| 1 |
A bill to be entitled |
| 2 |
An act relating to residential
properties; amending s. |
| 3 |
514.011, F.S.; defining the term
"homeowners' |
| 4 |
association"; amending s.
514.0115, F.S.; providing for |
| 5 |
the regulation and exemption from
regulation for |
| 6 |
homeowners' association swimming
pools; amending s. |
| 7 |
515.25, F.S.; conforming a
cross-reference; amending s. |
| 8 |
718.112, F.S.; providing requirements
for the location of |
| 9 |
annual unit owner meetings; revising
terms of service for |
| 10 |
board members; prohibiting certain
persons from serving on |
| 11 |
the board; requiring the association
to provide a |
| 12 |
certification form to unit owners for
specified purposes; |
| 13 |
authorizing an association consisting
of a specified |
| 14 |
maximum number of units to provide
for different voting |
| 15 |
and election procedures in its bylaws
by affirmative vote |
| 16 |
of a majority of the association's
voting interests; |
| 17 |
revising requirements related to the
annual budget; |
| 18 |
requiring proxy questions relating to
reserves to contain |
| 19 |
a specified statement; providing for
the removal of board |
| 20 |
members under certain circumstances;
requiring that |
| 21 |
directors who are delinquent in
certain payments owed in |
| 22 |
excess of certain periods of time be
suspended from office |
| 23 |
or deemed to have abandoned their
offices; requiring that |
| 24 |
directors charged with certain
offenses involving an |
| 25 |
association's funds or property be
suspended from office |
| 26 |
pending resolution of the charge;
providing for the |
| 27 |
reinstatement of such officers or
directors under certain |
| 28 |
circumstances; requiring each newly
elected director to |
| 29 |
certify to the secretary of the
association that he or she |
| 30 |
has read the association's
declarations of covenants and |
| 31 |
restrictions, articles of
incorporation, bylaws, and |
| 32 |
current written policies and will
work to uphold such |
| 33 |
documents and policies to the best of
his or her ability; |
| 34 |
providing that a failure to timely
file the statement |
| 35 |
automatically disqualifies the
director from service on |
| 36 |
the association's board of directors;
requiring the |
| 37 |
secretary of the association to
retain a director's |
| 38 |
certification for inspection by the
members for a |
| 39 |
specified period of years after a
director's election; |
| 40 |
amending s. 720.303, F.S.; revising
provisions relating to |
| 41 |
homeowners' association board
meetings, inspection and |
| 42 |
copying of records, and reserve
accounts of budgets; |
| 43 |
prohibiting a salary or compensation
for certain |
| 44 |
association personnel; providing
exceptions; amending s. |
| 45 |
720.305, F.S.; authorizing fines
assessed against members |
| 46 |
which exceed a certain amount to
become a lien against a |
| 47 |
parcel; amending s. 720.306, F.S.;
providing requirements |
| 48 |
for secret ballots; requiring newly
elected members of a |
| 49 |
board of directors to make certain
certifications in |
| 50 |
writing to the association; providing
for disqualification |
| 51 |
for failure to make such
certifications; requiring an |
| 52 |
association to retain certifications
for a specified time; |
| 53 |
amending s. 720.401, F.S.; requiring
that the disclosure |
| 54 |
summary to prospective parcel owners
include additional |
| 55 |
provisions; amending s. 34.01, F.S.;
correcting a cross- |
| 56 |
reference to conform; amending s.
720.302, F.S.; |
| 57 |
correcting a cross-reference to
conform; establishing |
| 58 |
legislative intent; repealing s.
720.311, F.S., relating |
| 59 |
to a procedure for dispute resolution
in homeowners' |
| 60 |
associations; providing that dispute
resolution cases |
| 61 |
pending on the date of repeal will
continue under the |
| 62 |
repealed provisions; creating part IV
of ch. 720, F.S.; |
| 63 |
creating s. 720.501, F.S.; providing
a short title; |
| 64 |
creating s. 720.502, F.S.; creating
legislative findings; |
| 65 |
creating s. 720.503, F.S.; setting
applicability of |
| 66 |
provisions for mediation and
arbitration applicable to |
| 67 |
disputes in homeowners' associations;
creating exceptions; |
| 68 |
proving applicability; tolling
applicable statutes of |
| 69 |
limitations; creating s. 720.504, F.S;
requiring that the |
| 70 |
notice of dispute be delivered before
referral to |
| 71 |
mediation; creating s. 720.505, F.S.;
creating a statutory |
| 72 |
notice form for referral to
mediation; requiring delivery |
| 73 |
by certified mail or personal
delivery; setting deadlines; |
| 74 |
requiring parties to share costs;
requiring the selection |
| 75 |
of a mediator and times to meet;
providing penalties for |
| 76 |
failure to mediate; creating s.
720.506, F.S.; creating an |
| 77 |
opt-out provision; creating s.
720.507, F.S.; creating a |
| 78 |
statutory notice form for referral to
arbitration; |
| 79 |
requiring delivery by certified mail
or personal delivery; |
| 80 |
setting deadlines; requiring parties
to share costs; |
| 81 |
requiring the selection of an
arbitrator and times to |
| 82 |
meet; providing penalties for failure
to arbitrate; |
| 83 |
creating s. 720.508, F.S.; providing
for rules of |
| 84 |
procedure; providing for
confidentiality; creating s. |
| 85 |
720.509, F.S.; setting qualifications
for mediators and |
| 86 |
arbitrators; creating s. 720.510, F.S.;
providing for |
| 87 |
enforcement of mediation agreements
and arbitration |
| 88 |
awards; providing that any three or
more condominium |
| 89 |
associations may form a
self-insurance fund for certain |
| 90 |
purposes under certain conditions;
requiring that the |
| 91 |
contract for participating in the
fund disclose certain |
| 92 |
information and contain certain
provisions; requiring |
| 93 |
that a disclosure be provided to an
association before |
| 94 |
execution of such contract; requiring
that such disclosure |
| 95 |
contain certain information;
providing for the charging of |
| 96 |
contributions for participation in
the fund; requiring |
| 97 |
that the majority of the governing
board of the fund be |
| 98 |
participants in the fund; providing
powers of the |
| 99 |
governing board; authorizing the fund
to enter into |
| 100 |
certain contracts; requiring that the
fund use a general |
| 101 |
lines agent meeting certain criteria
when soliciting |
| 102 |
participation in the fund;
prohibiting the fund from |
| 103 |
taking certain actions when selecting
such agent; |
| 104 |
requiring that the fund be
independently audited at |
| 105 |
specified intervals; authorizing the
fund to accumulate |
| 106 |
funds or distribute excess funds to
participants on a |
| 107 |
pro rata basis; providing for a
deductible for |
| 108 |
participants in the fund; exempting
such self-insurance |
| 109 |
funds from certain requirements,
regulations, fees, taxes, |
| 110 |
and assessments; providing an
effective date. |
| 111 |
|
| 112 |
Be It Enacted by the Legislature of
the State of Florida: |
| 113 |
|
| 114 |
Section
1. Section 514.011, Florida Statutes, is amended |
| 115 |
to read: |
| 116 |
514.011 Definitions.--
As used in this chapter, the term: |
| 117 |
(1) "Department"
means the Department of Health. |
| 118 |
(2) "Homeowners'
association" has the same meaning as in |
| 119 |
s. 720.301. |
| 120 |
(3)(5) "Portable
pool" means a pool or spa, and related |
| 121 |
equipment systems of any kind, which
is designed or intended to |
| 122 |
be movable from location to location. |
| 123 |
(4)(3) "Private
pool" means a facility used only by an |
| 124 |
individual, family, or living unit
members and their guests |
| 125 |
which does not serve any type of
cooperative housing or joint |
| 126 |
tenancy of five or more living units. |
| 127 |
(5)(4) "Public
bathing place" means a body of water, |
| 128 |
natural or modified by humans, for
swimming, diving, and |
| 129 |
recreational bathing, together with
adjacent shoreline or land |
| 130 |
area, buildings, equipment, and
appurtenances pertaining |
| 131 |
thereto, used by consent of the owner
or owners and held out to |
| 132 |
the public by any person or public
body, irrespective of whether |
| 133 |
a fee is charged for the use thereof.
The bathing water areas of |
| 134 |
public bathing places include, but
are not limited to, lakes, |
| 135 |
ponds, rivers, streams, artificial
impoundments, and waters |
| 136 |
along the coastal and intracoastal
beaches and shores of the |
| 137 |
state. |
| 138 |
(6)(2) "Public
swimming pool" or "public pool" means a |
| 139 |
watertight structure of concrete,
masonry, or other approved |
| 140 |
materials, which
is located either
indoors or outdoors, used for |
| 141 |
bathing or swimming by humans, and
filled with a filtered and |
| 142 |
disinfected water supply, together
with buildings, |
| 143 |
appurtenances, and equipment used in
connection therewith. A |
| 144 |
public swimming pool or public pool
shall mean a conventional |
| 145 |
pool, spa-type pool, wading pool,
special purpose pool, or water |
| 146 |
recreation attraction, to which
admission may be gained with or |
| 147 |
without payment of a fee and
includes, but is not limited to, |
| 148 |
pools operated by or serving camps,
churches, cities, counties, |
| 149 |
day care centers, group home
facilities for eight or more |
| 150 |
clients, health spas, institutions,
parks, state agencies, |
| 151 |
schools, subdivisions, or the
cooperative living-type projects |
| 152 |
of five or more living units, such as
apartments, |
| 153 |
boardinghouses, hotels, mobile home
parks, motels, recreational |
| 154 |
vehicle parks, and townhouses. |
| 155 |
Section
2. Subsection (2) of section 514.0115, Florida |
| 156 |
Statutes, is amended to read: |
| 157 |
514.0115 Exemptions
from supervision or regulation; |
| 158 |
variances.-- |
| 159 |
(2)(a) Pools
serving no more than 32 condominium or |
| 160 |
cooperative units or
32 parcels governed by a homeowners' |
| 161 |
association
which are not operated as a public lodging |
| 162 |
establishment are
shall be exempt from supervision
under this |
| 163 |
chapter, except for water quality. |
| 164 |
(b) Pools
serving condominium or cooperative associations |
| 165 |
of more than 32 units
or a homeowners' association of more than |
| 166 |
32 parcels
and whose recorded documents prohibit the rental or |
| 167 |
sublease of the units for periods
of less than 60 days are |
| 168 |
exempt from supervision under this
chapter, except that the |
| 169 |
condominium or cooperative owner or
association or homeowners' |
| 170 |
association
must file an application applications
with the |
| 171 |
department and obtain construction plan
plans approval and |
| 172 |
receive an initial operating permit.
The department shall |
| 173 |
inspect the swimming pools at
such places annually, at the fee |
| 174 |
set forth in s. 514.033(3), or upon
request by a unit owner, to |
| 175 |
determine compliance with department
rules relating to water |
| 176 |
quality and lifesaving equipment. The
department may not require |
| 177 |
compliance with rules relating to
swimming pool lifeguard |
| 178 |
standards. |
| 179 |
Section
3. Subsection (9) of section 515.25, Florida |
| 180 |
Statutes, is amended to read: |
| 181 |
515.25 Definitions.--As
used in this chapter, the term: |
| 182 |
(9) "Public
swimming pool" means a swimming pool, as |
| 183 |
defined in s. 515.011
514.011(2), which is operated,
with or |
| 184 |
without charge, for the use of the
general public; however, the |
| 185 |
term does not include a swimming pool
located on the grounds of |
| 186 |
a private residence. |
| 187 |
Section
4. Paragraph (d) of subsection (2) of section |
| 188 |
718.112, Florida Statutes, is amended
to read: |
| 189 |
718.112 Bylaws.-- |
| 190 |
(2) REQUIRED
PROVISIONS.--The bylaws shall provide for the |
| 191 |
following and, if they do not do so,
shall be deemed to include |
| 192 |
the following: |
| 193 |
(d) Unit
owner meetings.-- |
| 194 |
1. There
shall be an annual meeting of the unit owners |
| 195 |
held at the
location provided in the association bylaws and, if |
| 196 |
the bylaws are
silent as to the location, the meeting shall be |
| 197 |
held within 45
miles of the condominium property. However, such |
| 198 |
distance
requirement does not apply to an association governing |
| 199 |
a timeshare
condominium. Unless the bylaws provide otherwise, a |
| 200 |
vacancy on the board caused by the
expiration of a director's |
| 201 |
term shall be filled by electing a
new board member, and the |
| 202 |
election shall be by secret ballot;
however, if the number of |
| 203 |
vacancies equals or exceeds the
number of candidates, no |
| 204 |
election is required. If
there is no provision in the bylaws for |
| 205 |
terms of the
members of the board, The terms of all members of |
| 206 |
the board shall expire upon
the election of their successors at |
| 207 |
the annual meeting and
such board members may stand for |
| 208 |
reelection unless
otherwise permitted by the bylaws. In the |
| 209 |
event that the
bylaws permit staggered terms of no more than 2 |
| 210 |
years and upon
approval of a majority of the total voting |
| 211 |
interests, the
association board members may serve 2-year |
| 212 |
staggered terms.
If no person is interested in or demonstrates |
| 213 |
an intention to
run for the position of a board member whose |
| 214 |
term has expired
according to the provisions of this |
| 215 |
subparagraph, such
board member whose term has expired shall be |
| 216 |
automatically
reappointed to the board of administration and |
| 217 |
need not stand for
reelection. In a condominium association of |
| 218 |
more than 10
units, coowners of a unit may not serve as members |
| 219 |
of the board
of directors at the same time. Any unit owner |
| 220 |
desiring to be a candidate for board
membership shall comply |
| 221 |
with subparagraph 3. A person who has
been suspended or removed |
| 222 |
by the division
under this chapter, or who is delinquent in the |
| 223 |
payment of any fee
or assessment as provided in paragraph (n), |
| 224 |
is not eligible
for board membership. A person who has been |
| 225 |
convicted of any felony in
this state or by any court of
record |
| 226 |
in a
the United States District
or Territorial Court, or who has |
| 227 |
been convicted of
any offense in another jurisdiction that would |
| 228 |
be
considered a felony if committed in this state, and
who has |
| 229 |
not had his or her
right to vote restored pursuant to law in the |
| 230 |
jurisdiction
of his or her residence is not eligible for board |
| 231 |
membership unless
such felon's civil rights have been restored |
| 232 |
for a period of no
less than 5 years as of the date on which |
| 233 |
such person
seeks election to the board. The validity of an |
| 234 |
action by the board is not affected
if it is later determined |
| 235 |
that a member of the board is
ineligible for board membership |
| 236 |
due to having been convicted of a
felony. |
| 237 |
2. The
bylaws shall provide the method of calling meetings |
| 238 |
of unit owners, including annual
meetings. Written notice, which |
| 239 |
notice must include an agenda, shall
be mailed, hand delivered, |
| 240 |
or electronically transmitted to each
unit owner at least 14 |
| 241 |
days prior to the annual meeting and
shall be posted in a |
| 242 |
conspicuous place on the condominium
property at least 14 |
| 243 |
continuous days preceding the annual
meeting. Upon notice to the |
| 244 |
unit owners, the board shall by duly
adopted rule designate a |
| 245 |
specific location on the condominium
property or association |
| 246 |
property upon which all notices of
unit owner meetings shall be |
| 247 |
posted; however, if there is no
condominium property or |
| 248 |
association property upon which
notices can be posted, this |
| 249 |
requirement does not apply. In lieu
of or in addition to the |
| 250 |
physical posting of notice of any
meeting of the unit owners on |
| 251 |
the condominium property, the
association may, by reasonable |
| 252 |
rule, adopt a procedure for
conspicuously posting and repeatedly |
| 253 |
broadcasting the notice and the
agenda on a closed-circuit cable |
| 254 |
television system serving the
condominium association. However, |
| 255 |
if broadcast notice is used in lieu
of a notice posted |
| 256 |
physically on the condominium
property, the notice and agenda |
| 257 |
must be broadcast at least four times
every broadcast hour of |
| 258 |
each day that a posted notice is
otherwise required under this |
| 259 |
section. When broadcast notice is
provided, the notice and |
| 260 |
agenda must be broadcast in a manner
and for a sufficient |
| 261 |
continuous length of time so as to
allow an average reader to |
| 262 |
observe the notice and read and
comprehend the entire content of |
| 263 |
the notice and the agenda. Unless a
unit owner waives in writing |
| 264 |
the right to receive notice of the
annual meeting, such notice |
| 265 |
shall be hand delivered, mailed, or
electronically transmitted |
| 266 |
to each unit owner. Notice for
meetings and notice for all other |
| 267 |
purposes shall be mailed to each unit
owner at the address last |
| 268 |
furnished to the association by the
unit owner, or hand |
| 269 |
delivered to each unit owner.
However, if a unit is owned by |
| 270 |
more than one person, the association
shall provide notice, for |
| 271 |
meetings and all other purposes, to
that one address which the |
| 272 |
developer initially identifies for
that purpose and thereafter |
| 273 |
as one or more of the owners of the
unit shall so advise the |
| 274 |
association in writing, or if no
address is given or the owners |
| 275 |
of the unit do not agree, to the
address provided on the deed of |
| 276 |
record. An officer of the
association, or the manager or other |
| 277 |
person providing notice of the
association meeting, shall |
| 278 |
provide an affidavit or United States
Postal Service certificate |
| 279 |
of mailing, to be included in the
official records of the |
| 280 |
association affirming that the notice
was mailed or hand |
| 281 |
delivered, in accordance with this
provision. |
| 282 |
3. The
members of the board shall be elected by written |
| 283 |
ballot or voting machine. Proxies
shall in no event be used in |
| 284 |
electing the board, either in general
elections or elections to |
| 285 |
fill vacancies caused by recall,
resignation, or otherwise, |
| 286 |
unless otherwise provided in this
chapter. Not less than 60 days |
| 287 |
before a scheduled election, the
association shall mail, |
| 288 |
deliver, or electronically transmit,
whether by separate |
| 289 |
association mailing or included in
another association mailing, |
| 290 |
delivery, or transmission, including
regularly published |
| 291 |
newsletters, to each unit owner
entitled to a vote, a first |
| 292 |
notice of the date of the election.
Any unit owner or other |
| 293 |
eligible person desiring to be a
candidate for the board must |
| 294 |
give written notice to the
association not less than 40 days |
| 295 |
before a scheduled election. Together
with the written notice |
| 296 |
and agenda as set forth in
subparagraph 2., the association |
| 297 |
shall mail, deliver, or
electronically transmit a second notice |
| 298 |
of the election to all unit owners
entitled to vote therein, |
| 299 |
together with a ballot which shall
list all candidates. Upon |
| 300 |
request of a candidate, the
association shall include an |
| 301 |
information sheet, no larger than
81/2 inches by 11 inches, |
| 302 |
which must be furnished by the
candidate not less than 35 days |
| 303 |
before the election, to be included
with the mailing, delivery, |
| 304 |
or transmission of the ballot, with
the costs of mailing, |
| 305 |
delivery, or electronic transmission
and copying to be borne by |
| 306 |
the association. The association is
not liable for the contents |
| 307 |
of the information sheets prepared by
the candidates. In order |
| 308 |
to reduce costs, the association may
print or duplicate the |
| 309 |
information sheets on both sides of
the paper. The division |
| 310 |
shall by rule establish voting
procedures consistent with the |
| 311 |
provisions contained herein,
including rules establishing |
| 312 |
procedures for giving notice by
electronic transmission and |
| 313 |
rules providing for the secrecy of
ballots. Elections shall be |
| 314 |
decided by a plurality of those
ballots cast. There shall be no |
| 315 |
quorum requirement; however, at least
20 percent of the eligible |
| 316 |
voters must cast a ballot in order to
have a valid election of |
| 317 |
members of the board. No unit owner
shall permit any other |
| 318 |
person to vote his or her ballot, and
any such ballots |
| 319 |
improperly cast shall be deemed
invalid, provided any unit owner |
| 320 |
who violates this provision may be
fined by the association in |
| 321 |
accordance with s. 718.303. A unit
owner who needs assistance in |
| 322 |
casting the ballot for the reasons
stated in s. 101.051 may |
| 323 |
obtain assistance in casting the
ballot. The regular election |
| 324 |
shall occur on the date of the annual
meeting. The provisions of |
| 325 |
this subparagraph shall not apply to
timeshare condominium |
| 326 |
associations. Notwithstanding the
provisions of this |
| 327 |
subparagraph, an election is not
required unless more candidates |
| 328 |
file notices of intent to run or are
nominated than board |
| 329 |
vacancies exist. |
| 330 |
4. Any
approval by unit owners called for by this chapter |
| 331 |
or the applicable declaration or
bylaws, including, but not |
| 332 |
limited to, the approval requirement
in s. 718.111(8), shall be |
| 333 |
made at a duly noticed meeting of
unit owners and shall be |
| 334 |
subject to all requirements of this
chapter or the applicable |
| 335 |
condominium documents relating to
unit owner decisionmaking, |
| 336 |
except that unit owners may take
action by written agreement, |
| 337 |
without meetings, on matters for
which action by written |
| 338 |
agreement without meetings is
expressly allowed by the |
| 339 |
applicable bylaws or declaration or
any statute that provides |
| 340 |
for such action. |
| 341 |
5. Unit
owners may waive notice of specific meetings if |
| 342 |
allowed by the applicable bylaws or
declaration or any statute. |
| 343 |
If authorized by the bylaws, notice
of meetings of the board of |
| 344 |
administration, unit owner meetings,
except unit owner meetings |
| 345 |
called to recall board members under
paragraph (j), and |
| 346 |
committee meetings may be given by
electronic transmission to |
| 347 |
unit owners who consent to receive
notice by electronic |
| 348 |
transmission. |
| 349 |
6. Unit
owners shall have the right to participate in |
| 350 |
meetings of unit owners with
reference to all designated agenda |
| 351 |
items. However, the association may
adopt reasonable rules |
| 352 |
governing the frequency, duration,
and manner of unit owner |
| 353 |
participation. |
| 354 |
7. Any
unit owner may tape record or videotape a meeting |
| 355 |
of the unit owners subject to
reasonable rules adopted by the |
| 356 |
division. |
| 357 |
8. Unless
otherwise provided in the bylaws, any vacancy |
| 358 |
occurring on the board before the
expiration of a term may be |
| 359 |
filled by the affirmative vote of the
majority of the remaining |
| 360 |
directors, even if the remaining
directors constitute less than |
| 361 |
a quorum, or by the sole remaining
director. In the alternative, |
| 362 |
a board may hold an election to fill
the vacancy, in which case |
| 363 |
the election procedures must conform
to the requirements of |
| 364 |
subparagraph 3. unless the
association governs 10 units or less |
| 365 |
and has opted out of the
statutory election process, in which |
| 366 |
case the bylaws of the association
control. Unless otherwise |
| 367 |
provided in the bylaws, a board
member appointed or elected |
| 368 |
under this section shall fill the
vacancy for the unexpired term |
| 369 |
of the seat being filled. Filling
vacancies created by recall is |
| 370 |
governed by paragraph (j) and rules
adopted by the division. |
| 371 |
9. Within
30 days after being elected to the board of |
| 372 |
directors, a new
director shall certify in writing to the |
| 373 |
secretary of the
association that he or she has read the |
| 374 |
association's
declarations of covenants and restrictions, |
| 375 |
articles of
incorporation, bylaws, and current written policies, |
| 376 |
he or she will
work to uphold such documents and policies to the |
| 377 |
best of his or her
ability, and he or she will faithfully |
| 378 |
discharge his or
her fiduciary responsibility to the |
| 379 |
association's
members. Failure to timely file the statement |
| 380 |
automatically
disqualifies the director from service on the |
| 381 |
association's
board of directors. The secretary shall cause the |
| 382 |
association to
retain a director's certification for inspection |
| 383 |
by the members for
5 years after a director's election. Failure |
| 384 |
to have such
certification on file does not affect the validity |
| 385 |
of any appropriate
action. |
| 386 |
|
| 387 |
Notwithstanding subparagraphs (b)2.
and (d)3., an association of |
| 388 |
10 or fewer
units may, by the affirmative vote of a majority of |
| 389 |
the total voting interests, provide
for different voting and |
| 390 |
election procedures in its bylaws,
which vote may be by a proxy |
| 391 |
specifically delineating the
different voting and election |
| 392 |
procedures. The different voting and
election procedures may |
| 393 |
provide for elections to be conducted
by limited or general |
| 394 |
proxy. |
| 395 |
Section
5. Paragraph (b) of subsection (2), paragraphs (a) |
| 396 |
and (c) of subsection (5), paragraphs
(b), (c), (d), (f), and |
| 397 |
(g) of subsection (6) of section
720.303, Florida Statutes, are |
| 398 |
amended, and subsection (12) is added
to that section, to read: |
| 399 |
720.303 Association
powers and duties; meetings of board; |
| 400 |
official records; budgets; financial
reporting; association |
| 401 |
funds; recalls.-- |
| 402 |
(2) BOARD
MEETINGS.-- |
| 403 |
(b) Members
have the right to attend all meetings of the |
| 404 |
board and to speak on any matter
placed on the agenda by |
| 405 |
petition of the voting interests for
at least 3 minutes. The |
| 406 |
association may adopt written
reasonable rules expanding the |
| 407 |
right of members to speak and
governing the frequency, duration, |
| 408 |
and other manner of member
statements, which rules must be |
| 409 |
consistent with this paragraph and
may include a sign-up sheet |
| 410 |
for members wishing to speak.
Notwithstanding any other law, the |
| 411 |
requirement that
board meetings and committee meetings be open |
| 412 |
to the
members is inapplicable to meetings between the board or |
| 413 |
a committee to
discuss proposed or pending litigation with and |
| 414 |
the association's attorney, or
with respect to meetings of the |
| 415 |
board held for the purpose of
discussing personnel matters are |
| 416 |
not required to be
open to the members. |
| 417 |
(5) INSPECTION
AND COPYING OF RECORDS.--The official |
| 418 |
records shall be maintained within
the state and must be open to |
| 419 |
inspection and available for
photocopying by members or their |
| 420 |
authorized agents at reasonable times
and places within 10 |
| 421 |
business days after receipt of a
written request for access. |
| 422 |
This subsection may be complied with
by having a copy of the |
| 423 |
official records available for
inspection or copying in the |
| 424 |
community. If the association has a
photocopy machine available |
| 425 |
where the records are maintained, it
must provide parcel owners |
| 426 |
with copies on request during the
inspection if the entire |
| 427 |
request is limited to no more than 25
pages. |
| 428 |
(a) The
failure of an association to provide access to the |
| 429 |
records within 10 business days after
receipt of a written |
| 430 |
request submitted
by certified mail, return receipt requested, |
| 431 |
creates a rebuttable presumption that
the association willfully |
| 432 |
failed to comply with this
subsection. |
| 433 |
(c) The
association may adopt reasonable written rules |
| 434 |
governing the frequency, time,
location, notice, records to be |
| 435 |
inspected, and manner of inspections,
but may not require impose |
| 436 |
a
requirement that a parcel owner to
demonstrate any proper |
| 437 |
purpose for the inspection, state any
reason for the inspection, |
| 438 |
or limit a parcel owner's right to
inspect records to less than |
| 439 |
one 8-hour business day per month.
The association may impose |
| 440 |
fees to cover the costs of providing
copies of the official |
| 441 |
records, including, without
limitation, the costs of copying. |
| 442 |
The association may charge up to 50
cents per page for copies |
| 443 |
made on the association's
photocopier. If the association does |
| 444 |
not have a photocopy machine
available where the records are |
| 445 |
kept, or if the records requested to
be copied exceed 25 pages |
| 446 |
in length, the association may have
copies made by an outside |
| 447 |
vendor or
association management company personnel and may |
| 448 |
charge the actual cost of copying,
including any reasonable |
| 449 |
costs involving
personnel fees and charges at an hourly rate for |
| 450 |
employee time to
cover administrative costs to the association. |
| 451 |
The association shall maintain an
adequate number of copies of |
| 452 |
the recorded governing documents,
to ensure their availability |
| 453 |
to members and prospective members.
Notwithstanding the |
| 454 |
provisions of this paragraph, the
following records are shall |
| 455 |
not be accessible to members
or parcel owners: |
| 456 |
1. Any
record protected by the lawyer-client privilege as |
| 457 |
described in s. 90.502 and any record
protected by the work- |
| 458 |
product privilege, including, but not
limited to, any record |
| 459 |
prepared by an association attorney
or prepared at the |
| 460 |
attorney's express direction which
reflects a mental impression, |
| 461 |
conclusion, litigation strategy, or
legal theory of the attorney |
| 462 |
or the association and which
was prepared exclusively for civil |
| 463 |
or criminal litigation or for
adversarial administrative |
| 464 |
proceedings or which was prepared in
anticipation of imminent |
| 465 |
civil or criminal litigation or
imminent adversarial |
| 466 |
administrative proceedings until the
conclusion of the |
| 467 |
litigation or adversarial
administrative proceedings. |
| 468 |
2. Information
obtained by an association in connection |
| 469 |
with the approval of the lease, sale,
or other transfer of a |
| 470 |
parcel. |
| 471 |
3. Disciplinary,
health, insurance, and personnel records |
| 472 |
of the association's employees. |
| 473 |
4. Medical
records of parcel owners or community |
| 474 |
residents. |
| 475 |
(6) BUDGETS.-- |
| 476 |
(b) In
addition to annual operating expenses, the budget |
| 477 |
may include reserve accounts for
capital expenditures and |
| 478 |
deferred maintenance for which the
association is responsible. |
| 479 |
If reserve
accounts are not established pursuant to paragraph |
| 480 |
(d), funding
of such reserves shall be limited to the extent |
| 481 |
that the governing documents do
not limit increases in |
| 482 |
assessments, including reserves. If
the budget of the |
| 483 |
association includes reserve accounts
established pursuant to |
| 484 |
paragraph
(d), such reserves shall be determined, maintained, |
| 485 |
and waived in the manner provided in
this subsection. Once an |
| 486 |
association provides for reserve
accounts pursuant to paragraph |
| 487 |
(d) in
the budget, the association shall thereafter determine, |
| 488 |
maintain, and waive reserves in
compliance with this subsection. |
| 489 |
The provisions of
this section do not preclude the termination |
| 490 |
of a reserve
account established pursuant to this paragraph upon |
| 491 |
approval of a
majority of the voting interests of the |
| 492 |
association. Upon
such approval, the terminating reserve account |
| 493 |
shall be removed
from the budget. |
| 494 |
(c)1. If
the budget of the association does not provide |
| 495 |
for reserve accounts pursuant
to paragraph (d) governed by this |
| 496 |
subsection
and the association is responsible for the repair and |
| 497 |
maintenance of capital improvements
that may result in a special |
| 498 |
assessment if reserves are not
provided, each financial report |
| 499 |
for the preceding fiscal year
required by subsection (7) shall |
| 500 |
contain the following statement in
conspicuous type: THE BUDGET |
| 501 |
OF THE ASSOCIATION DOES NOT PROVIDE
FOR RESERVE ACCOUNTS FOR |
| 502 |
CAPITAL EXPENDITURES AND DEFERRED
MAINTENANCE THAT MAY RESULT IN |
| 503 |
SPECIAL ASSESSMENTS. OWNERS MAY ELECT
TO PROVIDE FOR RESERVE |
| 504 |
ACCOUNTS PURSUANT TO THE PROVISIONS
OF SECTION 720.303(6), |
| 505 |
FLORIDA STATUTES, UPON OBTAINING
THE APPROVAL OF NOT LESS THAN A |
| 506 |
MAJORITY OF THE TOTAL VOTING
INTERESTS OF THE ASSOCIATION BY |
| 507 |
VOTE OF THE
MEMBERS AT A MEETING OR BY WRITTEN CONSENT. |
| 508 |
2. If
the budget of the association does provide for |
| 509 |
funding accounts
for deferred expenditures, including, but not |
| 510 |
limited to, funds
for capital expenditures and deferred |
| 511 |
maintenance, but
such accounts are not created or established |
| 512 |
pursuant to
paragraph (d), each financial report for the |
| 513 |
preceding fiscal
year required under subsection (7) must also |
| 514 |
contain the
following statement in conspicuous type: THE BUDGET |
| 515 |
OF THE ASSOCIATION
DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED |
| 516 |
EXPENDITURE
ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND |
| 517 |
DEFERRED
MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN |
| 518 |
OUR GOVERNING
DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO |
| 519 |
PROVIDE FOR
RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6), |
| 520 |
FLORIDA STATUTES,
THESE FUNDS ARE NOT SUBJECT TO THE |
| 521 |
RESTRICTIONS ON
USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR |
| 522 |
ARE RESERVES
CALCULATED IN ACCORDANCE WITH THAT STATUTE. |
| 523 |
(d) An
association shall be deemed to have provided for |
| 524 |
reserve accounts if when
reserve accounts have been initially |
| 525 |
established by the developer or if
when the membership of the |
| 526 |
association affirmatively elects to
provide for reserves. If |
| 527 |
reserve accounts are not initially
provided for by the |
| 528 |
developer, the membership of the
association may elect to do so |
| 529 |
upon the affirmative approval of not
less than a majority of the |
| 530 |
total voting interests of the
association. Such approval may be |
| 531 |
obtained
attained by vote of the members at
a duly called |
| 532 |
meeting of the membership or by
the upon a written
consent of |
| 533 |
executed by
not less than a majority of the total voting |
| 534 |
interests in the community. The
approval action of the |
| 535 |
membership shall state that reserve
accounts shall be provided |
| 536 |
for in the budget and shall
designate the components for which |
| 537 |
the reserve accounts are to be
established. Upon approval by the |
| 538 |
membership, the board of directors
shall include provide
for the |
| 539 |
required reserve accounts for
inclusion in the budget in the |
| 540 |
next fiscal year following the
approval and in each year |
| 541 |
thereafter. Once established as
provided in this subsection, the |
| 542 |
reserve accounts shall be funded or
maintained or shall have |
| 543 |
their funding waived in the manner
provided in paragraph (f). |
| 544 |
(f) After
one or more Once a reserve account
or reserve |
| 545 |
accounts are established, the
membership of the association, |
| 546 |
upon a majority vote at a meeting at
which a quorum is present, |
| 547 |
may provide for no reserves or less
reserves than required by |
| 548 |
this section. If a meeting of the
unit owners has been called to |
| 549 |
determine whether to waive or reduce
the funding of reserves and |
| 550 |
no such result is achieved or a
quorum is not present, the |
| 551 |
reserves as included in the budget
shall go into effect. After |
| 552 |
the turnover, the developer may vote
its voting interest to |
| 553 |
waive or reduce the funding of
reserves. Any vote taken pursuant |
| 554 |
to this subsection to waive or reduce
reserves is shall
be |
| 555 |
applicable only to one budget year. |
| 556 |
(g) Funding
formulas for reserves authorized by this |
| 557 |
section shall be based on either a
separate analysis of each of |
| 558 |
the required assets or a pooled
analysis of two or more of the |
| 559 |
required assets. |
| 560 |
1. If
the association maintains separate reserve accounts |
| 561 |
for each of the required assets, the
amount of the contribution |
| 562 |
to each reserve account is
shall be the sum of the following
two |
| 563 |
calculations: |
| 564 |
a. The
total amount necessary, if any, to bring a negative |
| 565 |
component balance to zero. |
| 566 |
b. The
total estimated deferred maintenance expense or |
| 567 |
estimated re |