| 1 | A bill to be entitled |
| 2 | An act relating to condominiums; amending s. 718.111, |
| 3 | F.S.; removing provision providing for windstorm insurance |
| 4 | for condominium associations; requiring official records |
| 5 | of the association to be maintained for at least 5 years |
| 6 | and to be made available at certain locations; providing |
| 7 | civil and criminal sanctions, including personally against |
| 8 | any officer, director, or manager who knowingly or |
| 9 | intentionally defaces, destroys, or fails to create or |
| 10 | maintain accounting records; prohibiting accessibility to |
| 11 | certain personal identifying information of unit owners by |
| 12 | fellow unit owners; restricting a condominium association |
| 13 | from waiving a financial report for more than 2 years; |
| 14 | amending s. 718.112, F.S.; prohibiting votes allocated to |
| 15 | units owned by the association from being cast by proxy, |
| 16 | ballot or otherwise, for any purpose; requiring the board |
| 17 | to address certain agenda items proposed by a petition of |
| 18 | a specified percent of the unit owners; providing |
| 19 | requirements for the location of annual unit owner |
| 20 | meetings; revising notice procedures; providing for the |
| 21 | securing of ballots; revising procedures relating to the |
| 22 | filling of a vacancy on the board; authorizing persons |
| 23 | acting under a specific power of attorney to vote on |
| 24 | behalf of a unit owner; removing a provision allowing an |
| 25 | association to provide for different voting and election |
| 26 | procedures in its bylaws; requiring the association to |
| 27 | prepare an annual budget of estimated revenues and |
| 28 | expenses; requiring certain ballot statements to contain |
| 29 | certain statements; requiring a vote to provide for no |
| 30 | reserves or a percentage of reserves to be made at annual |
| 31 | meetings; authorizing the association to use reserve funds |
| 32 | for nonscheduled purposes under certain conditions; |
| 33 | amending s. 718.113, F.S.; requiring the board to have the |
| 34 | condominium buildings periodically inspected for |
| 35 | structural and electrical soundness by a professional |
| 36 | engineer or professional architect registered in the |
| 37 | state; requiring the inspector to provide a report to the |
| 38 | association and unit owners; prohibiting the board from |
| 39 | adopting rules or regulations impairing certain rights or |
| 40 | prohibiting reasonable accommodation for religious |
| 41 | practices; creating s. 718.1224, F.S.; prohibiting certain |
| 42 | lawsuits arising from unit owners' appearances and |
| 43 | presentations before a governmental entity; providing a |
| 44 | definition; providing for award of damages and attorney |
| 45 | fees; prohibiting associations from expending association |
| 46 | funds in prosecuting such a suit against a unit owner; |
| 47 | providing an effective date. |
| 48 |
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| 49 | Be It Enacted by the Legislature of the State of Florida: |
| 50 |
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| 51 | Section 1. Paragraph (a) of subsection (11), paragraphs |
| 52 | (a), (b), and (c) of subsection (12), and subsection (13) of |
| 53 | section 718.111, Florida Statutes, are amended to read: |
| 54 | 718.111 The association.-- |
| 55 | (11) INSURANCE.--In order to protect the safety, health, |
| 56 | and welfare of the people of the State of Florida and to ensure |
| 57 | consistency in the provision of insurance coverage to |
| 58 | condominiums and their unit owners, paragraphs (a), (b), and (c) |
| 59 | are deemed to apply to every residential condominium in the |
| 60 | state, regardless of the date of its declaration of condominium. |
| 61 | It is the intent of the Legislature to encourage lower or stable |
| 62 | insurance premiums for associations described in this section. |
| 63 | Therefore, the Legislature requires a report to be prepared by |
| 64 | the Office of Insurance Regulation of the Department of |
| 65 | Financial Services for publication 18 months from the effective |
| 66 | date of this act, evaluating premium increases or decreases for |
| 67 | associations, unit owner premium increases or decreases, |
| 68 | recommended changes to better define common areas, or any other |
| 69 | information the Office of Insurance Regulation deems |
| 70 | appropriate. |
| 71 | (a)1. A unit-owner controlled association operating a |
| 72 | residential condominium shall use its best efforts to obtain and |
| 73 | maintain adequate insurance to protect the association, the |
| 74 | association property, the common elements, and the condominium |
| 75 | property required to be insured by the association pursuant to |
| 76 | paragraph (b). If the association is developer controlled, the |
| 77 | association shall exercise due diligence to obtain and maintain |
| 78 | such insurance. Failure to obtain and maintain adequate |
| 79 | insurance during any period of developer control shall |
| 80 | constitute a breach of fiduciary responsibility by the |
| 81 | developer-appointed members of the board of directors of the |
| 82 | association, unless said members can show that despite such |
| 83 | failure, they have exercised due diligence. The declaration of |
| 84 | condominium as originally recorded, or amended pursuant to |
| 85 | procedures provided therein, may require that condominium |
| 86 | property consisting of freestanding buildings where there is no |
| 87 | more than one building in or on such unit need not be insured by |
| 88 | the association if the declaration requires the unit owner to |
| 89 | obtain adequate insurance for the condominium property. An |
| 90 | association may also obtain and maintain liability insurance for |
| 91 | directors and officers, insurance for the benefit of association |
| 92 | employees, and flood insurance for common elements, association |
| 93 | property, and units. Adequate insurance, regardless of any |
| 94 | requirement in the declaration of condominium for coverage by |
| 95 | the association for "full insurable value," "replacement cost," |
| 96 | or the like, may include reasonable deductibles as determined by |
| 97 | the board based upon available funds or predetermined assessment |
| 98 | authority at the time that the insurance is obtained. |
| 99 | 1. Windstorm insurance coverage for a group of no fewer |
| 100 | than three communities created and operating under this chapter, |
| 101 | chapter 719, chapter 720, or chapter 721 may be obtained and |
| 102 | maintained for the communities if the insurance coverage is |
| 103 | sufficient to cover an amount equal to the probable maximum loss |
| 104 | for the communities for a 250-year windstorm event. Such |
| 105 | probable maximum loss must be determined through the use of a |
| 106 | competent model that has been accepted by the Florida Commission |
| 107 | on Hurricane Loss Projection Methodology. Such insurance |
| 108 | coverage is deemed adequate windstorm insurance for the purposes |
| 109 | of this section. |
| 110 | 2. An association or group of associations may self-insure |
| 111 | against claims against the association, the association |
| 112 | property, and the condominium property required to be insured by |
| 113 | an association, upon compliance with the applicable provisions |
| 114 | of ss. 624.460-624.488, which shall be considered adequate |
| 115 | insurance for the purposes of this section. A copy of each |
| 116 | policy of insurance in effect shall be made available for |
| 117 | inspection by unit owners at reasonable times. |
| 118 | (12) OFFICIAL RECORDS.-- |
| 119 | (a) From the inception of the association, the association |
| 120 | shall maintain each of the following items, when applicable, |
| 121 | which shall constitute the official records of the association: |
| 122 | 1. A copy of the plans, permits, warranties, and other |
| 123 | items provided by the developer pursuant to s. 718.301(4). |
| 124 | 2. A photocopy of the recorded declaration of condominium |
| 125 | of each condominium operated by the association and of each |
| 126 | amendment to each declaration. |
| 127 | 3. A photocopy of the recorded bylaws of the association |
| 128 | and of each amendment to the bylaws. |
| 129 | 4. A certified copy of the articles of incorporation of |
| 130 | the association, or other documents creating the association, |
| 131 | and of each amendment thereto. |
| 132 | 5. A copy of the current rules of the association. |
| 133 | 6. A book or books which contain the minutes of all |
| 134 | meetings of the association, of the board of administration |
| 135 | directors, and of unit owners, which minutes shall be retained |
| 136 | for a period of not less than 7 years. |
| 137 | 7. A current roster of all unit owners and their mailing |
| 138 | addresses, unit identifications, voting certifications, and, if |
| 139 | known, telephone numbers. The association shall also maintain |
| 140 | the electronic mailing addresses and the numbers designated by |
| 141 | unit owners for receiving notice sent by electronic transmission |
| 142 | of those unit owners consenting to receive notice by electronic |
| 143 | transmission. The electronic mailing addresses and numbers |
| 144 | provided by unit owners to receive notice by electronic |
| 145 | transmission shall be removed from association records when |
| 146 | consent to receive notice by electronic transmission is revoked. |
| 147 | However, the association is not liable for an erroneous |
| 148 | disclosure of the electronic mail address or the number for |
| 149 | receiving electronic transmission of notices. |
| 150 | 8. All current insurance policies of the association and |
| 151 | condominiums operated by the association. |
| 152 | 9. A current copy of any management agreement, lease, or |
| 153 | other contract to which the association is a party or under |
| 154 | which the association or the unit owners have an obligation or |
| 155 | responsibility. |
| 156 | 10. Bills of sale or transfer for all property owned by |
| 157 | the association. |
| 158 | 11. Accounting records for the association and separate |
| 159 | accounting records for each condominium which the association |
| 160 | operates. All accounting records shall be maintained for a |
| 161 | period of not less than 7 years. Any officer, director, or |
| 162 | manager who knowingly or intentionally defaces, destroys, or |
| 163 | fails to create or maintain accounting records is personally |
| 164 | subject to a civil penalty pursuant to s. 718.501(1)(d) and |
| 165 | appropriate criminal sanctions. The accounting records shall |
| 166 | include, but are not limited to: |
| 167 | a. Accurate, itemized, and detailed records of all |
| 168 | receipts and expenditures. |
| 169 | b. A current account and a monthly, bimonthly, or |
| 170 | quarterly statement of the account for each unit designating the |
| 171 | name of the unit owner, the due date and amount of each |
| 172 | assessment, the amount paid upon the account, and the balance |
| 173 | due. |
| 174 | c. All audits, reviews, accounting statements, and |
| 175 | financial reports of the association or condominium. |
| 176 | d. All contracts for work to be performed. Bids for work |
| 177 | to be performed shall also be considered official records and |
| 178 | shall be maintained for a period of 1 year. |
| 179 | 12. Ballots, sign-in sheets, voting proxies, and all other |
| 180 | papers relating to voting by unit owners, which shall be |
| 181 | maintained for a period of 1 year from the date of the election, |
| 182 | vote, or meeting to which the document relates. |
| 183 | 13. All rental records, when the association is acting as |
| 184 | agent for the rental of condominium units. |
| 185 | 14. A copy of the current question and answer sheet as |
| 186 | described by s. 718.504. |
| 187 | 15. All other records of the association not specifically |
| 188 | included in the foregoing which are related to the operation of |
| 189 | the association. |
| 190 | (b) The official records of the association shall be |
| 191 | maintained within the state for at least 5 years. The records of |
| 192 | the association shall be made available to a unit owner, at a |
| 193 | location within the county in which the condominium property is |
| 194 | located, within 5 working days after receipt of written request |
| 195 | by the board or its designee. This paragraph may be complied |
| 196 | with by having a copy of the official records of the association |
| 197 | available for inspection or copying on the condominium property |
| 198 | or association property. |
| 199 | (c) The official records of the association are open to |
| 200 | inspection by any association member or the authorized |
| 201 | representative of such member at all reasonable times. The right |
| 202 | to inspect the records includes the right to make or obtain |
| 203 | copies, at the reasonable expense, if any, of the association |
| 204 | member. The association may adopt reasonable rules regarding the |
| 205 | frequency, time, location, notice, and manner of record |
| 206 | inspections and copying. The failure of an association to |
| 207 | provide the records within 10 working days after receipt of a |
| 208 | written request shall create a rebuttable presumption that the |
| 209 | association willfully failed to comply with this paragraph. A |
| 210 | unit owner who is denied access to official records is entitled |
| 211 | to the actual damages or minimum damages for the association's |
| 212 | willful failure to comply with this paragraph. The minimum |
| 213 | damages shall be $50 per calendar day up to 10 days, the |
| 214 | calculation to begin on the 11th working day after receipt of |
| 215 | the written request. The failure to permit inspection of the |
| 216 | association records as provided herein entitles any person |
| 217 | prevailing in an enforcement action to recover reasonable |
| 218 | attorney's fees from the person in control of the records who, |
| 219 | directly or indirectly, knowingly denied access to the records |
| 220 | for inspection. Any officer, director, or manager who knowingly |
| 221 | or intentionally defaces, destroys, or fails to create or |
| 222 | maintain accounting records is personally subject to a civil |
| 223 | penalty pursuant to s. 718.501(1)(d) and appropriate criminal |
| 224 | sanctions. The association shall maintain an adequate number of |
| 225 | copies of the declaration, articles of incorporation, bylaws, |
| 226 | and rules, and all amendments to each of the foregoing, as well |
| 227 | as the question and answer sheet provided for in s. 718.504 and |
| 228 | year-end financial information required in this section on the |
| 229 | condominium property to ensure their availability to unit owners |
| 230 | and prospective purchasers, and may charge its actual costs for |
| 231 | preparing and furnishing these documents to those requesting the |
| 232 | same. Notwithstanding the provisions of this paragraph, the |
| 233 | following records shall not be accessible to unit owners: |
| 234 | 1. Any record protected by the lawyer-client privilege as |
| 235 | described in s. 90.502; and any record protected by the work- |
| 236 | product privilege, including any record prepared by an |
| 237 | association attorney or prepared at the attorney's express |
| 238 | direction; which reflects a mental impression, conclusion, |
| 239 | litigation strategy, or legal theory of the attorney or the |
| 240 | association, and which was prepared exclusively for civil or |
| 241 | criminal litigation or for adversarial administrative |
| 242 | proceedings, or which was prepared in anticipation of imminent |
| 243 | civil or criminal litigation or imminent adversarial |
| 244 | administrative proceedings until the conclusion of the |
| 245 | litigation or adversarial administrative proceedings. |
| 246 | 2. Information obtained by an association in connection |
| 247 | with the approval of the lease, sale, or other transfer of a |
| 248 | unit. |
| 249 | 3. Medical records of unit owners. |
| 250 | 4. Social security numbers, driver's license numbers, |
| 251 | credit card numbers, and other personal identifying information |
| 252 | of unit owners, occupants, or tenants. |
| 253 | (13) FINANCIAL REPORTING.--Within 90 days after the end of |
| 254 | the fiscal year, or annually on a date provided in the bylaws, |
| 255 | the association shall prepare and complete, or contract for the |
| 256 | preparation and completion of, a financial report for the |
| 257 | preceding fiscal year. Within 21 days after the final financial |
| 258 | report is completed by the association or received from the |
| 259 | third party, but not later than 120 days after the end of the |
| 260 | fiscal year or other date as provided in the bylaws, the |
| 261 | association shall mail to each unit owner at the address last |
| 262 | furnished to the association by the unit owner, or hand deliver |
| 263 | to each unit owner, a copy of the financial report or a notice |
| 264 | that a copy of the financial report will be mailed or hand |
| 265 | delivered to the unit owner, without charge, upon receipt of a |
| 266 | written request from the unit owner. The division shall adopt |
| 267 | rules setting forth uniform accounting principles and standards |
| 268 | to be used by all associations and shall adopt rules addressing |
| 269 | financial reporting requirements for multicondominium |
| 270 | associations. In adopting such rules, the division shall |
| 271 | consider the number of members and annual revenues of an |
| 272 | association. Financial reports shall be prepared as follows: |
| 273 | (a) An association that meets the criteria of this |
| 274 | paragraph shall prepare or cause to be prepared a complete set |
| 275 | of financial statements in accordance with generally accepted |
| 276 | accounting principles. The financial statements shall be based |
| 277 | upon the association's total annual revenues, as follows: |
| 278 | 1. An association with total annual revenues of $100,000 |
| 279 | or more, but less than $200,000, shall prepare compiled |
| 280 | financial statements. |
| 281 | 2. An association with total annual revenues of at least |
| 282 | $200,000, but less than $400,000, shall prepare reviewed |
| 283 | financial statements. |
| 284 | 3. An association with total annual revenues of $400,000 |
| 285 | or more shall prepare audited financial statements. |
| 286 | (b)1. An association with total annual revenues of less |
| 287 | than $100,000 shall prepare a report of cash receipts and |
| 288 | expenditures. |
| 289 | 2. An association which operates less than 50 units, |
| 290 | regardless of the association's annual revenues, shall prepare a |
| 291 | report of cash receipts and expenditures in lieu of financial |
| 292 | statements required by paragraph (a). |
| 293 | 3. A report of cash receipts and disbursements must |
| 294 | disclose the amount of receipts by accounts and receipt |
| 295 | classifications and the amount of expenses by accounts and |
| 296 | expense classifications, including, but not limited to, the |
| 297 | following, as applicable: costs for security, professional and |
| 298 | management fees and expenses, taxes, costs for recreation |
| 299 | facilities, expenses for refuse collection and utility services, |
| 300 | expenses for lawn care, costs for building maintenance and |
| 301 | repair, insurance costs, administration and salary expenses, and |
| 302 | reserves accumulated and expended for capital expenditures, |
| 303 | deferred maintenance, and any other category for which the |
| 304 | association maintains reserves. |
| 305 | (c) An association may prepare or cause to be prepared, |
| 306 | without a meeting of or approval by the unit owners: |
| 307 | 1. Compiled, reviewed, or audited financial statements, if |
| 308 | the association is required to prepare a report of cash receipts |
| 309 | and expenditures; |
| 310 | 2. Reviewed or audited financial statements, if the |
| 311 | association is required to prepare compiled financial |
| 312 | statements; or |
| 313 | 3. Audited financial statements if the association is |
| 314 | required to prepare reviewed financial statements. |
| 315 | (d) If approved by a majority of the voting interests |
| 316 | present at a properly called meeting of the association, an |
| 317 | association may prepare or cause to be prepared: |
| 318 | 1. A report of cash receipts and expenditures in lieu of a |
| 319 | compiled, reviewed, or audited financial statement; |
| 320 | 2. A report of cash receipts and expenditures or a |
| 321 | compiled financial statement in lieu of a reviewed or audited |
| 322 | financial statement; or |
| 323 | 3. A report of cash receipts and expenditures, a compiled |
| 324 | financial statement, or a reviewed financial statement in lieu |
| 325 | of an audited financial statement. |
| 326 |
|
| 327 | Such meeting and approval must occur prior to the end of the |
| 328 | fiscal year and is effective only for the fiscal year in which |
| 329 | the vote is taken. With respect to an association to which the |
| 330 | developer has not turned over control of the association, all |
| 331 | unit owners, including the developer, may vote on issues related |
| 332 | to the preparation of financial reports for the first 2 fiscal |
| 333 | years of the association's operation, beginning with the fiscal |
| 334 | year in which the declaration is recorded. Thereafter, all unit |
| 335 | owners except the developer may vote on such issues until |
| 336 | control is turned over to the association by the developer. An |
| 337 | association or board of administration may not waive the |
| 338 | financial reporting requirements of this section for more than 2 |
| 339 | consecutive years. |
| 340 | Section 2. Subsection (2) of section 718.112, Florida |
| 341 | Statutes, is amended to read: |
| 342 | 718.112 Bylaws.-- |
| 343 | (2) REQUIRED PROVISIONS.--The bylaws of the association |
| 344 | shall provide for the following and, if they do not do so, shall |
| 345 | be deemed to include the following: |
| 346 | (a) Administration.-- |
| 347 | 1. The form of administration of the association shall be |
| 348 | described indicating the title of the officers and board of |
| 349 | administration and specifying the powers, duties, manner of |
| 350 | selection and removal, and compensation, if any, of officers and |
| 351 | boards. In the absence of such a provision, the board of |
| 352 | administration shall be composed of five members, except in the |
| 353 | case of a condominium which has five or fewer units, in which |
| 354 | case in a not-for-profit corporation the board shall consist of |
| 355 | not fewer than three members. In the absence of provisions to |
| 356 | the contrary in the bylaws, the board of administration shall |
| 357 | have a president, a secretary, and a treasurer, who shall |
| 358 | perform the duties of such officers customarily performed by |
| 359 | officers of corporations. Unless prohibited in the bylaws, the |
| 360 | board of administration may appoint other officers and grant |
| 361 | them the duties it deems appropriate. Unless otherwise provided |
| 362 | in the bylaws, the officers shall serve without compensation and |
| 363 | at the pleasure of the board of administration. Unless otherwise |
| 364 | provided in the bylaws, the members of the board shall serve |
| 365 | without compensation. |
| 366 | 2. When a unit owner files a written inquiry by certified |
| 367 | mail with the board of administration, the board shall respond |
| 368 | in writing to the unit owner within 30 days of receipt of the |
| 369 | inquiry. The board's response shall either give a substantive |
| 370 | response to the inquirer, notify the inquirer that a legal |
| 371 | opinion has been requested, or notify the inquirer that advice |
| 372 | has been requested from the division. If the board requests |
| 373 | advice from the division, the board shall, within 10 days of its |
| 374 | receipt of the advice, provide in writing a substantive response |
| 375 | to the inquirer. If a legal opinion is requested, the board |
| 376 | shall, within 60 days after the receipt of the inquiry, provide |
| 377 | in writing a substantive response to the inquiry. The failure to |
| 378 | provide a substantive response to the inquiry as provided herein |
| 379 | precludes the board from recovering attorney's fees and costs in |
| 380 | any subsequent litigation, administrative proceeding, or |
| 381 | arbitration arising out of the inquiry. The association may |
| 382 | through its board of administration adopt reasonable rules and |
| 383 | regulations regarding the frequency and manner of responding to |
| 384 | unit owner inquiries, one of which may be that the association |
| 385 | is only obligated to respond to one written inquiry per unit in |
| 386 | any given 30-day period. In such a case, any additional inquiry |
| 387 | or inquiries must be responded to in the subsequent 30-day |
| 388 | period, or periods, as applicable. |
| 389 | (b) Quorum; voting requirements; proxies.-- |
| 390 | 1. Unless a lower number is provided in the bylaws, the |
| 391 | percentage of voting interests required to constitute a quorum |
| 392 | at a meeting of the members shall be a majority of the voting |
| 393 | interests. Unless otherwise provided in this chapter or in the |
| 394 | declaration, articles of incorporation, or bylaws, and except as |
| 395 | provided in subparagraph (d)3., decisions shall be made by |
| 396 | owners of a majority of the voting interests represented at a |
| 397 | meeting at which a quorum is present. |
| 398 | 2. Except as specifically otherwise provided herein, after |
| 399 | January 1, 1992, unit owners may not vote by general proxy, but |
| 400 | may vote by limited proxies substantially conforming to a |
| 401 | limited proxy form adopted by the division. Votes allocated to |
| 402 | units owned by the association may not be cast by proxy, ballot, |
| 403 | or otherwise for any purpose. Limited proxies and general |
| 404 | proxies may be used to establish a quorum. Limited proxies shall |
| 405 | be used for votes taken to waive or reduce reserves in |
| 406 | accordance with subparagraph (f)2.; for votes taken to waive the |
| 407 | financial reporting requirements of s. 718.111(13); for votes |
| 408 | taken to amend the declaration pursuant to s. 718.110; for votes |
| 409 | taken to amend the articles of incorporation or bylaws pursuant |
| 410 | to this section; and for any other matter for which this chapter |
| 411 | requires or permits a vote of the unit owners. Except as |
| 412 | provided in paragraph (d), after January 1, 1992, no proxy, |
| 413 | limited or general, shall be used in the election of board |
| 414 | members. General proxies may be used for other matters for which |
| 415 | limited proxies are not required, and may also be used in voting |
| 416 | for nonsubstantive changes to items for which a limited proxy is |
| 417 | required and given. Notwithstanding the provisions of this |
| 418 | subparagraph, unit owners may vote in person at unit owner |
| 419 | meetings. Nothing contained herein shall limit the use of |
| 420 | general proxies or require the use of limited proxies for any |
| 421 | agenda item or election at any meeting of a timeshare |
| 422 | condominium association. |
| 423 | 3. Any proxy given shall be effective only for the |
| 424 | specific meeting for which originally given and any lawfully |
| 425 | adjourned meetings thereof. In no event shall any proxy be valid |
| 426 | for a period longer than 90 days after the date of the first |
| 427 | meeting for which it was given. Every proxy is revocable at any |
| 428 | time at the pleasure of the unit owner executing it. |
| 429 | 4. A member of the board of administration or a committee |
| 430 | may submit in writing his or her agreement or disagreement with |
| 431 | any action taken at a meeting that the member did not attend. |
| 432 | This agreement or disagreement may not be used as a vote for or |
| 433 | against the action taken and may not be used for the purposes of |
| 434 | creating a quorum. |
| 435 | 5. When any of the board or committee members meet by |
| 436 | telephone conference, those board or committee members attending |
| 437 | by telephone conference may be counted toward obtaining a quorum |
| 438 | and may vote by telephone. A telephone speaker must be used so |
| 439 | that the conversation of those board or committee members |
| 440 | attending by telephone may be heard by the board or committee |
| 441 | members attending in person as well as by any unit owners |
| 442 | present at a meeting. |
| 443 | (c) Board of administration meetings.--Meetings of the |
| 444 | board of administration at which a quorum of the members is |
| 445 | present shall be open to all unit owners. Any unit owner may |
| 446 | tape record or videotape meetings of the board of |
| 447 | administration. The right to attend such meetings includes the |
| 448 | right to speak at such meetings with reference to all designated |
| 449 | agenda items. The division shall adopt reasonable rules |
| 450 | governing the tape recording and videotaping of the meeting. The |
| 451 | association may adopt written reasonable rules governing the |
| 452 | frequency, duration, and manner of unit owner statements. |
| 453 | Adequate notice of all meetings, which notice shall specifically |
| 454 | incorporate an identification of agenda items, shall be posted |
| 455 | conspicuously on the condominium property at least 48 continuous |
| 456 | hours preceding the meeting except in an emergency. Any item not |
| 457 | included on the notice may be taken up on an emergency basis by |
| 458 | at least a majority plus one of the members of the board or by a |
| 459 | petition of 20 percent of the unit owners. Such emergency action |
| 460 | shall be noticed and ratified at the next regular meeting of the |
| 461 | board. However, written notice of any meeting at which |
| 462 | nonemergency special assessments, or at which amendment to rules |
| 463 | regarding unit use, will be considered shall be mailed, |
| 464 | delivered, or electronically transmitted to the unit owners and |
| 465 | posted conspicuously on the condominium property not less than |
| 466 | 14 days prior to the meeting. Evidence of compliance with this |
| 467 | 14-day notice shall be made by an affidavit executed by the |
| 468 | person providing the notice and filed among the official records |
| 469 | of the association. Upon notice to the unit owners, the board |
| 470 | shall by duly adopted rule designate a specific location on the |
| 471 | condominium property or association property upon which all |
| 472 | notices of board meetings shall be posted. If there is no |
| 473 | condominium property or association property upon which notices |
| 474 | can be posted, notices of board meetings shall be mailed, |
| 475 | delivered, or electronically transmitted at least 14 days before |
| 476 | the meeting to the owner of each unit. In lieu of or in addition |
| 477 | to the physical posting of notice of any meeting of the board of |
| 478 | administration on the condominium property, the association may, |
| 479 | by reasonable rule, adopt a procedure for conspicuously posting |
| 480 | and repeatedly broadcasting the notice and the agenda on a |
| 481 | closed-circuit cable television system serving the condominium |
| 482 | association. However, if broadcast notice is used in lieu of a |
| 483 | notice posted physically on the condominium property, the notice |
| 484 | and agenda must be broadcast at least four times every broadcast |
| 485 | hour of each day that a posted notice is otherwise required |
| 486 | under this section. When broadcast notice is provided, the |
| 487 | notice and agenda must be broadcast in a manner and for a |
| 488 | sufficient continuous length of time so as to allow an average |
| 489 | reader to observe the notice and read and comprehend the entire |
| 490 | content of the notice and the agenda. Notice of any meeting in |
| 491 | which regular or special assessments against unit owners are to |
| 492 | be considered for any reason shall specifically state contain a |
| 493 | statement that assessments will be considered and the nature, |
| 494 | cost, and breakdown of any such assessments. Meetings of a |
| 495 | committee to take final action on behalf of the board or make |
| 496 | recommendations to the board regarding the association budget |
| 497 | are subject to the provisions of this paragraph. Meetings of a |
| 498 | committee that does not take final action on behalf of the board |
| 499 | or make recommendations to the board regarding the association |
| 500 | budget are subject to the provisions of this section, unless |
| 501 | those meetings are exempted from this section by the bylaws of |
| 502 | the association. Notwithstanding any other law, the requirement |
| 503 | that board meetings and committee meetings be open to the unit |
| 504 | owners is inapplicable to meetings between the board or a |
| 505 | committee and the association's attorney, with respect to |
| 506 | proposed or pending litigation, when the meeting is held for the |
| 507 | purpose of seeking or rendering legal advice. |
| 508 | (d) Unit owner meetings.-- |
| 509 | 1. There shall be an annual meeting of the unit owners |
| 510 | held at the location provided in the association bylaws; and, if |
| 511 | the bylaws are silent as to the location, the meeting shall be |
| 512 | held in the state within 30 miles of the condominium property. |
| 513 | Unless the bylaws provide otherwise, a vacancy on the board |
| 514 | caused by the expiration of a director's term shall be filled by |
| 515 | electing a new board member, and the election shall be by secret |
| 516 | ballot; however, if the number of vacancies equals or exceeds |
| 517 | the number of candidates, no election is required. If there is |
| 518 | no provision in the bylaws for terms of the members of the |
| 519 | board, the terms of all members of the board shall expire upon |
| 520 | the election of their successors at the annual meeting. Any unit |
| 521 | owner desiring to be a candidate for board membership shall |
| 522 | comply with subparagraph 3. A person is not eligible for board |
| 523 | membership if that person who has been convicted of any felony |
| 524 | by any court of record in the United States and who has not had |
| 525 | his or her right to vote restored pursuant to law in the |
| 526 | jurisdiction of his or her residence is not eligible for board |
| 527 | membership. The validity of an action by the board is not |
| 528 | affected if it is later determined that a member of the board is |
| 529 | ineligible for board membership due to having been convicted of |
| 530 | a felony. |
| 531 | 2. The bylaws shall provide the method of calling meetings |
| 532 | of unit owners, including annual meetings. Written notice, which |
| 533 | notice must include an agenda, shall be mailed, hand delivered, |
| 534 | or electronically transmitted to each unit owner at least 14 |
| 535 | days prior to the annual meeting and shall be posted in a |
| 536 | conspicuous place on the condominium property at least 14 |
| 537 | continuous days preceding the annual meeting. Upon notice to the |
| 538 | unit owners, the board shall by duly adopted rule designate a |
| 539 | specific location on the condominium property or association |
| 540 | property upon which all notices of unit owner meetings shall be |
| 541 | posted; however, if there is no condominium property or |
| 542 | association property upon which notices can be posted, this |
| 543 | requirement does not apply. In lieu of or in addition to the |
| 544 | physical posting of notice of any meeting of the unit owners on |
| 545 | the condominium property, the association may, by reasonable |
| 546 | rule, adopt a procedure for conspicuously posting and repeatedly |
| 547 | broadcasting the notice and the agenda on a closed-circuit cable |
| 548 | television system serving the condominium association. However, |
| 549 | if broadcast notice is used in lieu of a notice posted |
| 550 | physically on the condominium property, the notice and agenda |
| 551 | must be broadcast at least four times every broadcast hour of |
| 552 | each day that a posted notice is otherwise required under this |
| 553 | section. When broadcast notice is provided, the notice and |
| 554 | agenda must be broadcast in a manner and for a sufficient |
| 555 | continuous length of time so as to allow an average reader to |
| 556 | observe the notice and read and comprehend the entire content of |
| 557 | the notice and the agenda. Unless a unit owner waives in writing |
| 558 | the right to receive notice of the annual meeting, such notice |
| 559 | shall be hand delivered, mailed, or electronically transmitted |
| 560 | to each unit owner. Notice for meetings and notice for all other |
| 561 | purposes shall be mailed to each unit owner at the address last |
| 562 | furnished to the association by the unit owner, or hand |
| 563 | delivered to each unit owner. However, if a unit is owned by |
| 564 | more than one person, the association shall provide notice, for |
| 565 | meetings and all other purposes, to that one address which the |
| 566 | developer initially identifies for that purpose and thereafter |
| 567 | as one or more of the owners of the unit shall so advise the |
| 568 | association in writing, or if no address is given or the owners |
| 569 | of the unit do not agree, to the address provided on the deed of |
| 570 | record. An officer of the association, or the manager or other |
| 571 | person providing notice of the association meeting, shall |
| 572 | provide an affidavit or United States Postal Service certificate |
| 573 | of mailing, to be included in the official records of the |
| 574 | association affirming that the notice was mailed or hand |
| 575 | delivered, in accordance with this provision. |
| 576 | 3. The members of the board shall be elected by written |
| 577 | ballot or voting machine. Proxies shall in no event be used in |
| 578 | electing the board, either in general elections or elections to |
| 579 | fill vacancies caused by recall, resignation, or otherwise, |
| 580 | unless otherwise provided in this chapter. Not less than 60 days |
| 581 | before a scheduled election, the association or its |
| 582 | representative shall mail, deliver, or electronically transmit, |
| 583 | whether by separate association mailing or included in another |
| 584 | association mailing, delivery, or transmission, including |
| 585 | regularly published newsletters, to each unit owner entitled to |
| 586 | a vote, a first notice of the date of the election. Any unit |
| 587 | owner or other eligible person desiring to be a candidate for |
| 588 | the board must give written notice to the association or its |
| 589 | representative not less than 40 days before a scheduled |
| 590 | election. Together with the written notice and agenda as set |
| 591 | forth in subparagraph 2., the association or its representative |
| 592 | shall mail, deliver, or electronically transmit a second notice |
| 593 | of the election to all unit owners entitled to vote therein, |
| 594 | together with a ballot which shall list all candidates. Upon |
| 595 | request of a candidate, the association or its representative |
| 596 | shall include an information sheet, no larger than 81/2 inches |
| 597 | by 11 inches, which must be furnished by the candidate not less |
| 598 | than 35 days before the election, to be included with the |
| 599 | mailing, delivery, or transmission of the ballot, with the costs |
| 600 | of mailing, delivery, or electronic transmission and copying to |
| 601 | be borne by the association. An officer of the association, or |
| 602 | the manager or other person providing the first and second |
| 603 | notices, shall provide an affidavit or United States Postal |
| 604 | Service certificate of mailing, to be included in the official |
| 605 | records of the association, affirming that the notices were |
| 606 | mailed or hand delivered in accordance with this subparagraph. |
| 607 | The association or its representative is not liable for the |
| 608 | contents of the information sheets prepared by the candidates. |
| 609 | In order to reduce costs, the association may print or duplicate |
| 610 | the information sheets on both sides of the paper. The division |
| 611 | shall by rule establish voting procedures consistent with the |
| 612 | provisions contained herein, including rules establishing |
| 613 | procedures for giving notice by electronic transmission and |
| 614 | rules providing for the secrecy of ballots. All ballot envelopes |
| 615 | must be placed in a locked or sealed ballot drop box immediately |
| 616 | upon receipt, and the box shall not be opened in advance of the |
| 617 | election meeting. Elections shall be decided by a plurality of |
| 618 | those ballots cast. There shall be no quorum requirement; |
| 619 | however, at least 20 percent of the eligible voters must cast a |
| 620 | ballot in order to have a valid election of members of the |
| 621 | board. No unit owner shall permit any other person to vote his |
| 622 | or her ballot, except for a person acting under a specific power |
| 623 | of attorney, and any such ballots improperly cast shall be |
| 624 | deemed invalid, provided any unit owner who violates this |
| 625 | provision may be fined by the association in accordance with s. |
| 626 | 718.303. A unit owner who needs assistance in casting the ballot |
| 627 | for the reasons stated in s. 101.051 may obtain assistance in |
| 628 | casting the ballot. The regular election shall occur on the date |
| 629 | of the annual meeting. The provisions of this subparagraph shall |
| 630 | not apply to timeshare condominium associations. Notwithstanding |
| 631 | the provisions of this subparagraph, an election is not required |
| 632 | unless more candidates file notices of intent to run or are |
| 633 | nominated than board vacancies exist. |
| 634 | 4. Any approval by unit owners called for by this chapter |
| 635 | or the applicable declaration or bylaws, including, but not |
| 636 | limited to, the approval requirement in s. 718.111(8), shall be |
| 637 | made at a duly noticed meeting of unit owners and shall be |
| 638 | subject to all requirements of this chapter or the applicable |
| 639 | condominium documents relating to unit owner decisionmaking, |
| 640 | except that unit owners may take action by written agreement, |
| 641 | without meetings, on matters for which action by written |
| 642 | agreement without meetings is expressly allowed by the |
| 643 | applicable bylaws or declaration or any statute that provides |
| 644 | for such action. |
| 645 | 5. Unit owners may waive notice of specific meetings if |
| 646 | allowed by the applicable bylaws or declaration or any statute. |
| 647 | If authorized by the bylaws, notice of meetings of the board of |
| 648 | administration, unit owner meetings, except unit owner meetings |
| 649 | called to recall board members under paragraph (j), and |
| 650 | committee meetings may be given by electronic transmission to |
| 651 | unit owners who consent to receive notice by electronic |
| 652 | transmission. |
| 653 | 6. Unit owners shall have the right to participate in |
| 654 | meetings of unit owners with reference to all designated agenda |
| 655 | items. However, the association may adopt reasonable rules |
| 656 | governing the frequency, duration, and manner of unit owner |
| 657 | participation. |
| 658 | 7. Any unit owner may tape record or videotape a meeting |
| 659 | of the unit owners subject to reasonable rules adopted by the |
| 660 | division. |
| 661 | 8. Unless otherwise provided in the bylaws, any vacancy |
| 662 | occurring on the board before the expiration of a term may be |
| 663 | filled by the affirmative vote of the majority of the remaining |
| 664 | directors, even if the remaining directors constitute less than |
| 665 | a quorum, or by the sole remaining director. In the alternative, |
| 666 | a board may hold an election to fill the vacancy, in which case |
| 667 | the election procedures must conform to the requirements of |
| 668 | subparagraph 3. unless the association has opted out of the |
| 669 | statutory election process, in which case the bylaws of the |
| 670 | association control. Unless otherwise provided in the bylaws, a |
| 671 | board member appointed or elected under this section shall fill |
| 672 | the vacancy for the unexpired term of the seat being filled. |
| 673 | Filling vacancies created by recall is governed by paragraph (j) |
| 674 | and rules adopted by the division. |
| 675 |
|
| 676 | Notwithstanding subparagraphs (b)2. and (d)3., an association |
| 677 | may, by the affirmative vote of a majority of the total voting |
| 678 | interests, provide for different voting and election procedures |
| 679 | in its bylaws, which vote may be by a proxy specifically |
| 680 | delineating the different voting and election procedures. The |
| 681 | different voting and election procedures may provide for |
| 682 | elections to be conducted by limited or general proxy. |
| 683 | (e) Budget meeting.-- |
| 684 | 1. Any meeting at which a proposed annual budget of an |
| 685 | association will be considered by the board or unit owners shall |
| 686 | be open to all unit owners. At least 14 days prior to such a |
| 687 | meeting, the board shall hand deliver to each unit owner, mail |
| 688 | to each unit owner at the address last furnished to the |
| 689 | association by the unit owner, or electronically transmit to the |
| 690 | location furnished by the unit owner for that purpose a notice |
| 691 | of such meeting and a copy of the proposed annual budget. An |
| 692 | officer or manager of the association, or other person providing |
| 693 | notice of such meeting, shall execute an affidavit evidencing |
| 694 | compliance with such notice requirement, and such affidavit |
| 695 | shall be filed among the official records of the association. |
| 696 | 2.a. If a board adopts in any fiscal year an annual budget |
| 697 | which requires assessments against unit owners which exceed 115 |
| 698 | percent of assessments for the preceding fiscal year, the board |
| 699 | shall conduct a special meeting of the unit owners to consider a |
| 700 | substitute budget if the board receives, within 21 days after |
| 701 | adoption of the annual budget, a written request for a special |
| 702 | meeting from at least 10 percent of all voting interests. The |
| 703 | special meeting shall be conducted within 60 days after adoption |
| 704 | of the annual budget. At least 14 days prior to such special |
| 705 | meeting, the board shall hand deliver to each unit owner, or |
| 706 | mail to each unit owner at the address last furnished to the |
| 707 | association, a notice of the meeting. An officer or manager of |
| 708 | the association, or other person providing notice of such |
| 709 | meeting shall execute an affidavit evidencing compliance with |
| 710 | this notice requirement, and such affidavit shall be filed among |
| 711 | the official records of the association. Unit owners may |
| 712 | consider and adopt a substitute budget at the special meeting. A |
| 713 | substitute budget is adopted if approved by a majority of all |
| 714 | voting interests unless the bylaws require adoption by a greater |
| 715 | percentage of voting interests. If there is not a quorum at the |
| 716 | special meeting or a substitute budget is not adopted, the |
| 717 | annual budget previously adopted by the board shall take effect |
| 718 | as scheduled. |
| 719 | b. Any determination of whether assessments exceed 115 |
| 720 | percent of assessments for the prior fiscal year shall exclude |
| 721 | any authorized provision for reasonable reserves for repair or |
| 722 | replacement of the condominium property, anticipated expenses of |
| 723 | the association which the board does not expect to be incurred |
| 724 | on a regular or annual basis, or assessments for betterments to |
| 725 | the condominium property. |
| 726 | c. If the developer controls the board, assessments shall |
| 727 | not exceed 115 percent of assessments for the prior fiscal year |
| 728 | unless approved by a majority of all voting interests. |
| 729 | (f) Annual budget.-- |
| 730 | 1. The association shall prepare an annual budget of |
| 731 | estimated revenues and expenses. The adopted budget of the prior |
| 732 | fiscal year shall remain in effect until the association has |
| 733 | adopted a new budget for the current fiscal year. The proposed |
| 734 | annual budget of estimated revenues and common expenses shall be |
| 735 | detailed and shall show the amounts budgeted by accounts and |
| 736 | expense classifications, including, if applicable, but not |
| 737 | limited to, those expenses listed in s. 718.504(21). A |
| 738 | multicondominium association shall adopt a separate budget of |
| 739 | common expenses for each condominium the association operates |
| 740 | and shall adopt a separate budget of common expenses for the |
| 741 | association. In addition, if the association maintains limited |
| 742 | common elements with the cost to be shared only by those |
| 743 | entitled to use the limited common elements as provided for in |
| 744 | s. 718.113(1), the budget or a schedule attached thereto shall |
| 745 | show amounts budgeted therefor. If, after turnover of control of |
| 746 | the association to the unit owners, any of the expenses listed |
| 747 | in s. 718.504(21) are not applicable, they need not be listed. |
| 748 | 2. In addition to annual operating expenses, the budget |
| 749 | shall include reserve accounts for capital expenditures and |
| 750 | deferred maintenance. These accounts shall include, but are not |
| 751 | limited to, roof replacement, building painting, and pavement |
| 752 | resurfacing, regardless of the amount of deferred maintenance |
| 753 | expense or replacement cost, and for any other item for which |
| 754 | the deferred maintenance expense or replacement cost exceeds |
| 755 | $10,000. The amount to be reserved shall be computed by means of |
| 756 | a formula which is based upon estimated remaining useful life |
| 757 | and estimated replacement cost or deferred maintenance expense |
| 758 | of each reserve item. The association may adjust replacement |
| 759 | reserve assessments annually to take into account any changes in |
| 760 | estimates or extension of the useful life of a reserve item |
| 761 | caused by deferred maintenance. This subsection does not apply |
| 762 | to an adopted budget in which the members of an association have |
| 763 | determined, by a majority vote at a duly called meeting of the |
| 764 | association, to provide no reserves or less reserves than |
| 765 | required by this subsection. However, prior to turnover of |
| 766 | control of an association by a developer to unit owners other |
| 767 | than a developer pursuant to s. 718.301, the developer may vote |
| 768 | to waive the reserves or reduce the funding of reserves for the |
| 769 | first 2 fiscal years of the association's operation, beginning |
| 770 | with the fiscal year in which the initial declaration is |
| 771 | recorded, after which time reserves may be waived or reduced |
| 772 | only upon the vote of a majority of all nondeveloper voting |
| 773 | interests voting in person or by limited proxy at a duly called |
| 774 | meeting of the association. If a meeting of the unit owners has |
| 775 | been called to determine whether to waive or reduce the funding |
| 776 | of reserves, and no such result is achieved or a quorum is not |
| 777 | attained, the reserves as included in the budget shall go into |
| 778 | effect. After the turnover, the developer may vote its voting |
| 779 | interest to waive or reduce the funding of reserves. |
| 780 | 3. Reserve funds and any interest accruing thereon shall |
| 781 | remain in the reserve account or accounts, and shall be used |
| 782 | only for authorized reserve expenditures unless their use for |
| 783 | other purposes is approved in advance by a majority vote at a |
| 784 | duly called meeting of the association. Prior to turnover of |
| 785 | control of an association by a developer to unit owners other |
| 786 | than the developer pursuant to s. 718.301, the developer- |
| 787 | controlled association shall not vote to use reserves for |
| 788 | purposes other than that for which they were intended without |
| 789 | the approval of a majority of all nondeveloper voting interests, |
| 790 | voting in person or by limited proxy at a duly called meeting of |
| 791 | the association. |
| 792 | 4. The only voting interests which are eligible to vote on |
| 793 | questions that involve waiving or reducing the funding of |
| 794 | reserves, or using existing reserve funds for purposes other |
| 795 | than purposes for which the reserves were intended, are the |
| 796 | voting interests of the units subject to assessment to fund the |
| 797 | reserves in question. The face of all ballots that involve |
| 798 | questions relating to waiving or reducing the funding of |
| 799 | reserves or using existing reserve funds for purposes other than |
| 800 | purposes for which the reserves were intended shall contain the |
| 801 | following statement in capitalized, bold letters in a font size |
| 802 | larger than any other used on the face of the ballot: WAIVING OF |
| 803 | RESERVES, IN WHOLE OR IN PART, OR ALLOWING ALTERNATE USES OF |
| 804 | EXISTING RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT |
| 805 | OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE RESERVE |
| 806 | ITEMS. |
| 807 | 5. A vote to provide for no reserves or a percentage of |
| 808 | reserves shall be made at the annual meeting of the unit owners |
| 809 | called under paragraph (d). The division shall adopt the form |
| 810 | for the ballot for no reserves and a percentage of reserves. |
| 811 | 6. Notwithstanding subparagraph 3., the association after |
| 812 | turnover of control of the association may, in case of a |
| 813 | catastrophic event, use reserve funds for nonscheduled purposes |
| 814 | to mitigate further damage to units or common elements or to |
| 815 | make the condominium accessible for repairs. |
| 816 | (g) Assessments.--The manner of collecting from the unit |
| 817 | owners their shares of the common expenses shall be stated in |
| 818 | the bylaws. Assessments shall be made against units not less |
| 819 | frequently than quarterly in an amount which is not less than |
| 820 | that required to provide funds in advance for payment of all of |
| 821 | the anticipated current operating expenses and for all of the |
| 822 | unpaid operating expenses previously incurred. Nothing in this |
| 823 | paragraph shall preclude the right of an association to |
| 824 | accelerate assessments of an owner delinquent in payment of |
| 825 | common expenses. Accelerated assessments shall be due and |
| 826 | payable on the date the claim of lien is filed. Such accelerated |
| 827 | assessments shall include the amounts due for the remainder of |
| 828 | the budget year in which the claim of lien was filed. |
| 829 | (h) Amendment of bylaws.-- |
| 830 | 1. The method by which the bylaws may be amended |
| 831 | consistent with the provisions of this chapter shall be stated. |
| 832 | If the bylaws fail to provide a method of amendment, the bylaws |
| 833 | may be amended if the amendment is approved by the owners of not |
| 834 | less than two-thirds of the voting interests. |
| 835 | 2. No bylaw shall be revised or amended by reference to |
| 836 | its title or number only. Proposals to amend existing bylaws |
| 837 | shall contain the full text of the bylaws to be amended; new |
| 838 | words shall be inserted in the text underlined, and words to be |
| 839 | deleted shall be lined through with hyphens. However, if the |
| 840 | proposed change is so extensive that this procedure would |
| 841 | hinder, rather than assist, the understanding of the proposed |
| 842 | amendment, it is not necessary to use underlining and hyphens as |
| 843 | indicators of words added or deleted, but, instead, a notation |
| 844 | must be inserted immediately preceding the proposed amendment in |
| 845 | substantially the following language: "Substantial rewording of |
| 846 | bylaw. See bylaw _____ for present text." |
| 847 | 3. Nonmaterial errors or omissions in the bylaw process |
| 848 | will not invalidate an otherwise properly promulgated amendment. |
| 849 | (i) Transfer fees.--No charge shall be made by the |
| 850 | association or any body thereof in connection with the sale, |
| 851 | mortgage, lease, sublease, or other transfer of a unit unless |
| 852 | the association is required to approve such transfer and a fee |
| 853 | for such approval is provided for in the declaration, articles, |
| 854 | or bylaws. Any such fee may be preset, but in no event may such |
| 855 | fee exceed $100 per applicant other than husband/wife or |
| 856 | parent/dependent child, which are considered one applicant. |
| 857 | However, if the lease or sublease is a renewal of a lease or |
| 858 | sublease with the same lessee or sublessee, no charge shall be |
| 859 | made. The foregoing notwithstanding, an association may, if the |
| 860 | authority to do so appears in the declaration or bylaws, require |
| 861 | that a prospective lessee place a security deposit, in an amount |
| 862 | not to exceed the equivalent of 1 month's rent, into an escrow |
| 863 | account maintained by the association. The security deposit |
| 864 | shall protect against damages to the common elements or |
| 865 | association property. Payment of interest, claims against the |
| 866 | deposit, refunds, and disputes under this paragraph shall be |
| 867 | handled in the same fashion as provided in part II of chapter |
| 868 | 83. |
| 869 | (j) Recall of board members.--Subject to the provisions of |
| 870 | s. 718.301, any member of the board of administration may be |
| 871 | recalled and removed from office with or without cause by the |
| 872 | vote or agreement in writing by a majority of all the voting |
| 873 | interests. A special meeting of the unit owners to recall a |
| 874 | member or members of the board of administration may be called |
| 875 | by 10 percent of the voting interests giving notice of the |
| 876 | meeting as required for a meeting of unit owners, and the notice |
| 877 | shall state the purpose of the meeting. Electronic transmission |
| 878 | may not be used as a method of giving notice of a meeting called |
| 879 | in whole or in part for this purpose. |
| 880 | 1. If the recall is approved by a majority of all voting |
| 881 | interests by a vote at a meeting, the recall will be effective |
| 882 | as provided herein. The board shall duly notice and hold a board |
| 883 | meeting within 5 full business days of the adjournment of the |
| 884 | unit owner meeting to recall one or more board members. At the |
| 885 | meeting, the board shall either certify the recall, in which |
| 886 | case such member or members shall be recalled effective |
| 887 | immediately and shall turn over to the board within 5 full |
| 888 | business days any and all records and property of the |
| 889 | association in their possession, or shall proceed as set forth |
| 890 | in subparagraph 3. |
| 891 | 2. If the proposed recall is by an agreement in writing by |
| 892 | a majority of all voting interests, the agreement in writing or |
| 893 | a copy thereof shall be served on the association by certified |
| 894 | mail or by personal service in the manner authorized by chapter |
| 895 | 48 and the Florida Rules of Civil Procedure. The board of |
| 896 | administration shall duly notice and hold a meeting of the board |
| 897 | within 5 full business days after receipt of the agreement in |
| 898 | writing. At the meeting, the board shall either certify the |
| 899 | written agreement to recall a member or members of the board, in |
| 900 | which case such member or members shall be recalled effective |
| 901 | immediately and shall turn over to the board within 5 full |
| 902 | business days any and all records and property of the |
| 903 | association in their possession, or proceed as described in |
| 904 | subparagraph 3. |
| 905 | 3. If the board determines not to certify the written |
| 906 | agreement to recall a member or members of the board, or does |
| 907 | not certify the recall by a vote at a meeting, the board shall, |
| 908 | within 5 full business days after the meeting, file with the |
| 909 | division a petition for arbitration pursuant to the procedures |
| 910 | in s. 718.1255. For the purposes of this section, the unit |
| 911 | owners who voted at the meeting or who executed the agreement in |
| 912 | writing shall constitute one party under the petition for |
| 913 | arbitration. If the arbitrator certifies the recall as to any |
| 914 | member or members of the board, the recall will be effective |
| 915 | upon mailing of the final order of arbitration to the |
| 916 | association. If the association fails to comply with the order |
| 917 | of the arbitrator, the division may take action pursuant to s. |
| 918 | 718.501. Any member or members so recalled shall deliver to the |
| 919 | board any and all records of the association in their possession |
| 920 | within 5 full business days of the effective date of the recall. |
| 921 | 4. If the board fails to duly notice and hold a board |
| 922 | meeting within 5 full business days of service of an agreement |
| 923 | in writing or within 5 full business days of the adjournment of |
| 924 | the unit owner recall meeting, the recall shall be deemed |
| 925 | effective and the board members so recalled shall immediately |
| 926 | turn over to the board any and all records and property of the |
| 927 | association. |
| 928 | 5. If a vacancy occurs on the board as a result of a |
| 929 | recall and less than a majority of the board members are |
| 930 | removed, the vacancy may be filled by the affirmative vote of a |
| 931 | majority of the remaining directors, notwithstanding any |
| 932 | provision to the contrary contained in this subsection. If |
| 933 | vacancies occur on the board as a result of a recall and a |
| 934 | majority or more of the board members are removed, the vacancies |
| 935 | shall be filled in accordance with procedural rules to be |
| 936 | adopted by the division, which rules need not be consistent with |
| 937 | this subsection. The rules must provide procedures governing the |
| 938 | conduct of the recall election as well as the operation of the |
| 939 | association during the period after a recall but prior to the |
| 940 | recall election. |
| 941 | (k) Arbitration.--There shall be a provision for mandatory |
| 942 | nonbinding arbitration as provided for in s. 718.1255. |
| 943 | (l) Certificate of compliance.--There shall be a provision |
| 944 | that a certificate of compliance from a licensed electrical |
| 945 | contractor or electrician may be accepted by the association's |
| 946 | board as evidence of compliance of the condominium units with |
| 947 | the applicable fire and life safety code. Notwithstanding the |
| 948 | provisions of chapter 633 or of any other code, statute, |
| 949 | ordinance, administrative rule, or regulation, or any |
| 950 | interpretation of the foregoing, an association, condominium, or |
| 951 | unit owner is not obligated to retrofit the common elements or |
| 952 | units of a residential condominium with a fire sprinkler system |
| 953 | or other engineered lifesafety system in a building that has |
| 954 | been certified for occupancy by the applicable governmental |
| 955 | entity, if the unit owners have voted to forego such |
| 956 | retrofitting and engineered lifesafety system by the affirmative |
| 957 | vote of two-thirds of all voting interests in the affected |
| 958 | condominium. However, a condominium association may not vote to |
| 959 | forego the retrofitting with a fire sprinkler system of common |
| 960 | areas in a high-rise building. For purposes of this subsection, |
| 961 | the term "high-rise building" means a building that is greater |
| 962 | than 75 feet in height where the building height is measured |
| 963 | from the lowest level of fire department access to the floor of |
| 964 | the highest occupiable story. For purposes of this subsection, |
| 965 | the term "common areas" means any enclosed hallway, corridor, |
| 966 | lobby, stairwell, or entryway. In no event shall the local |
| 967 | authority having jurisdiction require completion of retrofitting |
| 968 | of common areas with a sprinkler system before the end of 2014. |
| 969 | 1. A vote to forego retrofitting may be obtained by |
| 970 | limited proxy or by a ballot personally cast at a duly called |
| 971 | membership meeting, or by execution of a written consent by the |
| 972 | member, and shall be effective upon the recording of a |
| 973 | certificate attesting to such vote in the public records of the |
| 974 | county where the condominium is located. The association shall |
| 975 | mail, hand deliver, or electronically transmit to each unit |
| 976 | owner written notice at least 14 days prior to such membership |
| 977 | meeting in which the vote to forego retrofitting of the required |
| 978 | fire sprinkler system is to take place. Within 30 days after the |
| 979 | association's opt-out vote, notice of the results of the opt-out |
| 980 | vote shall be mailed, hand delivered, or electronically |
| 981 | transmitted to all unit owners. Evidence of compliance with this |
| 982 | 30-day notice shall be made by an affidavit executed by the |
| 983 | person providing the notice and filed among the official records |
| 984 | of the association. After such notice is provided to each owner, |
| 985 | a copy of such notice shall be provided by the current owner to |
| 986 | a new owner prior to closing and shall be provided by a unit |
| 987 | owner to a renter prior to signing a lease. |
| 988 | 2. As part of the information collected annually from |
| 989 | condominiums, the division shall require condominium |
| 990 | associations to report the membership vote and recording of a |
| 991 | certificate under this subsection and, if retrofitting has been |
| 992 | undertaken, the per-unit cost of such work. The division shall |
| 993 | annually report to the Division of State Fire Marshal of the |
| 994 | Department of Financial Services the number of condominiums that |
| 995 | have elected to forego retrofitting. |
| 996 | (m) Common elements; limited power to convey.-- |
| 997 | 1. With respect to condominiums created on or after |
| 998 | October 1, 1994, the bylaws shall include a provision granting |
| 999 | the association a limited power to convey a portion of the |
| 1000 | common elements to a condemning authority for the purpose of |
| 1001 | providing utility easements, right-of-way expansion, or other |
| 1002 | public purposes, whether negotiated or as a result of eminent |
| 1003 | domain proceedings. |
| 1004 | 2. In any case where the bylaws are silent as to the |
| 1005 | association's power to convey common elements as described in |
| 1006 | subparagraph 1., the bylaws shall be deemed to include the |
| 1007 | provision described in subparagraph 1. |
| 1008 | Section 3. Subsections (6) and (7) are added to section |
| 1009 | 718.113, Florida Statutes, to read: |
| 1010 | 718.113 Maintenance; limitation upon improvement; display |
| 1011 | of flag; hurricane shutters; display of religious decorations.-- |
| 1012 | (6) Every 5 years, each board of administration shall have |
| 1013 | the condominium buildings inspected by a professional engineer |
| 1014 | or professional architect registered in the state for the |
| 1015 | purposes of determining whether the buildings are structurally |
| 1016 | and electrically safe and determining any immediate maintenance |
| 1017 | required as well as any long-term maintenance necessary in the |
| 1018 | form of a long-term maintenance plan. The long-term maintenance |
| 1019 | plan shall include an executive summary that shall be |
| 1020 | distributed to all unit owners. The engineer or architect shall |
| 1021 | provide a report indicating the manner and type of inspection |
| 1022 | forming the basis for the report and description of any matters |
| 1023 | identified as requiring remedial action. The report shall become |
| 1024 | an official record of the association and be provided to the |
| 1025 | members upon request pursuant to s. 718.111(12). |
| 1026 | (7) The board of administration may not adopt any rule or |
| 1027 | regulation impairing any rights guaranteed by the First |
| 1028 | Amendment to the Constitution of the United States or s. 3, Art. |
| 1029 | I of the Florida Constitution, including, but not limited to, |
| 1030 | the free exercise of religion, nor may any rules or regulations |
| 1031 | conflict with the provisions of this chapter or the condominium |
| 1032 | instruments. A rule or regulation may not prohibit any |
| 1033 | reasonable accommodation for religious practices, including the |
| 1034 | attachment of religiously mandated objects to the front-door |
| 1035 | area of a condominium unit. |
| 1036 | Section 4. Section 718.1224, Florida Statutes, is created |
| 1037 | to read: |
| 1038 | 718.1224 Prohibition against SLAPP suits.-- |
| 1039 | (1) It is the intent of the Legislature to protect the |
| 1040 | right of condominium unit owners to exercise their rights to |
| 1041 | instruct their representatives and petition for redress of |
| 1042 | grievances before the various governmental entities of this |
| 1043 | state as protected by the First Amendment to the United States |
| 1044 | Constitution and s. 5, Art. I of the State Constitution. The |
| 1045 | Legislature recognizes that strategic lawsuits against public |
| 1046 | participation, or "SLAPP suits" as they are typically referred |
| 1047 | to, have occurred when association members are sued by |
| 1048 | individuals, business entities, or governmental entities arising |
| 1049 | out of a condominium unit owner's appearance and presentation |
| 1050 | before a governmental entity on matters related to the |
| 1051 | condominium association. However, it is the public policy of |
| 1052 | this state that governmental entities, business organizations, |
| 1053 | and individuals not engage in SLAPP suits, because such actions |
| 1054 | are inconsistent with the right of condominium unit owners to |
| 1055 | participate in the state's institutions of government. |
| 1056 | Therefore, the Legislature finds and declares that prohibiting |
| 1057 | such lawsuits by governmental entities, business entities, and |
| 1058 | individuals against condominium unit owners who address matters |
| 1059 | concerning their condominium association will preserve this |
| 1060 | fundamental state policy, preserve the constitutional rights of |
| 1061 | condominium unit owners, and ensure the continuation of |
| 1062 | representative government in this state. It is the intent of the |
| 1063 | Legislature that such lawsuits be expeditiously disposed of by |
| 1064 | the courts. As used in this subsection, the term "governmental |
| 1065 | entity" means the state, including the executive, legislative, |
| 1066 | and judicial branches of government; the independent |
| 1067 | establishments of the state, counties, municipalities, |
| 1068 | districts, authorities, boards, or commissions; or any agencies |
| 1069 | of these branches which are subject to chapter 286. |
| 1070 | (2) A governmental entity, business organization, or |
| 1071 | individual in this state may not file or cause to be filed |
| 1072 | through its employees or agents any lawsuit, cause of action, |
| 1073 | claim, cross-claim, or counterclaim against a condominium unit |
| 1074 | owner without merit and solely because such condominium unit |
| 1075 | owner has exercised the right to instruct his or her |
| 1076 | representatives or the right to petition for redress of |
| 1077 | grievances before the various governmental entities of this |
| 1078 | state, as protected by the First Amendment to the United States |
| 1079 | Constitution and s. 5, Art. I of the State Constitution. |
| 1080 | (3) A condominium unit owner sued by a governmental |
| 1081 | entity, business organization, or individual in violation of |
| 1082 | this section has a right to an expeditious resolution of a claim |
| 1083 | that the suit is in violation of this section. A condominium |
| 1084 | unit owner may petition the court for an order dismissing the |
| 1085 | action or granting final judgment in favor of that condominium |
| 1086 | unit owner. The petitioner may file a motion for summary |
| 1087 | judgment, together with supplemental affidavits, seeking a |
| 1088 | determination that the governmental entity's, business |
| 1089 | organization's, or individual's lawsuit has been brought in |
| 1090 | violation of this section. The governmental entity, business |
| 1091 | organization, or individual shall thereafter file its response |
| 1092 | and any supplemental affidavits. As soon as practicable, the |
| 1093 | court shall set a hearing on the petitioner's motion, which |
| 1094 | shall be held at the earliest possible time after the filing of |
| 1095 | the governmental entity's, business organization's, or |
| 1096 | individual's response. The court may award the condominium unit |
| 1097 | owner sued by the governmental entity, business organization, or |
| 1098 | individual actual damages arising from the governmental |
| 1099 | entity's, individual's, or business organization's violation of |
| 1100 | this section. A court may treble the damages awarded to a |
| 1101 | prevailing condominium unit owner and shall state the basis for |
| 1102 | the treble damages award in its judgment. The court shall award |
| 1103 | the prevailing party reasonable attorney fees and costs incurred |
| 1104 | in connection with a claim that an action was filed in violation |
| 1105 | of this section. |
| 1106 | (4) Condominium associations may not expend association |
| 1107 | funds in prosecuting a SLAPP suit against a condominium unit |
| 1108 | owner. |
| 1109 | Section 5. This act shall take effect July 1, 2008. |