspicuously 

24 posting and repeatedly broadcasting the notice and the agenda 

25 on a closed-circuit cable television system serving the 

26 condominium association. However, if broadcast notice is used 

27 in lieu of a notice posted physically on the condominium 

28 property, the notice and agenda must be broadcast at least 

29 four times every broadcast hour of each day that a posted 

30 notice is otherwise required under this section. When 

31 broadcast notice is provided, the notice and agenda must be 

Page 21 

1 broadcast in a manner and for a sufficient continuous length 

2 of time so as to allow an average reader to observe the notice 

3 and read and comprehend the entire content of the notice and 

4 the agenda. Unless a unit owner waives in writing the right to 

5 receive notice of the annual meeting, such notice shall be 

6 hand delivered, mailed, or electronically transmitted to each 

7 unit owner. Notice for meetings and notice for all other 

8 purposes shall be mailed to each unit owner at the address 

9 last furnished to the association by the unit owner, or hand 

10 delivered to each unit owner. However, if a unit is owned by 

11 more than one person, the association shall provide notice, 

12 for meetings and all other purposes, to that one address which 

13 the developer initially identifies for that purpose and 

14 thereafter as one or more of the owners of the unit shall so 

15 advise the association in writing, or if no address is given 

16 or the owners of the unit do not agree, to the address 

17 provided on the deed of record. An officer of the association, 

18 or the manager or other person providing the first notice of 

19 the association meeting, and the second notice as provided for  

20 in subparagraph 3., shall provide an affidavit or United 

21 States Postal Service certificate of mailing, to be included 

22 in the official records of the association affirming that the 

23 notices were notice was mailed or hand delivered, in 

24 accordance with this provision. 

25 3. The members of the board shall be elected by 

26 written ballot or voting machine. Proxies shall in no event be 

27 used in electing the board, either in general elections or 

28 elections to fill vacancies caused by recall, resignation, or 

29 otherwise, unless otherwise provided in this chapter. Not less 

0 than 60 days before a scheduled election, the association or  

31 its representative shall mail, deliver, or electronically 

Page 22 

1 transmit, whether by separate association mailing or included 

2 in another association mailing, delivery, or transmission, 

3 including regularly published newsletters, to each unit owner 

4 entitled to a vote, a first notice of the date of the 

5 election. Any unit owner or other eligible person desiring to 

6 be a candidate for the board must give written notice to the 

7 association or its representative not less than 40 days before 

8 a scheduled election. Together with the written notice and 

9 agenda as set forth in subparagraph 2., the association or its  

10 representative shall mail, deliver, or electronically transmit 

11 a second notice of the election to all unit owners entitled to 

12 vote therein, together with a ballot which shall list all 

13 candidates. Upon request of a candidate, the association or  

14 its representative shall include an information sheet, no 

15 larger than 8 1/2 inches by 11 inches, which must be 

16 furnished by the candidate not less than 35 days before the 

17 election, to be included with the mailing, delivery, or 

18 trans