Florida Senate - 2017 COMMITTEE AMENDMENT
Bill No. CS for SB 744
Ì845968fÎ845968
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/19/2017 .
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The Committee on Judiciary (Passidomo) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Section 633.2225, Florida Statutes is created to
6 read:
7 633.2225 Condominium and cooperative buildings without
8 sprinkler systems; notice requirements; enforcement.—
9 (1) The board of a condominium or cooperative association
10 that operates a building of three stories or more that has not
11 installed a sprinkler system in the common areas of the building
12 shall mark the building with a sign or symbol approved by the
13 State Fire Marshal in a manner sufficient to warn persons
14 conducting fire control and other emergency operations of the
15 lack of a sprinkler system in the common areas.
16 (2) The State Fire Marshal shall ensure that the dimensions
17 and placement of the sign or symbol do not diminish the
18 aesthetic value of the building and shall adopt rules necessary
19 to implement this section. Among other things, the rules must
20 address:
21 (a) The dimensions and color of such sign or symbol.
22 (b) The time within which the condominium or cooperative
23 buildings without sprinkler systems shall be marked as required
24 by this section.
25 (c) The location on each condominium or cooperative
26 building without a sprinkler system where such sign or symbol
27 must be posted.
28 (3) The State Fire Marshal, and local fire officials in
29 accordance with s. 633.118, shall enforce this section. An owner
30 who fails to comply with the requirements of this section is
31 subject to penalties as provided in s. 633.228.
32 Section 2. Subsections (12) and (13) of section 718.111,
33 Florida Statutes, are amended to read:
34 718.111 The association.—
35 (12) OFFICIAL RECORDS.—
36 (a) From the inception of the association, the association
37 shall maintain each of the following items, if applicable, which
38 constitutes the official records of the association:
39 1. A copy of the plans, permits, warranties, and other
40 items provided by the developer pursuant to s. 718.301(4).
41 2. A photocopy of the recorded declaration of condominium
42 of each condominium operated by the association and each
43 amendment to each declaration.
44 3. A photocopy of the recorded bylaws of the association
45 and each amendment to the bylaws.
46 4. A certified copy of the articles of incorporation of the
47 association, or other documents creating the association, and
48 each amendment thereto.
49 5. A copy of the current rules of the association.
50 6. A book or books that contain the minutes of all meetings
51 of the association, the board of administration, and the unit
52 owners, which minutes must be retained for at least 7 years.
53 7. A current roster of all unit owners and their mailing
54 addresses, unit identifications, and voting certifications, and,
55 if known, telephone numbers. The association shall also maintain
56 the electronic mailing addresses and facsimile numbers of unit
57 owners consenting to receive notice by electronic transmission.
58 The electronic mailing addresses and facsimile numbers are not
59 accessible to unit owners if consent to receive notice by
60 electronic transmission is not provided in accordance with
61 subparagraph (c)5. However, the association is not liable for an
62 inadvertent disclosure of the electronic mail address or
63 facsimile number for receiving electronic transmission of
64 notices.
65 8. All current insurance policies of the association and
66 condominiums operated by the association.
67 9. A current copy of any management agreement, lease, or
68 other contract to which the association is a party or under
69 which the association or the unit owners have an obligation or
70 responsibility.
71 10. Bills of sale or transfer for all property owned by the
72 association.
73 11. Accounting records for the association and separate
74 accounting records for each condominium that the association
75 operates. All accounting records must be maintained for at least
76 7 years. Any person who knowingly or intentionally defaces or
77 destroys such records, or who knowingly or intentionally fails
78 to create or maintain such records, with the intent of causing
79 harm to the association or one or more of its members, is
80 personally subject to a civil penalty pursuant to s.
81 718.501(1)(d). The accounting records must include, but are not
82 limited to:
83 a. Accurate, itemized, and detailed records of all receipts
84 and expenditures.
85 b. A current account and a monthly, bimonthly, or quarterly
86 statement of the account for each unit designating the name of
87 the unit owner, the due date and amount of each assessment, the
88 amount paid on the account, and the balance due.
89 c. All audits, reviews, accounting statements, and
90 financial reports of the association or condominium.
91 d. All contracts for work to be performed. Bids for work to
92 be performed are also considered official records and must be
93 maintained by the association for 1 year.
94 12. Ballots, sign-in sheets, voting proxies, and all other
95 papers and electronic records relating to voting by unit owners,
96 which must be maintained for 1 year from the date of the
97 election, vote, or meeting to which the document relates,
98 notwithstanding paragraph (b).
99 13. All rental records if the association is acting as
100 agent for the rental of condominium units.
101 14. A copy of the current question and answer sheet as
102 described in s. 718.504.
103 15. All other written records of the association not
104 specifically included in the foregoing which are related to the
105 operation of the association.
106 16. A copy of the inspection report as described in s.
107 718.301(4)(p).
108 (b) The official records of the association must be
109 maintained within the state for at least 7 years. The records of
110 the association shall be made available to a unit owner within
111 45 miles of the condominium property or within the county in
112 which the condominium property is located within 10 5 working
113 days after receipt of a written request by the board or its
114 designee. However, such distance requirement does not apply to
115 an association governing a timeshare condominium. This paragraph
116 may be complied with by having a copy of the official records of
117 the association available for inspection or copying on the
118 condominium property or association property, or the association
119 may offer the option of making the records available to a unit
120 owner electronically via the Internet or by allowing the records
121 to be viewed in electronic format on a computer screen and
122 printed upon request. The association is not responsible for the
123 use or misuse of the information provided to an association
124 member or his or her authorized representative pursuant to the
125 compliance requirements of this chapter unless the association
126 has an affirmative duty not to disclose such information
127 pursuant to this chapter.
128 (c) The official records of the association are open to
129 inspection by any association member or the authorized
130 representative of such member at all reasonable times. The right
131 to inspect the records includes the right to make or obtain
132 copies, at the reasonable expense, if any, of the member. The
133 association may adopt reasonable rules regarding the frequency,
134 time, location, notice, and manner of record inspections and
135 copying. The failure of an association to provide the records
136 within 10 working days after receipt of a written request
137 creates a rebuttable presumption that the association willfully
138 failed to comply with this paragraph. A unit owner who is denied
139 access to official records is entitled to the actual damages or
140 minimum damages for the association’s willful failure to comply.
141 Minimum damages are $50 per calendar day for up to 10 days,
142 beginning on the 11th working day after receipt of the written
143 request. The failure to permit inspection entitles any person
144 prevailing in an enforcement action to recover reasonable
145 attorney fees from the person in control of the records who,
146 directly or indirectly, knowingly denied access to the records.
147 Any person who knowingly or intentionally defaces or destroys
148 accounting records that are required by this chapter to be
149 maintained during the period for which such records are required
150 to be maintained, or who knowingly or intentionally fails to
151 create or maintain accounting records that are required to be
152 created or maintained, with the intent of causing harm to the
153 association or one or more of its members, is personally subject
154 to a civil penalty pursuant to s. 718.501(1)(d). The association
155 shall maintain an adequate number of copies of the declaration,
156 articles of incorporation, bylaws, and rules, and all amendments
157 to each of the foregoing, as well as the question and answer
158 sheet as described in s. 718.504 and year-end financial
159 information required under this section, on the condominium
160 property to ensure their availability to unit owners and
161 prospective purchasers, and may charge its actual costs for
162 preparing and furnishing these documents to those requesting the
163 documents. An association shall allow a member or his or her
164 authorized representative to use a portable device, including a
165 smartphone, tablet, portable scanner, or any other technology
166 capable of scanning or taking photographs, to make an electronic
167 copy of the official records in lieu of the association’s
168 providing the member or his or her authorized representative
169 with a copy of such records. The association may not charge a
170 member or his or her authorized representative for the use of a
171 portable device. Notwithstanding this paragraph, the following
172 records are not accessible to unit owners:
173 1. Any record protected by the lawyer-client privilege as
174 described in s. 90.502 and any record protected by the work
175 product privilege, including a record prepared by an association
176 attorney or prepared at the attorney’s express direction, which
177 reflects a mental impression, conclusion, litigation strategy,
178 or legal theory of the attorney or the association, and which
179 was prepared exclusively for civil or criminal litigation or for
180 adversarial administrative proceedings, or which was prepared in
181 anticipation of such litigation or proceedings until the
182 conclusion of the litigation or proceedings.
183 2. Information obtained by an association in connection
184 with the approval of the lease, sale, or other transfer of a
185 unit.
186 3. Personnel records of association or management company
187 employees, including, but not limited to, disciplinary, payroll,
188 health, and insurance records. For purposes of this
189 subparagraph, the term “personnel records” does not include
190 written employment agreements with an association employee or
191 management company, or budgetary or financial records that
192 indicate the compensation paid to an association employee.
193 4. Medical records of unit owners.
194 5. Social security numbers, driver license numbers, credit
195 card numbers, e-mail addresses, telephone numbers, facsimile
196 numbers, emergency contact information, addresses of a unit
197 owner other than as provided to fulfill the association’s notice
198 requirements, and other personal identifying information of any
199 person, excluding the person’s name, unit designation, mailing
200 address, property address, and any address, e-mail address, or
201 facsimile number provided to the association to fulfill the
202 association’s notice requirements. Notwithstanding the
203 restrictions in this subparagraph, an association may print and
204 distribute to parcel owners a directory containing the name,
205 parcel address, and all telephone numbers of each parcel owner.
206 However, an owner may exclude his or her telephone numbers from
207 the directory by so requesting in writing to the association. An
208 owner may consent in writing to the disclosure of other contact
209 information described in this subparagraph. The association is
210 not liable for the inadvertent disclosure of information that is
211 protected under this subparagraph if the information is included
212 in an official record of the association and is voluntarily
213 provided by an owner and not requested by the association.
214 6. Electronic security measures that are used by the
215 association to safeguard data, including passwords.
216 7. The software and operating system used by the
217 association which allow the manipulation of data, even if the
218 owner owns a copy of the same software used by the association.
219 The data is part of the official records of the association.
220 (d) The association shall prepare a question and answer
221 sheet as described in s. 718.504, and shall update it annually.
222 (e)1. The association or its authorized agent is not
223 required to provide a prospective purchaser or lienholder with
224 information about the condominium or the association other than
225 information or documents required by this chapter to be made
226 available or disclosed. The association or its authorized agent
227 may charge a reasonable fee to the prospective purchaser,
228 lienholder, or the current unit owner for providing good faith
229 responses to requests for information by or on behalf of a
230 prospective purchaser or lienholder, other than that required by
231 law, if the fee does not exceed $150 plus the reasonable cost of
232 photocopying and any attorney’s fees incurred by the association
233 in connection with the response.
234 2. An association and its authorized agent are not liable
235 for providing such information in good faith pursuant to a
236 written request if the person providing the information includes
237 a written statement in substantially the following form: “The
238 responses herein are made in good faith and to the best of my
239 ability as to their accuracy.”
240 (f) An outgoing board or committee member must relinquish
241 all official records and property of the association in his or
242 her possession or under his or her control to the incoming board
243 within 5 days after the election. The division shall impose a
244 civil penalty as set forth in s. 718.501(1)(d)6. against an
245 outgoing board or committee member who willfully and knowingly
246 fails to relinquish such records and property.
247 (13) FINANCIAL REPORTING.—Within 90 days after the end of
248 the fiscal year, or annually on a date provided in the bylaws,
249 the association shall prepare and complete, or contract for the
250 preparation and completion of, a financial report for the
251 preceding fiscal year. Within 21 days after the final financial
252 report is completed by the association or received from the
253 third party, but not later than 120 days after the end of the
254 fiscal year or other date as provided in the bylaws, the
255 association shall mail to each unit owner at the address last
256 furnished to the association by the unit owner, or hand deliver
257 to each unit owner, a copy of the financial report or a notice
258 that a copy of the financial report will be mailed or hand
259 delivered to the unit owner, without charge, upon receipt of a
260 written request from the unit owner. The division shall adopt
261 rules setting forth uniform accounting principles and standards
262 to be used by all associations and addressing the financial
263 reporting requirements for multicondominium associations. The
264 rules must include, but not be limited to, standards for
265 presenting a summary of association reserves, including a good
266 faith estimate disclosing the annual amount of reserve funds
267 that would be necessary for the association to fully fund
268 reserves for each reserve item based on the straight-line
269 accounting method. This disclosure is not applicable to reserves
270 funded via the pooling method. In adopting such rules, the
271 division shall consider the number of members and annual
272 revenues of an association. Financial reports shall be prepared
273 as follows:
274 (a) An association that meets the criteria of this
275 paragraph shall prepare a complete set of financial statements
276 in accordance with generally accepted accounting principles. The
277 financial statements must be based upon the association’s total
278 annual revenues, as follows:
279 1. An association with total annual revenues of $150,000 or
280 more, but less than $300,000, shall prepare compiled financial
281 statements.
282 2. An association with total annual revenues of at least
283 $300,000, but less than $500,000, shall prepare reviewed
284 financial statements.
285 3. An association with total annual revenues of $500,000 or
286 more shall prepare audited financial statements.
287 (b)1. An association with total annual revenues of less
288 than $150,000 shall prepare a report of cash receipts and
289 expenditures.
290 2. An association that operates fewer than 50 units,
291 regardless of the association’s annual revenues, shall prepare a
292 report of cash receipts and expenditures in lieu of financial
293 statements required by paragraph (a).
294 2.3. A report of cash receipts and disbursements must
295 disclose the amount of receipts by accounts and receipt
296 classifications and the amount of expenses by accounts and
297 expense classifications, including, but not limited to, the
298 following, as applicable: costs for security, professional and
299 management fees and expenses, taxes, costs for recreation
300 facilities, expenses for refuse collection and utility services,
301 expenses for lawn care, costs for building maintenance and
302 repair, insurance costs, administration and salary expenses, and
303 reserves accumulated and expended for capital expenditures,
304 deferred maintenance, and any other category for which the
305 association maintains reserves.
306 (c) An association may prepare, without a meeting of or
307 approval by the unit owners:
308 1. Compiled, reviewed, or audited financial statements, if
309 the association is required to prepare a report of cash receipts
310 and expenditures;
311 2. Reviewed or audited financial statements, if the
312 association is required to prepare compiled financial
313 statements; or
314 3. Audited financial statements if the association is
315 required to prepare reviewed financial statements.
316 (d) If approved by a majority of the voting interests
317 present at a properly called meeting of the association, an
318 association may prepare:
319 1. A report of cash receipts and expenditures in lieu of a
320 compiled, reviewed, or audited financial statement;
321 2. A report of cash receipts and expenditures or a compiled
322 financial statement in lieu of a reviewed or audited financial
323 statement; or
324 3. A report of cash receipts and expenditures, a compiled
325 financial statement, or a reviewed financial statement in lieu
326 of an audited financial statement.
327
328 Such meeting and approval must occur before the end of the
329 fiscal year and is effective only for the fiscal year in which
330 the vote is taken, except that the approval may also be
331 effective for the following fiscal year. If the developer has
332 not turned over control of the association, all unit owners,
333 including the developer, may vote on issues related to the
334 preparation of the association’s financial reports, from the
335 date of incorporation of the association through the end of the
336 second fiscal year after the fiscal year in which the
337 certificate of a surveyor and mapper is recorded pursuant to s.
338 718.104(4)(e) or an instrument that transfers title to a unit in
339 the condominium which is not accompanied by a recorded
340 assignment of developer rights in favor of the grantee of such
341 unit is recorded, whichever occurs first. Thereafter, all unit
342 owners except the developer may vote on such issues until
343 control is turned over to the association by the developer. Any
344 audit or review prepared under this section shall be paid for by
345 the developer if done before turnover of control of the
346 association. An association may not waive the financial
347 reporting requirements of this section for more than 3
348 consecutive years.
349 Section 3. Paragraphs (c) and (l) of subsection (2) of
350 section 718.112, Florida Statutes, are amended to read:
351 718.112 Bylaws.—
352 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
353 following and, if they do not do so, shall be deemed to include
354 the following:
355 (c) Board of administration meetings.—Meetings of the board
356 of administration at which a quorum of the members is present
357 are open to all unit owners. Members of the board of
358 administration may use e-mail as a means of communication but
359 may not cast a vote on an association matter via e-mail. A unit
360 owner may tape record or videotape the meetings. The right to
361 attend such meetings includes the right to speak at such
362 meetings with reference to all designated agenda items. The
363 division shall adopt reasonable rules governing the tape
364 recording and videotaping of the meeting. The association may
365 adopt written reasonable rules governing the frequency,
366 duration, and manner of unit owner statements.
367 1. Adequate notice of all board meetings, which must
368 specifically identify all agenda items, must be posted
369 conspicuously on the condominium property at least 48 continuous
370 hours before the meeting except in an emergency. If 20 percent
371 of the voting interests petition the board to address an item of
372 business, the board, within 60 days after receipt of the
373 petition, shall place the item on the agenda at its next regular
374 board meeting or at a special meeting called for that purpose.
375 An item not included on the notice may be taken up on an
376 emergency basis by a vote of at least a majority plus one of the
377 board members. Such emergency action must be noticed and
378 ratified at the next regular board meeting. Notice of any
379 meeting in which a regular or special assessment against unit
380 owners is to be considered must specifically state that
381 assessments will be considered and provide the estimated amount
382 and a description of the purposes for such assessments. However,
383 Written notice of a meeting at which a nonemergency special
384 assessment or an amendment to rules regarding unit use will be
385 considered must be mailed, delivered, or electronically
386 transmitted to the unit owners and posted conspicuously on the
387 condominium property at least 14 days before the meeting.
388 Evidence of compliance with this 14-day notice requirement must
389 be made by an affidavit executed by the person providing the
390 notice and filed with the official records of the association.
391 Upon notice to the unit owners, the board shall, by duly adopted
392 rule, designate a specific location on the condominium or
393 association property where all notices of board meetings must be
394 posted. If there is no condominium property or association
395 property where notices can be posted, notices shall be mailed,
396 delivered, or electronically transmitted to each unit owner at
397 least 14 days before the meeting. In lieu of or in addition to
398 the physical posting of the notice on the condominium property,
399 the association may, by reasonable rule, adopt a procedure for
400 conspicuously posting and repeatedly broadcasting the notice and
401 the agenda on a closed-circuit cable television system serving
402 the condominium association. However, if broadcast notice is
403 used in lieu of a notice physically posted on condominium
404 property, the notice and agenda must be broadcast at least four
405 times every broadcast hour of each day that a posted notice is
406 otherwise required under this section. If broadcast notice is
407 provided, the notice and agenda must be broadcast in a manner
408 and for a sufficient continuous length of time so as to allow an
409 average reader to observe the notice and read and comprehend the
410 entire content of the notice and the agenda. In addition to any
411 of the authorized means of providing notice of a meeting of the
412 board, the association may, by rule, adopt a procedure for
413 conspicuously posting the meeting notice and the agenda on a
414 website serving the condominium association for at least the
415 minimum period of time for which a notice of a meeting is also
416 required to be physically posted on the condominium property.
417 Any rule adopted shall, in addition to other matters, include a
418 requirement that the association send an electronic notice
419 providing a hypertext link to the website where the notice is
420 posted. Notice of any meeting in which regular or special
421 assessments against unit owners are to be considered must
422 specifically state that assessments will be considered and
423 provide the nature, estimated cost, and description of the
424 purposes for such assessments.
425 2. Meetings of a committee to take final action on behalf
426 of the board or make recommendations to the board regarding the
427 association budget are subject to this paragraph. Meetings of a
428 committee that does not take final action on behalf of the board
429 or make recommendations to the board regarding the association
430 budget are subject to this section, unless those meetings are
431 exempted from this section by the bylaws of the association.
432 3. Notwithstanding any other law, the requirement that
433 board meetings and committee meetings be open to the unit owners
434 does not apply to:
435 a. Meetings between the board or a committee and the
436 association’s attorney, with respect to proposed or pending
437 litigation, if the meeting is held for the purpose of seeking or
438 rendering legal advice; or
439 b. Board meetings held for the purpose of discussing
440 personnel matters.
441 (l) Certificate of compliance.—A provision that a
442 certificate of compliance from a licensed electrical contractor
443 or electrician may be accepted by the association’s board as
444 evidence of compliance of the condominium units with the
445 applicable fire and life safety code must be included.
446 Notwithstanding chapter 633, s. 509.215, s. 553.895(1), or of
447 any other code, statute, ordinance, administrative rule, or
448 regulation, or any interpretation of the foregoing, an
449 association, residential condominium, or unit owner is not
450 obligated to retrofit the common elements, association property,
451 or units of a residential condominium with a fire sprinkler
452 system or other engineered lifesafety system in a building that
453 is 75 feet or less in height. There is no obligation to retrofit
454 for a building greater than 75 feet in height, calculated from
455 the lowest level of fire department vehicle access to the floor
456 of the highest occupiable story has been certified for occupancy
457 by the applicable governmental entity if the unit owners have
458 voted to forego such retrofitting by the affirmative vote of
459 two-thirds a majority of all voting interests in the affected
460 condominium. There is no requirement that owners in condominiums
461 of 75 feet or less conduct an opt-out vote and such condominiums
462 are exempt from fire sprinkler or other engineered lifesafety
463 retrofitting. The preceding sentence is intended to clarify
464 existing law. The local authority having jurisdiction may not
465 require completion of retrofitting with a fire sprinkler system
466 or other engineered lifesafety system before January 1, 2022
467 2020. By December 31, 2018 2016, an a residential condominium
468 association that operates a residential condominium that is not
469 in compliance with the requirements for a fire sprinkler system
470 or other engineered lifesafety system and has not voted to
471 forego retrofitting of such a system must initiate an
472 application for a building permit for the required installation
473 with the local government having jurisdiction demonstrating that
474 the association will become compliant by December 31, 2021 2019.
475 1. A vote to forego required retrofitting may be obtained
476 by limited proxy or by a ballot personally cast at a duly called
477 membership meeting, or by execution of a written consent by the
478 member, or by electronic voting, and is effective upon recording
479 a certificate executed by an officer or agent of the association
480 attesting to such vote in the public records of the county where
481 the condominium is located. When an opt-out vote is to be
482 conducted at a meeting, the association shall mail or hand
483 deliver to each unit owner, at each physical and electronic
484 address of record, written notice at least 14 days before the
485 membership meeting in which the vote to forego retrofitting of
486 the required fire sprinkler system or other engineered
487 lifesafety system is to take place. Within 30 days after the
488 association’s opt-out vote, notice of the results of the opt-out
489 vote must be mailed or hand delivered to all unit owners at each
490 physical and electronic address of record. Evidence of
491 compliance with this notice requirement must be made by
492 affidavit executed by the person providing the notice and filed
493 among the official records of the association. Failure to
494 provide timely notice to unit owners does not invalidate an
495 otherwise valid opt-out vote if notice of the results is
496 provided to the owners. After notice is provided to each owner,
497 a copy must be provided by the current owner to a new owner
498 before closing and by a unit owner to a renter before signing a
499 lease.
500 2. If there has been a previous vote to forego
501 retrofitting, a vote to require retrofitting may be obtained at
502 a special meeting of the unit owners called by a petition of at
503 least 10 percent of the voting interests or by a majority of the
504 board of directors. The vote to require retrofitting requires a
505 two-thirds vote of the total voting interest. Such a vote may
506 only be called once every 3 years. Notice shall be provided as
507 required for any regularly called meeting of the unit owners,
508 and must state the purpose of the meeting. Electronic
509 transmission may not be used to provide notice of a meeting
510 called in whole or in part for this purpose.
511 3. As part of the information collected annually from
512 condominiums, the division shall require condominium
513 associations to report the membership vote and recording of a
514 certificate under this subsection and, if retrofitting has been
515 undertaken, the per-unit cost of such work. The division shall
516 annually report to the Division of State Fire Marshal of the
517 Department of Financial Services the number of condominiums that
518 have elected to forego retrofitting. Compliance with this
519 administrative reporting requirement does not affect the
520 validity of an opt-out vote.
521 4. Notwithstanding s. 553.509, a residential association
522 may not be obligated to, and may forego the retrofitting of, any
523 improvements required by s. 553.509(2) upon an affirmative vote
524 of two-thirds a majority of the voting interests in the affected
525 condominium.
526 5. The provisions of this paragraph do not apply to
527 timeshare condominium associations, which shall be governed by
528 s. 721.24.
529 Section 4. Subsection (2) of section 718.113, Florida
530 Statutes, is amended to read:
531 718.113 Maintenance; limitation upon improvement; display
532 of flag; hurricane shutters and protection; display of religious
533 decorations.—
534 (2)(a) Except as otherwise provided in this section, there
535 shall be no material alteration or substantial additions to the
536 common elements or to real property which is association
537 property, except in a manner provided in the declaration as
538 originally recorded or as amended under the procedures provided
539 therein. If the declaration as originally recorded or as amended
540 under the procedures provided therein does not specify the
541 procedure for approval of material alterations or substantial
542 additions, 75 percent of the total voting interests of the
543 association must approve the alterations or additions before the
544 material alterations or substantial additions are commenced.
545 This paragraph is intended to clarify existing law and applies
546 to associations existing on the effective date of this act
547 October 1, 2008.
548 (b) There shall not be any material alteration of, or
549 substantial addition to, the common elements of any condominium
550 operated by a multicondominium association unless approved in
551 the manner provided in the declaration of the affected
552 condominium or condominiums as originally recorded or as amended
553 under the procedures provided therein. If a declaration as
554 originally recorded or as amended under the procedures provided
555 therein does not specify a procedure for approving such an
556 alteration or addition, the approval of 75 percent of the total
557 voting interests of each affected condominium is required before
558 the material alterations or substantial additions are commenced.
559 This subsection does not prohibit a provision in any
560 declaration, articles of incorporation, or bylaws as originally
561 recorded or as amended under the procedures provided therein
562 requiring the approval of unit owners in any condominium
563 operated by the same association or requiring board approval
564 before a material alteration or substantial addition to the
565 common elements is permitted. This paragraph is intended to
566 clarify existing law and applies to associations existing on the
567 effective date of this act.
568 (c) There shall not be any material alteration or
569 substantial addition made to association real property operated
570 by a multicondominium association, except as provided in the
571 declaration, articles of incorporation, or bylaws as originally
572 recorded or as amended under the procedures provided therein. If
573 the declaration, articles of incorporation, or bylaws as
574 originally recorded or as amended under the procedures provided
575 therein do not specify the procedure for approving an alteration
576 or addition to association real property, the approval of 75
577 percent of the total voting interests of the association is
578 required before the material alterations or substantial
579 additions are commenced. This paragraph is intended to clarify
580 existing law and applies to associations existing on the
581 effective date of this act.
582 Section 5. Subsections (1) and (3) of section 718.117,
583 Florida Statutes, are amended, and subsection (21) is added to
584 that section, to read:
585 718.117 Termination of condominium.—
586 (1) LEGISLATIVE FINDINGS.—The Legislature finds that:
587 (a) Condominiums are created as authorized by statute and
588 are subject to covenants that encumber the land and restrict the
589 use of the use of real property.
590 (b) In some circumstances, the continued enforcement of
591 those covenants that may create economic waste, areas of
592 disrepair that threaten the safety and welfare of the public, or
593 cause obsolescence of the a condominium property for its
594 intended use and thereby lower property tax values, and the
595 Legislature further finds that it is the public policy of this
596 state to provide by statute a method to preserve the value of
597 the property interests and the rights of alienation thereof that
598 owners have in the condominium property before and after
599 termination.
600 (c) The Legislature further finds that It is contrary to
601 the public policy of this state to require the continued
602 operation of a condominium when to do so constitutes economic
603 waste or when the ability to do so is made impossible by law or
604 regulation.
605 (d) It is in the best interest of the state to provide for
606 termination of the covenants of a declaration of condominium in
607 certain circumstances, in order to:
608 1. Ensure the continued maintenance, management, and repair
609 of stormwater management systems, conservation areas, and
610 conservation easements.
611 2. Avoid transferring the expense of maintaining
612 infrastructure serving the condominium property, including, but
613 not limited to, stormwater systems and conservation areas, to
614 the general tax bases of the state and local governments.
615 3. Prevent covenants from impairing the continued
616 productive use of the property.
617 4. Protect state residents from health and safety hazards
618 created by derelict, damaged, obsolete, or abandoned condominium
619 properties.
620 5. Provide for fair treatment and just compensation for
621 individuals, preserve property values, and preserve the local
622 property tax base.
623 6. Preserve the state’s long history of protecting
624 homestead property and homestead property rights by ensuring
625 that such protection is extended to homestead property owners in
626 the context of a termination of the covenants of a declaration
627 of condominium. This section applies to all condominiums in this
628 state in existence on or after July 1, 2007.
629 (3) OPTIONAL TERMINATION.—Except as provided in subsection
630 (2) or unless the declaration provides for a lower percentage,
631 The condominium form of ownership may be terminated for all or a
632 portion of the condominium property pursuant to a plan of
633 termination meeting the requirements of this section and
634 approved by the division. Before a residential association
635 submits a plan to the division, the plan must be approved by at
636 least 80 percent of the total voting interests of the
637 condominium. However, if 5 10 percent or more of the total
638 voting interests of the condominium have rejected the plan of
639 termination by negative vote or by providing written objections,
640 the plan of termination may not proceed.
641 (a) The termination of the condominium form of ownership is
642 subject to the following conditions:
643 1. The total voting interests of the condominium must
644 include all voting interests for the purpose of considering a
645 plan of termination. A voting interest of the condominium may
646 not be suspended for any reason when voting on termination
647 pursuant to this subsection.
648 2. If 5 10 percent or more of the total voting interests of
649 the condominium reject a plan of termination, a subsequent plan
650 of termination pursuant to this subsection may not be considered
651 for 24 18 months after the date of the rejection.
652 (b) This subsection does not apply to any condominium
653 created pursuant to part VI of this chapter until 10 5 years
654 after the recording of the declaration of condominium, unless
655 there is no objection to the plan of termination.
656 (c) For purposes of this subsection, the term “bulk owner”
657 means the single holder of such voting interests or an owner
658 together with a related entity or entities that would be
659 considered an insider, as defined in s. 726.102, holding such
660 voting interests. If the condominium association is a
661 residential association proposed for termination pursuant to
662 this section and, at the time of recording the plan of
663 termination, at least 80 percent of the total voting interests
664 are owned by a bulk owner, the plan of termination is subject to
665 the following conditions and limitations:
666 1. If the former condominium units are offered for lease to
667 the public after the termination, each unit owner in occupancy
668 immediately before the date of recording of the plan of
669 termination may lease his or her former unit and remain in
670 possession of the unit for 12 months after the effective date of
671 the termination on the same terms as similar unit types within
672 the property are being offered to the public. In order to obtain
673 a lease and exercise the right to retain exclusive possession of
674 the unit owner’s former unit, the unit owner must make a written
675 request to the termination trustee to rent the former unit
676 within 90 days after the date the plan of termination is
677 recorded. Any unit owner who fails to timely make such written
678 request and sign a lease within 15 days after being presented
679 with a lease is deemed to have waived his or her right to retain
680 possession of his or her former unit and shall be required to
681 vacate the former unit upon the effective date of the
682 termination, unless otherwise provided in the plan of
683 termination.
684 2. Any former unit owner whose unit was granted homestead
685 exemption status by the applicable county property appraiser as
686 of the date of the recording of the plan of termination shall be
687 paid a relocation payment in an amount equal to 1 percent of the
688 termination proceeds allocated to the owner’s former unit. Any
689 relocation payment payable under this subparagraph shall be paid
690 by the single entity or related entities owning at least 80
691 percent of the total voting interests. Such relocation payment
692 shall be in addition to the termination proceeds for such
693 owner’s former unit and shall be paid no later than 10 days
694 after the former unit owner vacates his or her former unit.
695 3. For their respective units, all unit owners other than
696 the bulk owner must be compensated at least 100 percent of the
697 fair market value of their units. The fair market value shall be
698 determined as of a date that is no earlier than 90 days before
699 the date that the plan of termination is recorded and shall be
700 determined by an independent appraiser selected by the
701 termination trustee. For a person an original purchaser from the
702 developer who rejects the plan of termination and whose unit was
703 granted homestead exemption status by the applicable county
704 property appraiser, or was an owner-occupied operating business,
705 as of the date that the plan of termination is recorded and who
706 is current in payment of both assessments and other monetary
707 obligations to the association and any mortgage encumbering the
708 unit as of the date the plan of termination is recorded, the
709 fair market value for the unit owner rejecting the plan shall be
710 at least the original purchase price paid for the unit. For
711 purposes of this subparagraph, the term “fair market value”
712 means the price of a unit that a seller is willing to accept and
713 a buyer is willing to pay on the open market in an arms-length
714 transaction based on similar units sold in other condominiums,
715 including units sold in bulk purchases but excluding units sold
716 at wholesale or distressed prices. The purchase price of units
717 acquired in bulk following a bankruptcy or foreclosure shall not
718 be considered for purposes of determining fair market value.
719 4. The plan of termination must provide for payment of a
720 first mortgage encumbering a unit to the extent necessary to
721 satisfy the lien, but the payment may not exceed the unit’s
722 share of the proceeds of termination under the plan. If the unit
723 owner is current in payment of both assessments and other
724 monetary obligations to the association and any mortgage
725 encumbering the unit as of the date the plan of termination is
726 recorded, the receipt by the holder of the unit’s share of the
727 proceeds of termination under the plan or the outstanding
728 balance of the mortgage, whichever is less, shall be deemed to
729 have satisfied the first mortgage in full.
730 5. Before a plan of termination is presented to the unit
731 owners for consideration pursuant to this paragraph, the plan
732 must include the following written disclosures in a sworn
733 statement:
734 a. The identity of any person or entity that owns or
735 controls 25 50 percent or more of the units in the condominium
736 and, if the units are owned by an artificial entity or entities,
737 a disclosure of the natural person or persons who, directly or
738 indirectly, manage or control the entity or entities and the
739 natural person or persons who, directly or indirectly, own or
740 control 10 20 percent or more of the artificial entity or
741 entities that constitute the bulk owner.
742 b. The units acquired by any bulk owner, the date each unit
743 was acquired, and the total amount of compensation paid to each
744 prior unit owner by the bulk owner, regardless of whether
745 attributed to the purchase price of the unit.
746 c. The relationship of any board member to the bulk owner
747 or any person or entity affiliated with the bulk owner subject
748 to disclosure pursuant to this subparagraph.
749 d. The factual circumstances that show that the plan
750 complies with the requirements of this section and that the plan
751 supports the expressed public policies of this section.
752 (d) If the members of the board of administration are
753 elected by the bulk owner, unit owners other than the bulk owner
754 may elect at least one-third of the members of the board of
755 administration before the approval of any plan of termination.
756 (e) Upon approval of a plan of termination by the unit
757 owners in a residential condominium, the plan shall be filed
758 with the division. The division shall review the plan to
759 determine its sufficiency under the Condominium Act and must,
760 within 45 days after receipt of the initial filing, notify the
761 association by mail of any procedural deficiencies or that the
762 filing is accepted. If the notice is not provided to the
763 association within 45 days after receipt of the filing, the
764 filing is presumed to be accepted. If the division determines
765 that the conditions required by this section have been met and
766 the plan complies with the procedural requirements of this
767 section, the division shall authorize the termination and the
768 termination may proceed pursuant to this section.
769 (f) The provisions of subsection (2) do not apply to
770 optional termination pursuant to this subsection.
771 (21) APPLICABILITY.—This section applies to all
772 condominiums in this state in existence on or after July 1,
773 2007.
774 Section 6. The amendments made by Section 5 of this act are
775 intended to clarify existing law, are remedial in nature and
776 intended to address the rights and liabilities of the affected
777 parties, and apply to all condominiums created under the
778 Condominium Act.
779 Section 7. For the 2017-2018 fiscal year, the sums of
780 $85,006 in recurring funds and $4,046 in nonrecurring funds from
781 the Division of Florida Condominiums, Timeshares, and Mobile
782 Homes Trust Fund are appropriated to the Department of Business
783 and Professional Regulation, and one full-time equivalent
784 position with associated salary rate of 56,791 is authorized,
785 for the purpose of implementing Section 5 of this act.
786 Section 8. Paragraphs (a) and (b) of subsection (2) and
787 paragraphs (b) and (c) of subsection (4) of section 719.104,
788 Florida Statutes, are amended to read:
789 719.104 Cooperatives; access to units; records; financial
790 reports; assessments; purchase of leases.—
791 (2) OFFICIAL RECORDS.—
792 (a) From the inception of the association, the association
793 shall maintain a copy of each of the following, where
794 applicable, which shall constitute the official records of the
795 association:
796 1. The plans, permits, warranties, and other items provided
797 by the developer pursuant to s. 719.301(4).
798 2. A photocopy of the cooperative documents.
799 3. A copy of the current rules of the association.
800 4. A book or books containing the minutes of all meetings
801 of the association, of the board of directors, and of the unit
802 owners, which minutes shall be retained for a period of not less
803 than 7 years.
804 5. A current roster of all unit owners and their mailing
805 addresses, unit identifications, voting certifications, and, if
806 known, telephone numbers. The association shall also maintain
807 the electronic mailing addresses and the numbers designated by
808 unit owners for receiving notice sent by electronic transmission
809 of those unit owners consenting to receive notice by electronic
810 transmission. The electronic mailing addresses and numbers
811 provided by unit owners to receive notice by electronic
812 transmission shall be removed from association records when
813 consent to receive notice by electronic transmission is revoked.
814 However, the association is not liable for an erroneous
815 disclosure of the electronic mail address or the number for
816 receiving electronic transmission of notices.
817 6. All current insurance policies of the association.
818 7. A current copy of any management agreement, lease, or
819 other contract to which the association is a party or under
820 which the association or the unit owners have an obligation or
821 responsibility.
822 8. Bills of sale or transfer for all property owned by the
823 association.
824 9. Accounting records for the association and separate
825 accounting records for each unit it operates, according to good
826 accounting practices. All accounting records shall be maintained
827 for a period of not less than 7 years. The accounting records
828 shall include, but not be limited to:
829 a. Accurate, itemized, and detailed records of all receipts
830 and expenditures.
831 b. A current account and a monthly, bimonthly, or quarterly
832 statement of the account for each unit designating the name of
833 the unit owner, the due date and amount of each assessment, the
834 amount paid upon the account, and the balance due.
835 c. All audits, reviews, accounting statements, and
836 financial reports of the association.
837 d. All contracts for work to be performed. Bids for work to
838 be performed shall also be considered official records and shall
839 be maintained for a period of 1 year.
840 10. Ballots, sign-in sheets, voting proxies, and all other
841 papers and electronic records relating to voting by unit owners,
842 which shall be maintained for a period of 1 year after the date
843 of the election, vote, or meeting to which the document relates.
844 11. All rental records where the association is acting as
845 agent for the rental of units.
846 12. A copy of the current question and answer sheet as
847 described in s. 719.504.
848 13. All other written records of the association not
849 specifically included in the foregoing which are related to the
850 operation of the association.
851 (b) The official records of the association must be
852 maintained within the state for at least 7 years. The records of
853 the association shall be made available to a unit owner within
854 45 miles of the cooperative property or within the county in
855 which the cooperative property is located within 10 5 working
856 days after receipt of written request by the board or its
857 designee. This paragraph may be complied with by having a copy
858 of the official records of the association available for
859 inspection or copying on the cooperative property or the
860 association may offer the option of making the records available
861 to a unit owner electronically via the Internet or by allowing
862 the records to be viewed in an electronic format on a computer
863 screen and printed upon request. The association is not
864 responsible for the use or misuse of the information provided to
865 an association member or his or her authorized representative
866 pursuant to the compliance requirements of this chapter unless
867 the association has an affirmative duty not to disclose such
868 information pursuant to this chapter.
869 (4) FINANCIAL REPORT.—
870 (b) Except as provided in paragraph (c), an association
871 whose total annual revenues meet the criteria of this paragraph
872 shall prepare or cause to be prepared a complete set of
873 financial statements according to the generally accepted
874 accounting principles adopted by the Board of Accountancy. The
875 financial statements shall be as follows:
876 1. An association with total annual revenues between
877 $150,000 and $299,999 shall prepare a compiled financial
878 statement.
879 2. An association with total annual revenues between
880 $300,000 and $499,999 shall prepare a reviewed financial
881 statement.
882 3. An association with total annual revenues of $500,000 or
883 more shall prepare an audited financial statement.
884 4. The requirement to have the financial statement
885 compiled, reviewed, or audited does not apply to an association
886 if a majority of the voting interests of the association present
887 at a duly called meeting of the association have voted to waive
888 this requirement for the fiscal year. In an association in which
889 turnover of control by the developer has not occurred, the
890 developer may vote to waive the audit requirement for the first
891 2 years of operation of the association, after which time waiver
892 of an applicable audit requirement shall be by a majority of
893 voting interests other than the developer. The meeting shall be
894 held prior to the end of the fiscal year, and the waiver shall
895 be effective for only one fiscal year. An association may not
896 waive the financial reporting requirements of this section for
897 more than 3 consecutive years.
898 (c)1. An association with total annual revenues of less
899 than $150,000 shall prepare a report of cash receipts and
900 expenditures.
901 2. An association in a community of fewer than 50 units,
902 regardless of the association’s annual revenues, shall prepare a
903 report of cash receipts and expenditures in lieu of the
904 financial statements required by paragraph (b), unless the
905 declaration or other recorded governing documents provide
906 otherwise.
907 2.3. A report of cash receipts and expenditures must
908 disclose the amount of receipts by accounts and receipt
909 classifications and the amount of expenses by accounts and
910 expense classifications, including the following, as applicable:
911 costs for security, professional, and management fees and
912 expenses; taxes; costs for recreation facilities; expenses for
913 refuse collection and utility services; expenses for lawn care;
914 costs for building maintenance and repair; insurance costs;
915 administration and salary expenses; and reserves, if maintained
916 by the association.
917 Section 9. Subsection (5) of section 719.1055, Florida
918 Statutes, is amended to read:
919 719.1055 Amendment of cooperative documents; alteration and
920 acquisition of property.—
921 (5) The bylaws must include a provision whereby a
922 certificate of compliance from a licensed electrical contractor
923 or electrician may be accepted by the association’s board as
924 evidence of compliance of the cooperative units with the
925 applicable fire and life safety code.
926 (a)1. Notwithstanding chapter 633, s. 509.215, s.
927 553.895(1), or any other code, statute, ordinance,
928 administrative rule, or regulation, or any interpretation of the
929 foregoing, an association a cooperative or unit owner is not
930 obligated to retrofit the common elements or units of a
931 residential cooperative with a fire sprinkler system or other
932 engineered lifesafety system in a building that is 75 feet or
933 less in height. There is no obligation to retrofit for a
934 building greater than 75 feet in height, calculated from the
935 lowest level of fire department vehicle access to the floor of
936 the highest occupiable story has been certified for occupancy by
937 the applicable governmental entity if the unit owners have voted
938 to forego such retrofitting by the affirmative vote of two
939 thirds a majority of all voting interests in the affected
940 cooperative. There is no requirement that owners in cooperatives
941 of 75 feet or less conduct an opt-out vote and such cooperatives
942 are exempt from fire sprinkler or other engineered life safety
943 retrofitting. The preceding sentence is intended to clarify
944 existing law. The local authority having jurisdiction may not
945 require completion of retrofitting with a fire sprinkler system
946 or other engineered life safety system before January 1, 2022
947 the end of 2019. By December 31, 2018 2016, a cooperative that
948 is not in compliance with the requirements for a fire sprinkler
949 system or other engineered lifesafety system and has not voted
950 to forego retrofitting of such a system must initiate an
951 application for a building permit for the required installation
952 with the local government having jurisdiction demonstrating that
953 the cooperative will become compliant by December 31, 2021 2019.
954 2. A vote to forego required retrofitting may be obtained
955 by limited proxy or by a ballot personally cast at a duly called
956 membership meeting, or by execution of a written consent by the
957 member, or by electronic voting, and is effective upon recording
958 a certificate executed by an officer or agent of the association
959 attesting to such vote in the public records of the county where
960 the cooperative is located. When the opt-out vote is to be
961 conducted at a meeting, the cooperative shall mail or hand
962 deliver to each unit owner, at each physical and electronic
963 address of record, written notice at least 14 days before the
964 membership meeting in which the vote to forego retrofitting of
965 the required fire sprinkler system or other engineered
966 lifesafety system is to take place. Within 30 days after the
967 cooperative’s opt-out vote, notice of the results of the opt-out
968 vote must be mailed or hand delivered to all unit owners at each
969 physical and electronic address of record. Evidence of
970 compliance with this notice requirement must be made by
971 affidavit executed by the person providing the notice and filed
972 among the official records of the cooperative. Failure to
973 provide timely notice to unit owners does not invalidate an
974 otherwise valid opt-out vote if notice of the results is
975 provided to the owners. After notice is provided to each owner,
976 a copy must be provided by the current owner to a new owner
977 before closing and by a unit owner to a renter before signing a
978 lease.
979 (b) If there has been a previous vote to forego
980 retrofitting, a vote to require retrofitting may be obtained at
981 a special meeting of the unit owners called by a petition of
982 least 10 percent of the voting interests or by a majority of the
983 board of directors. The vote to require retrofitting requires a
984 two-thirds vote of the total voting interest. Such vote may only
985 be called once every 3 years. Notice must be provided as
986 required for any regularly called meeting of the unit owners,
987 and the notice must state the purpose of the meeting. Electronic
988 transmission may not be used to provide notice of a meeting
989 called in whole or in part for this purpose.
990 (c) As part of the information collected annually from
991 cooperatives, the division shall require associations to report
992 the membership vote and recording of a certificate under this
993 subsection and, if retrofitting has been undertaken, the per
994 unit cost of such work. The division shall annually report to
995 the Division of State Fire Marshal of the Department of
996 Financial Services the number of cooperatives that have elected
997 to forego retrofitting. Compliance with this administrative
998 reporting requirement does not affect the validity of an opt-out
999 vote.
1000 Section 10. Paragraphs (a) and (c) of subsection (1) of
1001 section 719.106, Florida Statutes, are amended, and paragraph
1002 (m) is added to that subsection, to read:
1003 719.106 Bylaws; cooperative ownership.—
1004 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
1005 documents shall provide for the following, and if they do not,
1006 they shall be deemed to include the following:
1007 (a) Administration.—
1008 1. The form of administration of the association shall be
1009 described, indicating the titles of the officers and board of
1010 administration and specifying the powers, duties, manner of
1011 selection and removal, and compensation, if any, of officers and
1012 board members. In the absence of such a provision, the board of
1013 administration shall be composed of five members, except in the
1014 case of cooperatives having five or fewer units, in which case
1015 in not-for-profit corporations, the board shall consist of not
1016 fewer than three members. In a residential cooperative
1017 association of more than 10 units, co-owners of a unit may not
1018 serve as members of the board of directors at the same time
1019 unless the co-owners own more than one unit or unless there are
1020 not enough eligible candidates to fill the vacancies on the
1021 board at the time of the vacancy. In the absence of provisions
1022 to the contrary, the board of administration shall have a
1023 president, a secretary, and a treasurer, who shall perform the
1024 duties of those offices customarily performed by officers of
1025 corporations. Unless prohibited in the bylaws, the board of
1026 administration may appoint other officers and grant them those
1027 duties it deems appropriate. Unless otherwise provided in the
1028 bylaws, the officers shall serve without compensation and at the
1029 pleasure of the board. Unless otherwise provided in the bylaws,
1030 the members of the board shall serve without compensation.
1031 2. A person who has been suspended or removed by the
1032 division under this chapter, or who is delinquent in the payment
1033 of any monetary obligation due to the association, is not
1034 eligible to be a candidate for board membership and may not be
1035 listed on the ballot. A director or officer charged by
1036 information or indictment with a felony theft or embezzlement
1037 offense involving the association’s funds or property is
1038 suspended from office. The board shall fill the vacancy
1039 according to general law until the end of the period of the
1040 suspension or the end of the director’s term of office,
1041 whichever occurs first. However, if the charges are resolved
1042 without a finding of guilt or without acceptance of a plea of
1043 guilty or nolo contendere, the director or officer shall be
1044 reinstated for any remainder of his or her term of office. A
1045 member who has such criminal charges pending may not be
1046 appointed or elected to a position as a director or officer. A
1047 person who has been convicted of any felony in this state or in
1048 any United States District Court, or who has been convicted of
1049 any offense in another jurisdiction which would be considered a
1050 felony if committed in this state, is not eligible for board
1051 membership unless such felon’s civil rights have been restored
1052 for at least 5 years as of the date such person seeks election
1053 to the board. The validity of an action by the board is not
1054 affected if it is later determined that a board member is
1055 ineligible for board membership due to having been convicted of
1056 a felony.
1057 3. When a unit owner files a written inquiry by certified
1058 mail with the board of administration, the board shall respond
1059 in writing to the unit owner within 30 days of receipt of the
1060 inquiry. The board’s response shall either give a substantive
1061 response to the inquirer, notify the inquirer that a legal
1062 opinion has been requested, or notify the inquirer that advice
1063 has been requested from the division. If the board requests
1064 advice from the division, the board shall, within 10 days of its
1065 receipt of the advice, provide in writing a substantive response
1066 to the inquirer. If a legal opinion is requested, the board
1067 shall, within 60 days after the receipt of the inquiry, provide
1068 in writing a substantive response to the inquirer. The failure
1069 to provide a substantive response to the inquirer as provided
1070 herein precludes the board from recovering attorney’s fees and
1071 costs in any subsequent litigation, administrative proceeding,
1072 or arbitration arising out of the inquiry. The association may,
1073 through its board of administration, adopt reasonable rules and
1074 regulations regarding the frequency and manner of responding to
1075 the unit owners’ inquiries, one of which may be that the
1076 association is obligated to respond to only one written inquiry
1077 per unit in any given 30-day period. In such case, any
1078 additional inquiry or inquiries must be responded to in the
1079 subsequent 30-day period, or periods, as applicable.
1080 (c) Board of administration meetings.—Members of the board
1081 of administration may use e-mail as a means of communication but
1082 may not cast a vote on an association matter via e-mail.
1083 Meetings of the board of administration at which a quorum of the
1084 members is present shall be open to all unit owners. Any unit
1085 owner may tape record or videotape meetings of the board of
1086 administration. The right to attend such meetings includes the
1087 right to speak at such meetings with reference to all designated
1088 agenda items. The division shall adopt reasonable rules
1089 governing the tape recording and videotaping of the meeting. The
1090 association may adopt reasonable written rules governing the
1091 frequency, duration, and manner of unit owner statements.
1092 Adequate notice of all meetings shall be posted in a conspicuous
1093 place upon the cooperative property at least 48 continuous hours
1094 preceding the meeting, except in an emergency. Any item not
1095 included on the notice may be taken up on an emergency basis by
1096 at least a majority plus one of the members of the board. Such
1097 emergency action shall be noticed and ratified at the next
1098 regular meeting of the board. Notice of any meeting in which
1099 regular or special assessments against unit owners are to be
1100 considered must specifically state that assessments will be
1101 considered and provide the estimated amount and description of
1102 the purposes for such assessments. However, Written notice of
1103 any meeting at which nonemergency special assessments, or at
1104 which amendment to rules regarding unit use, will be considered
1105 shall be mailed, delivered, or electronically transmitted to the
1106 unit owners and posted conspicuously on the cooperative property
1107 not less than 14 days before the meeting. Evidence of compliance
1108 with this 14-day notice shall be made by an affidavit executed
1109 by the person providing the notice and filed among the official
1110 records of the association. Upon notice to the unit owners, the
1111 board shall by duly adopted rule designate a specific location
1112 on the cooperative property upon which all notices of board
1113 meetings shall be posted. In lieu of or in addition to the
1114 physical posting of notice of any meeting of the board of
1115 administration on the cooperative property, the association may,
1116 by reasonable rule, adopt a procedure for conspicuously posting
1117 and repeatedly broadcasting the notice and the agenda on a
1118 closed-circuit cable television system serving the cooperative
1119 association. However, if broadcast notice is used in lieu of a
1120 notice posted physically on the cooperative property, the notice
1121 and agenda must be broadcast at least four times every broadcast
1122 hour of each day that a posted notice is otherwise required
1123 under this section. When broadcast notice is provided, the
1124 notice and agenda must be broadcast in a manner and for a
1125 sufficient continuous length of time so as to allow an average
1126 reader to observe the notice and read and comprehend the entire
1127 content of the notice and the agenda. In addition to any of the
1128 authorized means of providing notice of a meeting of the board,
1129 the association may, by rule, adopt a procedure for
1130 conspicuously posting the meeting notice and the agenda on a
1131 website serving the cooperative association for at least the
1132 minimum period of time for which a notice of a meeting is also
1133 required to be physically posted on the cooperative property.
1134 Any rule adopted shall, in addition to other matters, include a
1135 requirement that the association send an electronic notice
1136 providing a hypertext link to the website where the notice is
1137 posted. Notice of any meeting in which regular assessments
1138 against unit owners are to be considered for any reason shall
1139 specifically contain a statement that
1140 assessments will be considered and the nature of any such
1141 assessments. Meetings of a committee to take final action on
1142 behalf of the board or to make recommendations to the board
1143 regarding the association budget are subject to the provisions
1144 of this paragraph. Meetings of a committee that does not take
1145 final action on behalf of the board or make recommendations to
1146 the board regarding the association budget are subject to the
1147 provisions of this section, unless those meetings are exempted
1148 from this section by the bylaws of the association.
1149 Notwithstanding any other law to the contrary, the requirement
1150 that board meetings and committee meetings be open to the unit
1151 owners does not apply to board or committee meetings held for
1152 the purpose of discussing personnel matters or meetings between
1153 the board or a committee and the association’s attorney, with
1154 respect to proposed or pending litigation, if the meeting is
1155 held for the purpose of seeking or rendering legal advice.
1156 (m) Director or officer delinquencies.—A director or
1157 officer more than 90 days delinquent in the payment of any
1158 monetary obligation due the association shall be deemed to have
1159 abandoned the office, creating a vacancy in the office to be
1160 filled according to law.
1161 Section 11. Paragraph (b) of subsection (1) of section
1162 719.107, Florida Statutes, is amended to read:
1163 719.107 Common expenses; assessment.—
1164 (1)
1165 (b) If so provided in the bylaws, the cost of
1166 communications services as defined in chapter 202, information
1167 services, or Internet services a master antenna television
1168 system or duly franchised cable television service obtained
1169 pursuant to a bulk contract shall be deemed a common expense,
1170 and if not obtained pursuant to a bulk contract, such cost shall
1171 be considered common expense if it is designated as such in a
1172 written contract between the board of administration and the
1173 company providing the communications services as defined in
1174 chapter 202, information services, or Internet services master
1175 television antenna system or the cable television service. The
1176 contract shall be for a term of not less than 2 years.
1177 1. Any contract made by the board after April 2, 1992, for
1178 a community antenna system or duly franchised cable television
1179 service, communications services as defined in chapter 202,
1180 information services, or Internet services may be canceled by a
1181 majority of the voting interests present at the next regular or
1182 special meeting of the association. Any member may make a motion
1183 to cancel the contract, but if no motion is made or if such
1184 motion fails to obtain the required majority at the next regular
1185 or special meeting, whichever is sooner, following the making of
1186 the contract, then such contract shall be deemed ratified for
1187 the term therein expressed.
1188 2. Any such contract shall provide, and shall be deemed to
1189 provide if not expressly set forth, that any hearing impaired or
1190 legally blind unit owner who does not occupy the unit with a
1191 nonhearing impaired or sighted person may discontinue the
1192 service without incurring disconnect fees, penalties, or
1193 subsequent service charges, and as to such units, the owners
1194 shall not be required to pay any common expenses charge related
1195 to such service. If less than all members of an association
1196 share the expenses of cable television, the expense shall be
1197 shared equally by all participating unit owners. The association
1198 may use the provisions of s. 719.108 to enforce payment of the
1199 shares of such costs by the unit owners receiving cable
1200 television.
1201 Section 12. Paragraphs (a) and (c) of subsection (2) and
1202 subsections (6) and (7) of section 720.303, Florida Statutes,
1203 are amended to read:
1204 720.303 Association powers and duties; meetings of board;
1205 official records; budgets; budget meetings; financial reporting;
1206 association funds; recalls.—
1207 (2) BOARD MEETINGS.—
1208 (a) Members of the board of administration may use e-mail
1209 as a means of communication, but may not cast a vote on an
1210 association matter via e-mail. A meeting of the board of
1211 directors of an association occurs whenever a quorum of the
1212 board gathers to conduct association business. Meetings of the
1213 board must be open to all members, except for meetings between
1214 the board and its attorney with respect to proposed or pending
1215 litigation where the contents of the discussion would otherwise
1216 be governed by the attorney-client privilege. A meeting of the
1217 board must be held at a location that is accessible to a
1218 physically handicapped person if requested by a physically
1219 handicapped person who has a right to attend the meeting. The
1220 provisions of this subsection shall also apply to the meetings
1221 of any committee or other similar body when a final decision
1222 will be made regarding the expenditure of association funds and
1223 to meetings of any body vested with the power to approve or
1224 disapprove architectural decisions with respect to a specific
1225 parcel of residential property owned by a member of the
1226 community.
1227 (c) The bylaws shall provide the following for giving
1228 notice to parcel owners and members of all board meetings and,
1229 if they do not do so, shall be deemed to include provide the
1230 following:
1231 1. Notices of all board meetings must be posted in a
1232 conspicuous place in the community at least 48 hours in advance
1233 of a meeting, except in an emergency. In the alternative, if
1234 notice is not posted in a conspicuous place in the community,
1235 notice of each board meeting must be mailed or delivered to each
1236 member at least 7 days before the meeting, except in an
1237 emergency. Notwithstanding this general notice requirement, for
1238 communities with more than 100 members, the association bylaws
1239 may provide for a reasonable alternative to posting or mailing
1240 of notice for each board meeting, including publication of
1241 notice, provision of a schedule of board meetings, or the
1242 conspicuous posting and repeated broadcasting of the notice on a
1243 closed-circuit cable television system serving the homeowners’
1244 association. However, if broadcast notice is used in lieu of a
1245 notice posted physically in the community, the notice must be
1246 broadcast at least four times every broadcast hour of each day
1247 that a posted notice is otherwise required. When broadcast
1248 notice is provided, the notice and agenda must be broadcast in a
1249 manner and for a sufficient continuous length of time so as to
1250 allow an average reader to observe the notice and read and
1251 comprehend the entire content of the notice and the agenda. The
1252 association may provide notice by electronic transmission in a
1253 manner authorized by law for meetings of the board of directors,
1254 committee meetings requiring notice under this section, and
1255 annual and special meetings of the members to any member who has
1256 provided a facsimile number or e-mail address to the association
1257 to be used for such purposes; however, a member must consent in
1258 writing to receiving notice by electronic transmission.
1259 2. An assessment may not be levied at a board meeting
1260 unless the notice of the meeting includes a statement that
1261 assessments will be considered and the nature of the
1262 assessments. Written notice of any meeting at which special
1263 assessments will be considered or at which amendments to rules
1264 regarding parcel use will be considered must be mailed,
1265 delivered, or electronically transmitted to the members and
1266 parcel owners and posted conspicuously on the property or
1267 broadcast on closed-circuit cable television not less than 14
1268 days before the meeting.
1269 3. Directors may not vote by proxy or by secret ballot at
1270 board meetings, except that secret ballots may be used in the
1271 election of officers. This subsection also applies to the
1272 meetings of any committee or other similar body, when a final
1273 decision will be made regarding the expenditure of association
1274 funds, and to any body vested with the power to approve or
1275 disapprove architectural decisions with respect to a specific
1276 parcel of residential property owned by a member of the
1277 community.
1278 (6) BUDGETS; BUDGET MEETINGS.—
1279 (a) The association shall prepare an annual budget that
1280 sets out the annual operating expenses. The budget must reflect
1281 the estimated revenues and expenses for that year and the
1282 estimated surplus or deficit as of the end of the current year.
1283 The budget must set out separately all fees or charges paid for
1284 by the association for recreational amenities, whether owned by
1285 the association, the developer, or another person. The
1286 association shall provide each member with a copy of the annual
1287 budget or a written notice that a copy of the budget is
1288 available upon request at no charge to the member. The copy must
1289 be provided to the member within the time limits set forth in
1290 subsection (5).
1291 (b) In addition to annual operating expenses, for all
1292 associations incorporated after July 1, 2017, and any
1293 association incorporated before that date which, by a majority
1294 vote of the members of the association present, in person or by
1295 proxy, at a meeting of the association at which a quorum is
1296 present, affirmatively votes to be bound by the provisions of
1297 this subsection as amended effective July 1, 2017, the budget
1298 must may include a disclosure of reserves reserve accounts for
1299 capital expenditures and deferred maintenance for which are
1300 obligations of the association under is responsible. If reserve
1301 accounts are not established pursuant to paragraph (d), funding
1302 of such reserves is limited to the extent that the governing
1303 documents for any item that has a deferred maintenance expense
1304 greater than $100,000. The amount to be reserved must be
1305 computed using a formula based upon the estimated deferred
1306 maintenance expense of each reserve item divided by the
1307 estimated remaining useful life of that item. However, and
1308 notwithstanding the amount disclosed as being the total required
1309 reserve amount, each parcel which is obligated to pay reserves
1310 to the association each year shall be assessed for reserves only
1311 the amount determined by dividing the total annual reserve
1312 amount disclosed in the budget by the total number of parcels
1313 that will ultimately be operated by the association. Therefore,
1314 the assessments actually collected will be less than the full
1315 amount of required reserves as disclosed in the proposed annual
1316 budget until all parcels are obligated to pay assessments for
1317 reserves. The association may adjust the deferred maintenance
1318 reserve limit increases in assessments annually to take into
1319 account any changes in estimates or extension of the useful life
1320 of a reserve item, the anticipated cost of the deferred
1321 maintenance and any changes in the number of parcels that will
1322 ultimately be operated by the association. This subsection does
1323 not apply to an adopted budget for which members of an
1324 association have determined, by a majority vote of the members
1325 of the association present, in person or by proxy, and voting at
1326 a meeting, including reserves. If the budget of the association,
1327 at which a quorum is present, to provide no reserves or less
1328 reserves than required by this subsection includes reserve
1329 accounts established pursuant to paragraph (d), such reserves
1330 shall be determined, maintained, and waived in the manner
1331 provided in this subsection. Once an association provides for
1332 reserve accounts pursuant to paragraph (d), the association
1333 shall thereafter determine, maintain, and waive reserves in
1334 compliance with this subsection. This section does not preclude
1335 an association from ceasing to add amounts to the termination of
1336 a reserve account established pursuant to this paragraph upon
1337 approval of a majority of the total voting interests present in
1338 person or by proxy and voting at a meeting of the association at
1339 which a quorum is present of the association. Upon such
1340 approval, no reserves shall be included in the terminating
1341 reserve account shall be removed from the budget for that year.
1342 Amounts in the reserve account may be used only for deferred
1343 maintenance and for no other purpose. Only parcels with
1344 completed improvements as evidenced by certificates of occupancy
1345 for such improvements are obligated to pay assessments for
1346 reserves. A developer that subsidizes the association’s budget
1347 pursuant to s. 720.308(1) is not obligated to include reserve
1348 contributions in any such subsidy payments. If a developer
1349 establishes a guarantee under s. 720.308(2) or otherwise
1350 subsidizes the association budget, the developer is not
1351 obligated to include reserve contributions in any such guarantee
1352 or subsidy payments.
1353 (c)1. The developer may vote the voting interests allocated
1354 to its parcels with completed improvements, as evidenced by
1355 certificates of occupancy for such improvements, to waive the
1356 reserves or reduce the funding of reserves If the budget of the
1357 association does not provide for reserve accounts pursuant to
1358 paragraph (d) and the association is responsible for the repair
1359 and maintenance of capital improvements that may result in a
1360 special assessment if reserves are not provided, each financial
1361 report for the preceding fiscal year required by subsection (7)
1362 must contain the following statement in conspicuous type:
1363 THE BUDGET OF THE ASSOCIATION DOES NOT PROVIDE FOR RESERVE
1364 ACCOUNTS FOR CAPITAL EXPENDITURES AND DEFERRED MAINTENANCE THAT
1365 MAY RESULT IN SPECIAL ASSESSMENTS. OWNERS MAY ELECT TO PROVIDE
1366 FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6), FLORIDA
1367 STATUTES, UPON OBTAINING THE APPROVAL OF A MAJORITY OF THE TOTAL
1368 VOTING INTERESTS OF THE ASSOCIATION BY VOTE OF THE MEMBERS AT A
1369 MEETING OR BY WRITTEN CONSENT.
1370 2. If the budget of the association does provide for
1371 funding accounts for deferred expenditures, including, but not
1372 limited to, funds for capital expenditures and deferred
1373 maintenance, but such accounts are not created or established
1374 pursuant to paragraph (d), each financial report for the
1375 preceding fiscal year required under subsection (7) must also
1376 contain the following statement in conspicuous type:
1377 THE BUDGET OF THE ASSOCIATION PROVIDES FOR LIMITED VOLUNTARY
1378 DEFERRED EXPENDITURE ACCOUNTS, INCLUDING CAPITAL EXPENDITURES
1379 AND DEFERRED MAINTENANCE, SUBJECT TO LIMITS ON FUNDING CONTAINED
1380 IN OUR GOVERNING DOCUMENTS. BECAUSE THE OWNERS HAVE NOT ELECTED
1381 TO PROVIDE FOR RESERVE ACCOUNTS PURSUANT TO SECTION 720.303(6),
1382 FLORIDA STATUTES, THESE FUNDS ARE NOT SUBJECT TO THE
1383 RESTRICTIONS ON USE OF SUCH FUNDS SET FORTH IN THAT STATUTE, NOR
1384 ARE RESERVES CALCULATED IN ACCORDANCE WITH THAT STATUTE.
1385 (d) An association is deemed to have provided for reserve
1386 accounts if reserve accounts have been initially established by
1387 the developer or if the membership of the association
1388 affirmatively elects to provide for reserves. If reserve
1389 accounts are established by the developer, the budget must
1390 designate the components for which the reserve accounts may be
1391 used. If reserve accounts are not initially provided by the
1392 developer, the membership of the association may elect to do so
1393 upon the affirmative approval of a majority of the total voting
1394 interests of the association. Such approval may be obtained by
1395 vote of the members at a duly called meeting of the membership
1396 or by the written consent of a majority of the total voting
1397 interests of the association. The approval action of the
1398 membership must state that reserve accounts shall be provided
1399 for in the budget and must designate the components for which
1400 the reserve accounts are to be established. Upon approval by the
1401 membership, the board of directors shall include the required
1402 reserve accounts in the budget in the next fiscal year following
1403 the approval and each year thereafter. Once established as
1404 provided in this subsection, the reserve accounts must be funded
1405 or maintained or have their funding waived in the manner
1406 provided in paragraph (f).
1407 (e) The amount to be reserved in any account established
1408 shall be computed by means of a formula that is based upon
1409 estimated remaining useful life and estimated replacement cost
1410 or deferred maintenance expense of each reserve item. The
1411 association may adjust replacement reserve assessments annually
1412 to take into account any changes in estimates of cost or useful
1413 life of a reserve item.
1414 (f) After one or more reserve accounts are established, the
1415 membership of the association, upon a majority vote at a meeting
1416 at which a quorum is present, may provide for no reserves or
1417 less reserves than required by this section. If a meeting of the
1418 parcel unit owners has been called to determine whether to waive
1419 or reduce the funding of reserves and such result is not
1420 achieved or a quorum is not present, the reserves as included in
1421 the budget go into effect. After the turnover, the developer may
1422 vote its voting interest to waive or reduce the funding of
1423 reserves. Any vote taken pursuant to this subsection to waive or
1424 reduce reserves is applicable only to one budget year.
1425 (d) Reserve funds and any interest accruing thereon shall
1426 remain in the reserve account or accounts and may be used only
1427 for authorized reserve expenditures and may not be used for any
1428 other purpose.
1429 (e) The only voting interests eligible to vote on questions
1430 that involve waiving or reducing the funding of reserves are the
1431 voting interests of the parcels subject to assessment to fund
1432 the reserves in question. Any vote taken pursuant to this
1433 subsection to waive or reduce reserves is applicable only to one
1434 budget year. Proxy questions relating to waiving or reducing the
1435 funding of reserves must contain the following statement in
1436 capitalized, bold letters in a font size larger than any other
1437 used on the face of the proxy ballot: WAIVING OF RESERVES, IN
1438 WHOLE OR IN PART, MAY RESULT IN PARCEL OWNER LIABILITY FOR
1439 PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE
1440 ITEMS.
1441 (f) Funding formulas for reserves required by this section
1442 shall be based on a pooled analysis of two or more of the items
1443 for which reserves are required to be accrued pursuant to this
1444 subsection. The projected annual cash inflows may include
1445 estimated earnings from investment of principal. The reserve
1446 funding formula shall have constant funding each year. However,
1447 each parcel which is obligated to pay reserves to the
1448 association each year shall be assessed for reserves only the
1449 amount determined by dividing the total annual reserve amount
1450 disclosed in the budget by the total number of parcels that will
1451 ultimately be operated by the association. The assessments
1452 actually collected shall be less than the full amount of
1453 required reserves as disclosed in the proposed annual budget
1454 until all parcels are obligated to pay assessments for reserves.
1455 (g) As alternative to the pooled analysis method described
1456 in paragraph (f) and, if approved by a majority vote of the
1457 members present, in person or by proxy, at a meeting of the
1458 members of the association at which a quorum is present, the
1459 funding formulas for reserves required authorized by this
1460 section may must be based on a separate analysis of each of the
1461 required assets or a pooled analysis of two or more of the
1462 required assets.
1463 1. If the association maintains separate reserve accounts
1464 for each of the required assets, the amount of the contribution
1465 to each reserve account is the sum of the following two
1466 calculations:
1467 1.a. The total amount necessary, if any, to bring a
1468 negative component balance to zero.
1469 2.b. The total estimated deferred maintenance expense or
1470 estimated replacement cost of the reserve component less the
1471 estimated balance of the reserve component as of the beginning
1472 of the period the budget will be in effect. The remainder, if
1473 greater than zero, shall be divided by the estimated remaining
1474 useful life of the component.
1475
1476 The formula may be adjusted each year for changes in estimates
1477 and deferred maintenance performed during the year and may
1478 include factors such as inflation and earnings on invested
1479 funds. An association may convert its funding formulas from a
1480 component method to a pooled method, as described in paragraph
1481 (f), at any time if approved by a majority vote of the members
1482 present, in person or by proxy, at a meeting at which a quorum
1483 is present.
1484 2. If the association maintains a pooled account of two or
1485 more of the required reserve assets, the amount of the
1486 contribution to the pooled reserve account as disclosed on the
1487 proposed budget may not be less than that required to ensure
1488 that the balance on hand at the beginning of the period the
1489 budget will go into effect plus the projected annual cash
1490 inflows over the remaining estimated useful life of all of the
1491 assets that make up the reserve pool are equal to or greater
1492 than the projected annual cash outflows over the remaining
1493 estimated useful lives of all the assets that make up the
1494 reserve pool, based on the current reserve analysis. The
1495 projected annual cash inflows may include estimated earnings
1496 from investment of principal and accounts receivable minus the
1497 allowance for doubtful accounts. The reserve funding formula may
1498 not include any type of balloon payments.
1499 (h)1. Reserve funds and Any interest accruing thereon shall
1500 remain in the reserve account or accounts and shall be used only
1501 for authorized reserve expenditures unless their use for other
1502 purposes is approved in advance by a majority vote at a meeting
1503 at which a proposed annual budget of an association will be
1504 considered by the board or a quorum is present. Prior to
1505 turnover of control of an association by a developer to parcel
1506 owners shall be open to all parcel owners, the developer
1507 controlled association shall not vote to use reserves for
1508 purposes other than those for which they were intended without
1509 the approval of a majority of all nondeveloper voting interests
1510 voting in person or by limited proxy at a duly called meeting of
1511 the association.
1512 2.a. If a board adopts in any fiscal year an annual budget
1513 which requires assessments against parcel owners which exceed
1514 115 percent of assessments for the preceding fiscal year, the
1515 board shall conduct a special meeting of the parcel owners to
1516 consider a substitute budget if the board receives, within 21
1517 days after adoption of the annual budget, a written request for
1518 a special meeting from at least 10 percent of all voting
1519 interests. The special meeting shall be conducted within 60 days
1520 after adoption of the annual budget. At least 14 days before
1521 such special meeting, the board shall hand deliver to each
1522 parcel owner, or mail to each parcel owner at the address last
1523 furnished to the association, a notice of the meeting. An
1524 officer or manager of the association, or other person providing
1525 notice of such meeting shall execute an affidavit evidencing
1526 compliance with this notice requirement, and such affidavit
1527 shall be filed among the official records of the association.
1528 Parcel owners may consider and adopt a substitute budget at the
1529 special meeting. A substitute budget is adopted if approved by a
1530 majority of all voting interests unless the governing documents
1531 require adoption by a greater percentage of voting interests. If
1532 there is not a quorum at the special meeting or a substitute
1533 budget is not adopted, the annual budget previously adopted by
1534 the board shall take effect as scheduled.
1535 b. Any determination of whether assessments exceed 115
1536 percent of assessments for the prior fiscal year shall exclude
1537 any provision for reasonable reserves for repair or deferred
1538 maintenance of items which are the obligations of the
1539 association under the governing documents, anticipated expenses
1540 of the association which the board does not expect to be
1541 incurred on a regular or annual basis, or assessments for
1542 betterments to the common areas, association property, or other
1543 items which are the obligation of the association under the
1544 governing documents.
1545 (i) The provisions of paragraphs (b)-(h) do not apply to
1546 mandatory reserve accounts required to be established and
1547 maintained by an association at the direction of a county or
1548 municipal government, water or drainage management district,
1549 community development district, or other political subdivision
1550 that has the authority to approve and control subdivision
1551 infrastructure which is entrusted to the care of an association
1552 on the condition that the association establish and maintain one
1553 or more mandatory reserve accounts for the deferred maintenance
1554 of the infrastructure in accordance with the requirements of
1555 that entrusting authority.
1556 (j) Reserve funds must be held in a separate bank account
1557 established for such funds.
1558 (7) FINANCIAL REPORTING.—Within 90 days after the end of
1559 the fiscal year, or annually on the date provided in the bylaws,
1560 the association shall prepare and complete, or contract with a
1561 third party for the preparation and completion of, a financial
1562 report for the preceding fiscal year. Within 21 days after the
1563 final financial report is completed by the association or
1564 received from the third party, but not later than 120 days after
1565 the end of the fiscal year or other date as provided in the
1566 bylaws, the association shall, within the time limits set forth
1567 in subsection (5), provide each member with a copy of the annual
1568 financial report or a written notice that a copy of the
1569 financial report is available upon request at no charge to the
1570 member. Financial reports shall be prepared as follows:
1571 (a) An association that meets the criteria of this
1572 paragraph shall prepare or cause to be prepared a complete set
1573 of financial statements in accordance with generally accepted
1574 accounting principles as adopted by the Board of Accountancy.
1575 The financial statements shall be based upon the association’s
1576 total annual revenues, as follows:
1577 1. An association with total annual revenues of $150,000 or
1578 more, but less than $300,000, shall prepare compiled financial
1579 statements.
1580 2. An association with total annual revenues of at least
1581 $300,000, but less than $500,000, shall prepare reviewed
1582 financial statements.
1583 3. An association with total annual revenues of $500,000 or
1584 more shall prepare audited financial statements.
1585 (b)1. An association with total annual revenues of less
1586 than $150,000 shall prepare a report of cash receipts and
1587 expenditures.
1588 2. An association in a community of fewer than 50 parcels,
1589 regardless of the association’s annual revenues, may prepare a
1590 report of cash receipts and expenditures in lieu of financial
1591 statements required by paragraph (a) unless the governing
1592 documents provide otherwise.
1593 2.3. A report of cash receipts and disbursement must
1594 disclose the amount of receipts by accounts and receipt
1595 classifications and the amount of expenses by accounts and
1596 expense classifications, including, but not limited to, the
1597 following, as applicable: costs for security, professional, and
1598 management fees and expenses; taxes; costs for recreation
1599 facilities; expenses for refuse collection and utility services;
1600 expenses for lawn care; costs for building maintenance and
1601 repair; insurance costs; administration and salary expenses; and
1602 reserves if maintained by the association.
1603 (c) If 20 percent of the parcel owners petition the board
1604 for a level of financial reporting higher than that required by
1605 this section, the association shall duly notice and hold a
1606 meeting of members within 30 days of receipt of the petition for
1607 the purpose of voting on raising the level of reporting for that
1608 fiscal year. Upon approval of a majority of the total voting
1609 interests of the parcel owners, the association shall prepare or
1610 cause to be prepared, shall amend the budget or adopt a special
1611 assessment to pay for the financial report regardless of any
1612 provision to the contrary in the governing documents, and shall
1613 provide within 90 days of the meeting or the end of the fiscal
1614 year, whichever occurs later:
1615 1. Compiled, reviewed, or audited financial statements, if
1616 the association is otherwise required to prepare a report of
1617 cash receipts and expenditures;
1618 2. Reviewed or audited financial statements, if the
1619 association is otherwise required to prepare compiled financial
1620 statements; or
1621 3. Audited financial statements if the association is
1622 otherwise required to prepare reviewed financial statements.
1623 (d) If approved by a majority of the voting interests
1624 present at a properly called meeting of the association, an
1625 association may prepare or cause to be prepared:
1626 1. A report of cash receipts and expenditures in lieu of a
1627 compiled, reviewed, or audited financial statement;
1628 2. A report of cash receipts and expenditures or a compiled
1629 financial statement in lieu of a reviewed or audited financial
1630 statement; or
1631 3. A report of cash receipts and expenditures, a compiled
1632 financial statement, or a reviewed financial statement in lieu
1633 of an audited financial statement.
1634 Section 13. Paragraph (a) of subsection (9) of section
1635 720.306, Florida Statutes, is amended to read:
1636 720.306 Meetings of members; voting and election
1637 procedures; amendments.—
1638 (9) ELECTIONS AND BOARD VACANCIES.—
1639 (a) Elections of directors must be conducted in accordance
1640 with the procedures set forth in the governing documents of the
1641 association. Except as provided in paragraph (b), all members of
1642 the association are eligible to serve on the board of directors,
1643 and a member may nominate himself or herself as a candidate for
1644 the board at a meeting where the election is to be held;
1645 provided, however, that if the election process allows
1646 candidates to be nominated in advance of the meeting, the
1647 association is not required to allow nominations at the meeting.
1648 An election is not required unless more candidates are nominated
1649 than vacancies exist. If an election is not required because
1650 there are either an equal number or fewer qualified candidates
1651 than vacancies exist, and if nominations from the floor are not
1652 required pursuant to this section or the bylaws, write-in
1653 nominations are not permitted and such candidates shall commence
1654 service on the board of directors, regardless of whether a
1655 quorum is attained at the annual meeting. Except as otherwise
1656 provided in the governing documents, boards of directors must be
1657 elected by a plurality of the votes cast by eligible voters. Any
1658 challenge to the election process must be commenced within 60
1659 days after the election results are announced.
1660 Section 14. Paragraph (b) of subsection (3) of section
1661 720.3085, Florida Statutes, is amended to read:
1662 720.3085 Payment for assessments; lien claims.—
1663 (3) Assessments and installments on assessments that are
1664 not paid when due bear interest from the due date until paid at
1665 the rate provided in the declaration of covenants or the bylaws
1666 of the association, which rate may not exceed the rate allowed
1667 by law. If no rate is provided in the declaration or bylaws,
1668 interest accrues at the rate of 18 percent per year.
1669 (b) Any payment received by an association and accepted
1670 shall be applied first to any interest accrued, then to any
1671 administrative late fee, then to any costs and reasonable
1672 attorney fees incurred in collection, and then to the delinquent
1673 assessment. This paragraph applies notwithstanding any
1674 restrictive endorsement, designation, or instruction placed on
1675 or accompanying a payment. A late fee is not subject to the
1676 provisions of chapter 687 and is not a fine. The foregoing is
1677 applicable notwithstanding s. 673.3111, any purported accord and
1678 satisfaction, or any restrictive endorsement, designation, or
1679 instruction placed on or accompanying a payment. The preceding
1680 sentence is intended to clarify existing law.
1681 Section 15. Paragraph (a) of subsection (1) of section
1682 720.401, Florida Statutes, is amended to read:
1683 720.401 Prospective purchasers subject to association
1684 membership requirement; disclosure required; covenants;
1685 assessments; contract cancellation.—
1686 (1)(a) A prospective parcel owner in a community must be
1687 presented a disclosure summary before executing the contract for
1688 sale. The disclosure summary must be in a form substantially
1689 similar to the following form:
1690 DISCLOSURE SUMMARY
1691 FOR
1692 (NAME OF COMMUNITY)
1693 1. AS A PURCHASER OF PROPERTY IN THIS COMMUNITY, YOU WILL
1694 BE OBLIGATED TO BE A MEMBER OF A HOMEOWNERS’ ASSOCIATION.
1695 2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE
1696 COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS
1697 COMMUNITY.
1698 3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE
1699 ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF
1700 APPLICABLE, THE CURRENT AMOUNT IS $.... PER ..... YOU WILL ALSO
1701 BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE
1702 ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE.
1703 IF APPLICABLE, THE CURRENT AMOUNT IS $.... PER .....
1704 4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE
1705 RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL
1706 ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE.
1707 5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS
1708 LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A
1709 LIEN ON YOUR PROPERTY.
1710 6. THERE MAY BE AN OBLIGATION TO PAY RENT OR LAND USE FEES
1711 FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN
1712 OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS’ ASSOCIATION. IF
1713 APPLICABLE, THE CURRENT AMOUNT IS $.... PER .....
1714 7. THE BUDGET OF THE ASSOCIATION MAY NOT INCLUDE RESERVE
1715 FUNDS FOR DEFERRED MAINTENANCE SUFFICIENT TO COVER THE FULL COST
1716 OF DEFERRED MAINTENANCE OF COMMON AREAS. YOU SHOULD REVIEW THE
1717 BUDGET TO DETERMINE THE LEVEL OF RESERVE FUNDING, IF ANY.
1718 8.7. THE DEVELOPER MAY HAVE THE RIGHT TO AMEND THE
1719 RESTRICTIVE COVENANTS WITHOUT THE APPROVAL OF THE ASSOCIATION
1720 MEMBERSHIP OR THE APPROVAL OF THE PARCEL OWNERS.
1721 9.8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE
1722 ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU
1723 SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION GOVERNING
1724 DOCUMENTS BEFORE PURCHASING PROPERTY.
1725 10.9. THESE DOCUMENTS ARE EITHER MATTERS OF PUBLIC RECORD
1726 AND CAN BE OBTAINED FROM THE RECORD OFFICE IN THE COUNTY WHERE
1727 THE PROPERTY IS LOCATED, OR ARE NOT RECORDED AND CAN BE OBTAINED
1728 FROM THE DEVELOPER.
1729
1730 DATE:
1731 PURCHASER:
1732 PURCHASER:
1733
1734 The disclosure must be supplied by the developer, or by the
1735 parcel owner if the sale is by an owner that is not the
1736 developer. Any contract or agreement for sale shall refer to and
1737 incorporate the disclosure summary and shall include, in
1738 prominent language, a statement that the potential buyer should
1739 not execute the contract or agreement until they have received
1740 and read the disclosure summary required by this section.
1741 Section 16. This act shall take effect July 1, 2017.
1742
1743 ================= T I T L E A M E N D M E N T ================
1744 And the title is amended as follows:
1745 Delete everything before the enacting clause
1746 and insert:
1747 A bill to be entitled
1748 An act relating to community associations; creating s.
1749 633.2225, F.S.; requiring certain condominium or
1750 cooperative associations to post certain signs or
1751 symbols on buildings; requiring the State Fire Marshal
1752 to ensure that the dimensions and placement of the
1753 signs or symbols do not diminish the aesthetic value
1754 of the buildings on which they are placed and to adopt
1755 rules governing such signs or symbols; providing for
1756 enforcement; providing penalties; amending s. 718.111,
1757 F.S.; revising reporting requirements; amending s.
1758 718.112, F.S.; authorizing an association to adopt
1759 rules for posting certain notices on a website;
1760 revising provisions relating to required condominium
1761 and cooperative association bylaws; revising
1762 provisions relating to evidence of condominium and
1763 cooperative association compliance with the fire and
1764 life safety code; revising unit and common elements
1765 required to be retrofitted; revising provisions
1766 relating to an association vote to forego
1767 retrofitting; providing applicability; amending s.
1768 718.113, F.S.; revising voting requirements relating
1769 to alterations and additions to certain common
1770 elements or association property; amending s. 718.117,
1771 F.S.; providing legislative findings; revising voting
1772 requirements for the rejection of a plan of
1773 termination; increasing the amount of time to consider
1774 a plan of termination under certain conditions;
1775 revising applicability; revising the requirements to
1776 qualify for payment as a homestead owner if the owner
1777 has rejected a plan of termination; revising and
1778 providing notice requirements; requiring the
1779 Department of Business and Professional Regulation to
1780 review and approve a plan of termination; providing
1781 applicability; providing an appropriation and
1782 authorizing a position; amending s. 719.104, F.S.;
1783 revising recordkeeping and reporting requirements;
1784 amending s. 719.1055, F.S.; revising provisions
1785 relating to required condominium and cooperative
1786 association bylaws; revising provisions relating to
1787 evidence of condominium and cooperative association
1788 compliance with the fire and life safety code;
1789 revising unit and common elements required to be
1790 retrofitted; revising provisions relating to an
1791 association vote to forego retrofitting; providing
1792 applicability; amending s. 719.106, F.S.; revising
1793 requirements to serve as a board member; prohibiting a
1794 board member from voting via e-mail; requiring that
1795 directors who are delinquent in certain payments owed
1796 in excess of certain periods of time be deemed to have
1797 abandoned their offices; authorizing an association to
1798 adopt rules for posting certain notices on a website;
1799 amending s. 719.107, F.S.; specifying certain services
1800 which are obtained pursuant to a bulk contract to be
1801 deemed a common expense; amending s. 720.303, F.S.;
1802 prohibiting a board member from voting via e-mail;
1803 revising certain notice requirements relating to board
1804 meetings; revising and providing budget requirements;
1805 providing an exemption to certain requirements;
1806 revising financial reporting requirements; authorizing
1807 an association to adopt rules for posting certain
1808 notices on a website; amending s. 720.306, F.S.;
1809 revising election requirements; amending s. 720.3085,
1810 F.S.; providing applicability; amending s. 720.401,
1811 F.S.; revising the disclosure summary form; providing
1812 an effective date.