| 1 | A bill to be entitled |
| 2 | An act relating to community associations; creating s. |
| 3 | 718.1265, F.S.; authorizing a condominium association |
| 4 | board to exercise specified emergency powers during an |
| 5 | emergency created by declared disaster; amending s. |
| 6 | 718.112, F.S.; authorizing the association to establish a |
| 7 | reserve account for uninsured casualty losses; extending a |
| 8 | period in which condominium common areas do not have to be |
| 9 | retrofitted with sprinkler systems; authorizing the bylaws |
| 10 | of an association to contain certain optional provisions; |
| 11 | creating s. 712.11, F.S.; providing for the revival of |
| 12 | certain declarations that have been extinguished; |
| 13 | providing an effective date. |
| 14 |
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| 15 | Be It Enacted by the Legislature of the State of Florida: |
| 16 |
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| 17 | Section 1. Section 718.1265, Florida Statutes, is created |
| 18 | to read: |
| 19 | 718.1265 Association emergency powers.-- |
| 20 | (1) To the extent allowed by law and unless specifically |
| 21 | prohibited by the declaration, the articles, or the bylaws of an |
| 22 | association, and consistent with the provisions of s. 617.0830, |
| 23 | the board of administration, in response to damage caused by an |
| 24 | event for which a state of emergency is declared pursuant to s. |
| 25 | 252.36 in the locale in which the condominium is located, may, |
| 26 | but is not required to, exercise the following powers: |
| 27 | (a) Conduct board meetings and membership meetings with |
| 28 | notice given as is practicable. Such notice may be given in any |
| 29 | practicable manner, including publication, radio, United States |
| 30 | mail, the Internet, public service announcements, and |
| 31 | conspicuous posting on the condominium property or any other |
| 32 | means the board deems reasonable under the circumstances. Notice |
| 33 | of board decisions may be communicated as provided in this |
| 34 | paragraph. |
| 35 | (b) Cancel and reschedule any association meeting. |
| 36 | (c) Name as assistant officers persons who are not |
| 37 | directors, which assistant officers shall have the same |
| 38 | authority as the executive officers to whom they are assistants |
| 39 | during the state of emergency to accommodate the incapacity or |
| 40 | unavailability of any officer of the association. |
| 41 | (d) Relocate the association's principal office or |
| 42 | designate alternative principal offices. |
| 43 | (e) Enter into agreements with local counties and |
| 44 | municipalities to assist counties and municipalities with debris |
| 45 | removal. |
| 46 | (f) Implement a disaster plan before or immediately |
| 47 | following the event for which a state of emergency is declared |
| 48 | that may include, but is not limited to, shutting down or off |
| 49 | elevators; electricity; water, sewer, or security systems; or |
| 50 | air conditioners. |
| 51 | (g) Declare any portion of the condominium property |
| 52 | unavailable for entry or occupancy by unit owners, family |
| 53 | members, tenants, guests, agents, or invitees to protect the |
| 54 | health, safety, or welfare of such persons. |
| 55 | (h) Order the evacuation of the condominium property in |
| 56 | the event of a mandatory evacuation order in the locale in which |
| 57 | the condominium is located. Should any unit owner or other |
| 58 | occupant of a condominium fail or refuse to evacuate the |
| 59 | condominium property upon such an order, the association shall |
| 60 | be immune from liability or injury to persons or property |
| 61 | arising from such failure or refusal. |
| 62 | (i) Determine whether the condominium property can be |
| 63 | safely inhabited or occupied. However, such determination is not |
| 64 | conclusive as to any determination of habitability pursuant to |
| 65 | the declaration. |
| 66 | (j) Mitigate further damage, including taking action to |
| 67 | contract for the removal of debris; and prevent or mitigate the |
| 68 | spread of fungus, including, but not limited to, mold or mildew, |
| 69 | by removing and disposing of wet drywall, insulation, carpet, |
| 70 | cabinetry, or other fixtures, on or within the condominium |
| 71 | property, even if the unit owner is obligated by the declaration |
| 72 | or law to insure or replace those fixtures and to remove |
| 73 | personal property from a unit. |
| 74 | (k) Contract, on behalf of unit owners with unit owners |
| 75 | responsible for reimbursing the association, for items or |
| 76 | services for which the owners are otherwise responsible but |
| 77 | which may be necessary to prevent further damage. Without |
| 78 | limitation, such items or services may include the drying of |
| 79 | units, the boarding of broken windows or doors, and the |
| 80 | replacement of damaged air conditioners or air handlers to |
| 81 | provide climate control in the units or other portions of the |
| 82 | property. |
| 83 | (l) Levy special assessments. |
| 84 | (m) Without unit owner approval, borrow money and pledge |
| 85 | association assets as collateral to fund emergency repairs and |
| 86 | carry out the duties of the association when operating funds are |
| 87 | insufficient. This paragraph does not limit the general |
| 88 | authority of the association to borrow money, subject to such |
| 89 | restrictions as are contained in the declaration, articles, or |
| 90 | bylaws. |
| 91 | (2) The special powers authorized under subsection (1) |
| 92 | shall be limited to that time reasonably necessary to protect |
| 93 | the health, safety, and welfare of the association, the unit |
| 94 | owners, their family members, tenants, guests, agents, or |
| 95 | invitees and shall be reasonably necessary to mitigate further |
| 96 | damage and make emergency repairs. |
| 97 | Section 2. Paragraphs (f) and (l) of subsection (2) of |
| 98 | section 718.112, Florida Statutes, are amended, and paragraph |
| 99 | (e) is added to subsection (3) of that section, to read: |
| 100 | 718.112 Bylaws.-- |
| 101 | (2) REQUIRED PROVISIONS.--The bylaws shall provide for the |
| 102 | following and, if they do not do so, shall be deemed to include |
| 103 | the following: |
| 104 | (f) Annual budget.-- |
| 105 | 1. The proposed annual budget of common expenses shall be |
| 106 | detailed and shall show the amounts budgeted by accounts and |
| 107 | expense classifications, including, if applicable, but not |
| 108 | limited to, those expenses listed in s. 718.504(21). A |
| 109 | multicondominium association shall adopt a separate budget of |
| 110 | common expenses for each condominium the association operates |
| 111 | and shall adopt a separate budget of common expenses for the |
| 112 | association. In addition, if the association maintains limited |
| 113 | common elements with the cost to be shared only by those |
| 114 | entitled to use the limited common elements as provided for in |
| 115 | s. 718.113(1), the budget or a schedule attached thereto shall |
| 116 | show amounts budgeted therefor. If, after turnover of control of |
| 117 | the association to the unit owners, any of the expenses listed |
| 118 | in s. 718.504(21) are not applicable, they need not be listed. |
| 119 | 2. In addition to annual operating expenses, the budget |
| 120 | shall include reserve accounts for capital expenditures and |
| 121 | deferred maintenance. These accounts shall include, but are not |
| 122 | limited to, roof replacement, building painting, and pavement |
| 123 | resurfacing, regardless of the amount of deferred maintenance |
| 124 | expense or replacement cost, and for any other item for which |
| 125 | the deferred maintenance expense or replacement cost exceeds |
| 126 | $10,000. The amount to be reserved shall be computed by means of |
| 127 | a formula which is based upon estimated remaining useful life |
| 128 | and estimated replacement cost or deferred maintenance expense |
| 129 | of each reserve item. The association may adjust replacement |
| 130 | reserve assessments annually to take into account any changes in |
| 131 | estimates or extension of the useful life of a reserve item |
| 132 | caused by deferred maintenance. This subsection does not apply |
| 133 | to an adopted budget in which the members of an association have |
| 134 | determined, by a majority vote at a duly called meeting of the |
| 135 | association, to provide no reserves or less reserves than |
| 136 | required by this subsection. However, prior to turnover of |
| 137 | control of an association by a developer to unit owners other |
| 138 | than a developer pursuant to s. 718.301, the developer may vote |
| 139 | to waive the reserves or reduce the funding of reserves for the |
| 140 | first 2 fiscal years of the association's operation, beginning |
| 141 | with the fiscal year in which the initial declaration is |
| 142 | recorded, after which time reserves may be waived or reduced |
| 143 | only upon the vote of a majority of all nondeveloper voting |
| 144 | interests voting in person or by limited proxy at a duly called |
| 145 | meeting of the association. If a meeting of the unit owners has |
| 146 | been called to determine whether to waive or reduce the funding |
| 147 | of reserves, and no such result is achieved or a quorum is not |
| 148 | attained, the reserves as included in the budget shall go into |
| 149 | effect. After the turnover, the developer may vote its voting |
| 150 | interest to waive or reduce the funding of reserves. |
| 151 | 3. Reserve funds and any interest accruing thereon shall |
| 152 | remain in the reserve account or accounts, and shall be used |
| 153 | only for authorized reserve expenditures unless their use for |
| 154 | other purposes is approved in advance by a majority vote at a |
| 155 | duly called meeting of the association. Prior to turnover of |
| 156 | control of an association by a developer to unit owners other |
| 157 | than the developer pursuant to s. 718.301, the developer- |
| 158 | controlled association shall not vote to use reserves for |
| 159 | purposes other than that for which they were intended without |
| 160 | the approval of a majority of all nondeveloper voting interests, |
| 161 | voting in person or by limited proxy at a duly called meeting of |
| 162 | the association. |
| 163 | 4. The only voting interests which are eligible to vote on |
| 164 | questions that involve waiving or reducing the funding of |
| 165 | reserves, or using existing reserve funds for purposes other |
| 166 | than purposes for which the reserves were intended, are the |
| 167 | voting interests of the units subject to assessment to fund the |
| 168 | reserves in question. |
| 169 | 5. In addition to reserves required by this paragraph, the |
| 170 | association may establish a reserve account for uninsured |
| 171 | casualty losses based upon such formula as the board deems |
| 172 | appropriate. |
| 173 | (l) Certificate of compliance.--There shall be a provision |
| 174 | that a certificate of compliance from a licensed electrical |
| 175 | contractor or electrician may be accepted by the association's |
| 176 | board as evidence of compliance of the condominium units with |
| 177 | the applicable fire and life safety code. Notwithstanding the |
| 178 | provisions of chapter 633 or of any other code, statute, |
| 179 | ordinance, administrative rule, or regulation, or any |
| 180 | interpretation of the foregoing, an association, condominium, or |
| 181 | unit owner is not obligated to retrofit the common elements or |
| 182 | units of a residential condominium with a fire sprinkler system |
| 183 | or other engineered lifesafety system in a building that has |
| 184 | been certified for occupancy by the applicable governmental |
| 185 | entity, if the unit owners have voted to forego such |
| 186 | retrofitting and engineered lifesafety system by the affirmative |
| 187 | vote of two-thirds of all voting interests in the affected |
| 188 | condominium. However, a condominium association may not vote to |
| 189 | forego the retrofitting with a fire sprinkler system of common |
| 190 | areas in a high-rise building. For purposes of this subsection, |
| 191 | the term "high-rise building" means a building that is greater |
| 192 | than 75 feet in height where the building height is measured |
| 193 | from the lowest level of fire department access to the floor of |
| 194 | the highest occupiable story. For purposes of this subsection, |
| 195 | the term "common areas" means any enclosed hallway, corridor, |
| 196 | lobby, stairwell, or entryway. In no event shall the local |
| 197 | authority having jurisdiction require completion of retrofitting |
| 198 | of common areas with a sprinkler system before the end of 2020 |
| 199 | 2014. |
| 200 | 1. A vote to forego retrofitting may be obtained by |
| 201 | limited proxy or by a ballot personally cast at a duly called |
| 202 | membership meeting, or by execution of a written consent by the |
| 203 | member, and shall be effective upon the recording of a |
| 204 | certificate attesting to such vote in the public records of the |
| 205 | county where the condominium is located. The association shall |
| 206 | mail, hand deliver, or electronically transmit to each unit |
| 207 | owner written notice at least 14 days prior to such membership |
| 208 | meeting in which the vote to forego retrofitting of the required |
| 209 | fire sprinkler system is to take place. Within 30 days after the |
| 210 | association's opt-out vote, notice of the results of the opt-out |
| 211 | vote shall be mailed, hand delivered, or electronically |
| 212 | transmitted to all unit owners. Evidence of compliance with this |
| 213 | 30-day notice shall be made by an affidavit executed by the |
| 214 | person providing the notice and filed among the official records |
| 215 | of the association. After such notice is provided to each owner, |
| 216 | a copy of such notice shall be provided by the current owner to |
| 217 | a new owner prior to closing and shall be provided by a unit |
| 218 | owner to a renter prior to signing a lease. |
| 219 | 2. As part of the information collected annually from |
| 220 | condominiums, the division shall require condominium |
| 221 | associations to report the membership vote and recording of a |
| 222 | certificate under this subsection and, if retrofitting has been |
| 223 | undertaken, the per-unit cost of such work. The division shall |
| 224 | annually report to the Division of State Fire Marshal of the |
| 225 | Department of Financial Services the number of condominiums that |
| 226 | have elected to forego retrofitting. |
| 227 | (3) OPTIONAL PROVISIONS.--The bylaws as originally |
| 228 | recorded or as amended under the procedures provided therein may |
| 229 | provide for the following: |
| 230 | (e) Other provisions which are not inconsistent with this |
| 231 | chapter or with the declaration, as may be desired. |
| 232 | Section 3. Section 712.11, Florida Statutes, is created to |
| 233 | read: |
| 234 | 712.11 Covenants and restrictions.--A homeowners' |
| 235 | association that is not otherwise subject to chapter 720 may use |
| 236 | the procedures provided in ss. 720.403-720.407 to revive a |
| 237 | declaration of covenants and restrictions that has been |
| 238 | extinguished by this chapter entitled Marketable Record Titles |
| 239 | to Real Property. |
| 240 | Section 4. This act shall take effect upon becoming a law. |