| 1 | A bill to be entitled |
| 2 | An act relating to condominium, cooperative, and |
| 3 | homeowners' associations; amending s. 633.0215, F.S.; |
| 4 | exempting certain residential buildings from a requirement |
| 5 | to install a manual fire alarm system; amending s. |
| 6 | 718.111, F.S.; revising provisions relating to the |
| 7 | official records of condominium associations; providing |
| 8 | for disclosure of certain employment agreements with and |
| 9 | compensation paid to association employees; amending s. |
| 10 | 718.112, F.S.; revising provisions relating to bylaws; |
| 11 | providing that board of administration meetings discussing |
| 12 | personnel matters are not open to unit owners; revising |
| 13 | requirements for electing the board of directors; |
| 14 | providing a definition; providing for continued office and |
| 15 | for filling vacancies under certain circumstances; |
| 16 | specifying unit owner eligibility for board membership; |
| 17 | requiring that certain educational curriculum be completed |
| 18 | within a specified time before or after the election or |
| 19 | appointment of a board director; providing application; |
| 20 | amending s. 718.113, F.S.; authorizing the board of a |
| 21 | condominium association to install impact glass or other |
| 22 | code-compliant windows under certain circumstances; |
| 23 | amending s. 718.114, F.S.; requiring the vote or written |
| 24 | consent of a majority of the total voting interests before |
| 25 | a condominium association may enter into certain |
| 26 | agreements to acquire leaseholds, memberships, or other |
| 27 | possessory or use interests; amending s. 718.116, F.S.; |
| 28 | revising provisions relating to condominium assessments; |
| 29 | requiring any rent payments received by an association |
| 30 | from a tenant to be applied to the unit owner's oldest |
| 31 | delinquent monetary obligation; conforming a cross- |
| 32 | reference; amending s. 718.117, F.S.; providing procedures |
| 33 | and requirements for termination of a condominium property |
| 34 | that has been totally destroyed or demolished; providing |
| 35 | procedures and requirements for partial termination of a |
| 36 | condominium property; requiring that a lien against a |
| 37 | condominium unit being terminated be transferred to the |
| 38 | proceeds of sale for certain portions of that property; |
| 39 | amending s. 718.303, F.S.; revising provisions relating to |
| 40 | imposing remedies against a delinquent unit owner or a |
| 41 | unit owner's tenant, guest, or invitee; providing for the |
| 42 | suspension of certain rights of use; revising provisions |
| 43 | relating to the suspension of a member's voting rights; |
| 44 | requiring that the suspension of certain rights of use and |
| 45 | voting rights be approved at a noticed board meeting; |
| 46 | amending s. 718.703, F.S.; redefining the term "bulk |
| 47 | assignee" and revising the definition of the term "bulk |
| 48 | buyer" for purposes of the Distressed Condominium Relief |
| 49 | Act; amending s. 718.704, F.S.; revising provisions |
| 50 | relating to the assignment and assumption of developer |
| 51 | rights by a bulk assignee; amending s. 718.705, F.S.; |
| 52 | revising provisions relating to the transfer of control of |
| 53 | a condominium board of administration to unit owners; |
| 54 | amending s. 718.706, F.S.; revising provisions relating to |
| 55 | the offering of units by a bulk assignee or bulk buyer; |
| 56 | amending s. 718.707, F.S.; revising the time limitation |
| 57 | for classification as a bulk assignee or bulk buyer; |
| 58 | amending s. 719.108, F.S.; requiring any rent payments |
| 59 | received by a cooperative association from a tenant to be |
| 60 | applied to the unit owner's oldest delinquent monetary |
| 61 | obligation; amending s. 719.303, F.S.; revising provisions |
| 62 | relating to imposing remedies against a delinquent unit |
| 63 | owner or a unit owner's tenant, guest, or invitee; |
| 64 | providing for the suspension of certain rights of use and |
| 65 | voting rights; requiring that the suspension of certain |
| 66 | rights of use and voting rights be approved at a noticed |
| 67 | board meeting; amending s. 720.301, F.S.; revising the |
| 68 | definition of the term "declaration of covenants"; |
| 69 | amending s. 720.303, F.S.; revising provisions relating to |
| 70 | records that are not accessible to members of a |
| 71 | homeowners' association; providing for disclosure of |
| 72 | employment agreements with and compensation paid to |
| 73 | association employees; amending s. 720.305, F.S.; revising |
| 74 | provisions relating to imposing remedies against a |
| 75 | delinquent member of a homeowners' association or any |
| 76 | member's tenant, guest, or invitee; providing for the |
| 77 | suspension of certain rights of use; revising provisions |
| 78 | relating to the suspension of a member's voting rights; |
| 79 | requiring that the suspension of certain rights of use and |
| 80 | voting rights be approved at a noticed board meeting; |
| 81 | amending s. 720.306, F.S.; specifying additional |
| 82 | requirements for candidates to be a member of the board of |
| 83 | a homeowners' association; amending s. 720.3085, F.S.; |
| 84 | requiring any rent payments received by an association |
| 85 | from a tenant to be applied to the parcel owner's oldest |
| 86 | delinquent monetary obligation; amending s. 720.309, F.S.; |
| 87 | providing for the allocation of communications services by |
| 88 | a homeowners' association; providing for the cancellation |
| 89 | of communication contracts; providing that hearing- |
| 90 | impaired or legally blind parcel owners and parcel owners |
| 91 | receiving certain supplemental security income or food |
| 92 | assistance may discontinue the service without incurring |
| 93 | certain costs; providing that parcel residents may not be |
| 94 | denied access to available franchised, licensed, or |
| 95 | certificated cable or video service providers under |
| 96 | certain circumstances; providing an effective date. |
| 97 |
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| 98 | Be It Enacted by the Legislature of the State of Florida: |
| 99 |
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| 100 | Section 1. Subsection (14) of section 633.0215, Florida |
| 101 | Statutes, is amended to read: |
| 102 | 633.0215 Florida Fire Prevention Code.- |
| 103 | (14) A condominium, cooperative, or multifamily |
| 104 | residential building that is less than four one or two stories |
| 105 | in height and has an exterior corridor providing a means of |
| 106 | egress is exempt from installing a manual fire alarm system as |
| 107 | required in s. 9.6 of the most recent edition of the Life Safety |
| 108 | Code adopted in the Florida Fire Prevention Code. This |
| 109 | subsection is intended to clarify existing law. |
| 110 | Section 2. Paragraphs (a) and (c) of subsection (12) of |
| 111 | section 718.111, Florida Statutes, are amended to read: |
| 112 | 718.111 The association.- |
| 113 | (12) OFFICIAL RECORDS.- |
| 114 | (a) From the inception of the association, the association |
| 115 | shall maintain each of the following items, if applicable, which |
| 116 | constitutes shall constitute the official records of the |
| 117 | association: |
| 118 | 1. A copy of the plans, permits, warranties, and other |
| 119 | items provided by the developer pursuant to s. 718.301(4). |
| 120 | 2. A photocopy of the recorded declaration of condominium |
| 121 | of each condominium operated by the association and of each |
| 122 | amendment to each declaration. |
| 123 | 3. A photocopy of the recorded bylaws of the association |
| 124 | and of each amendment to the bylaws. |
| 125 | 4. A certified copy of the articles of incorporation of |
| 126 | the association, or other documents creating the association, |
| 127 | and of each amendment thereto. |
| 128 | 5. A copy of the current rules of the association. |
| 129 | 6. A book or books that which contain the minutes of all |
| 130 | meetings of the association, of the board of administration, and |
| 131 | the of unit owners, which minutes must be retained for at least |
| 132 | 7 years. |
| 133 | 7. A current roster of all unit owners and their mailing |
| 134 | addresses, unit identifications, voting certifications, and, if |
| 135 | known, telephone numbers. The association shall also maintain |
| 136 | the electronic mailing addresses and facsimile the numbers |
| 137 | designated by unit owners for receiving notice sent by |
| 138 | electronic transmission of those unit owners consenting to |
| 139 | receive notice by electronic transmission. The electronic |
| 140 | mailing addresses and facsimile telephone numbers are not |
| 141 | accessible to unit owners must be removed from association |
| 142 | records if consent to receive notice by electronic transmission |
| 143 | is not provided in accordance with subparagraph (c)5 revoked. |
| 144 | However, the association is not liable for an inadvertent |
| 145 | erroneous disclosure of the electronic mail address or facsimile |
| 146 | the number for receiving electronic transmission of notices. |
| 147 | 8. All current insurance policies of the association and |
| 148 | condominiums operated by the association. |
| 149 | 9. A current copy of any management agreement, lease, or |
| 150 | other contract to which the association is a party or under |
| 151 | which the association or the unit owners have an obligation or |
| 152 | responsibility. |
| 153 | 10. Bills of sale or transfer for all property owned by |
| 154 | the association. |
| 155 | 11. Accounting records for the association and separate |
| 156 | accounting records for each condominium that which the |
| 157 | association operates. All accounting records must shall be |
| 158 | maintained for at least 7 years. Any person who knowingly or |
| 159 | intentionally defaces or destroys such accounting records |
| 160 | required to be created and maintained by this chapter during the |
| 161 | period for which such records are required to be maintained, or |
| 162 | who knowingly or intentionally fails to create or maintain such |
| 163 | records, with the intent of causing harm to the association or |
| 164 | one or more of its members, is personally subject to a civil |
| 165 | penalty pursuant to s. 718.501(1)(d). The accounting records |
| 166 | must include, but are not limited to: |
| 167 | a. Accurate, itemized, and detailed records of all |
| 168 | receipts and expenditures. |
| 169 | b. A current account and a monthly, bimonthly, or |
| 170 | quarterly statement of the account for each unit designating the |
| 171 | name of the unit owner, the due date and amount of each |
| 172 | assessment, the amount paid on upon the account, and the balance |
| 173 | due. |
| 174 | c. All audits, reviews, accounting statements, and |
| 175 | financial reports of the association or condominium. |
| 176 | d. All contracts for work to be performed. Bids for work |
| 177 | to be performed are also considered official records and must be |
| 178 | maintained by the association. |
| 179 | 12. Ballots, sign-in sheets, voting proxies, and all other |
| 180 | papers relating to voting by unit owners, which must be |
| 181 | maintained for 1 year from the date of the election, vote, or |
| 182 | meeting to which the document relates, notwithstanding paragraph |
| 183 | (b). |
| 184 | 13. All rental records if the association is acting as |
| 185 | agent for the rental of condominium units. |
| 186 | 14. A copy of the current question and answer sheet as |
| 187 | described in s. 718.504. |
| 188 | 15. All other records of the association not specifically |
| 189 | included in the foregoing which are related to the operation of |
| 190 | the association. |
| 191 | 16. A copy of the inspection report as described provided |
| 192 | in s. 718.301(4)(p). |
| 193 | (c) The official records of the association are open to |
| 194 | inspection by any association member or the authorized |
| 195 | representative of such member at all reasonable times. The right |
| 196 | to inspect the records includes the right to make or obtain |
| 197 | copies, at the reasonable expense, if any, of the member. The |
| 198 | association may adopt reasonable rules regarding the frequency, |
| 199 | time, location, notice, and manner of record inspections and |
| 200 | copying. The failure of an association to provide the records |
| 201 | within 10 working days after receipt of a written request |
| 202 | creates a rebuttable presumption that the association willfully |
| 203 | failed to comply with this paragraph. A unit owner who is denied |
| 204 | access to official records is entitled to the actual damages or |
| 205 | minimum damages for the association's willful failure to comply. |
| 206 | Minimum damages are shall be $50 per calendar day for up to 10 |
| 207 | days, beginning the calculation to begin on the 11th working day |
| 208 | after receipt of the written request. The failure to permit |
| 209 | inspection of the association records as provided herein |
| 210 | entitles any person prevailing in an enforcement action to |
| 211 | recover reasonable attorney's fees from the person in control of |
| 212 | the records who, directly or indirectly, knowingly denied access |
| 213 | to the records. Any person who knowingly or intentionally |
| 214 | defaces or destroys accounting records that are required by this |
| 215 | chapter to be maintained during the period for which such |
| 216 | records are required to be maintained, or who knowingly or |
| 217 | intentionally fails to create or maintain accounting records |
| 218 | that are required to be created or maintained, with the intent |
| 219 | of causing harm to the association or one or more of its |
| 220 | members, is personally subject to a civil penalty pursuant to s. |
| 221 | 718.501(1)(d). The association shall maintain an adequate number |
| 222 | of copies of the declaration, articles of incorporation, bylaws, |
| 223 | and rules, and all amendments to each of the foregoing, as well |
| 224 | as the question and answer sheet as described provided for in s. |
| 225 | 718.504 and year-end financial information required under in |
| 226 | this section, on the condominium property to ensure their |
| 227 | availability to unit owners and prospective purchasers, and may |
| 228 | charge its actual costs for preparing and furnishing these |
| 229 | documents to those requesting the documents. Notwithstanding the |
| 230 | provisions of this paragraph, the following records are not |
| 231 | accessible to unit owners: |
| 232 | 1. Any record protected by the lawyer-client privilege as |
| 233 | described in s. 90.502; and any record protected by the work- |
| 234 | product privilege, including a any record prepared by an |
| 235 | association attorney or prepared at the attorney's express |
| 236 | direction,; which reflects a mental impression, conclusion, |
| 237 | litigation strategy, or legal theory of the attorney or the |
| 238 | association, and which was prepared exclusively for civil or |
| 239 | criminal litigation or for adversarial administrative |
| 240 | proceedings, or which was prepared in anticipation of such |
| 241 | imminent civil or criminal litigation or imminent adversarial |
| 242 | administrative proceedings until the conclusion of the |
| 243 | litigation or adversarial administrative proceedings. |
| 244 | 2. Information obtained by an association in connection |
| 245 | with the approval of the lease, sale, or other transfer of a |
| 246 | unit. |
| 247 | 3. Personnel records of association or management company |
| 248 | employees, including, but not limited to, disciplinary, payroll, |
| 249 | health, and insurance records. For purposes of this |
| 250 | subparagraph, the term "personnel records" does not include |
| 251 | written employment agreements with an association employee or |
| 252 | management company, or budgetary or financial records that |
| 253 | indicate the compensation paid to an association employee. |
| 254 | 4. Medical records of unit owners. |
| 255 | 5. Social security numbers, driver's license numbers, |
| 256 | credit card numbers, e-mail addresses, telephone numbers, |
| 257 | facsimile numbers, emergency contact information, any addresses |
| 258 | of a unit owner other than as provided to fulfill the |
| 259 | association's notice requirements, and other personal |
| 260 | identifying information of any person, excluding the person's |
| 261 | name, unit designation, mailing address, and property address, |
| 262 | and any address, e-mail address, or facsimile number provided to |
| 263 | the association to fulfill the association's notice |
| 264 | requirements. However, an owner may consent in writing to the |
| 265 | disclosure of protected information described in this |
| 266 | subparagraph. The association is not liable for the inadvertent |
| 267 | disclosure of information that is protected under this |
| 268 | subparagraph if the information is included in an official |
| 269 | record of the association and is voluntarily provided by an |
| 270 | owner and not requested by the association. |
| 271 | 6. Any Electronic security measures measure that are is |
| 272 | used by the association to safeguard data, including passwords. |
| 273 | 7. The software and operating system used by the |
| 274 | association which allow the allows manipulation of data, even if |
| 275 | the owner owns a copy of the same software used by the |
| 276 | association. The data is part of the official records of the |
| 277 | association. |
| 278 | Section 3. Paragraphs (b), (c), and (d) of subsection (2) |
| 279 | of section 718.112, Florida Statutes, are amended to read: |
| 280 | 718.112 Bylaws.- |
| 281 | (2) REQUIRED PROVISIONS.-The bylaws shall provide for the |
| 282 | following and, if they do not do so, shall be deemed to include |
| 283 | the following: |
| 284 | (b) Quorum; voting requirements; proxies.- |
| 285 | 1. Unless a lower number is provided in the bylaws, the |
| 286 | percentage of voting interests required to constitute a quorum |
| 287 | at a meeting of the members is shall be a majority of the voting |
| 288 | interests. Unless otherwise provided in this chapter or in the |
| 289 | declaration, articles of incorporation, or bylaws, and except as |
| 290 | provided in subparagraph (d)4. (d)3., decisions shall be made by |
| 291 | owners of a majority of the voting interests represented at a |
| 292 | meeting at which a quorum is present. |
| 293 | 2. Except as specifically otherwise provided herein, after |
| 294 | January 1, 1992, unit owners may not vote by general proxy, but |
| 295 | may vote by limited proxies substantially conforming to a |
| 296 | limited proxy form adopted by the division. A No voting interest |
| 297 | or consent right allocated to a unit owned by the association |
| 298 | may not shall be exercised or considered for any purpose, |
| 299 | whether for a quorum, an election, or otherwise. Limited proxies |
| 300 | and general proxies may be used to establish a quorum. Limited |
| 301 | proxies shall be used for votes taken to waive or reduce |
| 302 | reserves in accordance with subparagraph (f)2.; for votes taken |
| 303 | to waive the financial reporting requirements of s. 718.111(13); |
| 304 | for votes taken to amend the declaration pursuant to s. 718.110; |
| 305 | for votes taken to amend the articles of incorporation or bylaws |
| 306 | pursuant to this section; and for any other matter for which |
| 307 | this chapter requires or permits a vote of the unit owners. |
| 308 | Except as provided in paragraph (d), a after January 1, 1992, no |
| 309 | proxy, limited or general, may not shall be used in the election |
| 310 | of board members. General proxies may be used for other matters |
| 311 | for which limited proxies are not required, and may also be used |
| 312 | in voting for nonsubstantive changes to items for which a |
| 313 | limited proxy is required and given. Notwithstanding the |
| 314 | provisions of this subparagraph, unit owners may vote in person |
| 315 | at unit owner meetings. This subparagraph does not Nothing |
| 316 | contained herein shall limit the use of general proxies or |
| 317 | require the use of limited proxies for any agenda item or |
| 318 | election at any meeting of a timeshare condominium association. |
| 319 | 3. Any proxy given is shall be effective only for the |
| 320 | specific meeting for which originally given and any lawfully |
| 321 | adjourned meetings thereof. A In no event shall any proxy is not |
| 322 | be valid for a period longer than 90 days after the date of the |
| 323 | first meeting for which it was given. Every proxy is revocable |
| 324 | at any time at the pleasure of the unit owner executing it. |
| 325 | 4. A member of the board of administration or a committee |
| 326 | may submit in writing his or her agreement or disagreement with |
| 327 | any action taken at a meeting that the member did not attend. |
| 328 | This agreement or disagreement may not be used as a vote for or |
| 329 | against the action taken or to create and may not be used for |
| 330 | the purposes of creating a quorum. |
| 331 | 5. If When any of the board or committee members meet by |
| 332 | telephone conference, those board or committee members attending |
| 333 | by telephone conference may be counted toward obtaining a quorum |
| 334 | and may vote by telephone. A telephone speaker must be used so |
| 335 | that the conversation of those board or committee members |
| 336 | attending by telephone may be heard by the board or committee |
| 337 | members attending in person as well as by any unit owners |
| 338 | present at a meeting. |
| 339 | (c) Board of administration meetings.-Meetings of the |
| 340 | board of administration at which a quorum of the members is |
| 341 | present are shall be open to all unit owners. A Any unit owner |
| 342 | may tape record or videotape the meetings of the board of |
| 343 | administration. The right to attend such meetings includes the |
| 344 | right to speak at such meetings with reference to all designated |
| 345 | agenda items. The division shall adopt reasonable rules |
| 346 | governing the tape recording and videotaping of the meeting. The |
| 347 | association may adopt written reasonable rules governing the |
| 348 | frequency, duration, and manner of unit owner statements. |
| 349 | 1. Adequate notice of all board meetings, which must |
| 350 | notice shall specifically identify all incorporate an |
| 351 | identification of agenda items, must shall be posted |
| 352 | conspicuously on the condominium property at least 48 continuous |
| 353 | hours before preceding the meeting except in an emergency. If 20 |
| 354 | percent of the voting interests petition the board to address an |
| 355 | item of business, the board shall at its next regular board |
| 356 | meeting or at a special meeting of the board, but not later than |
| 357 | 60 days after the receipt of the petition, shall place the item |
| 358 | on the agenda. Any item not included on the notice may be taken |
| 359 | up on an emergency basis by at least a majority plus one of the |
| 360 | board members of the board. Such emergency action must shall be |
| 361 | noticed and ratified at the next regular board meeting of the |
| 362 | board. However, written notice of any meeting at which |
| 363 | nonemergency special assessments, or at which amendment to rules |
| 364 | regarding unit use, will be considered must shall be mailed, |
| 365 | delivered, or electronically transmitted to the unit owners and |
| 366 | posted conspicuously on the condominium property at least not |
| 367 | less than 14 days before prior to the meeting. Evidence of |
| 368 | compliance with this 14-day notice requirement must shall be |
| 369 | made by an affidavit executed by the person providing the notice |
| 370 | and filed with among the official records of the association. |
| 371 | Upon notice to the unit owners, the board shall, by duly adopted |
| 372 | rule, designate a specific location on the condominium property |
| 373 | or association property where upon which all notices of board |
| 374 | meetings are to shall be posted. If there is no condominium |
| 375 | property or association property where upon which notices can be |
| 376 | posted, notices of board meetings shall be mailed, delivered, or |
| 377 | electronically transmitted at least 14 days before the meeting |
| 378 | to the owner of each unit. In lieu of or in addition to the |
| 379 | physical posting of the notice of any meeting of the board of |
| 380 | administration on the condominium property, the association may, |
| 381 | by reasonable rule, adopt a procedure for conspicuously posting |
| 382 | and repeatedly broadcasting the notice and the agenda on a |
| 383 | closed-circuit cable television system serving the condominium |
| 384 | association. However, if broadcast notice is used in lieu of a |
| 385 | notice posted physically posted on the condominium property, the |
| 386 | notice and agenda must be broadcast at least four times every |
| 387 | broadcast hour of each day that a posted notice is otherwise |
| 388 | required under this section. If When broadcast notice is |
| 389 | provided, the notice and agenda must be broadcast in a manner |
| 390 | and for a sufficient continuous length of time so as to allow an |
| 391 | average reader to observe the notice and read and comprehend the |
| 392 | entire content of the notice and the agenda. Notice of any |
| 393 | meeting in which regular or special assessments against unit |
| 394 | owners are to be considered for any reason must shall |
| 395 | specifically state that assessments will be considered and |
| 396 | provide the nature, estimated cost, and description of the |
| 397 | purposes for such assessments. |
| 398 | 2. Meetings of a committee to take final action on behalf |
| 399 | of the board or make recommendations to the board regarding the |
| 400 | association budget are subject to the provisions of this |
| 401 | paragraph. Meetings of a committee that does not take final |
| 402 | action on behalf of the board or make recommendations to the |
| 403 | board regarding the association budget are subject to the |
| 404 | provisions of this section, unless those meetings are exempted |
| 405 | from this section by the bylaws of the association. |
| 406 | 3. Notwithstanding any other law, the requirement that |
| 407 | board meetings and committee meetings be open to the unit owners |
| 408 | does not apply is inapplicable to: |
| 409 | a. Meetings between the board or a committee and the |
| 410 | association's attorney, with respect to proposed or pending |
| 411 | litigation, if when the meeting is held for the purpose of |
| 412 | seeking or rendering legal advice; or |
| 413 | b. Board meetings held for the purpose of discussing |
| 414 | personnel matters. |
| 415 | (d) Unit owner meetings.- |
| 416 | 1. An annual meeting of the unit owners shall be held at |
| 417 | the location provided in the association bylaws and, if the |
| 418 | bylaws are silent as to the location, the meeting shall be held |
| 419 | within 45 miles of the condominium property. However, such |
| 420 | distance requirement does not apply to an association governing |
| 421 | a timeshare condominium. |
| 422 | 2. Unless the bylaws provide otherwise, a vacancy on the |
| 423 | board caused by the expiration of a director's term shall be |
| 424 | filled by electing a new board member, and the election must be |
| 425 | by secret ballot. An election is not required However, if the |
| 426 | number of vacancies equals or exceeds the number of candidates, |
| 427 | an election is not required. For purposes of this paragraph, the |
| 428 | term "candidate" means an eligible person who has timely |
| 429 | submitted the written notice, as described in sub-subparagraph |
| 430 | 4.a., of his or her intention to become a candidate. Except in a |
| 431 | timeshare condominium, or if the staggered term of a board |
| 432 | member does not expire until a later annual meeting, or if all |
| 433 | members terms would otherwise expire but there are no |
| 434 | candidates, the terms of all board members of the board expire |
| 435 | at the annual meeting, and such board members may stand for |
| 436 | reelection unless prohibited otherwise permitted by the bylaws. |
| 437 | If the bylaws permit staggered terms of no more than 2 years and |
| 438 | upon approval of a majority of the total voting interests, the |
| 439 | association board members may serve 2-year staggered terms. If |
| 440 | the number of board members whose terms expire at the annual |
| 441 | meeting equals or have expired exceeds the number of candidates, |
| 442 | the candidates become members of the board effective upon the |
| 443 | adjournment of the annual meeting. Unless the bylaws provide |
| 444 | otherwise, any remaining vacancies shall be filled by the |
| 445 | affirmative vote of the majority of the directors making up the |
| 446 | newly constituted board even if the directors constitute less |
| 447 | than a quorum or there is only one director eligible members |
| 448 | showing interest in or demonstrating an intention to run for the |
| 449 | vacant positions, each board member whose term has expired is |
| 450 | eligible for reappointment to the board of administration and |
| 451 | need not stand for reelection. In a condominium association of |
| 452 | more than 10 units or in a condominium association that does not |
| 453 | include timeshare units or timeshare interests, coowners of a |
| 454 | unit may not serve as members of the board of directors at the |
| 455 | same time unless they own more than one unit or unless there are |
| 456 | not enough eligible candidates to fill the vacancies on the |
| 457 | board at the time of the vacancy. Any unit owner desiring to be |
| 458 | a candidate for board membership must comply with sub- |
| 459 | subparagraph 4.a. and must be eligible to serve on the board of |
| 460 | directors at the time of the deadline for submitting a notice of |
| 461 | intent to run in order to have his or her name listed as a |
| 462 | proper candidate on the ballot or to serve on the board 3.a. A |
| 463 | person who has been suspended or removed by the division under |
| 464 | this chapter, or who is delinquent in the payment of any fee, |
| 465 | fine, or special or regular assessment as provided in paragraph |
| 466 | (n), is not eligible for board membership. A person who has been |
| 467 | convicted of any felony in this state or in a United States |
| 468 | District or Territorial Court, or who has been convicted of any |
| 469 | offense in another jurisdiction which that would be considered a |
| 470 | felony if committed in this state, is not eligible for board |
| 471 | membership unless such felon's civil rights have been restored |
| 472 | for at least 5 years as of the date on which such person seeks |
| 473 | election to the board. The validity of an action by the board is |
| 474 | not affected if it is later determined that a board member of |
| 475 | the board is ineligible for board membership due to having been |
| 476 | convicted of a felony. |
| 477 | 3.2. The bylaws must provide the method of calling |
| 478 | meetings of unit owners, including annual meetings. Written |
| 479 | notice, which must include an agenda, must shall be mailed, hand |
| 480 | delivered, or electronically transmitted to each unit owner at |
| 481 | least 14 days before the annual meeting, and must be posted in a |
| 482 | conspicuous place on the condominium property at least 14 |
| 483 | continuous days before preceding the annual meeting. Upon notice |
| 484 | to the unit owners, the board shall, by duly adopted rule, |
| 485 | designate a specific location on the condominium property or |
| 486 | association property where upon which all notices of unit owner |
| 487 | meetings shall be posted. This requirement does not apply |
| 488 | However, if there is no condominium property or association |
| 489 | property for posting upon which notices can be posted, this |
| 490 | requirement does not apply. In lieu of, or in addition to, the |
| 491 | physical posting of meeting notices, the association may, by |
| 492 | reasonable rule, adopt a procedure for conspicuously posting and |
| 493 | repeatedly broadcasting the notice and the agenda on a closed- |
| 494 | circuit cable television system serving the condominium |
| 495 | association. However, if broadcast notice is used in lieu of a |
| 496 | notice posted physically on the condominium property, the notice |
| 497 | and agenda must be broadcast at least four times every broadcast |
| 498 | hour of each day that a posted notice is otherwise required |
| 499 | under this section. If broadcast notice is provided, the notice |
| 500 | and agenda must be broadcast in a manner and for a sufficient |
| 501 | continuous length of time so as to allow an average reader to |
| 502 | observe the notice and read and comprehend the entire content of |
| 503 | the notice and the agenda. Unless a unit owner waives in writing |
| 504 | the right to receive notice of the annual meeting, such notice |
| 505 | must be hand delivered, mailed, or electronically transmitted to |
| 506 | each unit owner. Notice for meetings and notice for all other |
| 507 | purposes must be mailed to each unit owner at the address last |
| 508 | furnished to the association by the unit owner, or hand |
| 509 | delivered to each unit owner. However, if a unit is owned by |
| 510 | more than one person, the association must shall provide notice, |
| 511 | for meetings and all other purposes, to the that one address |
| 512 | that which the developer initially identifies for that purpose |
| 513 | and thereafter as one or more of the owners of the unit shall |
| 514 | advise the association in writing, or if no address is given or |
| 515 | the owners of the unit do not agree, to the address provided on |
| 516 | the deed of record. An officer of the association, or the |
| 517 | manager or other person providing notice of the association |
| 518 | meeting, must shall provide an affidavit or United States Postal |
| 519 | Service certificate of mailing, to be included in the official |
| 520 | records of the association affirming that the notice was mailed |
| 521 | or hand delivered, in accordance with this provision. |
| 522 | 4.3. The members of the board shall be elected by written |
| 523 | ballot or voting machine. Proxies may not be used in electing |
| 524 | the board in general elections or elections to fill vacancies |
| 525 | caused by recall, resignation, or otherwise, unless otherwise |
| 526 | provided in this chapter. |
| 527 | a. At least 60 days before a scheduled election, the |
| 528 | association shall mail, deliver, or electronically transmit, |
| 529 | whether by separate association mailing or included in another |
| 530 | association mailing, delivery, or transmission, including |
| 531 | regularly published newsletters, to each unit owner entitled to |
| 532 | a vote, a first notice of the date of the election. Any unit |
| 533 | owner or other eligible person desiring to be a candidate for |
| 534 | the board must give written notice of his or her intent to be a |
| 535 | candidate to the association at least 40 days before a scheduled |
| 536 | election. Together with the written notice and agenda as set |
| 537 | forth in subparagraph 3. 2., the association shall mail, |
| 538 | deliver, or electronically transmit a second notice of the |
| 539 | election to all unit owners entitled to vote, together with a |
| 540 | ballot that lists all candidates. Upon request of a candidate, |
| 541 | an information sheet, no larger than 8 1/2 inches by 11 inches, |
| 542 | which must be furnished by the candidate at least 35 days before |
| 543 | the election, must be included with the mailing, delivery, or |
| 544 | transmission of the ballot, with the costs of mailing, delivery, |
| 545 | or electronic transmission and copying to be borne by the |
| 546 | association. The association is not liable for the contents of |
| 547 | the information sheets prepared by the candidates. In order to |
| 548 | reduce costs, the association may print or duplicate the |
| 549 | information sheets on both sides of the paper. The division |
| 550 | shall by rule establish voting procedures consistent with this |
| 551 | sub-subparagraph, including rules establishing procedures for |
| 552 | giving notice by electronic transmission and rules providing for |
| 553 | the secrecy of ballots. Elections shall be decided by a |
| 554 | plurality of those ballots cast. There is no quorum requirement; |
| 555 | however, at least 20 percent of the eligible voters must cast a |
| 556 | ballot in order to have a valid election of members of the |
| 557 | board. A unit owner may not permit any other person to vote his |
| 558 | or her ballot, and any ballots improperly cast are invalid. A, |
| 559 | provided any unit owner who violates this provision may be fined |
| 560 | by the association in accordance with s. 718.303. A unit owner |
| 561 | who needs assistance in casting the ballot for the reasons |
| 562 | stated in s. 101.051 may obtain such assistance. The regular |
| 563 | election must occur on the date of the annual meeting. This sub- |
| 564 | subparagraph does not apply to timeshare condominium |
| 565 | associations. Notwithstanding this sub-subparagraph, an election |
| 566 | is not required unless more candidates file notices of intent to |
| 567 | run or are nominated than board vacancies exist. |
| 568 | b. Within 90 days after being elected or appointed to the |
| 569 | board, each newly elected or appointed director shall certify in |
| 570 | writing to the secretary of the association that he or she has |
| 571 | read the association's declaration of condominium, articles of |
| 572 | incorporation, bylaws, and current written policies; that he or |
| 573 | she will work to uphold such documents and policies to the best |
| 574 | of his or her ability; and that he or she will faithfully |
| 575 | discharge his or her fiduciary responsibility to the |
| 576 | association's members. In lieu of this written certification, |
| 577 | within 90 days after being elected or appointed to the board, |
| 578 | the newly elected or appointed director may submit a certificate |
| 579 | of having satisfactorily completed satisfactory completion of |
| 580 | the educational curriculum administered by a division-approved |
| 581 | condominium education provider within 1 year before or 90 days |
| 582 | after the date of election or appointment. The written |
| 583 | certification or educational certificate is valid and does not |
| 584 | have to be resubmitted as long as the director serves on the |
| 585 | board without interruption. A director who fails to timely file |
| 586 | the written certification or educational certificate is |
| 587 | suspended from service on the board until he or she complies |
| 588 | with this sub-subparagraph. The board may temporarily fill the |
| 589 | vacancy during the period of suspension. The secretary shall |
| 590 | cause the association to retain a director's written |
| 591 | certification or educational certificate for inspection by the |
| 592 | members for 5 years after a director's election. Failure to have |
| 593 | such written certification or educational certificate on file |
| 594 | does not affect the validity of any board action. This chapter |
| 595 | does not limit the use of general or limited proxies, require |
| 596 | the use of general or limited proxies, or require the use of a |
| 597 | written ballot or voting machine for any agenda item or election |
| 598 | at any meeting of a timeshare condominium association. |
| 599 | 5.4. Any approval by unit owners called for by this |
| 600 | chapter or the applicable declaration or bylaws, including, but |
| 601 | not limited to, the approval requirement in s. 718.111(8), must |
| 602 | shall be made at a duly noticed meeting of unit owners and is |
| 603 | subject to all requirements of this chapter or the applicable |
| 604 | condominium documents relating to unit owner decisionmaking, |
| 605 | except that unit owners may take action by written agreement, |
| 606 | without meetings, on matters for which action by written |
| 607 | agreement without meetings is expressly allowed by the |
| 608 | applicable bylaws or declaration or any law statute that |
| 609 | provides for such action. |
| 610 | 6.5. Unit owners may waive notice of specific meetings if |
| 611 | allowed by the applicable bylaws or declaration or any law |
| 612 | statute. If authorized by the bylaws, notice of meetings of the |
| 613 | board of administration, unit owner meetings, except unit owner |
| 614 | meetings called to recall board members under paragraph (j), and |
| 615 | committee meetings may be given by electronic transmission to |
| 616 | unit owners who consent to receive notice by electronic |
| 617 | transmission. |
| 618 | 7.6. Unit owners shall have the right to participate in |
| 619 | meetings of unit owners with reference to all designated agenda |
| 620 | items. However, the association may adopt reasonable rules |
| 621 | governing the frequency, duration, and manner of unit owner |
| 622 | participation. |
| 623 | 8.7. A Any unit owner may tape record or videotape a |
| 624 | meeting of the unit owners subject to reasonable rules adopted |
| 625 | by the division. |
| 626 | 9.8. Unless otherwise provided in the bylaws, any vacancy |
| 627 | occurring on the board before the expiration of a term may be |
| 628 | filled by the affirmative vote of the majority of the remaining |
| 629 | directors, even if the remaining directors constitute less than |
| 630 | a quorum, or by the sole remaining director. In the alternative, |
| 631 | a board may hold an election to fill the vacancy, in which case |
| 632 | the election procedures must conform to the requirements of sub- |
| 633 | subparagraph 4.a. 3.a. unless the association governs 10 units |
| 634 | or fewer and has opted out of the statutory election process, in |
| 635 | which case the bylaws of the association control. Unless |
| 636 | otherwise provided in the bylaws, a board member appointed or |
| 637 | elected under this section shall fill the vacancy for the |
| 638 | unexpired term of the seat being filled. Filling vacancies |
| 639 | created by recall is governed by paragraph (j) and rules adopted |
| 640 | by the division. |
| 641 |
|
| 642 | Notwithstanding subparagraph (b)2. and sub-subparagraph 4.a. |
| 643 | (d)3.a., an association of 10 or fewer units may, by affirmative |
| 644 | vote of a majority of the total voting interests, provide for |
| 645 | different voting and election procedures in its bylaws, which |
| 646 | vote may be by a proxy specifically delineating the different |
| 647 | voting and election procedures. The different voting and |
| 648 | election procedures may provide for elections to be conducted by |
| 649 | limited or general proxy. |
| 650 | Section 4. Subsection (5) of section 718.113, Florida |
| 651 | Statutes, is amended to read: |
| 652 | 718.113 Maintenance; limitation upon improvement; display |
| 653 | of flag; hurricane shutters; display of religious decorations.- |
| 654 | (5) Each board of administration shall adopt hurricane |
| 655 | shutter specifications for each building within each condominium |
| 656 | operated by the association which shall include color, style, |
| 657 | and other factors deemed relevant by the board. All |
| 658 | specifications adopted by the board must shall comply with the |
| 659 | applicable building code. |
| 660 | (a) The board may, subject to the provisions of s. |
| 661 | 718.3026, and the approval of a majority of voting interests of |
| 662 | the condominium, install hurricane shutters, impact glass or |
| 663 | other code-compliant windows, or hurricane protection that |
| 664 | complies with or exceeds the applicable building code. However, |
| 665 | or both, except that a vote of the owners is not required if the |
| 666 | maintenance, repair, and replacement of hurricane shutters, |
| 667 | impact glass, or other code-compliant windows or other forms of |
| 668 | hurricane protection are the responsibility of the association |
| 669 | pursuant to the declaration of condominium. If However, where |
| 670 | hurricane protection or laminated glass or window film |
| 671 | architecturally designed to function as hurricane protection |
| 672 | which complies with or exceeds the current applicable building |
| 673 | code has been previously installed, the board may not install |
| 674 | hurricane shutters, or other hurricane protection, or impact |
| 675 | glass or other code-compliant windows except upon approval by a |
| 676 | majority vote of the voting interests. |
| 677 | (b) The association is shall be responsible for the |
| 678 | maintenance, repair, and replacement of the hurricane shutters |
| 679 | or other hurricane protection authorized by this subsection if |
| 680 | such hurricane shutters or other hurricane protection is the |
| 681 | responsibility of the association pursuant to the declaration of |
| 682 | condominium. If the hurricane shutters or other hurricane |
| 683 | protection authorized by this subsection are the responsibility |
| 684 | of the unit owners pursuant to the declaration of condominium, |
| 685 | the responsibility for the maintenance, repair, and replacement |
| 686 | of such items are shall be the responsibility of the unit owner. |
| 687 | (c) The board may operate shutters installed pursuant to |
| 688 | this subsection without permission of the unit owners only if |
| 689 | where such operation is necessary to preserve and protect the |
| 690 | condominium property and association property. The installation, |
| 691 | replacement, operation, repair, and maintenance of such shutters |
| 692 | in accordance with the procedures set forth in this paragraph |
| 693 | are herein shall not be deemed a material alteration to the |
| 694 | common elements or association property within the meaning of |
| 695 | this section. |
| 696 | (d) Notwithstanding any other provision to the contrary in |
| 697 | the condominium documents, if approval is required by the |
| 698 | documents, a board may shall not refuse to approve the |
| 699 | installation or replacement of hurricane shutters by a unit |
| 700 | owner conforming to the specifications adopted by the board. |
| 701 | Section 5. Section 718.114, Florida Statutes, is amended |
| 702 | to read: |
| 703 | 718.114 Association powers.-An association may has the |
| 704 | power to enter into agreements, to acquire leaseholds, |
| 705 | memberships, and other possessory or use interests in lands or |
| 706 | facilities such as country clubs, golf courses, marinas, and |
| 707 | other recreational facilities,. It has this power whether or not |
| 708 | the lands or facilities are contiguous to the lands of the |
| 709 | condominium, if such lands and facilities they are intended to |
| 710 | provide enjoyment, recreation, or other use or benefit to the |
| 711 | unit owners. All of these leaseholds, memberships, and other |
| 712 | possessory or use interests existing or created at the time of |
| 713 | recording the declaration must be stated and fully described in |
| 714 | the declaration. Subsequent to the recording of the declaration, |
| 715 | agreements acquiring these leaseholds, memberships, or other |
| 716 | possessory or use interests which are not entered into within 12 |
| 717 | months following the recording of the declaration are shall be |
| 718 | considered a material alteration or substantial addition to the |
| 719 | real property that is association property, and the association |
| 720 | may not acquire or enter into such agreements acquiring these |
| 721 | leaseholds, memberships, or other possessory or use interests |
| 722 | except upon a vote of, or written consent by, a majority of the |
| 723 | total voting interests or as authorized by the declaration as |
| 724 | provided in s. 718.113. The declaration may provide that the |
| 725 | rental, membership fees, operations, replacements, and other |
| 726 | expenses are common expenses and may impose covenants and |
| 727 | restrictions concerning their use and may contain other |
| 728 | provisions not inconsistent with this chapter. A condominium |
| 729 | association may conduct bingo games as provided in s. 849.0931. |
| 730 | Section 6. Subsection (3), paragraph (b) of subsection |
| 731 | (5), and subsection (11) of section 718.116, Florida Statutes, |
| 732 | are amended to read: |
| 733 | 718.116 Assessments; liability; lien and priority; |
| 734 | interest; collection.- |
| 735 | (3) Assessments and installments on assessments which are |
| 736 | not paid when due bear interest at the rate provided in the |
| 737 | declaration, from the due date until paid. The This rate may not |
| 738 | exceed the rate allowed by law, and, if no rate is provided in |
| 739 | the declaration, interest accrues at the rate of 18 percent per |
| 740 | year. Also, If provided by the declaration or bylaws, the |
| 741 | association may, in addition to such interest, charge an |
| 742 | administrative late fee of up to the greater of $25 or 5 percent |
| 743 | of each installment of the assessment for each delinquent |
| 744 | installment for which the payment is late. Any payment received |
| 745 | by an association must be applied first to any interest accrued |
| 746 | by the association, then to any administrative late fee, then to |
| 747 | any costs and reasonable attorney's fees incurred in collection, |
| 748 | and then to the delinquent assessment. The foregoing is |
| 749 | applicable notwithstanding any restrictive endorsement, |
| 750 | designation, or instruction placed on or accompanying a payment. |
| 751 | A late fee is not subject to chapter 687 or s. 718.303(4)(3). |
| 752 | (5) |
| 753 | (b) To be valid, a claim of lien must state the |
| 754 | description of the condominium parcel, the name of the record |
| 755 | owner, the name and address of the association, the amount due, |
| 756 | and the due dates. It must be executed and acknowledged by an |
| 757 | officer or authorized agent of the association. The lien is not |
| 758 | effective longer than 1 year after the claim of lien was |
| 759 | recorded unless, within that time, an action to enforce the lien |
| 760 | is commenced. The 1-year period is automatically extended for |
| 761 | any length of time during which the association is prevented |
| 762 | from filing a foreclosure action by an automatic stay resulting |
| 763 | from a bankruptcy petition filed by the parcel owner or any |
| 764 | other person claiming an interest in the parcel. The claim of |
| 765 | lien secures all unpaid assessments that are due and that may |
| 766 | accrue after the claim of lien is recorded and through the entry |
| 767 | of a final judgment, as well as interest and all reasonable |
| 768 | costs and attorney's fees incurred by the association incident |
| 769 | to the collection process. Upon payment in full, the person |
| 770 | making the payment is entitled to a satisfaction of the lien. |
| 771 |
|
| 772 | After notice of contest of lien has been recorded, the clerk of |
| 773 | the circuit court shall mail a copy of the recorded notice to |
| 774 | the association by certified mail, return receipt requested, at |
| 775 | the address shown in the claim of lien or most recent amendment |
| 776 | to it and shall certify to the service on the face of the |
| 777 | notice. Service is complete upon mailing. After service, the |
| 778 | association has 90 days in which to file an action to enforce |
| 779 | the lien; and, if the action is not filed within the 90-day |
| 780 | period, the lien is void. However, the 90-day period shall be |
| 781 | extended for any length of time during which that the |
| 782 | association is prevented from filing its action because of an |
| 783 | automatic stay resulting from the filing of a bankruptcy |
| 784 | petition by the unit owner or by any other person claiming an |
| 785 | interest in the parcel. |
| 786 | (11) If the unit is occupied by a tenant and the unit |
| 787 | owner is delinquent in paying any monetary obligation due to the |
| 788 | association, the association may make a written demand that the |
| 789 | tenant pay rent to the association the future monetary |
| 790 | obligations related to the condominium unit to the association, |
| 791 | and continue to the tenant must make such payments until all |
| 792 | monetary obligations of the unit owner related to the unit have |
| 793 | been paid in full to the association payment. The demand is |
| 794 | continuing in nature and, upon demand, The tenant must pay the |
| 795 | monetary obligations to the association until the association |
| 796 | releases the tenant or the tenant discontinues tenancy in the |
| 797 | unit. The association must mail written notice to the unit owner |
| 798 | of the association's demand that the tenant make payments to the |
| 799 | association. The association shall, upon request, provide the |
| 800 | tenant with written receipts for payments made. A tenant who |
| 801 | acts in good faith in response to a written demand from an |
| 802 | association is immune from any claim by from the unit owner |
| 803 | related to the rent once the association has made written |
| 804 | demand. Any payment received from a tenant must be applied to |
| 805 | the unit owner's oldest delinquent monetary obligation. |
| 806 | (a) If the tenant paid prepaid rent to the unit owner for |
| 807 | a given rental period before receiving the demand from the |
| 808 | association and provides written evidence of prepaying paying |
| 809 | the rent to the association within 14 days after receiving the |
| 810 | demand, the tenant shall receive credit for the prepaid rent for |
| 811 | the applicable period but and must make any subsequent rental |
| 812 | payments to the association to be credited against the monetary |
| 813 | obligations of the unit owner to the association. |
| 814 | (b) The tenant is not liable for increases in the amount |
| 815 | of the monetary obligations due unless the tenant was notified |
| 816 | in writing of the increase at least 10 days before the date the |
| 817 | rent is due. The liability of the tenant may not exceed the |
| 818 | amount due from the tenant to the tenant's landlord. The |
| 819 | tenant's landlord shall provide the tenant a credit against |
| 820 | rents due to the unit owner in the amount of moneys paid to the |
| 821 | association under this section. |
| 822 | (c) The association may issue notices under s. 83.56 and |
| 823 | may sue for eviction under ss. 83.59-83.625 as if the |
| 824 | association were a landlord under part II of chapter 83 if the |
| 825 | tenant fails to pay a required payment to the association. |
| 826 | However, the association is not otherwise considered a landlord |
| 827 | under chapter 83 and specifically has no obligations duties |
| 828 | under s. 83.51. |
| 829 | (d) The tenant does not, by virtue of payment of rent |
| 830 | monetary obligations to the association, have any of the rights |
| 831 | of a unit owner to vote in any election or to examine the books |
| 832 | and records of the association. |
| 833 | (e) A court may supersede the effect of this subsection by |
| 834 | appointing a receiver. |
| 835 | Section 7. Subsections (2), (3), (4), and (11), paragraphs |
| 836 | (a) and (d) of subsection (12), subsection (14), paragraph (a) |
| 837 | of subsection (17), and subsections (18) and (19) of section |
| 838 | 718.117, Florida Statutes, are amended to read: |
| 839 | 718.117 Termination of condominium.- |
| 840 | (2) TERMINATION BECAUSE OF ECONOMIC WASTE OR |
| 841 | IMPOSSIBILITY.- |
| 842 | (a) Notwithstanding any provision in the declaration, the |
| 843 | condominium form of ownership of a property may be terminated by |
| 844 | a plan of termination approved by the lesser of the lowest |
| 845 | percentage of voting interests necessary to amend the |
| 846 | declaration or as otherwise provided in the declaration for |
| 847 | approval of termination if: |
| 848 | 1. The total estimated cost of construction or repairs |
| 849 | necessary to construct the intended improvements or restore the |
| 850 | improvements to their former condition or bring them into |
| 851 | compliance with applicable laws or regulations exceeds the |
| 852 | combined fair market value of the units in the condominium after |
| 853 | completion of the construction or repairs; or |
| 854 | 2. It becomes impossible to operate or reconstruct a |
| 855 | condominium to its prior physical configuration because of land |
| 856 | use laws or regulations. |
| 857 | (b) Notwithstanding paragraph (a), a condominium in which |
| 858 | 75 percent or more of the units are timeshare units may be |
| 859 | terminated only pursuant to a plan of termination approved by 80 |
| 860 | percent of the total voting interests of the association and the |
| 861 | holders of 80 percent of the original principal amount of |
| 862 | outstanding recorded mortgage liens of timeshare estates in the |
| 863 | condominium, unless the declaration provides for a lower voting |
| 864 | percentage. |
| 865 | (c) Notwithstanding paragraph (a), a condominium that |
| 866 | includes units and timeshare estates where the improvements have |
| 867 | been totally destroyed or demolished may be terminated pursuant |
| 868 | to a plan of termination proposed by a unit owner upon the |
| 869 | filing of a petition in court seeking equitable relief. Within |
| 870 | 10 days after the filing of a petition as provided in this |
| 871 | paragraph and in lieu of the requirements of paragraph (15)(a), |
| 872 | the petitioner shall record the proposed plan of termination and |
| 873 | mail a copy of the proposed plan and a copy of the petition to: |
| 874 | 1. If the association has not been dissolved as a matter |
| 875 | of law, each member of the board of directors of the association |
| 876 | identified in the most recent annual report filed with the |
| 877 | Department of State and the registered agent of the association; |
| 878 | 2. The managing entity as defined in s. 721.05(22); |
| 879 | 3. Each unit owner and each timeshare estate owner at the |
| 880 | address reflected in the official records of the association, |
| 881 | or, if the association records cannot be obtained by the |
| 882 | petitioner, each unit owner and each timeshare estate owner at |
| 883 | the address listed in the office of the tax collector for tax |
| 884 | notices; and |
| 885 | 4. Each holder of a recorded mortgage lien affecting a |
| 886 | unit or timeshare estate at the address appearing on the |
| 887 | recorded mortgage or any recorded assignment thereof. |
| 888 |
|
| 889 | The association, if it has not been dissolved as a matter of |
| 890 | law, acting as class representative, or the managing entity as |
| 891 | defined in s. 721.05(22), any unit owner, any timeshare estate |
| 892 | owner, or any holder of a recorded mortgage lien affecting a |
| 893 | unit or timeshare estate may intervene in the proceedings to |
| 894 | contest the proposed plan of termination brought pursuant to |
| 895 | this paragraph. The provisions of subsection (9), to the extent |
| 896 | inconsistent with this paragraph, and subsection (16) are not |
| 897 | applicable to a party contesting a plan of termination under |
| 898 | this paragraph. If no party intervenes to contest the proposed |
| 899 | plan within 45 days after the filing of the petition, the |
| 900 | petitioner may move the court to enter a final judgment to |
| 901 | authorize implementation of the plan of termination. If a party |
| 902 | timely intervenes to contest the proposed plan, the plan may not |
| 903 | be implemented until a final judgment has been entered by the |
| 904 | court finding that the proposed plan of termination is fair and |
| 905 | reasonable and authorizing implementation of the plan. |
| 906 | (3) OPTIONAL TERMINATION.-Except as provided in subsection |
| 907 | (2) or unless the declaration provides for a lower percentage, |
| 908 | the condominium form of ownership of the property may be |
| 909 | terminated for all or a portion of the condominium property |
| 910 | pursuant to a plan of termination approved by at least 80 |
| 911 | percent of the total voting interests of the condominium if no |
| 912 | not more than 10 percent of the total voting interests of the |
| 913 | condominium have rejected the plan of termination by negative |
| 914 | vote or by providing written objections thereto. This subsection |
| 915 | does not apply to condominiums in which 75 percent or more of |
| 916 | the units are timeshare units. |
| 917 | (4) EXEMPTION.-A plan of termination is not an amendment |
| 918 | subject to s. 718.110(4). In a partial termination, a plan of |
| 919 | termination is not an amendment subject to s. 718.110(4) if the |
| 920 | ownership share of the common elements of a surviving unit in |
| 921 | the condominium remains in the same proportion to the surviving |
| 922 | units as it was before the partial termination. |
| 923 | (11) PLAN OF TERMINATION; OPTIONAL PROVISIONS; CONDITIONAL |
| 924 | TERMINATION.- |
| 925 | (a) The plan of termination may provide that each unit |
| 926 | owner retains the exclusive right of possession to the portion |
| 927 | of the real estate which that formerly constituted the unit if, |
| 928 | in which case the plan specifies must specify the conditions of |
| 929 | possession. In a partial termination, the plan of termination as |
| 930 | specified in subsection (10) must also identify the units that |
| 931 | survive the partial termination and provide that such units |
| 932 | remain in the condominium form of ownership pursuant to an |
| 933 | amendment to the declaration of condominium or an amended and |
| 934 | restated declaration. In a partial termination, title to the |
| 935 | surviving units and common elements that remain part of the |
| 936 | condominium property specified in the plan of termination remain |
| 937 | vested in the ownership shown in the public records and do not |
| 938 | vest in the termination trustee. |
| 939 | (b) In a conditional termination, the plan must specify |
| 940 | the conditions for termination. A conditional plan does not vest |
| 941 | title in the termination trustee until the plan and a |
| 942 | certificate executed by the association with the formalities of |
| 943 | a deed, confirming that the conditions in the conditional plan |
| 944 | have been satisfied or waived by the requisite percentage of the |
| 945 | voting interests, have been recorded. In a partial termination, |
| 946 | the plan does not vest title to the surviving units or common |
| 947 | elements that remain part of the condominium property in the |
| 948 | termination trustee. |
| 949 | (12) ALLOCATION OF PROCEEDS OF SALE OF CONDOMINIUM |
| 950 | PROPERTY.- |
| 951 | (a) Unless the declaration expressly provides for the |
| 952 | allocation of the proceeds of sale of condominium property, the |
| 953 | plan of termination must first apportion the proceeds between |
| 954 | the aggregate value of all units and the value of the common |
| 955 | elements, based on their respective fair market values |
| 956 | immediately before the termination, as determined by one or more |
| 957 | independent appraisers selected by the association or |
| 958 | termination trustee. In a partial termination, the aggregate |
| 959 | values of the units and common elements that are being |
| 960 | terminated must be separately determined, and the plan of |
| 961 | termination must specify the allocation of the proceeds of sale |
| 962 | for the units and common elements. |
| 963 | (d) Liens that encumber a unit shall be transferred to the |
| 964 | proceeds of sale of the condominium property and the proceeds of |
| 965 | sale or other distribution of association property, common |
| 966 | surplus, or other association assets attributable to such unit |
| 967 | in their same priority. In a partial termination, liens that |
| 968 | encumber a unit being terminated must be transferred to the |
| 969 | proceeds of sale of that portion of the condominium property |
| 970 | being terminated which are attributable to such unit. The |
| 971 | proceeds of any sale of condominium property pursuant to a plan |
| 972 | of termination may not be deemed to be common surplus or |
| 973 | association property. |
| 974 | (14) TITLE VESTED IN TERMINATION TRUSTEE.-If termination |
| 975 | is pursuant to a plan of termination under subsection (2) or |
| 976 | subsection (3), the unit owners' rights and title to as tenants |
| 977 | in common in undivided interests in the condominium property |
| 978 | being terminated vests vest in the termination trustee when the |
| 979 | plan is recorded or at a later date specified in the plan. The |
| 980 | unit owners thereafter become the beneficiaries of the proceeds |
| 981 | realized from the plan of termination as set forth in the plan. |
| 982 | The termination trustee may deal with the condominium property |
| 983 | being terminated or any interest therein if the plan confers on |
| 984 | the trustee the authority to protect, conserve, manage, sell, or |
| 985 | dispose of the condominium property. The trustee, on behalf of |
| 986 | the unit owners, may contract for the sale of real property |
| 987 | being terminated, but the contract is not binding on the unit |
| 988 | owners until the plan is approved pursuant to subsection (2) or |
| 989 | subsection (3). |
| 990 | (17) DISTRIBUTION.- |
| 991 | (a) Following termination of the condominium, the |
| 992 | condominium property, association property, common surplus, and |
| 993 | other assets of the association shall be held by the termination |
| 994 | trustee pursuant to the plan of termination, as trustee for unit |
| 995 | owners and holders of liens on the units, in their order of |
| 996 | priority unless otherwise set forth in the plan of termination. |
| 997 | (18) ASSOCIATION STATUS.-The termination of a condominium |
| 998 | does not change the corporate status of the association that |
| 999 | operated the condominium property. The association continues to |
| 1000 | exist to conclude its affairs, prosecute and defend actions by |
| 1001 | or against it, collect and discharge obligations, dispose of and |
| 1002 | convey its property, and collect and divide its assets, but not |
| 1003 | to act except as necessary to conclude its affairs. In a partial |
| 1004 | termination, the association may continue as the condominium |
| 1005 | association for the property that remains subject to the |
| 1006 | declaration of condominium. |
| 1007 | (19) CREATION OF ANOTHER CONDOMINIUM.-The termination or |
| 1008 | partial termination of a condominium does not bar the filing of |
| 1009 | a new declaration of condominium or an amended and restated |
| 1010 | declaration of condominium by the termination trustee, or the |
| 1011 | trustee's successor in interest, for the terminated property or |
| 1012 | affecting any portion thereof of the same property. The partial |
| 1013 | termination of a condominium may provide for the simultaneous |
| 1014 | filing of an amendment to the declaration of condominium or an |
| 1015 | amended and restated declaration of condominium by the |
| 1016 | condominium association for any portion of the property not |
| 1017 | terminated from the condominium form of ownership. |
| 1018 | Section 8. Subsections (3), (4), and (5) of section |
| 1019 | 718.303, Florida Statutes, are amended, and subsection (6) is |
| 1020 | added to that section, to read: |
| 1021 | 718.303 Obligations of owners and occupants; remedies.- |
| 1022 | (3) If a unit owner is delinquent for more than 90 days in |
| 1023 | paying a monetary obligation due to the association, the |
| 1024 | association may suspend the right of a unit owner or a unit's |
| 1025 | occupant, licensee, or invitee to use common elements, common |
| 1026 | facilities, or any other association property until the monetary |
| 1027 | obligation is paid. This subsection does not apply to limited |
| 1028 | common elements intended to be used only by that unit, common |
| 1029 | elements that must be used to access the unit, utility services |
| 1030 | provided to the unit, parking spaces, or elevators. The |
| 1031 | association may also levy reasonable fines for the failure of |
| 1032 | the owner of the unit, or its occupant, licensee, or invitee, to |
| 1033 | comply with any provision of the declaration, the association |
| 1034 | bylaws, or reasonable rules of the association. A fine may does |
| 1035 | not become a lien against a unit. A fine may not exceed $100 per |
| 1036 | violation. However, A fine may be levied on the basis of each |
| 1037 | day of a continuing violation, with a single notice and |
| 1038 | opportunity for hearing. However, the fine may not exceed $100 |
| 1039 | per violation, or $1,000 in the aggregate exceed $1,000. |
| 1040 | (a) An association may suspend, for a reasonable period of |
| 1041 | time, the right of a unit owner, or a unit owner's tenant, |
| 1042 | guest, or invitee, to use the common elements, common |
| 1043 | facilities, or any other association property for failure to |
| 1044 | comply with any provision of the declaration, the association |
| 1045 | bylaws, or reasonable rules of the association. |
| 1046 | (b) A fine or suspension may not be imposed levied and a |
| 1047 | suspension may not be imposed unless the association first |
| 1048 | provides at least 14 days' written notice and an opportunity for |
| 1049 | a hearing to the unit owner and, if applicable, its occupant, |
| 1050 | licensee, or invitee. The hearing must be held before a |
| 1051 | committee of other unit owners who are neither board members nor |
| 1052 | persons residing in a board member's household. If the committee |
| 1053 | does not agree with the fine or suspension, the fine or |
| 1054 | suspension may not be levied or imposed. |
| 1055 | (4) If a unit owner is more than 90 days delinquent in |
| 1056 | paying a monetary obligation due to the association, the |
| 1057 | association may suspend the right of the unit owner or the |
| 1058 | unit's occupant, licensee, or invitee to use common elements, |
| 1059 | common facilities, or any other association property until the |
| 1060 | monetary obligation is paid in full. This subsection does not |
| 1061 | apply to limited common elements intended to be used only by |
| 1062 | that unit, common elements needed to access the unit, utility |
| 1063 | services provided to the unit, parking spaces, or elevators. The |
| 1064 | notice and hearing requirements under subsection (3) do not |
| 1065 | apply to suspensions imposed under this subsection. |
| 1066 | (4) The notice and hearing requirements of subsection (3) |
| 1067 | do not apply to the imposition of suspensions or fines against a |
| 1068 | unit owner or a unit's occupant, licensee, or invitee because of |
| 1069 | failing to pay any amounts due the association. If such a fine |
| 1070 | or suspension is imposed, the association must levy the fine or |
| 1071 | impose a reasonable suspension at a properly noticed board |
| 1072 | meeting, and after the imposition of such fine or suspension, |
| 1073 | the association must notify the unit owner and, if applicable, |
| 1074 | the unit's occupant, licensee, or invitee by mail or hand |
| 1075 | delivery. |
| 1076 | (5) An association may also suspend the voting rights of a |
| 1077 | member due to nonpayment of any monetary obligation due to the |
| 1078 | association which is more than 90 days delinquent. The |
| 1079 | suspension ends upon full payment of all obligations currently |
| 1080 | due or overdue the association. A voting interest or consent |
| 1081 | right allocated to a unit which has been suspended by the |
| 1082 | association may not be exercised or considered for any purpose, |
| 1083 | including, but not limited to, a quorum, an election, or the |
| 1084 | votes required to approve an action under this chapter or |
| 1085 | pursuant to the declaration, articles of incorporation, or |
| 1086 | bylaws. The notice and hearing requirements under subsection (3) |
| 1087 | do not apply to a suspension imposed under this subsection. |
| 1088 | (6) All suspensions imposed pursuant to subsection (4) or |
| 1089 | subsection (5) must be approved at a properly noticed board |
| 1090 | meeting. Upon approval, the association must notify the unit |
| 1091 | owner and, if applicable, the unit's occupant, licensee, or |
| 1092 | invitee by mail or hand delivery. |
| 1093 | Section 9. Section 718.703, Florida Statutes, is amended |
| 1094 | to read: |
| 1095 | 718.703 Definitions.-As used in this part, the term: |
| 1096 | (1) "Bulk assignee" means a person who is not a bulk buyer |
| 1097 | and who: |
| 1098 | (a) Acquires more than seven condominium parcels in a |
| 1099 | single condominium as set forth in s. 718.707; and |
| 1100 | (b) Receives an assignment of any of the developer rights, |
| 1101 | other than or in addition to those rights described in |
| 1102 | subsection (2), some or all of the rights of the developer as |
| 1103 | set forth in the declaration of condominium or this chapter: by |
| 1104 | 1. By a written instrument recorded as part of or as an |
| 1105 | exhibit to the deed; or as |
| 1106 | 2. By a separate instrument recorded in the public records |
| 1107 | of the county in which the condominium is located; or |
| 1108 | 3. Pursuant to a final judgment or certificate of title |
| 1109 | issued in favor of a purchaser at a foreclosure sale. |
| 1110 |
|
| 1111 | A mortgagee or its assignee may not be deemed a bulk assignee or |
| 1112 | a developer by reason of the acquisition of condominium units |
| 1113 | and receipt of an assignment of some or all of a developer |
| 1114 | rights unless the mortgagee or its assignee exercises any of the |
| 1115 | developer rights other than those described in subsection (2). |
| 1116 | (2) "Bulk buyer" means a person who acquires more than |
| 1117 | seven condominium parcels in a single condominium as set forth |
| 1118 | in s. 718.707, but who does not receive an assignment of any |
| 1119 | developer rights, or receives only some or all of the following |
| 1120 | rights: other than |
| 1121 | (a) The right to conduct sales, leasing, and marketing |
| 1122 | activities within the condominium; |
| 1123 | (b) The right to be exempt from the payment of working |
| 1124 | capital contributions to the condominium association arising out |
| 1125 | of, or in connection with, the bulk buyer's acquisition of the a |
| 1126 | bulk number of units; and |
| 1127 | (c) The right to be exempt from any rights of first |
| 1128 | refusal which may be held by the condominium association and |
| 1129 | would otherwise be applicable to subsequent transfers of title |
| 1130 | from the bulk buyer to a third party purchaser concerning one or |
| 1131 | more units. |
| 1132 | Section 10. Section 718.704, Florida Statutes, is amended |
| 1133 | to read: |
| 1134 | 718.704 Assignment and assumption of developer rights by |
| 1135 | bulk assignee; bulk buyer.- |
| 1136 | (1) A bulk assignee is deemed to have assumed assumes and |
| 1137 | is liable for all duties and responsibilities of the developer |
| 1138 | under the declaration and this chapter upon its acquisition of |
| 1139 | title to units and continuously thereafter, except that it is |
| 1140 | not liable for: |
| 1141 | (a) Warranties of the developer under s. 718.203(1) or s. |
| 1142 | 718.618, except as expressly provided by the bulk assignee in a |
| 1143 | prospectus or offering circular, or the contract for purchase |
| 1144 | and sale executed with a purchaser, or for design, construction, |
| 1145 | development, or repair work performed by or on behalf of the |
| 1146 | such bulk assignee.; |
| 1147 | (b) The obligation to: |
| 1148 | 1. Fund converter reserves under s. 718.618 for a unit |
| 1149 | that was not acquired by the bulk assignee; or |
| 1150 | 2. Provide implied converter warranties on any portion of |
| 1151 | the condominium property except as expressly provided by the |
| 1152 | bulk assignee in a prospectus or offering circular, or the |
| 1153 | contract for purchase and sale executed with a purchaser, or for |
| 1154 | and pertaining to any design, construction, development, or |
| 1155 | repair work performed by or on behalf of the bulk assignee.; |
| 1156 | (c) The requirement to provide the association with a |
| 1157 | cumulative audit of the association's finances from the date of |
| 1158 | formation of the condominium association as required by s. |
| 1159 | 718.301(4)(c). However, the bulk assignee must provide an audit |
| 1160 | for the period during which the bulk assignee elects or appoints |
| 1161 | a majority of the members of the board of administration.; |
| 1162 | (d) Any liability arising out of or in connection with |
| 1163 | actions taken by the board of administration or the developer- |
| 1164 | appointed directors before the bulk assignee elects or appoints |
| 1165 | a majority of the members of the board of administration.; and |
| 1166 | (e) Any liability for or arising out of the developer's |
| 1167 | failure to fund previous assessments or to resolve budgetary |
| 1168 | deficits in relation to a developer's right to guarantee |
| 1169 | assessments, except as otherwise provided in subsection (2). |
| 1170 |
|
| 1171 | The bulk assignee is also responsible only for delivering |
| 1172 | documents and materials in accordance with s. 718.705(3). A bulk |
| 1173 | assignee may expressly assume some or all of the developer |
| 1174 | obligations of the developer described in paragraphs (a)-(e). |
| 1175 | (2) A bulk assignee assigned the developer right receiving |
| 1176 | the assignment of the rights of the developer to guarantee the |
| 1177 | level of assessments and fund budgetary deficits pursuant to s. |
| 1178 | 718.116 assumes and is liable for all obligations of the |
| 1179 | developer with respect to such guarantee upon its acquisition of |
| 1180 | title to the units and continuously thereafter, including any |
| 1181 | applicable funding of reserves to the extent required by law, |
| 1182 | for as long as the guarantee remains in effect. A bulk assignee |
| 1183 | not receiving such assignment, or a bulk buyer, does not assume |
| 1184 | and is not liable for the obligations of the developer with |
| 1185 | respect to such guarantee, but is responsible for payment of |
| 1186 | assessments due on or after acquisition of the units in the same |
| 1187 | manner as all other owners of condominium parcels or as |
| 1188 | otherwise provided in s. 718.116. |
| 1189 | (3) A bulk buyer is liable for the duties and |
| 1190 | responsibilities of a the developer under the declaration and |
| 1191 | this chapter only to the extent that such provided in this part, |
| 1192 | together with any other duties or responsibilities are of the |
| 1193 | developer expressly assumed in writing by the bulk buyer. |
| 1194 | (4) An acquirer of condominium parcels is not a bulk |
| 1195 | assignee or a bulk buyer if the transfer to such acquirer was |
| 1196 | made: |
| 1197 | (a) Before the effective date of this part; |
| 1198 | (b) With the intent to hinder, delay, or defraud any |
| 1199 | purchaser, unit owner, or the association;, or if the acquirer |
| 1200 | is |
| 1201 | (c) By a person who would be considered an insider under |
| 1202 | s. 726.102(7). |
| 1203 | (5) An assignment of developer rights to a bulk assignee |
| 1204 | may be made by a the developer, a previous bulk assignee, a |
| 1205 | mortgagee or assignee who has acquired title to the units and |
| 1206 | received an assignment of rights, or a court acting on behalf of |
| 1207 | the developer or the previous bulk assignee if such developer |
| 1208 | rights are held by the predecessor in title to the bulk |
| 1209 | assignee. At any particular time, there may not be no more than |
| 1210 | one bulk assignee within a condominium; however, but there may |
| 1211 | be more than one bulk buyer. If more than one acquirer of |
| 1212 | condominium parcels in the same condominium receives an |
| 1213 | assignment of developer rights in addition to those rights |
| 1214 | described in s. 718.703(2) from the same person, the bulk |
| 1215 | assignee is the acquirer whose instrument of assignment is |
| 1216 | recorded first in the public records of the county in which the |
| 1217 | condominium is located, and any subsequent purported bulk |
| 1218 | assignee may still qualify as a bulk buyer. |
| 1219 | Section 11. Subsections (1) and (3) of section 718.705, |
| 1220 | Florida Statutes, are amended to read: |
| 1221 | 718.705 Board of administration; transfer of control.- |
| 1222 | (1) If, at the time the bulk assignee acquires title to |
| 1223 | the units and receives an assignment of developer rights, the |
| 1224 | developer has not relinquished control of the board of |
| 1225 | administration, for purposes of determining the timing for |
| 1226 | transfer of control of the board of administration of the |
| 1227 | association to unit owners other than the developer under s. |
| 1228 | 718.301(1)(a) and (b), if a bulk assignee is entitled to elect a |
| 1229 | majority of the members of the board, a condominium parcel |
| 1230 | acquired by the bulk assignee is not deemed to be conveyed to a |
| 1231 | purchaser, or owned by an owner other than the developer, until |
| 1232 | the condominium parcel is conveyed to an owner who is not a bulk |
| 1233 | assignee. |
| 1234 | (3) If a bulk assignee relinquishes control of the board |
| 1235 | of administration as set forth in s. 718.301, the bulk assignee |
| 1236 | must deliver all of those items required by s. 718.301(4). |
| 1237 | However, the bulk assignee is not required to deliver items and |
| 1238 | documents not in the possession of the bulk assignee if some |
| 1239 | items were or should have been in existence before the bulk |
| 1240 | assignee's acquisition of the units during the period during |
| 1241 | which the bulk assignee was entitled to elect at least a |
| 1242 | majority of the members of the board of administration. In |
| 1243 | conjunction with the acquisition of units condominium parcels, a |
| 1244 | bulk assignee shall undertake a good faith effort to obtain the |
| 1245 | documents and materials that must be provided to the association |
| 1246 | pursuant to s. 718.301(4). If the bulk assignee is not able to |
| 1247 | obtain all of such documents and materials, the bulk assignee |
| 1248 | must certify in writing to the association the names or |
| 1249 | descriptions of the documents and materials that were not |
| 1250 | obtainable by the bulk assignee. Delivery of the certificate |
| 1251 | relieves the bulk assignee of responsibility for delivering the |
| 1252 | documents and materials referenced in the certificate as |
| 1253 | otherwise required under ss. 718.112 and 718.301 and this part. |
| 1254 | The responsibility of the bulk assignee for the audit required |
| 1255 | by s. 718.301(4) commences as of the date on which the bulk |
| 1256 | assignee elected or appointed a majority of the members of the |
| 1257 | board of administration. |
| 1258 | Section 12. Section 718.706, Florida Statutes, is amended |
| 1259 | to read: |
| 1260 | 718.706 Specific provisions pertaining to offering of |
| 1261 | units by a bulk assignee or bulk buyer.- |
| 1262 | (1) Before offering more than seven any units in a single |
| 1263 | condominium for sale or for lease for a term exceeding 5 years, |
| 1264 | a bulk assignee or a bulk buyer must file the following |
| 1265 | documents with the division and provide such documents to a |
| 1266 | prospective purchaser or tenant: |
| 1267 | (a) An updated prospectus or offering circular, or a |
| 1268 | supplement to the prospectus or offering circular, filed by the |
| 1269 | original developer prepared in accordance with s. 718.504, which |
| 1270 | must include the form of contract for sale and for lease in |
| 1271 | compliance with s. 718.503(2); |
| 1272 | (b) An updated Frequently Asked Questions and Answers |
| 1273 | sheet; |
| 1274 | (c) The executed escrow agreement if required under s. |
| 1275 | 718.202; and |
| 1276 | (d) The financial information required by s. 718.111(13). |
| 1277 | However, if a financial information report did does not exist |
| 1278 | for the fiscal year before the acquisition of title by the bulk |
| 1279 | assignee or bulk buyer, and if or accounting records that cannot |
| 1280 | be obtained in good faith by the bulk assignee or the bulk buyer |
| 1281 | which would permit preparation of the required financial |
| 1282 | information report for that period cannot be obtained despite |
| 1283 | good faith efforts by the bulk assignee or the bulk buyer, the |
| 1284 | bulk assignee or bulk buyer is excused from the requirement of |
| 1285 | this paragraph. However, the bulk assignee or bulk buyer must |
| 1286 | include in the purchase contract the following statement in |
| 1287 | conspicuous type: |
| 1288 |
|
| 1289 | ALL OR A PORTION OF THE FINANCIAL INFORMATION REPORT |
| 1290 | REQUIRED UNDER S. 718.111(13) FOR THE TIME PERIOD |
| 1291 | BEFORE THE SELLER'S ACQUISITION OF THE UNIT |
| 1292 | IMMEDIATELY PRECEDING FISCAL YEAR OF THE ASSOCIATION |
| 1293 | IS NOT AVAILABLE OR CANNOT BE OBTAINED DESPITE THE |
| 1294 | GOOD FAITH EFFORTS OF CREATED BY THE SELLER DUE TO THE |
| 1295 | INSUFFICIENT ACCOUNTING RECORDS OF THE ASSOCIATION. |
| 1296 |
|
| 1297 | (2) Before offering more than seven any units in a single |
| 1298 | condominium for sale or for lease for a term exceeding 5 years, |
| 1299 | a bulk assignee or a bulk buyer must file with the division and |
| 1300 | provide to a prospective purchaser or tenant under a lease for a |
| 1301 | term exceeding 5 years a disclosure statement that includes, but |
| 1302 | is not limited to: |
| 1303 | (a) A description of any rights of the developer rights |
| 1304 | that developer which have been assigned to the bulk assignee or |
| 1305 | bulk buyer; |
| 1306 | (b) The following statement in conspicuous type: |
| 1307 |
|
| 1308 | THE SELLER IS NOT OBLIGATED FOR ANY WARRANTIES OF THE |
| 1309 | DEVELOPER UNDER S. 718.203(1) OR S. 718.618, AS |
| 1310 | APPLICABLE, EXCEPT FOR DESIGN, CONSTRUCTION, |
| 1311 | DEVELOPMENT, OR REPAIR WORK PERFORMED BY OR ON BEHALF |
| 1312 | OF THE SELLER; and |
| 1313 |
|
| 1314 | (c) If the condominium is a conversion subject to part VI, |
| 1315 | the following statement in conspicuous type: |
| 1316 |
|
| 1317 | THE SELLER HAS NO OBLIGATION TO FUND CONVERTER |
| 1318 | RESERVES OR TO PROVIDE CONVERTER WARRANTIES UNDER S. |
| 1319 | 718.618 ON ANY PORTION OF THE CONDOMINIUM PROPERTY |
| 1320 | EXCEPT AS MAY BE EXPRESSLY REQUIRED OF THE SELLER IN |
| 1321 | THE CONTRACT FOR PURCHASE AND SALE EXECUTED BY THE |
| 1322 | SELLER AND THE PREVIOUS DEVELOPER AND PERTAINING TO |
| 1323 | ANY DESIGN, CONSTRUCTION, DEVELOPMENT, OR REPAIR WORK |
| 1324 | PERFORMED BY OR ON BEHALF OF THE SELLER. |
| 1325 |
|
| 1326 | (3) A bulk assignee, while it is in control of the board |
| 1327 | of administration of the association, may not authorize, on |
| 1328 | behalf of the association: |
| 1329 | (a) The waiver of reserves or the reduction of funding of |
| 1330 | the reserves pursuant to s. 718.112(2)(f)2., unless approved by |
| 1331 | a majority of the voting interests not controlled by the |
| 1332 | developer, bulk assignee, and bulk buyer; or |
| 1333 | (b) The use of reserve expenditures for other purposes |
| 1334 | pursuant to s. 718.112(2)(f)3., unless approved by a majority of |
| 1335 | the voting interests not controlled by the developer, bulk |
| 1336 | assignee, and bulk buyer. |
| 1337 | (4) A bulk assignee or a bulk buyer must comply with all |
| 1338 | the requirements of s. 718.302 regarding any contracts entered |
| 1339 | into by the association during the period the bulk assignee or |
| 1340 | bulk buyer maintains control of the board of administration. |
| 1341 | Unit owners shall be provided afforded all of the rights and the |
| 1342 | protections contained in s. 718.302 regarding agreements entered |
| 1343 | into by the association which are under the control of before |
| 1344 | unit owners other than the developer, bulk assignee, or bulk |
| 1345 | buyer elected a majority of the board of administration. |
| 1346 | (5) Notwithstanding any other provision of this part, a |
| 1347 | bulk assignee or a bulk buyer is not required to comply with the |
| 1348 | filing or disclosure requirements of subsections (1) and (2) if |
| 1349 | all of the units owned by the bulk assignee or bulk buyer are |
| 1350 | offered and conveyed to a single purchaser in a single |
| 1351 | transaction. A bulk buyer must comply with the requirements |
| 1352 | contained in the declaration regarding any transfer of a unit, |
| 1353 | including sales, leases, and subleases. A bulk buyer is not |
| 1354 | entitled to any exemptions afforded a developer or successor |
| 1355 | developer under this chapter regarding the transfer of a unit, |
| 1356 | including sales, leases, or subleases. |
| 1357 | Section 13. Section 718.707, Florida Statutes, is amended |
| 1358 | to read: |
| 1359 | 718.707 Time limitation for classification as bulk |
| 1360 | assignee or bulk buyer.-A person acquiring condominium parcels |
| 1361 | may not be classified as a bulk assignee or bulk buyer unless |
| 1362 | the condominium parcels were acquired on or after July 1, 2010, |
| 1363 | but before July 1, 2012. The date of such acquisition shall be |
| 1364 | determined by the date of recording of a deed or other |
| 1365 | instrument of conveyance for such parcels in the public records |
| 1366 | of the county in which the condominium is located, or by the |
| 1367 | date of issuing issuance of a certificate of title in a |
| 1368 | foreclosure proceeding with respect to such condominium parcels. |
| 1369 | Section 14. Subsections (3), (4), and (10) of section |
| 1370 | 719.108, Florida Statutes, are amended to read: |
| 1371 | 719.108 Rents and assessments; liability; lien and |
| 1372 | priority; interest; collection; cooperative ownership.- |
| 1373 | (3) Rents and assessments, and installments on them, not |
| 1374 | paid when due bear interest at the rate provided in the |
| 1375 | cooperative documents from the date due until paid. This rate |
| 1376 | may not exceed the rate allowed by law, and, if a rate is not |
| 1377 | provided in the cooperative documents, interest accrues at 18 |
| 1378 | percent per annum. If the cooperative documents or bylaws so |
| 1379 | provide, the association may charge an administrative late fee |
| 1380 | in addition to such interest, in an amount not to exceed the |
| 1381 | greater of $25 or 5 percent of each installment of the |
| 1382 | assessment for each delinquent installment that the payment is |
| 1383 | late. Any payment received by an association must be applied |
| 1384 | first to any interest accrued by the association, then to any |
| 1385 | administrative late fee, then to any costs and reasonable |
| 1386 | attorney's fees incurred in collection, and then to the |
| 1387 | delinquent assessment. The foregoing applies notwithstanding any |
| 1388 | restrictive endorsement, designation, or instruction placed on |
| 1389 | or accompanying a payment. A late fee is not subject to chapter |
| 1390 | 687 or s. 719.303(4)(3). |
| 1391 | (4) The association has a lien on each cooperative parcel |
| 1392 | for any unpaid rents and assessments, plus interest, and any |
| 1393 | authorized administrative late fees, and any reasonable costs |
| 1394 | for collection services for which the association has contracted |
| 1395 | against the unit owner of the cooperative parcel. If authorized |
| 1396 | by the cooperative documents, the lien also secures reasonable |
| 1397 | attorney's fees incurred by the association incident to the |
| 1398 | collection of the rents and assessments or enforcement of such |
| 1399 | lien. The lien is effective from and after recording a claim of |
| 1400 | lien in the public records in the county in which the |
| 1401 | cooperative parcel is located which states the description of |
| 1402 | the cooperative parcel, the name of the unit owner, the amount |
| 1403 | due, and the due dates. The lien expires if a claim of lien is |
| 1404 | not filed within 1 year after the date the assessment was due, |
| 1405 | and the lien does not continue for longer than 1 year after the |
| 1406 | claim of lien has been recorded unless, within that time, an |
| 1407 | action to enforce the lien is commenced. Except as otherwise |
| 1408 | provided in this chapter, a lien may not be filed by the |
| 1409 | association against a cooperative parcel until 30 days after the |
| 1410 | date on which a notice of intent to file a lien has been |
| 1411 | delivered to the owner. |
| 1412 | (a) The notice must be sent to the unit owner at the |
| 1413 | address of the unit by first-class United States mail and: |
| 1414 | 1. If the most recent address of the unit owner on the |
| 1415 | records of the association is the address of the unit, the |
| 1416 | notice must be sent by registered or certified mail, return |
| 1417 | receipt requested, to the unit owner at the address of the unit. |
| 1418 | 2. If the most recent address of the unit owner on the |
| 1419 | records of the association is in the United States, but is not |
| 1420 | the address of the unit, the notice must be sent by registered |
| 1421 | or certified mail, return receipt requested, to the unit owner |
| 1422 | at his or her most recent address. |
| 1423 | 3. If the most recent address of the unit owner on the |
| 1424 | records of the association is not in the United States, the |
| 1425 | notice must be sent by first-class United States mail to the |
| 1426 | unit owner at his or her most recent address. |
| 1427 | (b) A notice that is sent pursuant to this subsection is |
| 1428 | deemed delivered upon mailing. |
| 1429 | (10) If the unit is occupied by a tenant and the unit |
| 1430 | owner is delinquent in paying any monetary obligation due to the |
| 1431 | association, the association may make a written demand that the |
| 1432 | tenant pay rent to the association the future monetary |
| 1433 | obligations related to the cooperative share to the association |
| 1434 | and continue to the tenant must make such payments until all |
| 1435 | monetary obligations of the unit owner related to the unit have |
| 1436 | been paid in full to the association payment. The demand is |
| 1437 | continuing in nature, and upon demand, The tenant must pay the |
| 1438 | monetary obligations to the association until the association |
| 1439 | releases the tenant or the tenant discontinues tenancy in the |
| 1440 | unit. The association must mail written notice to the unit owner |
| 1441 | of the association's demand that the tenant make payments to the |
| 1442 | association. The association shall, upon request, provide the |
| 1443 | tenant with written receipts for payments made. A tenant who |
| 1444 | acts in good faith in response to a written demand from an |
| 1445 | association is immune from any claim by from the unit owner |
| 1446 | related to the rent once the association has made written |
| 1447 | demand. Any payment received from a tenant by the association |
| 1448 | must be applied to the unit owner's oldest delinquent monetary |
| 1449 | obligation. |
| 1450 | (a) If the tenant paid prepaid rent to the unit owner for |
| 1451 | a given rental period before receiving the demand from the |
| 1452 | association and provides written evidence of prepaying paying |
| 1453 | the rent to the association within 14 days after receiving the |
| 1454 | demand, the tenant shall receive credit for the prepaid rent for |
| 1455 | the applicable period but and must make any subsequent rental |
| 1456 | payments to the association to be credited against the monetary |
| 1457 | obligations of the unit owner to the association. |
| 1458 | (b) The tenant is not liable for increases in the amount |
| 1459 | of the regular monetary obligations due unless the tenant was |
| 1460 | notified in writing of the increase at least 10 days before the |
| 1461 | date on which the rent is due. The liability of the tenant may |
| 1462 | not exceed the amount due from the tenant to the tenant's |
| 1463 | landlord. The tenant's landlord shall provide the tenant a |
| 1464 | credit against rents due to the unit owner in the amount of |
| 1465 | moneys paid to the association under this section. |
| 1466 | (c) The association may issue notices under s. 83.56 and |
| 1467 | may sue for eviction under ss. 83.59-83.625 as if the |
| 1468 | association were a landlord under part II of chapter 83 if the |
| 1469 | tenant fails to pay a required payment. However, the association |
| 1470 | is not otherwise considered a landlord under chapter 83 and |
| 1471 | specifically has no obligations duties under s. 83.51. |
| 1472 | (d) The tenant does not, by virtue of payment of monetary |
| 1473 | obligations, have any of the rights of a unit owner to vote in |
| 1474 | any election or to examine the books and records of the |
| 1475 | association. |
| 1476 | (e) A court may supersede the effect of this subsection by |
| 1477 | appointing a receiver. |
| 1478 | Section 15. Subsection (3) of section 719.303, Florida |
| 1479 | Statutes, is amended, and subsections (4), (5), and (6) are |
| 1480 | added to that section, to read: |
| 1481 | 719.303 Obligations of owners.- |
| 1482 | (3) If the cooperative documents so provide, The |
| 1483 | association may levy reasonable fines against a unit owner for |
| 1484 | failure of the unit owner or the unit's occupant, his or her |
| 1485 | licensee, or invitee or the unit's occupant to comply with any |
| 1486 | provision of the cooperative documents or reasonable rules of |
| 1487 | the association. A fine may not No fine shall become a lien |
| 1488 | against a unit. No fine shall exceed $100 per violation. |
| 1489 | However, A fine may be levied on the basis of each day of a |
| 1490 | continuing violation, with a single notice and opportunity for |
| 1491 | hearing. However, the fine may not exceed $100 per violation, or |
| 1492 | $1,000 provided that no such fine shall in the aggregate exceed |
| 1493 | $1,000. |
| 1494 | (a) An association may suspend, for a reasonable period of |
| 1495 | time, the right of a unit owner, or a unit owner's tenant, |
| 1496 | guest, or invitee, to use the common elements, common |
| 1497 | facilities, or any other association property for failure to |
| 1498 | comply with any provision of the cooperative documents or |
| 1499 | reasonable rules of the association. |
| 1500 | (b) A No fine or suspension may not be imposed levied |
| 1501 | except after giving reasonable notice and opportunity for a |
| 1502 | hearing to the unit owner and, if applicable, the unit's his or |
| 1503 | her licensee or invitee. The hearing must shall be held before a |
| 1504 | committee of other unit owners. If the committee does not agree |
| 1505 | with the fine or suspension, it may shall not be imposed levied. |
| 1506 | This subsection does not apply to unoccupied units. |
| 1507 | (4) If a unit owner is more than 90 days delinquent in |
| 1508 | paying a monetary obligation due to the association, the |
| 1509 | association may suspend the right of the unit owner or the |
| 1510 | unit's occupant, licensee, or invitee to use common elements, |
| 1511 | common facilities, or any other association property until the |
| 1512 | monetary obligation is paid in full. This subsection does not |
| 1513 | apply to limited common elements intended to be used only by |
| 1514 | that unit, common elements needed to access the unit, utility |
| 1515 | services provided to the unit, parking spaces, or elevators. The |
| 1516 | notice and hearing requirements under subsection (3) do not |
| 1517 | apply to suspensions imposed under this subsection. |
| 1518 | (5) An association may suspend the voting rights of a |
| 1519 | member due to nonpayment of any monetary obligation due to the |
| 1520 | association which is more than 90 days delinquent. The |
| 1521 | suspension ends upon full payment of all obligations currently |
| 1522 | due or overdue the association. A voting interest or consent |
| 1523 | right allocated to a unit which has been suspended by the |
| 1524 | association may not be exercised or considered for any purpose, |
| 1525 | including, but not limited to, a quorum, an election, or the |
| 1526 | votes required to approve an action under this chapter or |
| 1527 | pursuant to the cooperative documents. The notice and hearing |
| 1528 | requirements under subsection (3) do not apply to a suspension |
| 1529 | imposed under this subsection. |
| 1530 | (6) All suspensions imposed pursuant to subsection (4) or |
| 1531 | subsection (5) must be approved at a properly noticed board |
| 1532 | meeting. Upon approval, the association must notify the unit |
| 1533 | owner and, if applicable, the unit's occupant, licensee, or |
| 1534 | invitee by mail or hand delivery. |
| 1535 | Section 16. Subsection (4) of section 720.301, Florida |
| 1536 | Statutes, is amended to read: |
| 1537 | 720.301 Definitions.-As used in this chapter, the term: |
| 1538 | (4) "Declaration of covenants," or "declaration," means a |
| 1539 | recorded written instrument or instruments in the nature of |
| 1540 | covenants running with the land which subject subjects the land |
| 1541 | comprising the community to the jurisdiction and control of an |
| 1542 | association or associations in which the owners of the parcels, |
| 1543 | or their association representatives, must be members. |
| 1544 | Section 17. Paragraph (c) of subsection (5) of section |
| 1545 | 720.303, Florida Statutes, is amended to read: |
| 1546 | 720.303 Association powers and duties; meetings of board; |
| 1547 | official records; budgets; financial reporting; association |
| 1548 | funds; recalls.- |
| 1549 | (5) INSPECTION AND COPYING OF RECORDS.-The official |
| 1550 | records shall be maintained within the state and must be open to |
| 1551 | inspection and available for photocopying by members or their |
| 1552 | authorized agents at reasonable times and places within 10 |
| 1553 | business days after receipt of a written request for access. |
| 1554 | This subsection may be complied with by having a copy of the |
| 1555 | official records available for inspection or copying in the |
| 1556 | community. If the association has a photocopy machine available |
| 1557 | where the records are maintained, it must provide parcel owners |
| 1558 | with copies on request during the inspection if the entire |
| 1559 | request is limited to no more than 25 pages. |
| 1560 | (c) The association may adopt reasonable written rules |
| 1561 | governing the frequency, time, location, notice, records to be |
| 1562 | inspected, and manner of inspections, but may not require a |
| 1563 | parcel owner to demonstrate any proper purpose for the |
| 1564 | inspection, state any reason for the inspection, or limit a |
| 1565 | parcel owner's right to inspect records to less than one 8-hour |
| 1566 | business day per month. The association may impose fees to cover |
| 1567 | the costs of providing copies of the official records, |
| 1568 | including, without limitation, the costs of copying. The |
| 1569 | association may charge up to 50 cents per page for copies made |
| 1570 | on the association's photocopier. If the association does not |
| 1571 | have a photocopy machine available where the records are kept, |
| 1572 | or if the records requested to be copied exceed 25 pages in |
| 1573 | length, the association may have copies made by an outside |
| 1574 | vendor or association management company personnel and may |
| 1575 | charge the actual cost of copying, including any reasonable |
| 1576 | costs involving personnel fees and charges at an hourly rate for |
| 1577 | vendor or employee time to cover administrative costs to the |
| 1578 | vendor or association. The association shall maintain an |
| 1579 | adequate number of copies of the recorded governing documents, |
| 1580 | to ensure their availability to members and prospective members. |
| 1581 | Notwithstanding this paragraph, the following records are not |
| 1582 | accessible to members or parcel owners: |
| 1583 | 1. Any record protected by the lawyer-client privilege as |
| 1584 | described in s. 90.502 and any record protected by the work- |
| 1585 | product privilege, including, but not limited to, a any record |
| 1586 | prepared by an association attorney or prepared at the |
| 1587 | attorney's express direction which reflects a mental impression, |
| 1588 | conclusion, litigation strategy, or legal theory of the attorney |
| 1589 | or the association and which was prepared exclusively for civil |
| 1590 | or criminal litigation or for adversarial administrative |
| 1591 | proceedings or which was prepared in anticipation of such |
| 1592 | imminent civil or criminal litigation or imminent adversarial |
| 1593 | administrative proceedings until the conclusion of the |
| 1594 | litigation or administrative proceedings. |
| 1595 | 2. Information obtained by an association in connection |
| 1596 | with the approval of the lease, sale, or other transfer of a |
| 1597 | parcel. |
| 1598 | 3. Personnel records of the association's employees, |
| 1599 | including, but not limited to, disciplinary, payroll, health, |
| 1600 | and insurance records. For purposes of this subparagraph, the |
| 1601 | term "personnel records" does not include written employment |
| 1602 | agreements with an association employee or budgetary or |
| 1603 | financial records that indicate the compensation paid to an |
| 1604 | association employee. |
| 1605 | 4. Medical records of parcel owners or community |
| 1606 | residents. |
| 1607 | 5. Social security numbers, driver's license numbers, |
| 1608 | credit card numbers, electronic mailing addresses, telephone |
| 1609 | numbers, facsimile numbers, emergency contact information, any |
| 1610 | addresses for a parcel owner other than as provided for |
| 1611 | association notice requirements, and other personal identifying |
| 1612 | information of any person, excluding the person's name, parcel |
| 1613 | designation, mailing address, and property address. However, an |
| 1614 | owner may consent in writing to the disclosure of protected |
| 1615 | information described in this subparagraph. The association is |
| 1616 | not liable for the disclosure of information that is protected |
| 1617 | under this subparagraph if the information is included in an |
| 1618 | official record of the association and is voluntarily provided |
| 1619 | by an owner and not requested by the association. |
| 1620 | 6. Any electronic security measure that is used by the |
| 1621 | association to safeguard data, including passwords. |
| 1622 | 7. The software and operating system used by the |
| 1623 | association which allows the manipulation of data, even if the |
| 1624 | owner owns a copy of the same software used by the association. |
| 1625 | The data is part of the official records of the association. |
| 1626 | Section 18. Section 720.305, Florida Statutes, is amended |
| 1627 | to read: |
| 1628 | 720.305 Obligations of members; remedies at law or in |
| 1629 | equity; levy of fines and suspension of use rights.- |
| 1630 | (1) Each member and the member's tenants, guests, and |
| 1631 | invitees, and each association, are governed by, and must comply |
| 1632 | with, this chapter, the governing documents of the community, |
| 1633 | and the rules of the association. Actions at law or in equity, |
| 1634 | or both, to redress alleged failure or refusal to comply with |
| 1635 | these provisions may be brought by the association or by any |
| 1636 | member against: |
| 1637 | (a) The association; |
| 1638 | (b) A member; |
| 1639 | (c) Any director or officer of an association who |
| 1640 | willfully and knowingly fails to comply with these provisions; |
| 1641 | and |
| 1642 | (d) Any tenants, guests, or invitees occupying a parcel or |
| 1643 | using the common areas. |
| 1644 |
|
| 1645 | The prevailing party in any such litigation is entitled to |
| 1646 | recover reasonable attorney's fees and costs. A member |
| 1647 | prevailing in an action between the association and the member |
| 1648 | under this section, in addition to recovering his or her |
| 1649 | reasonable attorney's fees, may recover additional amounts as |
| 1650 | determined by the court to be necessary to reimburse the member |
| 1651 | for his or her share of assessments levied by the association to |
| 1652 | fund its expenses of the litigation. This relief does not |
| 1653 | exclude other remedies provided by law. This section does not |
| 1654 | deprive any person of any other available right or remedy. |
| 1655 | (2) The association If a member is delinquent for more |
| 1656 | than 90 days in paying a monetary obligation due the |
| 1657 | association, an association may suspend, until such monetary |
| 1658 | obligation is paid, the rights of a member or a member's |
| 1659 | tenants, guests, or invitees, or both, to use common areas and |
| 1660 | facilities and may levy reasonable fines of up to $100 per |
| 1661 | violation, against any member or any member's tenant, guest, or |
| 1662 | invitee for the failure of the owner of the parcel or its |
| 1663 | occupant, licensee, or invitee to comply with any provision of |
| 1664 | the declaration, the association bylaws, or reasonable rules of |
| 1665 | the association. A fine may be levied for each day of a |
| 1666 | continuing violation, with a single notice and opportunity for |
| 1667 | hearing, except that the a fine may not exceed $1,000 in the |
| 1668 | aggregate unless otherwise provided in the governing documents. |
| 1669 | A fine of less than $1,000 may not become a lien against a |
| 1670 | parcel. In any action to recover a fine, the prevailing party is |
| 1671 | entitled to collect its reasonable attorney's fees and costs |
| 1672 | from the nonprevailing party as determined by the court. |
| 1673 | (a) An association may suspend, for a reasonable period of |
| 1674 | time, the right of a member, or a member's tenant, guest, or |
| 1675 | invitee, to use common areas and facilities for the failure of |
| 1676 | the owner of the parcel or its occupant, licensee, or invitee to |
| 1677 | comply with any provision of the declaration, the association |
| 1678 | bylaws, or reasonable rules of the association. The provisions |
| 1679 | regarding the suspension-of-use rights do not apply to the |
| 1680 | portion of common areas that must be used to provide access to |
| 1681 | the parcel or utility services provided to the parcel. |
| 1682 | (b)(a) A fine or suspension may not be imposed without at |
| 1683 | least 14 days' notice to the person sought to be fined or |
| 1684 | suspended and an opportunity for a hearing before a committee of |
| 1685 | at least three members appointed by the board who are not |
| 1686 | officers, directors, or employees of the association, or the |
| 1687 | spouse, parent, child, brother, or sister of an officer, |
| 1688 | director, or employee. If the committee, by majority vote, does |
| 1689 | not approve a proposed fine or suspension, it may not be |
| 1690 | imposed. If the association imposes a fine or suspension, the |
| 1691 | association must provide written notice of such fine or |
| 1692 | suspension by mail or hand delivery to the parcel owner and, if |
| 1693 | applicable, to any tenant, licensee, or invitee of the parcel |
| 1694 | owner. |
| 1695 | (3) If a member is more than 90 days delinquent in paying |
| 1696 | a monetary obligation due to the association, the association |
| 1697 | may suspend the rights of the member, or the member's tenant, |
| 1698 | guest, or invitee, to use common areas and facilities until the |
| 1699 | monetary obligation is paid in full. This subsection does not |
| 1700 | apply to that portion of common areas used to provide access or |
| 1701 | utility services to the parcel. |
| 1702 | (b) Suspension does of common-area-use rights do not |
| 1703 | impair the right of an owner or tenant of a parcel to have |
| 1704 | vehicular and pedestrian ingress to and egress from the parcel, |
| 1705 | including, but not limited to, the right to park. The notice and |
| 1706 | hearing requirements under subsection (2) do not apply to a |
| 1707 | suspension imposed under this subsection. |
| 1708 | (4)(3) If the governing documents so provide, An |
| 1709 | association may suspend the voting rights of a member for the |
| 1710 | nonpayment of any monetary obligation that is more than regular |
| 1711 | annual assessments that are delinquent in excess of 90 days |
| 1712 | delinquent. A voting interest or consent right allocated to a |
| 1713 | parcel which has been suspended by the association may not be |
| 1714 | exercised or considered for any purpose, including, but not |
| 1715 | limited to, a quorum, an election, or the votes required to |
| 1716 | approve an action under this chapter or pursuant to the |
| 1717 | governing documents. The notice and hearing requirements under |
| 1718 | subsection (3) do not apply to a suspension imposed under this |
| 1719 | subsection. The suspension ends upon full payment of all |
| 1720 | obligations currently due or overdue to the association. |
| 1721 | (5) All suspensions imposed pursuant to subsection (3) or |
| 1722 | subsection (4) must be approved at a properly noticed board |
| 1723 | meeting. Upon approval, the association must notify the parcel |
| 1724 | owner and, if applicable, the parcel's occupant, licensee, or |
| 1725 | invitee by mail or hand delivery. |
| 1726 | Section 19. Subsection (9) of section 720.306, Florida |
| 1727 | Statutes, is amended to read: |
| 1728 | 720.306 Meetings of members; voting and election |
| 1729 | procedures; amendments.- |
| 1730 | (9)(a) ELECTIONS AND BOARD VACANCIES.- Elections of |
| 1731 | directors must be conducted in accordance with the procedures |
| 1732 | set forth in the governing documents of the association. All |
| 1733 | members of the association are eligible to serve on the board of |
| 1734 | directors, and a member may nominate himself or herself as a |
| 1735 | candidate for the board at a meeting where the election is to be |
| 1736 | held or, if the election process allows voting by absentee |
| 1737 | ballot, in advance of the balloting. Except as otherwise |
| 1738 | provided in the governing documents, boards of directors must be |
| 1739 | elected by a plurality of the votes cast by eligible voters. |
| 1740 | (b) A person who is delinquent in the payment of any fee, |
| 1741 | fine, or other monetary obligation to the association for more |
| 1742 | than 90 days is not eligible for board membership. A person who |
| 1743 | has been convicted of any felony in this state or in a United |
| 1744 | States District or Territorial Court, or has been convicted of |
| 1745 | any offense in another jurisdiction which would be considered a |
| 1746 | felony if committed in this state, is not eligible for board |
| 1747 | membership unless such felon's civil rights have been restored |
| 1748 | for at least 5 years as of the date on which such person seeks |
| 1749 | election to the board. The validity of any action by the board |
| 1750 | is not affected if it is later determined that a member of the |
| 1751 | board is ineligible for board membership. |
| 1752 | (c) Any election dispute between a member and an |
| 1753 | association must be submitted to mandatory binding arbitration |
| 1754 | with the division. Such proceedings must be conducted in the |
| 1755 | manner provided by s. 718.1255 and the procedural rules adopted |
| 1756 | by the division. Unless otherwise provided in the bylaws, any |
| 1757 | vacancy occurring on the board before the expiration of a term |
| 1758 | may be filled by an affirmative vote of the majority of the |
| 1759 | remaining directors, even if the remaining directors constitute |
| 1760 | less than a quorum, or by the sole remaining director. In the |
| 1761 | alternative, a board may hold an election to fill the vacancy, |
| 1762 | in which case the election procedures must conform to the |
| 1763 | requirements of the governing documents. Unless otherwise |
| 1764 | provided in the bylaws, a board member appointed or elected |
| 1765 | under this section is appointed for the unexpired term of the |
| 1766 | seat being filled. Filling vacancies created by recall is |
| 1767 | governed by s. 720.303(10) and rules adopted by the division. |
| 1768 | Section 20. Paragraph (a) of subsection (1) and |
| 1769 | subsections (3) and (8) of section 720.3085, Florida Statutes, |
| 1770 | are amended to read: |
| 1771 | 720.3085 Payment for assessments; lien claims.- |
| 1772 | (1) When authorized by the governing documents, the |
| 1773 | association has a lien on each parcel to secure the payment of |
| 1774 | assessments and other amounts provided for by this section. |
| 1775 | Except as otherwise set forth in this section, the lien is |
| 1776 | effective from and shall relate back to the date on which the |
| 1777 | original declaration of the community was recorded. However, as |
| 1778 | to first mortgages of record, the lien is effective from and |
| 1779 | after recording of a claim of lien in the public records of the |
| 1780 | county in which the parcel is located. This subsection does not |
| 1781 | bestow upon any lien, mortgage, or certified judgment of record |
| 1782 | on July 1, 2008, including the lien for unpaid assessments |
| 1783 | created in this section, a priority that, by law, the lien, |
| 1784 | mortgage, or judgment did not have before July 1, 2008. |
| 1785 | (a) To be valid, a claim of lien must state the |
| 1786 | description of the parcel, the name of the record owner, the |
| 1787 | name and address of the association, the assessment amount due, |
| 1788 | and the due date. The claim of lien secures shall secure all |
| 1789 | unpaid assessments that are due and that may accrue subsequent |
| 1790 | to the recording of the claim of lien and before entry of a |
| 1791 | certificate of title, as well as interest, late charges, and |
| 1792 | reasonable costs and attorney's fees incurred by the association |
| 1793 | incident to the collection process. The person making the |
| 1794 | payment is entitled to a satisfaction of the lien upon payment |
| 1795 | in full. |
| 1796 | (3) Assessments and installments on assessments that are |
| 1797 | not paid when due bear interest from the due date until paid at |
| 1798 | the rate provided in the declaration of covenants or the bylaws |
| 1799 | of the association, which rate may not exceed the rate allowed |
| 1800 | by law. If no rate is provided in the declaration or bylaws, |
| 1801 | interest accrues at the rate of 18 percent per year. |
| 1802 | (a) If the declaration or bylaws so provide, the |
| 1803 | association may also charge an administrative late fee in an |
| 1804 | amount not to exceed the greater of $25 or 5 percent of the |
| 1805 | amount of each installment that is paid past the due date. |
| 1806 | (b) Any payment received by an association and accepted |
| 1807 | shall be applied first to any interest accrued, then to any |
| 1808 | administrative late fee, then to any costs and reasonable |
| 1809 | attorney's fees incurred in collection, and then to the |
| 1810 | delinquent assessment. This paragraph applies notwithstanding |
| 1811 | any restrictive endorsement, designation, or instruction placed |
| 1812 | on or accompanying a payment. A late fee is not subject to the |
| 1813 | provisions of chapter 687 and is not a fine. |
| 1814 | (8) If the parcel is occupied by a tenant and the parcel |
| 1815 | owner is delinquent in paying any monetary obligation due to the |
| 1816 | association, the association may demand that the tenant pay rent |
| 1817 | to the association and continue to make such payments until all |
| 1818 | the monetary obligations of the parcel owner related to the |
| 1819 | parcel have been paid in full and the future monetary |
| 1820 | obligations related to the parcel. The demand is continuing in |
| 1821 | nature, and upon demand, the tenant must continue to pay the |
| 1822 | monetary obligations until the association releases the tenant |
| 1823 | or until the tenant discontinues tenancy in the parcel. A tenant |
| 1824 | who acts in good faith in response to a written demand from an |
| 1825 | association is immune from any claim by from the parcel owner |
| 1826 | related to the rent once the association has made written |
| 1827 | demand. Any payment received from a tenant by the association |
| 1828 | must be applied to the parcel owner's oldest delinquent monetary |
| 1829 | obligation. |
| 1830 | (a) If the tenant paid prepaid rent to the parcel owner |
| 1831 | for a given rental period before receiving the demand from the |
| 1832 | association and provides written evidence of prepaying paying |
| 1833 | the rent to the association within 14 days after receiving the |
| 1834 | demand, the tenant shall receive credit for the prepaid rent for |
| 1835 | the applicable period but and must make any subsequent rental |
| 1836 | payments to the association to be credited against the monetary |
| 1837 | obligations of the parcel owner to the association. The |
| 1838 | association shall, upon request, provide the tenant with written |
| 1839 | receipts for payments made. The association shall mail written |
| 1840 | notice to the parcel owner of the association's demand that the |
| 1841 | tenant pay monetary obligations to the association. |
| 1842 | (b) The tenant is not liable for increases in the amount |
| 1843 | of the monetary obligations due unless the tenant was notified |
| 1844 | in writing of the increase at least 10 days before the date on |
| 1845 | which the rent is due. The liability of the tenant may not |
| 1846 | exceed the amount due from the tenant to the tenant's landlord. |
| 1847 | The tenant shall be given a credit against rents due to the |
| 1848 | parcel owner in the amount of assessments paid to the |
| 1849 | association. |
| 1850 | (c) The association may issue notices under s. 83.56 and |
| 1851 | may sue for eviction under ss. 83.59-83.625 as if the |
| 1852 | association were a landlord under part II of chapter 83 if the |
| 1853 | tenant fails to pay a monetary obligation. However, the |
| 1854 | association is not otherwise considered a landlord under chapter |
| 1855 | 83 and specifically has no obligations duties under s. 83.51. |
| 1856 | (d) The tenant does not, by virtue of payment of monetary |
| 1857 | obligations, have any of the rights of a parcel owner to vote in |
| 1858 | any election or to examine the books and records of the |
| 1859 | association. |
| 1860 | (e) A court may supersede the effect of this subsection by |
| 1861 | appointing a receiver. |
| 1862 | Section 21. Section 720.309, Florida Statutes, is amended |
| 1863 | to read: |
| 1864 | 720.309 Agreements entered into by the association.- |
| 1865 | (1) Any grant or reservation made by any document, and any |
| 1866 | contract that has with a term greater than in excess of 10 |
| 1867 | years, that is made by an association before control of the |
| 1868 | association is turned over to the members other than the |
| 1869 | developer, and that provides which provide for the operation, |
| 1870 | maintenance, or management of the association or common areas, |
| 1871 | must be fair and reasonable. |
| 1872 | (2) If the governing documents provide for the cost of |
| 1873 | communications services as defined in s. 202.11, information |
| 1874 | services or Internet services obtained pursuant to a bulk |
| 1875 | contract shall be deemed an operating expense of the |
| 1876 | association. If the governing documents do not provide for such |
| 1877 | services, the board may contract for the services, and the cost |
| 1878 | shall be deemed an operating expense of the association but must |
| 1879 | be allocated on a per-parcel basis rather than a percentage |
| 1880 | basis, notwithstanding that the governing documents provide for |
| 1881 | other than an equal sharing of operating expenses. Any contract |
| 1882 | entered into before July 1, 2011, in which the cost of the |
| 1883 | service is not equally divided among all parcel owners may be |
| 1884 | changed by a majority of the voting interests present at a |
| 1885 | regular or special meeting of the association in order to |
| 1886 | allocate the cost equally among all parcels. |
| 1887 | (a) Any contract entered into by the board may be canceled |
| 1888 | by a majority of the voting interests present at the next |
| 1889 | regular or special meeting of the association, whichever occurs |
| 1890 | first. Any member may make a motion to cancel such contract, but |
| 1891 | if no motion is made or if such motion fails to obtain the |
| 1892 | required vote, the contract shall be deemed ratified for the |
| 1893 | term expressed therein. |
| 1894 | (b) Any contract entered into by the board must provide, |
| 1895 | and shall be deemed to provide if not expressly set forth |
| 1896 | therein, that a hearing-impaired or legally blind parcel owner |
| 1897 | who does not occupy the parcel with a non-hearing-impaired or |
| 1898 | sighted person, or a parcel owner who receives supplemental |
| 1899 | security income under Title XVI of the Social Security Act or |
| 1900 | food assistance as administered by the Department of Children |
| 1901 | and Family Services pursuant to s. 414.31, may discontinue the |
| 1902 | service without incurring disconnect fees, penalties, or |
| 1903 | subsequent service charges, and may not be required to pay any |
| 1904 | operating expenses charge related to such service for those |
| 1905 | parcels. If fewer than all parcel owners share the expenses of |
| 1906 | the communications services, information services, or Internet |
| 1907 | services, the expense must be shared by all participating parcel |
| 1908 | owners. The association may use the provisions of s. 720.3085 to |
| 1909 | enforce payment by the parcel owners receiving such services. |
| 1910 | (c) A resident of any parcel, whether a tenant or parcel |
| 1911 | owner, may not be denied access to available franchised, |
| 1912 | licensed, or certificated cable or video service providers if |
| 1913 | the resident pays the provider directly for services. A resident |
| 1914 | or a cable or video service provider may not be required to pay |
| 1915 | anything of value in order to obtain or provide such service |
| 1916 | except for the charges normally paid for like services by |
| 1917 | residents of single-family homes located outside the community |
| 1918 | but within the same franchised, licensed, or certificated area, |
| 1919 | and except for installation charges agreed to between the |
| 1920 | resident and the service provider. |
| 1921 | Section 22. This act shall take effect July 1, 2011. |