Florida Senate - 2008 SB 2494

By Senator Margolis

35-03513A-08 20082494__

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A bill to be entitled

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An act relating to community associations; amending s.

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718.1124, F.S., and creating ss. 719.1124 and 720.3053,

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F.S.; providing for notification of a unit owner's or

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member's intent to petition for the appointment of a

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receiver if an association's governing board fails to fill

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vacancies sufficient to constitute a quorum; providing for

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written notice to unit owners or members of any such

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appointment; requiring the salary of the receiver and

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certain costs and fees to be paid by the association;

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providing powers, duties, and term of service of the

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receiver; amending s. 718.117, F.S., and creating ss.

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718.127, 719.127, and 720.313, F.S.; specifying

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receivership notification requirements with respect to

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condominium associations, cooperative associations, and

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homeowners' associations; amending ss. 718.121 and

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719.108, F.S.; prohibiting a lien from being filed against

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a condominium unit or cooperative parcel until 30 days

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after service of a notice of intent to file the lien;

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amending s. 720.305, F.S.; deleting notification

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requirements for the appointment of a receiver under

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specified circumstances for matters relating to

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homeowners' associations; providing an effective date.

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

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     Section 1.  Section 718.1124, Florida Statutes, is amended

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to read:

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     718.1124  Failure to fill vacancies on board of

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administration sufficient to constitute a quorum; appointment of

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receiver upon petition of unit owner.--

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     (1) If an association fails to fill vacancies on the board

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of administration sufficient to constitute a quorum in accordance

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with the bylaws, any unit owner may give notice of his or her

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intent to apply to the circuit court within whose jurisdiction

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the condominium lies for the appointment of a receiver to manage

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the affairs of the association. The form of the notice shall be

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as follows:

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NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP

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YOU ARE HEREBY NOTIFIED that the undersigned owner of a

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condominium unit in (name of condominium) intends to

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file a petition in the circuit court for appointment of

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a receiver to manage the affairs of the association on

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the grounds that the association has failed to fill

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vacancies on the board of administration sufficient to

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constitute a quorum. This petition will not be filed if

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the vacancies are filled within 30 days after the date

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on which this notice was sent or posted, whichever is

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later. If a receiver is appointed, the receiver shall

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have all of the powers of the board and shall be

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entitled to receive a salary and reimbursement of all

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costs and attorney's fees payable from association

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funds.

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(name and address of petitioning unit owner)

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     (2) The notice required by subsection (1) must be provided

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by At least 30 days prior to applying to the circuit court, the

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unit owner shall mail to the association by certified mail or

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personal delivery, must be posted and post in a conspicuous place

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on the condominium property, and must be provided to every unit

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owner of the association by certified mail or personal delivery.

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The a notice must be posted and mailed or delivered at least 30

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days prior to the filing of a petition seeking receivership.

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Notice by mail to a unit owner shall be sent to the address used

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by the county property appraiser for notice to the unit owner

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describing the intended action, giving the association the

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opportunity to fill the vacancies.

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     (3) If during such time the association fails to fill the

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vacancies within 30 days after the notice required by subsection

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(1) is posted and mailed or delivered, the unit owner may proceed

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with the petition.

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     (4) If a receiver is appointed, all unit owners shall be

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given written notice of such appointment as provided in s.

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718.127.

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     (5) The association shall be responsible for the salary of

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the receiver, court costs, and attorney's fees. The receiver

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shall have all powers and duties of a duly constituted board of

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administration and shall serve until the association fills

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vacancies on the board sufficient to constitute a quorum and the

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court relieves the receiver of the appointment.

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     Section 2.  Paragraph (a) of subsection (7) of section

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718.117, Florida Statutes, is amended to read:

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     718.117  Termination of condominium.--

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     (7)  NATURAL DISASTERS.--

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     (a)  If, after a natural disaster, the identity of the

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directors or their right to hold office is in doubt, if they are

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deceased or unable to act, if they fail or refuse to act, or if

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they cannot be located, any interested person may petition the

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circuit court to determine the identity of the directors or, if

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found to be in the best interests of the unit owners, to appoint

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a receiver to conclude the affairs of the association after a

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hearing following notice to such persons as the court directs.

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Lienholders shall be given notice of the petition and have the

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right to propose persons for the consideration by the court as

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receiver. If a receiver is appointed, the court shall direct the

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receiver to provide to all unit owners written notice of his or

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her appointment as receiver. Such notice shall be mailed or

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delivered within 10 days after the appointment. Notice by mail to

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a unit owner shall be sent to the address used by the county

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property appraiser for notice to the unit owner.

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     Section 3.  Subsection (4) is added to section 718.121,

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Florida Statutes, to read:

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     718.121  Liens.--

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     (4) Except as otherwise provided in this chapter, no lien

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may be filed against a condominium unit until 30 days after the

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date on which a notice of intent to file a lien has been served

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on the owner of the condominium unit by certified mail or by

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personal service in the manner authorized by chapter 48 and the

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Florida Rules of Civil Procedure.

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     Section 4.  Section 718.127, Florida Statutes, is created to

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read:

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     718.127 Receivership notification.--Upon the appointment of

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a receiver by a court for any reason relating to a condominium

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association, the court shall direct the receiver to provide to

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all unit owners written notice of his or her appointment as

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receiver. Such notice shall be mailed or delivered within 10 days

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after the appointment. Notice by mail to a unit owner shall be

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sent to the address used by the county property appraiser for

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notice to the unit owner.

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     Section 5.  Subsection (4) of section 719.108, Florida

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Statutes, is amended to read:

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     719.108  Rents and assessments; liability; lien and

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priority; interest; collection; cooperative ownership.--

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     (4)  The association shall have a lien on each cooperative

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parcel for any unpaid rents and assessments, plus interest,

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against the unit owner of the cooperative parcel. If authorized

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by the cooperative documents, said lien shall also secure

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reasonable attorney's fees incurred by the association incident

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to the collection of the rents and assessments or enforcement of

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such lien. The lien is effective from and after the recording of

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a claim of lien in the public records in the county in which the

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cooperative parcel is located which states the description of the

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cooperative parcel, the name of the unit owner, the amount due,

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and the due dates. The lien shall expire if a claim of lien is

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not filed within 1 year after the date the assessment was due,

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and no such lien shall continue for a longer period than 1 year

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after the claim of lien has been recorded unless, within that

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time, an action to enforce the lien is commenced in a court of

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competent jurisdiction. No lien may be filed against a

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cooperative parcel until 30 days after the date on which a notice

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of intent to file a lien has been served on the unit owner of the

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cooperative parcel by certified mail or by personal service in

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the manner authorized by chapter 48 and the Florida Rules of

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Civil Procedure.

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     Section 6.  Section 719.1124, Florida Statutes, is created

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to read:

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     719.1124 Failure to fill vacancies on board of

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administration sufficient to constitute a quorum; appointment of

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receiver upon petition of unit owner.--

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     (1) If an association fails to fill vacancies on the board

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of administration sufficient to constitute a quorum in accordance

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with the bylaws, any unit owner may give notice of his or her

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intent to apply to the circuit court within whose jurisdiction

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the cooperative lies for the appointment of a receiver to manage

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the affairs of the association. The form of the notice shall be

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as follows:

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NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP

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YOU ARE HEREBY NOTIFIED that the undersigned owner of a

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unit in (name of cooperative) intends to file a

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petition in the circuit court for appointment of a

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receiver to manage the affairs of the association on

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the grounds that the association has failed to fill

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vacancies on the board of administration sufficient to

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constitute a quorum. This petition will not be filed if

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the vacancies are filled within 30 days after the date

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on which this notice was sent or posted, whichever is

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later. If a receiver is appointed, the receiver shall

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have all of the powers of the board and shall be

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entitled to receive a salary and reimbursement of all

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costs and attorney's fees payable from association

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funds.

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(name and address of petitioning unit owner)

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     (2) The notice required by subsection (1) must be provided

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by the unit owner to the association by certified mail or

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personal delivery, must be posted in a conspicuous place on the

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cooperative property, and must be provided to every unit owner of

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the association by certified mail or personal delivery. The

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notice must be posted and mailed or delivered at least 30 days

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prior to the filing of a petition seeking receivership. Notice by

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mail to a unit owner shall be sent to the address used by the

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county property appraiser for notice to the unit owner.

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     (3) If the association fails to fill the vacancies within

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30 days after the notice required by subsection (1) is posted and

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mailed or delivered, the unit owner may proceed with the

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petition.

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     (4) If a receiver is appointed, all unit owners shall be

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given written notice of such appointment as provided in s.

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719.127.

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     (5) The association shall be responsible for the salary of

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the receiver, court costs, and attorney's fees. The receiver

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shall have all powers and duties of a duly constituted board of

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administration and shall serve until the association fills

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vacancies on the board sufficient to constitute a quorum and the

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court relieves the receiver of the appointment.

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     Section 7.  Section 719.127, Florida Statutes, is created to

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read:

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     719.127 Receivership notification.--Upon the appointment of

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a receiver by a court for any reason relating to a cooperative

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association, the court shall direct the receiver to provide to

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all unit owners written notice of his or her appointment as

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receiver. Such notice shall be mailed or delivered within 10 days

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after the appointment. Notice by mail to a unit owner shall be

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sent to the address used by the county property appraiser for

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notice to the unit owner.

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     Section 8.  Section 720.305, Florida Statutes, is amended to

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read:

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     720.305  Obligations of members; remedies at law or in

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equity; levy of fines and suspension of use rights; failure to

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fill sufficient number of vacancies on board of directors to

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constitute a quorum; appointment of receiver upon petition of any

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member.--

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     (1)  Each member and the member's tenants, guests, and

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invitees, and each association, are governed by, and must comply

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with, this chapter, the governing documents of the community, and

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the rules of the association. Actions at law or in equity, or

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both, to redress alleged failure or refusal to comply with these

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provisions may be brought by the association or by any member

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against:

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     (a)  The association;

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     (b)  A member;

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     (c)  Any director or officer of an association who willfully

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and knowingly fails to comply with these provisions; and

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     (d)  Any tenants, guests, or invitees occupying a parcel or

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using the common areas.

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The prevailing party in any such litigation is entitled to

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recover reasonable attorney's fees and costs. A member prevailing

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in an action between the association and the member under this

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section, in addition to recovering his or her reasonable

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attorney's fees, may recover additional amounts as determined by

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the court to be necessary to reimburse the member for his or her

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share of assessments levied by the association to fund its

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expenses of the litigation. This relief does not exclude other

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remedies provided by law. This section does not deprive any

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person of any other available right or remedy.

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     (2)  If the governing documents so provide, an association

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may suspend, for a reasonable period of time, the rights of a

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member or a member's tenants, guests, or invitees, or both, to

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use common areas and facilities and may levy reasonable fines,

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not to exceed $100 per violation, against any member or any

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tenant, guest, or invitee. A fine may be levied on the basis of

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each day of a continuing violation, with a single notice and

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opportunity for hearing, except that no such fine shall exceed

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$1,000 in the aggregate unless otherwise provided in the

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governing documents. A fine shall not become a lien against a

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parcel. In any action to recover a fine, the prevailing party is

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entitled to collect its reasonable attorney's fees and costs from

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the nonprevailing party as determined by the court.

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     (a)  A fine or suspension may not be imposed without notice

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of at least 14 days to the person sought to be fined or suspended

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and an opportunity for a hearing before a committee of at least

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three members appointed by the board who are not officers,

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directors, or employees of the association, or the spouse,

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parent, child, brother, or sister of an officer, director, or

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employee. If the committee, by majority vote, does not approve a

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proposed fine or suspension, it may not be imposed.

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     (b)  The requirements of this subsection do not apply to the

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imposition of suspensions or fines upon any member because of the

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failure of the member to pay assessments or other charges when

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due if such action is authorized by the governing documents.

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     (c)  Suspension of common-area-use rights shall not impair

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the right of an owner or tenant of a parcel to have vehicular and

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pedestrian ingress to and egress from the parcel, including, but

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not limited to, the right to park.

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     (3)  If the governing documents so provide, an association

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may suspend the voting rights of a member for the nonpayment of

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regular annual assessments that are delinquent in excess of 90

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days.

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     (4) If an association fails to fill vacancies on the board

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of directors sufficient to constitute a quorum in accordance with

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the bylaws, any member may apply to the circuit court that has

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jurisdiction over the community served by the association for the

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appointment of a receiver to manage the affairs of the

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association. At least 30 days before applying to the circuit

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court, the member shall mail to the association, by certified or

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registered mail, and post, in a conspicuous place on the property

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of the community served by the association, a notice describing

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the intended action, giving the association 30 days to fill the

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vacancies. If during such time the association fails to fill a

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sufficient number of vacancies so that a quorum can be assembled,

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the member may proceed with the petition. If a receiver is

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appointed, the homeowners' association shall be responsible for

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the salary of the receiver, court costs, attorney's fees, and all

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other expenses of the receivership. The receiver has all the

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powers and duties of a duly constituted board of directors and

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shall serve until the association fills a sufficient number of

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vacancies on the board so that a quorum can be assembled.

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     Section 9.  Section 720.3053, Florida Statutes, is created

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to read:

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     720.3053 Failure to fill vacancies on board of directors

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sufficient to constitute a quorum; appointment of receiver upon

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petition of member.--

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     (1) If an association fails to fill vacancies on the board

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of directors sufficient to constitute a quorum in accordance with

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the bylaws, any member may give notice of the member's intent to

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apply to the circuit court within whose jurisdiction the

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association lies for the appointment of a receiver to manage the

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affairs of the association. The form of the notice shall be as

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follows:

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NOTICE OF INTENT TO APPLY FOR RECEIVERSHIP

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YOU ARE HEREBY NOTIFIED that the undersigned member of

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(name of homeowners' association) intends to file a

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petition in the circuit court for appointment of a

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receiver to manage the affairs of the association on

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the grounds that the association has failed to fill

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vacancies on the board of directors sufficient to

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constitute a quorum. This petition will not be filed if

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the vacancies are filled within 30 days after the date

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on which this notice was sent or posted, whichever is

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later. If a receiver is appointed, the receiver shall

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have all of the powers of the board and shall be

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entitled to receive a salary and reimbursement of all

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costs and attorney's fees payable from association

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funds.

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(name and address of petitioning member)

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     (2) The notice required by subsection (1) must be provided

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by the member to the association by certified mail or personal

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delivery, must be posted in a conspicuous place within the

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homeowners' association, and must be provided to every member of

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the association by certified mail or personal delivery. The

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notice must be posted and mailed or delivered at least 30 days

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prior to the filing of a petition seeking receivership. Notice by

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mail to a member shall be sent to the address used by the county

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property appraiser for notice to the member.

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     (3) If the association fails to fill the vacancies within

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30 days after the notice required by subsection (1) is posted and

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mailed or delivered, the member may proceed with the petition.

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     (4) If a receiver is appointed, all members shall be given

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written notice of such appointment as provided in s. 720.313.

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     (5) The association shall be responsible for the salary of

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the receiver, court costs, and attorney's fees. The receiver

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shall have all powers and duties of a duly constituted board of

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directors and shall serve until the association fills vacancies

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on the board sufficient to constitute a quorum and the court

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relieves the receiver of the appointment.

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     Section 10.  Section 720.313, Florida Statutes, is created

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to read:

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     720.313 Receivership notification.--Upon the appointment of

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a receiver by a court for any reason relating to a homeowners'

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association, the court shall direct the receiver to provide to

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all members written notice of his or her appointment as receiver.

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Such notice shall be mailed or delivered within 10 days after the

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appointment. Notice by mail to a member shall be sent to the

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address used by the county property appraiser for notice to the

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owner of the property.

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     Section 11.  This act shall take effect July 1, 2008.

CODING: Words stricken are deletions; words underlined are additions.