Florida Senate - 2013                       CS for CS for SB 580
       By the Committees on Community Affairs; and Regulated
       Industries; and Senator Hays
       578-03999-13                                           2013580c2
    1                        A bill to be entitled                      
    2         An act relating to homeowners’ associations; amending
    3         s. 468.436, F.S.; providing grounds for disciplinary
    4         actions against community association managers;
    5         amending s. 720.303, F.S.; requiring official records
    6         to be maintained within a specified distance of the
    7         association for a specified time; authorizing
    8         associations to maintain such records online;
    9         requiring associations to allow a member to use a
   10         portable device to make an electronic copy of the
   11         official records and prohibiting associations from
   12         charging a fee for such an electronic copy; removing
   13         provisions allowing the association to charge fees for
   14         personnel costs related to records access; requiring
   15         budgets to designate permissible uses of reserve
   16         accounts; requiring a community association manager,
   17         or the association in the absence of a community
   18         association manager, to report certain information to
   19         the Division of Florida Condominiums, Timeshares, and
   20         Mobile Homes; providing an expiration date for the
   21         reporting requirements; creating s. 720.3033, F.S.;
   22         requiring association directors to file with the
   23         association secretary written certification that they
   24         have read certain association documents, will uphold
   25         the documents, and will uphold their fiduciary
   26         responsibility to the members; providing for an
   27         educational certificate in lieu of written
   28         certification; providing that such certification is
   29         valid while the director is on the board; providing
   30         penalties for failure to file such certification;
   31         requiring the association secretary to retain such
   32         certification for 5 years; requiring the board to
   33         follow specified procedures relating to contracts or
   34         transactions between the association and certain
   35         entities; providing for disclosure of the contract or
   36         transaction to members; providing for the cancellation
   37         of such contract or transaction under certain
   38         circumstances; prohibiting any association officer,
   39         director, or manager from soliciting or receiving
   40         certain personal benefits from any person providing or
   41         offering to provide goods or services to the
   42         association and providing for removal for knowingly
   43         taking such action; providing an exception; providing
   44         for the removal of any director or officer charged
   45         with a felony theft or embezzlement offense involving
   46         association funds or property; providing for the
   47         reinstatement of such person under certain
   48         circumstances; prohibiting a member with pending
   49         criminal charges from certain positions; requiring the
   50         association to maintain insurance or a bond to cover
   51         funds that will be in the custody of the association
   52         or its management agent; providing a definition;
   53         amending s. 720.306, F.S.; revising provisions
   54         relating to the amendment of homeowners’ association
   55         declarations; providing legislative findings and a
   56         finding of compelling state interest; providing
   57         criteria for consent or joinder to an amendment;
   58         requiring notice to mortgagees regarding proposed
   59         amendments; providing criteria for notification;
   60         providing for voiding certain amendments; revising
   61         procedures for the election of directors; amending s.
   62         720.307, F.S.; providing additional circumstances for
   63         authorizing members to elect a majority of association
   64         board members; providing circumstances under which
   65         members other than the developer are authorized to
   66         elect a specified number of members to the board of
   67         directors; amending s. 720.3075, F.S.; providing
   68         public policy regarding prohibited clauses in
   69         association documents; providing prohibited clauses in
   70         association documents; amending s. 720.3085, F.S.;
   71         defining the term “previous owner” to exclude certain
   72         associations from provisions relating to the liability
   73         of previous owners of parcels for unpaid assessments;
   74         limiting a present owner’s liability for certain
   75         assessments; amending s. 720.315, F.S.; prohibiting
   76         increases in assessments levied pursuant to the annual
   77         budget under certain circumstances; providing an
   78         effective date.
   80  Be It Enacted by the Legislature of the State of Florida:
   82         Section 1. Paragraph (b) of subsection (2) of section
   83  468.436, Florida Statutes, is amended to read:
   84         468.436 Disciplinary proceedings.—
   85         (2) The following acts constitute grounds for which the
   86  disciplinary actions in subsection (4) may be taken:
   87         (b)1. Violation of any provision of this part.
   88         2. Violation of any lawful order or rule rendered or
   89  adopted by the department or the council.
   90         3. Being convicted of or pleading nolo contendere to a
   91  felony in any court in the United States.
   92         4. Obtaining a license or certification or any other order,
   93  ruling, or authorization by means of fraud, misrepresentation,
   94  or concealment of material facts.
   95         5. Committing acts of gross misconduct or gross negligence
   96  in connection with the profession.
   97         6. Contracting, on behalf of an association, with any
   98  entity in which the licensee has a financial interest that is
   99  not disclosed.
  100         7. Failing to report to the division as required in s.
  101  720.303(13).
  102         8. Violating any provision of chapters 718, 719, or 720
  103  during the course of performing community association management
  104  services pursuant to a contract with a community association.
  105         Section 2. Subsection (5) and paragraph (d) of subsection
  106  (6) of section 720.303, Florida Statutes, are amended, and
  107  subsection (13) is added to that section, to read:
  108         720.303 Association powers and duties; meetings of board;
  109  official records; budgets; financial reporting; association
  110  funds; recalls.—
  111         (5) INSPECTION AND COPYING OF RECORDS.—The official records
  112  shall be maintained within the state for at least 7 years and
  113  shall be made available to a parcel owner for inspection or
  114  photocopying within 45 miles of the community or within the
  115  county in which the association is located within 10 business
  116  days after receipt by the board or its designee of a written
  117  request must be open to inspection and available for
  118  photocopying by members or their authorized agents at reasonable
  119  times and places within 10 business days after receipt of a
  120  written request for access. This subsection may be complied with
  121  by having a copy of the official records available for
  122  inspection or copying in the community or, at the option of the
  123  association, by making the records available to a parcel owner
  124  electronically via the Internet or by allowing the records to be
  125  viewed in electronic format on a computer screen and printed
  126  upon request. If the association has a photocopy machine
  127  available where the records are maintained, it must provide
  128  parcel owners with copies on request during the inspection if
  129  the entire request is limited to no more than 25 pages. An
  130  association shall allow a member or his or her authorized
  131  representative to use a portable device, including a smartphone,
  132  tablet, portable scanner, or any other technology capable of
  133  scanning or taking photographs, to make an electronic copy of
  134  the official records in lieu of providing the member or his or
  135  her authorized representative with a copy of such records. The
  136  association may not charge a fee to a member or his or her
  137  authorized representative for such use of a portable device.
  138         (a) The failure of an association to provide access to the
  139  records within 10 business days after receipt of a written
  140  request submitted by certified mail, return receipt requested,
  141  creates a rebuttable presumption that the association willfully
  142  failed to comply with this subsection.
  143         (b) A member who is denied access to official records is
  144  entitled to the actual damages or minimum damages for the
  145  association’s willful failure to comply with this subsection.
  146  The minimum damages are to be $50 per calendar day up to 10
  147  days, the calculation to begin on the 11th business day after
  148  receipt of the written request.
  149         (c) The association may adopt reasonable written rules
  150  governing the frequency, time, location, notice, records to be
  151  inspected, and manner of inspections, but may not require a
  152  parcel owner to demonstrate any proper purpose for the
  153  inspection, state any reason for the inspection, or limit a
  154  parcel owner’s right to inspect records to less than one 8-hour
  155  business day per month. The association may impose fees to cover
  156  the costs of providing copies of the official records,
  157  including, without limitation, the costs of copying and the
  158  costs required for personnel to retrieve and copy the records if
  159  the time spent retrieving and copying the records exceeds one
  160  half hour and if the personnel costs do not exceed $20 per hour.
  161  No personnel costs may be charged for records requests that
  162  result in 25 or fewer pages. The association may charge up to 25
  163  50 cents per page for copies made on the association’s
  164  photocopier. If the association does not have a photocopy
  165  machine available where the records are kept, or if the records
  166  requested to be copied exceed 25 pages in length, the
  167  association may have copies made by an outside duplicating
  168  service vendor or association management company personnel and
  169  may charge the actual cost of copying, as supported by the
  170  vendor invoice including any reasonable costs involving
  171  personnel fees and charges at an hourly rate for vendor or
  172  employee time to cover administrative costs to the vendor or
  173  association. The association shall maintain an adequate number
  174  of copies of the recorded governing documents, to ensure their
  175  availability to members and prospective members. Notwithstanding
  176  this paragraph, the following records are not accessible to
  177  members or parcel owners:
  178         1. Any record protected by the lawyer-client privilege as
  179  described in s. 90.502 and any record protected by the work
  180  product privilege, including, but not limited to, a record
  181  prepared by an association attorney or prepared at the
  182  attorney’s express direction which reflects a mental impression,
  183  conclusion, litigation strategy, or legal theory of the attorney
  184  or the association and which was prepared exclusively for civil
  185  or criminal litigation or for adversarial administrative
  186  proceedings or which was prepared in anticipation of such
  187  litigation or proceedings until the conclusion of the litigation
  188  or proceedings.
  189         2. Information obtained by an association in connection
  190  with the approval of the lease, sale, or other transfer of a
  191  parcel.
  192         3. Personnel records of the association’s employees,
  193  including, but not limited to, disciplinary, payroll, health,
  194  and insurance records. For purposes of this subparagraph, the
  195  term “personnel records” does not include written employment
  196  agreements with an association employee or budgetary or
  197  financial records that indicate the compensation paid to an
  198  association employee.
  199         4. Medical records of parcel owners or community residents.
  200         5. Social security numbers, driver’s license numbers,
  201  credit card numbers, electronic mailing addresses, telephone
  202  numbers, facsimile numbers, emergency contact information, any
  203  addresses for a parcel owner other than as provided for
  204  association notice requirements, and other personal identifying
  205  information of any person, excluding the person’s name, parcel
  206  designation, mailing address, and property address. However, an
  207  owner may consent in writing to the disclosure of protected
  208  information described in this subparagraph. The association is
  209  not liable for the disclosure of information that is protected
  210  under this subparagraph if the information is included in an
  211  official record of the association and is voluntarily provided
  212  by an owner and not requested by the association.
  213         6. Any electronic security measure that is used by the
  214  association to safeguard data, including passwords.
  215         7. The software and operating system used by the
  216  association which allows the manipulation of data, even if the
  217  owner owns a copy of the same software used by the association.
  218  The data is part of the official records of the association.
  219         (d) The association or its authorized agent is not required
  220  to provide a prospective purchaser or lienholder with
  221  information about the residential subdivision or the association
  222  other than information or documents required by this chapter to
  223  be made available or disclosed. The association or its
  224  authorized agent may charge a reasonable fee to the prospective
  225  purchaser or lienholder or the current parcel owner or member
  226  for providing good faith responses to requests for information
  227  by or on behalf of a prospective purchaser or lienholder, other
  228  than that required by law, if the fee does not exceed $150 plus
  229  the reasonable cost of photocopying and any attorney’s fees
  230  incurred by the association in connection with the response.
  231         (6) BUDGETS.—
  232         (d) An association is deemed to have provided for reserve
  233  accounts if reserve accounts have been initially established by
  234  the developer or if the membership of the association
  235  affirmatively elects to provide for reserves. If reserve
  236  accounts are established by the developer, the budget must
  237  designate the components for which the reserve accounts may be
  238  used. If reserve accounts are not initially provided by the
  239  developer, the membership of the association may elect to do so
  240  upon the affirmative approval of a majority of the total voting
  241  interests of the association. Such approval may be obtained by
  242  vote of the members at a duly called meeting of the membership
  243  or by the written consent of a majority of the total voting
  244  interests of the association. The approval action of the
  245  membership must state that reserve accounts shall be provided
  246  for in the budget and must designate the components for which
  247  the reserve accounts are to be established. Upon approval by the
  248  membership, the board of directors shall include the required
  249  reserve accounts in the budget in the next fiscal year following
  250  the approval and each year thereafter. Once established as
  251  provided in this subsection, the reserve accounts must be funded
  252  or maintained or have their funding waived in the manner
  253  provided in paragraph (f).
  254         (13) REPORTING REQUIREMENT.—The community association
  255  manager, or the association when there is no community
  256  association manager, shall report to the division by November
  257  22, 2013, and annually thereafter, in a manner and form
  258  prescribed by the division.
  259         (a) The report shall include the association’s:
  260         1. Legal name.
  261         2. Federal employer identification number.
  262         3. Mailing and physical addresses.
  263         4. Total number of parcels.
  264         5. Total amount of revenues and expenses from the
  265  association’s annual budget.
  266         (b) For associations in which control of the association
  267  has not been transitioned to nondeveloper members, as set forth
  268  in s. 720.307, the report shall also include the developer’s:
  269         1. Legal name.
  270         2. Mailing address.
  271         3. Total number of parcels owned on the date of reporting.
  272         (c) By October 1, 2013, the department shall establish and
  273  implement a registration system through an Internet website that
  274  provides for the reporting requirements of paragraphs (a) and
  275  (b).
  276         (d) On or before December 1, 2013, and annually thereafter
  277  by December 1, the department shall submit a report to the
  278  Governor, the President of the Senate, and the Speaker of the
  279  House of Representatives providing the homeowner association
  280  data reported pursuant to this subsection.
  281         (e) The department may adopt rules pursuant to ss.
  282  120.536(1) and 120.54 to implement the provisions of this
  283  subsection.
  284         (f) This subsection shall expire on July 1, 2016, unless
  285  reenacted by the Legislature.
  286         Section 3. Section 720.3033, Florida Statutes, is created
  287  to read:
  288         720.3033 Officers and directors.—
  289         (1)(a) Within 90 days after being elected or appointed to
  290  the board, each director shall certify in writing to the
  291  secretary of the association that he or she has read the
  292  association’s declaration of covenants, articles of
  293  incorporation, bylaws, and current written rules and policies;
  294  that he or she will work to uphold such documents and policies
  295  to the best of his or her ability; and that he or she will
  296  faithfully discharge his or her fiduciary responsibility to the
  297  association’s members. Within 90 days after being elected or
  298  appointed to the board, in lieu of this written certification,
  299  the newly elected or appointed director may submit a certificate
  300  of having satisfactorily completed the educational curriculum
  301  administered by a division-approved education provider within 1
  302  year before or 90 days after the date of election or
  303  appointment.
  304         (b) The written certification or educational certificate is
  305  valid for the uninterrupted tenure of the director on the board.
  306  A director who does not timely file the written certification or
  307  educational certificate shall be suspended from the board until
  308  he or she complies with the requirement. The board may
  309  temporarily fill the vacancy during the period of suspension.
  310         (c) The association shall retain each director’s written
  311  certification or educational certificate for inspection by the
  312  members for 5 years after the director’s election. However, the
  313  failure to have the written certification or educational
  314  certificate on file does not affect the validity of any board
  315  action.
  316         (2) If the association enters into a contract or other
  317  transaction with any of its directors or a corporation, firm,
  318  association, or other entity in which an association director is
  319  also a director or officer or is financially interested, the
  320  board must:
  321         (a) Comply with the requirements of s. 617.0832.
  322         (b) Enter the disclosures required by s. 617.0832 into the
  323  written minutes of the meeting.
  324         (c) Approve the contract or other transaction by an
  325  affirmative vote of two-thirds of the directors present.
  326         (d) At the next regular or special meeting of the members,
  327  disclose the existence of the contract or other transaction to
  328  the members. Upon motion of any member, the contract or
  329  transaction shall be brought up for a vote and may be canceled
  330  by a majority vote of the members present. If the members cancel
  331  the contract, the association is only liable for the reasonable
  332  value of goods and services provided up to the time of
  333  cancellation and is not liable for any termination fee,
  334  liquidated damages, or other penalty for such cancellation.
  335         (3) An officer, director, or manager may not solicit, offer
  336  to accept, or accept any good or service of value for which
  337  consideration has not been provided for his or her benefit or
  338  for the benefit of a member of his or her immediate family from
  339  any person providing or proposing to provide goods or services
  340  to the association. If the board finds that an officer or
  341  director has violated this subsection, the board shall
  342  immediately remove from office the officer or director. The
  343  vacancy shall be filled according to law until the end of the
  344  period of the end of the director’s term of office. However, an
  345  officer, director, or manager may accept food to be consumed at
  346  a business meeting with a value of less than $25 per individual
  347  or a service or good received in connection with trade fairs or
  348  education programs.
  349         (4) A director or officer charged by information or
  350  indictment with a felony theft or embezzlement offense involving
  351  the association’s funds or property is removed from office. The
  352  board shall immediately remove such director or officer from
  353  office and shall fill the vacancy according to general law until
  354  the end of the period of the suspension or the end of the
  355  director’s term of office, whichever occurs first. However, if
  356  the charges are resolved without a finding of guilt or without
  357  acceptance of a plea of guilty or nolo contendere, the director
  358  or officer shall be reinstated for any remainder of his or her
  359  term of office. A member who has such criminal charges pending
  360  may not be appointed or elected to a position as a director or
  361  officer.
  362         (5) All associations shall maintain insurance or a fidelity
  363  bond for all persons who control or disburse funds of the
  364  association. The insurance policy or fidelity bond must cover
  365  the maximum funds that will be in the custody of the association
  366  or its management agent at any one time. As used in this
  367  subsection, the term “persons who control or disburse funds of
  368  the association” includes, but is not limited to, persons
  369  authorized to sign checks on behalf of the association, and the
  370  president, secretary, and treasurer of the association. The
  371  association shall bear the cost of any insurance or bond.
  372         Section 4. Paragraph (d) is added to subsection (1) and
  373  paragraph (a) of subsection (9) of section 720.306, Florida
  374  Statutes, are amended to read:
  375         720.306 Meetings of members; voting and election
  376  procedures; amendments.—
  377         (1) QUORUM; AMENDMENTS.—
  378         (d) The Legislature finds that the procurement of mortgagee
  379  consent to amendments that do not affect the rights or interests
  380  of mortgagees is an unreasonable and substantial logistical and
  381  financial burden on the parcel owners and that there is a
  382  compelling state interest in enabling the members of an
  383  association to approve amendments to the association’s governing
  384  documents through legal means. Accordingly, and notwithstanding
  385  any provision of this paragraph to the contrary:
  386         1. As to any mortgage recorded on or after July 1, 2013,
  387  any provision in the association’s governing documents that
  388  requires the consent or joinder of some or all mortgagees of
  389  parcels or any other portion of the association’s common areas
  390  to amend the association’s governing documents or for any other
  391  matter is enforceable only as to amendments to the association’s
  392  governing documents that adversely affect the priority of the
  393  mortgagee’s lien or the mortgagee’s rights to foreclose its lien
  394  or that otherwise materially affect the rights and interests of
  395  the mortgagees.
  396         2. As to mortgages recorded before July 1, 2013, any
  397  existing provisions in the association’s governing documents
  398  requiring mortgagee consent are enforceable.
  399         3. In securing consent or joinder, the association is
  400  entitled to rely upon the public records to identify the holders
  401  of outstanding mortgages. The association may use the address
  402  provided in the original recorded mortgage document, unless
  403  there is a different address for the holder of the mortgage in a
  404  recorded assignment or modification of the mortgage, which
  405  recorded assignment or modification must reference the official
  406  records book and page on which the original mortgage was
  407  recorded. Once the association has identified the recorded
  408  mortgages of record, the association shall, in writing, request
  409  of each parcel owner whose parcel is encumbered by a mortgage of
  410  record any information that the owner has in his or her
  411  possession regarding the name and address of the person to whom
  412  mortgage payments are currently being made. Notice shall be sent
  413  to such person if the address provided in the original recorded
  414  mortgage document is different from the name and address of the
  415  mortgagee or assignee of the mortgage as shown by the public
  416  record. The association is deemed to have complied with this
  417  requirement by making the written request of the parcel owners
  418  required under this subparagraph. Any notices required to be
  419  sent to the mortgagees under this subparagraph shall be sent to
  420  all available addresses provided to the association.
  421         4. Any notice to the mortgagees required under subparagraph
  422  3. may be sent by a method that establishes proof of delivery,
  423  and any mortgagee who fails to respond within 60 days after the
  424  date of mailing is deemed to have consented to the amendment.
  425         5. For those amendments requiring mortgagee consent on or
  426  after July 1, 2013, in the event mortgagee consent is provided
  427  other than by properly recorded joinder, such consent shall be
  428  evidenced by affidavit of the association recorded in the public
  429  records of the county in which the declaration is recorded.
  430         6. Any amendment adopted without the required consent of a
  431  mortgagee is voidable only by a mortgagee who was entitled to
  432  notice and an opportunity to consent. An action to void an
  433  amendment is subject to the statute of limitations beginning 5
  434  years after the date of discovery as to the amendments described
  435  in subparagraph 1. and 5 years after the date of recordation of
  436  the certificate of amendment for all other amendments. This
  437  subparagraph applies to all mortgages, regardless of the date of
  438  recordation of the mortgage.
  439         (9)(a) ELECTIONS AND BOARD VACANCIES.—Elections of
  440  directors must be conducted in accordance with the procedures
  441  set forth in the governing documents of the association. All
  442  members of the association are eligible to serve on the board of
  443  directors, and a member may nominate himself or herself as a
  444  candidate for the board at a meeting where the election is to be
  445  held; provided, however, that or, if the election process allows
  446  candidates to nominate themselves voting by absentee ballot, in
  447  advance of the balloting, the association is not required to
  448  allow nominations at the meeting. An election is not required
  449  unless more candidates are nominated than vacancies exist.
  450  Except as otherwise provided in the governing documents, boards
  451  of directors must be elected by a plurality of the votes cast by
  452  eligible voters.
  453         Section 5. Subsection (1) of section 720.307, Florida
  454  Statutes, is amended, present subsections (2) through (4) are
  455  renumbered as subsections (4) through (6), respectively, and new
  456  subsections (2) and (3) are added to that section, to read:
  457         720.307 Transition of association control in a community.
  458  With respect to homeowners’ associations:
  459         (1) Members other than the developer are entitled to elect
  460  at least a majority of the members of the board of directors of
  461  the homeowners’ association when the earlier of the following
  462  events occurs:
  463         (a) Three months after 90 percent of the parcels in all
  464  phases of the community that will ultimately be operated by the
  465  homeowners’ association have been conveyed to members; or
  466         (b) Such other percentage of the parcels has been conveyed
  467  to members, or such other date or event has occurred, as is set
  468  forth in the governing documents in order to comply with the
  469  requirements of any governmentally chartered entity with regard
  470  to the mortgage financing of parcels;
  471         (c) Two years after the developer has ceased construction
  472  or ceased to offer parcels for sale in the ordinary course of
  473  business;
  474         (d) Upon the developer abandoning or deserting its
  475  responsibility to maintain and complete the advertised amenities
  476  or infrastructure. There is a rebuttable presumption that the
  477  developer has abandoned and deserted the property if the
  478  developer has not engaged in construction or sale of properties
  479  or has unpaid assessments or guaranteed amounts under s. 720.308
  480  for a period of more than 2 years;
  481         (e) Upon the developer filing a petition seeking protection
  482  under chapter 7 of the federal Bankruptcy Code;
  483         (f) Upon the developer losing title to the property through
  484  a foreclosure, or the transfer of a deed in lieu of foreclosure,
  485  unless the successor owner has accepted an assignment of
  486  developer rights and responsibilities; or
  487         (g) Upon a receiver for the developer being appointed by a
  488  circuit court and not being discharged within 30 days after such
  489  appointment, unless the court determines within 30 days after
  490  such appointment that transfer of control would be detrimental
  491  to the association or its members.
  493  For purposes of this section, the term “members other than the
  494  developer” shall not include builders, contractors, or others
  495  who purchase a parcel for the purpose of constructing
  496  improvements thereon for resale.
  497         (2) Members other than the developer are entitled to elect
  498  at least one member of the board of directors of the homeowners’
  499  association if 15 percent of the parcels in all phases of the
  500  community which will ultimately be operated by the association
  501  have been conveyed to members.
  502         (3) Members other than the developer are entitled to elect
  503  at least two members of the board of directors of the
  504  homeowners’ association if 50 percent of the parcels in all
  505  phases of the community which will ultimately be operated by the
  506  association have been conveyed to members.
  507         Section 6. Subsection (5) is added to section 720.3075,
  508  Florida Statutes, to read:
  509         720.3075 Prohibited clauses in association documents.—
  510         (5) The public policy described in subsection (1) prohibits
  511  the inclusion or enforcement of clauses that allow a developer
  512  the unilateral ability and right to make changes to the
  513  governing documents prior to transition of homeowners’
  514  association control in a community from the developer to the
  515  nondeveloper members, as set forth in s. 720.307, that
  516  unreasonably modify the original plan of development, prejudice
  517  the rights of parcel owners to use and enjoy the benefits of the
  518  common property without the consent of the parcels owners,
  519  radically change the community scheme, reduce the size of the
  520  common area, or limit the access of parcel owners to the common
  521  area.
  522         Section 7. Paragraph (b) of subsection (2) of section
  523  720.3085, Florida Statutes, is amended to read:
  524         720.3085 Payment for assessments; lien claims.—
  525         (2)
  526         (b) A parcel owner is jointly and severally liable with the
  527  previous parcel owner for all unpaid assessments that came due
  528  up to the time of transfer of title. This liability is without
  529  prejudice to any right the present parcel owner may have to
  530  recover any amounts paid by the present owner from the previous
  531  owner. For the purposes of this subsection, the term “previous
  532  owner” shall not include an association that acquires title to a
  533  delinquent property through foreclosure or by deed in lieu of
  534  foreclosure. The present parcel owner’s liability for unpaid
  535  assessments is limited to any unpaid assessments that accrued
  536  before the association acquired title to the delinquent property
  537  through foreclosure or by deed in lieu of foreclosure.
  538         Section 8. Section 720.315, Florida Statutes, is amended to
  539  read:
  540         720.315 Passage of special assessments.—
  541         (1) Before turnover, if the board of directors controlled
  542  by the developer proposes a budget which requires assessments
  543  against parcel owners which are 5 percent greater than the
  544  assessments for the preceding fiscal year, the budget must be
  545  approved by a majority of all the members other than the
  546  developer at a duly called special meeting of the membership at
  547  which a quorum is present. For purposes of this section, the
  548  term “members other than the developer” does not include
  549  builders, contractors, or other persons who purchase a parcel
  550  for the purpose of constructing improvements thereon for resale.
  551         (2) Before turnover, the board of directors controlled by
  552  the developer may not levy a special assessment unless a
  553  majority of the parcel owners other than the developer has
  554  approved the special assessment by a majority vote at a duly
  555  called special meeting of the membership at which a quorum is
  556  present.
  557         Section 9. This act shall take effect July 1, 2013.