| 1 | A bill to be entitled |
| 2 | An act relating to community associations; amending s. |
| 3 | 718.1124, F.S., and creating ss. 719.1124 and 720.3053, |
| 4 | F.S.; providing for notification of a unit owner's or |
| 5 | member's intent to petition for the appointment of a |
| 6 | receiver if an association's governing board fails to fill |
| 7 | vacancies sufficient to constitute a quorum; providing for |
| 8 | written notice to unit owners or members of any such |
| 9 | appointment; requiring the salary of the receiver and |
| 10 | certain costs and fees to be paid by the association; |
| 11 | providing powers, duties, and term of service of the |
| 12 | receiver; amending s. 718.117, F.S., and creating ss. |
| 13 | 718.127, 719.127, and 720.313, F.S.; specifying |
| 14 | receivership notification requirements with respect to |
| 15 | condominium associations, cooperative associations, and |
| 16 | homeowners' associations; amending ss. 718.121 and |
| 17 | 719.108, F.S.; prohibiting a lien from being filed against |
| 18 | a condominium unit or cooperative parcel until 30 days |
| 19 | after service of a notice of intent to file the lien; |
| 20 | amending s. 720.305, F.S.; deleting notification |
| 21 | requirements for the appointment of a receiver under |
| 22 | specified circumstances for matters relating to |
| 23 | homeowners' associations; providing an effective date. |
| 24 |
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| 25 | Be It Enacted by the Legislature of the State of Florida: |
| 26 |
|
| 27 | Section 1. Section 718.1124, Florida Statutes, is amended |
| 28 | to read: |
| 29 | 718.1124 Failure to fill vacancies on board of |
| 30 | administration sufficient to constitute a quorum; appointment of |
| 31 | receiver upon petition of unit owner.-- |
| 32 | (1) If an association fails to fill vacancies on the board |
| 33 | of administration sufficient to constitute a quorum in |
| 34 | accordance with the bylaws, any unit owner may give notice of |
| 35 | his or her intent to apply to the circuit court within whose |
| 36 | jurisdiction the condominium lies for the appointment of a |
| 37 | receiver to manage the affairs of the association. The form of |
| 38 | the notice shall be as follows: |
| 39 | |
| 40 | NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP |
| 41 | |
| 42 | YOU ARE HEREBY NOTIFIED that the undersigned owner of |
| 43 | a condominium unit in (name of condominium) intends |
| 44 | to file a petition in the circuit court for |
| 45 | appointment of a receiver to manage the affairs of the |
| 46 | association on the grounds that the association has |
| 47 | failed to fill vacancies on the board of |
| 48 | administration sufficient to constitute a quorum. This |
| 49 | petition will not be filed if the vacancies are filled |
| 50 | within 30 days after the date on which this notice was |
| 51 | sent or posted, whichever is later. If a receiver is |
| 52 | appointed, the receiver shall have all of the powers |
| 53 | of the board and shall be entitled to receive a salary |
| 54 | and reimbursement of all costs and attorney's fees |
| 55 | payable from association funds. |
| 56 | |
| 57 | (name and address of petitioning unit owner) |
| 58 | |
| 59 | (2) The notice required by subsection (1) must be provided |
| 60 | by At least 30 days prior to applying to the circuit court, the |
| 61 | unit owner shall mail to the association by certified mail or |
| 62 | personal delivery, must be posted and post in a conspicuous |
| 63 | place on the condominium property, and must be provided to every |
| 64 | unit owner of the association by certified mail or personal |
| 65 | delivery. The a notice must be posted and mailed or delivered at |
| 66 | least 30 days prior to the filing of a petition seeking |
| 67 | receivership. Notice by mail to a unit owner shall be sent to |
| 68 | the address used by the county property appraiser for notice to |
| 69 | the unit owner describing the intended action, giving the |
| 70 | association the opportunity to fill the vacancies. |
| 71 | (3) If during such time the association fails to fill the |
| 72 | vacancies within 30 days after the notice required by subsection |
| 73 | (1) is posted and mailed or delivered, the unit owner may |
| 74 | proceed with the petition. |
| 75 | (4) If a receiver is appointed, all unit owners shall be |
| 76 | given written notice of such appointment as provided in s. |
| 77 | 718.127. |
| 78 | (5) The association shall be responsible for the salary of |
| 79 | the receiver, court costs, and attorney's fees. The receiver |
| 80 | shall have all powers and duties of a duly constituted board of |
| 81 | administration and shall serve until the association fills |
| 82 | vacancies on the board sufficient to constitute a quorum and the |
| 83 | court relieves the receiver of the appointment. |
| 84 | Section 2. Paragraph (a) of subsection (7) of section |
| 85 | 718.117, Florida Statutes, is amended to read: |
| 86 | 718.117 Termination of condominium.-- |
| 87 | (7) NATURAL DISASTERS.-- |
| 88 | (a) If, after a natural disaster, the identity of the |
| 89 | directors or their right to hold office is in doubt, if they are |
| 90 | deceased or unable to act, if they fail or refuse to act, or if |
| 91 | they cannot be located, any interested person may petition the |
| 92 | circuit court to determine the identity of the directors or, if |
| 93 | found to be in the best interests of the unit owners, to appoint |
| 94 | a receiver to conclude the affairs of the association after a |
| 95 | hearing following notice to such persons as the court directs. |
| 96 | Lienholders shall be given notice of the petition and have the |
| 97 | right to propose persons for the consideration by the court as |
| 98 | receiver. If a receiver is appointed, the court shall direct the |
| 99 | receiver to provide to all unit owners written notice of his or |
| 100 | her appointment as receiver. Such notice shall be mailed or |
| 101 | delivered within 10 days after the appointment. Notice by mail |
| 102 | to a unit owner shall be sent to the address used by the county |
| 103 | property appraiser for notice to the unit owner. |
| 104 | Section 3. Subsection (4) is added to section 718.121, |
| 105 | Florida Statutes, to read: |
| 106 | 718.121 Liens.-- |
| 107 | (4) Except as otherwise provided in this chapter, no lien |
| 108 | may be filed by the association against a condominium unit until |
| 109 | 30 days after the date on which a notice of intent to file a |
| 110 | lien has been served on the owner of the condominium unit by |
| 111 | certified mail or by personal service in the manner authorized |
| 112 | by chapter 48 and the Florida Rules of Civil Procedure. |
| 113 | Section 4. Section 718.127, Florida Statutes, is created |
| 114 | to read: |
| 115 | 718.127 Receivership notification.--Upon the appointment |
| 116 | of a receiver by a court for any reason relating to a |
| 117 | condominium association, the court shall direct the receiver to |
| 118 | provide to all unit owners written notice of his or her |
| 119 | appointment as receiver. Such notice shall be mailed or |
| 120 | delivered within 10 days after the appointment. Notice by mail |
| 121 | to a unit owner shall be sent to the address used by the county |
| 122 | property appraiser for notice to the unit owner. |
| 123 | Section 5. Subsection (4) of section 719.108, Florida |
| 124 | Statutes, is amended to read: |
| 125 | 719.108 Rents and assessments; liability; lien and |
| 126 | priority; interest; collection; cooperative ownership.-- |
| 127 | (4) The association shall have a lien on each cooperative |
| 128 | parcel for any unpaid rents and assessments, plus interest, |
| 129 | against the unit owner of the cooperative parcel. If authorized |
| 130 | by the cooperative documents, said lien shall also secure |
| 131 | reasonable attorney's fees incurred by the association incident |
| 132 | to the collection of the rents and assessments or enforcement of |
| 133 | such lien. The lien is effective from and after the recording of |
| 134 | a claim of lien in the public records in the county in which the |
| 135 | cooperative parcel is located which states the description of |
| 136 | the cooperative parcel, the name of the unit owner, the amount |
| 137 | due, and the due dates. The lien shall expire if a claim of lien |
| 138 | is not filed within 1 year after the date the assessment was |
| 139 | due, and no such lien shall continue for a longer period than 1 |
| 140 | year after the claim of lien has been recorded unless, within |
| 141 | that time, an action to enforce the lien is commenced in a court |
| 142 | of competent jurisdiction. No lien may be filed by the |
| 143 | association against a cooperative parcel until 30 days after the |
| 144 | date on which a notice of intent to file a lien has been served |
| 145 | on the unit owner of the cooperative parcel by certified mail or |
| 146 | by personal service in the manner authorized by chapter 48 and |
| 147 | the Florida Rules of Civil Procedure. |
| 148 | Section 6. Section 719.1124, Florida Statutes, is created |
| 149 | to read: |
| 150 | 719.1124 Failure to fill vacancies on board of |
| 151 | administration sufficient to constitute a quorum; appointment of |
| 152 | receiver upon petition of unit owner.-- |
| 153 | (1) If an association fails to fill vacancies on the board |
| 154 | of administration sufficient to constitute a quorum in |
| 155 | accordance with the bylaws, any unit owner may give notice of |
| 156 | his or her intent to apply to the circuit court within whose |
| 157 | jurisdiction the cooperative lies for the appointment of a |
| 158 | receiver to manage the affairs of the association. The form of |
| 159 | the notice shall be as follows: |
| 160 |
|
| 161 | NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP |
| 162 | |
| 163 | YOU ARE HEREBY NOTIFIED that the undersigned owner of |
| 164 | a unit in (name of cooperative) intends to file a |
| 165 | petition in the circuit court for appointment of a |
| 166 | receiver to manage the affairs of the association on |
| 167 | the grounds that the association has failed to fill |
| 168 | vacancies on the board of administration sufficient to |
| 169 | constitute a quorum. This petition will not be filed |
| 170 | if the vacancies are filled within 30 days after the |
| 171 | date on which this notice was sent or posted, |
| 172 | whichever is later. If a receiver is appointed, the |
| 173 | receiver shall have all of the powers of the board and |
| 174 | shall be entitled to receive a salary and |
| 175 | reimbursement of all costs and attorney's fees payable |
| 176 | from association funds. |
| 177 | |
| 178 | (name and address of petitioning unit owner) |
| 179 |
|
| 180 | (2) The notice required by subsection (1) must be provided |
| 181 | by the unit owner to the association by certified mail or |
| 182 | personal delivery, must be posted in a conspicuous place on the |
| 183 | cooperative property, and must be provided to every unit owner |
| 184 | of the association by certified mail or personal delivery. The |
| 185 | notice must be posted and mailed or delivered at least 30 days |
| 186 | prior to the filing of a petition seeking receivership. Notice |
| 187 | by mail to a unit owner shall be sent to the address used by the |
| 188 | county property appraiser for notice to the unit owner. |
| 189 | (3) If the association fails to fill the vacancies within |
| 190 | 30 days after the notice required by subsection (1) is posted |
| 191 | and mailed or delivered, the unit owner may proceed with the |
| 192 | petition. |
| 193 | (4) If a receiver is appointed, all unit owners shall be |
| 194 | given written notice of such appointment as provided in s. |
| 195 | 719.127. |
| 196 | (5) The association shall be responsible for the salary of |
| 197 | the receiver, court costs, and attorney's fees. The receiver |
| 198 | shall have all powers and duties of a duly constituted board of |
| 199 | administration and shall serve until the association fills |
| 200 | vacancies on the board sufficient to constitute a quorum and the |
| 201 | court relieves the receiver of the appointment. |
| 202 | Section 7. Section 719.127, Florida Statutes, is created |
| 203 | to read: |
| 204 | 719.127 Receivership notification.--Upon the appointment |
| 205 | of a receiver by a court for any reason relating to a |
| 206 | cooperative association, the court shall direct the receiver to |
| 207 | provide to all unit owners written notice of his or her |
| 208 | appointment as receiver. Such notice shall be mailed or |
| 209 | delivered within 10 days after the appointment. Notice by mail |
| 210 | to a unit owner shall be sent to the address used by the county |
| 211 | property appraiser for notice to the unit owner. |
| 212 | Section 8. Subsection (4) of section 720.305, Florida |
| 213 | Statutes, is amended to read: |
| 214 | 720.305 Obligations of members; remedies at law or in |
| 215 | equity; levy of fines and suspension of use rights; failure to |
| 216 | fill sufficient number of vacancies on board of directors to |
| 217 | constitute a quorum; appointment of receiver upon petition of |
| 218 | any member.-- |
| 219 | (4) If an association fails to fill vacancies on the board |
| 220 | of directors sufficient to constitute a quorum in accordance |
| 221 | with the bylaws, any member may apply to the circuit court that |
| 222 | has jurisdiction over the community served by the association |
| 223 | for the appointment of a receiver to manage the affairs of the |
| 224 | association. At least 30 days before applying to the circuit |
| 225 | court, the member shall mail to the association, by certified or |
| 226 | registered mail, and post, in a conspicuous place on the |
| 227 | property of the community served by the association, a notice |
| 228 | describing the intended action, giving the association 30 days |
| 229 | to fill the vacancies. If during such time the association fails |
| 230 | to fill a sufficient number of vacancies so that a quorum can be |
| 231 | assembled, the member may proceed with the petition. If a |
| 232 | receiver is appointed, the homeowners' association shall be |
| 233 | responsible for the salary of the receiver, court costs, |
| 234 | attorney's fees, and all other expenses of the receivership. The |
| 235 | receiver has all the powers and duties of a duly constituted |
| 236 | board of directors and shall serve until the association fills a |
| 237 | sufficient number of vacancies on the board so that a quorum can |
| 238 | be assembled. |
| 239 | Section 9. Section 720.3053, Florida Statutes, is created |
| 240 | to read: |
| 241 | 720.3053 Failure to fill vacancies on board of directors |
| 242 | sufficient to constitute a quorum; appointment of receiver upon |
| 243 | petition of member.-- |
| 244 | (1) If an association fails to fill vacancies on the board |
| 245 | of directors sufficient to constitute a quorum in accordance |
| 246 | with the bylaws, any member may give notice of the member's |
| 247 | intent to apply to the circuit court within whose jurisdiction |
| 248 | the association lies for the appointment of a receiver to manage |
| 249 | the affairs of the association. The form of the notice shall be |
| 250 | as follows: |
| 251 | |
| 252 | NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP |
| 253 | |
| 254 | YOU ARE HEREBY NOTIFIED that the undersigned member of |
| 255 | (name of homeowners' association) intends to file a |
| 256 | petition in the circuit court for appointment of a |
| 257 | receiver to manage the affairs of the association on |
| 258 | the grounds that the association has failed to fill |
| 259 | vacancies on the board of directors sufficient to |
| 260 | constitute a quorum. This petition will not be filed |
| 261 | if the vacancies are filled within 30 days after the |
| 262 | date on which this notice was sent or posted, |
| 263 | whichever is later. If a receiver is appointed, the |
| 264 | receiver shall have all of the powers of the board and |
| 265 | shall be entitled to receive a salary and |
| 266 | reimbursement of all costs and attorney's fees payable |
| 267 | from association funds. |
| 268 | |
| 269 | (name and address of petitioning member) |
| 270 | |
| 271 | (2) The notice required by subsection (1) must be provided |
| 272 | by the member to the association by certified mail or personal |
| 273 | delivery, must be posted in a conspicuous place within the |
| 274 | homeowners' association, and must be provided to every member of |
| 275 | the association by certified mail or personal delivery. The |
| 276 | notice must be posted and mailed or delivered at least 30 days |
| 277 | prior to the filing of a petition seeking receivership. Notice |
| 278 | by mail to a member shall be sent to the address used by the |
| 279 | county property appraiser for notice to the member. |
| 280 | (3) If the association fails to fill the vacancies within |
| 281 | 30 days after the notice required by subsection (1) is posted |
| 282 | and mailed or delivered, the member may proceed with the |
| 283 | petition. |
| 284 | (4) If a receiver is appointed, all members shall be given |
| 285 | written notice of such appointment as provided in s. 720.313. |
| 286 | (5) The association shall be responsible for the salary of |
| 287 | the receiver, court costs, and attorney's fees. The receiver |
| 288 | shall have all powers and duties of a duly constituted board of |
| 289 | directors and shall serve until the association fills vacancies |
| 290 | on the board sufficient to constitute a quorum and the court |
| 291 | relieves the receiver of the appointment. |
| 292 | Section 10. Section 720.313, Florida Statutes, is created |
| 293 | to read: |
| 294 | 720.313 Receivership notification.--Upon the appointment |
| 295 | of a receiver by a court for any reason relating to a |
| 296 | homeowners' association, the court shall direct the receiver to |
| 297 | provide to all members written notice of his or her appointment |
| 298 | as receiver. Such notice shall be mailed or delivered within 10 |
| 299 | days after the appointment. Notice by mail to a member shall be |
| 300 | sent to the address used by the county property appraiser for |
| 301 | notice to the owner of the property. |
| 302 | Section 11. This act shall take effect July 1, 2008. |