| 1 | A bill to be entitled |
| 2 | An act relating to community associations; amending s. |
| 3 | 718.111, F.S.; requiring an insurance company insuring |
| 4 | condominium association property to provide notice to unit |
| 5 | owners if the insurance will be cancelled or not renewed |
| 6 | by the association; authorizing a majority of the voting |
| 7 | interests of the association to direct the board to obtain |
| 8 | substitute coverage; amending s. 718.113, F.S.; |
| 9 | authorizing the board of a condominium association to |
| 10 | install impact glass or other code-compliant windows under |
| 11 | certain circumstances; amending s. 718.116, F.S.; |
| 12 | providing that a condominium association may not be deemed |
| 13 | to be the previous owner of a condominium unit under |
| 14 | certain circumstances; requiring a tenant to pay all of a |
| 15 | unit owner's outstanding monetary obligations relating to |
| 16 | the unit to the condominium association under certain |
| 17 | circumstances; amending s. 720.303, F.S.; providing that a |
| 18 | member of a homeowners' association has the right to speak |
| 19 | on any matter placed on the agenda of the board of the |
| 20 | association for at least 3 minutes; amending s. 720.306, |
| 21 | F.S.; specifying additional requirements for elections for |
| 22 | members of the board of a homeowners' association; |
| 23 | specifying additional requirements for candidates to be a |
| 24 | member of the board of a homeowners' association; amending |
| 25 | s. 720.3085, F.S.; providing that a condominium |
| 26 | homeowners' association may not be deemed to be the |
| 27 | previous owner of a parcel under certain circumstances; |
| 28 | providing an effective date. |
| 29 |
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| 30 | Be It Enacted by the Legislature of the State of Florida: |
| 31 |
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| 32 | Section 1. Paragraph (d) of subsection (11) of section |
| 33 | 718.111, Florida Statutes, is amended to read: |
| 34 | 718.111 The association.- |
| 35 | (11) INSURANCE.-In order to protect the safety, health, |
| 36 | and welfare of the people of the State of Florida and to ensure |
| 37 | consistency in the provision of insurance coverage to |
| 38 | condominiums and their unit owners, this subsection applies to |
| 39 | every residential condominium in the state, regardless of the |
| 40 | date of its declaration of condominium. It is the intent of the |
| 41 | Legislature to encourage lower or stable insurance premiums for |
| 42 | associations described in this subsection. |
| 43 | (d) An association controlled by unit owners operating as |
| 44 | a residential condominium shall use its best efforts to obtain |
| 45 | and maintain adequate property insurance to protect the |
| 46 | association, the association property, the common elements, and |
| 47 | the condominium property that must be insured by the association |
| 48 | pursuant to this subsection. However, if an association having |
| 49 | 50 or fewer units cancels or does not renew insurance coverage |
| 50 | required or permitted under this subsection, the insurance |
| 51 | company must notify all unit owners by certified and regular |
| 52 | mail at least 30 days before the effective date of a termination |
| 53 | of coverage. Upon receipt of the notice, a majority of the |
| 54 | voting interests may agree in writing to direct the board to |
| 55 | obtain substitute coverage for the association as a common |
| 56 | expense. |
| 57 | Section 2. Subsection (5) of section 718.113, Florida |
| 58 | Statutes, is amended to read: |
| 59 | 718.113 Maintenance; limitation upon improvement; display |
| 60 | of flag; hurricane shutters; display of religious decorations.- |
| 61 | (5) Each board of administration shall adopt hurricane |
| 62 | shutter specifications for each building within each condominium |
| 63 | operated by the association which shall include color, style, |
| 64 | and other factors deemed relevant by the board. All |
| 65 | specifications adopted by the board must shall comply with the |
| 66 | applicable building code. |
| 67 | (a) The board may, subject to the provisions of s. |
| 68 | 718.3026, and the approval of a majority of voting interests of |
| 69 | the condominium, install hurricane shutters, impact glass or |
| 70 | other code-compliant windows, or hurricane protection that |
| 71 | complies with or exceeds the applicable building code. However, |
| 72 | or both, except that a vote of the owners is not required if the |
| 73 | maintenance, repair, and replacement of hurricane shutters, |
| 74 | impact glass, or other code-compliant windows or other forms of |
| 75 | hurricane protection are the responsibility of the association |
| 76 | pursuant to the declaration of condominium. If However, where |
| 77 | hurricane protection or laminated glass or window film |
| 78 | architecturally designed to function as hurricane protection |
| 79 | which complies with or exceeds the current applicable building |
| 80 | code has been previously installed, the board may not install |
| 81 | hurricane shutters, or other hurricane protection, or impact |
| 82 | glass or other code-compliant windows except upon approval by a |
| 83 | majority vote of the voting interests. |
| 84 | (b) The association is shall be responsible for the |
| 85 | maintenance, repair, and replacement of the hurricane shutters |
| 86 | or other hurricane protection authorized by this subsection if |
| 87 | such hurricane shutters or other hurricane protection is the |
| 88 | responsibility of the association pursuant to the declaration of |
| 89 | condominium. If the hurricane shutters or other hurricane |
| 90 | protection authorized by this subsection are the responsibility |
| 91 | of the unit owners pursuant to the declaration of condominium, |
| 92 | the responsibility for the maintenance, repair, and replacement |
| 93 | of such items are shall be the responsibility of the unit owner. |
| 94 | (c) The board may operate shutters installed pursuant to |
| 95 | this subsection without permission of the unit owners only if |
| 96 | where such operation is necessary to preserve and protect the |
| 97 | condominium property and association property. The installation, |
| 98 | replacement, operation, repair, and maintenance of such shutters |
| 99 | in accordance with the procedures set forth in this paragraph |
| 100 | are herein shall not be deemed a material alteration to the |
| 101 | common elements or association property within the meaning of |
| 102 | this section. |
| 103 | (d) Notwithstanding any provision to the contrary in the |
| 104 | condominium documents, if approval is required by the documents, |
| 105 | a board may shall not refuse to approve the installation or |
| 106 | replacement of hurricane shutters by a unit owner conforming to |
| 107 | the specifications adopted by the board. |
| 108 | Section 3. Subsections (1) and (11) of section 718.116, |
| 109 | Florida Statutes, are amended to read: |
| 110 | 718.116 Assessments; liability; lien and priority; |
| 111 | interest; collection.- |
| 112 | (1)(a) A unit owner, regardless of how his or her title |
| 113 | has been acquired, including by purchase at a foreclosure sale |
| 114 | or by deed in lieu of foreclosure, is liable for all assessments |
| 115 | which come due while he or she is the unit owner. Additionally, |
| 116 | a unit owner is jointly and severally liable with the previous |
| 117 | owner for all unpaid assessments that came due up to the time of |
| 118 | transfer of title. This liability is without prejudice to any |
| 119 | right the owner may have to recover from the previous owner the |
| 120 | amounts paid by the owner. Notwithstanding the provisions of |
| 121 | this paragraph, the association may not be deemed the previous |
| 122 | owner for purposes of joint and several liability for |
| 123 | assessments which came due while the association owned the unit |
| 124 | or units on which it has foreclosed or taken title via deed in |
| 125 | lieu of foreclosure. |
| 126 | (b) The liability of a first mortgagee or its successor or |
| 127 | assignees who acquire title to a unit by foreclosure or by deed |
| 128 | in lieu of foreclosure for the unpaid assessments that became |
| 129 | due before the mortgagee's acquisition of title is limited to |
| 130 | the lesser of: |
| 131 | 1. The unit's unpaid common expenses and regular periodic |
| 132 | assessments which accrued or came due during the 12 months |
| 133 | immediately preceding the acquisition of title and for which |
| 134 | payment in full has not been received by the association; or |
| 135 | 2. One percent of the original mortgage debt. The |
| 136 | provisions of this paragraph apply only if the first mortgagee |
| 137 | joined the association as a defendant in the foreclosure action. |
| 138 | Joinder of the association is not required if, on the date the |
| 139 | complaint is filed, the association was dissolved or did not |
| 140 | maintain an office or agent for service of process at a location |
| 141 | which was known to or reasonably discoverable by the mortgagee. |
| 142 | (c) The person acquiring title shall pay the amount owed |
| 143 | to the association within 30 days after transfer of title. |
| 144 | Failure to pay the full amount when due shall entitle the |
| 145 | association to record a claim of lien against the parcel and |
| 146 | proceed in the same manner as provided in this section for the |
| 147 | collection of unpaid assessments. |
| 148 | (d) With respect to each timeshare unit, each owner of a |
| 149 | timeshare estate therein is jointly and severally liable for the |
| 150 | payment of all assessments and other charges levied against or |
| 151 | with respect to that unit pursuant to the declaration or bylaws, |
| 152 | except to the extent that the declaration or bylaws may provide |
| 153 | to the contrary. |
| 154 | (e) Notwithstanding the provisions of paragraph (b), a |
| 155 | first mortgagee or its successor or assignees who acquire title |
| 156 | to a condominium unit as a result of the foreclosure of the |
| 157 | mortgage or by deed in lieu of foreclosure of the mortgage shall |
| 158 | be exempt from liability for all unpaid assessments attributable |
| 159 | to the parcel or chargeable to the previous owner which came due |
| 160 | prior to acquisition of title if the first mortgage was recorded |
| 161 | prior to April 1, 1992. If, however, the first mortgage was |
| 162 | recorded on or after April 1, 1992, or on the date the mortgage |
| 163 | was recorded, the declaration included language incorporating by |
| 164 | reference future amendments to this chapter, the provisions of |
| 165 | paragraph (b) shall apply. |
| 166 | (f) The provisions of this subsection are intended to |
| 167 | clarify existing law, and shall not be available in any case |
| 168 | where the unpaid assessments sought to be recovered by the |
| 169 | association are secured by a lien recorded prior to the |
| 170 | recording of the mortgage. Notwithstanding the provisions of |
| 171 | chapter 48, the association shall be a proper party to intervene |
| 172 | in any foreclosure proceeding to seek equitable relief. |
| 173 | (g) For purposes of this subsection, the term "successor |
| 174 | or assignee" as used with respect to a first mortgagee includes |
| 175 | only a subsequent holder of the first mortgage. |
| 176 | (11) If the unit is occupied by a tenant and the unit |
| 177 | owner is delinquent in paying any monetary obligation due to the |
| 178 | association, the association may make a written demand that the |
| 179 | tenant pay the outstanding and future monetary obligations |
| 180 | related to the condominium unit to the association, and the |
| 181 | tenant must make such payment. The demand is continuing in |
| 182 | nature and, upon demand, the tenant must pay the monetary |
| 183 | obligations to the association until the association releases |
| 184 | the tenant or the tenant discontinues tenancy in the unit. The |
| 185 | association must mail written notice to the unit owner of the |
| 186 | association's demand that the tenant make payments to the |
| 187 | association. The association shall, upon request, provide the |
| 188 | tenant with written receipts for payments made. A tenant who |
| 189 | acts in good faith in response to a written demand from an |
| 190 | association is immune from any claim from the unit owner. |
| 191 | (a) If the tenant prepaid rent to the unit owner before |
| 192 | receiving the demand from the association and provides written |
| 193 | evidence of paying the rent to the association within 14 days |
| 194 | after receiving the demand, the tenant shall receive credit for |
| 195 | the prepaid rent for the applicable period and must make any |
| 196 | subsequent rental payments to the association to be credited |
| 197 | against the monetary obligations of the unit owner to the |
| 198 | association. |
| 199 | (b) The tenant is not liable for increases in the amount |
| 200 | of the monetary obligations due unless the tenant was notified |
| 201 | in writing of the increase at least 10 days before the date the |
| 202 | rent is due. The liability of the tenant may not exceed the |
| 203 | amount due from the tenant to the tenant's landlord. The |
| 204 | tenant's landlord shall provide the tenant a credit against |
| 205 | rents due to the unit owner in the amount of moneys paid to the |
| 206 | association under this section. |
| 207 | (c) The association may issue notices under s. 83.56 and |
| 208 | may sue for eviction under ss. 83.59-83.625 as if the |
| 209 | association were a landlord under part II of chapter 83 if the |
| 210 | tenant fails to pay a required payment to the association. |
| 211 | However, the association is not otherwise considered a landlord |
| 212 | under chapter 83 and specifically has no duties under s. 83.51. |
| 213 | (d) The tenant does not, by virtue of payment of monetary |
| 214 | obligations to the association, have any of the rights of a unit |
| 215 | owner to vote in any election or to examine the books and |
| 216 | records of the association. |
| 217 | (e) A court may supersede the effect of this subsection by |
| 218 | appointing a receiver. |
| 219 | Section 4. Paragraph (b) of subsection (2) of section |
| 220 | 720.303, Florida Statutes, is amended to read: |
| 221 | 720.303 Association powers and duties; meetings of board; |
| 222 | official records; budgets; financial reporting; association |
| 223 | funds; recalls.- |
| 224 | (2) BOARD MEETINGS.- |
| 225 | (b) Members have the right to attend all meetings of the |
| 226 | board and to speak on any matter placed on the agenda by |
| 227 | petition of the voting interests for at least 3 minutes. The |
| 228 | association may adopt written reasonable rules expanding the |
| 229 | right of members to speak and governing the frequency, duration, |
| 230 | and other manner of member statements, which rules must be |
| 231 | consistent with this paragraph and may include a sign-up sheet |
| 232 | for members wishing to speak. Notwithstanding any other law, |
| 233 | meetings between the board or a committee and the association's |
| 234 | attorney to discuss proposed or pending litigation or meetings |
| 235 | of the board held for the purpose of discussing personnel |
| 236 | matters are not required to be open to the members other than |
| 237 | directors. |
| 238 | Section 5. Subsection (9) of section 720.306, Florida |
| 239 | Statutes, is amended to read: |
| 240 | 720.306 Meetings of members; voting and election |
| 241 | procedures; amendments.- |
| 242 | (9)(a) ELECTIONS AND BOARD VACANCIES.-Notwithstanding the |
| 243 | governing documents of the association, elections of directors |
| 244 | must be conducted in accordance with the procedures set forth in |
| 245 | s. 718.112(2)(d)3. the governing documents of the association. |
| 246 | All members of the association are eligible to serve on the |
| 247 | board of directors, and a member may nominate himself or herself |
| 248 | as a candidate for the board at a meeting where the election is |
| 249 | to be held or, if the election process allows voting by absentee |
| 250 | ballot, in advance of the balloting. except as otherwise |
| 251 | provided in this section the governing documents, boards of |
| 252 | directors must be elected by a plurality of the votes cast by |
| 253 | eligible voters. |
| 254 | (b) Co-owners of a parcel may not serve as members of the |
| 255 | board of directors at the same time unless they own more than |
| 256 | one parcel or unless there are not enough eligible candidates to |
| 257 | fill the vacancies on the board at the time of the vacancy. A |
| 258 | person who is delinquent in the payment of any fee, fine, or |
| 259 | other obligation to the association by more than 90 days is not |
| 260 | eligible for board membership. A person who has been convicted |
| 261 | of any felony in this state or in a United States District or |
| 262 | Territorial Court, or who has been convicted of any offense in |
| 263 | another jurisdiction which would be considered a felony if |
| 264 | committed in this state, is not eligible for board membership |
| 265 | unless such felon's civil rights have been restored for at least |
| 266 | 5 years as of the date on which such person seeks election to |
| 267 | the board. The validity of an action by the board is not |
| 268 | affected if it is later determined that a member of the board is |
| 269 | ineligible for board membership due to having been convicted of |
| 270 | a felony. |
| 271 | (c) Any election dispute between a member and an |
| 272 | association must be submitted to mandatory binding arbitration |
| 273 | with the division. Such proceedings must be conducted in the |
| 274 | manner provided by s. 718.1255 and the procedural rules adopted |
| 275 | by the division. Unless otherwise provided in the bylaws, any |
| 276 | vacancy occurring on the board before the expiration of a term |
| 277 | may be filled by an affirmative vote of the majority of the |
| 278 | remaining directors, even if the remaining directors constitute |
| 279 | less than a quorum, or by the sole remaining director. In the |
| 280 | alternative, a board may hold an election to fill the vacancy, |
| 281 | in which case the election procedures must conform to the |
| 282 | requirements of the governing documents. Unless otherwise |
| 283 | provided in the bylaws, a board member appointed or elected |
| 284 | under this section is appointed for the unexpired term of the |
| 285 | seat being filled. Filling vacancies created by recall is |
| 286 | governed by s. 720.303(10) and rules adopted by the division. |
| 287 | Section 6. Subsection (2) of section 720.3085, Florida |
| 288 | Statutes, is amended to read: |
| 289 | 720.3085 Payment for assessments; lien claims.- |
| 290 | (2)(a) A parcel owner, regardless of how his or her title |
| 291 | to property has been acquired, including by purchase at a |
| 292 | foreclosure sale or by deed in lieu of foreclosure, is liable |
| 293 | for all assessments that come due while he or she is the parcel |
| 294 | owner. The parcel owner's liability for assessments may not be |
| 295 | avoided by waiver or suspension of the use or enjoyment of any |
| 296 | common area or by abandonment of the parcel upon which the |
| 297 | assessments are made. Notwithstanding the provisions of this |
| 298 | paragraph, the association may not be deemed the previous owner |
| 299 | for purposes of joint and several liability for assessments |
| 300 | which came due while the association owned the parcel or parcels |
| 301 | on which it has foreclosed or taken title via deed in lieu of |
| 302 | foreclosure. |
| 303 | (b) A parcel owner is jointly and severally liable with |
| 304 | the previous parcel owner for all unpaid assessments that came |
| 305 | due up to the time of transfer of title. This liability is |
| 306 | without prejudice to any right the present parcel owner may have |
| 307 | to recover any amounts paid by the present owner from the |
| 308 | previous owner. |
| 309 | (c) Notwithstanding anything to the contrary contained in |
| 310 | this section, the liability of a first mortgagee, or its |
| 311 | successor or assignee as a subsequent holder of the first |
| 312 | mortgage who acquires title to a parcel by foreclosure or by |
| 313 | deed in lieu of foreclosure for the unpaid assessments that |
| 314 | became due before the mortgagee's acquisition of title, shall be |
| 315 | the lesser of: |
| 316 | 1. The parcel's unpaid common expenses and regular |
| 317 | periodic or special assessments that accrued or came due during |
| 318 | the 12 months immediately preceding the acquisition of title and |
| 319 | for which payment in full has not been received by the |
| 320 | association; or |
| 321 | 2. One percent of the original mortgage debt. |
| 322 |
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| 323 | The limitations on first mortgagee liability provided by this |
| 324 | paragraph apply only if the first mortgagee filed suit against |
| 325 | the parcel owner and initially joined the association as a |
| 326 | defendant in the mortgagee foreclosure action. Joinder of the |
| 327 | association is not required if, on the date the complaint is |
| 328 | filed, the association was dissolved or did not maintain an |
| 329 | office or agent for service of process at a location that was |
| 330 | known to or reasonably discoverable by the mortgagee. |
| 331 | Section 7. This act shall take effect July 1, 2011. |