CS/HB 959

1	A bill to be entitled
2	An act relating to residential properties; creating s.
3	627.714, F.S.; requiring that coverage under a unit
4	owner's policy for certain assessments include at least a
5	minimum amount of loss assessment coverage; requiring that
6	every property insurance policy to an individual unit
7	owner contain a specified provision; amending s. 633.0215,
8	F.S.; providing an exemption, if certain conditions are
9	met, from the requirement that certain condominiums,
10	cooperatives, and multifamily residential buildings
11	install a manual fire alarm system as required in the Life
12	Safety Code; amending s. 718.111, F.S.; deleting a
13	requirement for the board of a condominium to hold a
14	meeting open to unit owners to establish the amount of an
15	insurance deductible; revising the property to which a
16	property insurance policy for a condominium association
17	applies; revising the requirements for a condominium unit
18	owner's property insurance policy; amending s. 718.112,
19	F.S.; prohibiting an authority having jurisdiction from
20	requiring the completion of retrofitting of common areas
21	with a sprinkler system before a specified date; providing
22	that certain condominiums need not retrofit the inside of
23	units with fire alarm systems; amending s. 718.116, F.S.;
24	requiring a tenant in a unit owned by a person who is
25	delinquent in the payment of a monetary obligation to the
26	condominium association to pay rent to the association
27	under certain circumstances; requiring a specified written
28	notice; authorizing the condominium association to sue
29	such tenant who fails to pay rent for eviction under
30	certain circumstances; providing that the tenant is immune
31	from claims from the unit owner as the result of paying
32	rent to the association under certain circumstances;
33	creating s. 718.1165, F.S.; defining the term "common area
34	facilities" for specified purposes; authorizing a
35	condominium association, multicondominium association, or
36	master condominium association to disallow the use of
37	common area facilities by unit owners who are delinquent
38	in the payment of association fees by more than a
39	specified number of days; creating s. 720.314, F.S.;
40	defining the term "common area facilities" for specified
41	purposes; authorizing a homeowners' association to
42	disallow the use of common area facilities by parcel
43	owners who are delinquent in the payment of association
44	fees by more than a specified number of days; repealing s.
45	553.509(2), F.S., relating to a requirement that public
46	elevators capable of operating from an alternate power
47	source be installed in certain multifamily dwellings or
48	condominiums; providing an effective date.
49
50	Be It Enacted by the Legislature of the State of Florida:
51
52	Section 1.  Section 627.714, Florida Statutes, is created
53	to read:
54	627.714  Residential condominium unit owner coverage; loss
55	assessment coverage required; excess coverage provision
56	required.-For policies issued or renewed on or after July 1,
57	2010, coverage under a unit owner's residential property policy
58	must include property loss assessment coverage of at least
59	$2,000 for all assessments made as a result of the same direct
60	loss to the property, regardless of the number of assessments,
61	owned by all members of the association collectively when such
62	loss is of the type of loss covered by the unit owner's
63	residential property insurance policy, to which a deductible of
64	no more than $250 per direct property loss shall apply. If a
65	deductible was or will be applied to other property loss
66	sustained by the unit owner resulting from the same direct loss
67	to the property, no deductible shall apply to the loss
68	assessment coverage. Every individual unit owner's residential
69	property policy must contain a provision stating that the
70	coverage afforded by such policy is excess coverage over the
71	amount recoverable under any other policy covering the same
72	property.
73	Section 2.  Subsection (13) is added to section 633.0215,
74	Florida Statutes, to read:
75	633.0215  Florida Fire Prevention Code.-
76	(13)  A condominium, cooperative, or multifamily
77	residential building that is less than four stories in height
78	and that has a corridor providing an exterior means of egress is
79	exempt from the requirement to install a manual fire alarm
80	system under s. 9.6 of the Life Safety Code adopted in the
81	Florida Fire Prevention Code.
82	Section 3.  Paragraphs (a), (b), (c), (d), (f), (g), (j),
83	and (n) of subsection (11) of section 718.111, Florida Statutes,
84	are amended to read:
85	718.111  The association.-
86	(11)  INSURANCE.-In order to protect the safety, health,
87	and welfare of the people of the State of Florida and to ensure
88	consistency in the provision of insurance coverage to
89	condominiums and their unit owners, this subsection applies to
90	every residential condominium in the state, regardless of the
91	date of its declaration of condominium. It is the intent of the
92	Legislature to encourage lower or stable insurance premiums for
93	associations described in this subsection.
94	(a)  Adequate property hazard insurance, regardless of any
95	requirement in the declaration of condominium for coverage by
96	the association for full insurable value, replacement cost, or
97	similar coverage, must shall be based on upon the replacement
98	cost of the property to be insured as determined by an
99	independent insurance appraisal or update of a prior appraisal.
100	The replacement cost must full insurable value shall be
101	determined at least once every 36 months.
102	1.  An association or group of associations may provide
103	adequate property hazard insurance through a self-insurance fund
104	that complies with the requirements of ss. 624.460-624.488.
105	2.  The association may also provide adequate property
106	hazard insurance coverage for a group of at least no fewer than
107	three communities created and operating under this chapter,
108	chapter 719, chapter 720, or chapter 721 by obtaining and
109	maintaining for such communities insurance coverage sufficient
110	to cover an amount equal to the probable maximum loss for the
111	communities for a 250-year windstorm event. Such probable
112	maximum loss must be determined through the use of a competent
113	model that has been accepted by the Florida Commission on
114	Hurricane Loss Projection Methodology. A No policy or program
115	providing such coverage may not shall be issued or renewed after
116	July 1, 2008, unless it has been reviewed and approved by the
117	Office of Insurance Regulation. The review and approval must
118	shall include approval of the policy and related forms pursuant
119	to ss. 627.410 and 627.411, approval of the rates pursuant to s.
120	627.062, a determination that the loss model approved by the
121	commission was accurately and appropriately applied to the
122	insured structures to determine the 250-year probable maximum
123	loss, and a determination that complete and accurate disclosure
124	of all material provisions is provided to condominium unit
125	owners before prior to execution of the agreement by a
126	condominium association.
127	3.  When determining the adequate amount of property hazard
128	insurance coverage, the association may consider deductibles as
129	determined by this subsection.
130	(b)  If an association is a developer-controlled
131	association, the association shall exercise its best efforts to
132	obtain and maintain insurance as described in paragraph (a).
133	Failure to obtain and maintain adequate property hazard
134	insurance during any period of developer control constitutes a
135	breach of fiduciary responsibility by the developer-appointed
136	members of the board of directors of the association, unless the
137	members can show that despite such failure, they have made their
138	best efforts to maintain the required coverage.
139	(c)  Policies may include deductibles as determined by the
140	board.
141	1.  The deductibles must shall be consistent with industry
142	standards and prevailing practice for communities of similar
143	size and age, and having similar construction and facilities in
144	the locale where the condominium property is situated.
145	2.  The deductibles may be based upon available funds,
146	including reserve accounts, or predetermined assessment
147	authority at the time the insurance is obtained.
148	3.  The board shall establish the amount of deductibles
149	based upon the level of available funds and predetermined
150	assessment authority at a meeting of the board. Such meeting
151	shall be open to all unit owners in the manner set forth in s.
152	718.112(2)(e). The notice of such meeting must state the
153	proposed deductible and the available funds and the assessment
154	authority relied upon by the board and estimate any potential
155	assessment amount against each unit, if any. The meeting
156	described in this paragraph may be held in conjunction with a
157	meeting to consider the proposed budget or an amendment thereto.
158	(d)  An association controlled by unit owners operating as
159	a residential condominium shall use its best efforts to obtain
160	and maintain adequate property insurance to protect the
161	association, the association property, the common elements, and
162	the condominium property that must is required to be insured by
163	the association pursuant to this subsection.
164	(f)  Every property hazard insurance policy issued or
165	renewed on or after January 1, 2009, for the purpose of
166	protecting the condominium must shall provide primary coverage
167	for:
168	1.  All portions of the condominium property as originally
169	installed or replacement of like kind and quality, in accordance
170	with the original plans and specifications.
171	2.  All alterations or additions made to the condominium
172	property or association property pursuant to s. 718.113(2).
173	3.  The coverage must shall exclude all personal property
174	within the unit or limited common elements, and floor, wall, and
175	ceiling coverings, electrical fixtures, appliances, water
176	heaters, water filters, built-in cabinets and countertops, and
177	window treatments, including curtains, drapes, blinds, hardware,
178	and similar window treatment components, or replacements of any
179	of the foregoing which are located within the boundaries of the
180	unit and serve only such unit. Such property and any insurance
181	thereupon is the responsibility of the unit owner.
182	(g)  A condominium unit owner's policy must conform to the
183	requirements of s. 627.714. Every hazard insurance policy issued
184	or renewed on or after January 1, 2009, to an individual unit
185	owner must contain a provision stating that the coverage
186	afforded by such policy is excess coverage over the amount
187	recoverable under any other policy covering the same property.
188	Such policies must include special assessment coverage of no
189	less than $2,000 per occurrence. An insurance policy issued to
190	an individual unit owner providing such coverage does not
191	provide rights of subrogation against the condominium
192	association operating the condominium in which such individual's
193	unit is located.
194	1.  All improvements or additions to the condominium
195	property that benefit fewer than all unit owners shall be
196	insured by the unit owner or owners having the use thereof, or
197	may be insured by the association at the cost and expense of the
198	unit owners having the use thereof.
199	2.  The association shall require each owner to provide
200	evidence of a currently effective policy of hazard and liability
201	insurance upon request, but not more than once per year. Upon
202	the failure of an owner to provide a certificate of insurance
203	issued by an insurer approved to write such insurance in this
204	state within 30 days after the date on which a written request
205	is delivered, the association may purchase a policy of insurance
206	on behalf of an owner. The cost of such a policy, together with
207	reconstruction costs undertaken by the association but which are
208	the responsibility of the unit owner, may be collected in the
209	manner provided for the collection of assessments in s. 718.116.
210	1.3.  All reconstruction work after a property casualty
211	loss must shall be undertaken by the association except as
212	otherwise authorized in this section. A unit owner may undertake
213	reconstruction work on portions of the unit with the prior
214	written consent of the board of administration. However, such
215	work may be conditioned upon the approval of the repair methods,
216	the qualifications of the proposed contractor, or the contract
217	that is used for that purpose. A unit owner must shall obtain
218	all required governmental permits and approvals before prior to
219	commencing reconstruction.
220	2.4.  Unit owners are responsible for the cost of
221	reconstruction of any portions of the condominium property for
222	which the unit owner is required to carry property casualty
223	insurance, and any such reconstruction work undertaken by the
224	association is shall be chargeable to the unit owner and
225	enforceable as an assessment pursuant to s. 718.116. The
226	association must be an additional named insured and loss payee
227	on all casualty insurance policies issued to unit owners in the
228	condominium operated by the association.
229	3.5.  A multicondominium association may elect, by a
230	majority vote of the collective members of the condominiums
231	operated by the association, to operate the such condominiums as
232	a single condominium for purposes of insurance matters,
233	including, but not limited to, the purchase of the property
234	hazard insurance required by this section and the apportionment
235	of deductibles and damages in excess of coverage. The election
236	to aggregate the treatment of insurance premiums, deductibles,
237	and excess damages constitutes an amendment to the declaration
238	of all condominiums operated by the association, and the costs
239	of insurance must shall be stated in the association budget. The
240	amendments must shall be recorded as required by s. 718.110.
241	(j)  Any portion of the condominium property that must
242	required to be insured by the association against property
243	casualty loss pursuant to paragraph (f) which is damaged by
244	casualty shall be reconstructed, repaired, or replaced as
245	necessary by the association as a common expense. All property
246	hazard insurance deductibles, uninsured losses, and other
247	damages in excess of property hazard insurance coverage under
248	the property hazard insurance policies maintained by the
249	association are a common expense of the condominium, except
250	that:
251	1.  A unit owner is responsible for the costs of repair or
252	replacement of any portion of the condominium property not paid
253	by insurance proceeds, if such damage is caused by intentional
254	conduct, negligence, or failure to comply with the terms of the
255	declaration or the rules of the association by a unit owner, the
256	members of his or her family, unit occupants, tenants, guests,
257	or invitees, without compromise of the subrogation rights of the
258	any insurer as set forth in paragraph (g).
259	2.  The provisions of subparagraph 1. regarding the
260	financial responsibility of a unit owner for the costs of
261	repairing or replacing other portions of the condominium
262	property also apply to the costs of repair or replacement of
263	personal property of other unit owners or the association, as
264	well as other property, whether real or personal, which the unit
265	owners are required to insure under paragraph (g).
266	3.  To the extent the cost of repair or reconstruction for
267	which the unit owner is responsible under this paragraph is
268	reimbursed to the association by insurance proceeds, and, to the
269	extent the association has collected the cost of such repair or
270	reconstruction from the unit owner, the association shall
271	reimburse the unit owner without the waiver of any rights of
272	subrogation.
273	4.  The association is not obligated to pay for
274	reconstruction or repairs of property casualty losses as a
275	common expense if the property casualty losses were known or
276	should have been known to a unit owner and were not reported to
277	the association until after the insurance claim of the
278	association for that property casualty was settled or resolved
279	with finality, or denied because on the basis that it was
280	untimely filed.
281	(n)  The association is not obligated to pay for any
282	reconstruction or repair expenses due to property casualty loss
283	to any improvements installed by a current or former owner of
284	the unit or by the developer if the improvement benefits only
285	the unit for which it was installed and is not part of the
286	standard improvements installed by the developer on all units as
287	part of original construction, whether or not such improvement
288	is located within the unit. This paragraph does not relieve any
289	party of its obligations regarding recovery due under any
290	insurance implemented specifically for any such improvements.
291	Section 4.  Paragraph (l) of subsection (2) of section
292	718.112, Florida Statutes, is amended to read:
293	718.112  Bylaws.-
294	(2)  REQUIRED PROVISIONS.-The bylaws shall provide for the
295	following and, if they do not do so, shall be deemed to include
296	the following:
297	(l)  Certificate of compliance.-There shall be a provision
298	that a certificate of compliance from a licensed electrical
299	contractor or electrician may be accepted by the association's
300	board as evidence of compliance of the condominium units with
301	the applicable fire and life safety code. Notwithstanding the
302	provisions of chapter 633 or of any other code, statute,
303	ordinance, administrative rule, or regulation, or any
304	interpretation of the foregoing, an association, condominium, or
305	unit owner is not obligated to retrofit the common elements or
306	units of a residential condominium with a fire sprinkler system
307	or other engineered lifesafety system in a building that has
308	been certified for occupancy by the applicable governmental
309	entity, if the unit owners have voted to forego such
310	retrofitting and engineered lifesafety system by the affirmative
311	vote of two-thirds of all voting interests in the affected
312	condominium. However, a condominium association may not vote to
313	forego the retrofitting with a fire sprinkler system of common
314	areas in a high-rise building. For purposes of this subsection,
315	the term "high-rise building" means a building that is greater
316	than 75 feet in height where the building height is measured
317	from the lowest level of fire department access to the floor of
318	the highest occupiable story. For purposes of this subsection,
319	the term "common areas" means any enclosed hallway, corridor,
320	lobby, stairwell, or entryway. In no event shall the local
321	authority having jurisdiction require completion of retrofitting
322	of common areas with a sprinkler system before the end of 2019
323	2014. A condominium that has 1 1/2 hour or higher fire-rated
324	interior walls separating condominium units and that is not a
325	high-rise building need not retrofit the inside of units with
326	fire alarm systems.
327	1.  A vote to forego retrofitting may be obtained by
328	limited proxy or by a ballot personally cast at a duly called
329	membership meeting, or by execution of a written consent by the
330	member, and shall be effective upon the recording of a
331	certificate attesting to such vote in the public records of the
332	county where the condominium is located. The association shall
333	mail, hand deliver, or electronically transmit to each unit
334	owner written notice at least 14 days prior to such membership
335	meeting in which the vote to forego retrofitting of the required
336	fire sprinkler system is to take place. Within 30 days after the
337	association's opt-out vote, notice of the results of the opt-out
338	vote shall be mailed, hand delivered, or electronically
339	transmitted to all unit owners. Evidence of compliance with this
340	30-day notice shall be made by an affidavit executed by the
341	person providing the notice and filed among the official records
342	of the association. After such notice is provided to each owner,
343	a copy of such notice shall be provided by the current owner to
344	a new owner before prior to closing and shall be provided by a
345	unit owner to a renter before prior to signing a lease.
346	2.  As part of the information collected annually from
347	condominiums, the division shall require condominium
348	associations to report the membership vote and recording of a
349	certificate under this subsection and, if retrofitting has been
350	undertaken, the per-unit cost of such work. The division shall
351	annually report to the Division of State Fire Marshal of the
352	Department of Financial Services the number of condominiums that
353	have elected to forego retrofitting.
354	Section 5.  Subsection (11) is added to section 718.116,
355	Florida Statutes, to read:
356	718.116  Assessments; liability; lien and priority;
357	interest; collection.-
358	(11)  If the unit is occupied by a tenant and the unit
359	owner is delinquent in paying any monetary obligation due to the
360	association, the association may make a written demand that the
361	tenant pay the future monetary obligations related to the
362	condominium unit to the association, and the tenant must make
363	such payment. The demand is continuing in nature and, upon
364	demand, the tenant must pay the monetary obligations to the
365	association until the association releases the tenant or the
366	tenant discontinues tenancy in the unit.
367	(a)  The association must mail written notice to the unit
368	owner of the association's demand that the tenant make payments
369	to the association. Both the demand to tenant, and the notice to
370	the unit owner, must contain the following statement in no less
371	than 12-point type:
372
373	IF A CONDOMINIUM OWNER IS DELINQUENT IN PAYMENTS OWED TO
374	THE CONDOMINIUM ASSOCIATION, FLORIDA LAW ALLOWS THE
375	CONDOMINIUM ASSOCIATION TO REQUIRE TENANTS TO PAY
376	ASSESSMENTS TO THE ASSOCIATION AND DEDUCT THE AMOUNT OF THE
377	ASSESSMENTS FROM THE RENT OWED TO THE CONDOMINIUM OWNER.
378	ASSESSMENTS PAID BY THE TENANT WILL BE CREDITED TO THE UNIT
379	OWNER'S ACCOUNT WITH THE ASSOCIATION. THE APPLICABLE LAW IS
380	SECTION 718.116(11), FLORIDA STATUTES. THE CONDOMINIUM
381	OWNER MAY NOT EVICT OR ATTEMPT TO EVICT A TENANT BECAUSE
382	THE TENANT COMPLIES WITH THIS LAW. THE TENANT IS ENTITLED
383	TO ATTORNEY'S FEES FROM THE CONDOMINIUM OWNER IF THE
384	CONDOMINIUM OWNER ATTEMPTS TO EVICT OR OTHERWISE SUE A
385	TENANT BECAUSE THE TENANT HAS COMPLIED WITH THIS LEGAL
386	REQUIREMENT. A CONDOMINIUM UNIT OWNER WHO DISAGREES WITH
387	THIS DEMAND UPON THE TENANT SHOULD CONTACT THE ASSOCIATION.
388
389	(b)  The association shall, upon request, provide the
390	tenant with written receipts for payments made. A tenant who
391	acts in good faith in response to a written demand from an
392	association is immune from any claim from the unit owner. A unit
393	owner has no cause of action against a tenant who makes a
394	payment to a condominium association in substantial compliance
395	with this subsection and who has paid the remaining rent to the
396	unit owner after deducting the payment to the condominium
397	association. The court shall award a tenant costs and attorney's
398	fees payable by a unit owner who wrongfully attempts to evict or
399	sue such a tenant.
400	(c)  If the tenant prepaid rent to the unit owner before
401	receiving the demand from the association and provides written
402	evidence of paying the rent to the association within 14 days
403	after receiving the demand, the tenant must make any subsequent
404	rental payments to the association to be credited against the
405	monetary obligations of the unit owner to the association.
406	(d)  The tenant is not liable for increases in the amount
407	of the monetary obligations due unless the tenant was notified
408	in writing of the increase at least 10 days before the date the
409	rent is due. The liability of the tenant may not exceed the
410	amount due from the tenant to the tenant's landlord. The
411	tenant's landlord shall provide the tenant a credit against
412	rents due to the unit owner in the amount of moneys paid to the
413	association under this subsection.
414	(e)  The association may issue notices under s. 83.56 and
415	may sue for eviction under ss. 83.59-83.625 as if the
416	association were a landlord under part II of chapter 83 if the
417	tenant fails to pay a required payment to the association.
418	However, the association is not otherwise considered a landlord
419	under chapter 83 and specifically has no duties under s. 83.51.
420	(f)  The tenant does not, by virtue of payment of monetary
421	obligations to the association, have any of the rights of a unit
422	owner to vote in any election or to examine the books and
423	records of the association.
424	(g)  A court may supersede the effect of this subsection by
425	appointing a receiver.
426	Section 6.  Section 718.1165, Florida Statutes, is created
427	to read:
428	718.1165  Common area facilities; restriction of use.-
429	(1)  As used in this section, the term "common area
430	facilities" includes, but is not limited to, any clubhouse,
431	entertainment facility, exercise facility, swimming pool, tennis
432	court, or other recreation area owned or maintained by a
433	condominium association, multicondominium association, or master
434	condominium association and provided for use by members of a
435	condominium association.
436	(2)  A condominium association, multicondominium
437	association, or master condominium association may disallow the
438	use of common area facilities by a condominium unit owner who is
439	delinquent in the payment of condominium association fees by
440	more than 90 days.
441	Section 7.  Section 720.314, Florida Statutes, is created
442	to read:
443	720.314  Common area facilities; restriction of use.-
444	(1)  As used in this section, the term "common area
445	facilities" includes, but is not limited to, any clubhouse,
446	entertainment facility, exercise facility, swimming pool, tennis
447	court, or other recreation area owned or maintained by a
448	homeowners' association and provided for use by members of such
449	association.
450	(2)  A homeowners' association may disallow the use of
451	common area facilities by parcel owners who are delinquent in
452	the payment of association fees by more than 90 days.
453	Section 8.  Subsection (2) of section 553.509, Florida
454	Statutes, is repealed.
455	Section 9.  This act shall take effect July 1, 2010.

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