CS/CS/CS/HB 27

1	A bill to be entitled
2	An act relating to residential properties; amending s.
3	718.111, F.S.; requiring that association access to a unit
4	must be by two persons, one of whom must be a board member
5	or manager or employee of the association; providing an
6	exception for emergencies; amending s. 718.112, F.S.;
7	revising notice requirements for board of administration
8	meetings; requiring each newly elected director to certify
9	to the secretary of the association that he or she has
10	read the association's declarations of covenants and
11	restrictions, articles of incorporation, bylaws, and
12	current written policies and will work to uphold such
13	documents and policies to the best of his or her ability;
14	providing that a failure to timely file the statement
15	automatically disqualifies the director from service on
16	the association's board of directors; requiring the
17	secretary of the association to retain a director's
18	certification for inspection by the members for a
19	specified period of years after a director's election;
20	amending s. 718.1265, F.S.; limiting the exercise of
21	specified special powers unless a certain number of units
22	are rendered uninhabitable; amending s. 718.303, F.S.;
23	revising provisions relating to levy of fines; amending s.
24	720.303, F.S.; revising provisions relating to homeowners'
25	association board meetings, inspection and copying of
26	records, reserve accounts of budgets, and recall of
27	directors; prohibiting a salary or compensation for
28	certain association personnel; providing exceptions;
29	amending s. 720.305, F.S.; authorizing fines assessed
30	against members which exceed a certain amount to become a
31	lien against a parcel; amending s. 720.306, F.S.;
32	providing requirements for secret ballots; requiring newly
33	elected members of a board of directors to make certain
34	certifications in writing to the association; providing
35	for disqualification for failure to make such
36	certifications; requiring an association to retain
37	certifications for a specified time; amending s. 720.401,
38	F.S.; requiring that the disclosure summary to prospective
39	parcel owners include additional provisions; amending s.
40	34.01, F.S.; correcting a cross-reference to conform to
41	changes made by the act; amending s. 720.302, F.S.;
42	correcting a cross-reference to conform to changes made by
43	the act; establishing legislative intent; repealing s.
44	720.311, F.S., relating to a procedure for dispute
45	resolution in homeowners' associations; providing that
46	dispute resolution cases pending on the date of repeal
47	will continue under the repealed provisions; creating part
48	IV of ch. 720, F.S., relating to dispute resolution;
49	creating s. 720.501, F.S.; providing a short title;
50	creating s. 720.502, F.S.; providing legislative findings;
51	creating s. 720.503, F.S.; setting applicability of
52	provisions for mediation and arbitration applicable to
53	disputes in homeowners' associations; creating exceptions;
54	providing applicability; tolling applicable statutes of
55	limitations; creating s. 720.504, F.S.; requiring that the
56	notice of dispute be delivered before referral to
57	mediation or arbitration; creating s. 720.505, F.S.;
58	creating a statutory notice form for referral to
59	mediation; requiring delivery by certified mail or
60	personal delivery; setting deadlines; requiring parties to
61	share costs; requiring the selection of a mediator and
62	times to meet; providing penalties for failure to mediate;
63	creating s. 720.506, F.S.; creating an opt-out provision;
64	creating s. 720.507, F.S.; creating a statutory notice
65	form for referral to arbitration; requiring delivery by
66	certified mail or personal delivery; setting deadlines;
67	requiring parties to share costs; requiring the selection
68	of an arbitrator and times to meet; providing penalties
69	for failure to arbitrate; creating s. 720.508, F.S.;
70	providing for rules of procedure; providing for
71	confidentiality; creating s. 720.509, F.S.; setting
72	qualifications for mediators and arbitrators; creating s.
73	720.510, F.S.; providing for enforcement of mediation
74	agreements and arbitration awards; amending s. 718.103,
75	F.S.; expanding the definition of "developer" to include a
76	bulk assignee or bulk buyer; amending s. 718.301, F.S.;
77	revising conditions under which unit owners other than the
78	developer may elect not less than a majority of the
79	members of the board of administration of an association;
80	creating part VII of ch. 718, F.S.; providing a short
81	title; providing legislative findings and intent; defining
82	the terms "bulk assignee" and "bulk buyer"; providing for
83	the assignment of developer rights by a bulk assignee;
84	specifying liabilities of bulk assignees and bulk buyers;
85	providing exceptions; providing additional
86	responsibilities of bulk assignees and bulk buyers;
87	authorizing certain entities to assign developer rights to
88	a bulk assignee; limiting the number of bulk assignees at
89	any given time; providing for the transfer of control of a
90	board of administration; providing effects of such
91	transfer on parcels acquired by a bulk assignee; providing
92	obligations of a bulk assignee upon the transfer of
93	control of a board of administration; requiring that a
94	bulk assignee certify certain information in writing;
95	providing for the resolution of a conflict between
96	specified provisions of state law; providing that the
97	failure of a bulk assignee or bulk buyer to comply with
98	specified provisions of state law results in the loss of
99	certain protections and exemptions; requiring that a bulk
100	assignee or bulk buyer file certain information with the
101	Division of Florida Condominiums, Timeshares, and Mobile
102	Homes of the Department of Business and Professional
103	Regulation before offering any units for sale or lease in
104	excess of a specified term; requiring that a copy of such
105	information be provided to a prospective purchaser;
106	requiring that certain contracts and disclosure statements
107	contain specified statements; requiring that a bulk
108	assignee or bulk buyer comply with certain disclosure
109	requirements; prohibiting a bulk assignee from taking
110	certain actions on behalf of an association while the bulk
111	assignee is in control of the board of administration of
112	the association and requiring that such bulk assignee
113	comply with certain requirements; requiring that a bulk
114	assignee or bulk buyer comply with certain requirements
115	regarding certain contracts; providing unit owners with
116	specified protections regarding certain contracts;
117	requiring that a bulk buyer comply with certain
118	requirements regarding the transfer of a unit; prohibiting
119	a person from being classified as a bulk assignee or bulk
120	buyer unless condominium parcels were acquired before a
121	specified date; providing for the determination of the
122	date of acquisition of a parcel; providing that the
123	assignment of developer rights to a bulk assignee does not
124	release a developer from certain liabilities; preserving
125	certain liabilities for certain parties; providing an
126	effective date.
127
128	Be It Enacted by the Legislature of the State of Florida:
129
130	Section 1.  Subsection (5) of section 718.111, Florida
131	Statutes, is amended to read:
132	718.111  The association.--
133	(5)  RIGHT OF ACCESS TO UNITS.--The association has the
134	irrevocable right of access to each unit during reasonable
135	hours, when necessary for the maintenance, repair, or
136	replacement of any common elements or of any portion of a unit
137	to be maintained by the association pursuant to the declaration
138	or as necessary to prevent damage to the common elements or to a
139	unit or units. Except in cases of emergency, the association
140	must give the unit owner advance written notice of not less than
141	24 hours of its intent to access the unit and such access must
142	be by two persons, one of whom must be a member of the board of
143	administration or a manager or employee of the association and
144	one of whom must be an authorized representative of the
145	association. The identity of the authorized representative
146	seeking access to the unit shall be provided to the unit owner
147	prior to entering the unit.
148	Section 2.  Paragraphs (c) and (d) of subsection (2) of
149	section 718.112, Florida Statutes, are amended to read:
150	718.112  Bylaws.--
151	(2)  REQUIRED PROVISIONS.--The bylaws shall provide for the
152	following and, if they do not do so, shall be deemed to include
153	the following:
154	(c)  Board of administration meetings.--Meetings of the
155	board of administration at which a quorum of the members is
156	present shall be open to all unit owners. Any unit owner may
157	tape record or videotape meetings of the board of
158	administration. The right to attend such meetings includes the
159	right to speak at such meetings with reference to all designated
160	agenda items. The division shall adopt reasonable rules
161	governing the tape recording and videotaping of the meeting. The
162	association may adopt written reasonable rules governing the
163	frequency, duration, and manner of unit owner statements.
164	Adequate notice of all meetings, which notice shall specifically
165	incorporate an identification of agenda items, shall be posted
166	conspicuously on the condominium property at least 48 continuous
167	hours preceding the meeting except in an emergency. If 20
168	percent of the voting interests petition the board to address an
169	item of business, the board shall at its next regular board
170	meeting or at a special meeting of the board, but not later than
171	60 days after the receipt of the petition, place the item on the
172	agenda. Any item not included on the notice may be taken up on
173	an emergency basis by at least a majority plus one of the
174	members of the board. Such emergency action shall be noticed and
175	ratified at the next regular meeting of the board. However,
176	written notice of any meeting at which nonemergency special
177	assessments, or at which amendment to rules regarding unit use,
178	will be considered shall be mailed, delivered, or electronically
179	transmitted to the unit owners and posted conspicuously on the
180	condominium property not less than 14 days prior to the meeting.
181	Evidence of compliance with this 14-day notice shall be made by
182	an affidavit executed by the person providing the notice and
183	filed among the official records of the association. Upon notice
184	to the unit owners, the board shall by duly adopted rule
185	designate a specific location on the condominium property or
186	association property upon which all notices of board meetings
187	shall be posted. If there is no condominium property or
188	association property upon which notices can be posted, notices
189	of board meetings shall be mailed, delivered, or electronically
190	transmitted at least 14 days before the meeting to the owner of
191	each unit. In lieu of or in addition to the physical posting of
192	notice of any meeting of the board of administration on the
193	condominium property, the association may, by reasonable rule,
194	adopt a procedure for conspicuously posting and repeatedly
195	broadcasting the notice and the agenda on a closed-circuit cable
196	television system serving the condominium association. However,
197	if broadcast notice is used in lieu of a notice posted
198	physically on the condominium property, the notice and agenda
199	must be broadcast at least four times every broadcast hour of
200	each day that a posted notice is otherwise required under this
201	section. When broadcast notice is provided, the notice and
202	agenda must be broadcast in a manner and for a sufficient
203	continuous length of time so as to allow an average reader to
204	observe the notice and read and comprehend the entire content of
205	the notice and the agenda. Notice of any meeting in which
206	regular or special assessments against unit owners are to be
207	considered for any reason shall specifically state that
208	assessments will be considered and the nature of, actual amount
209	of any bids or proposals for estimated cost, and description of
210	the purposes for such assessments. Meetings of a committee to
211	take final action on behalf of the board or make recommendations
212	to the board regarding the association budget are subject to the
213	provisions of this paragraph. Meetings of a committee that does
214	not take final action on behalf of the board or make
215	recommendations to the board regarding the association budget
216	are subject to the provisions of this section, unless those
217	meetings are exempted from this section by the bylaws of the
218	association. Notwithstanding any other law, the requirement that
219	board meetings and committee meetings be open to the unit owners
220	is inapplicable to meetings between the board or a committee and
221	the association's attorney, with respect to proposed or pending
222	litigation, when the meeting is held for the purpose of seeking
223	or rendering legal advice.
224	(d)  Unit owner meetings.--
225	1.  There shall be an annual meeting of the unit owners
226	held at the location provided in the association bylaws and, if
227	the bylaws are silent as to the location, the meeting shall be
228	held within 45 miles of the condominium property. However, such
229	distance requirement does not apply to an association governing
230	a timeshare condominium. Unless the bylaws provide otherwise, a
231	vacancy on the board caused by the expiration of a director's
232	term shall be filled by electing a new board member, and the
233	election shall be by secret ballot; however, if the number of
234	vacancies equals or exceeds the number of candidates, no
235	election is required. The terms of all members of the board
236	shall expire at the annual meeting and such board members may
237	stand for reelection unless otherwise permitted by the bylaws.
238	In the event that the bylaws permit staggered terms of no more
239	than 2 years and upon approval of a majority of the total voting
240	interests, the association board members may serve 2-year
241	staggered terms. If no person is interested in or demonstrates
242	an intention to run for the position of a board member whose
243	term has expired according to the provisions of this
244	subparagraph, such board member whose term has expired shall be
245	automatically reappointed to the board of administration and
246	need not stand for reelection. In a condominium association of
247	more than 10 units, coowners of a unit may not serve as members
248	of the board of directors at the same time. Any unit owner
249	desiring to be a candidate for board membership shall comply
250	with subparagraph 3. A person who has been suspended or removed
251	by the division under this chapter, or who is delinquent in the
252	payment of any fee or assessment as provided in paragraph (n),
253	is not eligible for board membership. A person who has been
254	convicted of any felony in this state or in a United States
255	District or Territorial Court, or who has been convicted of any
256	offense in another jurisdiction that would be considered a
257	felony if committed in this state, is not eligible for board
258	membership unless such felon's civil rights have been restored
259	for a period of no less than 5 years as of the date on which
260	such person seeks election to the board. The validity of an
261	action by the board is not affected if it is later determined
262	that a member of the board is ineligible for board membership
263	due to having been convicted of a felony.
264	2.  The bylaws shall provide the method of calling meetings
265	of unit owners, including annual meetings. Written notice, which
266	notice must include an agenda, shall be mailed, hand delivered,
267	or electronically transmitted to each unit owner at least 14
268	days prior to the annual meeting and shall be posted in a
269	conspicuous place on the condominium property at least 14
270	continuous days preceding the annual meeting. Upon notice to the
271	unit owners, the board shall by duly adopted rule designate a
272	specific location on the condominium property or association
273	property upon which all notices of unit owner meetings shall be
274	posted; however, if there is no condominium property or
275	association property upon which notices can be posted, this
276	requirement does not apply. In lieu of or in addition to the
277	physical posting of notice of any meeting of the unit owners on
278	the condominium property, the association may, by reasonable
279	rule, adopt a procedure for conspicuously posting and repeatedly
280	broadcasting the notice and the agenda on a closed-circuit cable
281	television system serving the condominium association. However,
282	if broadcast notice is used in lieu of a notice posted
283	physically on the condominium property, the notice and agenda
284	must be broadcast at least four times every broadcast hour of
285	each day that a posted notice is otherwise required under this
286	section. When broadcast notice is provided, the notice and
287	agenda must be broadcast in a manner and for a sufficient
288	continuous length of time so as to allow an average reader to
289	observe the notice and read and comprehend the entire content of
290	the notice and the agenda. Unless a unit owner waives in writing
291	the right to receive notice of the annual meeting, such notice
292	shall be hand delivered, mailed, or electronically transmitted
293	to each unit owner. Notice for meetings and notice for all other
294	purposes shall be mailed to each unit owner at the address last
295	furnished to the association by the unit owner, or hand
296	delivered to each unit owner. However, if a unit is owned by
297	more than one person, the association shall provide notice, for
298	meetings and all other purposes, to that one address which the
299	developer initially identifies for that purpose and thereafter
300	as one or more of the owners of the unit shall so advise the
301	association in writing, or if no address is given or the owners
302	of the unit do not agree, to the address provided on the deed of
303	record. An officer of the association, or the manager or other
304	person providing notice of the association meeting, shall
305	provide an affidavit or United States Postal Service certificate
306	of mailing, to be included in the official records of the
307	association affirming that the notice was mailed or hand
308	delivered, in accordance with this provision.
309	3.  The members of the board shall be elected by written
310	ballot or voting machine. Proxies shall in no event be used in
311	electing the board, either in general elections or elections to
312	fill vacancies caused by recall, resignation, or otherwise,
313	unless otherwise provided in this chapter. Not less than 60 days
314	before a scheduled election, the association shall mail,
315	deliver, or electronically transmit, whether by separate
316	association mailing or included in another association mailing,
317	delivery, or transmission, including regularly published
318	newsletters, to each unit owner entitled to a vote, a first
319	notice of the date of the election along with a certification
320	form provided by the division attesting that he or she has read
321	and understands, to the best of his or her ability, the
322	governing documents of the association and the provisions of
323	this chapter and any applicable rules. Any unit owner or other
324	eligible person desiring to be a candidate for the board must
325	give written notice to the association not less than 40 days
326	before a scheduled election. Together with the written notice
327	and agenda as set forth in subparagraph 2., the association
328	shall mail, deliver, or electronically transmit a second notice
329	of the election to all unit owners entitled to vote therein,
330	together with a ballot which shall list all candidates. Upon
331	request of a candidate, the association shall include an
332	information sheet, no larger than 81/2 inches by 11 inches,
333	which must be furnished by the candidate not less than 35 days
334	before the election, along with the signed certification form
335	provided for in this subparagraph, to be included with the
336	mailing, delivery, or transmission of the ballot, with the costs
337	of mailing, delivery, or electronic transmission and copying to
338	be borne by the association. The association is not liable for
339	the contents of the information sheets prepared by the
340	candidates. In order to reduce costs, the association may print
341	or duplicate the information sheets on both sides of the paper.
342	The division shall by rule establish voting procedures
343	consistent with the provisions contained herein, including rules
344	establishing procedures for giving notice by electronic
345	transmission and rules providing for the secrecy of ballots.
346	Elections shall be decided by a plurality of those ballots cast.
347	There shall be no quorum requirement; however, at least 20
348	percent of the eligible voters must cast a ballot in order to
349	have a valid election of members of the board. No unit owner
350	shall permit any other person to vote his or her ballot, and any
351	such ballots improperly cast shall be deemed invalid, provided
352	any unit owner who violates this provision may be fined by the
353	association in accordance with s. 718.303. A unit owner who
354	needs assistance in casting the ballot for the reasons stated in
355	s. 101.051 may obtain assistance in casting the ballot. The
356	regular election shall occur on the date of the annual meeting.
357	The provisions of this subparagraph shall not apply to timeshare
358	condominium associations. Notwithstanding the provisions of this
359	subparagraph, an election is not required unless more candidates
360	file notices of intent to run or are nominated than board
361	vacancies exist.
362	4.  Any approval by unit owners called for by this chapter
363	or the applicable declaration or bylaws, including, but not
364	limited to, the approval requirement in s. 718.111(8), shall be
365	made at a duly noticed meeting of unit owners and shall be
366	subject to all requirements of this chapter or the applicable
367	condominium documents relating to unit owner decisionmaking,
368	except that unit owners may take action by written agreement,
369	without meetings, on matters for which action by written
370	agreement without meetings is expressly allowed by the
371	applicable bylaws or declaration or any statute that provides
372	for such action.
373	5.  Unit owners may waive notice of specific meetings if
374	allowed by the applicable bylaws or declaration or any statute.
375	If authorized by the bylaws, notice of meetings of the board of
376	administration, unit owner meetings, except unit owner meetings
377	called to recall board members under paragraph (j), and
378	committee meetings may be given by electronic transmission to
379	unit owners who consent to receive notice by electronic
380	transmission.
381	6.  Unit owners shall have the right to participate in
382	meetings of unit owners with reference to all designated agenda
383	items. However, the association may adopt reasonable rules
384	governing the frequency, duration, and manner of unit owner
385	participation.
386	7.  Any unit owner may tape record or videotape a meeting
387	of the unit owners subject to reasonable rules adopted by the
388	division.
389	8.  Unless otherwise provided in the bylaws, any vacancy
390	occurring on the board before the expiration of a term may be
391	filled by the affirmative vote of the majority of the remaining
392	directors, even if the remaining directors constitute less than
393	a quorum, or by the sole remaining director. In the alternative,
394	a board may hold an election to fill the vacancy, in which case
395	the election procedures must conform to the requirements of
396	subparagraph 3. unless the association governs 10 units or less
397	and has opted out of the statutory election process, in which
398	case the bylaws of the association control. Unless otherwise
399	provided in the bylaws, a board member appointed or elected
400	under this section shall fill the vacancy for the unexpired term
401	of the seat being filled. Filling vacancies created by recall is
402	governed by paragraph (j) and rules adopted by the division.
403	9.  Within 30 days after being elected to the board of
404	directors, a new director shall certify in writing to the
405	secretary of the association that he or she has read the
406	association's declarations of covenants and restrictions,
407	articles of incorporation, bylaws, and current written policies,
408	that he or she will work to uphold such documents and policies
409	to the best of his or her ability, and that he or she will
410	faithfully discharge his or her fiduciary responsibility to the
411	association's members. Failure to timely file the statement
412	automatically disqualifies the director from service on the
413	association's board of directors. The secretary shall cause the
414	association to retain a director's certification for inspection
415	by the members for 5 years after a director's election. Failure
416	to have such certification on file does not affect the validity
417	of any appropriate action.
418
419	Notwithstanding subparagraphs (b)2. and (d)3., an association of
420	10 or fewer units may, by the affirmative vote of a majority of
421	the total voting interests, provide for different voting and
422	election procedures in its bylaws, which vote may be by a proxy
423	specifically delineating the different voting and election
424	procedures. The different voting and election procedures may
425	provide for elections to be conducted by limited or general
426	proxy.
427	Section 3.  Subsection (2) of section 718.1265, Florida
428	Statutes, is amended to read:
429	718.1265  Association emergency powers.--
430	(2)  The special powers authorized under subsection (1)
431	shall be limited to that time reasonably necessary to protect
432	the health, safety, and welfare of the association and the unit
433	owners and the unit owners' family members, tenants, guests,
434	agents, or invitees and shall be reasonably necessary to
435	mitigate further damage and make emergency repairs.
436	Additionally, unless 20 percent or more of the units are made
437	uninhabitable by the emergency, the special powers authorized
438	under subsection (1) shall only be exercised during the term of
439	the Governor's executive order or proclamation declaring the
440	state of emergency in the locale in which the condominium is
441	located.
442	Section 4.  Subsection (3) of section 718.303, Florida
443	Statutes, is amended, and subsections (4) and (5) are added to
444	that section, to read:
445	718.303  Obligations of owners; waiver; levy of fine
446	against unit by association.--
447	(3)  If a unit owner is delinquent for more than 90 days in
448	the payment of regular or special assessments or the declaration
449	or bylaws so provide, the association may suspend, for a
450	reasonable time, the right of a unit owner or a unit's occupant,
451	licensee, or invitee to use common elements, common facilities,
452	or any other association property. This subsection does not
453	apply to limited common elements intended to be used only by
454	that unit, common elements that must be used to access the unit,
455	utility services provided to the unit, parking spaces, or
456	elevators. The association may also levy reasonable fines
457	against a unit for the failure of the owner of the unit, or its
458	occupant, licensee, or invitee, to comply with any provision of
459	the declaration, the association bylaws, or reasonable rules of
460	the association. No fine will become a lien against a unit. A No
461	fine may not exceed $100 per violation. However, a fine may be
462	levied on the basis of each day of a continuing violation, with
463	a single notice and opportunity for hearing, provided that no
464	such fine shall in the aggregate exceed $1,000. A No fine may
465	not be levied and a suspension may not be imposed unless the
466	association first gives except after giving reasonable notice
467	and opportunity for a hearing to the unit owner and, if
468	applicable, its occupant, licensee, or invitee. The hearing must
469	be held before a committee of other unit owners who are neither
470	board members nor persons residing in a board member's
471	household. If the committee does not agree with the fine or
472	suspension, the fine or suspension may not be levied or imposed.
473	The provisions of this subsection do not apply to unoccupied
474	units.
475	(4)  The notice and hearing requirements of subsection (3)
476	do not apply to the imposition of suspensions or fines against a
477	unit owner or a unit's occupant, licensee, or invitee because of
478	the failure to pay any amounts due the association. If such a
479	fine or suspension is imposed, the association must levy the
480	fine or impose a reasonable suspension at a properly noticed
481	board meeting, and after the imposition of such fine or
482	suspension, the association must notify the unit owner and, if
483	applicable, the unit's occupant, licensee, or invitee by mail or
484	hand delivery.
485	(5)  If the declaration or bylaws so provide, an
486	association may also suspend the voting rights of a member due
487	to nonpayment of assessments, fines, or other charges payable to
488	the association which are delinquent in excess of 90 days
489	Section 5.  Paragraph (b) of subsection (2), paragraphs (a)
490	and (c) of subsection (5), paragraphs (b), (c), (d), (f), and
491	(g) of subsection (6), and paragraph (d) of subsection (10) of
492	section 720.303, Florida Statutes, are amended, and subsection
493	(12) is added to that section, to read:
494	720.303  Association powers and duties; meetings of board;
495	official records; budgets; financial reporting; association
496	funds; recalls.--
497	(2)  BOARD MEETINGS.--
498	(b)  Members have the right to attend all meetings of the
499	board and to speak on any matter placed on the agenda by
500	petition of the voting interests for at least 3 minutes. The
501	association may adopt written reasonable rules expanding the
502	right of members to speak and governing the frequency, duration,
503	and other manner of member statements, which rules must be
504	consistent with this paragraph and may include a sign-up sheet
505	for members wishing to speak. Notwithstanding any other law, the
506	requirement that board meetings and committee meetings be open
507	to the members is inapplicable to meetings between the board or
508	a committee to discuss proposed or pending litigation with and
509	the association's attorney, or with respect to meetings of the
510	board held for the purpose of discussing personnel matters are
511	not required to be open to the members.
512	(5)  INSPECTION AND COPYING OF RECORDS.--The official
513	records shall be maintained within the state and must be open to
514	inspection and available for photocopying by members or their
515	authorized agents at reasonable times and places within 10
516	business days after receipt of a written request for access.
517	This subsection may be complied with by having a copy of the
518	official records available for inspection or copying in the
519	community. If the association has a photocopy machine available
520	where the records are maintained, it must provide parcel owners
521	with copies on request during the inspection if the entire
522	request is limited to no more than 25 pages.
523	(a)  The failure of an association to provide access to the
524	records within 10 business days after receipt of a written
525	request submitted by certified mail, return receipt requested,
526	creates a rebuttable presumption that the association willfully
527	failed to comply with this subsection.
528	(c)  The association may adopt reasonable written rules
529	governing the frequency, time, location, notice, records to be
530	inspected, and manner of inspections, but may not require impose
531	a requirement that a parcel owner to demonstrate any proper
532	purpose for the inspection, state any reason for the inspection,
533	or limit a parcel owner's right to inspect records to less than
534	one 8-hour business day per month. The association may impose
535	fees to cover the costs of providing copies of the official
536	records, including, without limitation, the costs of copying.
537	The association may charge up to 50 cents per page for copies
538	made on the association's photocopier. If the association does
539	not have a photocopy machine available where the records are
540	kept, or if the records requested to be copied exceed 25 pages
541	in length, the association may have copies made by an outside
542	vendor or association management company personnel and may
543	charge the actual cost of copying, including any reasonable
544	costs involving personnel fees and charges at an hourly rate for
545	employee time to cover administrative costs to the association.
546	The association shall maintain an adequate number of copies of
547	the recorded governing documents, to ensure their availability
548	to members and prospective members. Notwithstanding the
549	provisions of this paragraph, the following records are shall
550	not be accessible to members or parcel owners:
551	1.  Any record protected by the lawyer-client privilege as
552	described in s. 90.502 and any record protected by the work-
553	product privilege, including, but not limited to, any record
554	prepared by an association attorney or prepared at the
555	attorney's express direction which reflects a mental impression,
556	conclusion, litigation strategy, or legal theory of the attorney
557	or the association and which was prepared exclusively for civil
558	or criminal litigation or for adversarial administrative
559	proceedings or which was prepared in anticipation of imminent
560	civil or criminal litigation or imminent adversarial
561	administrative proceedings until the conclusion of the
562	litigation or adversarial administrative proceedings.
563	2.  Information obtained by an association in connection
564	with the approval of the lease, sale, or other transfer of a
565	parcel.
566	3.  Disciplinary, health, insurance, and personnel records
567	of the association's employees.
568	4.  Medical records of parcel owners or community
569	residents.
570	(6)  BUDGETS.--
571	(b)  In addition to annual operating expenses, the budget
572	may include reserve accounts for capital expenditures and
573	deferred maintenance for which the association is responsible.
574	If reserve accounts are not established pursuant to paragraph
575	(d), funding of such reserves shall be limited to the extent
576	that the governing documents do not limit increases in
577	assessments, including reserves. If the budget of the
578	association includes reserve accounts established pursuant to
579	paragraph (d), such reserves shall be determined, maintained,
580	and waived in the manner provided in this subsection. Once an
581	association provides for reserve accounts pursuant to paragraph
582	(d) in the budget, the association shall thereafter determine,
583	maintain, and waive reserves in compliance with this subsection.
584	The provisions of this section do not preclude the termination
585	of a reserve account established pursuant to this paragraph upon
586	approval of a majority of the voting interests of the
587	association. Upon such approval, the terminating reserve account
588	shall be removed from the budget.
589	(c)1.  If the budget of the association does not provide
590	for reserve accounts pursuant to paragraph (d) governed by this
591	subsection and the association is responsible for the repair and
592	maintenance of capital improvements that may result in a special
593	assessment if reserves are not provided, each financial report
594	for the preceding fiscal year required by subsection (7) shall
595	contain the following statement in conspicuous type: THE BUDGET
596	OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE ACCOUNTS FOR
597	CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT MAY RESULT IN
598	SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE FOR RESERVE
599	ACCOUNTS PURSUANT TO THE PROVISIONS OF SECTION 720.303(6),
600	FLORIDA STATUTES, UPON OBTAINING THE APPROVAL OF NOT LESS THAN A
601	MAJORITY OF THE TOTAL VOTING INTERESTS OF THE ASSOCIATION BY
602	VOTE OF THE MEMBERS AT A MEETING OR BY WRITTEN CONSENT.
603	2.  If the budget of the association does provide for
604	funding accounts for deferred expenditures, including, but not
605	limited to, funds for capital expenditures and deferred
606	maintenance, but such accounts are not created or established
607	pursuant to paragraph (d), each financial report for the
608	preceding fiscal year required under subsection (7) must also
609	contain the following statement in conspicuous type: THE BUDGET
610	OF THE ASSOCIATION DOES PROVIDE FOR LIMITED VOLUNTARY DEFERRED
611	EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES AND
612	DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED IN
613	OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED TO
614	PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
615	FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
616	RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
617	ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
618	(d)  An association shall be deemed to have provided for
619	reserve accounts if when reserve accounts have been initially
620	established by the developer or if when the membership of the
621	association affirmatively elects to provide for reserves. If
622	reserve accounts are not initially provided for by the
623	developer, the membership of the association may elect to do so
624	upon the affirmative approval of not less than a majority of the
625	total voting interests of the association. Such approval may be
626	obtained attained by vote of the members at a duly called
627	meeting of the membership or by the upon a written consent of
628	executed by not less than a majority of the total voting
629	interests in the community. The approval action of the
630	membership shall state that reserve accounts shall be provided
631	for in the budget and shall designate the components for which
632	the reserve accounts are to be established. Upon approval by the
633	membership, the board of directors shall include provide for the
634	required reserve accounts for inclusion in the budget in the
635	next fiscal year following the approval and in each year
636	thereafter. Once established as provided in this subsection, the
637	reserve accounts shall be funded or maintained or shall have
638	their funding waived in the manner provided in paragraph (f).
639	(f)  After one or more Once a reserve account or reserve
640	accounts are established, the membership of the association,
641	upon a majority vote at a meeting at which a quorum is present,
642	may provide for no reserves or less reserves than required by
643	this section. If a meeting of the unit owners has been called to
644	determine whether to waive or reduce the funding of reserves and
645	no such result is achieved or a quorum is not present, the
646	reserves as included in the budget shall go into effect. After
647	the turnover, the developer may vote its voting interest to
648	waive or reduce the funding of reserves. Any vote taken pursuant
649	to this subsection to waive or reduce reserves is shall be
650	applicable only to one budget year.
651	(g)  Funding formulas for reserves authorized by this
652	section shall be based on either a separate analysis of each of
653	the required assets or a pooled analysis of two or more of the
654	required assets.
655	1.  If the association maintains separate reserve accounts
656	for each of the required assets, the amount of the contribution
657	to each reserve account is shall be the sum of the following two
658	calculations:
659	a.  The total amount necessary, if any, to bring a negative
660	component balance to zero.
661	b.  The total estimated deferred maintenance expense or
662	estimated replacement cost of the reserve component less the
663	estimated balance of the reserve component as of the beginning
664	of the period for which the budget will be in effect. The
665	remainder, if greater than zero, shall be divided by the
666	estimated remaining useful life of the component.
667
668	The formula may be adjusted each year for changes in estimates
669	and deferred maintenance performed during the year and may
670	include factors such as inflation and earnings on invested
671	funds.
672	2.  If the association maintains a pooled account of two or
673	more of the required reserve assets, the amount of the
674	contribution to the pooled reserve account as disclosed on the
675	proposed budget may shall not be less than that required to
676	ensure that the balance on hand at the beginning of the period
677	for which the budget will go into effect plus the projected
678	annual cash inflows over the remaining estimated useful life of
679	all of the assets that make up the reserve pool are equal to or
680	greater than the projected annual cash outflows over the
681	remaining estimated useful lives of all of the assets that make
682	up the reserve pool, based on the current reserve analysis. The
683	projected annual cash inflows may include estimated earnings
684	from investment of principal and accounts receivable minus the
685	allowance for doubtful accounts. The reserve funding formula may
686	shall not include any type of balloon payments.
687	(10)  RECALL OF DIRECTORS.--
688	(d)  If the board determines not to certify the written
689	agreement or written ballots to recall a director or directors
690	of the board or does not certify the recall by a vote at a
691	meeting, the board shall, within 5 full business days after the
692	meeting, initiate file with the department a petition for
693	binding arbitration pursuant to the applicable procedures in s.
694	720.507 ss. 718.112(2)(j) and 718.1255 and the rules adopted
695	thereunder. For the purposes of this section, the members who
696	voted at the meeting or who executed the agreement in writing
697	shall constitute one party under the petition for arbitration.
698	If the arbitrator certifies the recall as to any director or
699	directors of the board, the recall will be effective upon
700	mailing of the final order of arbitration to the association.
701	The director or directors so recalled shall deliver to the board
702	any and all records of the association in their possession
703	within 5 full business days after the effective date of the
704	recall.
705	(12)  COMPENSATION PROHIBITED.--A director, officer, or
706	committee member of the association may not receive directly or
707	indirectly any salary or compensation from the association for
708	the performance of duties as a director, officer, or committee
709	member and may not in any other way benefit financially from
710	service to the association. This subsection does not preclude:
711	(a)  Participation by such person in a financial benefit
712	accruing to all or a significant number of members as a result
713	of actions lawfully taken by the board or a committee of which
714	he or she is a member, including, but not limited to, routine
715	maintenance, repair, or replacement of community assets.
716	(b)  Reimbursement for out-of-pocket expenses incurred by
717	such person on behalf of the association, subject to approval in
718	accordance with procedures established by the association's
719	governing documents or, in the absence of such procedures, in
720	accordance with an approval process established by the board.
721	(c)  Any recovery of insurance proceeds derived from a
722	policy of insurance maintained by the association for the
723	benefit of its members.
724	(d)  Any fee or compensation authorized in the governing
725	documents.
726	(e)  Any fee or compensation authorized in advance by a
727	vote of a majority of the voting interests voting in person or
728	by proxy at a meeting of the members.
729	(f)  A developer or its representative from serving as a
730	director, officer, or committee member of the association and
731	benefiting financially from service to the association.
732	Section 6.  Subsection (2) of section 720.305, Florida
733	Statutes, is amended to read:
734	720.305  Obligations of members; remedies at law or in
735	equity; levy of fines and suspension of use rights.--
736	(2)  If the governing documents so provide, an association
737	may suspend, for a reasonable period of time, the rights of a
738	member or a member's tenants, guests, or invitees, or both, to
739	use common areas and facilities and may levy reasonable fines of
740	up to, not to exceed $100 per violation, against any member or
741	any tenant, guest, or invitee. A fine may be levied on the basis
742	of each day of a continuing violation, with a single notice and
743	opportunity for hearing, except that no such fine may shall
744	exceed $1,000 in the aggregate unless otherwise provided in the
745	governing documents. A fine of less than $1,000 may shall not
746	become a lien against a parcel. In any action to recover a fine,
747	the prevailing party is entitled to collect its reasonable
748	attorney's fees and costs from the nonprevailing party as
749	determined by the court.
750	(a)  A fine or suspension may not be imposed without notice
751	of at least 14 days' notice days to the person sought to be
752	fined or suspended and an opportunity for a hearing before a
753	committee of at least three members appointed by the board who
754	are not officers, directors, or employees of the association, or
755	the spouse, parent, child, brother, or sister of an officer,
756	director, or employee. If the committee, by majority vote, does
757	not approve a proposed fine or suspension, it may not be
758	imposed.
759	(b)  The requirements of this subsection do not apply to
760	the imposition of suspensions or fines upon any member because
761	of the failure of the member to pay assessments or other charges
762	when due if such action is authorized by the governing
763	documents.
764	(c)  Suspension of common-area-use rights do shall not
765	impair the right of an owner or tenant of a parcel to have
766	vehicular and pedestrian ingress to and egress from the parcel,
767	including, but not limited to, the right to park.
768	Section 7.  Subsections (8) and (9) of section 720.306,
769	Florida Statutes, are amended to read:
770	720.306  Meetings of members; voting and election
771	procedures; amendments.--
772	(8)  PROXY VOTING.--The members have the right, unless
773	otherwise provided in this subsection or in the governing
774	documents, to vote in person or by proxy.
775	(a)  To be valid, a proxy must be dated, must state the
776	date, time, and place of the meeting for which it was given, and
777	must be signed by the authorized person who executed the proxy.
778	A proxy is effective only for the specific meeting for which it
779	was originally given, as the meeting may lawfully be adjourned
780	and reconvened from time to time, and automatically expires 90
781	days after the date of the meeting for which it was originally
782	given. A proxy is revocable at any time at the pleasure of the
783	person who executes it. If the proxy form expressly so provides,
784	any proxy holder may appoint, in writing, a substitute to act in
785	his or her place.
786	(b)  If the governing documents permit voting by secret
787	ballot by members who are not in attendance at a meeting of the
788	members for the election of directors, such ballots shall be
789	placed in an inner envelope with no identifying markings and
790	mailed or delivered to the association in an outer envelope
791	bearing identifying information reflecting the name of the
792	member, the lot or parcel for which the vote is being cast, and
793	the signature of the lot or parcel owner casting that ballot.
794	After the eligibility of the member to vote and confirmation
795	that no other ballot has been submitted for that lot or parcel,
796	the inner envelope shall be removed from the outer envelope
797	bearing the identification information, placed with the ballots
798	which were personally cast, and opened when the ballots are
799	counted. If more than one ballot is submitted for a lot or
800	parcel, the ballots for that lot or parcel shall be
801	disqualified. Any vote by ballot received after the closing of
802	the balloting may not be considered.
803	(9)  ELECTIONS; BOARD MEMBER CERTIFICATION.--
804	(a)  Elections of directors must be conducted in accordance
805	with the procedures set forth in the governing documents of the
806	association. All members of the association are shall be
807	eligible to serve on the board of directors, and a member may
808	nominate himself or herself as a candidate for the board at a
809	meeting where the election is to be held or, if the election
810	process allows voting by absentee ballot, in advance of the
811	balloting. Except as otherwise provided in the governing
812	documents, boards of directors must be elected by a plurality of
813	the votes cast by eligible voters. Any election dispute between
814	a member and an association must be submitted to mandatory
815	binding arbitration with the division. Such proceedings shall be
816	conducted in the manner provided by s. 720.507 718.1255 and the
817	procedural rules adopted by the division.
818	(b)  Within 30 days after being elected to the board of
819	directors, a new director shall certify in writing to the
820	secretary of the association that he or she has read the
821	association's declarations of covenants and restrictions,
822	articles of incorporation, bylaws, and current written policies
823	and that he or she will work to uphold each to the best of his
824	or her ability and will faithfully discharge his or her
825	fiduciary responsibility to the association's members. Failure
826	to timely file such statement shall automatically disqualify the
827	director from service on the association's board of directors.
828	The secretary shall cause the association to retain a director's
829	certification for inspection by the members for 5 years after a
830	director's election. Failure to have such certification on file
831	does not affect the validity of any appropriate action.
832	Section 8.  Paragraph (a) of subsection (1) of section
833	720.401, Florida Statutes, is amended to read:
834	720.401  Prospective purchasers subject to association
835	membership requirement; disclosure required; covenants;
836	assessments; contract cancellation.--
837	(1)(a)  A prospective parcel owner in a community must be
838	presented a disclosure summary before executing the contract for
839	sale. The disclosure summary must be in a form substantially
840	similar to the following form:
841
842	DISCLOSURE SUMMARY
843	FOR
844	(NAME OF COMMUNITY)
845
846	1.  AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
847	BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS' ASSOCIATION.
848	2.  THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
849	COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
850	COMMUNITY.
851	3.  YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
852	ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
853	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____. YOU WILL
854	ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
855	ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
856	IF APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
857	4.  YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
858	RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
859	ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
860	5.  YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
861	LEVIED BY A MANDATORY HOMEOWNERS' ASSOCIATION MAY COULD RESULT
862	IN A LIEN ON YOUR PROPERTY.
863	6.  THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
864	FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
865	OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. IF
866	APPLICABLE, THE CURRENT AMOUNT IS $_____ PER _____.
867	7.  IF THE ASSOCIATION IS STILL UNDER THE CONTROL OF THE
868	DEVELOPER, THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
869	RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
870	MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
871	8.  THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
872	ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
873	SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
874	DOCUMENTS BEFORE PURCHASING PROPERTY.
875	9.  THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD AND
876	CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE THE
877	PROPERTY IS LOCATED, OR, IF ARE NOT RECORDED, AND CAN BE
878	OBTAINED FROM THE DEVELOPER.
879	10.  THERE MAY BE AN OBLIGATION TO PAY ASSESSMENTS (TAXES
880	OR FEES) TO A RESIDENTIAL COMMUNITY DEVELOPMENT DISTRICT FOR THE
881	PURPOSE OF RETIRING BOND OBLIGATIONS USED TO CONSTRUCT
882	INFRASTRUCTURE OR OTHER IMPROVEMENTS.
883	11.  YOU ARE JOINTLY AND SEVERALLY LIABLE WITH THE PREVIOUS
884	OWNER OF YOUR PROPERTY FOR ALL UNPAID ASSESSMENTS THAT CAME DUE
885	UP TO THE TIME OF TRANSFER OF TITLE.
886
887	DATE:     PURCHASER:
888	PURCHASER:
889
890	The disclosure must be supplied by the developer, or by the
891	parcel owner if the sale is by an owner that is not the
892	developer. Any contract or agreement for sale shall refer to and
893	incorporate the disclosure summary and shall include, in
894	prominent language, a statement that the potential buyer should
895	not execute the contract or agreement until he or she has they
896	have received and read the disclosure summary required by this
897	section.
898	Section 9.  Paragraph (d) of subsection (1) of section
899	34.01, Florida Statutes, is amended to read:
900	34.01  Jurisdiction of county court.--
901	(1)  County courts shall have original jurisdiction:
902	(d)  Of disputes occurring in the homeowners' associations
903	as described in part IV of chapter 720 s. 720.311(2)(a), which
904	shall be concurrent with jurisdiction of the circuit courts.
905	Section 10.  Subsection (2) of section 720.302, Florida
906	Statutes, is amended to read:
907	720.302  Purposes, scope, and application.--
908	(2)  The Legislature recognizes that it is not in the best
909	interest of homeowners' associations or the individual
910	association members thereof to create or impose a bureau or
911	other agency of state government to regulate the affairs of
912	homeowners' associations. However, in accordance with part IV of
913	this chapter s. 720.311, the Legislature finds that homeowners'
914	associations and their individual members will benefit from an
915	expedited alternative process for resolution of election and
916	recall disputes and presuit mediation of other disputes
917	involving covenant enforcement in homeowner's associations and
918	deed-restricted communities using the procedures provided in
919	part IV of and authorizes the department to hear, administer,
920	and determine these disputes as more fully set forth in this
921	chapter. Further, the Legislature recognizes that certain
922	contract rights have been created for the benefit of homeowners'
923	associations and members thereof as well as deed-restricted
924	communities before the effective date of this act and that part
925	IV of this chapter is ss. 720.301-720.407 are not intended to
926	impair such contract rights, including, but not limited to, the
927	rights of the developer to complete the community as initially
928	contemplated.
929	Section 11.  Section 720.311, Florida Statutes, is
930	repealed.
931	Section 12.  Part IV of chapter 720, Florida Statutes, to
932	be entitled "Dispute Resolution," consisting of sections
933	720.501, 720.502, 720.503, 720.504, 720.505, 720.506, 720.507,
934	720.508, 720.509, and 720.510, is created to read:
935	720.501  Short title.--This part may be cited as the "Home
936	Court Advantage Dispute Resolution Act."
937	720.502  Legislative findings.--The Legislature finds that
938	alternative dispute resolution has made progress in reducing
939	court dockets and trials and in offering a more efficient, cost-
940	effective option to litigation.
941	720.503  Applicability of this part.--
942	(1)  Unless otherwise provided in this part, before a
943	dispute described in this part between a homeowners' association
944	and a parcel owner or owners, or a dispute between parcel owners
945	within the same homeowners' association, may be filed in court,
946	the dispute is subject to presuit mediation pursuant to s.
947	720.505 or presuit arbitration pursuant to s. 720.507, at the
948	option of the aggrieved party who initiates the first formal
949	action of alternative dispute resolution under this part. The
950	parties may mutually agree to participate in both presuit
951	mediation and presuit arbitration prior to suit being filed by
952	either party.
953	(2)  Unless otherwise provided in this part, the mediation
954	and arbitration provisions of this part are limited to disputes
955	between an association and a parcel owner or owners or between
956	parcel owners regarding the use of or changes to the parcel or
957	the common areas under the governing documents and other
958	disputes involving violations of the recorded declaration of
959	covenants or other governing documents, disputes arising
960	concerning enforcement of the governing documents or any
961	amendments thereto, and disputes involving access to the
962	official records of the association. A dispute concerning title
963	to any parcel or common area, interpretation or enforcement of
964	any warranty, the levy of a fee or assessment, the collection of
965	an assessment levied against a party, the eviction or other
966	removal of a tenant from a parcel, alleged breaches of fiduciary
967	duty by one or more directors, or any action to collect mortgage
968	indebtedness or to foreclosure a mortgage shall not be subject
969	to the provisions of this part.
970	(3)  All disputes arising after the effective date of this
971	part involving the election of the board of directors for an
972	association or the recall of any member of the board or officer
973	of the association shall not be eligible for presuit mediation
974	under s. 720.505, but shall be subject to the provisions
975	concerning presuit arbitration under s. 720.507.
976	(4)  In any dispute subject to presuit mediation or presuit
977	arbitration under this part for which emergency relief is
978	required, a motion for temporary injunctive relief may be filed
979	with the court without first complying with the presuit
980	mediation or presuit arbitration requirements of this part.
981	After any issues regarding emergency or temporary relief are
982	resolved, the court may refer the parties to a mediation program
983	administered by the courts or require mediation or arbitration
984	under this part.
985	(5)  The mailing of a statutory notice of presuit mediation
986	or presuit arbitration as provided in this part shall toll the
987	applicable statute of limitations during the pendency of the
988	mediation or arbitration and for a period of 30 days following
989	the conclusion of either proceeding. The 30-day period shall
990	start upon the filing of the mediator's notice of impasse or the
991	arbitrator's written arbitration award. If the parties mutually
992	agree to participate in both presuit mediation and presuit
993	arbitration under this part, the tolling of the applicable
994	statute of limitations for each such alternative dispute
995	resolution proceeding shall be consecutive.
996	720.504  Notice of dispute.--Prior to giving the statutory
997	notice to proceed under presuit mediation or presuit arbitration
998	under this part, the aggrieved association or parcel owner shall
999	first provide written notice of the dispute to the responding
1000	party in the manner provided by this section.
1001	(1)  The notice of dispute shall be delivered to the
1002	responding party by certified mail, return receipt requested, or
1003	the notice of dispute may be hand delivered, and the person
1004	making delivery shall file with their notice of mediation either
1005	the proof of receipt of mailing or an affidavit stating the date
1006	and time of the delivery of the notice of dispute. If the notice
1007	is delivered by certified mail, return receipt requested, and
1008	the responding party fails or refuses to accept delivery, notice
1009	shall be considered properly delivered for purposes of this
1010	section on the date of the first attempted delivery.
1011	(2)  The notice of dispute shall state with specificity the
1012	nature of the dispute, including the date, time, and location of
1013	each event that is the subject of the dispute and the action
1014	requested to resolve the dispute. The notice shall also include
1015	the text of any provision in the governing documents, including
1016	the rules and regulations, of the association which form the
1017	basis of the dispute.
1018	(3)  Unless the parties otherwise agree in writing to a
1019	longer time period, the party receiving the notice of dispute
1020	shall have 10 days following the date of receipt of notice to
1021	resolve the dispute. If the alleged dispute has not been
1022	resolved within the 10-day period, the aggrieved party may
1023	proceed under this part at any time thereafter within the
1024	applicable statute of limitations.
1025	(4)  A copy of the notice and the text of the provision in
1026	the governing documents, or the rules and regulations, of the
1027	association which are the basis of the dispute, along with proof
1028	of service of the notice of dispute and a copy of any written
1029	responses received from the responding party, shall be included
1030	as an exhibit to any demand for mediation or arbitration under
1031	this part.
1032	720.505  Presuit mediation.--
1033	(1)  Disputes between an association and a parcel owner or
1034	owners and between parcel owners must be submitted to presuit
1035	mediation before the dispute may be filed in court; or, at the
1036	election of the party initiating the presuit procedures, such
1037	dispute may be submitted to presuit arbitration pursuant to s.
1038	720.507 before the dispute may be filed in court. An aggrieved
1039	party who elects to use the presuit mediation procedure under
1040	this section shall serve on the responding party a written
1041	notice of presuit mediation in substantially the following form:
1042
1043	STATUTORY NOTICE OF PRESUIT MEDIATION
1044
1045	THE ALLEGED AGGRIEVED PARTY, ____________________,
1046	HEREBY DEMANDS THAT ____________________, AS THE
1047	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
1048	MEDIATION IN CONNECTION WITH THE FOLLOWING DISPUTE(S)
1049	WITH YOU, WHICH BY STATUTE ARE OF A TYPE THAT ARE
1050	SUBJECT TO PRESUIT MEDIATION:
1051
1052	ATTACHED IS A COPY OF THE PRIOR NOTICE OF VIOLATION
1053	WHICH DETAILS THE SPECIFIC NATURE OF THE DISPUTE(S) TO
1054	BE MEDIATED AND THE AUTHORITY SUPPORTING A FINDING OF
1055	A VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
1056	LIMITED TO, THE APPLICABLE PROVISIONS OF THE GOVERNING
1057	DOCUMENTS OF THE ASSOCIATION BELIEVED TO APPLY TO THE
1058	DISPUTE BETWEEN THE PARTIES, AND A COPY OF THE NOTICE
1059	YOU RECEIVED OR REFUSED AND COPIES OF ANY WRITTEN
1060	RESPONSE(S) RECEIVED FROM YOU ABOUT THIS DISPUTE.
1061
1062	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
1063	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
1064	MEDIATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
1065	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
1066	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
1067	MEDIATION WITH A NEUTRAL THIRD-PARTY MEDIATOR IN ORDER
1068	TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
1069	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
1070	PARTICIPATE IN THIS PROCESS. UNLESS YOU RESPOND TO
1071	THIS NOTICE BY FILING WITH THE AGGRIEVED PARTY A
1072	NOTICE OF OPTING OUT AND DEMAND FOR ARBITRATION UNDER
1073	S. 720.506, FLORIDA STATUTES, YOUR FAILURE TO
1074	PARTICIPATE IN THE MEDIATION PROCESS MAY RESULT IN A
1075	LAWSUIT BEING FILED IN COURT AGAINST YOU WITHOUT
1076	FURTHER NOTICE.
1077
1078	THE PROCESS OF MEDIATION INVOLVES A SUPERVISED
1079	NEGOTIATION PROCESS IN WHICH A TRAINED, NEUTRAL THIRD-
1080	PARTY MEDIATOR MEETS WITH BOTH PARTIES AND ASSISTS
1081	THEM IN EXPLORING POSSIBLE OPPORTUNITIES FOR RESOLVING
1082	PART OR ALL OF THE DISPUTE. BY AGREEING TO PARTICIPATE
1083	IN PRESUIT MEDIATION, YOU ARE NOT BOUND IN ANY WAY TO
1084	CHANGE YOUR POSITION. FURTHERMORE, THE MEDIATOR HAS NO
1085	AUTHORITY TO MAKE ANY DECISIONS IN THIS MATTER OR TO
1086	DETERMINE WHO IS RIGHT OR WRONG AND MERELY ACTS AS A
1087	FACILITATOR TO ENSURE THAT EACH PARTY UNDERSTANDS THE
1088	POSITION OF THE OTHER PARTY AND THAT ALL OPTIONS FOR
1089	REASONABLE SETTLEMENT ARE FULLY EXPLORED.
1090
1091	IF AN AGREEMENT IS REACHED, IT SHALL BE REDUCED TO
1092	WRITING AND BECOME A BINDING AND ENFORCEABLE CONTRACT
1093	BETWEEN THE PARTIES. A RESOLUTION OF ONE OR MORE
1094	DISPUTES IN THIS FASHION AVOIDS THE NEED TO LITIGATE
1095	THESE ISSUES IN COURT. THE FAILURE TO REACH AN
1096	AGREEMENT, OR THE FAILURE OF A PARTY TO PARTICIPATE IN
1097	THE PROCESS, RESULTS IN THE MEDIATOR DECLARING AN
1098	IMPASSE IN THE MEDIATION, AFTER WHICH THE AGGRIEVED
1099	PARTY MAY PROCEED TO FILE A LAWSUIT ON ALL
1100	OUTSTANDING, UNSETTLED DISPUTES. IF YOU HAVE FAILED OR
1101	REFUSED TO PARTICIPATE IN THE ENTIRE MEDIATION
1102	PROCESS, YOU WILL NOT BE ENTITLED TO RECOVER
1103	ATTORNEY'S FEES IF YOU PREVAIL IN A SUBSEQUENT COURT
1104	PROCEEDING INVOLVING THE SAME DISPUTE.
1105
1106	THE AGGRIEVED PARTY HAS SELECTED FROM A LIST OF
1107	ELIGIBLE, QUALIFIED MEDIATORS AT LEAST FIVE CERTIFIED
1108	MEDIATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
1109	NEUTRAL AND QUALIFIED TO MEDIATE THE DISPUTE. YOU HAVE
1110	THE RIGHT TO SELECT ANY ONE OF THESE MEDIATORS. THE
1111	FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR MORE
1112	OF THE LISTED MEDIATORS DOES NOT MEAN THAT THE
1113	MEDIATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
1114	FACILITATOR. THE NAMES OF THE MEDIATORS THAT THE
1115	AGGRIEVED PARTY HEREBY SUBMITS TO YOU FROM WHOM YOU
1116	MAY CHOOSE ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE
1117	NUMBERS, AND HOURLY RATES ARE AS FOLLOWS:
1118
1119	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
1120	HOURLY RATES OF THE MEDIATORS. OTHER PERTINENT
1121	INFORMATION ABOUT THE BACKGROUND OF THE MEDIATORS MAY
1122	BE INCLUDED AS AN ATTACHMENT.)
1123
1124	YOU MAY CONTACT THE OFFICES OF THESE MEDIATORS TO
1125	CONFIRM THAT EACH OF THE ABOVE-LISTED MEDIATORS WILL
1126	BE NEUTRAL AND WILL NOT SHOW ANY FAVORITISM TOWARD
1127	EITHER PARTY. UNLESS OTHERWISE AGREED TO BY THE
1128	PARTIES, PART IV OF CHAPTER 720, FLORIDA STATUTES,
1129	REQUIRES THAT THE PARTIES SHARE THE COSTS OF PRESUIT
1130	MEDIATION EQUALLY, INCLUDING THE FEE CHARGED BY THE
1131	MEDIATOR. AN AVERAGE MEDIATION MAY REQUIRE 3 TO 4
1132	HOURS OF THE MEDIATOR'S TIME, INCLUDING SOME
1133	PREPARATION TIME, AND THE PARTIES WOULD NEED TO
1134	EQUALLY SHARE THE MEDIATOR'S FEES AS WELL AS BE
1135	RESPONSIBLE FOR ALL OF THEIR OWN ATTORNEY'S FEES IF
1136	THEY CHOOSE TO EMPLOY AN ATTORNEY IN CONNECTION WITH
1137	THE MEDIATION. HOWEVER, USE OF AN ATTORNEY IS NOT
1138	REQUIRED AND IS AT THE OPTION OF EACH PARTY. THE
1139	MEDIATORS MAY REQUIRE THE ADVANCE PAYMENT OF SOME OR
1140	ALL OF THE ANTICIPATED FEES. THE AGGRIEVED PARTY
1141	HEREBY AGREES TO PAY OR PREPAY ONE-HALF OF THE
1142	SELECTED MEDIATOR'S ESTIMATED FEES AND TO FORWARD THIS
1143	AMOUNT OR SUCH OTHER REASONABLE ADVANCE DEPOSITS AS
1144	THE MEDIATOR REQUIRES FOR THIS PURPOSE UPON THE
1145	SELECTION OF THE MEDIATOR. ANY FUNDS DEPOSITED WILL BE
1146	RETURNED TO YOU IF THESE FUNDS ARE IN EXCESS OF YOUR
1147	SHARE OF THE MEDIATOR FEES INCURRED.
1148
1149	TO BEGIN YOUR PARTICIPATION IN PRESUIT MEDIATION TO
1150	TRY TO RESOLVE THE DISPUTE WITH YOU AND AVOID FURTHER
1151	LEGAL ACTION, PLEASE SIGN BELOW AND CLEARLY INDICATE
1152	WHICH MEDIATOR IS ACCEPTABLE TO YOU FROM THE FIVE
1153	MEDIATORS LISTED BY THE AGGRIEVED PARTY ABOVE.
1154
1155	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
1156	OF PRESUIT MEDIATION WITHIN 20 DAYS. IN YOUR RESPONSE
1157	YOU MUST PROVIDE A LISTING OF AT LEAST THREE DATES AND
1158	TIMES IN WHICH YOU ARE AVAILABLE TO PARTICIPATE IN THE
1159	MEDIATION THAT ARE WITHIN 90 DAYS AFTER THE POSTMARKED
1160	DATE OF THE MAILING OF THIS NOTICE OF PRESUIT
1161	MEDIATION OR WITHIN 90 DAYS AFTER THE DATE YOU WERE
1162	SERVED WITH A COPY OF THIS NOTICE. THE AGGRIEVED PARTY
1163	WILL THEN ASK THE MEDIATOR TO SCHEDULE A MUTUALLY
1164	CONVENIENT TIME AND PLACE FOR THE MEDIATION CONFERENCE
1165	TO BE HELD. IF YOU DO NOT PROVIDE A LIST OF AVAILABLE
1166	DATES AND TIMES, THE MEDIATOR IS AUTHORIZED TO
1167	SCHEDULE A MEDIATION CONFERENCE WITHOUT TAKING YOUR
1168	SCHEDULE AND CONVENIENCE INTO CONSIDERATION. IN NO
1169	EVENT SHALL THE MEDIATION CONFERENCE BE LATER THAN 90
1170	DAYS AFTER THE NOTICE OF PRESUIT MEDIATION WAS FIRST
1171	SERVED UNLESS ALL PARTIES MUTUALLY AGREE OTHERWISE. IN
1172	THE EVENT THAT YOU FAIL TO RESPOND WITHIN 20 DAYS
1173	AFTER THE DATE OF THIS NOTICE, FAIL TO PROVIDE THE
1174	MEDIATOR WITH DATES AND TIMES IN WHICH YOU ARE
1175	AVAILABLE FOR THE MEDIATION CONFERENCE, FAIL TO AGREE
1176	TO AT LEAST ONE OF THE MEDIATORS THAT THE AGGRIEVED
1177	PARTY HAS LISTED, FAIL TO PAY OR PREPAY TO THE
1178	MEDIATOR ONE-HALF OF THE COSTS INVOLVED, OR FAIL TO
1179	APPEAR AND PARTICIPATE AT THE SCHEDULED MEDIATION, THE
1180	AGGRIEVED PARTY WILL BE AUTHORIZED TO PROCEED WITH THE
1181	FILING OF A LAWSUIT AGAINST YOU WITHOUT FURTHER
1182	NOTICE. IN ANY SUBSEQUENT COURT ACTION, THE AGGRIEVED
1183	PARTY MAY SEEK AN AWARD OF REASONABLE ATTORNEY'S FEES
1184	AND COSTS INCURRED IN ATTEMPTING TO OBTAIN MEDIATION.
1185
1186	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
1187	LAW, YOUR RESPONSE MUST BE MAILED BY CERTIFIED, FIRST-
1188	CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE AGGRIEVED
1189	PARTY LISTED ABOVE AT THE ADDRESS SHOWN ON THIS NOTICE
1190	AND POSTMARKED NO MORE THAN 20 DAYS AFTER THE DATE OF
1191	THE POSTMARKED DATE FOR THIS NOTICE OR WITHIN 20 DAYS
1192	AFTER THE DATE UPON WHICH YOU WERE SERVED WITH A COPY
1193	OF THIS NOTICE.
1194
1195	________________________
1196	SIGNATURE OF AGGRIEVED PARTY
1197
1198	______________________
1199	PRINTED NAME OF AGGRIEVED PARTY
1200
1201	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
1202	ACCEPTANCE OF THE AGREEMENT TO MEDIATE.
1203
1204	AGREEMENT TO MEDIATE
1205
1206	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
1207	PRESUIT MEDIATION AND AGREES TO ATTEND A MEDIATION
1208	CONDUCTED BY THE FOLLOWING MEDIATOR(S) LISTED BELOW AS
1209	ACCEPTABLE TO MEDIATE THIS DISPUTE:
1210
1211	(LIST ONE ACCEPTABLE MEDIATOR FROM THOSE LISTED BY THE
1212	AGGRIEVED PARTY.)
1213
1214	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE CAN
1215	ATTEND AND PARTICIPATE IN THE PRESUIT MEDIATION AT THE
1216	FOLLOWING DATES AND TIMES:
1217
1218	(LIST AT LEAST THREE AVAILABLE DATES AND TIMES WITHIN
1219	THE 90-DAY TIME LIMIT DESCRIBED ABOVE.)
1220
1221	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
1222	MEDIATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
1223	AS THE MEDIATOR MAY REQUIRE FOR THIS PURPOSE.
1224
1225	______________________________
1226	SIGNATURE OF RESPONDING PARTY #1
1227	______________________________
1228	TELEPHONE CONTACT INFORMATION
1229
1230	______________________________
1231	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
1232	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
1233	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
1234	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
1235	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
1236
1237	(2)(a)  Service of the notice of presuit mediation shall be
1238	effected either by personal service, as provided in chapter 48,
1239	or by certified mail, return receipt requested, in a letter in
1240	substantial conformity with the form provided in subsection (1),
1241	with an additional copy being sent by regular first-class mail,
1242	to the address of the responding party as it last appears on the
1243	books and records of the association or, if not available, then
1244	as it last appears in the official records of the county
1245	property appraiser where the parcel in dispute is located. The
1246	responding party has either 20 days after the postmarked date of
1247	the mailing of the statutory notice or 20 days after the date
1248	the responding party is served with a copy of the notice to
1249	serve a written response to the aggrieved party. The response
1250	shall be served by certified mail, return receipt requested,
1251	with an additional copy being sent by regular first-class mail,
1252	to the address shown on the statutory notice. The date of the
1253	postmark on the envelope for the response shall constitute the
1254	date that the response is served. Once the parties have agreed
1255	on a mediator, the mediator may schedule or reschedule the
1256	mediation for a date and time mutually convenient to the parties
1257	within 90 days after the date of service of the statutory
1258	notice. After such 90-day period, the mediator may reschedule
1259	the mediation only upon the mutual written agreement of all the
1260	parties.
1261	(b)  The parties shall share the costs of presuit mediation
1262	equally, including the fee charged by the mediator, if any,
1263	unless the parties agree otherwise, and the mediator may require
1264	advance payment of his or her reasonable fees and costs. Each
1265	party shall be responsible for that party's own attorney's fees
1266	if a party chooses to be represented by an attorney at the
1267	mediation.
1268	(c)  The party responding to the aggrieved party may
1269	provide a notice of opting out under s. 720.506 and demand
1270	arbitration or may sign the agreement to mediate included in the
1271	notice of presuit mediation. A responding party signing the
1272	agreement to mediate must clearly indicate the name of the
1273	mediator who is acceptable from the five names provided by the
1274	aggrieved party and must provide a list of dates and times in
1275	which the responding party is available to participate in the
1276	mediation within 90 days after the date the responding party was
1277	served, either by process server or by certified mail, with the
1278	statutory notice of presuit mediation.
1279	(d)  The mediator who has been selected and agreed to
1280	mediate must schedule the mediation conference at a mutually
1281	convenient time and place within that 90-day period; but, if the
1282	responding party does not provide a list of available dates and
1283	times, the mediator is authorized to schedule a mediation
1284	conference without taking the responding party's schedule and
1285	convenience into consideration. Within 10 days after the
1286	designation of the mediator, the mediator shall coordinate with
1287	the parties and notify the parties in writing of the date, time,
1288	and place of the mediation conference.
1289	(e)  The mediation conference must be held on the scheduled
1290	date and may be rescheduled if a rescheduled date is approved by
1291	the mediator. However, in no event shall the mediation be held
1292	later than 90 days after the notice of presuit mediation was
1293	first served, unless all parties mutually agree in writing
1294	otherwise. If the presuit mediation is not completed within the
1295	required time limits, the mediator shall declare an impasse
1296	unless the mediation date is extended by mutual written
1297	agreement by all parties and approved by the mediator.
1298	(f)  If the responding party fails to respond within 30
1299	days after the date of service of the statutory notice of
1300	presuit mediation, fails to agree to at least one of the
1301	mediators listed by the aggrieved party in the notice, fails to
1302	pay or prepay to the mediator one-half of the costs of the
1303	mediator, or fails to appear and participate at the scheduled
1304	mediation, the aggrieved party shall be authorized to proceed
1305	with the filing of a lawsuit without further notice.
1306	(g)1.  The failure of any party to respond to the statutory
1307	notice of presuit mediation within 20 days, the failure to agree
1308	upon a mediator, the failure to provide a listing of dates and
1309	times in which the responding party is available to participate
1310	in the mediation within 90 days after the date the responding
1311	party was served with the statutory notice of presuit mediation,
1312	the failure to make payment of fees and costs within the time
1313	established by the mediator, or the failure to appear for a
1314	scheduled mediation session without the approval of the
1315	mediator, shall in each instance constitute a failure or refusal
1316	to participate in the mediation process and shall operate as an
1317	impasse in the presuit mediation by such party, entitling the
1318	other party to file a lawsuit in court and to seek an award of
1319	the costs and attorney's fees associated with the mediation.
1320	2.  Persons who fail or refuse to participate in the entire
1321	mediation process may not recover attorney's fees and costs in
1322	subsequent litigation relating to the same dispute between the
1323	same parties. If any presuit mediation session cannot be
1324	scheduled and conducted within 90 days after the offer to
1325	participate in mediation was filed, through no fault of either
1326	party, then an impasse shall be deemed to have occurred unless
1327	the parties mutually agree in writing to extend this deadline.
1328	In the event of such impasse, each party shall be responsible
1329	for its own costs and attorney's fees and one-half of any
1330	mediator fees and filing fees, and either party may file a
1331	lawsuit in court regarding the dispute.
1332	720.506  Opt-out of presuit mediation.--A party served with
1333	a notice of presuit mediation under s. 720.505 may opt out of
1334	presuit mediation and demand that the dispute proceed under
1335	nonbinding arbitration as follows:
1336	(1)  In lieu of a response to the notice of presuit
1337	mediation as required under s. 720.505, the responding party may
1338	serve upon the aggrieved party, in the same manner as the
1339	response to a notice for presuit mediation under s. 720.505, a
1340	notice of opting out of mediation and demand that the dispute
1341	instead proceed to presuit arbitration under s. 720.507.
1342	(2)  The aggrieved party shall be relieved from having to
1343	satisfy the requirements of s. 720.504 as a condition precedent
1344	to filing the demand for presuit arbitration.
1345	(3)  Except as otherwise provided in this part, the choice
1346	of which presuit alternative dispute resolution procedure is
1347	used shall be at the election of the aggrieved party who first
1348	initiated such proceeding after complying with the provisions of
1349	s. 720.504.
1350	720.507  Presuit arbitration.--
1351	(1)  Disputes between an association and a parcel owner or
1352	owners and disputes between parcel owners are subject to a
1353	demand for presuit arbitration pursuant to this section before
1354	the dispute may be filed in court. A party who elects to use the
1355	presuit arbitration procedure under this part shall serve on the
1356	responding party a written notice of presuit arbitration in
1357	substantially the following form:
1358
1359	STATUTORY NOTICE OF PRESUIT ARBITRATION
1360
1361	THE ALLEGED AGGRIEVED PARTY, ____________________,
1362	HEREBY DEMANDS THAT ____________________, AS THE
1363	RESPONDING PARTY, ENGAGE IN MANDATORY PRESUIT
1364	ARBITRATION IN CONNECTION WITH THE FOLLOWING
1365	DISPUTE(S) WITH YOU, WHICH BY STATUTE ARE OF A TYPE
1366	THAT ARE SUBJECT TO PRESUIT ARBITRATION:
1367
1368	(LIST SPECIFIC NATURE OF THE DISPUTE OR DISPUTES TO BE
1369	ARBITRATED AND THE AUTHORITY SUPPORTING A FINDING OF A
1370	VIOLATION AS TO EACH DISPUTE, INCLUDING, BUT NOT
1371	LIMITED TO, ALL APPLICABLE PROVISIONS OF THE GOVERNING
1372	DOCUMENTS BELIEVED TO APPLY TO THE DISPUTE BETWEEN THE
1373	PARTIES.)
1374
1375	PURSUANT TO PART IV OF CHAPTER 720, FLORIDA STATUTES,
1376	THIS DEMAND TO RESOLVE THE DISPUTE THROUGH PRESUIT
1377	ARBITRATION IS REQUIRED BEFORE A LAWSUIT CAN BE FILED
1378	CONCERNING THE DISPUTE. PURSUANT TO FLORIDA STATUTES,
1379	THE PARTIES ARE REQUIRED TO ENGAGE IN PRESUIT
1380	ARBITRATION WITH A NEUTRAL THIRD-PARTY ARBITRATOR IN
1381	ORDER TO ATTEMPT TO RESOLVE THIS DISPUTE WITHOUT COURT
1382	ACTION, AND THE AGGRIEVED PARTY DEMANDS THAT YOU
1383	PARTICIPATE IN THIS PROCESS. IF YOU FAIL TO
1384	PARTICIPATE IN THE ARBITRATION PROCESS, A LAWSUIT MAY
1385	BE BROUGHT AGAINST YOU IN COURT WITHOUT FURTHER
1386	WARNING.
1387
1388	THE PROCESS OF ARBITRATION INVOLVES A NEUTRAL THIRD
1389	PERSON WHO CONSIDERS THE LAW AND FACTS PRESENTED BY
1390	THE PARTIES AND RENDERS A WRITTEN DECISION CALLED AN
1391	"ARBITRATION AWARD." PURSUANT TO S. 720.507, FLORIDA
1392	STATUTES, THE ARBITRATION AWARD SHALL BE FINAL UNLESS
1393	A LAWSUIT IS FILED IN A COURT OF COMPETENT
1394	JURISDICTION FOR THE JUDICIAL CIRCUIT IN WHICH THE
1395	PARCEL(S) GOVERNED BY THE HOMEOWNERS' ASSOCIATION
1396	IS/ARE LOCATED WITHIN 30 DAYS AFTER THE DATE OF THE
1397	ARBITRATION AWARD.
1398
1399	IF A SETTLEMENT AGREEMENT IS REACHED BEFORE THE
1400	ARBITRATION AWARD, IT SHALL BE REDUCED TO WRITING AND
1401	BECOME A BINDING AND ENFORCEABLE CONTRACT OF THE
1402	PARTIES. A RESOLUTION OF ONE OR MORE DISPUTES IN THIS
1403	FASHION AVOIDS THE NEED TO ARBITRATE THESE ISSUES OR
1404	TO LITIGATE THESE ISSUES IN COURT AND SHALL BE THE
1405	SAME AS A SETTLEMENT AGREEMENT REACHED BETWEEN THE
1406	PARTIES UNDER S. 720.505, FLORIDA STATUTES. THE
1407	FAILURE OF A PARTY TO PARTICIPATE IN THE ARBITRATION
1408	PROCESS MAY RESULT IN THE ARBITRATOR ISSUING AN
1409	ARBITRATION AWARD BY DEFAULT IN THE ARBITRATION. IF
1410	YOU HAVE FAILED OR REFUSED TO PARTICIPATE IN THE
1411	ENTIRE ARBITRATION PROCESS, YOU WILL NOT BE ENTITLED
1412	TO RECOVER ATTORNEY'S FEES, EVEN IF YOU PREVAIL IN A
1413	SUBSEQUENT COURT PROCEEDING INVOLVING THE SAME DISPUTE
1414	BETWEEN THE SAME PARTIES.
1415
1416	THE AGGRIEVED PARTY HAS SELECTED AT LEAST FIVE
1417	ARBITRATORS WHO THE AGGRIEVED PARTY BELIEVES TO BE
1418	NEUTRAL AND QUALIFIED TO ARBITRATE THE DISPUTE. YOU
1419	HAVE THE RIGHT TO SELECT ANY ONE OF THE ARBITRATORS.
1420	THE FACT THAT ONE PARTY MAY BE FAMILIAR WITH ONE OR
1421	MORE OF THE LISTED ARBITRATORS DOES NOT MEAN THAT THE
1422	ARBITRATOR CANNOT ACT AS A NEUTRAL AND IMPARTIAL
1423	ARBITRATOR. ANY ARBITRATOR WHO CANNOT ACT IN THIS
1424	CAPACITY IS REQUIRED ETHICALLY TO DECLINE TO ACCEPT
1425	ENGAGEMENT. THE NAMES OF THE FIVE ARBITRATORS THAT THE
1426	AGGRIEVED PARTY HAS CHOSEN FROM WHICH YOU MAY SELECT
1427	ONE, AND THEIR CURRENT ADDRESSES, TELEPHONE NUMBERS,
1428	AND HOURLY RATES, ARE AS FOLLOWS:
1429
1430	(LIST THE NAMES, ADDRESSES, TELEPHONE NUMBERS, AND
1431	HOURLY RATES OF AT LEAST FIVE ARBITRATORS.
1432
1433	YOU MAY CONTACT THE OFFICES OF THESE ARBITRATORS TO
1434	CONFIRM THAT THE LISTED ARBITRATORS WILL BE NEUTRAL
1435	AND WILL NOT SHOW ANY FAVORITISM TOWARD EITHER PARTY.
1436
1437	UNLESS OTHERWISE AGREED TO BY THE PARTIES, PART IV OF
1438	CHAPTER 720, FLORIDA STATUTES, REQUIRES THAT THE
1439	PARTIES SHARE THE COSTS OF PRESUIT ARBITRATION
1440	EQUALLY, INCLUDING THE FEE CHARGED BY THE ARBITRATOR.
1441	THE PARTIES SHALL BE RESPONSIBLE FOR THEIR OWN
1442	ATTORNEY'S FEES IF THEY CHOOSE TO EMPLOY AN ATTORNEY
1443	IN CONNECTION WITH THE ARBITRATION. HOWEVER, USE OF AN
1444	ATTORNEY TO REPRESENT YOU FOR THE ARBITRATION IS NOT
1445	REQUIRED. THE ARBITRATOR SELECTED MAY REQUIRE THE
1446	ADVANCE PAYMENT OF SOME OR ALL OF THE ANTICIPATED
1447	FEES. THE AGGRIEVED PARTY HEREBY AGREES TO PAY OR
1448	PREPAY ONE-HALF OF THE SELECTED ARBITRATOR'S ESTIMATED
1449	FEES AND TO FORWARD THIS AMOUNT OR SUCH OTHER
1450	REASONABLE ADVANCE DEPOSITS AS THE ARBITRATOR WHO IS
1451	SELECTED REQUIRES FOR THIS PURPOSE. ANY FUNDS
1452	DEPOSITED WILL BE RETURNED TO YOU IF THESE FUNDS ARE
1453	IN EXCESS OF YOUR SHARE OF THE FEES INCURRED.
1454
1455	PLEASE SIGN THE AGREEMENT TO ARBITRATE BELOW AND
1456	CLEARLY INDICATE THE NAME OF THE ARBITRATOR WHO IS
1457	ACCEPTABLE TO YOU FROM THE NAMES LISTED BY THE
1458	AGGRIEVED PARTY.
1459
1460	YOU MUST RESPOND IN WRITING TO THIS STATUTORY NOTICE
1461	WITHIN 20 DAYS AFTER THE DATE THAT THE NOTICE OF
1462	PRESUIT ARBITRATION WAS EITHER PERSONALLY SERVED ON
1463	YOU OR 20 DAYS AFTER THE POSTMARKED DATE THAT THIS
1464	NOTICE OF PRESUIT ARBITRATION WAS SENT TO YOU BY
1465	CERTIFIED MAIL. YOU MUST ALSO PROVIDE A LIST OF AT
1466	LEAST THREE DATES AND TIMES IN WHICH YOU ARE AVAILABLE
1467	TO PARTICIPATE IN THE ARBITRATION THAT ARE WITHIN 90
1468	DAYS AFTER THE DATE YOU WERE PERSONALLY SERVED OR
1469	WITHIN 90 DAYS AFTER THE POSTMARKED DATE OF THE
1470	CERTIFIED MAILING OF THIS STATUTORY NOTICE OF PRESUIT
1471	ARBITRATION. A COPY OF THIS NOTICE AND YOUR RESPONSE
1472	WILL BE PROVIDED BY THE AGGRIEVED PARTY TO THE
1473	ARBITRATOR SELECTED, AND THE ARBITRATOR WILL SCHEDULE
1474	A MUTUALLY CONVENIENT TIME AND PLACE FOR THE
1475	ARBITRATION CONFERENCE TO BE HELD. IF YOU DO NOT
1476	PROVIDE A LIST OF AVAILABLE DATES AND TIMES, THE
1477	ARBITRATOR IS AUTHORIZED TO SCHEDULE AN ARBITRATION
1478	CONFERENCE WITHOUT TAKING YOUR SCHEDULE AND
1479	CONVENIENCE INTO CONSIDERATION. THE ARBITRATION
1480	CONFERENCE MUST BE HELD ON THE SCHEDULED DATE, OR ANY
1481	RESCHEDULED DATE APPROVED BY THE ARBITRATOR. IN NO
1482	EVENT SHALL THE ARBITRATION CONFERENCE BE LATER THAN
1483	90 DAYS AFTER NOTICE OF THE PRESUIT ARBITRATION WAS
1484	FIRST SERVED, UNLESS ALL PARTIES MUTUALLY AGREE IN
1485	WRITING OTHERWISE. IF THE ARBITRATION IS NOT COMPLETED
1486	WITHIN THE REQUIRED TIME LIMITS, THE ARBITRATOR SHALL
1487	ISSUE AN ARBITRATION AWARD, UNLESS THE HEARING IS
1488	EXTENDED BY MUTUAL WRITTEN AGREEMENT OF THE PARTIES
1489	AND APPROVED BY THE ARBITRATOR. IN THE EVENT THAT YOU
1490	FAIL TO RESPOND WITHIN 20 DAYS AFTER THE DATE YOU WERE
1491	SERVED WITH A COPY OF THIS NOTICE, FAIL TO PROVIDE THE
1492	ARBITRATOR WITH DATES AND TIMES IN WHICH YOU ARE
1493	AVAILABLE FOR THE ARBITRATION CONFERENCE, FAIL TO
1494	AGREE EITHER TO ONE OF THE ARBITRATORS THAT THE
1495	AGGRIEVED PARTY HAS NAMED, FAIL TO PAY OR PREPAY TO
1496	THE ARBITRATOR ONE-HALF OF THE COSTS INVOLVED AS
1497	REQUIRED, OR FAIL TO APPEAR AND PARTICIPATE AT THE
1498	SCHEDULED ARBITRATION CONFERENCE, THE AGGRIEVED PARTY
1499	MAY REQUEST THE ARBITRATOR TO ISSUE AN ARBITRATION
1500	AWARD. IN THE SUBSEQUENT COURT ACTION, THE AGGRIEVED
1501	PARTY SHALL BE ENTITLED TO RECOVER AN AWARD OF
1502	REASONABLE ATTORNEY'S FEES AND COSTS, INCLUDING ANY
1503	FEES PAID TO THE ARBITRATOR, INCURRED IN OBTAINING AN
1504	ARBITRATION AWARD PURSUANT TO S. 720.507, FLORIDA
1505	STATUTES.
1506
1507	PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION. BY
1508	LAW, YOUR RESPONSE MUST BE POSTMARKED AND MAILED BY
1509	CERTIFIED, FIRST-CLASS MAIL, RETURN RECEIPT REQUESTED,
1510	TO THE ADDRESS SHOWN ON THIS NOTICE OF PRESUIT
1511	ARBITRATION.
1512
1513	_________________________
1514	SIGNATURE OF AGGRIEVED PARTY
1515
1516	______________________
1517	PRINTED NAME OF AGGRIEVED PARTY
1518
1519	RESPONDING PARTY: YOUR SIGNATURE BELOW INDICATES YOUR
1520	ACCEPTANCE OF THE AGREEMENT TO ARBITRATE.
1521
1522	AGREEMENT TO ARBITRATE
1523
1524	THE UNDERSIGNED HEREBY AGREES TO PARTICIPATE IN
1525	PRESUIT ARBITRATION AND AGREES TO ATTEND AN
1526	ARBITRATION CONDUCTED BY THE FOLLOWING ARBITRATOR
1527	LISTED BELOW AS SOMEONE WHO WOULD BE ACCEPTABLE TO
1528	ARBITRATE THIS DISPUTE:
1529
1530	(IN YOUR RESPONSE, SELECT THE NAME OF ONE ARBITRATOR
1531	THAT IS ACCEPTABLE TO YOU FROM THOSE ARBITRATORS
1532	LISTED BY THE AGGRIEVED PARTY.)
1533
1534	THE UNDERSIGNED HEREBY REPRESENTS THAT HE OR SHE IS
1535	AVAILABLE AND ABLE TO ATTEND AND PARTICIPATE IN THE
1536	PRESUIT ARBITRATION CONFERENCE AT THE FOLLOWING DATES
1537	AND TIMES:
1538
1539	(LIST ALL AVAILABLE DATES AND TIMES, OF WHICH THERE
1540	MUST BE AT LEAST THREE, WITHIN 90 DAYS AFTER THE DATE
1541	ON WHICH YOU WERE SERVED, EITHER BY PROCESS SERVER OR
1542	BY CERTIFIED MAIL, WITH THE NOTICE OF PRESUIT
1543	ARBITRATION.)
1544
1545	I/WE FURTHER AGREE TO PAY OR PREPAY ONE-HALF OF THE
1546	ARBITRATOR'S FEES AND TO FORWARD SUCH ADVANCE DEPOSITS
1547	AS THE ARBITRATOR MAY REQUIRE FOR THIS PURPOSE.
1548
1549	______________________________
1550	SIGNATURE OF RESPONDING PARTY #1
1551	______________________________
1552	TELEPHONE CONTACT INFORMATION
1553
1554	______________________________
1555	SIGNATURE AND TELEPHONE CONTACT INFORMATION OF
1556	RESPONDING PARTY #2, IF APPLICABLE. IF THE PROPERTY IS
1557	OWNED BY MORE THAN ONE PERSON, ALL OWNERS MUST SIGN,
1558	OR A PERSON MAY SIGN WHO IS ACTING UNDER AUTHORITY OF
1559	A VALID POWER OF ATTORNEY GRANTED BY AN OWNER.
1560
1561	(2)(a)  Service of the statutory notice of presuit
1562	arbitration shall be effected either by personal service, as
1563	provided in chapter 48, or by certified mail, return receipt
1564	requested, in a letter in substantial conformity with the form
1565	provided in subsection (1), with an additional copy being sent
1566	by regular first-class mail, to the address of the responding
1567	party as it last appears on the books and records of the
1568	association, or if not available, the last address as it appears
1569	on the official records of the county property appraiser for the
1570	county in which the property is situated that is subject to the
1571	association documents. The responding party has 20 days after
1572	the postmarked date of the certified mailing of the statutory
1573	notice of presuit arbitration or 20 days after the date the
1574	responding party is personally served with the statutory notice
1575	of presuit arbitration by to serve a written response to the
1576	aggrieved party. The response shall be served by certified mail,
1577	return receipt requested, with an additional copy being sent by
1578	regular first-class mail, to the address shown on the statutory
1579	notice of presuit arbitration. The postmarked date on the
1580	envelope of the response shall constitute the date the response
1581	was served.
1582	(b)  The parties shall share the costs of presuit
1583	arbitration equally, including the fee charged by the
1584	arbitrator, if any, unless the parties agree otherwise, and the
1585	arbitrator may require advance payment of his or her reasonable
1586	fees and costs. Each party shall be responsible for all of their
1587	own attorney's fees if a party chooses to be represented by an
1588	attorney for the arbitration proceedings.
1589	(c)1.  The party responding to the aggrieved party must
1590	sign the agreement to arbitrate included in the notice of
1591	presuit arbitration and clearly indicate the name of the
1592	arbitrator who is acceptable of those arbitrators listed by the
1593	aggrieved party. The responding party must provide a list of at
1594	least three dates and times in which the responding party is
1595	available to participate in the arbitration conference within 90
1596	days after the date the responding party was served with the
1597	statutory notice of presuit arbitration.
1598	2.  The arbitrator must schedule the arbitration conference
1599	at a mutually convenient time and place, but if the responding
1600	party does not provide a list of available dates and times, the
1601	arbitrator is authorized to schedule an arbitration conference
1602	without taking the responding party's schedule and convenience
1603	into consideration. Within 10 days after the designation of the
1604	arbitrator, the arbitrator shall notify the parties in writing
1605	of the date, time, and place of the arbitration conference.
1606	3.  The arbitration conference must be held on the
1607	scheduled date and may be rescheduled if approved by the
1608	arbitrator. However, in no event shall the arbitration hearing
1609	be later than 90 days after the notice of presuit arbitration
1610	was first served, unless all parties mutually agree in writing
1611	otherwise. If the arbitration hearing is not completed within
1612	the required time limits, the arbitrator may issue an
1613	arbitration award unless the time for the hearing is extended as
1614	provided herein. If the responding party fails to respond within
1615	20 days after the date of statutory notice of presuit
1616	arbitration, fails to agree to at least one of the arbitrators
1617	that have been listed by the aggrieved party in the presuit
1618	notice of arbitration, fails to pay or prepay to the arbitrator
1619	one-half of the costs involved, or fails to appear and
1620	participate at the scheduled arbitration, the aggrieved party is
1621	authorized to proceed with a request that the arbitrator issue
1622	an arbitration award.
1623	(d)1.  The failure of any party to respond to the statutory
1624	notice of presuit arbitration within 20 days, the failure to
1625	either select one of the five arbitrators listed by the
1626	aggrieved party, the failure to provide a listing of dates and
1627	times in which the responding party is available to participate
1628	in the arbitration conference within 90 days after the date of
1629	the responding party being served with the statutory notice of
1630	presuit arbitration, the failure to make payment of fees and
1631	costs as required within the time established by the arbitrator,
1632	or the failure to appear for an arbitration conference without
1633	the approval of the arbitrator, shall entitle the other party to
1634	request the arbitrator to enter an arbitration award, including
1635	an award of the reasonable costs and attorney's fees associated
1636	with the arbitration.
1637	2.  Persons who fail or refuse to participate in the entire
1638	arbitration process may not recover attorney's fees and costs in
1639	any subsequent litigation proceeding relating to the same
1640	dispute involving the same parties.
1641	(3)(a)  In an arbitration proceeding, the arbitrator may
1642	not consider any unsuccessful mediation of the dispute.
1643	(b)  An arbitrator in a proceeding initiated pursuant to
1644	the provisions of this part may shorten the time for discovery
1645	or otherwise limit discovery in a manner consistent with the
1646	policy goals of this part to reduce the time and expense of
1647	litigating homeowners' association disputes initiated pursuant
1648	to this chapter and promoting an expeditious alternative dispute
1649	resolution procedure for parties to such actions.
1650	(4)  At the request of any party to the arbitration, the
1651	arbitrator may issue subpoenas for the attendance of witnesses
1652	and the production of books, records, documents, and other
1653	evidence, and any party on whose behalf a subpoena is issued may
1654	apply to the court for orders compelling such attendance and
1655	production. Subpoenas shall be served and are enforceable in the
1656	manner provided by the Florida Rules of Civil Procedure.
1657	Discovery may, at the discretion of the arbitrator, be permitted
1658	in the manner provided by the Florida Rules of Civil Procedure.
1659	(5)  The final arbitration award shall be sent to the
1660	parties in writing no later than 30 days after the date of the
1661	arbitration hearing, absent extraordinary circumstances
1662	necessitating a later filing the reasons for which shall be
1663	stated in the final award if filed more than 30 days after the
1664	date of the final session of the arbitration conference. An
1665	agreed arbitration award is final in those disputes in which the
1666	parties have mutually agreed to be bound. An arbitration award
1667	decided by the arbitrator is final unless a lawsuit seeking a
1668	trial de novo is filed in a court of competent jurisdiction
1669	within 30 days after the date of the arbitration award. The
1670	right to file for a trial de novo entitles the parties to file a
1671	complaint in the appropriate trial court for a judicial
1672	resolution of the dispute. The prevailing party in an
1673	arbitration proceeding shall be awarded the costs of the
1674	arbitration and reasonable attorney's fees in an amount
1675	determined by the arbitrator.
1676	(6)  The party filing a motion for a trial de novo shall be
1677	assessed the other party's arbitration costs, court costs, and
1678	other reasonable costs, including attorney's fees, investigation
1679	expenses, and expenses for expert or other testimony or evidence
1680	incurred after the arbitration hearing, if the judgment upon the
1681	trial de novo is not more favorable than the final arbitration
1682	award.
1683	720.508  Rules of procedure.--
1684	(1)  Presuit mediation and presuit arbitration proceedings
1685	under this part must be conducted in accordance with the
1686	applicable Florida Rules of Civil Procedure and rules governing
1687	mediations and arbitrations under chapter 44, except that this
1688	part shall be controlling to the extent of any conflict with
1689	other applicable rules or statutes. The arbitrator may shorten
1690	any applicable time period and otherwise limit the scope of
1691	discovery on request of the parties or within the discretion of
1692	the arbitrator exercised consistent with the purpose and
1693	objective of reducing the expense and expeditiously concluding
1694	proceedings under this part.
1695	(2)  Presuit mediation proceedings under s. 720.505 are
1696	privileged and confidential to the same extent as court-ordered
1697	mediation under chapter 44. An arbitrator or judge may not
1698	consider any information or evidence arising from the presuit
1699	mediation proceeding except in a proceeding to impose sanctions
1700	for failure to attend a presuit mediation session or to enforce
1701	a mediated settlement agreement.
1702	(3)  Persons who are not parties to the dispute may not
1703	attend the presuit mediation conference without consent of all
1704	parties, with the exception of counsel for the parties and a
1705	corporate representative designated by the association. Presuit
1706	mediations under this part are not a board meeting for purposes
1707	of notice and participation set forth in this chapter.
1708	(4)  Attendance at a mediation conference by the board of
1709	directors shall not require notice or participation by nonboard
1710	members as otherwise required by this chapter for meetings of
1711	the board.
1712	(5)  Settlement agreements resulting from a mediation or
1713	arbitration proceeding do not have precedential value in
1714	proceedings involving parties other than those participating in
1715	the mediation or arbitration.
1716	(6)  Arbitration awards by an arbitrator shall have
1717	precedential value in other proceedings involving the same
1718	association or with respect to the same parcel owner.
1719	720.509  Mediators and arbitrators; qualifications and
1720	registration.--A person is authorized to conduct mediation or
1721	arbitration under this part if he or she has been certified as a
1722	circuit court civil mediator under the requirements adopted
1723	pursuant to s. 44.106, is a member in good standing with The
1724	Florida Bar, and otherwise meets all other requirements imposed
1725	by chapter 44.
1726	720.510  Enforcement of mediation agreement or arbitration
1727	award.--
1728	(1)  A mediation settlement may be enforced through the
1729	county or circuit court, as applicable, and any costs and
1730	attorney's fees incurred in the enforcement of a settlement
1731	agreement reached at mediation shall be awarded to the
1732	prevailing party in any enforcement action.
1733	(2)  Any party to an arbitration proceeding may enforce an
1734	arbitration award by filing a petition in a court of competent
1735	jurisdiction in which the homeowners' association is located.
1736	The prevailing party in such proceeding shall be awarded
1737	reasonable attorney's fees and costs incurred in such
1738	proceeding.
1739	(3)  If a complaint is filed seeking a trial de novo, the
1740	arbitration award shall be stayed and a petition to enforce the
1741	award may not be granted. Such award, however, shall be
1742	admissible in the court proceeding seeking a trial de novo.
1743	Section 13.  Subsection (16) of section 718.103, Florida
1744	Statutes, is amended to read:
1745	718.103  Definitions.--As used in this chapter, the term:
1746	(16)  "Developer" means a person who creates a condominium
1747	or offers condominium parcels for sale or lease in the ordinary
1748	course of business, but does not include:
1749	(a)  An owner or lessee of a condominium or cooperative
1750	unit who has acquired the unit for his or her own occupancy;,
1751	nor does it include
1752	(b)  A cooperative association which creates a condominium
1753	by conversion of an existing residential cooperative after
1754	control of the association has been transferred to the unit
1755	owners if, following the conversion, the unit owners will be the
1756	same persons who were unit owners of the cooperative and no
1757	units are offered for sale or lease to the public as part of the
1758	plan of conversion;.
1759	(c)  A bulk assignee or bulk buyer as defined in s.
1760	718.703; or
1761	(d)  A state, county, or municipal entity is not a
1762	developer for any purposes under this act when it is acting as a
1763	lessor and not otherwise named as a developer in the declaration
1764	of condominium association.
1765	Section 14.  Subsection (1) of section 718.301, Florida
1766	Statutes, is amended to read:
1767	718.301  Transfer of association control; claims of defect
1768	by association.--
1769	(1)  When unit owners other than the developer own 15
1770	percent or more of the units in a condominium that will be
1771	operated ultimately by an association, the unit owners other
1772	than the developer shall be entitled to elect no less than one-
1773	third of the members of the board of administration of the
1774	association. Unit owners other than the developer are entitled
1775	to elect not less than a majority of the members of the board of
1776	administration of an association:
1777	(a)  Three years after 50 percent of the units that will be
1778	operated ultimately by the association have been conveyed to
1779	purchasers;
1780	(b)  Three months after 90 percent of the units that will
1781	be operated ultimately by the association have been conveyed to
1782	purchasers;
1783	(c)  When all the units that will be operated ultimately by
1784	the association have been completed, some of them have been
1785	conveyed to purchasers, and none of the others are being offered
1786	for sale by the developer in the ordinary course of business;
1787	(d)  When some of the units have been conveyed to
1788	purchasers and none of the others are being constructed or
1789	offered for sale by the developer in the ordinary course of
1790	business;
1791	(e)  When the developer files a petition seeking protection
1792	in bankruptcy;
1793	(f)  When a receiver for the developer is appointed by a
1794	circuit court and is not discharged within 30 days after such
1795	appointment, unless the court determines within 30 days after
1796	appointment of the receiver that transfer of control would be
1797	detrimental to the association or its members; or
1798	(g)  Seven years after recordation of the declaration of
1799	condominium; or, in the case of an association which may
1800	ultimately operate more than one condominium, 7 years after
1801	recordation of the declaration for the first condominium it
1802	operates; or, in the case of an association operating a phase
1803	condominium created pursuant to s. 718.403, 7 years after
1804	recordation of the declaration creating the initial phase,
1805
1806	whichever occurs first. The developer is entitled to elect at
1807	least one member of the board of administration of an
1808	association as long as the developer holds for sale in the
1809	ordinary course of business at least 5 percent, in condominiums
1810	with fewer than 500 units, and 2 percent, in condominiums with
1811	more than 500 units, of the units in a condominium operated by
1812	the association. Following the time the developer relinquishes
1813	control of the association, the developer may exercise the right
1814	to vote any developer-owned units in the same manner as any
1815	other unit owner except for purposes of reacquiring control of
1816	the association or selecting the majority members of the board
1817	of administration.
1818	Section 15.  Part VII of chapter 718, Florida Statutes,
1819	consisting of sections 718.701, 718.702, 718.703, 718.704,
1820	718.705, 718.706, 718.707, and 718.708, is created to read:
1821	718.701  Short title.--This part may be cited as the
1822	"Distressed Condominium Relief Act."
1823	718.702  Legislative intent.--
1824	(1)  The Legislature acknowledges the massive downturn in
1825	the condominium market which has transpired throughout the state
1826	and the impact of such downturn on developers, lenders, unit
1827	owners, and condominium associations. Numerous condominium
1828	projects have either failed or are in the process of failing,
1829	whereby the condominium has a small percentage of third-party
1830	unit owners as compared to the unsold inventory of units. As a
1831	result of the inability to find purchasers for this inventory of
1832	units, which results in part from the devaluing of real estate
1833	in this state, developers are unable to satisfy the requirements
1834	of their lenders, leading to defaults on mortgages.
1835	Consequently, lenders are faced with the task of finding a
1836	solution to the problem in order to be paid for their
1837	investments.
1838	(2)  The Legislature recognizes that all of the factors
1839	listed in this section lead to condominiums becoming distressed,
1840	resulting in detriment to the unit owners and the condominium
1841	association on account of the resulting shortage of assessment
1842	moneys available to support the financial requirements for
1843	proper maintenance of the condominium. Such shortage and the
1844	resulting lack of proper maintenance further erodes property
1845	values. The Legislature finds that individuals and entities
1846	within Florida and in other states have expressed interest in
1847	purchasing unsold inventory in one or more condominium projects,
1848	but are reticent to do so because of accompanying liabilities
1849	inherited from the original developer, which are by definition
1850	imputed to the successor purchaser, including a foreclosing
1851	mortgagee. This results in the potential purchaser having
1852	unknown and unquantifiable risks, and potential successor
1853	purchasers are unwilling to accept such risks. The result is
1854	that condominium projects stagnate, leaving all parties involved
1855	at an impasse without the ability to find a solution.
1856	(3)  The Legislature finds and declares that it is the
1857	public policy of this state to protect the interests of
1858	developers, lenders, unit owners, and condominium associations
1859	with regard to distressed condominiums, and that there is a need
1860	for relief from certain provisions of the Florida Condominium
1861	Act geared toward enabling economic opportunities within these
1862	condominiums for successor purchasers, including foreclosing
1863	mortgagees. Such relief would benefit existing unit owners and
1864	condominium associations. The Legislature further finds and
1865	declares that this situation cannot be open-ended without
1866	potentially prejudicing the rights of unit owners and
1867	condominium associations, and thereby declares that the
1868	provisions of this part shall be used by purchasers of
1869	condominium inventory for a specific and defined period.
1870	718.703  Definitions.--As used in this part, the term:
1871	(1)  "Bulk assignee" means a person who:
1872	(a)  Acquires more than seven condominium parcels as set
1873	forth in s. 718.707; and
1874	(b)  Receives an assignment of some or all of the rights of
1875	the developer as are set forth in the declaration of condominium
1876	or in this chapter by a written instrument recorded as an
1877	exhibit to the deed or as a separate instrument in the public
1878	records of the county in which the condominium is located.
1879	(2)  "Bulk buyer" means a person who acquires more than
1880	seven condominium parcels as set forth in s. 718.707 but who
1881	does not receive an assignment of any developer rights other
1882	than the right to conduct sales, leasing, and marketing
1883	activities within the condominium.
1884	718.704  Assignment and assumption of developer rights by
1885	bulk assignee; bulk buyer.--
1886	(1)  A bulk assignee shall be deemed to have assumed and is
1887	liable for all duties and responsibilities of the developer
1888	under the declaration and this chapter, except:
1889	(a)  Warranties of the developer under s. 718.203(1) or s.
1890	718.618, except for design, construction, development, or repair
1891	work performed by or on behalf of such bulk assignee;
1892	(b)  The obligation to:
1893	1.  Fund converter reserves under s. 718.618 for a unit
1894	which was not acquired by the bulk assignee; or
1895	2.  Provide converter warranties on any portion of the
1896	condominium property except as may be expressly provided by the
1897	bulk assignee in the contract for purchase and sale executed
1898	with a purchaser and pertaining to any design, construction,
1899	development, or repair work performed by or on behalf of the
1900	bulk assignee;
1901	(c)  The requirement to provide the association with a
1902	cumulative audit of the association's finances from the date of
1903	formation of the condominium association as required by s.
1904	718.301. However, the bulk assignee shall provide an audit for
1905	the period for which the bulk assignee elects a majority of the
1906	members of the board of administration;
1907	(d)  Any liability arising out of or in connection with
1908	actions taken by the board of administration or the developer-
1909	appointed directors before the bulk assignee elects a majority
1910	of the members of the board of administration; and
1911	(e)  Any liability for or arising out of the developer's
1912	failure to fund previous assessments or to resolve budgetary
1913	deficits in relation to a developer's right to guarantee
1914	assessments, except as otherwise provided in subsection (2).
1915
1916	Further, the bulk assignee is responsible for delivering
1917	documents and materials in accordance with s. 718.705(3). A bulk
1918	assignee may expressly assume some or all of the obligations of
1919	the developer described in paragraphs (a)-(e).
1920	(2)  A bulk assignee receiving the assignment of the rights
1921	of the developer to guarantee the level of assessments and fund
1922	budgetary deficits pursuant to s. 718.116 shall be deemed to
1923	have assumed and is liable for all obligations of the developer
1924	with respect to such guarantee, including any applicable funding
1925	of reserves to the extent required by law, for as long as the
1926	guarantee remains in effect. A bulk assignee not receiving an
1927	assignment of the right of the developer to guarantee the level
1928	of assessments and fund budgetary deficits pursuant to s.
1929	718.116 or a bulk buyer is not deemed to have assumed and is not
1930	liable for the obligations of the developer with respect to such
1931	guarantee, but is responsible for payment of assessments in the
1932	same manner as all other owners of condominium parcels.
1933	(3)  A bulk buyer is liable for the duties and
1934	responsibilities of the developer under the declaration and this
1935	chapter only to the extent provided in this part, together with
1936	any other duties or responsibilities of the developer expressly
1937	assumed in writing by the bulk buyer.
1938	(4)  An acquirer of condominium parcels is not considered a
1939	bulk assignee or a bulk buyer if the transfer to such acquirer
1940	was made with the intent to hinder, delay, or defraud any
1941	purchaser, unit owner, or the association, or if the acquirer is
1942	a person who would constitute an insider under s. 726.102(7).
1943	(5)  An assignment of developer rights to a bulk assignee
1944	may be made by the developer, a previous bulk assignee, or a
1945	court of competent jurisdiction acting on behalf of the
1946	developer or the previous bulk assignee. At any particular time,
1947	there may be no more than one bulk assignee within a
1948	condominium, but there may be more than one bulk buyer. If more
1949	than one acquirer of condominium parcels receives an assignment
1950	of developer rights from the same person, the bulk assignee is
1951	the acquirer whose instrument of assignment is recorded first in
1952	applicable public records.
1953	718.705  Board of administration; transfer of control.--
1954	(1)  For purposes of determining the timing for transfer of
1955	control of the board of administration of the association to
1956	unit owners other than the developer under ss. 718.301(1)(a) and
1957	(b), if a bulk assignee is entitled to elect a majority of the
1958	members of the board, a condominium parcel acquired by the bulk
1959	assignee shall not be deemed to be conveyed to a purchaser, or
1960	to be owned by an owner other than the developer, until such
1961	condominium parcel is conveyed to an owner who is not a bulk
1962	assignee.
1963	(2)  Unless control of the board of administration of the
1964	association has already been relinquished pursuant to s.
1965	718.301(1), the bulk assignee is obligated to relinquish control
1966	of the association in accordance with s. 718.301 and this part.
1967	(3)  When a bulk assignee relinquishes control of the board
1968	of administration as set forth in s. 718.301, the bulk assignee
1969	shall deliver all of those items required by s. 718.301(4).
1970	However, the bulk assignee is not required to deliver items and
1971	documents not in the possession of the bulk assignee during the
1972	period during which the bulk assignee was the owner of
1973	condominium parcels. In conjunction with acquisition of
1974	condominium parcels, a bulk assignee shall undertake a good
1975	faith effort to obtain the documents and materials required to
1976	be provided to the association pursuant to s. 718.301(4). To the
1977	extent the bulk assignee is not able to obtain all of such
1978	documents and materials, the bulk assignee shall certify in
1979	writing to the association the names or descriptions of the
1980	documents and materials that were not obtainable by the bulk
1981	assignee. Delivery of the certificate relieves the bulk assignee
1982	of responsibility for the delivery of the documents and
1983	materials referenced in the certificate as otherwise required
1984	under ss. 718.112 and 718.301 and this part. The responsibility
1985	of the bulk assignee for the audit required by s. 718.301(4)
1986	shall commence as of the date on which the bulk assignee elected
1987	a majority of the members of the board of administration.
1988	(4)  If a conflict arises between the provisions or
1989	application of this section and s. 718.301, this section shall
1990	prevail.
1991	(5)  Failure of a bulk assignee or bulk buyer to comply
1992	with all the requirements contained in this part shall result in
1993	the loss of any and all protections or exemptions provided under
1994	this part.
1995	718.706  Specific provisions pertaining to offering of
1996	units by a bulk assignee or bulk buyer.--
1997	(1)  Before offering any units for sale or for lease for a
1998	term exceeding 5 years, a bulk assignee or a bulk buyer shall
1999	file the following documents with the division and provide such
2000	documents to a prospective purchaser:
2001	(a)  An updated prospectus or offering circular, or a
2002	supplement to the prospectus or offering circular, filed by the
2003	creating developer prepared in accordance with s. 718.504, which
2004	shall include the form of contract for purchase and sale in
2005	compliance with s. 718.503(2);
2006	(b)  An updated Frequently Asked Questions and Answers
2007	sheet;
2008	(c)  The executed escrow agreement if required under s.
2009	718.202; and
2010	(d)  The financial information required by s. 718.111(13).
2011	However, if a financial information report does not exist for
2012	the fiscal year before acquisition of title by the bulk assignee
2013	or bulk buyer, or accounting records cannot be obtained in good
2014	faith by the bulk assignee or the bulk buyer which would permit
2015	preparation of the required financial information report, the
2016	bulk assignee or bulk buyer is excused from the requirement of
2017	this paragraph. However, the bulk assignee or bulk buyer must
2018	include in the purchase contract the following statement in
2019	conspicuous type:
2020	THE FINANCIAL INFORMATION REPORT REQUIRED UNDER S.
2021	718.111(13) FOR THE IMMEDIATELY PRECEDING FISCAL YEAR OF THE
2022	ASSOCIATION IS NOT AVAILABLE OR CANNOT BE CREATED BY THE SELLER
2023	AS A RESULT OF INSUFFICIENT ACCOUNTING RECORDS OF THE
2024	ASSOCIATION.
2025	(2)  Before offering any units for sale or for lease for a
2026	term exceeding 5 years, a bulk assignee shall file with the
2027	division and provide to a prospective purchaser a disclosure
2028	statement that must include, but is not limited to:
2029	(a)  A description to the purchaser of any rights of the
2030	developer which have been assigned to the bulk assignee;
2031	(b)  The following statement in conspicuous type:
2032	SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE DEVELOPER
2033	UNDER S. 718.203(1) OR S. 718.618, AS APPLICABLE, EXCEPT FOR
2034	DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY
2035	OR ON BEHALF OF SELLER; and
2036	(c)  If the condominium is a conversion subject to part VI,
2037	the following statement in conspicuous type:
2038	SELLER HAS NO OBLIGATION TO FUND CONVERTER RESERVES OR TO
2039	PROVIDE CONVERTER WARRANTIES UNDER S. 718.618 ON ANY PORTION OF
2040	THE CONDOMINIUM PROPERTY EXCEPT AS MAY BE EXPRESSLY REQUIRED OF
2041	THE SELLER IN THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE
2042	SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO ANY DESIGN,
2043	CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON
2044	BEHALF OF THE SELLER.
2045	(3)  In addition to the requirements set forth in
2046	subsection (1), a bulk assignee or bulk buyer must comply with
2047	the nondeveloper disclosure requirements set forth in s.
2048	718.503(2) before offering any units for sale or for lease for a
2049	term exceeding 5 years.
2050	(4)  A bulk assignee, while it is in control of the board
2051	of administration of the association, may not authorize, on
2052	behalf of the association:
2053	(a)  The waiver of reserves or the reduction of funding of
2054	the reserves in accordance with s. 718.112(2)(f)2., unless
2055	approved by a majority of the voting interests not controlled by
2056	the developer, bulk assignee, and bulk buyer; or
2057	(b)  The use of reserve expenditures for other purposes in
2058	accordance with s. 718.112(2)(f)3., unless approved by a
2059	majority of the voting interests not controlled by the
2060	developer, bulk assignee, and bulk buyer.
2061	(5)  A bulk assignee, while it is in control of the board
2062	of administration of the association, shall comply with the
2063	requirements imposed upon developers to transfer control of the
2064	association to the unit owners in accordance with s. 718.301.
2065	(6)  A bulk assignee or a bulk buyer shall comply with all
2066	the requirements of s. 718.302 regarding any contracts entered
2067	into by the association during the period the bulk assignee or
2068	bulk buyer maintains control of the board of administration.
2069	Unit owners shall be afforded all the protections contained in
2070	s. 718.302 regarding agreements entered into by the association
2071	before unit owners other than the developer, bulk assignee, or
2072	bulk buyer elected a majority of the board of administration.
2073	(7)  A bulk buyer shall comply with the requirements
2074	contained in the declaration regarding any transfer of a unit,
2075	including sales, leases, and subleases. A bulk buyer is not
2076	entitled to any exemptions afforded a developer or successor
2077	developer under this chapter regarding any transfer of a unit,
2078	including sales, leases, or subleases.
2079	718.707  Time limitation for classification as bulk
2080	assignee or bulk buyer.--A person acquiring condominium parcels
2081	may not be classified as a bulk assignee or bulk buyer unless
2082	the condominium parcels were acquired before July 1, 2011. The
2083	date of such acquisition shall be determined by the date of
2084	recording of a deed or other instrument of conveyance for such
2085	parcels in the public records of the county in which the
2086	condominium is located, or by the date of issuance of a
2087	certificate of title in a foreclosure proceeding with respect to
2088	such condominium parcels.
2089	718.708  Liability of developers and others.--An assignment
2090	of developer rights to a bulk assignee or bulk buyer does not
2091	release the developer from any liabilities under the declaration
2092	or this chapter. This part does not limit the liability of the
2093	developer for claims brought by unit owners, bulk assignees, or
2094	bulk buyers for violations of this chapter by the developer,
2095	unless specifically excluded in this part. Nothing contained
2096	within this part waives, releases, compromises, or limits the
2097	liability of contractors, subcontractors, materialmen,
2098	manufacturers, architects, engineers, or any participant in the
2099	design or construction of a condominium for any claim brought by
2100	an association, unit owners, bulk assignees, or bulk buyers
2101	arising from the design of the condominium, construction
2102	defects, misrepresentations associated with condominium
2103	property, or violations of this chapter, unless specifically
2104	excluded in this part.
2105	Section 16.  This act shall take effect July 1, 2009.

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