Senate Bill sb1410e1

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  1                      A bill to be entitled

  2         An act relating to homeowners' associations;

  3         amending s. 720.303, F.S.; providing powers for

  4         associations controlled by unit owners other

  5         than the developer; amending s. 720.306, F.S.;

  6         prohibiting certain amendments to bylaws of the

  7         associations; amending s. 712.05, F.S.;

  8         providing for the board of directors of a

  9         homeowners' association to preserve covenants

10         or restrictions through an extraordinary vote;

11         amending s. 712.06, F.S.; providing notice

12         requirements for homeowners' associations;

13         providing for a limitation on the applicability

14         of certain provisions of the act; providing an

15         effective date.

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

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19         Section 1.  Subsection (1) of section 720.303, Florida

20  Statutes, is amended to read:

21         720.303  Association powers and duties; meetings of

22  board; official records; budgets; financial reporting.--

23         (1)  POWERS AND DUTIES.--An association which operates

24  a community as defined in s. 720.301, must be operated by an

25  association that is a Florida corporation.  After October 1,

26  1995, the association must be incorporated and the initial

27  governing documents must be recorded in the official records

28  of the county in which the community is located.  An

29  association may operate more than one community.  The officers

30  and directors of an association have a fiduciary relationship

31  to the members who are served by the association.  The powers


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    CS for SB 1410                                 First Engrossed



 1  and duties of an association include those set forth in this

 2  chapter and, except as expressly limited or restricted in this

 3  chapter, those set forth in the governing documents. After

 4  control of the association is obtained by unit owners other

 5  than the developer, the association may institute, maintain,

 6  settle, or appeal actions or hearings in its name on behalf of

 7  all members concerning matters of common interest to the

 8  members, including, but not limited to, the common areas; roof

 9  or structural components of a building, or other improvements

10  for which the association is responsible; mechanical,

11  electrical, or plumbing elements serving an improvement or

12  building for which the association is responsible;

13  representations of the developer pertaining to any existing or

14  proposed commonly used facility; and protesting ad valorem

15  taxes on commonly used facilities. The association may defend

16  actions in eminent domain or bring inverse condemnation

17  actions. Before commencing litigation against any party in the

18  name of the association involving amounts in excess of

19  $100,000, the association must obtain the affirmative approval

20  of a majority of the voting interests at a meeting of the

21  membership at which a quorum has been attained. This

22  subsection does not limit any statutory or common-law right of

23  any individual member or class of members to bring any action

24  without participation by the association. A member does not

25  have authority to act for the association by virtue of being a

26  member.  An association may have more than one class of

27  members and may issue membership certificates.

28         Section 2.  Subsection (1) of section 720.306, Florida

29  Statutes, is amended to read:

30         720.306  Meetings of members; voting and election

31  procedures; amendments.--


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    CS for SB 1410                                 First Engrossed



 1         (1)  QUORUM; AMENDMENTS.--

 2         (a)  Unless a lower number is provided in the bylaws,

 3  the percentage of voting interests required to constitute a

 4  quorum at a meeting of the members shall be 30 percent of the

 5  total voting interests. Unless otherwise provided in this

 6  chapter or in the articles of incorporation or bylaws,

 7  decisions that require a vote of the members must be made by

 8  the concurrence of at least a majority of the voting interests

 9  present, in person or by proxy, at a meeting at which a quorum

10  has been attained.

11         (b)  Unless otherwise provided in the governing

12  documents or required by law, and other than those matters set

13  forth in paragraph (c), any governing document of an

14  association may be amended by the affirmative vote of

15  two-thirds of the voting interests of the association.

16         (c)  Unless otherwise provided in the governing

17  documents as originally recorded or permitted by this chapter

18  or ch. 617, an amendment may not materially and adversely

19  alter the proportionate voting interest appurtenant to a

20  parcel or increase the proportion or percentage by which a

21  parcel shares in the common expenses of the association affect

22  vested rights unless the record parcel owner of the affected

23  parcel and all record owners of liens on the affected parcels

24  join in the execution of the amendment. For purposes of this

25  section, a change in quorum requirements is not an alteration

26  of voting interests.

27         Section 3.  Subsection (1) of section 712.05, Florida

28  Statutes, is amended to read:

29         712.05  Effect of filing notice.--

30         (1)  Any person claiming an interest in land or a

31  homeowners' association desiring to preserve any covenant or


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    CS for SB 1410                                 First Engrossed



 1  restriction or any portion of a covenant or restriction may

 2  preserve and protect the same from extinguishment by the

 3  operation of this act by filing for record, during the 30-year

 4  period immediately following the effective date of the root of

 5  title, a notice, in writing, in accordance with the provisions

 6  hereof, which notice shall have the effect of so preserving

 7  such claim of right or such covenant or restriction or portion

 8  of such covenant or restriction for a period of not longer

 9  than 30 years after filing the same unless again filed as

10  required herein.  No disability or lack of knowledge of any

11  kind on the part of anyone shall delay the commencement of or

12  suspend the running of said 30-year period. Such notice may be

13  filed for record by the claimant or by any other person acting

14  on behalf of any claimant who is:

15         (a)  Under a disability,

16         (b)  Unable to assert a claim on his or her behalf, or

17         (c)  One of a class, but whose identity cannot be

18  established or is uncertain at the time of filing such notice

19  of claim for record.

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21  Such notice may be filed by a homeowners' association only if

22  the preservation of such covenant or restriction or portion of

23  such covenant or restriction is approved by at least

24  two-thirds of the members of the board of directors of an

25  incorporated homeowners' association at a meeting for which a

26  notice, stating the time and place of the meeting and

27  containing the Statement of Marketable Record Title Action

28  described in s. 712.06(1)(b), was mailed or hand-delivered to

29  members of the homeowners' association not less than 7 days

30  before the meeting a majority vote at a meeting of the

31  membership where a quorum is present.


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    CS for SB 1410                                 First Engrossed



 1         Section 4.  Paragraphs (b) and (e) of subsection (1) of

 2  section 712.06, Florida Statutes, are amended to read:

 3         712.06  Contents of notice; recording and indexing.--

 4         (1)  To be effective, the notice above referred to

 5  shall contain:

 6         (b)  The name and post office address of an owner, or

 7  the name and post office address of the person in whose name

 8  said property is assessed on the last completed tax assessment

 9  roll of the county at the time of filing, who, for the purpose

10  of such notice, shall be deemed to be an owner; however, if a

11  homeowners' association is filing the notice, the requirements

12  of this paragraph may be satisfied by attaching to and

13  recording with the notice an affidavit executed by the

14  appropriate member of the homeowners' association board of

15  directors affirming that the board of directors of the

16  homeowners' association caused a statement in substantially

17  the following form to be mailed or hand-delivered to the

18  homeowners' association's members.

19               STATEMENT OF MARKETABLE TITLE ACTION

20         The (name of homeowners' association) (the

21  "Association") has taken action to ensure that the (name of

22  declaration, covenant, or restriction) recorded in Official

23  Records Book ............, Page ........ of the public records

24  of ............ County, Florida, as may be amended from time

25  to time, currently burdening the property of each and every

26  member of the Association, retains its status as the source of

27  marketable title with regard to the transfer of a member's

28  residence. To this end, the Association shall cause the notice

29  required by chapter 712, Florida Statutes, to be recorded in

30  the public records of ............ County, Florida. Copies of

31  this notice and its attachments are available through the


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    CS for SB 1410                                 First Engrossed



 1  Association pursuant to the Association's governing documents

 2  regarding official records of the Association.

 3         (e)  If such claim is based upon an instrument of

 4  record or a recorded covenant or restriction, such instrument

 5  of record or recorded covenant or restriction is considered to

 6  shall be sufficiently described to identify the same if the

 7  notice includes a, including reference to the book and page in

 8  which the same is recorded.

 9         Section 5.  The amendments to section 720.306, Florida

10  Statutes, provided in this act shall not apply to or affect

11  any vested rights recognized by any court order or judgment in

12  any action commenced prior to July 1, 2003, and any such

13  vested rights so recognized may not be subsequently altered

14  without the consent of the affected parcel owner or owners.

15         Section 6.  This act shall take effect July 1, 2003.

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